How to Start a Successful Transport Company in South Africa in 2024

The South African transport industry is THRIVING, and it is expected to reach $30.56 billion by 2029, making now one of the best times to start your own transport business.

“Why is the Transport Industry in SA Growing?”

1. African Continental Free Trade Agreement (AfCFTA):

This is a trade agreement that makes it easier for African countries to do business with each other by reducing tariffs and other barriers.

This boosts the demand for transport businesses because there is more movement of goods across borders.

2. E-commerce Boom:

Online shopping is growing at an INSANE rate.

More and more people are buying things online, which means more goods need to be delivered.

This creates a lot of opportunities for transport companies to handle deliveries.

3. Businesses Are Outsourcing their Driving:

In SA, there is a shortage of Heavy Goods Drivers, and fuel costs are high – this means many clients are searching for suppliers to transport their goods across the country, instead of doing it themselves like companies used to do.

With these positive trends, starting a transport business in South Africa has never been more promising.

BUT, in order to start a successful transport business, you have to navigate the process correctly…

From planning to registration to execution – we’ve got everything you need to start, run and grow a transport business in South Africa in 2024:

Planning Your Transport Business

“What type of transport business do I want to start?”

First, what sub-industry do you want to go into? What service do you want to offer?

Deciding on this will help you stand out and attract specific clients.

The most popular transport business options are:

• Taxi services (moving people).
• Logistics (moving goods).
• Waste Management (moving waste).

“What costs are involved in starting a transport business?”

• You’ll need to decide on the number and type of vehicles you need, to start off with.
• Starting small with two to five vehicles will help you to keep overheads low.
• You can choose petrol, diesel, or electric vehicles based on your services.
• You’ll also need a business location with easy access to major roads and reasonable rental prices. Pro tip: Warehouses are usually cheaper than commercial properties.

Considering all of this, you’ll need to budget for regular costs like vehicle purchase/leasing, maintenance, fuel, insurance, staff wages, rent, and advertising.

Registering Your Transport Business

Before you can actually hit the road, you have to officially register your business for it to be legal and legit:

Step 1: Register Your Company

Register your company as a Pty Ltd with the Companies and Intellectual Property Commission (CIPC) online or in person.

Here is a helpful online service designed to make the registration process quicker and easier and help you get everything you need done in one place, including:

• Reserved company name
• Company registration certificate (COR14.3)
• Income tax registration number
• CIPC filing fees
• Free B-BBEE affidavit
• Share certificates for all shareholders
• Business banking account

Step 2: Obtain a COID Letter of Good Standing

This will protect your employees if they're injured while working and protects you from having to pay crazy fees and being fined in case of those injuries.

It is a legal requirement from the moment you hire your first employee and you can get it online.

Step 3: Get a Tax Clearance Certificate (PIN)

This is used by departments or contractors to confirm your company’s status at SARS.

You’ll need it if you want to:

• Apply for tenders to do transport for the government.
• Apply for funding
• Import and export goods

You can get your tax clearance certificate sorted out online, quick and easy.

Other Licences You Might Need

Depending on your chosen transport niche, you might need additional licences:

Licence for a Taxi Business:

Obtain a Public Operating Licence from the National Public Transport Regulator (NPTR) or your municipality.

You'll need:

• RSA identity document / company registration certificate.
• Valid driver's licence.
• SARS Tax clearance certificate.
• Proof of insurance.
• Vehicle licence disc and road-worthy certificate.
• Registration certificate of the vehicle.

Licence for a Logistics Company:

An NPTR (National Public Transport Regulator) Operating Licence allows you to deliver goods for profit.

You’ll need:

• Your ID/passport
• A valid driver's licence
• COR 14.3 (CIPC company registration certificate)
• SARS Tax clearance certificate

You can get it from your nearest NPTR branch.

Licence for Waste Management:

Obtain a Waste License from the Department of Environmental Management in your province.

“What insurance do I need for my transport business?”

• Fleet Insurance: Covers your vehicles.
• Goods in Transit Insurance: Covers the items you transport.
• Public Liability Insurance: Protects against costs from third-party injury or property damage.
• Professional Indemnity Insurance: Covers client losses due to negligence in your services.
• Employer’s Liability Insurance: Legally required if you employ staff, covering illness or injury resulting from work.
• Bonus – Train Your Drivers: This isn’t a direct form of insurance, but will save you money and reduce risk in the long run – investing in advanced driver training certificates for your drivers to make sure they can handle the job safely and efficiently.
  
  

Bonus Tip: Sign Up to a Freight Exchange

Freight exchanges are platforms where transport companies can find work opportunities, find trustworthy drivers, and network in the industry.

Examples of freight exchanges include:

• Truckit: A South African platform connecting transport companies with clients needing freight services.
• Freight Exchange: An online marketplace where transport providers can list available capacity and find transport jobs.

How to Get Government Work

Register on the Central Supplier Database (CSD) if you plan to transport goods for large suppliers or the government.

Ready to Hit the Road?

Once you've completed these steps, you're well on your way to launching your transport business.

With dedication, hard work, and the knowledge you've gained from this guide, you can turn your dream of owning a successful transport company in South Africa into a reality. Good luck!

Remember – if you have any questions or need any assistance with your registration, feel free to reach out to our Support Team, we’re here to help!