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freight transport road industry south africa

The Freight Transport by Road Industry in South Africa 2023

Michael Felton | South Africa | 10 January 2023

The Freight Transport by Road Industry in South Africa 2021

Liz Kneale | South Africa | 25 March 2021

The Freight Transport by Road Industry in South Africa 2019

Liz Kneale | South Africa | 21 June 2019

The Freight Transport by Road Industry in South Africa 2018

Liz Kneale | South Africa | 25 January 2018

The Freight Transport by Road Industry in South Africa 2016

Liz Kneale | South Africa | 13 January 2016

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Report Coverage

This report covers the transport of freight by road and excludes the operation of terminal facilities, crating and packing for transport purposes, and delivery departments of warehouses operated by businesses for their own use, as well as furniture removal and relocation. It includes comprehensive information on the state and size of the sector and factors that influence it, including the number of vehicles on the road, volumes, and the effect of the economy, trade and commodity movements and conditions in industries on which it relies. There are profiles of 30 companies including notable players Bidvest Freight, Imperial Logistics, Grindrod, Super Group, Value Logistics and Cargo Carriers as well as notable furniture removal companies such as Biddulphs and Elliott.

Introduction

• The impact of the pandemic on operations and revenue of the road freight and warehousing sector was positive and negative. \r\n
• The benefits of transporting essential services were offset by protocol compliance requirements, low volumes, movement restrictions and border post congestion. \r\n
• Global demand for South African commodities has increased exponentially and supply chain management and logistics are vital ingredients for economic recovery. \r\n
• The sector is facing disruptions such as border and port congestion, violent assaults on drivers and torching of trucks, in-transit and warehouse cargo theft, rapidly deteriorating road infrastructure and increasing operating costs caused by volatile and fluctuating fuel prices and foreign exchange rates. \r\n
• The industry performed strongly in 2022, with volumes transported increasing significantly. \r\n
• It continues to benefit from the ongoing underperformance of the rail industry.

Strengths

• 
•  Well supported by information technology and innovative technologies for logistics management.
• Collaborative and mutually-beneficial industry partnerships streamline the supply chain process.
• Flexible planning of routes or intermediate stops.
• Globally-competitive multinational companies providing total supply chain service.
• It benefits other modes of transport via water, air or rail, as they require additional road transport to get the goods from the port, airport or train station to the destination or departure site.
• No other means of transport has access to a comparable infrastructure, and the range and flexibility of road freight offers almost unlimited possibilities for getting goods from one place to another.
• Not dependent on logistical hubs such as ports, airports, or train stations.
• Road freight, despite increasing costs, is still more efficient than rail freight due to existing infrastructure and comparatively low-cost transportation equipment.
• Road vehicles can be used for intermodal transport, where, when loaded, they can travel on ships or be transported by rail on special wagons preventing time-consuming reloading.
• The road freight industry is flexible and able to deliver goods door-to-door, and there is hardly any destination that is not accessible by road.
• Vast majority of goods moved in South Africa are transported by road.

Weaknesses

• Critical shortage of skilled drivers.
• Disruption to any other part of the chain could affect the sector.
• Fragmented and erratic nature of road freight can be unstable and unpredictable, and cause fluctuation of rates.
• Heavy loads are difficult to manage and convey by road and the capacity of vehicles is limited.
• High capital investment and operating costs, which are also deterrents to new entrants.
• High carbon, pollutant and noise emissions from vehicles are high.
• High concentration of freight transportation by road causes traffic congestion and damage to roads.
• High exposure to delays caused by adverse weather conditions, natural disasters, labour action, protest action, traffic congestion, vehicle breakdown, roadworks and poor road conditions.
• Highly competitive industry with low profit margins.
• Legal specifications, such as excluding transportation on weekends or public holidays, affect time flexibility.
• Less structured mode of transport than other modes.
• Road freight industry is affected by global and local trade and economic conditions.
• The costs of maintaining and expanding the road network are considerable and road freight is charged a share of the operating costs through toll systems.
• The road network cannot be expanded to an unlimited extent, and roads are overburdened in metropolitan areas.

Opportunities

•  Demise of rail transport increasing market share for road freight operators.
•  Government investment in infrastructure projects should strengthen the logistics and road transport corridors and improve access to ports.
• If implemented, government economic stimulus projects will increase mining, manufacturing and agricultural outputs requiring transportation.
• Increase in ecommerce will increase demand for warehousing and logistics hubs.
• Infrastructure projects and regional agreements will increase trade in goods requiring transportation, harmonise customs regulations, reduce border post delays and improve road infrastructure.
• Minimal impact of the pandemic on the agricultural sector provides opportunities to grow the market.
• Opportunities for owner-driver, franchise schemes or subcontracting and empowerment partnerships as B-BBEE partners with large companies.
• Platform-based business models offer opportunities to new entrants.

Threats

•  Increased number of freight vehicles on the roads significantly increase chances of accidents and delivery delays.
• Competition from road-to-rail programme.
• Impact of restrictive legislation.
• Increased automation could result in job losses.
• Increasing costs resulting from rising fuel costs, increased truck hijackings, carbon tax, toll fees and electricity constraints.
• New market players and competitors created by technological innovations that require no capital outlay in terms of warehousing and vehicles.
• Rapid deterioration of the road infrastructure and maintenance backlog will cause further vehicle damage and delivery delays.
• Volatile rand affects costs of fuel, imported vehicles, parts, IT systems.
• Vulnerability to global economy reduces demand for exports and payloads to ports.
• Weak economic growth, leading to lower mining and manufacturing production, reduces demand for transportation by road.

