If the South African government fast tracked its investment in transport infrastructure projects, it could help stimulate the economy in 2017. This is according to David Kruyer, MD and founder of Concargo in Cape Town.

In an interview with the American Journal of Transportation, Kruyer said that in February 2015 government announced plans to spend R813 billion on infrastructure over three years. However, to date, has been lower than anticipated. He explained that if government was serious about stimulating the economy, it needed to fast track its investment in infrastructure.

Getting from A to B on road

Kruyer told the journal that no matter what business people were in, they needed to get things from A to B. “Road, at 86%, carries the majority share of freight compared to other modes, followed by shipping and then rail,” he said.

Kruyer explained that road was currently regarded as the “most reliable, predictable and cost effective mode of inland transportation and the development of transport corridors”. These include the Trans-Kalahari Corridor which has enhanced trade with neighbouring countries.

Economic effects of cross border movement

Many projects were put on hold last year due to the weakening rand, high fuel costs and political instability, Kruyer said. However, he added that we are beginning to see positive cross border movement, with the transportation of sugar into Mozambique and negotiations under way to get steel to Tanzania.

Concargo’s services

With Concargo being in business for 30 years, the company devised a solution to transport abnormal cargoes cross country and across borders. These include the transportation of wind tower tubes for renewable energy projects as well as mining bucket wheel reclaimers.

Kruyer noted the difficulty of transporting abnormal loads cross country and across borders as these loads have to be accompanied by police. He told the journal that “a more efficient and streamlined national permit system would certainly help to speed up delivery and boost efficiency”.

He added that Concargo has business partnerships with companies in the SADC region to help the movement process of goods for its customers.

Technology gives freight industry the edge

As with all things that must keep up with the latest trends, sophisticated IT systems are increasingly being incorporated into the freight industry to help track the whereabouts of shipments.

“An innovative tracking and tracing system ensures transparency in the entire supply chain and our Proof of Delivery Image System (PODIS) allows customers to track shipments 24/7, 365 days a year,” Kruyer said.

Looking forward, Kruyer said the focus would be on increasing the company’s collaboration with all players in the global supply chain community.

“The fact that we operate throughout SA and the SADC region opens up many opportunities to support the growth of the South African and African economy and we look forward to continuing to be the ‘go-to’ company for transport and supply chain logistics in this region,” he said.