business opportunities in the transport industry …
TRANSCRIPT
BUSINESS OPPORTUNITIES IN THE TRANSPORT INDUSTRY GUIDELINE BOOKLET
FOR BROAD-BASED BLACK ECONOMIC EMPOWERMENT (B-BBEE) COMPANIES
BUSINESS OPPORTUNITIES IN THE TRANSPORT INDUSTRY GUIDELINE BOOKLET
FOR BROAD-BASED BLACK ECONOMIC EMPOWERMENT (B-BBEE) COMPANIES
REPUBLIC OF SOUTH AFRICA
Table of Content
PURPOSE 5
SCOPE 5
INTRODUCTION 5
TAXI 6
RAIL 8
AVIATION 9
MARITIME 10
FORWARDING AND CLEARING 11
ROAD FREIGHT 12
BUS 15
PUBLIC SECTOR 17
CONCLUSION 18
5
PURPOSE
This document is aimed at assisting stakeholders and any other party interested in doing business in transport industry to identify business opportunities, and especially the B-BBEE companies that just emerged along with those that are well established.
SCOPE
This guideline document does not contain any confidential companies’ information as a result; it is for public usage at large. Eight transport sub-sectors are being covered in this document namely; Aviation, Maritime, Road Freight, Rail, Bus, Taxi, Forwarding and clearing and the Public Sector. The BEE Directorate in National Department Transport took a significant step of developing subsector charters which are currently known as sector codes
INTRODUCTION
Since the inception of B-BBEE there have been many questions and enquiries from black individuals and companies on how they can participate or get involved in this dynamic transport industry. It has not been an easy task to holistically explain the opportunities accessible in all transport sectors hence there wasn’t information at hand to refer people to. It was then of crucial importance that this challenge be addressed as a supplement to the B-BBEE charters that have been developed with the aim of enhancing transformation in this industry. There are industries that are complex in nature and which black people were not exposed, this was due to minimal education initiated by the apartheid government, entry barrier were put in place for black people to enter those industries. It is still a challenge for black people to be equipped with such knowledge as they are seen as non-interesting fields whereas money generated by those industries is unbelievably huge amounts. All subsectors will then be separately looked at in terms of the opportunities available to establish a business.
6
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
TAXI
NT
V O
PE
RA
TO
RPr
e-bo
oked
tou
rsC
urio
sal
esC
ater
ing
Del
iver
ies
JV w
ith N
TV
man
ufac
ture
rsTo
urism
Cur
rent
bus
ines
s op
erat
ion
Impr
oved
bus
ines
s op
erat
ion
Vehi
cle
war
ehou
sing
Afte
r fiv
e de
cade
s an
d bi
llions
of d
olla
rs, f
orei
gn a
id
to A
fric
a ha
s fa
iled
to ig
nite
su
stai
nabl
e ec
onom
ic g
row
th
and
pove
rty
alle
viat
ion.
For
to
o m
any
Afr
ican
s, th
eir
qual
ity
of li
fe t
oday
is w
orse
tha
n it
was
thi
rty
year
s ag
o. R
athe
r th
an lo
okin
g to
out
sider
s fo
r an
swer
s, th
e ke
y to
pov
erty
al
levi
atio
n in
Afr
ica
is m
ore
likel
y to
com
e fr
om lo
cal
entr
epre
neur
ship
.
Educ
atio
nal s
et b
acks
Leng
thy
nego
tiatio
nFa
ilure
to
adhe
re t
o ru
les
Res
istan
ceTe
nder
pren
eurs
Info
rmat
ion
back
lock
sSa
fety
Issu
es n
o jo
b se
curit
yM
inor
ity o
f wom
en o
pera
tors
du
e to
the
vio
lenc
eH
igh
Insu
ranc
e &
Fue
l cos
tLo
w F
inan
cial
Mar
gins
End
to e
xplo
itatio
n of
driv
ers
Mos
t dr
iver
s w
ork
long
hou
rs
for
wag
es b
ased
on
pass
enge
r nu
mbe
rs.
Thi
s is
an in
cent
ive
to o
verlo
ad
and
driv
e to
o fa
st.
NT
V
MA
NU
FAC
TU
RE
RN
TV
man
ufac
ture
Com
pone
nt s
uppl
yR
aw m
ater
ial s
uppl
yVe
hicl
e di
strib
utio
n an
d w
areh
ousin
gA
utom
otiv
e m
anuf
actu
ring
Logi
stic
s m
anag
emen
tVe
hicl
e m
aint
enan
ceSu
pplie
r de
velo
pmen
t (e
spec
ially
SM
ME)
Thi
s is
in a
dditi
on t
o th
e la
rge
num
ber
of jo
bs h
eld
by p
eopl
e w
orki
ng d
irect
ly fo
r th
e ta
xi/
min
ibus
indu
stry
as
mec
hani
cs,
petr
ol s
tatio
ns a
tten
dant
s, bo
okke
eper
s, an
d ca
r w
ashe
rs.
And
fina
lly, t
here
are
a lo
t of
pe
ople
who
mak
e a
livin
g-se
rvin
g pe
ople
who
use
tax
is.
Taxi
ran
ks o
ften
serv
e as
a
profi
tabl
e lo
catio
n fo
r ha
wke
rs,
food
sta
nds,
and
othe
r sm
all
info
rmal
ret
ail b
usin
esse
s.
