Transport MODES

The choice of distribution model has cost implications and therefore has an influence on the distribution budget.

The farmer or packhouse has to decide which mode of transport to use to convey the packed product to the market. Cost is the main consideration in making this decision, but not the only one. Other factors include the practicality, reliability, reputation, and general standard of service delivery associated with the different modes of transport and transport contractors.

Export fruit has to be transported from the packhouse to a local depot or port, from there to an overseas port, and from the overseas port to an overseas depot or market. Different modes of transport are in most cases used for the different sectors of this journey.

The inland part of the transport leg can be completed by road or rail, or a combination of the two, depending largely on where the packhouse is located. Almost all cooperative pack houses and some independently run pack houses are located on rail sidings, in which case rail transport is the logical option. However, in many instances, poor rail services, as a result of unreliable capacity, time delays and uncompetitive tariffs, have resulted in road transport being more attractive. Ultimately, market forces will determine what mode of transport is used.

Before the 1980s, a high proportion of farm products were transported from the interior of the country by rail. Today the situation is very different, with a much higher proportion being transported by road, simply as a result of competitive rates and service delivery requirements driving producer decisions.

Sea freight accounts for virtually 100% of the transport mode used to convey farm products from South Africa to its various export markets. This is even the case with African markets other than those with borders close to South Africa.

On rare occasions, air freight is used for exports, but this is usually early in the season of a popular cultivar when a producer and his export agent decide to be the first on a poorly supplied market. Speciality crops that are placed into niche markets are often transported by air. An example of this is air-freighting of blueberries from South Africa to the UK. South African Blueberry exports occur in the months where blueberry is not harvested in Europe. The consumers are then willing to pay a “levy”’ on the produce. In some instances, market prices may, for a short period of time (days), justify the high cost of airfreight.

On arrival at overseas ports, the palletised farm product is conveyed most often by road transport to depots or directly to retailers in the case of supermarkets.

In the case of locally marketed fresh farm products, depending on the quantities of produce involved, the proximity of rail stations, the location and nature of the market to which the products are being sent, and the price quoted, either road or rail is used. Since relatively small volumes of product are sent by any single producer to any specific market, the road is the most commonly used transport mode.

Click here to view a video that explains the marketing distribution channels.