South Africa moves up in logistics index as global supply chains shift

SOUTH AFRICA – South Africa has improved its standing in the Agility Emerging Markets Logistics Index, moving up to 23rd place, according to the latest Cargo Movement Update.

The development highlights progress in logistics and digital transformation efforts, though challenges remain in making the country a stronger hub for regional trade.

The South African Association of Freight Forwarders and Business Unity SA compiled the report, which notes the country’s ongoing issues with transhipment capabilities.

While some progress has been made, industry experts stress that further improvements are necessary for South Africa to cement its role as a critical gateway for sub-Saharan Africa.

Despite the country’s rise in the rankings, the logistics sector still faces obstacles. Analysts emphasize that infrastructure limitations and regulatory barriers continue to affect efficiency.

These factors impact South Africa’s ability to handle growing volumes of transhipment cargo, which is essential for enhancing port competitiveness.

“The biggest concern remains the ability to improve regional transhipment,” the report states. “While there are ongoing upgrades, the sector must address infrastructure gaps to increase cargo volumes and support intra-African trade.”

This issue ties into a broader global shift in supply chain strategies. A recent survey indicates that 54% of logistics professionals plan to reduce reliance on China by 2030.

The trend stems from geopolitical concerns and the need to create more stable supply networks. Emerging markets, including South Africa, are positioning themselves to benefit from this realignment.

Drewry’s Global Container Port Throughput Index recently reported a month-on-month decline but noted year-on-year growth. African ports saw a modest increase, with better terminal operations and improved regional trade contributing to the rise.

However, competition from international ports remains a challenge, making continued investment in port infrastructure essential.

Meanwhile, the United States is considering imposing higher tariffs on Chinese-built vessels. If implemented, the policy could disrupt existing shipping routes and force carriers to find different options for fleet expansion.

Experts warn that such changes may create volatility in the shipping industry and lead to higher costs for businesses.

Container freight rates have also been dropping, pushing carriers to offer discounts on long-term contracts. While some capacity increases are expected to stabilize prices, companies are negotiating carefully to maintain financial balance.

Global port congestion remains steady, with around 8% of the fleet experiencing delays. Carriers are adjusting schedules and using digital tools to improve efficiency in response to these conditions.

Clairwood rezoning for logistics expansion

As South Africa works to strengthen its logistics sector, local developments are also taking shape. The eThekwini Municipality has published a proposal to rezone the residential suburb of Clairwood into a major logistics park.

The plan aims to accommodate the growing need for land to support the Port of Durban’s container traffic.

A 524-page land development document released in February outlines multiple studies undertaken by the city. The proposed “Special Zone 40: Clairwood Logistics Park” would still aim to preserve historical and religious sites. The plan includes road improvements and truck staging areas to facilitate better movement of goods.

“However, the area has evolved over time to cater for zones other than residential, which include but are not limited to general industry (20%), general commercial (5%) and noxious industry (9%),” the document states.

A land use audit found that while much of Clairwood is zoned for residential purposes, a significant portion of land is used for transport and logistics.

About 29% of land use in the precinct is tied to transport, with 15% dedicated to logistics operations. Industry-related land use accounts for 26%, while residential use makes up 21%.

The municipality’s Back-of-Port Study recommends reconfiguring Clairwood’s zoning to align with the demand for port support services.

The move could play a role in boosting Durban’s capacity as a logistics hub, ensuring that South Africa remains competitive in the evolving global trade landscape.

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