Jan Hendrik Havenga and Zane Paul Simpson
The purpose of this paper is to present the results of South Africa’s national freight demand model and related logistics cost models, and to illustrate the application of the…
Abstract
Purpose
The purpose of this paper is to present the results of South Africa’s national freight demand model and related logistics cost models, and to illustrate the application of the modelling outputs to inform macrologistics policy.
Design/methodology/approach
Spatially and sectorally disaggregated supply and demand data are developed using the input-output (I-O) model of the economy as a platform, augmented by actual data. Supply and demand interaction is translated into freight flows via a gravity model. The logistics costs model is a bottom-up aggregation of logistics-related costs for these freight flows.
Findings
South Africa’s logistics costs are higher than in developed countries. Road freight volumes constitute 80 per cent of long-distance corridor freight, while road transport contributes more than 80 per cent to the country’s transport costs. These challenges raise concerns regarding the competitiveness of international trade, as well as the impact of transport externalities. The case studies highlight that domestic logistics costs are the biggest cost contributor to international trade logistics costs and can be reduced through inter alia modal shift. Modal shift can be induced through the internalisation of freight externality costs. Results show that externality cost internalisation can eradicate the societal cost of freight transport in South Africa without increasing macroeconomic freight costs.
Research limitations/implications
Systematic spatially disaggregated commodity-level data are limited. There is however a wealth of supply, demand and freight flow information collected by the public and private sector. Initiatives to create an appreciation of the intrinsic value of such information and to leverage data sources will improve freight demand modelling in emerging economies.
Originality/value
A spatially and sectorally disaggregated national freight demand model, and related logistics costs models, utilising actual and modelled data, balanced via the national I-O model, provides opportunities for increased accuracy of outputs and diverse application possibilities.
Details
Keywords
South Africa's logistics cost measurement was expanded to include externality costs, and scenarios based on the key exogenous risks were developed to inform mitigation strategies…
Abstract
Purpose
South Africa's logistics cost measurement was expanded to include externality costs, and scenarios based on the key exogenous risks were developed to inform mitigation strategies. This paper aims to discuss these issues.
Design/methodology/approach
The research approach is quantitative, based on a gravity-orientated freight flow model, a road transport cost model, actual transport costs for other modes, a warehousing cost survey, an inventory delay calculation (to inform warehousing cost calculations and inventory financing costs) and an externality cost calculation.
Findings
Transport cost pressures are expected to deteriorate due to the increasingly negative outlook for the oil price and the internalisation of externality costs. The nature of these forces compels transport cost challenges to be addressed strategically through collaborative, industry-wide and even nationwide initiatives.
Research limitations/implications
Key limitations are inconsistent commodity classification schemes across information sources, and incomplete container content data. The researchers are collaborating with information providers to address these issues and refine model accuracy and forecasting.
Practical implications
The exogenous risks strengthen the argument for new approaches to South Africa's logistics cost challenges driven by the high densities of corridor freight flows.
Social implications
The inclusion of externality costs highlighted the negative environmental impact of the current modal configuration and provides impetus for change.
Originality/value
Major advancements to logistics cost modelling were made by incorporating externality costs and developing scenarios for risk mitigation. Freight flow data granularity (in excess of one million records) allows both aggregation to national-level intelligence to inform policies, large-scale infrastructure investments and industrial positioning, and disaggregation to enable practical application.
Details
Keywords
Jan C. Visagie and Christoff J. Botha
South Africa’s entry into the 1990s has been dramatic. Changes are taking place on political, social and economic fronts at an increasingly rapid pace and past practices are being…
Abstract
South Africa’s entry into the 1990s has been dramatic. Changes are taking place on political, social and economic fronts at an increasingly rapid pace and past practices are being openly challenged. Changes invoke concerns, fears and hopes. Rather than resisting the reform process, one must concentrate on managing it. The changes taking place in South Africa at present have influenced all people in some or other way. The nature and consequences of this process of changes are, as yet, not fully understood.
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Keywords
Helen Frances Harrison, Elizabeth Anne Kinsella, Stephen Loftus, Sandra DeLuca, Gregory McGovern, Isabelle Belanger and Tristan Eugenio
This study aims to investigate student mentors' perceptions of peer mentor relationships in a health professions education program.
Abstract
Purpose
This study aims to investigate student mentors' perceptions of peer mentor relationships in a health professions education program.
Design/methodology/approach
The design uses embodied hermeneutic phenomenology. The data comprise 10 participant interviews and visual “body maps” produced in response to guided questions.
Findings
The findings about student mentors' perceptions of peer mentor relationships include a core theme of nurturing a trusting learning community and five related themes of attunement to mentees, commonality of experiences, friends with boundaries, reciprocity in learning and varied learning spaces.
Originality/value
The study contributes original insights by highlighting complexity, shifting boundaries, liminality, embodied social understanding and trusting intersubjective relations as key considerations in student peer mentor relationships.