South Africa Third-Party Logistics (3PL) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The South Africa Third-Party Logistics (3PL) market is segmented by Service (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution), and by End-Users.

Market Snapshot

South Africa Third-Party Logistics (3PL) Market Size
Study Period: 2016 - 2026
Base Year: 2021
CAGR: >8 %
3PL Market Companies in South Africa

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Market Overview

The South African Third-Party Logistics (3PL) market is expected to register a growth rate of over 8% during the forecast period of 2020-2025. The growth in the market is driven by the growth in the intra-continental trade. Moreover, the change in the consumption patterns and growth in the e-commerce orders also form a part of drivers of the market growth with the higher generation of demand for logistics services.

South Africa being relatively under-developed in the logistics sector, is expecting huge and fast changes in the coming decade. These are supported by the government regulations, increasing outsourcing of the services by the companies and increasing consumer expectations of better service.

Scope of the Report

A comprehensive background analysis of the South Africa Third-Party Logistics (3PL) Market, covering the current market trends, restraints, technological updates and detailed information on various segments and competitive landscape of the industry. The impact of COVID-19 has also been incorporated and considered during the study.

By Service
Domestic Transportation Management
International Transportation Management
Value-added Warehousing and Distribution
By End-User
Manufacturing & Automotive
Oil & Gas and Chemicals
Distributive Trade (Wholesale and Retail trade including e-commerce)
Pharma & Healthcare
Construction
Other End Users

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Key Market Trends

AfCFTA to Increase Intra Regional Trade

The intra-Africa trade currently is limited to 15% of Africa’s total trade, indicating a very weak intra-regional value chain as compared to Asia, where it is at 80%. With the introduction of the African Continental Free Trade Agreement (AfCFTA), which is the world's largest free trade zone signed by 54 countries and is expected to revolutionise trade across the continent, the trade volume and hence the economy of the continent is expected to grow significantly. The act will focus on increasing the production capabilities in an exceedingly competitive global landscape.

The African government is under talks to develop the roads, railway and maritime connectivity of the countries. Nigeria and South Africa - the biggest economies on the continent of Africa are under talks of collaborative work to build road network on the continent.

The restoration and improvement of the Maputo corridor has successfully boosted bilateral trade flows between South Africa and Mozambique leading to more than USD 5 billion worth of investments and developments, construction and operation of transport, logistics, energy, and industrial ventures along the corridor.

France, one of South Africa's privileged partners, is investing in the country's railway industry in collaboration with local companies. The French-South African collaboration is proving particularly successful, with an ongoing partnership between Alstom, the French-based multinational transport company where in October 2019, Alstom inaugurated a modernised rail factory in Ekurhuleni in South Africa.

South Africa 3PL Market Share

Developments in Cold Chain Market

In recent years, the consumption of meat, canned fruits and vegetables, packaged food has risen over the years with the growing middle class. The demand from the healthcare sector has also increased over the years for the storage of drugs, vaccines and medical equipment. In order to balance the increasing demand with the supply of the services, the companies are actively evolving not only to provide a faster service but also reduce the carbon emission to a minimum in the process.

Among recent developments, in November 2019, RCL Foods has announced a deal with Imperial Logistics expanding to provide efficient operations in cold chain service.

June 2019 evidenced the opening of the latest cold storage facility from SAFT (Southern African Fruit Terminals) having the 5,500 pallet capacity facility spread across 17,105 sq. meter of warehousing space. This location provides easy accessibility to farmers and cooperatives transporting fruit for export along with the Cape Town Harbour and facilities in Killarney Gardens and Paarl.

Thermo King - global leader in transport refrigeration and heating for trailers, trucks, buses, rail cars and shipboard containers, in March 2020, launched fully electric multi-temperature unit with hold-over capacity on Mercedes-Benz sprinter vans providing an all-in-one transport refrigeration solution that allows customers to maintain up to two cooling zones in the vehicle and keep the refrigeration unit running without any emissions while the driver stops for delivery, break or needs to turn off the vehicle for longer.

South Africa 3PL Market Trends

Competitive Landscape

The market is highly fragmented with a large number of local and international players such as Imperial Logistics, DB Schenker, Panalpina Logistics- Bidvest, Value Logistics and Kuehne + Nagel as its key players. The market has high potential to develop with the expected increase in inland and foreign trade. The companies are aiming at maximum expansion in alliance to the developments in the market whilst have minimum carbon emissions and maximum implementation of renewable resources to produce energy.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain / Supply Chain Analysis

    4. 4.4 Government Regulations and Initiatives

    5. 4.5 General Trends in Warehousing Market

    6. 4.6 Demand From Other Segments, such as CEP, Last Mile Delivery, Cold Chain Logistics Etc.

    7. 4.7 Insights on E-commerce Business

    8. 4.8 Technological Trends and Automation

    9. 4.9 Industry Attractiveness - Porter's Five Forces Analysis

    10. 4.10 Impact of COVID-19 on the market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Service

      1. 5.1.1 Domestic Transportation Management

      2. 5.1.2 International Transportation Management

      3. 5.1.3 Value-added Warehousing and Distribution

    2. 5.2 By End-User

      1. 5.2.1 Manufacturing & Automotive

      2. 5.2.2 Oil & Gas and Chemicals

      3. 5.2.3 Distributive Trade (Wholesale and Retail trade including e-commerce)

      4. 5.2.4 Pharma & Healthcare

      5. 5.2.5 Construction

      6. 5.2.6 Other End Users

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (market concentration and major players)

    2. 6.2 Company Profiles

      1. 6.2.1 Bidvest International Logistics

      2. 6.2.2 Kuehne + Nagel

      3. 6.2.3 DSV

      4. 6.2.4 Barloworld Logistics

      5. 6.2.5 OneLogix

      6. 6.2.6 DPD Laser Express Logistics

      7. 6.2.7 Value Logistics

      8. 6.2.8 Bollore Logistics

      9. 6.2.9 CEVA Logistics

      10. 6.2.10 Vital Distribution

      11. 6.2.11 Transnova

      12. 6.2.12 DHL

      13. 6.2.13 DB Schenker

      14. 6.2.14 City Logistics

      15. 6.2.15 United Parcel Service*

    3. *List Not Exhaustive
  7. 7. FUTURE OF SOUTH AFRICA 3PL MARKET

  8. 8. APPENDIX

    1. 8.1 Macroeconomic Indicators (GDP Distribution, by Activity, Contribution of Transport and Storage Sector to economy)

    2. 8.2 External Trade Statistics - Exports and Imports, by Product

    3. 8.3 Insights into Key Export Destinations and Import Origin Countries

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Frequently Asked Questions

The South Africa Third-Party Logistics (3PL) Market market is studied from 2016 - 2026.

The South Africa Third-Party Logistics (3PL) Market is growing at a CAGR of >8% over the next 5 years.

Bidvest International Logistics, Kuehne + Nagel, DSV, Barloworld Logistics, Onelogix are the major companies operating in South Africa Third-Party Logistics (3PL) Market.

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