New technology and infrastructure to drive growth in SA logistics market

Investment in new technologies and infrastructure is set to drive growth in the South African logistics market, with a surge in e-commerce services changing the logistics landscape. According to a report by India-based Ken Research, the South African e-commerce logistics market is positioned for strong growth in coming years, especially in previously unexplored markets.

“With further growth in the e-Commerce market and changes in consumer preferences, the demand for a quicker and affordable delivery service will witness growth,” the report stated.

“A surge in domestic and cross-border online mail orders will raise demand for the forwarding of the goods from one place to another in both domestic and international markets.”

There has been an increase in companies and individuals using e-commerce services as it eases the buying and selling process, particularly with customers in the Asian flow corridor.

Additionally, the report stated that road freight remained the preferred method of freight forwarding, with developments in road infrastructure enhancing the sector.

“Road freight was observed to be the preferred mode of transportation due to development in road infrastructure and relatively cheaper prices compared to the other modes of transportation - followed by rail and sea freight,” the report concluded.

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