South African Freight Logistics Update

South African Freight Logistics Update
Gauteng Department of Roads and Transport:
October Transport Month Freight Summit
Gerard de Villiers Pr Eng
Logistics Specialist
20 October 2014
Contents
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
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National Freight Logistics Strategy - 2005
SA Road Network
National Corridor Performance Measurement Study - 2011
Regional Corridors
Proposed Improvements to Border Posts
CSCMP Global Perspective on SA - 2011
The World Bank Logistics Performance Index - 2014
"Supplychainforesight" Survey - 2014
Annual State of Logistics Survey - 2013
Gauteng Freight Strategy Road Network
Transnet Freight Rail Marked Demand Strategy
Gauteng Terminals Development Strategy
National Development Plan - 2011/12
Conclusion
South African Freight Logistics Update
1. National Freight Logistics Strategy - 2005
1.1 Scorecard of efficiency and service reliability
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South African Freight Logistics Update
1. National Freight Logistics Strategy - 2005
1.2 Challenges facing freight transport



4
Service delivery constraints

Delivery capability of port and rail sector

Customer focus is poor
Infrastructure and capacity constraints within the transportation
network

Provincial roads (road maintenance, enforcement)

Improved rail and port infrastructure
Regulatory challenges and implications for the delivery of efficient
transport services

