October 2022 | BUSINESS FLEET AFRICA
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Table 1 Change in Ctrack Transport and Freight Index in August 2022
August 2022 Tables
Percentage change between
Rail
Road
Pipeline
Sea
Air
Storage and
handling
Ctrack Freight
Transport Index
August 2022 vs August 2021 (y/y)
–8.9%
28.6%
18.1%
5.4%
13.0%
–13.9%
12.9%
August 2022 vs July 2022 (m/m)
–0.4%
2.7%
–2.2%
2.1%
–4.9%
5.1%
2.0%
Quarter to August 2022 vs. Quarter to May 2022 (q/q)
–4.9%
7.0%
19.4%
13.2%
–10.1%
2.1%
4.3%
Note: The row highlighted in blue is the main Ctrack Transport and Freight Index values used.
Source: Ctrack and economistscoza, TNPA, StatsSA, SARS, N3 and N4 toll concessions, ACSA, ACOC, IATA.
lack of locomotives and corruption.
Transport Minister Fikile Mbalula recently
commented that the Department of
Transport is working with the Department
of Public Enterprises to get trucks off the
road, by moving at least 10% from road
onto rail within the next five years. The
White Paper on National Rail Policy was
approved by cabinet in March 2022, and
tabled in parliament, seeking to enable
the government to implement the ambi-
tious policy choices it has made, including
radical structural reforms that not only
seek to restore the competitiveness of
the railway system but also enable private
sector participation through concessions.
The transport of liquid fuels via
Transnet Pipelines (TPL) increased in the
past three months, with the pipeline
component of the Ctrack Transport and
Freight Index growing by 18.1% during
August compared to the same period
last year. South Africa’s own production
of fuel has been on a downward trend
recently with four oil refineries closing
their doors. South Africa once relied on
imports for hardly a third of its refined
fuel, but the situation has changed
notably and bigger volumes of final
products are now being imported and
transported via pipeline to the Gauteng
market on a regular basis.
The Air Freight sector showed signs
of strain during August and declined by
4.9% on a monthly basis, the second
month of decline; however, it is still
tracking 13.0% higher than a year ago.
This is in line with global trends as de-
mand comes under increasing pressure
due to higher inflation and interest rates
globally, which is impacting trade flows
and demand for imports and exports.
Sea Freight grew by 5.4% in August
compared to a year ago, driven by a
strong recovery in container handling at
various ports in recent months. Storage
and handling remained under pressure
in August, declining by 13.9% on an
annual basis, reflecting generally lower
inventory levels in the economy.
The Ctrack Transport and Freight
Index and GDP growth.
While the first quarter’s real GDP growth
was stronger than expected, the econo-
my lost momentum in the second quarter
due to the impact of the KZN flooding
during April, regular load shedding, higher
inflation and rising interest rates.
Encouragingly, the transport sector
outperformed the broader economy
during the second quarter, increasing
by 2.4% compared to the previous
quarter seasonally adjusted vs. a 0.7%
contraction in overall real GDP growth.
Despite many headwinds currently being
experienced by the broader economy,
early indications are that the transport
sector might outperform South Africa’s
GDP once again during the third quarter.
The August 2022 Ctrack TFI (119.2)
increased notably compared to the June
index level (114.8), signalling a further
recovery in the transport sector in Q3.
However, September has been a partic-
ularly challenging month for the South
African economy, due to load shedding,
which will have an overall dampening
effect on the broader economy.
“There is no doubt that South
Africans and the South African economy
is currently under pressure due to a
variety of factors, so it is heartening
that the transport industry as a whole
continues to rise above these challenges
and outperform the countries GDP,”
concludes Jordt. BFA
Rail vs Road Freight indices (2016=100)
140
160
120
100
80
60
40
20
Rail Freight
Road Freight
Jan18=100
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jul-18
Jul-19
Jul-20
Jul-21
Jul-22
Apr-18
Apr-19
Apr-20
Apr-21
Apr-22
Oct-18
Oct-19
Oct-20
Oct-21
sTaTssa LaND TraNsPOrT survEy
Graph 2 Comparison between payload for rail and road freight transportation
Encouragingly, the transport
sector outperformed the broader
economy during the second quarter,
increasing by 2.4% compared to
the previous quarter seasonally
adjusted vs. a 0.7% contraction
in overall real GDP growth.