TRANSPORT AND LOGISTICS BY KOKETSO MAMABOLO & CHARNDRÉ EMMA KIPPIE
The role of transport and logistics in economic development
W
ithout stunning leaps in transportation and evermore intricate logistics management, humanity would not have developed to the point it has now. Without the ability to cross oceans, fly over continents and drive through countries, we wouldn’t be able to exchange goods at the rate that we do. With both imports and exports seeing gains in the fourth quarter, the ability for the private and public sectors to move and store goods is as important as ever. StatsSA recorded growth in imports of 8.9% and imports of 8.5% in their latest GDP report. “The success of all modes of transport is a vital prerequisite for economic growth,” said His Excellency President Ramaphosa, speaking at the launch of Transport Month in October of 2017. “Economic growth and service delivery can only take place when we have efficient and reliable transportation.” The transport sector employs over 400 000 people full-time, and another 15 000 part-time, with grossing earnings sitting just under R40-billion. With real GDP growth of 2.1% projected for 2022 and 1.8% over the next three years, the government is eager for more growth, and is well aware of the extent to which infrastructure and an improved transport system can contribute to increasing these numbers. During the Budget Speech in February, the Minister
30 | Public Sector Leaders | April 2022
of Finance, Honourable Enoch Gondongwana said: “We are accelerating the implementation of critical structural reforms contained in the ERRP in particular in electricity, rail, ports and telecommunications.” “As we upgrade roads, bridges, water and sewer (sic), transport and school infrastructure and hospitals and clinics, the aim is to unlock higher levels of employment for those involved in the projects.” Simply put, a well-functioning infrastructure network, coupled with efficient transport, is key to supply-chain management. The more goods we are able to move, and the quicker we can move them, the more potential there is for growth. As populations grow and as the manufacturing and agricultural upscale in order to meet the demands, we need transportation and logistics management which can ensure goods are moved and stored in a way that doesn’t create shortages or long waiting times. The transport and logistics industry feeds into many other sectors throughout the country, acting as a ‘feeder-network’ to a variety of industries, including agriculture, manufacturing, retail and so forth etc. Without streamlining the industry, the fundamental economic principles of ‘supply and demand’ cannot be fulfilled. Thus, technological adaptation and innovation plays a huge role in keeping our economy going.
