TRANSPORTATION & LOGISTICS FOCUS BY JESSIE TAYLOR
TRANSPORT MONTH:
Driving economic transformation through the transport sector
S
outh Africa has an expansive network of roads, rail, shipping and air transportation – but this industry is responsible for enabling economic activity in the country’s most productive sectors. South Africa’s transport and logistics industry contributes around R270-billion to the country’s GDP and offers an essential service to other sectors identified as critical drivers of economic growth in the country’s Economic Reconstruction and Recovery Plan (ERRP), especially mining, agriculture and manufacturing. Mining ventures require safe and reliable transport of equipment and mineral reserves. At the same time, the agriculture industry relies on efficient transportation to move crops from farms to their end destinations locally and internationally.
The manufacturing sector’s raw materials and finished products are also transported along South Africa’s networks, making it essential for the sector’s growth. And on top of being essential for the success of so many economic drivers, the transport and logistics sector is also a significant employer, creating around 375 000 jobs. Showing strong recovery South Africa’s transport sector has been affected by the Covid-19 regulations and the economic downturn. Initial restriction on the sale of retail goods had an immediate effect on trucking companies, reducing vehicle movement and necessitating retrenchments at some companies. Various alcohol bans have also played a role in reducing demand for transport. Last year, the overall industry contraction was estimated at around 67.9%. The rail and shipping sectors
12 | Public Sector Leaders | October 2021
have been similarly impacted, especially with initial closures of borders for all but essential goods. During the strictest lockdown level, trade to and from South Africa dropped by 3%. Port operations reduced by around 40%, with rail operations scaling down to a similar level. But not all enterprises were negatively affected.
The transport and communication industry showed the largest recovery in the second quarter, according to Statistics SA An increase in online retail saw the need for goods to be transported, and at-home delivery services have seen increased demand since the start of the pandemic. Despite the economic downturn, the transport and communication industry showed the largest