Outlook

• Major shifts in transport patterns due to the pandemic have had a key impact on road freight transport, and the way industry players have had to re-organise their businesses supported by logistics, to keep growing profits.\r\n
• Regulations were reviewed, and a revised White Paper on National Transport Policy incorporates changes and aligns the sector to international, regional, and continental transportation trends. \r\n
• Growing trade, rapid advancements in technology and the rising role of ecommerce are expected to fuel the road freight transport market. \r\n
• There is demand for South African agricultural and mining products as well as motor vehicles. \r\n
• Retailers and logistics operators are pushing to improve their distribution models, reduce inefficiencies, and hold stock closer to consumers. \r\n
• Road freight transport faces major setbacks due to deteriorating road conditions, weather and traffic congestion, and increased long distance transportation and operating costs.

Read More..
The Freight Transport by Road Industry in South Africa
The Freight Transport by Road Industry in South Africa 2023

Full Report

R 9 500.00(ZAR) estimated $529.23 (USD)*

Industry Landscape

R 6 650.00(ZAR) estimated $ 370.46 (USD)*

Historical Reports

The Freight Transport by Road Industry in South Africa 2021-03-25

R 1 900.00(ZAR) estimated $105.85 (USD)*

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The Freight Transport by Road Industry in South Africa 2019-06-21

R 1 900.00(ZAR) estimated $105.85 (USD)*

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The Freight Transport by Road Industry in South Africa 2018-01-25

R 1 900.00(ZAR) estimated $105.85 (USD)*

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The Freight Transport by Road Industry in South Africa 2016-01-13

R 1 900.00(ZAR) estimated $105.85 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 4
2.2. Geographic Position 6
2.3. Size of the Industry 7
3. LOCAL 11
3.1. State of the Industry 11
3.2. Key Trends 14
3.3. Key Issues 17
3.4. Notable Players 18
3.5. Corporate Actions 20
3.6. Regulations 22
3.7. Enterprise Development and Social Development 27
4. AFRICA 30
4.1. State of the Industry 30
5. INTERNATIONAL 34
5.1. Key Trends 37
5.2. Key Issues 39
6. INFLUENCING FACTORS 42
6.1. Unforeseen Events 42
6.2. Economic Environment 43
6.3. Safety and Security 44
6.4. Labour 46
6.5. Environmental Issues 47
6.6. Road conditions and infrastructure 49
6.7. Electricity supply restrictions and loadshedding 49
6.8. Technology, R&D, Innovation 49
6.9. Government Support 51
6.10. Cyclicality 54
6.11. Fuel prices 54
6.12. Input Costs 55
7. COMPETITIVE ENVIRONMENT 57
7.1. Competition 57
7.2. Ownership Structure of the Industry 58
7.3. Barriers to Entry 58
8. SWOT ANALYSIS 59
9. OUTLOOK 61
10. INDUSTRY ASSOCIATIONS 62
11. REFERENCES 63
11.1. Publications 63
11.2. Websites 65
Appendix 1 67
Summary of Notable Players 67
COMPANY PROFILES 71
APM Terminals Trucking South Africa (Pty) Ltd 71
Aspen Logistic Services (Pty) Ltd 73
Biddulphs Removals and Storage S A (Pty) Ltd 75
Bidvest Freight (Pty) Ltd 78
Cargo Carriers (Pty) Ltd 81
Concargo (Pty) Ltd 85
Crossroads Distribution (Pty) Ltd 87
Digistics (Pty) Ltd 90
DPD Laser Express Logistics (Pty) Ltd 92
DSV South Africa (Pty) Ltd 95
Elliott Mobility (Pty) Ltd 99
Ezethu Logistics (Pty) Ltd 102
Gan-Trans (Pty) Ltd 104
Grindrod (South Africa) (Pty) Ltd 106
Imperial Logistics Ltd 109
Laser Group (Pty) Ltd (The) 117
Laser Transport Group (Pty) Ltd (The) 119
Maersk Logistics and Services South Africa (Pty) Ltd 121
Namibia Logistics (Pty) Ltd 123
Ni-Da Transport (Pty) Ltd 125
OneLogix Group Ltd 127
Rhenus Logistics (Pty) Ltd 131
RTT Group (Pty) Ltd 133
Sequence Logistics (Pty) Ltd 137
Super Group Ltd 139
Triton Express (Pty) Ltd 143
Unitrans Supply Chain Solutions (Pty) Ltd 146
Value Logistics (Pty) Ltd 149
Vincemus Investments (Pty) Ltd 154
Vital Distribution Solutions (Pty) Ltd 158

Report Coverage

This report focuses on the transport of freight by road, with comprehensive information on the state and size of the sector, including volumes transported, number of heavy vehicles, corporate actions and developments including financial and operating results. There are profiles of 31 companies including major industry players such as Imperial Logistics, Super Group and Barloworld Logistics, foreign-owned companies such as Maersk and removals and storage businesses such as Biddulphs.

