60
AUGUST 2015 | R85.00 ON TRANSPORT AND LOGISTICS focusontransport.co.za Could HCVs become haulage heroes? Building a public transport environment Testing the latest lightweights in the Arctic Supply chain survival: management failing ONE FLEET 200 FREIGHTLINERS, COUNTLESS HAPPY CUSTOMERS

Focus August 2015

Embed Size (px)

DESCRIPTION

FOCUS on Transport and Logistics is the only magazine that is truly part of the industry. It features key themes within the transport industry, with viewpoints form experts in various fields. Pertinent issues are also covered throughout the year, from changes in labour legislation and cross-border policy to fleet optimisation through logistics, warehousing and distribution. Operational issues such as vehicle security, tyre maintenance and fleet management are also covered regularly. If there’s a story to be told, you can guarantee FOCUS will publish it first! So be in the know and focus on some transport.

Citation preview

  • AU

    GU

    ST 2

    01

    5 |

    R8

    5.0

    0

    On TranspOrT and LOgisTicsfocusontransport.co.za

    Could HCVs become haulage heroes?

    Building a public transport environment

    Testing the latest lightweights in the Arctic

    Supply chain survival: management failing

    One fLeeT200 Freightliners,

    countless happy customers

  • ??????????

    b |FOCUS| August 2015

    P00165.indd 1 2015/07/29 5:52 PM

  • August 2015 |FOCUS| 1

    cOnTenTs18

    10

    50

    Follow us facebook.com/focus_mag twitter @FOCUSmagSA

    2014

    On TranspOrT and LOgisTics

    One of the biggest Freightliner fleets conists of more than 200 vehicles. Find out why on page 8.

    COver

    Published monthly by Charmont GlobalUnit 17, Northcliff Office Park, 203 Beyers Naude Drive,

    Northcliff, 2195. P O Box 957, Fontainebleau, 2032, South AfricaTel: 011 782 1070 Fax: 011 782 1073 /0360

    eDITOrCharleen Clarke

    Cell: 083 601 0568email: [email protected]

    ASSISTAnT eDITOrGavin Myers

    Cell: 072 877 1605 email: [email protected]

    SUB-eDITOrJeanette Lamont

    Cell: 083 447 3616email: [email protected]

    JOUrnALISTSJaco de Klerk

    Cell: 079 781 6479email: [email protected]

    Claire RenckenCell: 082 559 8417

    email: [email protected]

    InDUSTrY COrreSPOnDenTFrank Beeton

    Tel: 011 483 1421Cell: 082 602 1004

    email: [email protected]

    TeCHnICAL COrreSPOnDenTVic Oliver

    Cell: 083 267 8437email: [email protected]

    PUBLISHerTina Monteiro

    Cell: 082 568 3181email: [email protected]

    ADverTISInG SALeSMargaret PhillipsonCell: 083 263 0451

    email: [email protected]

    CIrCULATIOn MAnAGerBev Rogers

    Cell: 078 230 5063email: [email protected]

    DeSIGn AnD LAYOUTNelio da Silva

    email: [email protected]

    PrInTInGCamera Press

    Copyright. No articles or photographs may be reproduced, in whole or in part, without specific written permission from

    the editor. 2 Steering Column 4 Wheel Nut 6 Vics View 7 Letters40 Global Focus46 Short Hauls48 Naamsa figures49 Subscription form54 Global bus55 Hopping off

    reGULArS

    10 HeAvY TIMeS

    A proposed ban on vehicles in excess of nine-tonnes from urban areas for six hours a

    day has the industry up in arms. With many pertinent questions to answer, we ask how

    (should this legislation be forced on the industry) this might affect the heavy commercial

    vehicle segment of the market.

    14 MAnAGeMenT: A WeAK LInK In THe (SUPPLY) CHAIn?

    Rapid change is a permanent feature in the economy. This is highlighted in the 12th

    supplychainforesight study released by Barloworld Logistics. With new technologies,

    cut-throat competition and competitive ecosystems, the ability to make key shifts and

    transform from within is becoming essential for survival.

    22 HeAvY-DUTY HeeLS

    Since August is Womens Month, its the perfect time to reflect on what women have

    achieved in the local transport industry.

    32 A vAn TeST In THe ArCTIC

    Seen as the top set of trials in Europe, the 2015 instalment of the annual Arctic Van Test

    has showed how similar modern competitor vehicles have become.

    50 BUILDInG An envIrOnMenT FOr PUBLIC TrAnSPOrT

    The recent Southern African Transport Conference featured an array of sessions about

    urban public transport development in South Africa. Are our cities on the road to public

    transport greatness?

    AUGUST

    c h a r m o n tm e d i a g l o b a l

  • 2 |FOCUS| August 2015

    STeerInGCOLUMn

    EduTrans: ACT Engineering, African Bank,

    Bandag, Brainwave Careers, Checkpoint,

    Elite Fibre, Ford Motor Company of South

    Africa, Foton Trucks SA, Hino South Africa,

    Irizar, Kanu Commercial Body Construction,

    Mercedes-Benz South Africa, Peugeot Citron

    South Africa, The Recycling and Economic

    Development Initiative of South Africa

    (Redisa), UD Trucks Southern Africa and

    Volvo Trucks South Africa. A very special

    thanks to MAN Truck & Bus South Africa for

    sponsoring the cover.

    Many university and further education

    and training (FET) options specific to the

    industry are discussed, as are the availability

    of bursaries, scholarships, learnerships and

    training programmes.

    EduTrans was introduced in order to

    alleviate the skills crisis within the wheels

    game in South Africa. According to the

    latest Adcorp Employment Index (a monthly

    survey conducted by JSE-listed human

    capital management group, Adcorp), there

    are currently as many as 829 800 unfilled

    positions for highly skilled workers across a

    wide range of occupations in South Africa.

    Many of these positions apply to the

    motor and transport sectors, which are also

    desperately in need of people with hands-on

    and practical skills diesel mechanics, for

    instance.

    In fact, the skills shortage has widely

    been described as one of the single biggest

    i am hugely proud to tell you that

    thousands of copies of EduTrans are

    currently being distributed to schools

    and educational institutions across

    South Africa.

    Published by Charmont Media Global,

    publisher of FOCUS, EduTrans provides

    learners with advice to help them decide

    on a career; opening the eyes of learners

    to the plethora of career possibilities in the

    automotive sector.

    It has been made possible thanks to the

    unfailing support of a number of forward-

    thinking companies in our sector.

    I would specifically like to thank the

    following companies for their support of

    challenges facing the wheels sector.

    Some of the various careers discussed in

    EduTrans include those of driving instructor,

    vehicle technician, motoring journalist, panel

    beater and road planner.

    Significantly, the information contained

    within the guide is truly practical. For instance,

    the guide contains essential information on

    these various professions advantages,

    disadvantages, required studies and earning

    potential.

    In addition, for the first time, EduTrans will

    be available to learners on their mobile devices.

    In partnership with the Mxit- and Android-based

    CareerXplora, from the renowned Brainwave

    Careers, the reach of EduTrans will extend to

    thousands of more youths.

    The response we have received from

    educational institutions, thus far, has been

    fantastic. They are hungry for resources such

    as EduTrans and we are proud to be able

    to provide South Africas learners with this

    valuable booklet, says Tina Monteiro, EduTrans

    publisher.

    Charmont Media Global has a limited

    number of run-on copies of EduTrans

    available to FOCUS readers. Please contact

    Bev Rogers at [email protected]

    should you wish to acquire some copies.

    Alternatively, view the online flipbook on our

    website (www.focusontransport.co.za) on our

    mobile app available on the App Store and

    Google Play. |FOCUS

    youngsters in our industry WanTed:

    Charleen Clarke

    The skills crisis is one of our

    industrys greatest challenges.

    After all, without diesel

    mechanics, for instance, the

    wheels of our industry will stop

    turning. At Charmont Media

    Global we are doing our level best

    to address this crisis with a guide

    called EduTrans A Guide to

    Careers in the Wheels Game

    It can be dangerous working on a road where cars

    go flying by at 120 km/h.

    Paperwork:

    You dont need a degree to do construction. Most

    construction companies train their employees to

    do the job they hired them to do. All you need is

    a love of the outdoors and some strong biceps.

    Bucks:

    Not a lot of money to be made. Expect minimum

    wage as a construction worker, but you can make

    more money when you become a foreman or

    team leader.

    We all know what road workers are. They are the

    guys standing next to the road not looking busy

    or waving orange flags. But this statement is

    rather unfair. Building roads really is hard work.

    You might think that you just scrape away the

    bushes and throw on some tar, but its a lot more

    difficult than that.

