First state of logistics survey for South Africa 2004: The case for measurement and revitalisation of basic logistics infrastructure in our dual economy

Abstract

This survey highlights that South Africa's core structural problems are far worse than expected: Logistics cost represents a considerable percentage of the GDP (14.7% or R180bn). We spend more on transport than generally expected and much more than we should; The "normal" macro economic model is to transport long-distance corridor freight on rail, with feeder and distribution services provided by road. Structural investment mypoia caused an unhealthy situation in South Africa, with three quarters of long-haul tonnage on road; Our dense long-haul road corridors are intrinsically more expensive than a possible intermodal solution (even more so if extrinsic costs are considered). An overarching investment strategy should therefore consider that greater efficiency in one mode is a "second prize" compared to greater efficiency between road and rail.