More than three-quarters of the trucks in KwaZulu-Natal cancelled or delayed trips last week, highlighting the scale of supply chain disruption from the rioting and looting frenzy, which further whacked SA’s fragile economic prospects.
Netstar, which provides vehicle-tracking fleet management services to the transport industry, said more than 30,000 trips were put on hold as crowds went on the rampage, setting ablaze commercial buildings and torching dozens of trucks on the N3 highway.
The riots, which President Cyril Ramaphosa described as a failed insurrection last week, led to the days-long closure of the highway, the artery between SA’s biggest harbour, in Durban, and its Gauteng economic hub.
The SA Property Owners Association (Sapoa) has said the cost to the economy, which is not expected to recoup losses in 2020 when it slumped the most in a century during the pandemic, is likely to top R50bn.
Netstar, a unit of technology group Altron, said three large clients lost more than 613,000km of travel in just five days, equivalent to circumnavigating the globe 15 times, though the average number of trips returned to near normal towards the end of the week in most provinces.
According to the telematics company, between July 10 and 16 its clients’ ability to deliver goods countrywide fell more than 74% compared with the previous three months.
KwaZulu-Natal was affected most, with more than 78% of transport vehicles being unable to travel during the violent protests sparked by the jailing of former president Jacob Zuma before descending into a looting frenzy and destruction of property that left more than 200 people dead.
Gauteng was severely hit initially, with nearly half of all trucks standing still.
“The trucking industry is the lifeblood of our economy as [it plays] a critical role in getting goods to market and keeping the wheels of trade turning,” Netstar MD Pierre Bruwer said.
Netstar said the industry, dominated by Imperial Logistics, started to show signs of recovery towards the end of the week with the average number of trips returning to near normal, except in KwaZulu-Natal.
Limpopo, Mpumalanga and the North West were the least-affected provinces.
Netstar is among dozens of companies tallying up losses from the riots, which dented SA’s image as a safe destination for private capital at a time when it needs companies to lead economic recovery efforts with investments in factories, stores and warehouses.
Property companies, banks and retailers have issued investor updates on the damage suffered to their properties and inventories. African Bank said on Wednesday that 8%, or 32, of its branches were extensively damaged in last week’s rampage. It is in the process of recasting itself as a fully fledged banking group after being rescued from collapse as a result of unpaid unsecured loans.
The Banking Association SA said on Friday that more than 1,400 ATMs were vandalised, with unrest also affecting more than 300 bank branches and post offices.
Mr Price said 111 stores were wrecked, confirming the scale of the damage in which more than 200 shopping centres were vandalised.
Sapoa, which speaks for 800 member companies and organisations, said this week that as many as 11 warehouses, eight factories and 161 liquor outlets and distributors were extensively damaged.
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