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Opinion Piece: Transparency is Becoming the New Competitive Advantage in Workforce Logistics

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Female warehouse worker using a laptop with an AI tool running the logistics of the warehouse.

By Maureen Phiri, Director at Oxyon People Solutions

In the past, the logistics of workforce management have tended to happen behind the scenes. Clients saw the end result of staff arriving on site, projects being delivered, and operational requirements being met, but the processes that made it possible were mostly invisible. However, this approach is now beginning to change, thanks to Artificial Intelligence (AI) becoming more integrated into workforce management.

Workforce providers can now give their clients greater visibility into the processes behind staffing. This means that clients have a better understanding of workforce readiness, compliance, and operational performance, which in turn allows them to make faster, more informed decisions. For workforce providers, this means that administrative functions can become strategic assets that strengthen collaboration, build trust, and create greater value for clients.

AI is Connecting the Workforce Journey

Clients are looking for increased transparency when it comes to their outsourced staffing processes. For workforce providers to be able to do this, they need to bring together information from across the workforce lifecycle. Previously, this would have been a labour-intensive task, but AI makes it much quicker and easier to collate information from across separate systems like recruitment, onboarding, compliance, and workforce management.

Connecting these functions allows workforce providers to have a much clearer view of workforce readiness and allows them to share relevant information with clients in real time. This means that instead of waiting for reports or updates, clients can see where people are in the recruitment or onboarding process at any time. It also helps them to  understand whether compliance requirements have been met, and identify any potential issues in the process.

This changes the role of workforce logistics, because the information that was previously only used to support internal operations can become a competitive advantage. With AI behind the scenes, this information can help clients plan more effectively, respond more quickly, and work more closely with their workforce partners.

Making the Back Office Visible

Take onboarding as an example. Traditionally, clients would only become involved in the process once a worker was ready to start, but using AI means that workforce providers can give their clients visibility throughout the process. This means that clients can see how onboarding is progressing as it happens, and any problems that might cause delays can be identified and dealt with early.

The same applies to compliance. With visibility throughout the recruitment processes, clients can easily see whether compliance requirements are being met, rather than only being notified when a problem occurs. This reduces risk, because issues can be handled before they can have a negative effect on client operations.

When it comes to workforce administration, the benefits are similar. Having real-time visibility into information that used to only be used internally at a workforce provider means that clients are more informed and can make better operational decisions.

More Transparency Builds Stronger Partnerships

Better visibility helps to improve reporting, but it can also change the relationship between workforce providers and their clients. If workforce providers give their clients ongoing access to more information, the whole process becomes more proactive. Problems can be identified quickly and decisions can be made faster. Added to this,  both clients and workforce providers can understand the workforce journey better, as it happens. 

It is important, however, to remember that responsible data management is essential. Giving clients more visibility into workforce processes does not mean providing unrestricted access to personal employee information. AI should help organisations share the information clients need to make better business decisions, but it should also be used to make sure that personal employee data is always protected.

Clients and workforce providers also need to remember that technology should never replace human judgement. AI can process information quickly and can identify potential problems, but any decisions about recruitment, onboarding, and workforce management must still be made by people who can use their experience to consider the circumstances and take responsibility for the outcome.

The Future of Workforce Logistics

AI is increasingly becoming part of workforce management, but the real value of these tools is not just in automating administrative tasks. If workforce providers can use AI to make workforce processes more transparent, they can give their clients better visibility into the information that supports operational decisions, including onboarding and compliance. This is fast becoming a competitive advantage that helps workforce providers strengthen client relationships, support better decision-making, and demonstrate the value of their expertise.

Maureen Phiri, Director at Oxyon People Solutions.

Maureen Phiri, Director at Oxyon People Solutions

Logistics

CILT Conference to Explore Innovation and Cross-Border Connectivity at Automechanika Johannesburg

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Focused image of panel discussion at a conference.

Transport reform, regional trade, safer freight corridors and workforce development will take centre stage at the Chartered Institute of Logistics and Transport (CILT) Namibia, South Africa and Zimbabwe Regional Conference at Automechanika Johannesburg on 28 and 29 October 2026.