7
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
TAXI
BA
NK
(F
INA
NC
ING
)C
omm
erci
al (
finan
cing
inst
itute
s)N
ew b
usin
ess
in t
he fo
rm o
f fra
nchi
ses
DO
T (
LIC
EN
CIN
G /
R
EG
IST
RA
TIO
N)
Adm
inist
ratio
n -
Lice
nse
issue
Prin
ting
EM
SIn
form
atio
n te
chno
logy
JV w
ith E
MS
prov
ider
Har
dwar
e/so
ftwar
e su
pply
Sub
com
pone
nt s
uppl
yIn
stal
latio
n bu
sines
ses
– fit
men
t/re
tro-
fitm
ent
New
bus
ines
s in
the
form
of f
ranc
hise
sM
aint
enan
ce a
nd s
uppo
rt s
truc
ture
sC
ON
SU
LTIN
G
AG
EN
TS
(V
ER
IFY
P
AY
ME
NT
)
Con
sulta
ncy
serv
ices
Con
sulta
nts
Taxi
indu
stry
pla
nnin
gJV
with
scr
appi
ng a
gent
SC
RA
PP
ING
A
DM
INIS
TR
AT
ION
A
GE
NT
S
Rec
yclin
gSc
rap
met
al s
ales
New
bus
ines
s in
the
form
of f
ranc
hise
sLo
gist
ics
supp
ort
Infr
astr
uctu
re d
evel
opm
ent
FAC
ILIT
IES
Build
ing
and
road
s co
nstr
uctio
nC
onst
ruct
ion
serv
ices
Mat
eria
ls su
pply
Con
sulta
ncy
CO
MM
UN
ICA
TIO
NA
dver
tisin
g an
d m
arke
ting
Prin
ting
Phot
ogra
phy
Com
mun
icat
ions
RE
FU
RB
ISH
ME
NT
Engi
ne r
eman
ufac
turin
g
8
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
RAIL
TR
AN
SP
OR
TIN
G
CO
MM
UT
ER
SH
arm
oniz
atio
n (s
ched
ulin
g an
d tim
e ke
epin
g co
uld
save
and
gen
erat
e m
illion
s.)
Onc
e th
e in
fras
truc
ture
is
rest
ored
to
an a
ccep
tabl
e le
vel, a
n on
-goi
ng p
reve
ntat
ive
mai
nten
ance
pro
gram
me
will
be im
plem
ente
d to
mai
ntai
n lin
es a
t an
ope
ratio
nal l
evel
Rep
airs
to
trac
ks a
nd t
rack
ba
llast
; C
lear
ing
poin
ts a
nd b
urie
d ra
ils
(mai
nly
in u
nuse
d sid
ings
); C
oncr
etin
g cr
ossin
gs;
Fenc
ing
whe
re n
eces
sary
; and
O
peni
ng d
rain
s, cu
lver
ts a
nd
brid
ges;
and
Rep
airs
to
build
ings
and
st
ruct
ures
. R
ail a
nd E
quip
men
t M
aint
enan
ce
Infr
astr
uctu
re (
Cab
le t
heft)
Poor
man
agem
ent
Fina
ncin
gEn
try
barr
iers
are
hug
e C
apita
l int
ensiv
e an
d fu
ndin
g O
ld r
ollin
g st
ock
Mon
opso
ny-
the
mar
ket
is do
min
ated
by
gove
rnm
ent
Back
logs
due
to
the
lack
of r
ail
infr
astr
uctu
re a
nd e
xpan
sion
of
netw
ork
FR
EIG
HT
T
RA
NS
FE
RE
NC
ER
epai
rs t
o bu
ildin
gs a
nd
stru
ctur
es.
INF
RA
ST
RU
CT
UR
E
RE
HA
BIL
ITA
TIO
N
Truc
k cl
eani
ng a
nd b
ody
mai
nten
ance
; rou
tine
pain
ting
of r
ollin
g st
ock;
clea
ning
of p
asse
nger
co
ache
s; lo
com
otiv
e w
ashi
ng a
nd c
lean
ing;
whe
el
insp
ectio
ns a
nd lu
bric
atio
n;
rout
ine
mai
nten
ance
, and
he
avy
over
haul
s.M
AIN
TA
NA
NC
E O
F
LIN
ES
Onc
e th
e in
fras
truc
ture
is
rest
ored
to
an a
ccep
tabl
e le
vel, a
n on
-goi
ng
prev
enta
tive
mai
nten
ance
pr
ogra
mm
e w
ill be
im
plem
ente
d to
mai
ntai
n lin
es a
t an
ope
ratio
nal l
evel
.R
AIL
WA
Y S
UP
PO
RT
A
CT
IVIT
IES
The
fina
l ste
p fo
cuse
s on
the
rai
lway
sup
port
ac
tiviti
es s
uch
as t
he
oper
atio
n of
dep
ots,
dist
ribut
ion
of g
oods
, w
areh
ousin
g an
d ca
rgo
colle
ctio
n, e
tc.
Fenc
e re
pairs
and
mai
nten
ance
; tr
ack
wee
ding
, her
bici
de
spra
ying
and
cle
arin
g of
ver
ges;
insp
ectio
n an
d m
aint
enan
ce
of d
rain
s, cu
lver
ts, a
nd b
ridge
s; et
c.
INF
OR
MA
TIO
N
TR
AN
SF
ER
Prov
ide
the
com
mut
ers
the
corr
ect
info
in t
ime.
9
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
AVIATION
RO
TO
R A
ND
FIX
ED
W
ING
AV
IAT
ION
E
QU
IPM
EN
T A
ND
S
ER
VIC
E
Fixe
d w
ing-
a pa
tient
uni
t bo
x, d
esig
n to
hol
d th
e st
retc
her
secu
rely
fast
ened
to
the
box.
Rot
or w
ing-
win
g th
at c
an
chan
ge in
to v
aria
ble
posit
ion
depe
ndin
g on
nee
d of
clie
nt.
