Freight Transport By Road South Africa

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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

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.
• The benefits of transporting essential services were offset by protocol compliance requirements, low volumes, movement restrictions and border post congestion.
• Global demand for South African commodities has increased exponentially and supply chain management and logistics are vital ingredients for economic recovery.
• 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.
• The industry performed strongly in 2022, with volumes transported increasing significantly.
• 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.
• 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.
• Growing trade, rapid advancements in technology and the rising role of ecommerce are expected to fuel the road freight transport market.
• There is demand for South African agricultural and mining products as well as motor vehicles.
• Retailers and logistics operators are pushing to improve their distribution models, reduce inefficiencies, and hold stock closer to consumers.
• Road freight transport faces major setbacks due to deteriorating road conditions, weather and traffic congestion, and increased long distance transportation and operating costs.

The Freight Transport by Road Industry in South Africa 2023

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Industry Landscape

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Historical Reports

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

R 1 900.00(ZAR) estimated $102.40 (USD)*

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

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

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

R 1 900.00(ZAR) estimated $102.40 (USD)*

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		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.South 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.”In 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”. The 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”.

The Freight Transport by Road Industry in South Africa 2021

Full Report

R 1 900.00(ZAR) estimated $102.40 (USD)*

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Industry Landscape

R 1 330.00(ZAR) estimated $ 71.68 (USD)*

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Historical Reports

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

R 6 500.00(ZAR) estimated $350.31 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.40 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.40 (USD)*

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

R 1 900.00(ZAR) estimated $102.40 (USD)*

View Report Add to Cart

[ 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

Introduction

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.” Mark 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.” Imperial 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”. Southern 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”.

The Freight Transport by Road Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $102.40 (USD)*

Buy Now +

Industry Landscape

R 1 330.00(ZAR) estimated $ 71.68 (USD)*

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Historical Reports

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

R 6 500.00(ZAR) estimated $350.31 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $102.40 (USD)*

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

R 1 900.00(ZAR) estimated $102.40 (USD)*

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

R 1 900.00(ZAR) estimated $102.40 (USD)*

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[ 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

Report Coverage

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.

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. 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.

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 2018

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

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		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.

The Freight Transport by Road Industry in South Africa 2016

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Industry Landscape

R 1 330.00(ZAR) estimated $ 71.68 (USD)*

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

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

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

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

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[ 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

freight transport road industry south africa

The Freight Transport by Road Industry in South Africa 2023

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The Freight Transport by Road Industry in South Africa 2019

The Freight Transport by Road Industry in South Africa 2018

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Report Info

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

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

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

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

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

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

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

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

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

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

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

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

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

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

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

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

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

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

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

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

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

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

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

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

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape