South Africa Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South Africa Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

· The South Africa Freight and Logistics Market are estimated to grow at a CAGR of approximately 4% during the forecast period.

· South Africa’s total logistics volumes rose 3.1% in July 2019 compared to 2018. This recovery is attributed to a more stable electricity supply from Eskom (Electricity supply commission) and largely driven by the country’s land transport sector, which is up 4.6% in 2018. the volume of freight transported by road in South Africa increased by 9.5% in 2018 but decreased by 4.3% in the Q1 2019.

· In order to achieve a spark in economic growth during 2017-2018, the government of South Africa has made significant investments in upgrading its aging road infrastructure. This, in turn, is likely to boost the logistics market by 2020. South Africa’s efforts in increasing exports of goods and services in the region and positioning the country as a hub for African regional and global engagement through trade agreements will necessitate complementary measures such as improved transportation and regulation for increased trade.

Key Market TrendsIncrease in Exports:

South Africa had a small trade surplus of USD 998 million for 2018, with total merchandise exports of USD94.4 billion and imports of USD93.4 billion. South Africa’s top trading partners for 2018 are China, Germany, the United States, India, and the United Kingdom. The main products exported are platinum, coal, motor cars, gold, and iron ore. The main import products are crude oil, petroleum oils (not crude), motor cars, and telephone sets (including cell phones). South African vehicle exports reached a record high in 2019, partially offsetting a decline in domestic vehicle sales.

As technology advances, the importance of the internet and the digital age will see continued dominance of the tertiary sectors, which provides products and services to all other industries in the economy. This is the context in which industrial and logistics accommodation is developing in the economy. This has contributed to a growing demand for logistics and warehousing which continues to expand.

Increase in retail Sales:

One of Africa’s largest and most affluent markets, South Africa has a well-developed retail sector, including a number of major domestic players. South African households continue to face challenges due to economic pressures that have resulted in decreases in disposable income, this is reflected by the low sales growth levels recorded in the last two years.

A move to centralized distribution has been an important trend in recent years, with new warehouses and logistics centers built in major cities such as Johannesburg, Cape Town, and Durban.

Transport routes and supply chains can best handle the booming e-commerce sector with the help of smart software and the latest infrastructure. Experts from Körber Supply Chain, together with partners like Fortna and iWMS, are working for retailers worldwide. They have helped to set up a logistics center in South Africa that is one of the most modern on the continent.

As the market becomes more competitive, shopping centers will be driven to provide a varied offering to a more discerning consumer which will maximize footfall, dwell time, and spending per trip; ultimately positioning the center for outperformance in the overall market.

Competitive Landscape

The report covers the major players operating in the South Africa Freight and Logistics. The market is competitive due to the presence of domestic as well as international freight and logistics companies. The market is fragmented and is expected to grow during the forecast period due to the increase in retail sales and exports as well, this trend would continue in the coming years.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
DACHSER SOUTH AFRICA (PTY) LTD
ORANGE PALLET (PTY) LTD
IMPERIAL MANAGED LOGISTICS (PTY) LTD
KUEHNE AND NAGEL (PTY) LTD
FEDEX EXPRESS SOUTH AFRICA (PTY) LTD
MEGAFREIGHT SERVICES (PTY) LTD
CHEP
F H BERTLING LOGISTICS (PTY) LTD
CFR FREIGHT SOUTH AFRICA (PTY) LTD
TOLL GLOBAL FORWARDING (SA) (PTY) LTD
BOPANG DISTRIBUTION AND LOGISTICS (PTY) LTD
HENEWAYS FREIGHT SERVICES (PTY) LTD
FPT GROUP (PTY) LTD
GREEN JACKET FREIGHT (PTY) LTD
LOCAL FREIGHT SERVICES (PTY) LTD*

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