    Tar, and concrete for that matter, needs to be

    precisely mixed to work. Some of you may know

    how skilled you need to be to mix a potion in

    science class. This is exactly the same thing, only

    on a bigger scale. Precision is really important in

    this job. As important as being an engineer

    many would argue. Road surfaces need to be

    just right The tar needs to be mixed with care

    and it takes ages to get the surface correct.

    More than that, different roads require different

    surfaces. So, not just slapping some tar on the

    ground then.

    Cool stuff:

    Working outside in the sun all day with your

    road-building mates is really cool. You wont have

    to work in some stuffy office and the scenery

    changes every day. And how many people get to

    drive on something they built?

    Lame stuff:

    This is one of the most physically tiring jobs

    you can do. In the summer the heat can get

    unbearable, not to mention the cold in the winter.

    ROAD CONSTRUCTION WORKERWithout roads we would be nowhere. Literally. From the very first time tar was discovered, accidentally by the way, man has been building roads to get from one place to another.

    CAREERS

    8

    study advice

    CAREERXPLORA ON MXIT - YOUR MOBILE CAREER GUIDANCE SUPPORT Choices, choices, choices thats what you are faced with during high school. What you decide will affect the rest of your life, so you need to choose carefully

    faced with during high school. What you decide

    What career path will you choose? What subjects

    will you choose? What do you want to be when

    you grow up?

    If you are struggling to decide which subjects to

    choose, or if you have no idea what to do when you

    leave school, then welcome to CareerXplora the

    Mxit app with all the answers.

    This Brainwave Careers (NPC) mobile career

    guidance helpline is an innovative, virtual helpline,

    where any person using a cellphone, can seek

    career-related advice via the Mxit platform.

    Key differentiators of CareerXplora are:

    inexpensive to use; text based (social platforms are the language of

    the youth); easy to access anywhere (internet cellphone

    based); help is provided to all regardless of age, race, religion or gender.

    The learners first register when completing the

    career guidance quiz and thereafter biographical

    information is captured.

    CareerXplora (previously MobieG) was launched

    on March 12, 2012, and has already supported

    more than 79 441 learners with career

    information, guidance and tertiary information.

    Due to Brainwave Careers main focus in career

    guidance, a Career Chat Room has been set-up in

    Randburg. Because social exchanges operate via

    the internet, there are no geographical borders.

    The highly qualified management team are

    exceptionally knowledgable and have been a

    part of the process from the beginning of Career

    Xplora. The facilitators are friendly and have

    up-to-date knowledge on all things career related.

    For career related support please log-on and

    chat with the knowledgeable facilitators at

    CareerXplora!

    The CareerXplora app on the android platform will be available for download from the Google Play Store in July.

    LOG ON DETAILS:

    ends

    FACTORY WORKERHow many cars or trucks do you think are on the road? About a million? Actually, there are about a million vehicles in the Gauteng province alone. But where do all these cars come from? Answer: from the thousands of factory workers in South Africa.

    Building cars is big business in South Africa.

    Many overseas companies have factories called

    subsidiaries - in our country that they use for

    export purposes. We build the cars for them and

    they take them away on big ships for delivery

    around the world.

    Inside these factories there are various lines

    that work on all the tiny components needed to

    build a car. Factory workers assemble them piece

    by piece until a fully assembled car finally rolls off

    into the sunset. Most of the modern assembly line

    is motorised, but factories still need people to add

    in that all-important human element. Machines

    may be smart, but theyll never be as smart as you.

    Some of these machines still need humans to

    operate them, and thats where factory workers

    take up the reigns.

    Cool stuff:

    Factory workers are well taken care of. Safety is

    paramount and even if something goes wrong, the

    manufacturer will still look after you. You probably

    get a huge sense of satisfaction when you drive by

    a car that you most probably helped put together.

    Lame stuff:

    Putting the same old piece on a car everyday may

    get a bit boring after a while. An international

    company can also close the doors of their factory

    at short notice, which could leave you without a job.

    Paperwork:

    The only paperwork needed is a matric certificate.

    Training is given on the factory floor. This means

    you can walk in and they will show you how to

    operate the heavy machinery. Various outside

    courses are also on offer to help you on your path

    to greatness.

    Bucks:

    Expect to earn between R4 000 and

    R10 000 depending on the level at which

    you work on the assembly line. International

    companies actually use South Africa because

    of the cheaper labour rates so unfortunately big

    amounts of money are not involved. amounts of money are not involved.

    CONTENTSIntroduction to the South African Automotive and Transport Industries 2Educational Institutions 4Career and study advice 8Bursaries and Scholarships 9Industry Apprenticeships and Internships 10Learnerships through merSETA 12Training programmes 16

    Company profilesMAN Truck & Bus SA 19Volvo Trucks Southern Africa 22UD Trucks Southern Africa 24

    CareersAdministration/PA for any automotive related office 28Advanced driving instructor 29Aftermarket sales 30Aftermarket engineer 32Auctioneer 33Bus or taxi driver 34Business manager 35CEO of international motoring/trucking company 36Classic car restorer 37Commercial sector buyer 38Damage estimator 39Dealer principal 40 Factory worker 41Fleet manager 42Motor industry Ombudsman 43Motor technician 44Motoring journalist 45Motoring/Truck industry engineer 46Panel beater and spray painter 47 Petrol station attendant 48 Producer on a motoring show 50 Public relations 51Publisher in the automotive industry 52 Racing car driver 53 Racetrack marshall 54 Road construction 55 Road planner 56Roadside assistance 57 Service/Aftersales consultant 58 Service station owner 59 Supply chain specialist 60Tollbooth operator 61 Truck driver 62 Tyre technician 64 Used car dealer 66 Vehicle branding 67Vehicle inspector 68 Vehicle finance advisor 69 Vehicle sales executive 70 Welder 71Parting thoughts Is the automotive industry for me? 72

    EDUTRANS, a FOCUS ON TRANSPORT magazine social investment initiative published by CHARMONT MEDIA.Compiled with the assistance of interns from the South African Guild of Motoring Journalists.

    Edut

    ranS

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    E

    SS

    EEEEdut

    ran

    dutr

    an

    EEEEEEEEEdut

    ran

    dutr

    an

    dutr

    an

    dutr

    anSS

    Edut

    ranS

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    MESS

    dutr

    anSS

    EEA

    GUI

    DE T

    O CA

    REER

    S IN

    THE

    WHE

    ELS

    GAM

    E

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

    EEEEEEEEEEEEEEEEEEEEEEEdut

    ran

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    an

    dutr

    anSSSSSSSSSSSS

    A G

    UIDE

    TO

    CARE

    ERS

    IN T

    HE W

    HEEL

    S GA

    ME

  • August 2015 |FOCUS| 3

    STeerInGCOLUMn

    NOW IN THE PALM OF YOUR HANDS!

    THE LATEST CONTENT FROM THE WORLD OF FOCUS,

    ON TRANSPORT AND LOGISTICS

    Get the latest content or download the entire magazine Never miss a weekly FOCUS newsletter Interact with FOCUS on Twitter and Facebook Check out the latest multimedia content from the FOCUS

    YouTube channel View image galleries from industry events DOWNLOAD it FREE for a limited time only from the Apple App Store and Google Play Store NOW!

  • 4 |FOCUS| August 2015

    WHeeLnUT

    Recently Ive also been lucky enough to

    have sampled a number of vehicles that

    boast some rather advanced radar- and

    camera-guided safety features. These include

    technology such as radar-guided cruise

    control that could bring the car to a complete

    stop and then speed it up again in accordance

    with traffic conditions ahead.

    A few have featured sophisticated self-

    parking capability, where they will parallel

    or reverse park themselves, and then pull

    out again when youre ready to leave. One

    particular car will even steer itself back into

    its lane should the driver let it wander too far

    over the dividing line, and recognise signs on

    the side of the road.

    The most amazing piece of news is that

    these are all everyday cars that many of

    our readers could afford to buy. Of course,

    the multi-million rand luxobarges continue

    to introduce this sort of technology at an

    increasing rate, as different manufacturers

    battle it out for tech supremacy.

    The worry is that while this technology is,

    indeed, impressive and may, in some cases, be

    life saving it does bring about the possibility

    of motorists becoming exceptionally lazy;

    relying too much on the machine and landing

    themselves in trouble.

    Those among us who have been driving for

    a decade or more might be able to resist this,

    but what about the new generation of drivers?

    At the recent Southern African Transport

    Conference I heard a talk about the need to

    develop a hazard perception test for novice

    drivers.

    I began my driving career at the point

    where conventional cruise-control systems

    were long established and electronic safety

    aids, like anti-lock brakes and traction/

    stability control, were beginning to make an

    appearance in almost all vehicles in most

    showrooms (my first seven years of driving

    saw me learning the basics in cars that were

    equipped with none of these, mind you).