The
lack
of i
ndus
try
know
ledg
e an
d sk
ills in
mos
t Bl
ack
peop
le
is th
e ba
rrie
r to
the
indu
stry
.It
requ
ires
a lo
t of
mon
ey t
o en
ter
into
the
indu
stry
.T
his
is on
e in
dust
ry w
here
se
curit
y is
non-
nego
tiabl
e w
hen
prov
idin
g th
e se
rvic
e.
MA
NU
FAC
TU
RIN
G
OF
HE
LIC
OP
TE
RS
Thi
s ta
sk in
volv
es h
ighl
y sp
ecia
lised
and
ski
lled
oper
atio
ns; it
is
mor
e su
itabl
e fo
r pe
ople
with
the
eng
inee
ring
back
grou
nd
to a
ctua
l man
ufac
ture
any
hel
icop
ter.
AV
IAT
ION
T
RA
ININ
G S
ER
VIC
ET
hese
are
ser
vice
s re
nder
ed b
y pr
ofes
siona
ls w
ho s
peci
alise
in
Avi
atio
n; it
is a
tra
nsfe
r of
a c
ombi
natio
n of
kno
wle
dge
and
expe
rienc
e in
the
Avi
atio
n in
dust
ry.
AE
RO
SP
AC
E
IND
US
TR
IAL
D
EV
ELO
PM
EN
T
ZO
NE
IN
JO
HA
NN
ES
BU
RG
The
y w
ere
prep
arin
g bu
sines
s pl
ans
for
subm
issio
n to
th
e So
uth
Afr
ican
gov
ernm
ent
in la
te 2
001,
thi
s ha
s be
en
earm
arke
d to
gen
erat
e in
com
e as
par
t of
the
Gau
teng
Pr
ovin
cial
Gov
ernm
ent’s
Blu
e IQ
initi
ativ
e.
INT
ER
NA
TIO
NA
L
AIR
PO
RT
The
re a
re m
any
num
ber
of s
ervi
ces
prov
ided
in t
he a
irpor
ts
exce
pt b
eing
dire
ctly
invo
lved
with
the
aer
opla
nes,
serv
ices
lik
e pr
ovid
ing
secu
rity
for
the
airp
ort
surr
ound
ing
and
book
ing
serv
ices
, cle
anin
g, ad
vert
ising
, etc
.R
OT
AR
Y T
YP
E
AIR
CR
AF
T E
NG
INE
Thi
s is
a te
mpe
ram
enta
l pie
ce o
f mac
hine
ry in
clin
ed t
o se
ize
or d
isint
egra
te in
a s
pect
acul
ar s
how
er o
f deb
ris.
MIC
RO
LIG
HT
Thi
s re
fers
to
thos
e sm
all a
ircra
fts t
hat
are
not
real
ly m
eant
fo
r tr
ansp
ortin
g pe
ople
but
mea
nt fo
r pl
ayin
g an
d cr
uisin
g ar
ound
on
air. T
hey
do n
ot e
xcee
d 45
0 kg
.A
IRC
RA
FT
SE
AT
S
AN
D P
AR
TT
his
invo
lves
pro
vidi
ng s
ervi
ces
durin
g th
e m
anuf
actu
ring
of
an a
ircra
ft e.
g. lig
ht, s
eats
.
10
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
MARITIME
FR
EIG
HT
AN
D
FO
RW
AD
ING
.
Thi
s in
clud
es t
he s
uppl
y of
food
and
oth
er r
esou
rces
like
oil,
spar
es e
tc.
Entr
y ba
rrie
rs t
o th
e in
dust
ry
are
simila
r to
tho
se in
Avi
atio
n in
dust
ry.
The
re s
tric
t co
nditi
ons
for
trad
ing.
It is
diffi
cult
to o
btai
n fu
ndin
g be
caus
e tr
adin
g ne
eds
huge
am
ount
s of
cap
ital.
CH
AN
DL
ER
ST
his
invo
lves
tra
nspo
rtin
g ca
rgo
from
the
rec
eivi
ng p
lace
to
the
plac
e of
des
tinat
ion
vice
ver
sa, f
or e
xam
ple
colle
ctiv
e go
ods
from
the
shi
p an
d di
strib
utin
g th
em t
o th
eir
resp
ectiv
e de
stin
atio
ns.
SH
IP A
GE
NC
YO
wni
ng a
nd m
anag
ing
of a
shi
p ag
ency
ST
OR
AG
E A
ND
W
AR
EH
OU
SIN
GT
his
busin
ess
incl
udes
sto
ring
of g
oods
tha
t ar
e im
port
ed
from
oth
er c
ount
ries
or t
hose
tha
t ar
e to
be
expo
rted
, it
can
also
incl
ude
gene
ral w
are
hous
ing
for
the
port
and
the
su
rrou
ndin
gs.
MA
RIN
E
EN
GE
ER
ING
Thi
s ca
tego
ry in
clud
es a
ll en
gine
erin
g ac
tiviti
es a
nd s
ervi
ces
that
cou
ld b
e pr
ovid
ed t
o th
e m
arin
es, b
uild
ing,
elec
trify
ing
and
so fo
rth.
SH
IP R
EP
AIR
AN
D
MA
INT
AIN
AN
CE
Ship
rep
air
and
mai
nten
ance
sim
ply
mea
ns p
rovi
ding
som
e fu
ll tim
e se
rvic
e in
the
mar
itim
e in
dust
ry. S
houl
d th
ere
be
a br
oken
par
t, th
en t
he p
eopl
e re
spon
sible
sho
uld
fix t
he
prob
lem
as
part
of m
aint
enan
ce.
