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

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.