    Nonetheless, as Karien Venter, researcher

    at the Centre for Scientific and Industrial

    Research (CSIR) Built Environment, waxed

    lyrical about her research, I couldnt help

    remember myself as an 18-year-old novice

    driver and think: I cant believe I actually did

    these things and had that attitude.

    Venter began by quoting international

    research, which states that novice drivers lack

    the ability to perceive threats in their driving

    environment. Their perception of risk and

    situational awareness takes time to develop,

    as does their ability to coordinate these

    abilities with that of physically driving a vehicle.

    This, it was suggested, could be down

    to the fact that a persons brain is not yet

    fully developed by the time he or she takes

    the wheel. Novice drivers need to learn to

    control their vehicle, react to different road

    characteristics and conditions and drive safely.

    Making this more difficult is the fact that

    the personalities, as well as social and peer

    influences, of younger drivers manipulate their

    behaviour and ability to perceive risk.

    Novice drivers, therefore, tend to be more

    aggressive and reckless and take more risks.

    This is not a good thing when they are

    already more prone to distraction, as well as

    the loads placed on a driver by fatigue and

    monotonous roads ...

    Furthermore, the novice driver will tend

    to increase speed in complex road situations,

    while the experienced driver will reduce speed.

    Unfortunately, Venter says that there is

    still a lack of research into the problem.

    This means the development of a hazard

    perception test (and its inclusion in the

    process of acquiring a learners licence) might

    be some way off.

    The younger generations of drivers might

    not be too perturbed. Theyd probably be

    happy to let the automated technology (that is

    filtering into even the more basic vehicles on the

    road), help them along just as weve become

    accustomed to allowing modern technology to

    do in so many other aspects of our lives.

    As a relatively young driver myself, and

    someone with a deep passion for road

    safety and the need to increase the skills of

    drivers, I tend to find that more worrying than

    comforting. |FOCUS

    and the fall in the skills to

    operate them. As motor vehicles

    become more automated, there

    is a risk of drivers becoming

    overly complacent that the vehicle

    will take care of everything on

    their behalf. And, as younger

    generations of drivers take to the

    roads, they might eventually lack

    the skills that experienced drivers

    usually gain over time

    Gavin Myers

    oF machines

    the

    rise

    There has been much hype

    recently about automated vehicles

    undergoing ever-increasing

    advances in development. Indeed,

    you would have read in the July edition of

    FOCUS that the very first licensed autonomous

    truck has hit the road in North America.

    Daimlers head of truck product engineering

    said, at the launch of his new Freightliner

    Inspiration Truck, that its autonomous drive

    was never designed to replace the driver.

    Its there to make his job easier; allowing him

    more time to tend to administrative tasks

    from his mobile office and reducing fatigue

    levels.

  • August 2015 |FOCUS| 5

  • 6 |FOCUS| August 2015

    vICSvIeW

    One of this countrys most respected commercial vehicle industry authorities, VIC OLIVER has been in this industry for over 50 years. Before joining the FOCUS team, he spent 15 years with Nissan Diesel (now UD Trucks), 11 years with Busaf and seven years with International. Do you have a comment or thought you would like to share based on this column? Visit www.focusontransport.co.za and have your say!

    in these tough economic times, where

    profit margins are under the spotlight,

    no commercial vehicle operator can

    afford to have vehicles standing, while

    the panel beater waits for parts or the

    go-ahead from the insurance company, as

    vehicle standing costs are extremely high.

    For example, a three-axle truck tractor

    that is coupled to a set of super-link trailers

    costs an estimated R4 000 a day while

    the vehicle is in the repair shop. An owner

    still has to pay the vehicle instalment,

    crew, insurance, licence and overheads

    irrespective of whether the vehicle is on the

    road working or standing in the repair shop.

    Plus, it is not generating any profit.

    Lack of parts is one of the major

    factors that can stall a vehicle repair. On

    investigation, it was found that some truck

    and bus manufacturers provide a quick and

    fast parts service while others dont.

    My advice is to investigate the availability

    of parts when buying a new commercial

    vehicle. Your investigation should include the

    common panel parts that may be necessary

    to get your vehicle back on the road quickly.

    As most truck and bus manufacturers

    now insist that genuine parts be used, if the

    vehicle is still within the vehicle warranty

    period or on a maintenance contract, your

    investigation should include the price of the

    genuine parts from the manufacturer.

    Repair parts pricing should also be

    investigated, as this could have a direct

    effect on your insurance rate and the lifetime

    operating cost of the vehicle. The difference

    in prices of common parts between one

    truck supplier and another can be as much

    as 20 percent.

    A quick response from your insurance

    company, and examination of the work to

    be done to repair the vehicle, is another

    important factor. Time is often lost while

    waiting for the insurance assessor, getting

    the approval to do the job and guarantee of

    final payment.

    Another factor that can cause a delay is

    the panel shop that you and your insurance

    company select to do the repair. Good repair

    shops know the importance of providing a

    fast turnaround time and pride themselves

    on offering a seven- to ten-day delivery period.

    Ensure that your insurance company selects

    a professional accident repair shop.

    The quality of the repair will also

    have a direct effect on the resale value

    of the vehicle. To ensure that the work

    has been done professionally, get involved

    together with your insurance company in

    the final inspection and acceptance of

    the vehicle. It is not only the quality of the

    cosmetic appearance of the vehicle that is

    important.

    Often vital components like radiators

    are not replaced, but are instead poorly

    repaired to save costs; this could result

    in an expensive engine failure later

    on once the vehicle is back on the

    road. |FOCUS

    Getting your commercial vehicle back on the road, as soon as possible after it has been in an accident,

    is a major benefit in this tough economic environment. What factors stall the repair work and how can

    you get it completed as quickly as possible?

    the troubles oF truck accident

    repairs

  • August 2015 |FOCUS| 7

    lettersFOCUS

    HIJACKInG A reALITY

    Your story about truck hijackings in the June edition

    of FOCUS was spot on. Crime rates in South Africa

    are expected to continue their upward climb as

    economic and social conditions deteriorate a

    trend that is already being evidenced in the sharp

    climb in hijackings of trucks, cars and cargo, which

    are then sold into the illicit local and cross-border

    markets.

    Approximately 50 percent of stolen and

    hijacked vehicles are disposed of within South

    Africa, 30 percent are exported to other countries,

    while 20 percent find their way into chop shops

    and the second-hand parts market. As long as

    cash-strapped consumers are prepared to look

    the other way to save a buck and fuel demand,

    criminal syndicates will continue to operate and

    flourish.

    Our own truck hijacking statistics showed

    an increase of 16 percent in the last financial

    year, which ended in February 2015. This aligns

    with similar figures released by the Road Freight

    Association, which reported 1 150 truck hijackings

    across the industry during the same period.

    Economic stress causes an increase

    in criminal behaviour. During the financial

    crisis of 2008/9, truck hijackings in

    South Africa soared by 61 percent when

    compared with South African Police Service

    (SAPS) stats for 2006/7. During the recovery

    years of 2011/12, the incidents fell by

    42 percent.

    Various studies also state that there are many

    additional factors that drive this trend, including

    the presence of youth gangs, drugs, alcohol

    consumption and the availability of firearms. Crime

    is also exacerbated by high levels of perceived or

    real corruption, instability in our law enforcement

    agencies, and perceived low prosecution rates of

    criminals.

    Tackling youth unemployment has to be

    our single most important focus going forward.

    Unemployment poses a high risk to social stability

    in South Africa. Business and government must

    find common ground if we are to prevent the

    ticking time bomb of a forecast that, by 2020,

    there will be ten million young people who are not

    economically active.

    John Edmeston

    Global CEO, Cartrack Holdings

    TO CLArIFY I have just read your kind words regarding the

    FOCUS conference in the online magazine and was

    truly humbled. I think Gavin Myers did a fine job of

    encompassing my speech and I appreciate the

    effort he made.

    I would have only praise expect for one small

    point of accuracy. After summarising the rand/

    dollar issue, the article reads: Its also why

    mechanics are expected to produce high-quality,

    safe repairs and fast turnaround time

    That is not the case. It is not our volatile

    currency that causes this it is the fact that too

    often operations and their clients demands take

    priority over all other elements, which gives rise to

    this bad practice of workshops and maintenance

    appearing low on the priority list.

    But, thank you. I had prepared what is essentially

    my talk, minus the anecdotes and names and so

    on, but feel that your piece covers it better than I

    could have done.

    Jim Ward

    General Manager Technical

    Unitrans Freight and Logistics

    Thanks for the great feedback, Jim, and for clearing

    up what was meant in the rand/dollar paragraph

    for our readers Ed.

  • 8 |FOCUS| August 2015

    COverSTOrY

    benefits of our fleet as we can do this with our

    Freightliners, says Henning.

    With the transport and logistics industries

    being increasingly competitive, Henning

    highlights how crucial it is for a player in this

    space to use every single factor as an added

    advantage.

