The detailed Freight Transport by Road report discusses current conditions including the road-to-rail migration initiative and the double-edged sword of digitisation that is disrupting the entire logistics industry, and other factors influencing the success of the sector. Profiles for 31 role players are provided. These range from small players such as Free State-based Ezethu Logistics (Pty) Ltd, a subsidiary of Cargo Carriers, to Imperial Holdings Ltd which owns 7,288 trucks and employs 31,741 people in the logistics arm of the business. In September 2017 the company announced that depending on market conditions during the course of 2018, it might split the company into two separate JSE-listed entities, Imperial Logistics and Motus.
Road Freight Transport
According to the Road Freight Association, businesses in this industry range from large corporates to small family businesses and owner-driver operations. The sector is characterised by the consolidation of logistics and transport companies and is dominated by large companies that offer flexible and integrated end-to-end supply chain management and logistics solutions for a wide variety of commodities to a wide variety of customers. These companies use a network of fixed fleet, specialist operating companies, subsidiaries, accredited sub-contractors and joint venture partners.
The road freight industry, an essential part of the supply chain process, stimulates the economy by transporting goods to a final destination for sale or export. Statistics South Africa’s estimate of a total outsourced road freight payload of 566 million tons and an income of R90.88bn for the ten months from January to October 2017 can be doubled as approximately 50% or more of freight in the country is insourced and is therefore not included in this figure. Although revenue for road freight operators increased an estimated 7.7% and there was a 5.6% rise in tonnage during 2017, the sector faces reduced demand due to low economic growth, uncertainty in the business and political arenas and ratings downgrades.