Introduction

This report covers the transport of freight by road, including furniture removals, and excludes the operation of terminal facilities, crating and packing for transport purposes, and delivery departments of warehouses operated by businesses for their own use.\r\n\r\nSouth Africa’s GDP declined by 7% in 2020 with a growth forecast of between 3% and 3.6% for 2021. The economy was hit very hard by the coronavirus pandemic. The impact of the pandemic on the operations and revenue of the road freight and warehousing sector is positive and negative. The benefits of providing warehousing and transportation in the essential services value chains such as healthcare and consumer goods are offset by the negative impact of protocol compliance requirements, lower volumes requiring transportation, movement restrictions and border post congestion. The Southern Africa Professional Body for Supply Chain Management says that supply chain management and logistics, including warehousing and road transport, are the vital ingredients needed for the successful rollout of the vaccination programme. The sector is facing additional disruptions such as border and port congestion costing up to R5,000 per truck per day, violent assaults on drivers and torching of trucks, and in-transit and warehouse cargo theft. The Stats SA Land Transport Survey reflects that the volume of outsourced freight transported by road decreased by 11.7% year-on-year in 2020 and that corresponding income decreased by 10.5% over the same period. The International Road Federation estimates that global road freight transport turnover declined by 18% (€551bn) year-on-year in 2020.

Strengths

• 78%-87% of goods moved in South Africa are transported by road.
• Collaborative and mutually-beneficial industry partnerships streamline the supply chain process.
• Globally competitive multinational companies offering total supply chain service.
• Road freight, despite increasing costs, is still more efficient than rail freight.
• The road freight industry is flexible and able to deliver goods door-to-door.
• Well supported by information technology and innovative technologies for all aspects of logistics management.

Weaknesses

• As road transport forms part of the supply chain, disruption to any other part of the chain could affect the sector.
• Critical shortage of skilled professional drivers.
• High capital investment and operating costs, which are also deterrents to new entrants.
• High carbon emissions from vehicles.
• High concentration of freight transportation by road causes traffic congestion and damage to roads.
• High exposure to delays caused by adverse weather conditions, natural disasters, labour action, protest action, traffic congestion, vehicle breakdown, roadworks and poor road conditions.
• Highly competitive industry with low profit margins.
• Road freight industry is negatively affected by global and local trade and economic conditions.

Opportunities

• Government investment in infrastructure projects should strengthen the logistics and road transport corridors and improve access to ports.
• If implemented, government economic stimulus projects will increase mining, manufacturing and agricultural outputs requiring transportation.
• Increase in e-commerce will increase demand for warehousing.
• Infrastructure projects and agreements to facilitate inter-regional integration and co-operation between African countries will increase trade in goods requiring transportation, harmonise customs regulations, reduce border post delays and improve road infrastructure.
• Minimal impact of the pandemic on the agricultural sector provides opportunities to grow the market.
• Platform-based business models offer opportunities to new entrants.
• Warehousing and distribution of coronavirus vaccines.

Threats

• Competition from road-to-rail programme.
• Impact of coronavirus pandemic and associated restrictions on operations and revenue.
• Impact of restrictive legislation such as Aarto, Economic Regulation of Transport, promotion of road to rail, and government’s green transport strategy.
• Increased automation such as robotics and autonomous trucks could result in job losses.
• Increasing costs resulting from rising fuel costs, increased truck hijackings, carbon tax, toll fees and electricity constraints will increase the already high operational costs associated with the transportation of goods.
• Lack of improvement in road conditions and the road maintenance backlog will cause further vehicle damage and delivery delays.
• New market players and competitors created by technological innovations that require no capital outlay in terms of warehousing and vehicles.
• Poor global economy reduces demand for exports which reduces payloads to ports.
• Volatile rand affects costs of fuel, imported vehicles, parts, IT systems.
• Weak economic growth, leading to lower mining and manufacturing production, reduces demand for transportation by road.

Outlook

According to Mahommed Akoojee, Imperial Logistics Group CEO, “Covid-19 has notably changed purchasing trends, consumer behaviour and outsourcing opportunities. The pandemic has identified weaknesses across the value chain and has increased the demand for warehousing services due to growth in e-commerce, the increased need for visibility and resilience, and shortening and diversification of supply chains. With customer needs for enhanced convenience growing at exponential rates, greater pressure has been placed on logistics companies to keep pace.”\r\n\r\nIn November 2020, Super Group CEO Peter Mountford, stated that “the extraordinary pressures on the South African economy, brought on by the devastating impact of the Covid-19 pandemic across all industries, the restart of load shedding and high unemployment rates make for a bleak outlook. The group expects trading conditions across its businesses to remain challenging. The 2021 financial year remains uncertain given the extent of lockdown measures in an already fragile economy and any recovery from the lockdown together with cost rationalisation, will improve profitability”. \r\n\r\nThe road freight industry and its customers will be hit hard by the increase in fuel taxes and toll fees. The cost escalation will have to be absorbed by the transport sector as customers will not be able to afford price increases. Reduced economic activity and reduced consumer spending will reduce logistics demand. According to Road Freight Association CEO Gavin Kelly “this will affect freight volumes and will drive many transporters who are close to the sustainability margin over the edge. Freight operators are going to need to be inventive, cost-centre aware, and develop innovative multi-customer and multi-load offerings to stay competitive. It’s a very tight budgetary outlook for the road freight and logistics sector in the next few years with margins being cut even further”.

