New regulations published in the Government Gazette look set to address logistics bottlenecks

For the animal kingdom winter is often a time of hibernation to avoid icy cold weather. 

Fortunately, the opposite is true this year in the South African logistics sector where a thawing in the glacial pace of reform has brought sunshine to a place of perennial gloom. 

New regulations published in the Government Gazette look set to address logistics bottlenecks by exempting operators in key transport corridors from sections of the Competition Act. 

In effect these operators will be able to collaborate and share data, in a manner previously outlawed, promoting efficiency in areas such as procurement, maintenance and scheduling. 

The move is seen as a welcome response to ongoing logistics delays that are hampering economic growth. 

The Cape Chamber has been actively working to resolve obstacles within the Western Cape logistics sector. Much progress has been made, and this latest regulatory initiative should embolden investors. The Southern African Association of Freight Forwarders describe the news as a ‘pivotal moment’ in logistics reform. 

Port volumes are already seeing improved performance thanks to efforts to improve operational efficiencies. Richard’s Bay reportedly exceeded its volume target in the latest financial year, and Cape Town citrus exports improved by 27% despite losing valuable time due to inclement weather. 

We are seeing similar positive momentum in the energy sector where government is allowing greater private sector participation. 

However there remain concerns about Eskom, notably its bloated workforce. A World Bank policy research paper estimates the power utility to be 66% overstaffed. News website BusinessTech this week said its own calculations found average cost per Eskom employee has increased 976% over 34 years, from R38 000 per employee to R913 000. 

Imagine how much healthier the economy would be if government, in addition to assisting private sector stakeholders operate more efficiently, could address inefficiency within its own ranks with similar vigour. 

Jacques Moolman
President of the Cape Chamber of Commerce and Industry