PR
OF
FE
SS
ION
AL
S
ER
VIC
EM
ariti
me
like
any
othe
r bu
sines
s in
dust
ry t
hat
is at
the
he
art
the
econ
omy
it re
quire
s hi
ghly
ski
lled
prof
essio
nals
/co
mpa
nies
to
prov
ide
such
uni
que
high
er g
rade
ser
vice
s.M
AR
ITIM
E
CO
NS
ULT
AN
CY
Thi
s is
a pr
ofes
siona
l ser
vice
pro
vide
d in
the
Mar
itim
e in
dust
ry.
11
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
FORWARDING AND CLEARING
PR
OV
IDIN
G
SE
RV
ICE
S
INC
LUD
ING
S
TE
VE
DO
RIN
G
Thi
s is
whe
re lo
adin
g an
d of
fload
ing
of g
oods
in a
nd o
ut t
he
ship
s ta
kes
plac
e.La
ck o
f fun
ding
for
nece
ssar
y eq
uipm
ent
to b
e ob
tain
edLa
ck o
f inf
orm
atio
n to
Bla
ck
peop
le a
bout
the
indu
stry
Diffi
culty
in d
ealin
g w
ith
inte
rnat
iona
l tra
de.
PR
OJE
CT
CA
RG
O
TR
AN
SP
OR
TA
TIO
NT
his
invo
lves
tra
nspo
rtat
ion
of c
argo
s to
the
por
ts a
nd it
m
ay in
clud
e sh
ips
and
plan
es.
PO
RT
AN
D
TE
RM
INA
L
DE
VE
LOP
ME
NT
Thi
s in
volv
es d
evel
opm
ent
of t
erm
inal
s in
eith
er a
irpor
ts o
r se
apor
ts, e
.g. t
he D
urba
n ai
rpor
t .
INT
ER
NA
TIO
NA
L
TR
AD
ING
Inte
rnat
iona
l tra
ding
hap
pens
whe
n on
e de
als
with
th
e in
tern
atio
nal t
rans
actio
ns t
hrou
gh c
argo
sal
e an
d tr
ansp
orta
tion.
CO
NT
AIN
ER
H
AN
DL
ING
Con
tain
ers
that
are
at
port
s ar
e al
so p
art
of b
usin
ess
that
is
viab
le.
CH
AIN
LO
GIS
TIC
ST
his
invo
lves
tra
nspo
rtat
ion
of g
oods
and
ser
vice
s fr
om t
he
poin
t of
orig
in t
o th
e po
int
of fi
nal d
estin
atio
n.
WA
RE
HO
US
ING
War
ehou
sing
invo
lves
pro
vidi
ng a
sto
rage
pla
ce fo
r ca
rgo
that
is w
aitin
g fo
r pi
ck-u
ps; it
mig
ht b
e fr
om a
broa
d or
to
abro
ad.
OP
PO
RT
UN
ITIE
S I
N
CU
RIE
R I
ND
US
TR
YT
his
invo
lves
tra
nspo
rtin
g m
ail f
or c
ompa
nies
incl
udin
g go
vern
men
t an
d th
is ca
n al
so b
e do
ne t
hrou
gh m
any
mod
es
of t
rans
port
dep
endi
ng o
n th
e ne
ed a
nd d
estin
atio
n.
12
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
ROAD FREIGHT
TR
UC
K S
TO
PS
The
re
are
curr
ently
in
itiat
ives
th
at
supp
ort
the
build
ing
of T
ruck
St
ops
on
cert
ain
rout
es
in
the
prov
ince
. T
he
cons
truc
tion
of t
hese
faci
litie
s w
ill pr
ovid
e an
opp
ortu
nity
to
solic
it th
e se
rvic
es o
f SM
ME’
s as
key
sec
tors
on
dist
ribut
ion/
fr
eigh
t tr
ansp
orta
tion
indu
stry
war
ehou
sing
oper
atio
ns a
nd
stan
dard
sto
rage
.
Ove
rcap
acity
in t
he t
ruck
ing
indu
stry
thr
ough
the
yea
r’s
rece
ssio
n re
sulte
d in
sig
nific
ant
capa
city
rat
iona
lizat
ion.
As
the
econ
omy
impr
oved
, dem
ands
fo
r tr
uck
capa
city
incr
ease
d su
bsta
ntia
lly, le
adin
g to
sh
orta
ges
with
in t
he in
dust
ry,
with
ava
ilabi
lity
of d
river
s be
ing
the
limite
d fa
ctor
. Hig
h fu
el c
osts
and
str
ict
regu
lato
ry
envi
ronm
ent
have
pla
ced
addi
tiona
l pre
ssur
e on
the
tr
ucki
ng in
dust
ry. T
he in
dust
ry
maj
or
chal
leng
es a
re a
s fo
llow
s:Lo
w o
pera
ting
mar
gins
- sh
arp
com
petit
ion
Cen
tral
ized
deci
sion
mak
ing
in
a m
obile
wor
k en
viro
nmen
t –
dise
nfra
nchi
sed
mob
ile
wor
kfor
ce (
driv
ers)
con
trol
ling
80 %
of t
he v
aria
ble
cost
sD
river
sho
rtag
e- h
igh
rate
of
driv
er c
hurn
into
oth
er s
ecto
rsSt
ricte
r re
gula
tory
env
ironm
ent
and
com
plia
nce
regi
men
, loss
of
pro
duct
ivity
and
incr
ease
in
oper
atin
g co
sts
Hig
her
driv
er q
ualifi
catio
ns-
high
er c
ost
of h
iring
and
em
ploy
ing
driv
ers
Cap
ital I
nten
sive:
H
igh
capi
tal &
ope
ratio
nal c
osts
an
d hi
gh fu
el c
osts
AP
PA
RE
L
DIS
TR
IBU
TIO
N
The
app
arel
dist
ribut
ion
cons
ists o
f tw
o di
strib
utio
n op
erat
ions
sp
ecia
lizin
g in
the
dist
ribut
ion
of a
ppar
el a
nd fo
otw
ear.
