Of the 1.7 billion tonnes of cargo moved around South Africa during 2012, 88.5% was transported on road versus the 11.5% carried on rail.  Although rail’s portion is only slightly up from its comparative 11.1% share in 2010, projects like the fuel pipeline between Durban and Gauteng are also contributing to a greater impact on the road freight industry.

Some 18 Strategic Integrated Projects (SIPs) were identified by the Government to grow and develop the country by using South Africa’s vast resources and industrial capabilities, including spatial, geographically-focussed, energy, social infrastructure and water and sanitation projects.  Rail was specifically included as a strategic area of development to increase the country’s transport efficiency as a whole.

Rory Schulz, general manager of corporate planning and marketing at UD Trucks Southern Africa, says, “The road transport industry is definitely starting to feel the impact of an increased transfer of certain cargo to rail. As the various identified industrial corridors are developed even further, the impact on the road freight industry will definitely become more prominent.”

“These anticipated effects will, as a result, have a dramatic impact on the truck industry’s market dynamics, including a definite shift to smaller commercial vehicles to distribute broken-down bulk over shorter distances.”

Schulz concludes, “We anticipate that road freight will remain important in the area of construction, agriculture, daily commodities, consumer goods, parcel and post, whereas rail will play a greater role in running automotive cargo (car carriers), petroleum (chemicals) and containers.”

“As a company, UD Trucks Southern Africa remains supportive of the government’s investment in the country’s rail networks, as we believe rail forms an integral part of the solution to a better logistics industry, and subsequently to the enhancement of the local economy.”