New Market Report Now Available: South Africa Freight Transport Report Q4 2013

From: Fast Market Research, Inc.
Published: Wed Dec 04 2013


BMI maintains a cautiously optimistic stance with regards to South Africa's freight transport sector in 2013. Although there are risks to the mining sector from a potential hard landing in China, our Mining desk believes that growth will continue, which bodes well for the rail and port sectors in particular.

Headline Industry Data

* Rail freight growth will be 6.3% in 2013, and will average 4.5% to 2017.
* Richards Bay Port's tonnage throughput in 2013 is forecast to increase by 6.2%. Over the medium-term we project a 6.1% average annual increase.
* 2013 total trade growth is forecast at 3.3%, and to average 4.3% over the medium term.
* Road freight volumes are set to expand by 6.2% in 2013, and to average 5.9% over our forecast period.

Full Report Details at
- http://www.fastmr.com/prod/712849_south_africa_freight_transport_report_q4_2013.aspx?afid=303

Key Industry Trends

Freight Investments To Support Coal Exports: BMI's mining team expects South African coal production to experience strong growth in the coming years, reversing stagnant output growth over the previous five. To ensure that its freight transport network is capable of handling the expected volumes, parastatal freight company Transnet has been investing in its development, in terms of both its ports and its railways.

IAG Cargo Increases South African Exposure: BMI believes that the announcement by IAG Cargo that it will be serving South Africa with its latest A380 aircraft will offer some upside potential to the country's air freight volumes. The temperature-controlled facilities offered by the new jumbo will be especially useful to South African exporters of perishables.

BMW Port Alternatives Reduce Risk: BMW South Africa has announced that in line with its planned expansion in production in 2013, it will be sharing its increased exports between the port of Durban, where it currently exports the locally produced 3 Series, and additionally, the port of Maputo in Mozambique.

Key Risks To Outlook

Significant risks are posed to South Africa by the global headwinds facing the world economy, namely the ongoing European debt crisis and the potential of a hard landing in China. China in particular could be a real concern if growth continues to slow and the country begins to use its stockpiles of coal and iron ore, which would hit volumes of the commodities being transported on South African rail and through its ports. The risk of strikes appears higher in the wake of the Marikana massacre of 2012, which could affect freight transport volumes in 2013 and beyond.

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For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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Contact Name: Bill Thompson
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