    It is important for an operation such as

    ours to run a fleet that offers very low running

    and maintenance costs. We did not have to

    look further than Freightliner as these trucks

    continue to offer us exceptional return on

    investment, he adds.

    There are a number of much larger listed

    companies out there that take over smaller

    operations very easily, and so it is vital for us

    to offer our customers competitive pricing,

    while offering the fastest delivery time. This is

    one of the major reasons why we add to our

    fleet every three years or so. It ensures that

    the Freightliners are less likely to break down

    and we can keep our customers satisfied,

    he says.

    Having bought most of its vehicles from

    Garden City Motors in Pietermaritzburg,

    Willowtons Freightliners are powered by

    Detroit Diesel engines; a company that is

    wholly owned by Daimler AG. This in-house

    engine ensures that the trucks continue to

    perform at the highest standards.

    Henning is quick to add that it is not only

    the machines that make Willowton such an

    influential player in the segment, but, more

    importantly, it is the people who are the heart

    of the operation.

    Our drivers are a most important

    part of the entire equation and we value

    them dearly. As Freightliner is a leader in

    modern technology, we make use of all the

    training it offers. We really endeavour to

    take good care of our drivers by providing

    trucks with a comfortable ride quality, as

    they spend a lot of time in their offices,

    he quips.

    Then there is the outstanding and

    mutually beneficial relationship that we have

    with Freightliner and Mercedes-Benz South

    Africa. Through this we feel like part of the

    family, as we have access to everyone from

    top management right down to workshop

    staff.

    Running only Freightliners means

    that trade-ins are easier. All the trucks

    are also serviced by the same dealer

    and we can reward our drivers, as we

    can compare apples with apples. All of

    these factors mean that we remain as

    competitive as we can be, retaining our

    valued customers, thanks to Freightliner,

    concludes Henning. |FOCUS

    One of the most comprehensive Freightliner fleets in South Africa is owned by Willowton Logistics

    WilloWton logistics and Freightliner keep

    deLiveringT

    he ability to deliver to every single

    customer, every single time,

    has made Willowton Logistics

    a respected leader in the local

    transport industry. Helping to make this

    possible is the companys fleet of more than

    200 Freightliners.

    Quite simply, Freightliner is our partner

    because its trucks provide excellent value

    for money, unmatched reliability and frugal

    fuel consumption, says Frans Henning, MD

    of Willowton Logistics, having taken delivery

    of 61 trucks as part of the companys latest

    order.

    Established in Pietermaritzburg seven

    years ago as a subsidiary of Willowton Oil,

    the company provids transport solutions to

    a number of clients in a variety of different

    sectors including fast-moving consumer

    goods (FMCG). This has resulted in its fleet

    being made up of taughtliners, refrigerated,

    tanker, container and skeletal trucks.

    Willowtons reputation to execute all its

    customers requests quickly and effectively

    has earned it the trust of Sappi, Clover, Sasol,

    Coca-Cola and a host of others.

    A large number of our customers use the

    just-in-time business model and it is imperative

    for us to be able to deliver goods at the exact

    time they need them. We continue to reap the

  • ??????????????

    August 2015 |FOCUS| 9

  • 10 |FOCUS| August 2015

    A proposed ban on vehicles in excess of nine-tonnes from urban areas

    for six hours a day has the industry up in arms. With many pertinent

    questions to answer, we ask how (should this legislation be forced on the

    industry) this might affect the heavy commercial vehicle (HCV) segment of

    the market

    more (light)

    For local distribution?heavies

    HCvMArKeT

  • August 2015 |FOCUS| 11

    HCvMArKeT

    as we know, the HCV segment

    of the market consists of

    vehicles in the 8 501 to

    16 500 kg gross vehicle mass

    (GVM) category. This means that, while the

    majority of the segment would be affected

    by the proposed ban, there is a very small

    part of it that falls outside of the stipulations.

    This brings rise to many questions: will

    buyers of larger vehicles opt for those they

    can buy in this segment so as to avoid

    the ban? Will the HCV segment rise to be

    bigger than the medium and extra-heavy

    commercial vehicle (EHCV) segments?

    Would buyers opt for vehicles in the upper

    reaches of the MCV segment and would

    the EHCV segment dwindle?

    First though, why the proposed

    legislation? At the recent Road Freight

    Association (RFA) convention (see the July

    edition of FOCUS for the full report) this

    was a topic of intense debate. With the

    restriction on driving hours announced in

    reaction to a perceived increase in carnage

    on the roads that involves goods vehicles,

    the Associations CEO, Sharmini Naidoo,

    said that a lack of professionalism by some

    operators has cast the industry in a negative

    light and done a lot to damage to the already

    waning credibility of the transport industry.

    Comments by the Department of

    Transport to regulate where it sees fit

    are very worrying. Its the legislators

    right to legislate and regulate, however,

    it must do so to achieve a legitimate

    purpose. The acid test should be whether

    the legislation serves such a legitimate

    purpose and whether there are means to

    achieve it. In many instances this is highly

    questionable and there is no obligation

    to justify the proposed legislation or to

    consider stakeholders concerns, she said.

    Naturally, the proposed legislation has

    been severely slated for, among other

    things, the harm it will cause to the

    transport industry and the economy, while

    not actually addressing the root cause of

    the problem a lack of enforcement and

    corruption.

    Without wanting to have their

    businesses negatively impacted by virtue

    of losing half their daytime working hours,

    operators would probably need to increase

    their fleet size with smaller vehicles

    such as the lightest HCVs or even the

    biggest medium commercial vehicles. This

    suggestion is one of the many factors that

    would lead to a rise in operating costs

    that would, ultimately, be passed onto the

    consumer.

    How much impact could running even

    a smaller HCV have, though? Leslie Long,

    senior manager marketing and demand

    planning at Hino South Africa, explains

    that most transport applications cannot

    replicate the same productivity with smaller

    vehicles, as the consumption implications

    are just too great.

    If a smaller vehicle saves an operator

    20 percent on his fuel bill compared to

    a larger vehicle, and he has to get two

    smaller vehicles to replace one larger

  • ??????????

    12 |FOCUS| August 2015

    Future-proofing ourclients supply chains

    www.barloworld-logistics.com

    To see how our smart supply chain solutions can improve your triple bottom line, call Mike Fanucchi 011 445 1600.

    A B

    At Barloworld Logistics, we go to great lengths to design, implement, operate and manage smart supply chain solutions.

    Smart stands for sustainable, measurable, adaptable, resourceful and transformational solutions.

    With innovative software and cutting edge technology were able to track, monitor and measure the impact on the environment at every turn.

    Simply put, ethical, economical and environmentally friendly solutions. Solutions that reduce costs, increase efficiencies and improve carbon footprints.

    While world-class corporate governance and global best practices ensure we create a sustainable future for our clients businesses as well as our own.

    Our culture of operational excellence enables us to find new ways to minimise waste while maximising productivity, profitability and performance.

  • August 2015 |FOCUS| 13

    HCvMArKeT

    one, he will see an increase of 60 percent in his fuel costs, he

    explains.

    (In other words: eighty percent of the original single large

    vehicles operating costs, per vehicle 80 x 2 equals 160

    percent of the operating costs of the original single vehicle

    representing 100 percent. Hence a 60 percent increase in

    costs.)

    We may not see an effect on the HCV market as a whole,

    but rather on the operating conditions of transport companies.

    People will not be happy to buy down and wont be able to afford

    it, Long says. It just does not make sense for them to have to

    have extra vehicles running around.

    With all players in the HCV segment producing these and

    other vehicles locally, the legislation could have a potential

    implication on local vehicle production. What if all truck

    operators stop buying trucks for six months because they dont

    know what to do? asks Craig Uren, COO at Isuzu Truck SA. Our

    factories would be slowed down, wed have to re-address our

    production runs and possibly get rid of some of our labour, which

    would create further unemployment.

    Thats completely against governments fundamental aim

    of growing the GDP and creating employment! he says. Take

    a massive distribution centre in Midrand, Gauteng, for example,

    which would probably land up being shut down its there in the

    first place because the location makes it easy to move goods

    around Gauteng. Trucks and buses are fundamental drivers of

    our economy.

    Clearly, banning large goods vehicles creates more problems

    than it solves for both operators and vehicle manufacturers

    alike. The real question is, though, what the eventual implications

    might be for the South African economy? The industry can only

    fight the legislation through its various channels and wait and

    see. |FOCUS

    Should proposed legislation come into effect, heavy commercial vehicles like these Hino 500s might be some of the biggest roaming our cities.

  • 14 |FOCUS| August 2015

    SUPPLY CHAIn MAnAGeMenT

    to this years survey represented a broad

    variety of companies by size; ranging from

    those turning over R1 billion or more per

    annum, through to smaller entrepreneurial

    businesses with a turnover of less than

    R50 million.