Read More..
The Freight Transport by Road Industry in South Africa
The Freight Transport by Road Industry in South Africa 2021

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

The Freight Transport by Road Industry in South Africa 2023-01-10

R 9 500.00(ZAR) estimated $529.23 (USD)*

View Report Add to Cart

The Freight Transport by Road Industry in South Africa 2019-06-21

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Freight Transport by Road Industry in South Africa 2018-01-25

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Freight Transport by Road Industry in South Africa 2016-01-13

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 13
4.1.2. Regulations 16
4.1.3. Enterprise Development and Social Economic Development 20
4.2. Continental 22
4.3. International 28
5. INFLUENCING FACTORS 30
5.1. Coronavirus 30
5.2. Supply Chain Disruptions 32
5.3. Economic Environment 33
5.4. Rising Operating Costs 35
5.5. Labour 37
5.6. Road Conditions and Infrastructure 39
5.7. Government Initiatives 40
5.8. Private Sector Developments 41
5.9. Technology, Research and Development (R&D) and Innovation 42
5.10. Crime 45
5.11. Environmental Issues 46
5.12. Electricity Supply Constraints 47
5.13. Cyclicality 48
6. COMPETITION 49
6.1. Barriers to Entry 50
7. SWOT ANALYSIS 51
8. OUTLOOK 52
9. INDUSTRY ASSOCIATIONS 53
10. REFERENCES 55
10.1. Publications 55
10.2. Websites 56
APPENDIX 1 58
Summary of Notable players 58
COMPANY PROFILES 61
APM TERMINALS TRUCKING SOUTH AFRICA (PTY) LTD 61
ASPEN LOGISTIC SERVICES (PTY) LTD 63
BARLOWORLD LOGISTICS AFRICA (PTY) LTD 65
BIDDULPHS REMOVALS AND STORAGE S A (PTY) LTD 68
BIDVEST FREIGHT (PTY) LTD 71
CARGO CARRIERS (PTY) LTD 74
CONCARGO (PTY) LTD 78
CROSSROADS DISTRIBUTION (PTY) LTD 80
DIGISTICS (PTY) LTD 83
DPD LASER EXPRESS LOGISTICS (PTY) LTD 85
DSV SOUTH AFRICA (PTY) LTD 88
ELLIOTT MOBILITY (PTY) LTD 92
EZETHU LOGISTICS (PTY) LTD 95
GAN-TRANS (PTY) LTD 97
GRINDROD (SOUTH AFRICA) (PTY) LTD 99
IMPERIAL LOGISTICS LTD 102
LASER GROUP (PTY) LTD (THE) 110
LASER TRANSPORT GROUP (PTY) LTD (THE) 112
MAERSK LOGISTICS AND SERVICES SOUTH AFRICA (PTY) LTD 114
NAMIBIA LOGISTICS (PTY) LTD 116
NI-DA TRANSPORT (PTY) LTD 118
ONELOGIX GROUP LTD 119
RHENUS LOGISTICS (PTY) LTD 122
RTT GROUP (PTY) LTD 124
SEQUENCE LOGISTICS (PTY) LTD 127
SUPER GROUP LTD 129
TRITON EXPRESS (PTY) LTD 133
UNITRANS SUPPLY CHAIN SOLUTIONS (PTY) LTD 136
VALUE LOGISTICS LTD 139
VINCEMUS INVESTMENTS (PTY) LTD 143
VITAL DISTRIBUTION SOLUTIONS (PTY) LTD 148

Report Coverage

This report covers the transport of freight by road, including furniture removals, and excludes the operation of terminal facilities, crating and packing for transport purposes, and delivery departments of warehouses operated by business concerns for their own use. The report includes information on the size and state of the industry and factors that influence it such as road conditions and infrastructure, driver behaviour, government and private sector initiatives, innovation, environmental issues and crime. There are comprehensive profiles of 31 companies including major players such as Barloworld Logistics Africa, Bidvest Freight and Imperial Logistics, as well as various companies involved in merger and acquisition activity such as Super Group, which bought Cargo Works and OneLogix, which bought Siyaduma Auto Ferriers.

Introduction

This report covers the transport of freight by road, including furniture removals, and excludes the operation of terminal facilities, crating and packing for transport purposes, and delivery departments of warehouses operated by business concerns for their own use. \r\n\r\nGlobally and locally, the road freight sector, which is an important element in the supply chain process, is influenced by weak economic growth and uncertain trading conditions. South Africa’s major public logistics companies are finding the weak economic climate to be a major challenge, with a slowdown in manufacturing and mining production and consumer spending resulting in reduced volumes. The Statistics SA (Stats SA) Land Transport Survey reflects that the seasonally adjusted volume of freight transported by road increased by 9.5% in 2018, but decreased by 4.3% in the first quarter of 2019.

Strengths

• 88%-90% of goods moved in South Africa are transported by road.
• Collaborative and mutually beneficial industry partnerships streamline the supply chain process.
• Road freight, despite increasing costs, is still more efficient than rail freight.
• The road freight industry is flexible and able to deliver goods door-to-door.
• Well supported by information technology and innovative technologies for all aspects of logistics management.