FO
OD
PR
OD
UC
TS
D
IST
RIB
UT
ION
BY
N
AT
ION
AL
CH
AIN
S
Thi
s se
ctor
con
sists
of
larg
e di
strib
utio
n ce
ntre
s op
erat
ed
by
natio
nal
groc
ery
chai
ns
with
di
strib
utio
n op
erat
ions
. T
hese
dist
ribut
ion
cent
res
are
enga
ged
to s
ome
degr
ee in
all
aspe
cts
of v
alue
add
ed d
istrib
utio
n. M
ost o
f the
food
pro
duct
di
strib
utio
n pr
ovid
es si
mpl
e w
areh
ousin
g st
orag
e se
rvic
es, a
nd
othe
r in
volv
ed im
port
ing
and
expo
rtin
g op
erat
ions
, whe
reas
ot
her
prov
ide
pack
agin
g, so
rtin
g, re
pair
and
mod
ifica
tion,
and
tr
ans
load
ing
/cro
ss d
ock
oper
atio
ns w
hile
oth
ers
prov
ide
bar
codi
ng a
nd la
bellin
g se
rvic
es.
DIS
TR
IBU
TIO
N-
LOC
AL
CO
MP
AN
IES
In
add
ition
to
food
pro
duct
s di
strib
utio
n by
nat
iona
l ch
ains
th
ere
is al
so f
ood
dist
ribut
ion
for
loca
l co
mpa
nies
inc
ludi
ng
war
ehou
sing
serv
ices
for
loc
al p
rodu
ce a
nd s
eafo
od. T
his
also
pro
vide
pac
kagi
ng, s
ortin
g an
d la
bellin
g se
rvic
es, s
impl
e st
orag
e, r
epai
rs a
nd m
odifi
catio
n an
d la
stly
tra
ns lo
adin
g an
d al
so in
impo
rt a
nd e
xpor
t ac
tivity
.B
EV
ER
AG
E
DIS
TR
IBU
TIO
NT
his
sect
or e
ngag
ed in
pro
vidi
ng s
impl
e st
orag
e an
d ba
r co
ding
act
iviti
es a
nd o
ther
pro
vide
s la
bellin
g an
d tr
ans
load
ing
activ
ity, s
ortin
g re
pair
and
mod
ifica
tion
and
last
ly
othe
rs o
n im
port
and
exp
ort
whi
le v
ery
few
of t
hem
pr
ovid
e pa
ckag
ing
serv
ices
.P
AP
ER
PR
OD
UC
TS
D
IST
RIB
UT
ION
Pape
r pr
oduc
ts d
istrib
utio
n pr
ovid
es p
acka
ging
, sor
ting
and
tran
s lo
adin
g se
rvic
es th
e se
ctor
also
pro
vide
labe
lling,
stor
age
and
repa
ir an
d m
odifi
catio
n ot
her
also
inv
olve
int
erna
tiona
l tr
ade.
13
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
LUM
BE
R
DIS
TR
IBU
TIO
NT
he
lum
ber
dist
ribut
ion
sect
or
invo
lved
in
tr
ans
load
ing
oper
atio
ns
othe
rs
prov
ide
libel
ling,
pack
agin
g an
d sim
ple
stor
age
and
also
incl
ude
bar
codi
ng, s
ortin
g an
d re
pairs
.
Incr
ease
d in
insu
ranc
e co
sts
Hig
h co
sts
of t
ruck
dow
n tim
e-
need
effe
ctiv
e m
aint
enan
ce
man
agem
ent.
Labo
ur is
sues
ran
k hi
gh o
n th
is lis
t, an
d ev
en s
ome
seem
ingl
y un
rela
ted
item
s su
ch a
s fu
el a
nd
insu
ranc
e co
sts
are
in t
he h
ands
of
driv
ers
to a
fair
exte
nt.
The
maj
or r
easo
ns fo
r dr
iver
di
ssat
isfac
tion
are
qual
ity o
f lif
e iss
ues-
bei
ng a
way
from
ho
me
for
exte
nded
per
iods
, un
pred
icta
ble
sche
dule
s, an
d in
abilit
y to
follo
w
afte
r-wor
k ro
utin
e. D
river
di
senf
ranc
hise
men
t an
d la
ck
of a
car
eer
path
furt
her
com
poun
ds t
he p
robl
em.
Alth
ough
driv
ers
are
bett
er
educ
ated
and
mor
e qu
alifi
ed
than
eve
r be
fore
, the
y ha
ve li
ttle
vo
ice
with
in t
heir
com
pani
es.
For
this
reas
ons,
driv
er t
urno
ver
is hi
gh. W
ith r
ising
fuel
cos
ts,
redu
cing
fuel
con
sum
ptio
n is
anot
her
impo
rtan
t go
al. I
dlin
g tr
ucks
was
te m
uch
fuel
.
PR
OD
UC
TS
D
IST
RIB
UT
ION
The
ste
el p
rodu
cts
dist
ribut
ion
cons
ists
of t
he d
istrib
utio
n ac
tiviti
es, d
istrib
utio
n of
ste
el m
anuf
actu
ring
and
also
ste
el
prod
ucts
the
n th
e ot
her
incl
ude
pack
agin
g, so
rtin
g, st
orag
e an
d re
pair
and
also
impo
rt a
nd e
xpor
t ac
tiviti
es.
