Research by Stellenbosch University confirms that transport costs showed a drastic increase of 16.2 percent during 2010, compared to 2009, while inventory carrying costs decreased by 19.9 percent during the same period,” said Nadia Viljoen of the Council for Scientific and Industrial Research (CSIR).

“South Africa is a transport-hungry economy. If transport is not given priority as a strategic planning imperative, it could become the Achilles heel of economic growth,” she said.

Viljoen said transport costs were influenced by fuel price increases and reduced interest rates.

The survey done by the CSIR, Imperial Logistics and the Stellenbosch University was released in Johannesburg on Wednesday afternoon.

Zane Simpson, of Stellenbosch University, said the shift from transporting cargo by road to rail was still a concern.

“A solution to mitigating the risk associated with transport costs is a significant modal shift from road to rail, but consideration should also be given to reducing transport demand,” said Simpson.

The survey showed small-scale farmers were the most affected by fruit cargo damage.

A case study revealed an increasing loss of income for farmers when their wheat was transported on bad roads.

“The wheat-loss due to vibrations [while being transported] is estimated to amount to R2.5 million per year for South Africa,” she said.

The government’s investment in infrastructure development had seen more than R260 billion being set aside for transport and logistics projects, said Cornelius Ruiters, executive director of CSIR Built Environment.

“The effective maintenance, expansion and management of our country’s infrastructure will enable South Africa to compete at a higher level globally,” he said.

The CSIR said South Africa was at a position to excel as a global partner because of its logistics sector.

Source: http://www.citizen.co.za