Taking place at Gallagher Convention Centre in Midrand, the conference will explore the theme “Driving Innovation: Bridging Borders for an African Future”. Its programme brings together perspectives from government, industry, professional bodies and education to examine the transport, logistics and supply chain challenges shaping regional connectivity.

With Tiro Rapoo of NEXT Gen – an interest group of CILT – as programme director, the discussions will focus on how infrastructure, regulation, technology and skills can support a more connected African transport landscape, with an emphasis on practical regional challenges. Four panels will address transport corridors, cross-border harmonisation, safety and security, and education and training.

Head shot of Tiro Rapoo of NEXT Gen.

Tiro Rapoo of NEXT Gen

“By focusing on critical corridors, standardisation, safety, and future-ready skills, the programme is structured to deliver actionable solutions that help move goods and people across our borders more efficiently and securely,” says Elvin Harris, President of the Chartered Institute of Logistics and Transport South Africa (CILTSA).

Head shot of Elvin Harris, President of the Chartered Institute of Logistics and Transport South Africa (CILTSA).

Elvin Harris, President of the Chartered Institute of Logistics and Transport South Africa (CILTSA).

Connecting Corridors and Aligning Systems

Lwazi Mboyi, CEO of the Cross-Border Road Transport Agency (C-BRTA), will address enabling cross-border road transport in Africa. Aneeqah Meyer, Manager at Ernst & Young Advisory Services, will examine economic integration, the African Continental Free Trade Area (AfCFTA) and the future of African trade.

Head shot of Lwazi Mboyi, CEO of the Cross-Border Road Transport Agency (C-BRTA).

Lwazi Mboyi, CEO of the Cross-Border Road Transport Agency (C-BRTA)

Head shot of Aneeqah Meyer, Manager at Ernst & Young Advisory Services.

Aneeqah Meyer, Manager at Ernst & Young Advisory Services

The transport corridors panel will feature Crynos Mutendera, Senior Research Specialist at C-BRTA and Lebo Letsoalo, founder of the African Women in Supply Chain Association (AWISCA) and Sincpoint. Discussions will cover strategic road and rail corridors, reducing border delays and non-tariff barriers, and lessons from one-stop border posts. Infrastructure financing, the contribution of dry ports and inland terminals, and links between corridor development and regional industrialisation will also feature.

Portrait of Crynos Mutendera, Senior Research Specialist at C-BRTA.

Crynos Mutendera, Senior Research Specialist at C-BRTA

Head shot of Lebo Letsoalo, founder of the African Women in Supply Chain Association (AWISCA).

Lebo Letsoalo, founder of the African Women in Supply Chain Association (AWISCA)

The harmonisation panel will include Jonathan McDonald, Vice Chairman of the SA Freight and Logistics Association (SAFLA), and Prisca Mayumbelo CMILT, Chairperson of CILT Namibia and a transport and urban mobility specialist. Topics include vehicle standards, customs documentation, trade facilitation systems and mutual recognition of licences, permits and professional qualifications.

Portrait of Prisca Mayumbelo CMILT.

Prisca Mayumbelo CMILT

“By uniting Namibia, South Africa and Zimbabwe at Automechanika Johannesburg, we are turning policy aspirations into operational realities that will accelerate trade efficiency along our shared economic corridors,” states Mayumbelo.

Safer Operations and a Future-Ready Workforce

Day two will bring a regional perspective from Dr Tapiwa Mujakachi, President of CILT Zimbabwe, followed by a keynote on generative engine optimisation from Francois Vorster, Chief Disruptor at IMS.

Head shot of Dr Tapiwa Mujakachi, President of CILT Zimbabwe.

Dr Tapiwa Mujakachi, President of CILT Zimbabwe

Dr Mujakachi emphasises the collective purpose driving regional collaboration. “This three-way partnership demonstrates that our logistical challenges and economic destinies are deeply interconnected. Bringing our institutions and practitioners together allows us to co-create practical solutions that lower the cost of doing business and build corridor resilience for our shared future.”

The safety and security panel will include Gavin Kelly, CEO of the Road Freight Association (RFA) and Gerhard van Zyl, Group Operations Director at Professional Risk and Asset Management.

Head shot of Gavin Kelly, CEO of the Road Freight Association (RFA).

Gavin Kelly, CEO of the Road Freight Association (RFA)

Head shot of Gerhard van Zyl, Group Operations Director at Professional Risk and Asset Management.

Gerhard van Zyl, Group Operations Director at Professional Risk and Asset Management.

The education, training and skills panel will feature Maphefo Ano Frempong, CEO of the Transport Education Training Authority (TETA); Anton Fiets, Executive: Industry Development at the Automotive Industry Development Centre (AIDC); Professor Chengedzai Mafini, Executive Dean at Vaal University of Technology; Ronald Mlalazi, CEO of Commerce Edge; and Sandile Khoza, CEO of COSA Holdings and CILTSA Council member.

Portrait of Sandile Khoza, CEO of COSA Holdings and CILTSA Council member

Sandile Khoza, CEO of COSA Holdings and CILTSA Council member

Portrait of Professor Chengedzai Mafini, Executive Dean at Vaal University of Technology

Professor Chengedzai Mafini, Executive Dean at Vaal University of Technology

Head shot of Ronald Mlalazi, CEO of Commerce Edge.

Ronald Mlalazi, CEO of Commerce Edge

Formal sessions will be followed by lunch and dedicated opportunities to visit the Automechanika exhibition and network with exhibitors.

For more information about the conference or to register, visit: https://www.ciltsa.events/cilt-conference-at-automechanika-johannesburg/

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Logistics

A Game-Changer in South Africa’s Port Structural Reform

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Freight truck unloading cargo in a shipping yard.

By Andrew Pike, Head of Ports, Rail and Logistics and Lena Mangondo, Executive, Bowmans

Cabinet has just announced that Transnet National Port Authority (TNPA), the landlord port authority for South Africa’s eight ports, is to be corporatised as soon as possible. What this means is that TNPA will be removed as an operating division from the stable of Transnet SOC Ltd and will become a stand-alone state-owned corporation, completely independent of Transnet. Arguably, this is the biggest single port structural reform initiative since the passing of the National Ports Act (NPA) in 2005.

This action is not happening before time: The NPA itself envisaged Transnet being corporatised in a two-stage process, which was supposed to commence “as soon as this Act takes effect”. In other words, this reform has been delayed by over 20 years. What was envisaged in the NPA was that TNPA would initially become a subsidiary of Transnet and only later might become a state-owned corporation, completely independent of Transnet. This was the scenario painted by the President in 2021, but it appears that a decision has been taken to bypass the first step and simply move TNPA right out of Transnet’s influence. This is a welcome move and makes complete sense.

There are some compelling reasons for this initiative, chief among them being the critical need for TNPA’s operational independence. Currently, the biggest single terminal operator in South Africa is Transnet Port Terminals (TPT), a sister operating division of TNPA, which also sits within Transnet. This structural arrangement has long undermined market confidence: TNPA, which is responsible for awarding concessions and other port agreements, is completely conflicted when considering any tender for a port concession in which TPT is one of the bidders.

Similarly, TNPA is also (at least theoretically) required by the NPA to regulate terminal operator tariffs, yet would face an obvious conflict of interest if required to regulate TPT tariffs. By moving TNPA out of Transnet, this reform decisively resolves the “player–referee” conundrum that has raised suspicion amongst some sector participants. TNPA will now be positioned to operate as a truly independent authority, capable of awarding concessions and overseeing port operations on a level playing field where all market participants – including TPT – are treated equally. (Tariffs will in any event probably be regulated separately by the new single Transport Economic Regulator.) This structural separation is essential to instilling market confidence and ensuring that private sector operators can compete for port opportunities confident that the process is fair and free from institutional bias.

One of the other challenges within the incumbent structure is that TNPA, which is understood to be a profitable business, has to share its revenue with the wider Transnet Group. This effective cross-subsidisation has constrained TNPA’s cash flow and limited its ability to apply revenue exclusively to port upgrades and other initiatives that enhance the port system. As a stand-alone SOC, TNPA will benefit from greater transparency over its revenue streams and will be able to invest directly in much-needed port infrastructure. Equally important, this financial independence will support the move toward cost-reflective port user charges, ensuring that tariffs are set based on the actual costs of providing port services rather than cross-subsidising other business units within the Transnet Group.

