Call for protection of vital logistics supply chains
Durban — South Africa’s trucking industry was faced with various challenges throughout last year, and as 2023 begins, the SA Road Freight Employers Association has called for the implementation of the changes brought about by the Moving South Africa Strategy and the National Road Traffic Act (NRTA) – especially Chapter VI (operator fitness).
Association CEO Gavin Kelly said with the political changes, the transport minister would change. He said this was key to both the economy and all the modes that required a steady and clear vision of transport and the road freight sector in particular.
Kelly said much of the devastation in the road freight sector could be prevented through the application of the NRTA and the concerted effort by all authorities to remove non-compliant operators from the road.
Kelly added that this year must also see those departments mandated with ensuring law and order, playing their part, without fear or favour, to ensure that the vital logistics supply chains were protected.
“Rail and harbours must become more efficient. They need to play their part and understand that the various transport modes – air, sea and land (road and rail) – must work together, not compete with one another – and definitely not rely on prescriptive legislation to artificially skew competition and efficiencies. We will all pay that price,” Kelly said.
He said we may not have had the bountiful year-end festive season hoped for by many retailers (large and small), but the economy was improving at a far faster or more resilient rate than what was initially expected.
“This should continue into the first two quarters of 2023, which will result in higher demand for consumer goods – and that will result in stronger logistics demand,” said Kelly.
He said the demand to replenish inventories has remained strong, which is further supported by market growth (population growth and the increase in disposable income), pushing consumption levels upwards.
“Transporters will feel this impact in the demand for transport.”
Kelly said that there were signs of many “green shoots” which will assist with a slowing down of the rate of increase of inflation – and thus the relaxation of the stiff increase trajectory of the repo rate.
“Fuel is reportedly heading for another solid reduction (petrol by at least R1 and diesel by about R2). These figures will be defined closer to the time – but decreases in these price ranges (or more) is very good news …”
Kelly said there has been a worrying trend over the year when it came to criminality affecting the sector, adding that it has increased, and what appeared to be “organised attacks” on the supply chain continued in spite of efforts by various role-players.
“Specific cargoes are targeted (recent reports on theft of coal), attacks on agriculture (both while in the field and when harvesting occurs), pinpoint activities relating to high-value goods (liquor/electronic goods/foodstuffs) and then the continued hijacking of vehicles (for parts/resale /industrial sabotage).”
He said in addition, common crime (theft, malicious damage to property, assault, fraudulent activity, bribery, corruption) has become the “norm”. Vehicles are frequently “stoned” to stop so looting can occur or to “voice” displeasure at issues “irrelevant to the road freight operator”.
Daily News