    Given its unique scope and depth, the

    survey offers an important view of how

    leaders are dealing with massive shifts in

    the local and global environment, explains

    Stubbs.

    Many companies are poorly equipped to

    deal with change and are often caught flat-

    footed, she adds. They are always behind

    the curve and are forced to catch up with,

    and react to, trends at great cost.

    Those companies that cant adapt risk

    losing everything to those that can. Strong

    and visionary leadership is essential for

    tackling and managing change. It should be

    viewed as a strategic process, with a clear

    and comprehensive picture of the objective

    and reasons behind it. An embedded system

    of constant communication and planning

    should also be present.

    Stubbs adds that one of the studys

    most important findings was an impending

    shortage of leadership, visionary and change-

    management skills within organisations.

    While in all the previous supplychainforesight

    surveys, the lack or shortage of skills has

    been viewed as a major business constraint,

    it is the first time that a lack of necessary

    leadership and visionary skills has been

    identified as a skills gap at managerial level.

    eMBeDDInG CHAnGe

    MAnAGeMenT

    Barloworld Logistics points out that, in

    many organisations, change management is

    mishandled. Companies typically establish a

    team to implement predetermined changes.

    This team is usually not involved in the

    monitoring of the need for change, nor does

    Rapid change is a permanent feature in the economy. This is highlighted in the 12th supplychainforesight

    study released by Barloworld Logistics. With new technologies, cut-throat competition and competitive

    ecosystems, the ability to make key shifts and transform from within is becoming essential for survival

    a Weak link in the (supply) chain? ManageMenT:

    The study, which is entitled:

    Embracing Change for a

    Sustainable Future, reveals

    that most organisations are

    poorly equipped to anticipate major market

    shifts and adapt accordingly. The greatest

    obstacle is to change people, explains

    Kate Stubbs, executive of marketing and

    communications at Barloworld Logistics.

    Leaders are required to create the context

    and environment for change in order to effect

    change seamlessly and successfully.

    Based on independent research

    conducted by the consulting firm Frost &

    Sullivan, on behalf of Barloworld Logistics,

    the report gathered the views of over 370

    professionals representing companies

    across South Africa.

    More than two-thirds (66 percent) of the

    respondents hold a director-level position,

    demonstrating the relevance that supply

    chains play in business today. Respondents

  • ??????????????

    August 2015 |FOCUS| 15

    Engen Dynamic Diesel is a fuel so advanced that it not only protects new engines, but also cleans the fuel systems of

    older engines to help restore lost power. Its trademarked detergent additive counteracts injector fouling increasing fuel

    economy and enhancing engine performance.

    Makes any engine feel like new

    FCB

    CAPE

    TOW

    N 10

    0055

    84CT/E

  • 16 |FOCUS| August 2015

    it have the vision relating to what needs to

    change and why. It operates on an ad hoc

    basis, without a consistent and established

    strategy.

    This is a fundamental strategic error.

    Managing change is essentially an executive

    function, which requires the support and

    input of all those affected by it. Instead of

    handing the issue to one team, change needs

    to be a permanent item on the executive

    agenda. It is encouraging to note, however,

    that businesses are becoming aware of the

    need to prioritise change management and

    approach it differently.

    Respondents in the supplychainforesight

    study ranked the ability to anticipate change

    and adapt quickly as their second top-ranked

    business constraint. When coupled with

    the highest-ranking business objective of

    identifying and managing change, this clearly

    highlights the acknowledgement that change

    is disrupting the way companies operate.

    On a similar note, respondents ranked the

    top supply chain challenge as the willingness

    to change, thereby breaking old habits or

    relationships, which is invariably a leadership,

    management or communication issue.

    It would appear that it is less about the

    willingness to change than it is about the

    identified and articulated need to do so.

    Indeed, the issue may well be identifying

    the need to change before being forced to

    do so by circumstances which relates to

    the required executive function of seeking

    and anticipating change for continuous

    improvement.

    In addition, there appears to be little

    confidence in the ability of organisations

    to identify and respond to trends. Only

    42 percent of survey respondents said

    their organisations are constantly in touch

    with anticipated shifts in the market and

    predicting game-changing trends.

    With regard to capabilities to implement

    change within organisations, 45 percent

    of respondents believe it is well executed,

    but needs improvement. Only seven

    percent responded that it is extensive and

    comprehensive.

    With these activities being vital to the

    success and sustainability of businesses, the

    lack of competence is a worry, adds Stubbs.

    THe rIGHT SKILLS

    Identifying and anticipating change is a

    specific skill that needs to be present within

    leadership teams, along with the ability to

    manage change. Increasingly, these skills are

    found to be rare if not entirely absent

    within many management teams.

    The lack of relevant skills was a key element

    of concern among respondents, and reflects a

    sentiment that has been expressed for several

    consecutive years. Yet, this year the response

    indicated that the concerns regarding skills

    shortages could be related to the lack of

    visionary leadership and the need for change

    management skills and not purely to the

    vocational skills of the workforce and lower

    level management, as previously stated.

    Few could argue that investment in skills

    and expertise is the best approach for long-

    term business success. Today, the skills

    required are different and businesses need

    to recognise this.

    Forward-thinking organisations need to

    identify what skills they have, understand the

    trends that will impact the business, and then

    identify the types of skills and abilities they will

    need in future to best adapt to and evolve

    with market shifts.

    Without doubt, organisations that build

    up management expertise in the area of

    identifying and managing change will be

    best positioned to leverage new trends and

    opportunities and enjoy sustainable, long-

    term growth, concludes Stubbs. |FOCUS

    SUPPLY CHAIn MAnAGeMenT

    The Barloworld Logistics supplychainforesight study revealed a lack of leadership and skills at management level.

  • ??????????????

    August 2015 |FOCUS| 17

    Youre not buying this.What youre buying is so much more than a truck. Its a

    commitment. A partnership.

    A whole solution designed and built around the working

    life of a vehicle, where Total Operating Economy is more

    important than just the initial purchase cost.

    Uptime is crucial. If the vehicle is not working, its not

    generating income. That is why the highest levels of

    reliability and durability are built into every model in our

    extensive range.

    As a one-stop shop, the complete vehicle is also supported

    by one of the most proficient service networks in SA.

    Offering the greatest availability of parts and assistance,

    whenever and wherever you need it.

    Payload is the next big thing. We have engineered our

    trucks to be the lightest yet strongest they can be. This is

    the key to offering the greatest payloads on the market.

    And then theres the fluctuating cost of fuel. With Scania

    you can be confident that you are operating one of the

    most fuel efficient vehicles on the market. We can proudly

    say that this has been the case for decades.

    Adding all this up, also taking the cost of R&M, finance,

    insurance and residual values into consideration, you will

    understand why we focus on total operating economy.

    So if youre just buying trucks, were probably not the

    supplier for you. But if youre buying a partnership,

    a commitment, a total construction solution, then we

    should talk.

    There is a better way.

  • 18 |FOCUS| August 2015

    FOCUS OnMInInG

    Mining has been around

    for thousands of years.

    According to Ian Shaw,

    author of The Oxford

    History of Ancient Egypt (published by Oxford

    University Press), Ancient Egyptians mined

    malachite (a copper carbonate hydroxide

    mineral) at Maadi, an affluent district in the

    south of Cairo. Shaw adds that Egyptians

    used the bright green malachite stones for

    ornamentation and pottery.

    Increased construction led to expeditions

    into Wadi Maghara, on the Sinai Peninsula

    (which wasnt part of Egypt at the time), in

    order to secure minerals and other resources

    not available in Egypt itself, between 2 613

    and 2 494 BC. Quarries for turquoise and

    copper were also found at Wadi Hamamat,

    Tura, Aswan and various other Nubian sites.

    The oldest mining site is, however,

    reportedly located in Swaziland. Many

    ancient tools were found during initial mining

    operations in 1964 by the Anglo-American

    Corporation at the Ngwenya mountain range,

    the Swaziland National Trust Commissions

    website points out.

    Three ancient mines were indentified and

    named the Lion, Castle and Stag caverns.

    In 1967, charcoal nodules from some of

    the more ancient mine entrances were sent

    to both Yale and Groningen radiocarbon

    laboratories where Carbon 14 testing was

    carried out, notes the site.

    A date of about 41 000 BC was obtained,

    making this the oldest known mining operation

    in the world. However, as this is the extreme

    range of carbon dating, the mines may be

    even older than this. It is thought these ores

    were mined until at least 23 000 BC. At Lion

    Cavern it is estimated that at least 1 200 t

    of soft haematite ore, rich in specularite, had

    been removed in ancient times.

    The mining industry is also playing a major

    part in the present day The mining sector

    is as important to Scania as it is to the South

    African economy, explains Chris Swanepoel,

    from Scania South Africas mining division.

