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LATEST STATS: ROAD vs RAIL – 87:13

According to the 6th Annual State of Logistics Survey, logistics costs for 2008 amounted to R339 billion or 14,7% of GDP – a drop of 1,2% from the previous year. Transport still dominates the logistics cost: distribution with 50,4% & inventory carrying cost standing at 18,6%. Transport remains the biggest contributor to logistics costs and thus the biggest challenge in South Africa’s logistics system.

Rail contributed 204 million tons at an average distance of 640 km, resulting in market share split for road and rail by tons transported at an 87/13 split.

The survey also included a case study which concluded that trucks traveling on roads with average and bad driving conditions experienced an increase in maintenance and repair costs of up to 132%.

Dr Jan Havenga, Director and Head of University of Stellenbosch’s Supply Chain Management Centre addresses this year’s RFA Convention shares more of the valuable findings of the survey and how their impact on logistics in South Africa. For more information on the convention, please click on the link below in the event calendar.

 
 
 
 

We encourage comment from members of the industry with either a fresh perspective or in response to one of our weekly contributions. Please e-mail us at editor@supplychainupdate.co.za


 
   
 




 

CSCMP: AARTO is coming to get YOU! – 19 July, Jhb  - view details

 

Fundamentals of Demand Forecasting – 25-26 August 2010, Jhb  - view details

 

SAPICS – 25-28 July 2010, Sun City  - view details

 

RFA Convention – 22-24 August, Wild Coast Sun  - view details

 

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