The separation of TNPA is subject to several principles set by Cabinet, which include fair compensation for Transnet, long-term financial sustainability, fair allocation of liabilities between the Transnet Group and TNPA, protection of employees and customers, keeping strategic state ownership and control of national ports infrastructure and better investment capability and infrastructure development.

Cabinet has recommended that, as part of the reform, TNPA should partner with a Development Funding Institute (DFI). Once again, this will be significant. There are huge cash demands on the Transnet Group generally and TNPA in particular. For instance, TNPA has a planned berth deepening project in Durban which will require massive investment. Bringing in an equity partner will help TNPA to raise necessary funding for its various port projects around the country. A DFI should also be able to raise funds for TNPA at far more attractive interest rates. Further benefits of a DFI shareholder would include strong governance structures and project management skills.

Overall, the initiative is both welcome and exciting, but the implementation is not going to happen overnight. Leaving aside the valuation of the business and agreement on how Transnet will be compensated, one must bear in mind that all port agreements, whilst notionally with TNPA, are legally with Transnet. Accordingly, if TNPA is to continue as the Regulator and Landlord Port Authority, all of those agreements have to be transferred with the assets and rest of the business from Transnet to TNPA. This will, of course, require the agreement of counterparties, including for instance, funders who have concluded funding agreements with Transnet. These funders will want to ensure that such reform and the introduction of a DFI will not trigger any negative loan covenants and that both Transnet and TNPA will be capable of meeting their loan repayment obligations under the financing agreements. Lessons can be learnt in respect of the recent restructure of Eskom Holdings and the National Transmission Company.

Concessionaires will be looking closely at TNPA to determine whether it can meet potential obligations under existing port agreements which are currently carried by Transnet. It is no secret that the latter itself carries significant debt, so one might expect a review of Transnet’s financing agreements for disposal, change-of-control and negative-pledge provisions, followed by requests for lender consents or waivers and a renegotiation of the guarantee terms. There will of course be a number of other issues to address, including the employee transfer process.

None of this is insuperable but will all take time. It is difficult to predict how soon this will happen, but the Minister of Transport, Ms Barbara Creecy, told the Parliamentary Portfolio Committee, which sat recently, that she expected implementation to commence before year end, but to run into the new year.

The reform aligns with other major reforms taking place in the logistics sector, such as the unbundling of Transnet Freight Rail in order to create Transnet Rail Infrastructure Manager as a more independent regulator of the rail network and a separate Transnet Freight Rail Operating Company. All of this aligns with Government’s policy to invite greater private sector participation, but not to sell off the family’s silver by disposing of the infrastructure itself. This remains with Government.

Although reform is taking time, it now appears to have reached the stage where one can describe it as irreversible. This bodes well for the economy going forward.

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Logistics

Hammer Blow to Road Freight Logistics With October Fuel Price Hike:  What This Means for the Road Logistics Sector and Consumer

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Man fulling up with his car with petrol while opening his wallet.

By Gavin Kelly, CEO of the Road Freight Association

Higher Fuel Prices Pushes Transport Costs Through the Roof

Every litre of fuel consumed on South Africa’s roads reflects the underlying health of the country’s logistics economy. Changes in fuel prices have a far-reaching effect on the country’s supply chain, transport systems, the wider logistics industry as well as the pricing of goods on store shelves.

The October increase in the price of fuel reminds everyone – especially the consumer – of just how exposed the broader logistics sector is to the volatility of global oil markets. With fuel prices continuing to rise, transport companies will inevitably raise the cost of transport due to increasing pressure on operational costs.

Depending on the type of operation, routes, vehicles and specific conditions of the transport leg, fuel can be anywhere between 35% and 55% of operating costs. Fuel is one of the three largest operating costs in the transport industry, thus even small price fluctuations can have significant consequences. South Africa moves more than 80% of the land-based freight via road freight (and a large amount of the general freight on rail also uses diesel) – one can understand that highly volatile fuel prices have an effect far beyond the road freight industry.

