South Africa: Logistics and Infrastructure

The American Chamber of Commerce

Regional Trade Forum

9 June 2016

FreightPartner : representing SAAFF

SAAFF – Advocacy Hub

Sea Carriers

SAAFF

Ports

Customs

Air carriers

NRCS

CAA

Members

Other Associations

Industry changes

FIATA

SADC

Donor Funders

Govt Depts. Learning

About SAAFF

www.saaff.org.za

SAAFF, the South African Association of Freight Forwarders is a powerful

advocate on all matters affecting the diverse scope of the Forwarding and

Customs Clearing sector.

Freight Forwarders facilitate trade by providing value adding services to

importers and exporters by enabling a compliant and efficient passage of

goods into and out of, the country.

South Africa Logistics and Infrastructure

So, where do we start?

First, with what we do not have to contend with…

www.bluefletch.com

Case Study: Kazangula: Botswana to Zambia

Crossing the Zambezi River – could be the new preferred border on the N_S corridor

Current capacity: 9 to 18 Trucks per hour.

Projected Capacity : 100 if a OSB is installed

The road to the Kazanugula Ferry Crossing –

Crossing the Zambezi River, 1 kilometre river crossing

Loading Operations at Kazangula:

Three Ferries – two berths

Site of the Kazangula Bridge – US165m

A remote area with limited infrastructure

The Port of Durban

www.fad.co.za

The Port of Durban Africa’s 2nd Busiest

2nd busiest in Africa

Busiest in SSA

www.africabusinesscentral.com

Southern Africa’s premier gateway

Major investments to expand the Port:

Berth expansion

Deepening to 16m

Major Airports of South Africa

OR Tambo International Airport

Africa's biggest and busiest airport,

19 million passengers a year.

Capacity for 28 million passengers

50 percent of National throughput.

OR Tambo International Airport - Cargo

Capacity for 650 000 tonnes per annum

All major freighter carriers

Importantly, exporters benefit from ‘backhaul’ low cost rates.

Key Roads

www.sacarrental.co.za

CPT - JNB: 1405 km

CPT – DBN: 1660km

CPT – EL: 1042km

CPT - PE: 756km

CPT – Bloem: 998km

CPT – Upin: 821km

JNB - DBN: 598km

JHB - EL: 992km

JHB – Polok: 331km

Vast Distances,

Good network

Roads

With acknowledgements to CILTSA: Mauritius Summit 2016

Rail

Gautrain: 2016: One of the country’s rail success stories

Rail

With acknowledgements to Transnet Freight Rail

Rail

With acknowledgements to CILTSA: Mauritius Summit 2016

Rail - Regional

With acknowledgements to CILTSA: Mauritius Summit 2016

7 year plan from 2012:

R221 Billion.

Springbok flats

Infrastructure

Waterberg Feeder

Coal Backbone

System.

Coal Export Line.

Swazi Link System:

Lephalale Musina

Lothair Maputo

Komatipoort Ermelo

Ogies.

Pyramid

Broodsnyersplaas

Richards Bay CFM

New

Rail – Development Projects

Dar Es Salaam

Lillongwe Blantyre

Johannesburg

Durban

Cape Town

Beira

Maputo

Walvis Bay

Luanda

Lobito

Windhoek

Nacala

SADC Corridors

Ndola

Harare

Lubumbashi

Gaborone

Maun

Logistics Performance Index 2014 - Short

The logistics performance (LPI) is the weighted average of the country scores on the six

key dimensions:

Efficiency of the clearance process

Quality of trade and transport related infrastructure

Ease of arranging competitively priced shipments;

Competence and quality of logistics services

Ability to track and trace consignments;

Timeliness of shipments in reaching destination within the scheduled or expected

delivery time.

Logistics Performance Index 2014 - Short

The logistics performance (LPI) is the weighted average of the country scores on the six

key dimensions:

Efficiency of the clearance process

Quality of trade and transport related infrastructure

Ease of arranging competitively priced shipments;

Competence and quality of logistics services

Ability to track and trace consignments;

Timeliness of shipments in reaching destination within the scheduled or expected

delivery time.

Logistics Performance Index 2014 - Short

The logistics performance (LPI) is the weighted average of the country scores on the six

key dimensions:

Efficiency of the clearance process

Quality of trade and transport related infrastructure.

Ease of arranging competitively priced shipments;

Competence and quality of logistics services

Ability to track and trace consignments;

Timeliness of shipments in reaching destination within the scheduled or expected

delivery time.

34

42

38

25 24

41

33

OVERALL LPI RANK CUSTOMS INFRASTRUCTURE INTERNATIONAL SHIPMENTS

LOGISTICS QUALITY AND COMPETENCE

TRACKING AND TRACING TIMELINESS

World Bank LPI Ranking: 2014 South Africa

overall LPI rank Customs Infrastructure International shipments Logistics quality and competence Tracking and tracing Timeliness

3.43 2.81 2.81 2.76 2.66 2.57 2.54 2.49 2.46 2.37 2.34 2.33 2.23 1.88

34

73 74 80

93

107 112

120 123

133 137 138

147

159

ZAF MWI KEN RWA NAM BDI AGO BWA ZMB LSO ZWE TZA MOZ ZAR

SOUTH AFRICA MALAWI KENYA RWANDA NAMIBIA BURUNDI ANGOLA BOTSWANA ZAMBIA LESOTHO ZIMBABWE TANZANIA MOZAMBIQUE CONGO, DEM. REP.

SADC : LPI Ranking of SADC Countries as at 2014 Red = Landlocked country

score rank

Summarising

South Africa has world class infrastructure;

It is continually re-investing in key infrastructure;

It functions well with a most a dominant position in the LPI rankings;

It holds gateway status to most of the inland SADC States.

It is working hard to retain its premier gateway status.

Traders have choice and efficiency for the most part.

Can be proud that it can hold its own against larger trading countries.

Thank You