The impact of transport pricing in South Africa on freight transport costs

Abstract

A number of studies have highlighted high logistics costs as one of the factors that inhibit the competitive advantage of South Africa. Yet, South African transport policy and transport plans focus almost entirely on passenger transport rather than on freight transport. Although the importance of lower logistics costs has recently been noted at the highest level, all levels of government still do not appreciate the full extent of the problem, and the need to implement an action plan to address current deficiencies in the logistics system. In order to understand and appreciate the full extent of the cost of logistics in the South African economy, it is imperative that the transport cost be calculated.