The total land freight market in South Africa is estimated to be a minimum of about 734 million tons of cargo shipped based on available 2013 statistics.

The total income derived from shipping this cargo amounted to R135 billion or 3.05% of the country’s GDP. Of the 734 million tons of cargo, 521 million tons were shipped by road and 213 million by rail, with the mining industry representing approximately 32% and the manufacturing sector approximately 13% of the cargo transported. According to BMI Research, forecasts for the South African freight transport sector are positive across all modes in 2015 – air, road, rail, and through the country’s ports. It was forecast that the economy will see a partial recovery from 2014’s anaemic growth of 1.4%, and a real expansion of 2.5% was forecast for 2015.
In light of the significant growth opportunities in the logistics sector in general, Labat has identified a significant opportunity for consolidating some of the various remaining medium sized suppliers in this industry, through acquisitions, into a formidable integrated supplier, capable of taking on substantial projects and benefiting from the South African Government’s policy initiatives promoting the development of black industrialists.