Weaknesses

• As road transport forms part of the supply chain, disruption to any other part of the chain could impact on this sector.
• Critical shortage of skilled professional drivers.
• High accident rate caused by human error, unroadworthy vehicles, traffic violations and overloading.
• High carbon emissions from vehicles.
• High concentration of freight transportation by road causes traffic congestion and damage to roads.
• High exposure to delays caused by adverse weather conditions, natural disasters, labour action, protest action, traffic congestion, vehicle breakdown, roadworks and poor road conditions.
• Highly competitive industry with low margins of between 5% - 6%.
• Poor co-ordination of and collaboration between road, rail, air and sea transport modes leads to inefficiencies in the supply chain process.
• Reluctance to implement innovative technologies that could increase efficiency, and shortage of skills required to optimise these technologies.
• Road freight industry is negatively affected by global and local trade and economic conditions.

Opportunities

• Government investment in infrastructure projects should strengthen the logistics and road transport corridors and improve access to ports.
• If implemented, government economic development projects will increase mining, manufacturing and agricultural outputs requiring transportation.
• Infrastructure projects and agreements to facilitate inter-regional integration and co-operation between African countries will increase trade in goods requiring transportation, harmonise customs regulations, reduce border post delays and improve road infrastructure.
• Platform-based business models offer opportunities to new entrants.

Threats

• Competition from road-to rail programme.
• Impact of proposed restrictive legislation and government’s green transport strategy.
• Increased automation could result in job losses, such as robotics and driverless trucks, and reduced demand, such as 3D printing.
• Increasing costs resulting from rising fuel costs, increased truck hijackings, proposed carbon tax, user-pays principle for road infrastructure and electricity constraints will increase the already high operational costs associated with the transportation of goods.
• Lack of improvement in road conditions and the road maintenance backlog will cause further vehicle damage and delivery delays.
• New market players and competitors created by technological innovations that require no capital outlay in terms of warehousing and vehicles.
• Poor global economy reduces demand for exports which reduces payloads to ports.
• Poor local growth results in lower mining and manufacturing production thereby reducing demand for transportation.
• Weak rand increases costs of fuel, imported vehicles, parts, IT systems.

Outlook

According to the DHL 2018/19 Logistics Trend Radar report, “people will continue to remain at the heart of logistics, even though the trend of robotics and automation as well as software automation, will redefine the structure of the logistics workforce in the future. Highly repetitive, physically intensive tasks will be aided by technology, enabling people to do more meaningful tasks that require management, analysis and innovation. Digital work concepts will be required to attract and retain millennial talent in logistics as well as to support the existing, aging logistics workforce.”\r\n \r\nMark Geoghegan, general manager solutions development and advisory, at Barloworld Logistics, believes that the idea of an economy built from autonomous industries attending to their own clients with their own suppliers is fast becoming outdated. More organisations are beginning to understand that “operating in isolation is no longer viable, and that by partnering across, or indeed within industries, higher efficiencies, cost reductions and improved customer service can be achieved. Supply chain partners play a vital role in identifying areas of shared value throughout the value chain, allowing for innovative partnerships across companies and industries leading to collaboration in the overall supply network. The supply chain is arguably the starting point for collaboration offering shared networks, shared facilities and shared access to technology and expertise, to name but a few.” \r\n \r\nImperial Logistics states that the South African road freight sector faces “margin pressures from customers and principals, high unemployment, low economic growth, tax rate increases, static household income and load-shedding, which continued to weigh on demand, trading conditions and sentiment”.\r\n \r\nSouthern African Supply Chain and Operations Management Association president Keabetswe Mpane explains that “the image of the supply chain management profession has been marred by corruption, and skills development and the professionalisation of supply chain management has never been more critical than it is today, in our increasingly global, challenging, complex and dynamic business environment. As supply chain management is at the heart of every organisation and the country as a whole, efficiency and competency will be the catalyst for South Africa’s transformation and growth”.

Read More..
The Freight Transport by Road Industry in South Africa
The Freight Transport by Road Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

The Freight Transport by Road Industry in South Africa 2023-01-10

R 9 500.00(ZAR) estimated $529.23 (USD)*

View Report Add to Cart

The Freight Transport by Road Industry in South Africa 2021-03-25

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Freight Transport by Road Industry in South Africa 2018-01-25

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Freight Transport by Road Industry in South Africa 2016-01-13

