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Rail renaissance based on strategic market segmentation principles

Southern African Business Review

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Title Rail renaissance based on strategic market segmentation principles
 
Creator Havenga, JH
 
Subject rail renaissance, market segmentation, South Africa, state of logistics, modal shift, freight flows
 
Description South Africa’s annual State of Logistics survey indicates that themajority of dense, long-distance surface freight is transported byroad, placing severe constraints on the country’s freight logisticsinfrastructure and posing a significant exogenous risk to thegrowth aspirations of the country. This risk is attributable to theexcessive demand for road freight transport, which is dependenton imported fuel at highly unstable prices and is more damagingto the environment – leading to uncertain future offset charges. Arail solution can utilise locally generated electricity (currently coalbased,but partially switchable to renewable energy in the future). The critical requirement, however, is to determine exactly how much freight, and specifically which freight, can switch to rail. In order to identify the freight flows that will exploit rail’s economic fundamentals, a market segmentation model was developed. A feasible target market was identified that enables key stakeholders (government, the national railroad and major road service providers) to engage in ensuring that the urgent planned R300 billion infrastructure spending by the public and private sectors is invested in suitable freight logistics infrastructure to support the country’s growth ideals sustainably.Key words: rail renaissance, market segmentation, South Africa, state of logistics, modal shift, freight flows
 
Publisher College of Economic and Management Sciences (UNISA)
 
Contributor —
 
Date 2013-02-15
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://www.ajol.info/index.php/sabr/article/view/85453
 
Source Southern African Business Review; Vol 16, No 1 (2012); 1-21
1998-8125
1561-896X
 
Language eng
 
Relation https://www.ajol.info/index.php/sabr/article/view/85453/75385
 
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