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Benefit for South Africa logistics industry with the establishment of the Multimodal Inland Port Association

Boon for South Africa logistics sector as new Multimodal Inland Port Association launched

Benefit for South Africa's logistics industry with the establishment of the Multimodal Inland Port Association - Supply Chain Tribe by Celerity

With the recent establishment of the Multimodal Inland Port Association, a noteworthy milestone was achieved in the South African logistics industry.

This new association was introduced on May 23, 2024, during the Transport Forum, an online gathering with over 250 delegates and a prominent panel from academics, Transnet, and industry.

The occasion signaled the start of what many are referring to as the nation's rail rebirth.

MIPA fills a crucial gap in the logistics environment in South Africa, where severe congestion and growing costs are posing challenges.

By supporting, encouraging, and lobbying for more freight to be moved from the road to the rail, the group hopes to serve as the national voice for inland ports.

It is now essential to transport more freight by rail due to the rising cost of logistics in South Africa. It is no longer merely a nice-to-have, according to MIPA Chairman Warwick Lord.

MIPA seeks to promote trade activities that align with social goals, encourage private investment in the rail sector, and expedite the critical transition of commodities from the road to the rail.

Logistics expenses can be decreased and efficiency raised by optimizing industrial and logistics operations through effective multimodalism.

The association, which was founded by prominent players in the transportation industry, such as the Tambo Springs Development Company, Portfutures, Autoforce, Mac Group, Cape Town Inland Port, the Cape Winelands Airport, the Musina Intermodal Terminal, RailRunner South Africa, and RailRunner Services, is dedicated to working together on best practices, especially when it comes to private sector participation (PSP).

It will collaborate closely with state-owned businesses and the government.

Our goal is to unite inland ports under a single voice, promoting practical multimodal solutions that improve the South African supply chain's resilience, efficiency, and affordability.

We can guarantee stability in the logistics industry and lessen the effects of outside shocks by doing this, according to Lord.

In order to optimize each supply chain link from a cost and efficiency standpoint, MIPA's strategy to move more goods from the road to the rail includes utilizing cutting-edge multi-nodal technology and enhancing coordination with other freight hubs and stakeholders.

According to Lord, "inland ports improve capacity by combining freight volumes, which lowers distribution costs and increases accessibility through long-distance transport corridors."

Given the growing size of boats, it is essential for sea ports to expand their cargo base, which is made possible by these multi-modal terminals' ability to handle substantial volumes of cargo on a continuous basis.

Inland ports also offer substantial dedicated logistical developments, ease of access to highways and rail, plenty of truck parking, and reduced traffic.

According to Lord, MIPA is committed to supporting sustainable practices and enabling free commerce. The association will assist its members in adhering to the SADC Vision 2050 and the sustainable development goals.

The South African Association of Freight Forwarders (SAAFF) CEO, Dr. Juanita Maree, highlighted the MIPA launch as follows: "We are reaching a tipping moment in our logistics network, where there is greater alignment across the nation than ever before.

Together, we are capable of making great progress.

Fostering ongoing discourse, exchanging insights, and increasing awareness are essential in constructing a sustainable supply chain for the future.

Lord says that MIPA's goal is to increase the number of members it has in order to entice more parties to participate in the discussion.

"In the logistics and supply chain environment, the business community is essential to the growth and development of commerce. Through these avenues, we will advocate for storage, transportation, and consulting companies to become members of MIPA.

Since State-Owned Enterprises (SOEs) are important actors both domestically and internationally, we will also try to incorporate them while promoting a tight working relationship with the government, says Lord.