Freight transportation in Africa is a behemoth industry and one of the biggest on the continent. Its size is a testament to the movement of goods across the continent.
Supply chain networks in Africa are vast and continue to grow, thanks to the support from the freight transportation industry.
Introduction
Freight transportation is the movement of goods or cargo from one location to another.
Africa is a vast continent, both in sheer size and population. It is, therefore, reasonable to expect that supply chains within the continent will face many challenges getting their goods to customers without logistics support, of which freight transportation is a big part.
Fun fact: the logistics industry is a 344 billion dollar industry, making it one of the biggest on the continent. However, getting reliable freight transport can be tricky due to the terrain and landscape of the continent.
In this article, we review the elements, challenges, opportunities, and guides to freight transportation in Africa.
Elements of Freight Transportation
There are typically four elements or components of freight transportation in Africa.
- Medium
- Terminals
- Methodology
- Energy
Methodology
The methodology is the chosen mode of transportation. Before transporting freight, you must identify the mode of transportation you are most comfortable with. It could be water, road, rail, or air.
Terminals
These are the points of origin and destination. They are the earliest point of origin and farthest point to which that particular transportation extends.
Medium
These are the vehicles used for transportation across the different modes of transportation. For example, do you use a truck, bus, or a regular vehicle to transport on the road?
Energy
Every transportation medium or vehicle requires power to move. It could be in the form of petroleum products such as fuel or diesel or in the form of electricity.
Challenges and Opportunities of Freight Transportation in Africa
There are five major challenges to freight transportation in Africa.
- Infrastructure
- Lack of trained personnel
- Underdeveloped technology
- Government Policies
Infrastructure
The drums of poor infrastructure have been beaten over and over again. It is the bane of the African economy. Poor infrastructure impacts several industries in Africa, and transportation is one of them.
Poor road networks, especially in remote regions, make transportation and cause unnecessary delays leading to longer lead times, supply chain disruptions, and other issues for African businesses.
Fixing infrastructure across Africa will go a long way, but it’s not a day job and will cost governments a lot of money. However, it is an investment that pays for itself.
With adequate road networks, transportation across the continent will become faster, cheaper and introduce new competition in that space.
Lack of Trained Personnel
The transportation sector needs more drivers, mechanics, and other job functions. These are the people who make transportation possible on the continent.
Unfortunately, many available jobs do not get enough skilled personnel applying to them, making it difficult to fill those positions effectively.
With a lack of skilled or trained personnel, businesses in the transportation industry do not get a great pool of staff which can impede the transportation process.
Businesses can get around the issue of poorly trained personnel by investing in training, seminars, and education or certifications of their current staff. They could also encourage these personnel through motivation.
Underdeveloped Technology
There is a technology gap in Africa compared to the rest of the world. Unfortunately, the effects of this gap can be felt in different industries like the transportation industry.
The modern supply chain is built on the back of technology. This means that if Africa is to make an impact with its supply chain, businesses across the continent will need to do more to embrace technology.
Government Policies
Government policies go a long way to impact transportation on the continent negatively. Africa is plagued with unstable governments and policies that disrupt or seriously delay transportation across or within nations.
The Sudan crisis is an example of this. Currently, Niger and Burkina Faso are facing the same challenges as well.
Poor government policies and unstable government also lead to security issues and loss of goods and services, directly impacting the cost of transportation for many businesses.
Key Players for Freight Transportation in Africa
Freight transportation in Africa is a complex ecosystem involving various key players who each contribute uniquely to the industry. These players are logistics companies, trucking businesses, freight forwarding, and shipping lines.
Logistics companies manage and coordinate the movement of goods. With their expertise, they can optimize the supply chain and improve overall efficiencies.
Trucking companies are responsible for trucking goods from origin to destination while ensuring timely and reliable deliveries.
Freight forwarders act as intermediaries between shippers and carriers, coordinating the logistics and paperwork involved in international freight transportation. They are essential for ensuring compliance with customs and regulations.
Shipping lines are the link between Africa and the rest of the world. They facilitate international trade by connecting Africa to the rest of the world.
Modes of Freight Transportation in Africa
Across the globe, there are four major modes of transportation, and within Africa, they are all applicable.
In Africa, freight transportation relies on a combination of modes, each designed to suit any region’s unique needs and challenges.
Road transportation is the favoured mode of transportation, especially when it is domestic or regional. The poor road networks and insecurity hubbles road transportation across the continent.
Rail transportation is very good for long-distance and bulk shipments. Although it can be slow, it is cheaper and has fewer disruptions. Railroads can be expensive, which has limited its implementation on the continent.
