Abstract
The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) identified South Africa's freight logistics challenges as among the key binding constraints on the country's growth aspirations. The research presented here points to the structural imbalance between road and rail freight transport as one of the key contributors to this state of affairs. Most long-distance corridor transport has been captured by road. However, long-distance transport is a market segment that is very suitable for intermodal transportation : rail is utilised for the high-density, long-distance component and road for the feeder and distribution services at the corridor end points. A market segmentation approach is developed to identify the corridors and industries that are natural candidates for such solutions, thereby paving the way for role-players and stakeholders to initiate a dialogue on the development of appropriate solutions.
Highlights
The high cost, inefficiency and strained capacity of the national logistics system are among the six binding constraints identified by the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) (Republic of South Africa, 2004).Totalling R339 billion, or 14.7% of GDP in 2008 (Havenga, Van Eeden & Simpson [SOL], 2009: 15), South Africa’s logistics cost as a percentage of GDP is high compared with, for example, that of the United States (10.1% in 2007) (Wilson, 2008: 1) and of Japan (10%) (United Nations, 2002: 22)
The purpose of this paper is to present the results of a market segmentation approach that enables the identification of the key target markets for such intermodal solutions, which could direct collaborative infrastructure investment discussions
The market segmentation analysis indicated that South Africa has two high-density, longdistance corridors (Durban–Gauteng and Cape Town–Gauteng), which are ideal candidates for intermodal solutions
Summary
The high cost, inefficiency and strained capacity of the national logistics system are among the six binding constraints identified by the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) (Republic of South Africa, 2004). Totalling R339 billion, or 14.7% of GDP in 2008 (Havenga, Van Eeden & Simpson [SOL], 2009: 15), South Africa’s logistics cost as a percentage of GDP is high compared with, for example, that of the United States (10.1% in 2007) (Wilson, 2008: 1) and of Japan (10%) (United Nations, 2002: 22). From a macroeconomic perspective, road freight transport results in the inefficient allocation of production factors, compounded by externalities. Externalities for South Africa are estimated at R34 billion
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