THE STATE OF LOGISTICS IN SOUTH AFRICA: THE EFFECT OF ROAD CONDITIONS ON LOGISTICS D.J. King1, W. Bean2, W.J. vdM. Steyn3, J. Havenga4 1 CSIR Built Environment Pretoria, Gauteng, South Africa; email:
[email protected] 2 CSIR Built Environment Pretoria, Gauteng, South Africa; email:
[email protected] 3 Faculty of Engineering, Built Environment & IT, University of Pretoria Pretoria, Gauteng, South Africa; email:
[email protected] 4 CSCM, Department of Logistics, Stellenbosch University Stellenbosch, Western Cape, South Africa; email:
[email protected] Abstract To prosper, a country’s economy depends, inter alia, on an efficient logistical system to ensure that goods can be transported between producers and users at the lowest cost. The costs associated with logistics include transport, storage, inventory, and management costs. In South Africa transport costs represents more than 50% of total logistics cost and this figure is probably even higher for other African countries. The condition of transport infrastructure of a country directly influences the transport cost and therefore the logistics cost of that country. In this paper the effects of road conditions on the costs of logistics are evaluated. This is done through analysis of data obtained from a Logistics Service Provider on actual truck costs (maintenance and repair) as well as road condition data for the routes used by the company. Analysis of the data indicates that the logistics costs increases significantly with decreasing road conditions. 1. THE STATE OF LOGISTICS IN SOUTH AFRICA The ability to measure logistics costs on a regular basis creates a continuous macro understanding of the state of logistics in a country or region, and also makes it possible to gauge the impact of various public and private sector initiatives to reduce such logistics costs.