South Africa Transport Articles & Analysis

Displaying 19 - 24 of 33

To what extent do you think freight flow can be used as a barometer for economic activity?

The aviation sector remains a crucial driver of growth, contributing R50.9bn ($6.2bn) or 2.1% to GDP. When catalytic benefits, such as tourism spending, are included, this rises to R74.3bn ($9.1bn) or 3.1% of GDP, according to a 2011 report by Oxford Economics. This comes on the back of solid performance by local airports, which saw total...

Chapter | Transport from The Report: South Africa 2013

Home to the most developed transport network and logistics industry on the continent, South Africa ranks highest in Africa and among the best in its income group globally on a number of indices. While both freight operators and passenger service operators have been experiencing respectable growth in the past year, the long-term success of such industries will be tied to the government’s ability...

With a long-established track record as the continent’s largest financial platform and one of the world’s biggest mining producers, South Africa has significant economic clout in the region. 

Japan has joined France, Germany, China and South Korea as a prospective investor in South Africa’s proposed high-speed rail system, which, once built, will link Johannesburg and Durban on the east coast. However, while there is no doubt about the attractiveness of the multi-billion dollar large-scale infrastructure project, questions remain about whether the project will prove profitable for private sector partners unless it is subsidised.
Facing a slowdown in both international and domestic demand, combined with rising oil prices and airport fees and tariffs, carriers in South Africa are feeling the squeeze. With economies booming elsewhere in Africa, there is some optimism that new profitable routes could be established, but governments throughout the continent will need to further liberalise their skies to make this happen.