LOGISTICS: Logistics Business Should ‘Move Together’ with S’hamba Sonke
Recent Gauteng Business News
Imperial Logistics commends the Department of Transport (DoT) on the launch of its S’hamba Sonke secondary road upgrade and maintenance programme that will see R22,3 billion invested by government. Its objective to achieve a balance between construction and sustainable maintenance investment is critical in light of the 7th Annual State of LogisticsÂ™ survey road benefit-cost analysis.
“The link between South Africa’s consistently high total logistics costs and bad roads is proven,” says Abrie de Swardt, Imperial Logistics Marketing Director. “A country’s total cost of logistics has a direct bearing on how competitive the economy is in the global context.”
The survey, published by the Council for Scientific and Industrial Research (CSIR), Stellenbosch University and Imperial Logistics investigates the link between the quality of roads and unnecessary maintenance and operations costs for cargo vehicles. It states, “Deteriorating road quality can lead to drastic increases in vehicle maintenance and repair costs, resulting in sizeable increases in company logistics costs.”
“There is a significant saving in the cost of vehicle repair and maintenance through investment in infrastructure maintenance,” he says. “The survey points to the minimum and maximum benefit-cost ratios of 1.88 and 3.47, respectively. This implies that the potential benefit – in terms of vehicle operating cost savings – that could be realised over a seven-year period is between 1.88 and 3.47 times the cost of maintaining the road.”
De Swardt notes that the survey also finds that “the resulting total vehicle operating costs vary between R3.00 per kilometre for a good road and R 7.00 per kilometre for a bad road.” In addition, of the total R22.7 billion in the country’s externality costs, the majority can be attributed to road transport.
“The benefits of sustainable infrastructure maintenance far outweigh the costs. The Logistics sector, through industry knowledge and research, as well as public-private partnership participation has much to contribute to supporting government in its S’hamba Sonke Programme,” De Swardt concludes.
Business News Sector Tags: Local Government| Logistics|