Title: Intermodal solutions for the South African fast-moving consumer goods sector

Authors: Zane Simpson; Anneke De Bod; Jan Havenga; Esbeth Van Dyk; Isabel Meyer

Addresses: Department of Industrial Engineering, Stellenbosch University, Private Bag X1, Matieland 7602, South Africa ' Department of Logistics, Stellenbosch University, Private Bag X1, Matieland 7602, South Africa ' Department of Logistics, Stellenbosch University, Private Bag X1, Matieland 7602, South Africa ' Department of Logistics, Stellenbosch University, Private Bag X1, Matieland 7602, South Africa ' Department of Industrial Engineering, Stellenbosch University, Private Bag X1, Matieland 7602, South Africa

Abstract: Macro-level logistics cost and flow modelling have highlighted intermodal solutions as a means of optimising key South African (SA) freight corridors. This paper explores the critical success factors for translating the macro opportunity to a sustainable intermodal solution for the Fast-Moving Consumer Goods (FMCG) sector. The study identifies a significant growth opportunity for FMCG freight on rail, characterised by stable, naturally unitised volumes of low-price elasticity. Intermodal solutions have the potential to facilitate a significant shift of freight from road to rail, thus reducing environmental impact. However, adoption of an intermodal solution requires a more flexible, focused and responsive engagement from the rail service provider. The study succeeds in translating the quantified macro-level argument for intermodal solutions to the organisational implications and next tactical steps for the FMCG industry, to position towards sustainable implementation of intermodal solutions.

Keywords: intermodal solutions; rail freight; road freight; logistics cost modelling; freight flow modelling; South African FMCG sector.

DOI: 10.1504/WRITR.2021.117664

World Review of Intermodal Transportation Research, 2021 Vol.10 No.3, pp.179 - 201

Received: 12 Oct 2020
Accepted: 09 Mar 2021
Published online: 20 Sep 2021 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article