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 11
4.1.2. Regulations 13
4.1.3. Enterprise Development and Social Economic Development 20
4.2. Continental 22
4.3. International 28
5. INFLUENCING FACTORS 30
5.1. Road Freight Strategy 30
5.2. Economic Environment 31
5.3. Rising Operating Costs 34
5.4. Labour 37
5.5. Road Conditions and Infrastructure 42
5.6. Government Initiatives 43
5.7. Private Sector Initiatives 45
5.8. Technology, Research and Development (R&D) and Innovation 45
5.9. Crime 50
5.10. Supply Chain Disruptions 51
5.11. Environmental Issues 53
5.12. Electricity Supply Constraints 55
5.13. Cyclicality 56
6. COMPETITION 57
6.1. Barriers to Entry 59
7. SWOT ANALYSIS 60
8. OUTLOOK 61
9. INDUSTRY ASSOCIATIONS 63
10. REFERENCES 64
10.1. Publications 64
10.2. Websites 66
APPENDIX 1 68
Summary of Notable Players 68
COMPANY PROFILES 72
APM TERMINALS TRUCKING SOUTH AFRICA (PTY) LTD 72
ASPEN LOGISTIC SERVICES (PTY) LTD 74
BARLOWORLD LOGISTICS AFRICA (PTY) LTD 76
BIDDULPHS REMOVALS AND STORAGE SA (PTY) LTD 79
BIDVEST FREIGHT (PTY) LTD 82
CARGO CARRIERS (PTY) LTD 85
CONCARGO (PTY) LTD 89
CROSSROADS DISTRIBUTION (PTY) LTD 91
DAMCO LOGISTICS (PTY) LTD 95
DIGISTICS (PTY) LTD 97
DPD LASER EXPRESS LOGISTICS (PTY) LTD 99
DSV SOUTH AFRICA (PTY) LTD 102
ELLIOTT MOBILITY (PTY) LTD 105
EZETHU LOGISTICS (PTY) LTD 108
GAN-TRANS (PTY) LTD 110
GRINDROD (SOUTH AFRICA) (PTY) LTD 112
IDL FRESH SOUTH AFRICA (PTY) LTD 115
IMPERIAL LOGISTICS LTD 117
LASER GROUP (PTY) LTD (THE) 126
LASER TRANSPORT GROUP (PTY) LTD (THE) 128
NAMIBIA LOGISTICS (PTY) LTD 130
NI-DA TRANSPORT (PTY) LTD 132
ONELOGIX GROUP LTD 133
RTT GROUP (PTY) LTD 136
SUPER GROUP LTD 139
TRANSNET SOC LTD 143
TRITON EXPRESS (PTY) LTD 147
UNITRANS SUPPLY CHAIN SOLUTIONS (PTY) LTD 150
VALUE LOGISTICS LTD 152
VINCEMUS INVESTMENTS (PTY) LTD 156
VITAL DISTRIBUTION SOLUTIONS (PTY) LTD 161

Introduction

In spite of the slowing economic situation, economist Mike Schussler’s South African Logistics Index forecast a 7.7% revenue increase for road freight operators and a 5.6% rise in tonnage during 2017. Statistics South Africa’s estimate of a total outsourced road freight payload of 566 million tons and an income of R90.88bn for January to October 2017 can be doubled, as there is a 50/50 split between outsourced and insourced freight transported by road. The road freight sector, as an important partner in the supply chain process, is not only facing reduced demand due to low economic growth, ratings downgrades and the road-to-rail migration initiative, but the double-edged sword of digitisation that is disrupting the entire logistics industry. \r\n\r\nThis report covers the transport of freight by road, including furniture removals, and excludes the operation of terminal facilities, crating and packing for transport purposes, and delivery departments of warehouses operated by business concerns for their own use.

Strengths

• Between 88% and 90% of goods moved in South Africa are transported by road.
• Collaborative and mutually beneficial industry partnerships streamline the supply chain process.
• Road freight, despite increasing costs, is still more efficient than rail freight.
• The road freight industry is flexible and able to deliver goods door-to-door.
• Well supported by information technology and innovative technologies for all aspects of logistics management.

Weaknesses

• As road transport forms part of the supply chain, disruption to any other part of the chain could impact on this sector.
• Critical shortage of skilled professional drivers.
• High accident rate caused by human error, unroadworthy vehicles, traffic violations and overloading.
• High carbon emissions from vehicles.
• High concentration of freight transportation by road causes traffic congestion and damage to roads.
• Highly competitive industry with low margins of between 3% and 4%.
• Poor co-ordination of and collaboration between road, rail, air and sea transport modes leads to inefficiencies in the supply chain process.
• Reluctance to implement innovative technologies that could increase efficiency, and shortage of skills required to optimise these technologies.
• Road freight industry is negatively affected by global and local economic conditions.

Opportunities

• Government investment in infrastructure projects should strengthen the logistics and road transport corridors and improve access to ports.
• If implemented, government economic development projects will increase mining, manufacturing and agricultural outputs requiring transportation.
• Infrastructure projects and agreements to facilitate inter-regional integration and co-operation between African countries will increase trade in goods requiring transportation, harmonise customs regulations, reduce border post delays and improve road infrastructure.
• Platform-based business models offer opportunities to new entrants.

Threats

• Competition from Road-to Rail programme.
• Impact of proposed legislation including speed limit reductions and height restrictions for cube containers.
• Increased automation such as robotics and driverless trucks could result in job losses and reduced demand.
• Increasing costs resulting from rising fuel costs, increased truck hijackings, proposed carbon tax, user-pays principle for road infrastructure and electricity constraints.
• Lack of improvement in road conditions and the road maintenance backlog will cause further vehicle damage and delivery delays.
• New market players and competitors created by technological innovations that require no capital outlay in terms of warehousing and vehicles.
• Poor global economy reduces demand for exports which reduces payloads to ports.
• Poor local growth results in lower production thereby reducing demand for transportation.

Outlook

The Department of Transport forecasts that that the demand for freight transport in South Africa will increase by between 200% and 250% over the next 15 to 20 years, with some corridors, such as those between Gauteng and Cape Town, which currently account for 50% of all corridor transport, growing even faster. The adoption and incorporation of innovative and revolutionary technologies may improve efficiency, customer interaction and reduce environmental impact, but will also disrupt the traditional cost and operating models of warehousing, transportation and distribution and create new markets and market players. Traditional operators will have to adapt to this new collaborative rather than competitive environment in order to compete and survive. PricewaterhouseCoopers’ report on Shifting Patterns: The Future of the Logistics Industry describes how logistics companies are facing an era of unprecedented change as digitisation takes hold and customer expectations evolve. It states, “An established network may become a hindrance rather than an advantage. New entrants, whether they be start-ups or the industry’s own customers and suppliers, are re-shaping the marketplace in ways that are only just beginning to become apparent.”

