LOGISTICSCan the freight
LOGISTICSCan the freight industryreduce emissions?According to Bidvest International Logistics (BIL), solutions must come from both the road and railfreight sectors.Rampant cable theft and destruction across South Africa’sbeleaguered rail network may drive growth in road freight.However, that growth is coming at a high environmental cost.Earlier this year, Rirhandzu Mashava, the Department ofTransport’s Deputy Director General for Transport Planning, revealedthat between 2017/18 and 2022/23, about a third of long-distancefreight had moved from rail to road.The country’s rail infrastructure woes manifest at locations likeDurban Container Terminal Pier 2. According to figures released bythe South African Association of Freight Forwarders/Business UnitySouth Africa, during a single week in 2024, the site had 65 over-borderunits with a dwell time of 22 days.Supply chains can ill-afford such delays, hence the huge shift totransporting goods by truck. This is despite the rising cost of fuel anda need for more skilled personnel within the sector, not to mentionthat deteriorating infrastructure and poor road conditions put driversand vehicles at risk.From an environmental perspective, the situation is far from ideal.Transport is the third-largest emitting sector in South Africa, withalmost 55 megatons of CO2 emissions contributing more than 10%to the country’s national gross emissions. Road transport accountsfor 91.2% of that percentage.While the Department of Transport set in motion a Green TransportStrategy in 2018 to minimise the adverse impact of transport on theenvironment by reducing emissions by 5% annually, high volumes ofgreenhouse gas are still being pumped into the atmosphere.The question then becomes what else can be done to reduceemissions. According to Bidvest International Logistics (BIL), solutionsmust come from both the road and rail freight sectors.BIL’s Overland Logistics Director Marcus Ellappan suggests some“quick wins” in reducing CO2 emissions, including policies aroundbehaviour changes to promote more efficient driving habits andoptimising routes with the use of various software platforms.“Maintaining vehicles properly and upgrading to more fuelefficientvehicles can also reduce fuel consumption,” he says. Ellappannotes that electric trucks, compressed-natural-gas vehicles and amove to Euro 5 engines (where diesel vehicles are equipped withparticulate filters to trap tiny soot particles) and Euro 6 engines (themandatory use of selective catalytic reduction for diesel cars to reducenitrous oxide emissions) are all viable options.Such measures will benefit road-freight companies in several ways,including environmental, social and governance (ESG) wins, reducedcarbon tax and reduced maintenance, resulting in less downtime,noise pollution and air pollution.32 | www.opportunityonline.co.za
BIL Business Development Executive NtombimpelaNong supports the efforts of government and Transnetto reform rail and to grow capacity. The reductionin rail capacity has resulted in increased reliance onroad transport and put additional pressure on roadinfrastructure and the environment.“This can lead to higher transport costs, reducedcompetitiveness of South African goods and missedeconomic opportunities,” says Nong.However, Nong believes the rail-freight industrycan be crucial in driving a turnaround. She suggeststhat future investment on the railways should focuson modernising the rail infrastructure, together withgreen technologies such as hydrogen-powered andelectric locomotives.A goal has been announced that by April 2025,Transnet Freight Rail will have to compete with privatecompanies to manage the country’s rail infrastructure.This comes after the government decided to open thespace to private players to participate in the significantinvestment required for the railway network.Comments Nong: “The Integrated Transport Plan (ITP)emphasises developing an interconnected multimodaltransport system where rail and road work togetherto enhance overall efficiency and sustainability. Astrengthened rail-freight system can support andcomplement road transport, which remains crucial forlast-mile deliveries, remote deliveries and shorter routes.”She does not doubt that there is significant roomfor collaboration. Road freight can handle short-hauland remote deliveries, while rail can manage long-haulroutes, optimising the strengths of both modes. As aresult, the road and rail industries can create a moreresilient and eco-friendly transport system.About Bidvest International Logistics (BIL)BIL is one of South Africa’s largest logisticsbusinesses, owned by services, tradingand distribution powerhouse Bidvest. BILprovides an end-to-end supply-chain solutionacross several different industries. It offersinternational import and export services,using road sea and air. When products arrivein South Africa, BIL can clear, warehouse, fulfiland distribute through final-mile distributingservices. The company has massive coveragethroughout the country and access to aworldwide forwarding network. Its leadingtechnological capability gives customers fullvisibility of their orders 24/7, whether they’resingle items or bulk, express or deferred.