Role of public sector in rail, ports, pipeline, airports

Regulatory oversight over monopoly industries

Enhanced efficiency - parastatals and the role of the private sector
South African Freight Logistics Update
2. SA Road Network
2.1 Paved roads condition - Provincial and SANRAL
Source: RSA Road Condition - L Kannemeyer, 2009
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South African Freight Logistics Update
2. SA Road Network
2.2 South Africa's road network condition
Source: 10th Annual State of Logistics Survey for South Africa - 2013
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South African Freight Logistics Update
2. SA Road Network
2.3 Route Classification - Heavy Vehicles
Source: National Freight Logistics Strategy; CSIR working documents, 2005
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South African Freight Logistics Update
3. National Corridor Performance Measurement
Study - 2011
Total freight moved in 2009: 1 530mt
Modal split: 89% road
11% rail
Mapping South African
freight flows (in ton)
indicate concentrations
related to export mining
flows and inter-metropolitan
corridor flows (2009).
As expected, the export
lines are mostly in the North
East with a long single
corridor (like an umbilical
cord) linking Cape Town.
Source: DPE - National Corridor Performance Measurement Study - 2011
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South African Freight Logistics Update
4. Regional Corridors
Source: TradeMark Southern Africa
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South African Freight Logistics Update
5. Proposed Improvements to Border Posts
Beitbridge
Kopfontein
Lebombo
Skilpadhek
Oshoek
Short term
Maseru
• Harmonization of standards
• Inland clearance procedures
• Transport and logistics
regulation
Medium term
• Infrastructure operations
• Certification and liabilities
• Border procedures and
facilities
Long term
Source: Freight Movement Optimisation Plans; DoT; South Africa (2011)
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South African Freight Logistics Update
• Infrastructure investment
• Cabotage and reciprocity
• Trade and transit
agreements
Role player
• Public-Private
• Public-Private
• Public
Role player
• Public-Private
• Public-Private
• Public
Role player
• Public-Private
• Public-Private
• Public
6. CSCMP Global Perspective on SA - 2011
Total corridor freight movement (2007-2008)
Executive Summary
"The main logistics challenges
that South Africa faces at
present are high logistics
costs, the poor condition of the
secondary road network, and
the skills shortage in the
logistics sector. Industry and
government need to commit to
implement more sustainable
transportation options and
green logistics solutions. The
government is focusing its
attention on addressing the
freight problems on the main
corridors but a similar,
possibly even bigger problem
exists with freight
transportation to rural areas.
Finally, the rail service has
been, and remains, a major
concern in South Africa."
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South African Freight Logistics Update
7. The World Bank
Logistics Performance Index - 2014
Logistics Performance Indices (LPI) Rating
Total number of countries in LPI
2010
2012
2014
150
155
155
160
South Africa's overall ranking
24
28
23
34
1. Customs: Efficiency of the customs clearance process
28
31
26
42
2. Infrastructure: Quality of trade and transport-related infrastructure
26
29
19
38
3. International shipments: Ease of arranging competitively priced
shipments
22
31
20
25
4. Logistics competence: Competence and quality of logistics
services
25
25
24
24
5. Tracking and tracing: Ability to track and trace consignments
18
24
16
41
6. Timeliness: Frequency with which shipments reach the consignee
within the scheduled or expected time
31
57
20
33
Source: The World Bank - Logistics Performance Index 2007, 2010, 2012 and 2014
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2007
South African Freight Logistics Update
8. "Supplychainforesight" Survey - 2014
8.1 Supply chain and logistics objectives
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South African Freight Logistics Update
8. "Supplychainforesight" Survey - 2014
8.2 Supply chain and logistics constraints
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South African Freight Logistics Update
9. Annual State of Logistics Survey - 2013
9.1 Total national logistics costs
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South African Freight Logistics Update
9. Annual State of Logistics Survey - 2013
9.2 Modal split
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South African Freight Logistics Update
10. Transnet Freight Rail Market Demand Strategy
Source: "Back to Rail" Business breakfast - Siyabonga Gama, CEO - TFR; 19 April 2012
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South African Freight Logistics Update
11. Gauteng Terminals Development Strategy
Source: Transnet Gauteng Terminals Development Strategy Study - In Process
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South African Freight Logistics Update
12. Gauteng Freight Strategy Road Network
Legend
Future Transport Reserves
Rail Lines
Major Roads
Freight Rail
Planned Houtheuwel to Skansdam Link
Freight Bypass Road
Intensified Development Initiatives
Source: Gauteng 25-year Integrated Transport Master Plan, 12 August 2013
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South African Freight Logistics Update
13. National Development Plan 2011/12
13.1 Draft - Vision for 2030 (2011)
• By 2030, investments in the transport sector will ensure that it serves as a key driver in
empowering South Africa and its people, enabling:
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Improved access to economic opportunities, social spaces and services by bridging
geographical distances affordably, reliably and safely;
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Economic development, by supporting the movement of goods from points of production to
where they are consumed, facilitating regional and international trade; and
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Greater mobility of people and goods through transport alternatives that support minimised
environmental harm.
• The following investment should be prioritised:
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The development of the Durban-Gauteng freight corridor, including the development of a
new dug-out port on the site of the old Durban airport; and
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The construction of a new coal line to unlock coal deposits in the Waterberg, extension of
existing coal lines in the central basin and, through private partnership, the upgrading of the
iron ore line to Saldanha.
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South African Freight Logistics Update
13. National Development Plan 2011/12
13.2 Our future - make it work (2012)
• Chapter 3: Economy and employment - Key drivers of change
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Lowering the costs of transport and logistics and investing in remedies to address spatial
divides
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Industrial zone developments and trade promotion will rely on competitive logistics
• Chapter 7: Trade facilitation frameworks - Positioning South Africa in the world
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Creating adequate warehousing and logistics facilities
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Instituting efficient procedures and customs and border posts
• Chapter 8: Transforming human settlement and the national space economy
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The corridor of logistics hubs, road, rail, fuel and other infrastructure, including and
connecting Gauteng and Durban, is vital to the future of the national economy
-
Presidential Infrastructure Coordinating Commission (PICS) defined 17 Strategic Integrated
Projects (SIP) of which No 2 deals with the Durban- Free State - Gauteng Logistics and
Industrial Corridor
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South African Freight Logistics Update
14. Conclusion
• Road transport operations the best of all modes;
• Infrastructure and capacity constraints (road, rail and ports);
• Insufficient container handling, information management and rail
operations;
• Border posts now need process improvement rather than infrastructure;
• Logistics Performance Index reflects serious challenges;
• Most important supply chain objective is to increase service;
• Total logistics costs (12.8% of GDP) remains a challenge;
• Freight logistics network concentrated in well-defined corridors;
• Priorities include Durban-Gauteng freight corridor, dug-out port, new coal
rail line and upgrades to existing coal and ore rail lines;
• Specific focus on dry ports and logistics hubs; and
• Gauteng Province to experience significant freight logistics improvements.
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South African Freight Logistics Update
Thank You!
Gerard de Villiers Pr Eng
Logistics Specialist
gerard.devilliers@arup.com
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