Road Freight Challenges in South Africa

Freight transport is the backbone of any country's economy. In South Africa, road freight contributes 46% to the economy. It is no secret that the road freight industry is rapidly developing, in both South Africa and Africa which offers numerous opportunities. 

However, there are and always will be a number of challenges this industry face. According to the 10th State of Logistics Survey for South Africa, the main areas we should focus on are our transport infrastructure, logistics cost, and the lack of a skilled workforce.

Transport infrastructure
The state of a country's transport infrastructure determines the performance and growth of its economy, as well as the social and economic opportunities available to that country's people. South Africa needs to invest in its transport infrastructure, as the overall impression is that the condition of road infrastructure in the country has been in decline for a number of years.

The government will spend R813 billion on infrastructures over the next three years. Transport and logistics account for 42% of spending on infrastructure. These investments are aimed to improve the national transport infrastructure network, improve the mobility of people and services and ease local trade.

It becomes trickier when resources are harder to find and the government is already feeling the heat financially. Private sector involvement has done a lot to balance the scales where public funding is limited.

Logistics costs
Fuel costs are by far the most significant and unstable cost driver in transport (and therefore logistics) costs. However, vehicle repair, maintenance, and tire wear also play their part in this. When road roughness increases, the fuel consumption of heavy trucks increases as well. As South Africa is dependent on road transportation, the effects of these costs on the overall economy may be cause for concern.

Lack of a skilled workforce
Another hurdle on the road within the industry is the lack of a skilled workforce. The unavailability of a skilled workforce is viewed as one of the key constraints to the growth of business operations in South Africa. This appears to be a global problem in the freight industry with 39% of businesses around the world struggling to recruit the appropriate people.

Nearly two in five businesses (37%) in the BRIC (Brazil, Russia, India, and China) economies believe an inability to get the right workers will reduce growth in the years to come. It has thus become important to identify the logistics skills requirements in South Africa so that these shortages can be addressed to the benefit of the trade-in and with South Africa.

Of course, each year brings with it more challenges and more opportunities. As the road freight sector expands, it will find solutions to pave the way forward for a brighter future.

Do you consider yourself to be the very best when it comes to the Freight industry? Are you qualified in this field? We have opportunities available in Sales, Road Freight, Courier, Warehousing, Logistics, Production, and more. Check out our vacancy page and apply today.