January 19 - David Kruyer, founder of Cape Town based Concargo, believes better days lie ahead providing the South African government make the necessary infrastructural investments as soon as possible.
According to Kruyer, South Africa's transport infrastructure has a direct impact on the growth of the economy, contributing 48 percent to GDP.
"No matter what business people are in they need to get things from A to B in order to set up a business or trade goods, and that requires an efficient and reliable transport sector. Road, at 86 percent, carries the majority share of freight compared to other modes, followed by shipping and then rail," says Kruyer.
Even though South Africa currently permits some of the largest vehicle combinations in the world for general freight haulage, at a maximum general vehicle mass of 56 tonnes, moving heavy lift cargo remains a challenge as each province requires different permits and a police escort, says Kruyer.
Kruyer adds: "Because time is money, a more efficient and streamlined national permit system would certainly help to speed up delivery and boost efficiency."
According Kruyer, moving goods over borders into neighbouring countries is even more complex but it is 40 percent of Concargo's business, which is why it has developed strategic business partnerships with companies in the SADC (Southern African Development Community) region.
In February 2015 the South African government announced plans to invest ZAR813 billion (USD59.6 million) on infrastructure over a period of three years, however Kruyer suggests the spending to date has been lower than anticipated.
Kruyer urges that the infrastructural investments need to be fast tracked and have a focus on projects in the transport industry. He expects the demand for effective, economically viable transport services to increase in the years ahead.
HLPFI will be including a road haulage feature in the March/April edition. If you have any comments on the above or would like to contribute, let the editorial team know at email@example.com