Road freight increased by a notable 17.1 percent on a year-on-year basis, taking up the slack created by the ongoing under-performance of the rail freight sector. Picture: David Ritchie/ANA
The logistics sector in South Africa remained under pressure, but road freight was the star performer, the Ctrack Transport and Freight Index showed.
This as heavy rains and floods that occurred in KwaZulu-Natal in mid-April caused a major disruption to the Port of Durban.
The Index for May reported a decline of 1.1 percent compared to the previous month, however, the year-on-year figure still equated to a 4.7 percent improvement, though a clear moderation was evident.
Hein Jordt, chief executive of Ctrack Africa, said: “Many challenges remain for the sector, and the economy in general. These include an erosion of productivity due to regular load shedding and ongoing significant fuel price increases. With the blockage of the N3 during June still fresh in the memory, it is unlikely that June will provide any comfort to the sector either.”
Road freight increased by a notable 17.1 percent on a year-on-year basis, taking up the slack created by the ongoing under-performance of the rail freight sector.
The index found that sea freight and rail were particularly hard hit by the floods in the Durban area, and were still in the process of recovery.
On June 13, Transnet Freight Rail (TFR) reopened a single line in the container corridor between Durban and Cato Ridge, where operations had been suspended since April 11.
“Additional capacity will be unlocked on the mainline in September when repairs on the second line are planned to be completed, and the line reopened to traffic,” Ctrack said.
Three of the six sub-sectors of the Ctrack Transport and Freight Index declined during May, with the biggest contractions in storage and handling (warehousing) and sea freight, while the heavy-weighted rail freight sector, which accounts for 22.6 percent of the index, also remained under pressure. – philippa.larkin@inl.co.za
BUSINESS REPORT ONLINE
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