GE
NE
RA
L
CO
MM
OD
ITY
D
IST
RIB
UT
ION
Thi
s se
ctor
of t
he d
istrib
utio
n in
dust
ry is
the
larg
est
in t
erm
s of
the
num
ber
of fi
rms
enga
ged
in t
he d
istrib
utio
n of
gen
eral
co
mm
oditi
es. T
hese
com
mod
ities
ran
ge f
rom
sm
all
parc
el
serv
ices
to
elec
tron
ic t
o au
to p
arts
, coa
l chr
ome,
etc
.
ROAD FREIGHT
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
ROAD FREIGHT
TR
UC
K S
TO
PS
The
re
are
curr
ently
in
itiat
ives
th
at
supp
ort
the
build
ing
of T
ruck
St
ops
on
cert
ain
rout
es
in
the
prov
ince
. T
he
cons
truc
tion
of t
hese
faci
litie
s w
ill pr
ovid
e an
opp
ortu
nity
to
solic
it th
e se
rvic
es o
f SM
ME’
s as
key
sec
tors
on
dist
ribut
ion/
fr
eigh
t tr
ansp
orta
tion
indu
stry
war
ehou
sing
oper
atio
ns a
nd
stan
dard
sto
rage
.
Ove
rcap
acity
in t
he t
ruck
ing
indu
stry
thr
ough
the
yea
r’s
rece
ssio
n re
sulte
d in
sig
nific
ant
capa
city
rat
iona
lizat
ion.
As
the
econ
omy
impr
oved
, dem
ands
fo
r tr
uck
capa
city
incr
ease
d su
bsta
ntia
lly, le
adin
g to
sh
orta
ges
with
in t
he in
dust
ry,
with
ava
ilabi
lity
of d
river
s be
ing
the
limite
d fa
ctor
. Hig
h fu
el c
osts
and
str
ict
regu
lato
ry
envi
ronm
ent
have
pla
ced
addi
tiona
l pre
ssur
e on
the
tr
ucki
ng in
dust
ry. T
he in
dust
ry
maj
or
chal
leng
es a
re a
s fo
llow
s:Lo
w o
pera
ting
mar
gins
- sh
arp
com
petit
ion
Cen
tral
ized
deci
sion
mak
ing
in
a m
obile
wor
k en
viro
nmen
t –
dise
nfra
nchi
sed
mob
ile
wor
kfor
ce (
driv
ers)
con
trol
ling
80 %
of t
he v
aria
ble
cost
sD
river
sho
rtag
e- h
igh
rate
of
driv
er c
hurn
into
oth
er s
ecto
rsSt
ricte
r re
gula
tory
env
ironm
ent
and
com
plia
nce
regi
men
, loss
of
pro
duct
ivity
and
incr
ease
in
oper
atin
g co
sts
Hig
her
driv
er q
ualifi
catio
ns-
high
er c
ost
of h
iring
and
em
ploy
ing
driv
ers
Cap
ital I
nten
sive:
H
igh
capi
tal &
ope
ratio
nal c
osts
an
d hi
gh fu
el c
osts
AP
PA
RE
L
DIS
TR
IBU
TIO
N
The
app
arel
dist
ribut
ion
cons
ists o
f tw
o di
strib
utio
n op
erat
ions
sp
ecia
lizin
g in
the
dist
ribut
ion
of a
ppar
el a
nd fo
otw
ear.
FO
OD
PR
OD
UC
TS
D
IST
RIB
UT
ION
BY
N
AT
ION
AL
CH
AIN
S
Thi
s se
ctor
con
sists
of
larg
e di
strib
utio
n ce
ntre
s op
erat
ed
by
natio
nal
groc
ery
chai
ns
with
di
strib
utio
n op
erat
ions
. T
hese
dist
ribut
ion
cent
res
are
enga
ged
to s
ome
degr
ee in
all
aspe
cts
of v
alue
add
ed d
istrib
utio
n. M
ost o
f the
food
pro
duct
di
strib
utio
n pr
ovid
es si
mpl
e w
areh
ousin
g st
orag
e se
rvic
es, a
nd
othe
r in
volv
ed im
port
ing
and
expo
rtin
g op
erat
ions
, whe
reas
ot
her
prov
ide
pack
agin
g, so
rtin
g, re
pair
and
mod
ifica
tion,
and
tr
ans
load
ing
/cro
ss d
ock
oper
atio
ns w
hile
oth
ers
prov
ide
bar
codi
ng a
nd la
bellin
g se
rvic
es.
DIS
TR
IBU
TIO
N-
LOC
AL
CO
MP
AN
IES
In
add
ition
to
food
pro
duct
s di
strib
utio
n by
nat
iona
l ch
ains
th
ere
is al
so f
ood
dist
ribut
ion
for
loca
l co
mpa
nies
inc
ludi
ng
war
ehou
sing
serv
ices
for
loc
al p
rodu
ce a
nd s
eafo
od. T
his
also
pro
vide
pac
kagi
ng, s
ortin
g an
d la
bellin
g se
rvic
es, s
impl
e st
orag
e, r
epai
rs a
nd m
odifi
catio
n an
d la
stly
tra
ns lo
adin
g an
d al
so in
impo
rt a
nd e
xpor
t ac
tivity
.B
EV
ER
AG
E
DIS
TR
IBU
TIO
NT
his
sect
or e
ngag
ed in
pro
vidi
ng s
impl
e st
orag
e an
d ba
r co
ding
act
iviti
es a
nd o
ther
pro
vide
s la
bellin
g an
d tr
ans
load
ing
activ
ity, s
ortin
g re
pair
and
mod
ifica
tion
and
last
ly
othe
rs o
n im
port
and
exp
ort
whi
le v
ery
few
of t
hem
pr
ovid
e pa
ckag
ing
serv
ices
.P
AP
ER
PR
OD
UC
TS
D
IST
RIB
UT
ION
Pape
r pr
oduc
ts d
istrib
utio
n pr
ovid
es p
acka
ging
, sor
ting
and
tran
s lo
adin
g se
rvic
es th
e se
ctor
also
pro
vide
labe
lling,
stor
age
and
repa
ir an
d m
odifi
catio
n ot
her
also
inv
olve
int
erna
tiona
l tr
ade.