The Freight Transport by Road Industry in South Africa
The Freight Transport by Road Industry in South Africa 2018

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

The Freight Transport by Road Industry in South Africa 2023-01-10

R 9 500.00(ZAR) estimated $529.23 (USD)*

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The Freight Transport by Road Industry in South Africa 2021-03-25

R 1 900.00(ZAR) estimated $105.85 (USD)*

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The Freight Transport by Road Industry in South Africa 2019-06-21

R 1 900.00(ZAR) estimated $105.85 (USD)*

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The Freight Transport by Road Industry in South Africa 2016-01-13

R 1 900.00(ZAR) estimated $105.85 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Corporate Actions 12
4.1.2. Regulations 16
4.1.3. Enterprise Development and Social Economic Development 20
4.2. Continental 22
4.3. International 26
5. INFLUENCING FACTORS 28
5.1. Implications of the Road Freight Strategy 28
5.2. Economic Environment 29
5.3. Rising Operating Costs 32
5.4. Labour 34
5.5. Road Conditions and Infrastructure 37
5.6. Government Initiatives 39
5.7. Technology, Research and Development (R&D) and Innovation 40
5.8. Movement from Road to Rail 42
5.9. Environmental Issues 43
5.10. Cyclicality 44
5.11. Crime and Risk Management 45
6. COMPETITION 46
6.1. Barriers to Entry 48
7. SWOT ANALYSIS 49
8. OUTLOOK 50
9. INDUSTRY ASSOCIATIONS 51
10. REFERENCES 52
10.1. Publications 52
10.2. Websites 54
COMPANY PROFILES 56
APM TERMINALS TRUCKING SOUTH AFRICA (PTY) LTD 56
ASPEN LOGISTIC SERVICES (PTY) LTD 58
BARLOWORLD LOGISTICS AFRICA (PTY) LTD 60
BIDDULPHS REMOVALS AND STORAGE SA (PTY) LTD 63
BIDVEST FREIGHT (PTY) LTD 66
CARGO CARRIERS LTD 69
CONCARGO (PTY) LTD 75
CROSSROADS DISTRIBUTION (PTY) LTD 77
DAMCO LOGISTICS (PTY) LTD 80
DIGISTICS (PTY) LTD 82
DPD LASER EXPRESS LOGISTICS (PTY) LTD 84
DSV SOUTH AFRICA (PTY) LTD 87
ELLIOTT MOBILITY (PTY) LTD 90
EZETHU LOGISTICS (PTY) LTD 93
GAN-TRANS (PTY) LTD 95
GRINDROD (SOUTH AFRICA) (PTY) LTD 97
IDL FRESH SOUTH AFRICA (PTY) LTD 100
IMPERIAL HOLDINGS LTD 102
LASER GROUP (PTY) LTD (THE) 112
LASER TRANSPORT GROUP (PTY) LTD (THE) 114
NAMIBIA LOGISTICS (PTY) LTD 116
NI-DA TRANSPORT (PTY) LTD 118
ONELOGIX GROUP LTD 119
RTT GROUP (PTY) LTD 122
SUPER GROUP LTD 125
TRANSNET SOC LTD 129
TRITON EXPRESS (PTY) LTD 133
UNITRANS SUPPLY CHAIN SOLUTIONS (PTY) LTD 136
VALUE LOGISTICS LTD 139
VINCEMUS INVESTMENTS (PTY) LTD 143
VITAL DISTRIBUTION SOLUTIONS (PTY) LTD 147

Report Coverage

The Freight Transport by Road report discusses current conditions, details the extensive M&A activity that has occurred in response to conditions and trends, and describes factors influencing the success of the industry. The report profiles 55 companies including large players such as Barloworld Ltd, Grindrod Ltd and Bidvest Freight (Pty Ltd as well as small companies such as Ethos Road and Transport Services CC which has 16 employees and transports aggregates used in road construction projects. Also profiled are companies active in the local furniture removals industry which is dominated by two players, The Laser Transport Group, which includes Stuttaford Van Lines, Pickfords Removals, AGS Frasers International Movers and Magna-Thomson International Movers, and Elliott Mobility (Pty) Ltd.

Introduction

This report covers the transport of freight by road where the total income for the sector in 2014 was in excess of R125bn, indicating that South Africa’s road transport contributes at least 3.7% to GDP. Statistics SA’s estimate of a total outsourced contract road freight payload of 574,560,000 tons for 2014 can be doubled as there is a 50/50 split between outsourced and in-sourced road freight transportation. It is a highly competitive sector, with a tight profit margin of 4%, and in order to improve efficiency and increase profits, industry players are optimising innovation and smart partnerships to develop more collaborative operations using multi-modal and intermodal transport options. As the road freight sector and the economy enjoy an interdependent and symbiotic relationship, the challenges facing the global and local economy have a knock-on effect on the volumes of goods requiring transportation by road.

Strengths

• 88% of goods moved in South Africa are transported by road.
• Road freight, despite increasing costs, is still more efficient than rail freight.
• The road freight industry is flexible and able to deliver goods door-to-door.
• Well supported by information technology for all aspects of logistics management

Weaknesses

• Critical shortage of skilled professional drivers.
• High accident rate caused by human error, unroadworthy vehicles, traffic violations and overloading.
• High carbon emissions from vehicles.
• Poor co-ordination of and collaboration between road, rail, air and sea transport modes leads to inefficiencies in the supply chain process.
• Road freight industry is negatively affected by global and local economic conditions.