    We rely heavily on mining projects and on the

    transport of minerals.

    He adds that if the mines are doing well,

    there is material to transport. If the mines

    arent doing well, then the reverse applies.

    As much as a struggling mining industry

    knocks the South African economy, it has

    pretty much the same effect on all the

    truck original equipment manufacturers

    (OEMs). These industries really

    are interconnected.

    We are relatively new in the mining game,

    including in-pit type trucks, but weve evolved

    tremendously and have taken into account

    what the mines want, especially with regard

    to safety standards and requirements.

    Swanepoel points out. Weve built various

    offerings around that. We have done a lot of

    work in the fields of falling object protection

    systems (FOPS) and roll-over protection

    systems (ROPS) in our trucks.

    He continues: We can offer staff carriers

    to move personnel in and around the mine

    that are FOPS and ROPS certified and comply

    with the legal requirements. We really have

    looked at the specific requirements of the

    industry to provide solutions that meet all the

    safety requirements.

    The mining sector is a difficult one in which

    to operate. All the OEMs are in the same

    boat, Swanepoel tells FOCUS. As a market,

    it is hugely demanding, so the trucks run a

    very heavy-duty cycle. Theyre expected to

    never break down and, when they do, theyre

    expected to be up and running in a very short

    period of time.

    you scratch my

    back

    People have been extracting minerals for thousands of years We use them for decorative purposes, to

    construct vital infrastructure and in life-saving technologies its no wonder that so much is dependent on

    the mining sector. We delve into the relationship between the transport and mining industries

  • August 2015 |FOCUS| 19

    FOCUS OnMInInG

    Scania is overcoming this challenge by

    offering different service contracts at various

    premiums. Obviously, wed like to look after

    the fleet from start to finish, but we have other

    solutions where we can put a technician in the

    customers workshop or handle the running

    of the workshop it is all down to finding the

    right solutions for the customer.

    The mining sector is also very depressed

    at the moment, Swanepoel points out. The

    current trend is to baton down the hatches

    and make use of what theyve got, so it is a

    very challenging time.

    The harsh conditions are also having a

    massive effect on operators. According to

    Standard Bank, transport operators, who are

    a key component of the economic fabric of

    rural towns, are finding it increasingly difficult

    to operate in an environment where pressure

    on margins, volatile fuel prices and increased

    operating costs are placing a stress on their

    profitability especially in cases where they

    rely on a single contract for their survival.

    These smaller transport operators often

    operate outside large metropolitan areas and

    primarily serve the agriculture and mining

    sectors, but their role in their local and

    regional economies is often underestimated,

    says Toni Fritz, head of Vehicle and Asset

    Finance Business, at Standard

    Bank.

    Without these transport contractors,

    farmers and mine operations in far-flung

    corners of the country would find it difficult to

    move products and commodities, she adds.

    Within their towns where fuel, service and

    supply facilities, drivers and local labour rely

    on the transport sector their contribution to

    the economy is even more important.

    Some of these smaller operators rely on

    single, medium to long-term contracts with a

    single customer to finance their operations.

    Although this gives them certainty over the

    contract period, there are several factors

    that restrict them from opening up their

    businesses to further opportunities, says

    Fritz.

    These inhibiting factors include:

    Trailers that are customised to a customers

    specific needs. If a transporter is carrying

    coal, for example, the trucks in the fleet

    are configured to meet these particular

    requirements. It is, therefore, difficult to

    carry other loads that do not fit

    the configuration of the

    vehicle, or run the risk of contamination.

    Single contracts (especially in the mining

    sector), often involve collecting raw material

    at one point and conveying it to another. The

    cycle is then repeated. For the operator, this

    means having to return to the originating

    point without a revenue-producing load.

    In a crowded market, where operators

    are forced to aggressively reduce margins

    to obtain business, smaller operators

    can often work off a lower cost base than

    larger transport companies, but they

    have to work their equipment harder. This

    has consequences for fleet reliability, as

    scheduled maintenance can sometimes be

    sacrificed to meet delivery deadlines or to

    bolster margins.

    The primary responsibility of any

    bank is to manage risk and ensure that

    transport operators are able to meet their

    commitments, says Fritz. This sometimes

    requires that customers cash

  • 20 |FOCUS| August 2015

    flows are stress-tested to assess their

    sustainability under different scenarios. In this

    case, the ability of the operators to diversify

    their operations and the strength and duration

    of single contracts become critical factors.

    She adds: There is no doubt that many

    small contractors are beginning to feel the

    strain of the ongoing economic downturn.

    As soon as signs of financial stress become

    evident, it is important that operators

    approach the bank for assistance and advice.

    As soon as this step is taken, plans can be put

    in place to assist viable operations to meet

    their financial challenges.

    The future does hold some hope,

    however, as Swanepoel points out. The

    future is pretty bright. The market cant

    hold this negative trend forever and when

    it turns, we have to be ready. Were waiting

    in anticipation for the turn, because it will

    come, and it will come with a fair amount

    of haste.

    This will be wonderful for OEMs and

    operators alike. |FOCUS

    FOCUS OnMInInG

    International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles.

    WWW.BCAFRICA.COMMMI/BCA/Quirk/CEN

    AFRICAS PREMIER CONSTRUCTION AND MINING TRADE FAIR

    FREE ENTRA

    NCE FOR

    ONLINE REG

    ISTRATIONS

    !

    www.bcafrica

    .com/en/

    visitors/regis

    tration

    Bauma_140x210_p2.indd 1 2015/06/01 7:05 AM

  • ??????????????

    August 2015 |FOCUS| 21

    We know it takes a lot more than wheels and a chassis to keep things moving forward.

    It takes a clear understanding of how your business operates. It takes expertly trained

    people who care about providing the best advice and the best service possible.

    Hino prides itself on delivering cost-effectiveness and operational ef ciency. Its why

    every Hino is built for your business.

    SO NO MATTER WHAT YOUR BUSINESS, YOU CAN KEEP ON TRUCKING.

    10005382JB

    /JHB/E

  • 22 |FOCUS| August 2015

    WOMen InTrAnSPOrT

    With one profession after

    another opening up to

    female participation, it

    was only a matter of

    time before the fleet world started producing

    its first women leaders. Ernita van Dalen is

    one of these pioneers. She is shaking things

    up, not just by being one of the first women

    in the job, but also by introducing new ways

    of doing things.

    As national office manager at Essential

    Foods, the grain division of Pioneer Foods,

    she is responsible for, among other things,

    the administration of the companys total fleet

    of trucks and forklifts. It was tough in the

    beginning, she says. You could see people

    werent all that comfortable with a woman

    coming in and questioning things.

    She pioneered the use of Standard

    Banks Managed Maintenance service in

    the company. Through this, the servicing

    and maintenance of each vehicle is

    tracked and managed by a centre of

    experts, who ensure that mechanical

    workshops dont overcharge or carry out

    unnecessary work.

    Transaction authorisation was another

    service that she introduced to the company

    when she moved the fleet to Standard

    Banks Fleet Management Card system. It

    automatically vets fleet card transactions

    and declines those that exceed certain

    parameters.

    Another trailblazer in the world of

    transport is Wilna Steyn, chief financial

    officer, Africa, at the Babcock International

    Group. I have been involved in the transport

    industry for nearly five years now. Prejudices

    against women still exist in the workplace,

    but far less so than a few years back.

    After all, women make up more than half of

    our population, so excluding them from the

    transport industry would result in it being less

    evolved than others, she says.

    We currently have three women

    apprentices within the Babcock apprentice

    school, something we did not have five years

    ago. In addition, the company develops talent

    by sending employees on an MBA programme

    at the Strathclyde University in Scotland. The

    first intake of two employees included a

    female employee, who was recognised as a

    future business leader.

    Management is actively working to

    increase the role of women within Babcock

    on a daily basis. Women have the power to

    shape and change the transport industry.

    Our greatest power lies within our ability

    to create room for everyone to contribute,

    make things happen and build a team that

    can bring about change and achieve goals

    together, Steyn adds.

    Valentia Hobbs has been general

    manager for marketing communication at

    Volvo & Renault Trucks South Africa for

    the past two-and-a-half years. She has been

    in the commercial vehicle and automotive

    industry for over ten years, though, even

    tackling the petroleum industry, at Total

    South Africa.

    Initially I thought that you have to be

    really tough to be in this industry, but later

    realised that all you need is to strike a

    balance and that you are able to be tough

    and still maintain your femininity. There is a

    place for women in all industries in order for

    a business to be successful, Hobbs says.

    Businesses and companies are evolving,

    I have seen a major transformation over

    the years where women are included in key

    decision-making and play active roles within

    organisations.

    Since August is Womens Month, its the perfect time

    to reflect on what women have achieved in the local

    transport industry

    heavy-duty

    heeLs

    Initially I thought

    that you have to be really tough to be

    in this industry, but later realised that all you need is to strike a balance and that you are able to be tough

    and still maintain your femininity.

  • August 2015 |FOCUS| 23

    WOMen InTrAnSPOrT

    In line with this, Hobbs describes the

    many initiatives that the Volvo Group has

    in place to promote diversity and inclusion,

    which are aimed at developing a culture and

    working environment where everyone can do

    their best work.

    Apart from the obvious ones

    such as women in senior management

    roles and development programmes

    for women, Volvo has an apprenticeship

    programme for diesel mechanics where

    women are encouraged to apply. We

    have two women on our current

    programme and three who have completed

    the programme already and are qualified

    diesel mechanics.

    Her advice to aspiring women: With all

    the opportunities available, you can make

    your mark and be challenged. You just have

    to be bold enough to take the step!

    Women in other transport sectors are

    also aiming to break the mould, to inspire a

    new generation and improve diversity. The

    third annual Women in Maritime Conference

    took place on July 30 and 31, at the Monkey

    Valley Resort in Noordhoek, Cape Town. The

    conference discussed womens involvement

    in the business base that underlies port

    operations.

    Similarly, the second annual Women in

    Rail and Logistics Conference will be held

    on August 20 and 21, at the Amabhubesi

    Conference Centre in Randburg,

    Johannesburg. |FOCUS

    Opposite: Babcocks Wilna Steyn says women have the power to shape the transport industry.Above: Volvos Valentia Hobbs says there are now more opportunities available to women than before.

    Pic

    cou

    rtes

    y of

    Jus

    tin G

    rant

    Pho

    togr

    aphy

    Earth A stoep, stoop, porch, veranda or portico (whatever tickles your colloquial fancy) is loosely de ned as a roofed platform along the outside of a house, level with the ground oor. It is, however, more than that

    Its a place where you can enjoy a sundowner after a hard days work, a place where you kuier with friends and discuss whatever is on your mind, or where you cuddle up with a good book on a glorious day. It doesnt have to be a physical place, built out of bricks and mortar either

    Charmont Media Global has launched its CyberStoep, where all these activities are happening digitally. This website aims to entertain as a ock of journos review, give their opinion and write about absolutely anything and everything under the sun.

    Charmonts two agship magazines (FOCUS on Transport and Logistics and SHEQ MANAGEMENT) are performing exceptionally well, but they are very specialised publications, says Jaco de Klerk, CyberStoeps Stoep Manager. CyberStoep, on the other hand, allows us to diversify our offering, which means more material for our readers and an array of topics for our journalists to write about in short, fun all-round.

    This diversity is exactly what sets the Stoep apart from other lifestyle websites, which mainly focus on a certain demographic, speci c market segment or product offering. There is no topic too controversial, place too far- ung or product too scarce that can escape our Stoeps chitchat, adds De Klerk.

    Catch more at www.cyberstoep.co.za

    cyberstoepJoin us on our

  • 24 |FOCUS| August 2015

    FInAnCe AnDInSUrAnCe

    several original equipment

    manufacturers have their

    own in-house financing

    departments. MAN Financial

    Services, for example, aims to build long-

    term and trustworthy relationships with

    its customers. We do this by offering

    customised products that make it possible

    for companies to plan and calculate the costs

    of their projects, says Wanda van Rooyen,

    business support and insurance manager at

    MAN Truck & Bus SA.

    MAN Financial Services can offer

    unique industry and commercial-vehicle

    expertise. The company guarantees reliable

    partnerships, personal contact, competitive

    and fair market prices, customised solutions,

    transparent and unique processes and short

    lines of communication with quick decision-

    making, she adds.

    Scania Financial Services strives to

    provide flexible financing and insurance

    solutions, for both new and used vehicles,

    buses, trailers and ancillary equipment.

    Scania Finance and Insurance offers

    instalments and frequency tailored to clients

    needs, variable interest rates and package

    solutions including insurance, repair and

    maintenance, as well as service contracts.

    UD Financial Services also offers a range

    of products and services as part of its aim to

    provide a complete and convenient service

    throughout a vehicles lifespan. These vehicle

    financing products include options such as

    instalment sales, financial and operating

    leases, rentals as well as full-maintenance

    agreements.

    Owning and operating trucks, or other

    heavy-duty commercial vehicles, is an

    expensive exercise. Increasing costs of

    diesel alone can force some truck operators

    out of business. Truck finance specialist,

    TruckFinancing.co.za, aims to make obtaining

    truck finance easier, with flexible finance

    options for owners and operators who may

    not meet stringent prime lender criteria.

    The lenders at TruckFinancing.co.za

    understand that vehicle owners need to

    keep overhead costs low. If truck operators

    dont have a good credit rating and an

    established company with long-term

    customers, finding sources of finance for

    commercial trucks through conventional

    lenders can be difficult.

    For those who wish to rent a vehicle,

    rather than buying one, there are also options

    available. One such offering at the moment is

    from Tata, in conjunction with Wesbank, in

    which clients have the option to rent the Tata

    Novus 7548 6x4 truck tractor. (Turn to page

    34 for more details.)

    When it comes to commercial vehicle

    insurance, there are also many options

    available. Insurance Underwriting Managers

    (IUM), for example, strive to deliver innovative

    insurance solutions and services.

    Founded in 2004 by certified

    professionals, IUM began as an administrator

    in the industry. Since 2010, IUM has grown

    into a fully-fledged insurance underwriting

    manager.

    IUM offers insurance brokers extensive,

    comprehensive, cost-effective and tailor-

    made insurance solutions, allowing clients

    one point of contact to access a wide range

    of products.

    IUM has an extensive range of commercial

    insurance products and services. Its core

    products are underwritten by Guardrisk

    Insurance Company Limited.

    A sluggish economy can be a formidable

    foe when applying for any type of business

    finance, or purchasing insurance. So make

    sure you opt for flexible solutions, which give

    you predictable costs and manageable risks,

    for a profitable business at the end of the

    day. |FOCUS

    One of the goals of commercial vehicle finance and insurance is to make it easier for owners or operators

    to run a successful business. Clients need the best vehicles available at the most affordable prices. We

    take a look at whos offering what

    Finding the right vehicle at the

    righT price

  • righT price

    AND PAY 0% INTEREST OVER 36 MONTHS *

    INVEST IN YOUR NEW IVECO STRALIS HI-WAYBEFORE 30 SEPTEMBER 2015

    Contact your nearest Iveco dealer or call us on 0800116967for more on this BIG DEAL DEAL

    0%INTEREST OVER

    36 MONTHS

    BIG DEAL DEAL*

    PLUS WELL ALSO PUT DOWN THE FIRST R100 000OF YOUR DEPOSIT*

    Terms and Conditions Apply and Finance is subject to approval*

  • 26 |FOCUS| August 2015

    ISUzUTrUCK SA

    Our industry must

    get smarter for our

    customers to move

    forward, says Craig

    Uren, COO at Isuzu Truck SA. The days of

    simply supplying hardware are gone, which is

    why weve changed our supply chain to allow

    us to get to market more quickly.

    Explaining the vision, Uren continues:

    Our focus is no longer on what leaves the

    factory gate. Together with our dealers and

    suppliers, Isuzu Truck SA will have a more

    integrated relationship with current and future

    customers during the life of their trucks.

    Uren is referring to the first step in the new

    Isuzu Trucks ENTERPRISE business model,

    the 100-percent acquisition of Port Elizabeth-

    based KANU Commercial Body Construction

    and Automotive Chassis Technologies (KANU/

    ACT). Effective as of August, the new venture

    will allow Isuzu Trucks to have the capacity

    to initiate and build products according to

    customer specification.

    Everything can now be processed from

    one point of contact when buying trucks from

    us, says Uren. It is expected that up to 30

    percent of vehicles that leave Port Elizabeth

    assembly plant of Isuzu Trucks will have KANU-

    built bodies fitted.

    Significantly, Uren explains, this means

    that the time taken to buy or replace a truck

    is drastically reduced. Customers will now be

    able to get on the road within weeks, instead

    of months

    This is a logistical solution that will have

    benefits for us, the bodybuilders and the

    customers. For a small operator, the process

    of procuring a replacement truck, for example,

    can take up to three months after it has been

    bought, built, sent round the country to have

    a body fitted and then back to be delivered.

    Thats too long, and during this time they lose

    a lot of revenue.

    Likewise, we can provide a large operator

    a full turnkey supply with consistent build

    quality, he says.

    Bringing with him vast experience in all

    aspects of the assembly line, current plant

    manager, Sipho Sandla, will join the Isuzu

    Truck South Africa executive team and take

    on the role of GM of the KANU/ACT operation

    in Port Elizabeth. The current owner, Tony

    Wright, will stay on in an advisory capacity for

    a minimum of 12 months.

