6th SOL Survey

Council for Scientific and Industrial Research (CSIR)
Meiring Naudé Road, Brummeria, Pretoria, South Africa
Tel: +27.12.841 2911 Fax: +27.12.349 1153 http://www.csir.co.za

Joint press release by the Council for Scientific and Industrial Research (CSIR) and IMPERIAL Logistics, in partnership with Stellenbosch University

For release: 16 March 2010 at 12:00

Driving Sustainable Logistics Unlocks Economic Growth for South Africa

Johannesburg, South Africa, 16 March 2010 – The value that logistics adds to the South African economy, contributing to the country’s global competitiveness and sustainability should be greater than the costs. This is according to the 6th State of Logistics™ survey, the authoritative study on logistics in the country as published today by the Council for Scientific and Industrial Research (CSIR), IMPERIAL Logistics and Stellenbosch University.

“Global pressures remain to reduce logistics costs, while increasing emphasis is being placed on providing quality service and adding value. Furthermore, in line with global trends, the drive towards a more sustainable logistics system is gaining prominence.” says Hans Ittmann, CSIR Built Environment Executive Director.

He adds that this year’s edition, themed ‘logistics value and costs – driving macro and micro-economic change towards global competitiveness and sustainability’, emphasises the critical economic value that should be derived from logistics. “The real mitigation of risk and realising sustainable logistics solutions can only, however, be generated through effective collaboration between private and public sectors, process improvements and structural changes,” Ittmann says.

The survey finds that though South Africa saw an increase of 6.9% in logistics costs compared to the previous year’s R317 billion, 2008 costs are at their lowest since 2004, totalling R339 billion or 14.7% of GDP. However, when compared to other countries’ logistics costs, e.g. the USA’s 9.4% (2008), domestic costs remain too high.

During 2008, the recessionary global oil price positively impacted industry costs, whereas SA’s higher-than-normal transport demand and poor network configuration, rising bad road conditions, radically increased storage and inventory costs, need for increased funding to bolster capacity and consistently increasing road corridor traffic had a negative effect. For example, the percentage of bad roads in SA’s secondary road network increased from 8% (1998) to 20% (2008) with significant deliveries routed via this road network.

“IMPERIAL Logistics is continuously working with our customers to implement sustainable solutions and, for me, that’s one of the positive things that one has to take out of the recession,” says Marius Swanepoel, CEO of IMPERIAL Logistics. “Our customers and companies in general are increasingly more interested to find better ways of doing things, which allows us to work closer with them to create more sustainable and cost effective solutions. It is more about taking waste out of the supply chain and I think this is what we’re seeing now.”

According to Dr. Jan Havenga, Director at the Stellenbosch University Centre for Supply Chain Management, certain aspects of South Africa’s logistics cost situation still require significant attention. However, it is heartening to note that wide consensus exists among logistics stakeholders on many important initiatives.

Havenga says, “The challenge however remains: Although consensus exists around issues such as regeneration and use of rail capacity, not enough has been done yet. The competitiveness and sustainability of South Africa’s logistics system remain at risk and moving from consensus to action is long overdue. Public-Private Partnerships is a key success factor.”

Dr Sibusiso Sibisi, President and CEO of the CSIR, concurs and adds that, “The State of Logistics™ survey highlights the importance of the critical area of logistics and supply chain management in the global market. Since its 2004 maiden issue, it has aimed to provide a comprehensive picture of the state of logistics in South Africa through adopting a collaborative approach to knowledge generation. We believe the surveys open the way for further discussions, interactions and dialogue on various logistics and supply chain management issues.”

“This publication has become one of the premier references for logistics in South Africa through benchmark-driven research and long-term partnerships with IMPERIAL Logistics and Stellenbosch University,” concludes Ittmann.

The 6th State of Logistics™ survey can be accessed online at www.csir.co.za/sol or www.imperiallogistics.co.za/sol.

For further information or comment, please contact:

Council for Scientific and Industrial Research (CSIR)
Hans Ittmann, Executive Director, CSIR Built Environment
Tel: +27 12 841 3051 Mobile: +27 82 451 1691 Email: hittmann@csir.co.za

IMPERIAL Logistics
Abrie de Swardt, Marketing Director
Tel: +27 11 821 5500 Mobile: +27 83 625 1158 Email: abrieds@il.co.za

Stellenbosch University
Dr Jan Havenga, Director: Centre for Supply Chain Management, Department of Logistics
Tel: +27 21 808 3981 Mobile: +27 84 588 8884 Email: janh@sun.ac.za

Notes to Editor

About the State of Logistics™ Survey
The aim of the State of Logistics ™ survey is to provide a comprehensive picture of the state of logistics in South Africa. Logistics involves a whole array of activities including transport, warehousing, cargo consolidation, cross-border distribution and clearance, and information technology such as payment systems. A wide spectrum of public and private organisations and agents are involved in these activities. A CSIR trademark, the State of LogisticsTM is an initiative of the CSIR, in collaboration with Stellenbosch University and IMPERIAL Logistics. All editions of the survey are available at www.csir.co.za/sol or www.imperiallogistics.co.za/sol.

About the Council for Scientific and Industrial Research (CSIR)
The CSIR is one of the leading research and development (R&D), technology and innovation institutions in Africa, with a track record spanning 65 years. Structured to manage the entire research and innovation value chain, the CSIR strives for excellence in all its endeavours in order to improve the quality of life of South Africa’s people and to increase the global competitiveness of South African industry. For more information, please visit www.csir.co.za or call +27 12 841 2000. The CSIR - our future through science.

About IMPERIAL Logistics
IMPERIAL Logistics is the leading logistics and supply chain management company in southern Africa with an international footprint in Europe. IMPERIAL Logistics Southern Africa provides customised value-added logistics services and supply chain solutions to blue chip customers in almost every industry. IMPERIAL Logistics is a division of the IMPERIAL Group and the southern African division is home to more than 70 operating companies, categorised into four key divisions, namely Transport and Warehousing, Consumer Products, Specialised Freight and Integration Services. IMPERIAL Logistics International focuses on European markets and comprises four operating units, namely Panopa Logistik, neska, Imperial Reederei and Brouwer Shipping. For further information, please visit www.imperiallogistics.co.za.

About Stellenbosch University
The Centre for Supply Chain Management is a research centre within the Department of Logistics at the University of Stellenbosch, creating value for global and local organisations and businesses. The Centre for Supply Chain Management facilitates a symbiotic relationship between the academic development of supply chain management theory and the practical application thereof. It provides clients and the community with cost-effective research solutions in the field, but at the same time produces results that are publishable and contribute to the discipline. For more information, please visit http://academic.sun.ac.za/CSCM/ or call +27 21 808 3981.