Identification of key target markets for intermodal freight transport solutions in South Africa

Abstract

The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) identified South Africa's freight logistics challenges as among the key binding constraints on the country's growth aspirations. The research presented here points to the structural imbalance between road and rail freight transport as one of the key contributors to this state of affairs. Most long-distance corridor transport has been captured by road. However, long-distance transport is a market segment that is very suitable for intermodal transportation : rail is utilised for the high-density, long-distance component and road for the feeder and distribution services at the corridor end points. A market segmentation approach is developed to identify the corridors and industries that are natural candidates for such solutions, thereby paving the way for role-players and stakeholders to initiate a dialogue on the development of appropriate solutions.

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