http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.35Change: -0.14
R/$ = 11.17Change: -0.10
Au 1215.17 $/ozChange: -2.09
Pt 1327.00 $/ozChange: -5.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 02, 2012

South Africa needs to relieve supply-chain constraints

Back
Barloworld Logistics marketing executive Kate Stubbs discusses Barloworld Logistics' latest 'Supply Chain Foresight 2012' research report
Expertise|Gold|Maputo|Port|Africa|Barloworld Logistics|Ports|Road|Africa|Egypt|Nigeria|South Africa|Logistics|Transport|Environmental|Clem Sunter|Kate Stubbs|Power|Rail
Expertise|Gold|Port|Africa|Ports|Road|Africa||Logistics|Transport|Environmental|Power|Rail
expertise|gold|maputo|port|africa-company|barloworld-logistics|ports|road|africa|egypt|nigeria|south-africa|logistics|transport-industry-term|environmental|clem-sunter|kate-stubbs|power|rail
© Reuse this



Research undertaken by logistics group Barloworld Logistics on Friday revealed the possibility that South Africa may soon lose its role as the world’s ‘gateway to Africa’ if it does not respond to rising competition from other African countries.

In its ninth publication of ‘supplychainforesight’ 2012, Barloworld said that Nigeria was seen as the most likely to overtake South Africa as leading economy and gateway to Africa.

“The research showed clearly a shift in global economic power towards emerging market economies. This shift should present South African businesses with a significant opportunity to capture market share. Companies should be embracing emerging market economies as trading partners and as new markets – and this is especially so of the African continent, where South Africa has for so long been seen as the trading and logistics gateway into Africa.

“That position is now under threat from other African countries like Nigeria, Egypt and other Southern African trade corridors such as the Maputo corridor,” Barloworld Logistics marketing executive Kate Stubbs said.

She noted that there was renewed and intense interest from the developed world to invest and grow businesses in Africa.

“The research highlighted that South African companies need to understand the threats and opportunities present for industry and the national supply chain in other African markets,” Stubbs said.

Respondents comprising top management and business owners across all sectors of the South African economy cited increasing flexibility, agility and responsiveness as the top strategic objective for their businesses, while making better use of the supply chain to gain competitive advantage and expansion into emerging markets were also ranked as critically important strategic objectives.

However, the cost of doing business is the most significant strategic constraint businesses have to deal with in South Africa. Currency volatility and the strength of the rand were also cited as critical constraints to doing business in South Africa, followed in severity by local competition and the macroeconomic uncertainty that currently dominates world markets.

More specifically, respondents indicated that when it came to supply chain management, the cost of transport is the most significant constraint to doing business in the country. South Africa’s economic hub, Gauteng, is located about 600 km from the closest port, making it a transport-intensive economy.

The country is characterised by an imbalance between road and rail costs, while the situation would be exacerbated with the imposition of tolling and carbon tax fees. The research pointed to a critical communication disconnect between the public and private sectors, making it difficult for companies to effectively plan their strategies.

Other factors cited as restraining the supply chain included finding skills and expertise to enhance the supply chain segment, the inefficiency of ports and harbours, labour unrest affecting supply chains and reducing the environmental impact of supply chains.

“These days cost management and partnership are essential to the use of the supply chain as a competitive advantage,” Stubbs said.

“The only one thing businesses could be certain about during the year is that almost all aspects of the business environment are changing,” strategist Clem Sunter said during the research results presentation.

“Africa is a gold mine if one offers the right product,” he said.

The research pointed to a set of action points that South Africa should heed to develop its market competitiveness. This included the need to support and develop industries that will provide the country with an international competitive advantage, align skills development and programmes to the needs of such industries, organise industries more collaboratively, so that more effective lobbying and skills development can be realised and the need for private and public sector collaboration at policy formulation level.
 

Edited by: David Shepherd
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Mozambican, Swazi and South African dignitaries at the official inauguration of the Maputo Corridor JOC
Updated 6 hours ago The Mozambican port and rail authorities plan to invest around $3-billion in the coming few years to raise yearly throughput at the Maputo port to between 40-million and 50-million tons by 2020 and to migrate additional cargo from road to rail. Speaking at the...
The Transnet National Ports Authority (TNPA) welcomed the Ports Regulator of South Africa’s decision to switch to a multiyear tariff methodology, TNPA CFO Mohammed Abdul said on Friday, stating that a lack of certainty in prior years had negatively affected TNPA’s...
The Coega FAW plant
FAW South Africa (FAW SA), a subsidiary of China’s FAW Group, has established a joint venture with the Pamodzi Group, focusing on truck sales in South Africa and other countries in sub-Equatorial Africa. The new company, Pamodzi-FAW, is 51% held by Pamodzi and 49%...
More
 
 
Latest News
Updated 6 hours ago  South Africa signed a nuclear power cooperation deal with Russia on Monday that paves the way for the building of up to 9.6 GW of nuclear power based on Russian technology by 2030, both sides said. The surprise announcement from the sidelines of a International...
Mozambican, Swazi and South African dignitaries at the official inauguration of the Maputo Corridor JOC
Updated 6 hours ago The Mozambican port and rail authorities plan to invest around $3-billion in the coming few years to raise yearly throughput at the Maputo port to between 40-million and 50-million tons by 2020 and to migrate additional cargo from road to rail. Speaking at the...
A series of unfortunate events led to Johannesburg and surrounding areas experiencing significant water shortages over the past week, City of Johannesburg mayoral committee member for development planning and urban management Roslynn Greeff said at a media briefing...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks