Environmental sustainability and operational performance in the road freight sector

Abstract

Road freight plays a pivotal role in the movement of goods from the point of production to the point of consumption. Transportation of freight by road is associated with high operational costs which increases cost of landed goods. The use of trucks is associated with greenhouse gas (GHG) emissions and congestion especially in urban areas. The trucking industry dominates freight movement in many countries including South Africa, necessitating the need to improve its operational performance. While researchers argue that implementation of environmentally sustainable practices (ESP) by trucking firms is likely to influence operational performance (OP), the actual effect is unknown. The purpose of this study was to investigate the effect of ESPs on OP among trucking firms. A survey of 124 trucking firms was conducted and the data was analysed using canonical correlation analysis. The ESPs identified were energy efficiency, driver behaviour, and advanced technology. The results revealed that there is an inverse relationship between ESPs and OP, with advanced technology being a major contributing practice to the relationship. Limited funding was identified as a major inhibitor to the implementation of ESPs among the trucking enterprises. This study informs managers of trucking enterprises that the implementation of environmentally sustainable practices would not likely result in higher operational performance, as such, they should implement the practices as a social good as opposed to for profits. The study investigated a complex phenomenon in an important sector of the economy in South Africa and provide some policy directions.