14
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
MIS
CE
LL
EN
EO
US
D
IST
RIB
UT
ION
O
PE
RA
TIO
NS
The
Misc
ella
neou
s Dist
ribut
ion
Ope
ratio
ns c
onsis
t of h
andl
ing
the
rang
e of
car
goes
, prim
arily
dry
bul
k an
d liq
uid
bulk
car
go.
Thi
s al
so in
clud
es/ p
rovi
des
tran
s lo
adin
g se
rvic
es a
nd s
tora
ge
serv
ices
. Thi
s se
ctor
doe
s no
t pr
ovid
e pa
ckag
ing
serv
ices
or
repa
ir or
mod
ifica
tion
serv
ices
. Ver
y fe
w fi
rms
enga
ged
in
inte
rnat
iona
l tra
de
Flee
t op
erat
ors
also
face
cap
ital
cost
s, tr
uck
mai
nten
ance
and
do
wnt
ime
cost
s, in
sura
nce
cost
s, an
d th
e co
sts
of b
ack-
offic
e fu
nctio
ns s
uch
as r
ecor
d ke
epin
g. Sh
arp
com
petit
ion
tran
slate
s in
to lo
w m
argi
ns. I
n a
toug
h pr
icin
g en
viro
nmen
t, ef
ficie
nt o
pera
tion
is cr
itica
l as
the
re is
no
room
for
unne
cess
ary
cost
s. Fl
eet
mus
t m
axim
ize e
ffici
ency
in a
ll as
pect
s of
the
ir op
erat
ions
to
rem
ain
com
petit
ive
and
profi
tabl
e.Lo
w le
vels
of B
lack
pa
rtic
ipat
ion
in O
wne
rshi
p &
C
ontr
ol, M
anag
emen
t, Sk
ills
Dev
elop
men
t, Pr
ocur
emen
t an
d SM
ME
deve
lopm
ent
Cur
rent
Em
pow
erm
ent
Mod
els
Ow
ner
driv
er is
sues
Fuel
and
hig
h in
tere
st r
ates
Skills
and
HR
DO
ver
regu
latio
ns m
ay b
e an
im
pedi
men
t to
BEE
initi
ativ
esH
IV /
AID
S iss
ues
OW
NE
R D
RIV
ER
E
MP
OW
ER
ME
NT
P
RO
GR
AM
ME
SAB
Ow
ner
driv
er p
rogr
amm
e so
on t
o be
cal
led
dist
ribut
or
oper
ator
sO
R T
ambo
Indu
stria
l Dev
elop
men
t Z
one
Ang
lo Z
imel
e tr
ucki
ng e
mpo
wer
men
t pr
ogra
mm
eM
ondi
bus
ines
s pa
per
Sout
h A
fric
a•
Supp
ly C
hain
Man
agem
ent
oper
ator
s•
Logi
stic
s co
mpa
nies
•C
ross
Bor
der
Ope
ratio
ns•
Parc
el D
eliv
ery
Serv
ices
•M
otor
ferr
y C
ompa
nies
•C
ash
In t
rans
it C
ompa
nies
ROAD FREIGHT
15
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
BUS
JOIN
T V
EN
TU
RE
Join
ven
ture
– a
re
norm
ally,
uni
ncor
pora
ted
bodi
es, r
egar
ded
in la
w a
s pa
rtne
rshi
ps in
whi
ch t
he
part
ners
are
join
tly a
nd
seve
rally
liab
le fo
r th
e ac
ts,
negl
ects
and
om
issio
ns o
f th
e pa
rtne
rshi
p. Is
ven
ture
no
rmal
ly fo
rmed
ad-
hoc
for
a sp
ecifi
c pr
ojec
t, in
whi
ch t
wo
or m
ore
part
ies
shar
e th
e ob
ligat
ions
, risk
s an
d re
war
ds.
The
bus
indu
stry
is o
ne o
f th
ose
indu
strie
s w
ith it
s ow
n un
ique
ope
ratio
ns a
nd
cate
gorie
s, th
e fo
llow
ing
are
clas
sifica
tions
of t
he in
dust
ry:
Priv
ate
Bus
Ope
rato
rs-
Subs
idise
d op
erat
ions
Para
stat
als
and
Stat
e O
wne
d Bu
s O
pera
tions
– S
ubsid
ised
oper
atio
nsIn
terc
ity C
oach
Ope
ratio
ns-
non
subs
idise
d To
ur &
Cha
rter
Ope
ratio
ns -
no
n su
bsid
ised
Long
Dist
ance
Ope
ratio
ns -
no
n su
bsid
ised
Cro
ss-
Bord
er B
us a
nd To
ur
oper
ator
s -
non
subs
idize
dFu
ndin
g m
echa
nism
s, e.
g. ve
ndor
fina
nce
and
earn
-in
mod
els,
to fa
cilit
ate
fund
ing
for
BEE
com
pani
es.
