<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META content="text/html; charset=iso-8859-1" http-equiv=Content-Type>
<META content="MSHTML 5.00.2314.1000" name=GENERATOR></HEAD>
<BODY bgColor=#ffffff
style="FONT: 10pt Arial; MARGIN-LEFT: 2px; MARGIN-TOP: 2px">
<DIV>My name is Mac Mashiri. I am the incumbent convenor of the South African
NFG. I work for the CSIR in Pretoria.</DIV>
<DIV> </DIV>
<DIV>When the inhabitants of a selection of rural villages in the Northern
Province, South Africa, were asked what they would do if their accessibility
improved, most replied that they would [i] take their products, their services
and their labour to bigger and more diverse markets; and /or [ii] access higher
education and training. These responses appear to suggest that many rural
communities are keenly aware of the overriding need to enhance the marketability
of their products and labour in the wider, mainstream economy. However, rural
transport services are inadequate. This situation has been exacerbated by the
inabaility of service providers to provide adequate services without the
prospect of government subsidies or big enough market to reduce fixed costs
and/or produce sufficient economies of scale. Villagers are thus, for example,
oblidged to either pay exorbitant prices for the purchase of goods and services
or sell theirs at a give away to merchants/local shop owners because
distribution centres/markets are relatively inaccessible. The merchants
generally charge high prices to offset high transport and handling costs
necessitated by the low volumes of transactions. This has the effect, inter
alia, of discouraging enterprising villagers from exploiting opportunities to
produce for the market, thereby stunting the will to produce beyond their
subsitence requirements. </DIV>
<DIV> </DIV>
<DIV>In this regard, and in the context of South Africa, the response by
mainstream producers and distributors would typically be to develop highly
synchronised, bulk-efficient supply chains, connected to large or medium-sized
centres, supported by computerised market information. While this model
economizes on inventory and handling costs, it consumes large amounts of
transport and energy resources. Labour-intensive small-scale producers and
distributors are marginalised because of their inability to compete on the same
terms. Clearly this model is inappropriate for developing rural communities.
</DIV>
<DIV> </DIV>
<DIV>Instead of the current static conception of how products and services
should be distributed to spatially dispersed communities, Transportek has been
advocating the need to explore innovative and developmentally
effective rural logistics solutions. Solutions would need to adequately
respond to and reconcile competing demands for [a] accessing social facilities
& transporting people [b] accessing economic opprtunities & transporting
goods and services. Transportek defines this phenomenon it calls integrated
rural logistics as: a combination of rural communications, freight and
passenger transport and storage/exchange services aimed at [i] exploiting
possible synergies with allied services [ii] effectively
harnessing information & communication technologies, &
[iii] leveraging any related innovations, in order to provide affordable and
effective access to an expanding range of local as well as mainstream supply
chains, business support services and markets. </DIV>
<DIV> </DIV>
<DIV>Preconditions for sustainability of rural logistics</DIV>
<DIV>Particular emphasis needs to be given to a balanced package of locational,
infrastructural and operational measures. [i] Locational measures can
include the clustering of new housing, infrastructure and facilities in terms of
selected activity nodes and satelite centres [ii] Infrastructural measures
include the adoption of a holistic, integrated approach to planning of roads,
telecommunications, public facilities and multi-purpose centres [iii]
Operational measures include [a] the coordination of periodic transport, service
provision and market schedules [including aspects such as routes, stopping
places & service times [b] information provision, regulation and selective
subsidization in support of the coordinated schedules, centres and services [c]
facilitation of freight collection/distribution services for incipient
enterprises e.g. tourism, agro-forestry processing, etc. </DIV>
<DIV> </DIV>
<DIV>In the case of South Africa, the requisite linkage development process
would be at the district level, and could involve: [i] Nodal facility and
activity clustering [here you develop multi-purpose community centres complete
with a range of supporting services and periodic markets [ii] Integrated
development of 'linkage infrastructure' [road network and information and
telecommunication network] and [iii] Development of 'omnibus'
logistical support services [passenger transport services, postal and
small-freight services]. This exercise should be preceeded by contextual
spatial-economic analysis [the existing or potential economic base, local
economic development strategies, and policies to redress possible structural
distortions]. </DIV>
<DIV> </DIV>
<DIV>These are some of the rural transport services issues and possible
solutions that we are currently grappling with.</DIV>
<DIV> </DIV>
<DIV>Regards,</DIV>
<DIV> </DIV>
<DIV>Mac Mashiri, CSIR, Transportek PO Box 395 Pretoria 0001 South Africa Tel:
+27 12 841-2942 Fax: +27 12 841-4054 E-mail: <A
href="mailto:mmashiri@csir.co.za">mmashiri@csir.co.za</A>
</DIV>
<DIV> </DIV></BODY></HTML>