Logistics costs decrease as a percentage of GDP

| 0 Comments
Logistics_routes.jpgSouth Africa’s 2010 freight logistics expenditure of R339-billion is 12.7% of gross domestic product (GDP), a percentage decrease when compared with 2009’s 13.5% of GDP, revealed the eighth State of Logistics Survey, ‘Gearing up for Change’, published in May 2012 by the Council for Scientific and Industrial Research (CSIR), Stellenbosch University and Imperial Logistics.

 

 

The continuing downward trend in South Africa’s logistics costs as a percentage of GDP was in contrast to recent movements in the United States, where it grew from 7.7% to 8.3% in 2010, said the report.

Transport costs were the single-biggest factor influencing South Africa’s logistics costs, accounting for 53.2%, compared with the global 40%. “South Africa is a ‘transport-hungry’ economy; if transport is not given priority as a strategic planning imperative, it could become the Achilles heel of economic growth.”

Transport costs in South Africa increased significantly by 16.2% in 2010, compared with 2009, mainly attributed to rising fuel costs. Consequently, uncertainty relating to the fuel price was identified as an important risk for South Africa’s transport costs.

A significant modal shift from road to rail is required to mitigate the risk associated with transport cost, but reducing transport demand should also be considered, noted Zane Simpson of the Stellenbosch University.

Freight transported on roads grew by 5.5% to 1.44-billion tons in 2010, up from 1.37-billion tons in 2009. Rail transported 182-million tons in 2010, 3.7% more than the 173-million tons recorded the previous year.

The performance of South Africa’s logistics sector has been a determining factor in positioning the country as a sought-after business partner.

“The South African government’s increased focus on investment in infrastructure development has seen more than R260-billion being set aside for transport and logistics projects,” said CSIR Built Environment executive director Cornelius Ruiters, adding that effective maintenance, expansion and management of South Africa’s infrastructure would enable the country to compete at a higher level.

However, for logistics to become a competitive weapon for South Africa, change would be required. “We need to change from the mindset that logistics is merely the result of the market activity, to that of giving logistics its due as a value creator,” said IMPERIAL Logistics chief integration officer Cobus Rossouw.

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More