Mon
th t
o m
onth
Inte
rim
Con
trac
ts t
hat
com
plic
ate
inve
stm
ents
and
em
pow
erm
ent
deal
s;A
n in
secu
re la
bour
forc
e –
not
only
from
a t
ende
ring
poin
t of
vie
w (
job
loss
es)
but
also
th
roug
h po
licy
inde
cisio
n;U
nres
olve
d iss
ues
faci
ng le
arne
r tr
ansp
ort
prov
ision
; and
Insu
ffici
ent
fund
s to
fund
eith
er
the
cont
ract
or
nego
tiate
d co
ntra
ct s
yste
mR
ecap
italis
atio
n of
veh
icle
s of
op
erat
ors
outs
ide
the
cont
ract
sy
stem
Hig
h in
sura
nce
cost
Hig
h fu
el a
nd t
oll g
ates
cos
t
SU
B-C
ON
TR
AC
TIN
GSu
b-co
ntra
ctin
g -
this
mea
ns
that
sub
cont
ract
ing
of c
erta
in
rout
es t
o sm
all o
pera
tors
.C
OO
PE
RA
TIV
ES
F
TH
AN
D
AS
SO
CIA
CIT
ION
S
Coo
pera
tives
/col
lect
ive
ente
r-is
an a
uton
omou
s as
soci
atio
n of
per
sons
who
vol
unta
rily
join
tog
ethe
r to
mee
t th
eir
econ
omic
, soc
ial a
nd c
ultu
ral
need
s an
d as
pira
tion
thro
ugh
the
form
atio
n of
a jo
intly
ow
ned
ente
rpris
e an
d de
moc
ratic
ally
con
trol
led
ente
rpris
e.
16
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
BUS
TW
ININ
GTw
inin
g –w
here
larg
e co
mpa
ny a
ct a
s m
ento
r to
sm
all c
ompa
ny it
can
also
in
clud
e st
rate
gic
allia
nces
.O
UT
SO
UR
CIN
GO
utso
urci
ng S
peci
alist
m
aint
enan
ce, e
quip
men
t m
anuf
actu
ring
and
supp
liers
to
the
Indu
stry
and
fuel
.M
AIN
TA
NA
NC
EBu
s w
ashi
ng, b
us c
lean
ing.
SC
HO
LA
R
TR
AN
SP
OR
TTr
ansp
ortin
g sc
hola
rs t
o sc
hool
s.
SE
T A
SID
E
CO
NT
RA
CT
SSe
t as
ide
- sp
ecifi
ed c
ontr
acts
are
set
asid
e fo
r bi
ddin
g on
ly
by q
ualif
ying
ent
erpr
ises
(typ
ical
ly s
mal
l, bla
ck, w
omen
ow
ned
ente
rpris
es),
and
from
whi
ch la
rge
esta
blish
ed c
ompa
nies
are
pr
eclu
ded
from
bid
ding
.
17
Su
b-s
ect
ors
Act
ivit
ies
Op
po
rtu
nit
ies
De
tail
sT
hre
ats
PUBLIC SECTOR
TE
ND
ER
ST
he G
over
nmen
t iss
ue t
ende
rs in
diff
eren
t m
ediu
ms
of
com
mun
icat
ion
that
incl
udes
ten
der
bulle
tin, n
ewsp
aper
s, no
tices
and
so
fort
h. In
thi
s ca
tego
ry t
he s
tate
ow
ned
ente
rpris
es a
re a
lso in
clud
ed a
nd t
hey
have
spe
cial
tre
atm
ent
for
the
Blac
k ow
ned
SMM
Es.
The
is a
ted
ious
pro
cess
for
appl
icat
ion
for
gove
rnm
ent
tend
ers.
It ta
kes
long
for
the
who
le
tend
er p
roce
ss t
o be
co
mpl
eted
.Te
nder
s fr
om t
he s
tate
ow
ned
ente
rpris
es a
re n
ot e
asily
ac
cess
ible
.
PR
OV
INC
IAL
T
EN
DE
RS
The
re a
re p
rovi
ncia
l ten
ders
adv
ertis
ed in
the
Pro
vinc
es a
nd
som
e of
the
req
uire
men
t ne
eds
to b
e m
et fo
r in
tere
sted
pa
rtie
s to
ten
der
succ
essf
ully
for
thos
e te
nder
s.M
UN
ICIP
AL
T
EN
DE
RS
Mun
icip
al t
ende
rs a
re p
ut a
t m
unic
ipal
not
ice
boar
ds a
nd o
n lo
cal n
ewsp
aper
s.S
PE
CIF
IC
OR
GA
NIS
AT
ION
ST
here
are
spe
cific
gov
ernm
ent
orga
nisa
tions
tha
t as
sist
busin
esse
s to
gro
w a
nd e
nhan
ce p
rofit
imag
ines
. The
se a
re
the
like
of U
mso
bom
vu, K
hula
, Dep
artm
ent
of T
rade
and
In
dust
ry, e
tc.
GE
NE
RA
L T
EN
DE
RS
S
ITE
ST
he g
ener
al t
ende
r sit
e fo
r go
vern
men
t te
nder
s is
ww
w.
trea
sury
.gov
.za
whe
re t
he t
ende
r bu
lletin
is o
btai
nabl
e.
18
CONCLUSION
There are a number of opportunities in transport industry however it is not always easy for
Black SMMEs to take advantage of the situation due to their lack of resources and lack of
information. The codes of good practice are meant to ease the situation whereby financial
institution feels unsecured to lend money to SMMEs. Currently government has made effforts
to ensure that payment period of suppliers especially small business become quicker as part
of sustaining their businesses and grow their income. The service delivery of black SMME’s has
come into question in recent times and such low standard need to be addressed thoroughly
so as to enhance the quality of service(s) and image of black SMME’s.
Again we encourage small black business to register their companies in different databases
within transport sector for them to get opportunities for business, other than waiting for
uncertain situation without taking an initiative.
19
Notes
20
Notes
Private Bag X193, Pretoria, 0001Forum Building, c/o Bosman & Struben Streets,
Pretoria - Tel +27 12 309 3172 - Fax +27 12 328 5926www.transport.gov.za