    Costs and other market negatives

    suggest we need to do things differently, be

    more proactive, box smartly and challenge

    Isuzu Truck South Africa is changing the way it does business by creating an improved supply chain that

    enables clients to move forward and grow. GAVIN MYERS explains

    an enterprising

    fuTure

  • August 2015 |FOCUS| 27

    ISUzUTrUCK SA

    the status quo. To do this we have to find

    opportunity in adversity, Uren says, alluding

    to more to come for a really integrated

    relationship with customers during the life

    cycle of their trucks.

    The adversity Uren talks about is the

    current state of South Africas economic

    environment, which is having a direct effect

    on the local truck market. Nothings changed

    locally over the last two years; the variables

    just ebb and flow and shift the balance. Eskom

    is currently having a huge influence, causing

    havoc on productivity. As such, the truck

    market has come down quite quickly in the last

    three months, due to the various impacts on

    businesses, he explains.

    The impact of the power crisis on business

    behaviour has created a market fall-off of

    five percent in the year to date. The extra-

    heavy market is down by 7,5 percent, as is

    the medium segment, while the bus market

    has remained flat and the heavy commercial

    vehicle segment has shown growth of 5,5

    percent year to date.

    This growth in the heavy segment is

    due to behavioural change in the industry

    operators are either buying down when

    replacing large vehicles, or up if replacing

    smaller ones. They are adjusting their capacity

    options and trying to find the optimum levels.

    We saw this during the financial crisis of

    2008/9.

    Uren thus expects the market to end

    on less than 30 000 units this year (as

    opposed to the companys initial forecast

    of 32 000 at the beginning of the year).

    However, slight growth is expected

    in 2016, but that will be mainly due to

    replacement cycles and not overall growth

    of the economy.

    We understand that its tough to run a

    business in this environment, but it is a big

    opportunity for us to continue to provide to an

    industry that needs to keep going, says Uren,

    who is pleased to report that Isuzu Truck SA

    has been able to benefit from a stable run

    between the yen and rand for the last 12

    months.

    This has helped us manage our business

    and deal with the other variables, he says.

    Isuzu Trucks currently has a market share

    of 13,6 percent (at the end of 2014 it was

    12,9 percent), which equates to the company

    growing its volume just on 20 percent a year

    to date, compared to the same period last

    year.

    Were happy where we are, given the

    market at the moment, explains Uren. Each

    year we strive to retail 4 000 units and we are

    trending for that in 2015.

    During the course of the third quarter,

    the Port Elizabeth plant of Isuzu Truck SA is

    expected to achieve a milestone on 30 000

    units produced since the formation of the

    company in 2007.

    There is no doubt that the production

    facility at Isuzu Trucks will continue to

    move from strength to strength, especially

    given the companys new ENTERPRISE

    business model and the advanced supply

    chain options it will bring to the brands

    operators. |FOCUS

  • 28 |FOCUS| August 2015

    neWveHICLeS

    The medium commercial vehicle

    (MCV) market is currently Hino

    South Africas stomping ground.

    During the first six months of this

    year the company has had a leading market

    segment share of 24,7 percent.

    However, vice president of Hino South

    Africa, Ernie Trautmann, says this is a highly

    competitive market segment. The company

    has, therefore, expanded its 300-Series MCV

    contender to provide its most comprehensive

    product offering yet in this segment.

    The expanded range, which will help

    the company achieve its target of 4 000

    unit sales by year end, comprises three

    new crew-cab derivatives and four new

    automatics. An approximate body and

    payload allowance of between 3 390 and

    5 950 kg is still on offer.

    In response to customer feedback, the

    714 and 915 manual transmission models

    are now available with a crew cab.

    The 300 crew cab provides safe and

    spacious transportation for up to seven

    people and is already proving popular with

    municipalities, utilities and telecommunication

    providers. Rear passengers benefit from

    their own heating and air-conditioning system

    as well as cup holders.

    The existing 815 automatic transmission

    crew-cab model has had its wheelbase

    shortened again in line with customer

    feedback.

    The six-speed automatic transmission

    fitted to this model is now also offered on

    the 614 and 714 short-wheelbase models.

    This smooth-shifting torque-converter box

    includes overdrive fifth and sixth gears for

    improved fuel economy. Drive goes to a full-

    floating, single-reduction hypoid rear axle.

    All Hino 300 models are powered by a

    four-litre, four-cylinder Hino turbo-intercooled

    diesel engine in one of two states of tune

    either 100 or 110 kW of power and 392 or

    420 Nm of torque respectively.

    Hino was very specific with its decision to

    equip the 300 with an automatic transmission

    and not an automated-manual transmission

    (AMT). Says Leslie Long, senior manager,

    marketing, product and demand planning at

    Hino South Africa: The automatic provides

    smoother, optimal shifts with less lag between

    them. There is a lot less wear and tear on

    the transmission components and there is no

    clutch to replace. An automatic transmission is

    more effective from an efficiency point of view.

    Typical customers interested in the

    automatic models are cash-in-transit

    companies, the mining industry and bakeries

    for which the company has developed a

    specific vehicle.

    Hino feels that the new crew cabs (with

    their shortened wheelbase) and automatic

    models will help combat driver fatigue by

    easing the driving process and enhancing

    manoeuvrability.

    This comfort and ease of driving was

    aptly demonstrated in the high-speed driving

    and simulated manoeuvrability and parking

    challenges Hino had lined up for us, at the

    media launch held at the Gerotek testing

    facility outside Pretoria.

    Trautmann is, understandably, confident

    that the new additions to the 300-Series

    range will make Hino even more competitive

    in South Africas keenly contested MCV

    market. The enlarged range emphasises

    the importance we place on customer

    and dealer feedback, while our customers

    continue to benefit from our strategy of

    continuous improvement, he says.

    An array of value-added Hino-Care

    services, including a 24-month/unlimited

    kilometre warranty, towing assistance

    and 24-hour roadside assistance,

    enhance the value proposition of the

    300-Series. |FOCUS

    Hino has expanded the appeal of its medium-weight 300-Series by adding some key models to the range.

    GAVIN MYERS experienced them

    What customers

    WanT

  • ??????????????

    August 2015 |FOCUS| 29

    TH

    E J

    UP

    ITE

    R D

    RA

    WIN

    G R

    OO

    M (

    CT

    ) 46

    654/

    E

    SMS MIGHTY to 33362 and well call you. SMS charge R1.50

    GAUTENG: Apex, Boksburg, Germiston, Kempton Park, Centurion, Heidelberg, Roodepoort, Sandton, Edenvale, Strijdom Park, Vereeniging, Wonderboom, The Glen, Weltevreden Park. WESTERN CAPE: Milnerton, Brackenfell, Paarl, Somerset West, Paarden Island. EASTERN CAPE: East London, Port Elizabeth, George. NORTHERN CAPE: Upington. FREE STATE: Bloemfontein, Welkom. KWAZULU NATAL: Newcastle, Pietermaritzburg, Richards Bay, Pinetown, Mobeni. LIMPOPO: Bela-Bela, Louis Trichardt, Polokwane. NORTH WEST: Brits, Mafikeng, Rustenburg, Klerksdorp, MPUMALANGA: Witbank, Ermelo, Lydenburg, Nelspruit.

    www.hyundai.co.za/commercial-vehiclesH100 and HD72, proudly assembled in South Africa

    H100 HD72 1-Year/60 000km Service Plan 3-Year/200 000km Warranty 3-Year/200 000km Roadside Assist ABS with EBD Chassis Cab

    3-Year/60 000km Service Plan 5-Year/150 000km Warranty 5-Year/150 000km Roadside Assist 1.3 Ton Load Capacity Versatile Dropside Deck Chassis Cab

    STARTING FROM

    R195 526 (ex VAT)STARTING FROM

    R335 000 (ex VAT)

    46654 Hyundai CV Print 297x210.indd 1 2015/07/24 17:09

  • 30 |FOCUS| August 2015

    WHEELSWOrLD On

    Japan is an interesting place. On the

    one hand is the countrys modern-

    day economical prowess and high

    living standards: Japan has the

    worlds third-largest economy by nominal gross

    domestic product (GDP) and the worlds fourth-

    largest economy by purchasing power parity.

    Its population is said to enjoy the highest life

    expectancy of any country in the world and the

    third-lowest infant mortality rate.

    On the other hand, the country is

    deeply rooted in its long-evolved culture. Its

    architecture, gardens, clothing and cuisine are

    famous the world over.

    Visiting the country, even reading about it,

    is mind-boggling, and understanding how all the

    ultra-high-tech modernity and cultural values

    come together is fascinating. Its impressive, yet

    almost paradoxical.

    While the Japanese Archipelago consists

    of 6 852 islands, 97 p