July 2023 | BUSINESS FLEET AFRICA
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Table 1 Change in Ctrack Transport and freight Index in May 2023
Percentage change between
Rail
Road
Pipeline
Sea
Air
Storage and
handling
Ctrack Freight
Transport Index
May 2023 vs May 2022 (y/y)
–9.6%
15.2%
–2.3%
2.1%
–3.6%
1.7%
7.5%
May 2023 vs April 2023 (m/m)
–1.7%
0.0%
1.7%
1.3%
0.9%
4.1%
0.4%
Quarter to May 2023 vs. Quarter to February 2023 (q/q)
9.1%
3.3%
6.2%
2.0%
3.4%
11.9%
4.9%
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.
“Ctrack believes that Road Freight will
remain the best choice for the transport-
ing of goods in South Africa for many
years. Therefore, we are always innovat-
ing and refining our offering to ensure
that our clients have the best chance of
success in a cut throat business environ-
ment that needs to operate in unpredict-
able conditions,” says Hein Jordt, Chief
Executive Officer of Ctrack Africa.
Reflecting this ongoing phenomenon
is a 15,2% annual improvement in the
Road Freight segment of the Ctrack
Transport and Freight Index, the 29th
consecutive month of growth for the
sector. These increases are evident in
the increased heavy vehicle traffic on
both the N3 and N4 routes during May.
The Rail Freight segment declined fur-
ther during May, after having recorded
some recovery during February and
March, albeit off an extremely low base.
The Rail Freight segment remains deeply
in the negative on an annual basis,
declining by 9.6% for the year ending
in May.
The Sea Freight segment of the
Ctrack Transport and Freight Index,
which was one of the segments hardest
hit by the Transnet strike of October
2022, is still in a gradual recovery mode.
Sea Freight increased by 1.3% during
May and moved into positive territory
on a year-to-year basis, for the first time
since September 2022. Although up by
2.1% on an annual basis, the sub-sector
remains 14.6% below the September
2022 pre-strike level. Container handling
increased by a notable 7.7% on a
monthly basis in May, while other cargo
handling increased by 2.7%.
The transport of liquid fuels via
Transnet Pipelines (TPL) increased by
1.7% during May, with the pipeline
component of the Ctrack Transport and
Freight Index improving significantly
on a quarterly basis, by 6.2%, although
it is still 2,3% behind the levels of the
previous year.
The Storage and Handling sub-sector
of the Ctrack Transport and Freight Index
continued to perform well during May,
with a 4.1% increase compared to April
and tracking 1.7% higher on an annual
basis.
Ctrack TFI and GDP growth
The transport industry was among
the top three sectoral performers in
the first quarter of 2023, increasing by
1.1% compared to the previous quarter
seasonally adjusted (vs. 0.4% for total
economy), contributing positively to the
overall economic performance of the
South African economy.
Additional improvements as indicat-
ed by the Ctrack Transport and Freight
Index in April and May are already indic-
ative of a sustained recovery in the logis-
tics sector that should benefit activity in
the broader economy during the second
quarter and beyond. While the econom-
ic narrative remains dismal, evidence of
resilience has recently been coming to
the fore, with better-than-expected eco-
nomic data releases. Production figures
in the mining and manufacturing sectors
have been surprising despite heavy
load-shedding during April, suggesting
that these industries are becoming
progressively more resilient to the
effects of load-shedding, as companies
reduce their energy dependence on an
embattled Eskom. Though it is still early
days, it is an encouraging trend that
could, if sustained, result in a somewhat
better economic scenario, than what
was previously envisaged.
“Despite a tough economic environ-
ment it is clear that goods still need to
be transported and Ctrack offers a wide
variety of solutions that assist operators
in doing so as safely and efficiently as
possible,” concludes Jordt. BFA
-125 000
-75 000
-25 000
25 000
75 000
125 000
2017
2018
2019
2020
2021
2022
175 000
Rail freight
Road freight
Graph 3 Annual change in Land Transport payload (000 tons)
CTRACK
Despite a tough economic
environment it is clear that goods
still need to be transported
and Ctrack offer a wide
variety of solutions that assist
operators in doing so as safely
and efficiently as possible