Opportunities

• Government investment in infrastructure projects should strengthen the logistics and road transport corridors and improve access to ports.
• If implemented, government economic development projects will increase mining, manufacturing and agricultural outputs requiring transportation.
• Infrastructure projects and agreements to facilitate inter-regional integration and co-operation between African countries will increase trade in goods requiring transportation, harmonise customs regulations, reduce border post delays and improve road infrastructure.
• Trend towards intermodal transport offers opportunities for collaboration with rail sector.

Threats

• Competition from Road-to Rail programme.
• Further deterioration in the global and local economies.
• Further weakening of the rand which will lead to an increase in the cost of fuel, imported vehicles, parts and IT systems.
• Impact of proposed restrictive legislation.
• Increase in the already high operational costs associated with the transportation of goods.

Outlook

As growth in the road freight sector is determined by local and global economic growth and estimates for domestic economic growth have been revised downwards to 0.7% for 2016, road freight volumes are not expected to grow significantly. Mark J Lamberti, Chief Executive Officer of Imperial Holdings Ltd, commented, “The factors contributing to heightened uncertainty and volatility in economies, markets and industries globally are well-publicised, as are the additional consequences of unemployment, low growth and confidence, increasing socio-political tensions, and electricity supply failures facing South African business. None of these are expected to change markedly in the short to medium-term”. On a positive note, however, the International Transport Forum estimates that international freight transport volumes will quadruple by 2050. Paul Vorster believes that the road freight industry should embrace technology and become part of a future integrated and intermodal freight system. This is in line with the Minister of Transport who has highlighted the need for an integrated multi-modal transport system throughout the southern African region.

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The Freight Transport by Road Industry in South Africa
The Freight Transport by Road Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $105.85 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 74.09 (USD)*

Historical Reports

The Freight Transport by Road Industry in South Africa 2023-01-10

R 9 500.00(ZAR) estimated $529.23 (USD)*

View Report Add to Cart

The Freight Transport by Road Industry in South Africa 2021-03-25

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Freight Transport by Road Industry in South Africa 2019-06-21

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

The Freight Transport by Road Industry in South Africa 2018-01-25

R 1 900.00(ZAR) estimated $105.85 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 3
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 13
4.1.2. Regulations 16
4.1.3. Enterprise Development and Social Economic Development 19
4.2. Continental 22
4.3. International 26
5. INFLUENCING FACTORS 28
5.1. Implications of Amendments to the National Road Traffic Act Regulations 28
5.2. Road Conditions and Infrastructure 29
5.3. Movement from Road to Rail 29
5.4. Economic Environment 31
5.5. Government Initiatives 33
5.6. Private Sector Initiatives 34
5.7. Rising Operating Costs 35
5.8. Information Technology 36
5.9. Technology, Research and Development (R&D) and Innovation 37
5.10. Labour 38
5.11. Cyclicality 42
5.12. Environmental Concerns 42
5.13. Crime and Security 43
5.14. Electricity Supply Constraints 44
6. COMPETITION 45
6.1. Barriers to Entry 47
7. SWOT ANALYSIS 48
8. OUTLOOK 49
9. INDUSTRY ASSOCIATIONS 49
10. REFERENCES 51
10.1. Publications 51
10.2. Websites 53
APPENDIX 1 55
Current and Future Road-Related Projects on the African Continent 55
COMPANY PROFILES 59
ACCESS FREIGHT LOGISTICS (PTY) LTD 59
ASPEN LOGISTIC SERVICES (PTY) LTD 61
Barloworld Logistics Africa (Pty) Ltd 63
BIDDULPHS REMOVALS AND STORAGE SA (PTY) LTD 66
BIDVEST FREIGHT (PTY) LTD 68
CARGO CARRIERS LTD 71
CROSSROADS DISTRIBUTION (PTY) LTD 75
DAMCO LOGISTICS (PTY) LTD 78
DIGISTICS (PTY) LTD 81
DPD LASER EXPRESS LOGISTICS (PTY) LTD 83
ELLIOTT MOBILITY (PTY) LTD 86
EZETHU LOGISTICS (PTY) LTD 88
GAC LASER INTERNATIONAL LOGISTICS (PTY) LTD 90
GAN-TRANS (PTY) LTD 93
GRINDROD (SOUTH AFRICA) (PTY) LTD 94
IMPERIAL GROUP LTD 97
LASER GROUP (PTY) LTD (THE) 101
LASER LOGISTICS (PTY) LTD 103
LASER TRANSPORT GROUP (PTY) LTD (THE) 105
NAMIBIA LOGISTICS (PTY) LTD 107
ONELOGIX GROUP LTD 109
ROADWING (PTY) LTD 112
RTT GROUP (PTY) LTD 114
SUPER GROUP LTD 116
TRANSNET SOC LTD 119
UNITED BULK (PTY) LTD 123
UNITRANS SUPPLY CHAIN SOLUTIONS (PTY) LTD 125
UTI SOUTH AFRICA (PTY) LTD 130
VALUE LOGISTICS LTD 134
VINCEMUS INVESTMENTS (PTY) LTD 138
VITAL DISTRIBUTION SOLUTIONS (PTY) LTD 143