Executive summary
1.1 Why a freight logistics roadmap?
The efficiency of logistics systems is integral to the functioning of all economies. The services which move goods and people should be provided in a safe, efficient and cost-effective manner, and designed to address policy objectives such as promoting economic growth and eradicating economic inequality. Improved efficiency in logistics can unlock the potential of the rest of the economy, as the cost of logistics affects all other sectors.
A well-functioning logistics system is particularly important for the South African economy, given the geographical distribution of economic activity in the country, our reliance on commodity and other exports, and our distance from key export markets. For this reason, the declining performance of South Africa’s freight logistics system is a binding constraint on economic growth, and must be reversed if we are to achieve more rapid growth, development and job creation. The inability to transport goods efficiently and securely has had a direct impact on sectors which rely on the freight rail network, including mining, agriculture and automotive manufacturing, among others. It has also had a cascading impact on the economy as a whole, as a result of declining tax revenues and stalled investment.
The implementation of this roadmap will be overseen by the Department of Transport, Department of Public Enterprises, National Treasury and the Presidency, coordinated through the National Logistics Crisis Committee (NLCC) to enable a coherent, integrated response to the challenges within the national logistics system
