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Freight Transport by Road in South Africa 2016

  • January 2016
  • 149 pages
  • Who Owns Whom
Report ID: 3630058


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Road Freight Transport: This report focuses on the transport of freight by road, a sector which generated total income of more than R125bn in 2014, thus contributing approximately 3.7% to GDP. Statistics SA’s estimate of a total outsourced contract road freight payload of 574,560,000 tons for 2014 can be doubled as there is a 50/50 split between outsourced and in-sourced road freight transportation. In this highly competitive sector, industry players are optimising innovation and smart partnerships to develop more collaborative operations using multi-modal and intermodal transport options.

Challenging Conditions:
As the road freight sector and the economy enjoy an interdependent and symbiotic relationship, the current weak economy, both globally and domestically, is having a negative effect on the volume of goods requiring transportation by road. As fuel remains the largest contributor to road transport costs and many inputs are imported, the weak rand dollar exchange rate is a matter of concern. With tight profit margins of an average 4%, role players are looking at ways to reduce soaring operational costs.

Legislative Changes: Also of concern to stakeholders is the impact of proposed changes in the regulatory environment. The implications of some of the regulations covered by the Amendments to the National Road Traffic Act are far-reaching and could result in an operational loss of up to 40%.

Report Coverage:
The Freight Transport by Road report discusses current conditions, details the extensive M&A activity that has occurred in response to conditions and trends, and describes factors influencing the success of the industry. The report profiles 55 companies including large players such as Barloworld Ltd, Grindrod Ltd and Bidvest Freight (Pty Ltd as well as small companies such as Ethos Road and Transport Services CC which has 16 employees and transports aggregates used in road construction projects. Also profiled are companies active in the local furniture removals industry which is dominated by two players, The Laser Transport Group, which includes Stuttaford Van Lines, Pickfords Removals, AGS Frasers International Movers and Magna-Thomson International Movers, and Elliott Mobility (Pty) Ltd.

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