 

Diesel at the Heart of Freight Costs

The October fuel price adjustment sees petrol increasing to R29,88 and R30,25 per litre (inland) which is respectively a 11,6% and 12% per litre increase, whilst diesel increases by R2,84 and R3,24 per litre, depending on the amount of sulphur – resulting in a 10% or 11% increase on the base fuel cost of between 35% and 55%.

Diesel fuels a great majority of freight movement in the country, from line haul trucks that link ports and distribution centres to small delivery vehicles supplying local markets.

Since almost every sector depends on road freight, the changes in diesel prices have an exponential and expanded effect on the logistics industry and, unfortunately, the impact of fuel costs is inevitable.

As noted earlier, fuel is one of the biggest variable expenses and it impacts both short- and long-distance operations – it affects all legs in a logistics chain, and some transporters will now face severe cash flow constraints.

Global Pressures Shaping Local Fuel Prices

Global fuel market dynamics play an enormous role in determining fuel prices – supply and demand remains very relevant in what the (global) customer is prepared to pay for a barrel of oil, as well as the perceived shortage that drives a buying spree and thus the price for a barrel. Secondly, as oil is primarily bought with US Dollars, the value of the Rand against the Dollar plays a further (in our case) negative role in resulting in more expensive fuel at the pump.

Unfortunately, the majority of the petroleum products (crude oil and refined petroleum products) consumed in South Africa is imported, and this directly results in the domestic fuel cost either rising or falling.

The October increase was primarily caused by increasing global oil prices, geopolitical concerns, a weakening Rand and the growing instability in the global supply of energy networks. The political turmoil in major oil producing countries has now caused increased volatility to the market, which has led to worries about possible interruptions to the major distribution and transportation routes.

Oil markets typically react quickly to geopolitical risks, pushing crude prices higher and driving up the cost of refined fuel products downstream. For an economy like South Africa that imports oil, the outcome is often inevitable: higher domestic energy prices.

The Ripple Effect Across Logistics

Again, the fuel price increase does not end at the pump price – once fuel prices increase, the cost of moving goods from production sites to distribution centres, and finally to retailers is all exposed to price increases.

Road freight plays a crucial role in the long-distance moving of goods among ports, factories, warehouses, and retail locations.

Freight companies need to remain financially viable, and thus transport companies must choose whether to increase their rates (by a variety of factors of either full fuel price increase or a percentage thereof), or whether they have the financial reserves to withstand the increases. The latter will place pressure on cashflow and reserves. Rate adjustments are often inevitable due to the recurring fuel price strain, even if some transport operators may temporarily withstand the cost to preserve contracts and relationships with clients.

How Operators Are Managing Volatility

The transportation sector has grown increasingly defined by the volatility of fuel prices, and many transport companies adjust by reducing the volume of fuel used – fleet managers lever telematics technology, fuel choice, optimal routing software, driver training, new engine / vehicle technologies, congestion and standing time minimisation / avoidance and even load sharing.

Environmentally friendly driving techniques, better vehicle maintenance, and more sophisticated logistics planning are now essential resources for controlling operating expenses. 

Fuel adjustment methods have been incorporated in several transport contracts, enabling operators to partially compensate for the rapid price changes without disrupting long-term commitments. These approaches may reduce the effects of the rising fuel prices; however, they are not sufficient to eradicate them.

Navigating an Uncertain Road Ahead

The fuel price increase illustrates how vulnerable the country’s transport sector is to international energy trends.

Unfortunately, it is difficult to completely rule out further fuel price increases – already there are indicators are that South Africa is heading towards further fuel price increases in November, should the tensions in the Middle East not be resolved. The ongoing geopolitical tension and the surge in risk, coupled with the supply and demand factor, adaptability will continue to be vital for South Africa’s freight sector.

Transport companies’ strategies for navigating this increasingly unstable operating environment will continue to be shaped by limiting fuel use, enhancing operational efficiency, and preparing for unpredictability.

One thing is certain: In a country that is dependent on road freight, such as South Africa, every adjustment in the price of diesel has consequences extending past the petrol pump, it goes deep into the transport systems that keep the country running.

Gavin Kelly, CEO of the Road Freight Association (RFA), standing in front of a passing green freight truck.

Gavin Kelly, CEO of the Road Freight Association

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