Water transportation is the movement of goods across rivers, seas, and oceans. In Africa, it is typically used for international trade and is used to encourage large-scale commerce.
Air transportation is the movement of cargo through the air using vehicles such as aircraft. Air transportation is the fastest and most efficient but can be expensive, especially for long-distance travel.
Guide to Successful Freight Transportation in Africa
Due to the challenges mentioned earlier, freight transportation in Africa can be quite complicated. However, with the right guide or strategy, you can make easy work of it.
1. Always ensure you have the right documentation
In their bid to regulate the economy, African governments have set up stringent policies that can make doing business on the continent difficult. Some of those policies involve presenting multiple documents to the authorities.
To facilitate the transportation process, it is important to ensure you have all the necessary documentation available and printed in hard copies. Having them handy will eliminate delays, unforeseen expenses, and other unwanted difficulties.
2. Always ensure proper storage of the freight
Some goods need special storage, even during transportation. These goods are typically perishable. Examples are Apples and strawberries, which need to be stored in cool conditions.
Nonperishable but highly inflammable products like petroleum products require specific storage types during transportation to avoid damages.
Ensuring proper storage will help preserve the goods transported and reduce the risks associated with the transportation process.
3. Pick the best mode of transportation for the freight
Before embarking on freight transportation, you must determine the most efficient transportation mode. It will help you plan properly, reduce delays, and reduce costs.
When selecting the best mode of transportation, factor in the nature of goods, quantity, and cost benefits of each transportation mode.
For example, if you are transporting petroleum products, you will ideally transport smaller quantities with trucks, but you must use pipelines or ships for larger quantities.
4. Always prioritize the safety of freight and personnel
Safety is a big issue for freight transportation in Africa. Safety concerns is not just about the product or cargo. Every year there are countless deaths on African roads because of accidents that stem from bad roads, poor driving, and poor maintenance.
Prioritizing safety ensures your goods are protected, vehicles are reusable, and reduce the loss of life. All this also helps cut down the cost associated with freight transport.
5. Insurance
Transported cargo can be expensive. Pile on the risk of accidents or thefts, and you have a big problem. However, with an insurance package, you can seriously eliminate the associated risk, securing your cargo from start to finish.
It can be very expensive, and you can often travel for long periods without incident. However, when those incidents happen, they tend to be very costly to your business.
6. Staff Training
A skilled team will always be more useful than an unskilled team. As a freight transportation business, investing in the training and education of your staff, especially the drivers and the maintenance staff, will allow you to cut down on unnecessary delays and costs.
7. Implement an effective maintenance strategy
Freight transportation requires a medium or vehicle, but it needs constant maintenance. Vehicles for all modes of transportation, such as trucks, ships, or aircraft, can be expensive to purchase but even more expensive to maintain.
You need to maintain these vehicles or work with companies you are sure regularly maintain their vehicles because it protects you from accidents or delays from breakdown.
These delays or accidents can be significantly more expensive than the cost of maintenance, which impacts the operation and business negatively.
8. Always carry the right quantity
The quantity of the cargo usually goes a long way to determine the mode of transportation. However, it is always important to load the right quantity of cargo. Too low, and you could lose money. Too much, and you risk an incident leading to cargo loss and other issues.
FAQs on Freight Transportation in Africa
Q1: How important is freight transportation to the African economy?
It is critical to Africa’s economy since it facilitates trade, allows access to markets, and promotes economic progress. Freight transportation networks that are efficient and critical for regional and worldwide commerce integration.
Q2: What role does freight transportation play in intra-African trade?
Freight transportation connects African regions and countries, allowing goods to cross borders. It promotes regional trade integration, economic collaboration, and strengthening African nations’ ties.
Q3: How has the rise of e-commerce affected freight transit in Africa?
E-commerce expansion in Africa has raised demand for efficient freight transportation services, particularly last-mile delivery solutions. Logistics firms are evolving to meet the shifting demands of online retailers and consumers.
Conclusion
Freight transportation in Africa is a vibrant industry with lots of potential. There are several modes to leverage when planning for freight transportation on the continent. Each of them with a unique impact.
For effective freight transportation, all the elements or components need to be in place, and finally, the guide reviewed above would go a long way in helping you make the most of your experience in the field.
Obinabo Tochukwu Tabansi is an ex-supply chain professional turned ghostwriter with a decade of experience working in different facets of the supply chain. Today, he lives his passion for writing on all things supply chain and helping clients from across the globe communicate their thoughts and solutions seamlessly. His blog, Supply Chain Nuggets, is Africa’s fastest-rising supply chain blog, helping professionals, business owners, and curious minds navigate the continent’s complexities.