Provincial logistics costs in South Africas Western Cape province : microcosm of national freight logistics challenges
Date
2015-09
Journal Title
Journal ISSN
Volume Title
Publisher
AOSIS Publishing
Abstract
Background: Logistics costs are most commonly measured on a national level. An
understanding of the provincial logistics landscape can add significant value both to provincial
and national policy interventions; such measurements are however scarce. South Africa’s
national freight logistics survey points to significant challenges in the structure of the freight
transport market, most importantly the dominance of road freight transport on dense, longdistance
corridors. The Cape Town-Gauteng corridor is the main economic artery linking the
Western Cape province to the rest of the country.
Objectives: The provincial government commissioned this research to develop an
understanding of the province’s contribution to the national logistics challenges in order to
alleviate both provincial and national logistics challenges.
Results: The research results provide a distinct description of the key action required – to
provide an intermodal solution for the dense flows of fast-moving consumer goods on the
Cape Town-Gauteng corridor in order to reduce the significant transport and externality costs
related to these flows and reduce exposure to exogenous cost drivers.
Conclusion: Collaborative research between government and private industry into
appropriate intermodal technologies must be prioritised within the ambit of South Africa’s
socioeconomic environment. This shift can be further supported through the internalisation of
road transport externalities to enable a total cost decision between modes, as well as through
appropriate regulation of the freight transport industry.
Description
CITATION: Havenga, J. H., Goedhals-Gerber, L. L., De Bod, A. & Simpson, Z. 2015. Provincial logistics costs in South Africa’s Western Cape province : microcosm of national freight logistics challenges. Journal of Transport and Supply Chain Management, 9(1), Art. #206, doi:10.4102/jtscm.v9i1.206.
The original publication is available at http://www.jtscm.co.za
The original publication is available at http://www.jtscm.co.za
Keywords
Transportation costs -- South Africa -- Western Cape, Business logstics, Freight and freightage
Citation
Havenga, J. H., Goedhals-Gerber, L. L., De Bod, A. & Simpson, Z. 2015. Provincial logistics costs in South Africa’s Western Cape province : microcosm of national freight logistics challenges. Journal of Transport and Supply Chain Management, 9(1), Art. #206, doi:10.4102/jtscm.v9i1.206.