Logistics Optimising transport routing and scheduling
Corridor Improving logistics between Durban and Gauteng
Commercial Vehicles The road ahead in 2013
“Scania Trucks have been developed for use in the most demanding market” Steve Wager, MD, Scania SA P16
ISSN 1684-7946 Jan/Feb 2013 Vol. 11 No. 1 / R40.00 incl. VAT
IN THE HOT SEAT
Appropriate technology for Southern Africa
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIN
Intraregional supply chain soluti ons from producer to consumert
ENDORSED BY
MBS
A/10
5/AC
T001
Trust means any time, anywhere, down the road.
A D
aim
ler
Bra
nd
TRUCKS. LEASING & FINANCING. FLEET SOLUTIONS. SERVICE & PARTS
In Mercedes-Benz you have a partner who reacts immediately in an emergency to make sure that your journey can continue without delay. Wherever you find yourself and whatever the time, our Customer Response Centre is there for you. One free phone call is all it takes. What’s more, you can count on our service outlets throughout South Africa to provide you with genuine parts and everything you need to keep moving. It is reassuring to know that you can always rely on service with the three-pointed star.
Call: 0800 133 355 or visit www.mercedes-benz.co.za/trucks
1TWA | Jan/Feb 2013 1TWA | Jan/Feb 2013
Intraregional supply chain solutions from producer to consumer
INSIDETHIS ISSUE
COVER STORYUD Trucks
Fuel is playing an increasingly vital role
P4
onsumer
ORYucks g an role
P44
REGULARSEditor’s word – Eternal optimist in 2013 2FESARTA – Barney’s comment 3Cover story – UD Trucks 4Hot seat – Scania’s Steve Wager 6FESARTA news 8News desk 10
COMPANY PROFILENgululu Carriers – Expanding into Africa 12
COMMERCIAL VEHICLESThe road ahead in 2013 16MAN – Optimistic about 2013 for both truck & bus 18Scania – Ensuring efficient reliable transport solutions 22
TRAILERSTrailers deliver optimum performance 20
LIGHT COMMERCIALSA’s manufacturers remain buoyant 24
SUPPLY CHAIN LOGISTICSOptimising transport routing and scheduling 26Tracking into the future 28
MARITIMEUnlocking the great potential in Africa 30
REGIONAL CORRIDOR FOCUSImproving logistics between Durban and Gauteng 32
RAILThe role of rail in intra-Africa trade 36Transnet branch lines critical in stimulating economy 38
16 18
22
24 32 38
1TWA | Jan/Feb 2013
2 TWA | Jan/Feb 201322222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222 TWATWATWATWTWATWATWATWATWATWATWATWATWATWATWATWATWAWAWATWATWATWAWATWATWATWAWATWATWATWAWAWATWATWATWATWAWTWATWTWAWATWATWATWAATWATWATWTWWTWWTWATWATWAWATWATWATTTWTWATWAWAAWATWATTWWAWWAWAATWATWWATWATTWWAAWATTWWWATTWATTTWWAWTWAWWWTWATWATWAWATWATTWATWAWAWAWATWWATWWATWATWATWATWAWTWATTWATTWATWAAATTWTWAATWATTTWAAA ||||||||||||||||||||||||||||||||||||||| JanJanJJaJJaJJJanJanJanJanJanJanJanJanJanJananJanJananJanJanJannJananJanJanJJaJanJanJanJanJanJanananJanJanJanJanJanJaJanJanJaJanJanJanJanJanJananJanJanJanJaJanJanJJJJJaJanJaaananJaanJanJaJJJaaanJJJaJJaJJJaJaanaaJaaanaaaJaaaJJJannJaJJJaaaaJaan/Fe/Fe/Fe///Fe/Fe/Fe/Fe/Fe/FeF/Fe/FeFe/F/Fe/Fe/Fe/Fe/Fe/Fe/Fe/Fe/Fe///Fe/Fe/Fe/F/FeFe/Fe/F/Fe/Fe/Fe/Fe////Fe/Fe/Fe/F/Fe/Fe/F/Fe/Fe/Fe/Fe/Fe/Fe//Fe/F/Fee//F/Fe/Fee/FeFe/Fe/FFF/Feee/Fe/FeFFF/Fe/FeeFeFeFeFee/FeF/Feee/FeF/FFeee///FeeFee/Feeee/ ee/FeeeF/FFeeFFFeFFFF bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb 20202020222020000202020200202020202020200020202020020202020220200220220200202020200200222202020202020020000002020220000002220200020022220202000200200020000020200000000000013131311313131313131331313133131313313313133111131331313133313111113331333333131113133333333113113333313133313131133333113313333
The road ahead might be tough in 2013 but, as they say, without chal-lenges there would be no opportunities!
Am I optimistic about the road ahead? Yes, I am. But I have always been an eternal optimist irrespective of the challenges I am experiencing at the time.
Here is hoping you are able to change all your challenges into opportunities and you have a safe and productive 2013!
In this issue, UD Trucks outlines its commitment to leading fuel efficiency, because as we all know fuel forms a major part of the costs involved in operating a truck.
The chairman of Ngululu Bulk Carriers tells us how the company became a true BEE transport company and its future plans of expanding its footprint.
We have Scania’s MD Steve Wager in the Hot Seat answering our questions. We also speak to some of the OEMs in both the heavy and light commercial vehicle sectors to find out what we can expect from them during the year.
At the same time, MAN outlines its optimism about 2013 for both its truck and bus sectors and Scania tells us how the company is ensuring efficient reliable transport solutions for its customers.
If you would like to find out how trailers can deliver an optimum performance, carrying loads on the roads then turn to the trailer section and find out what the specialised manufacturers have to say.
Optimising transport routing and scheduling is key and crucial to any operation nowadays, especially with the spiralling fuel costs and, in this issue, we look at how operators get the best value out of their fleet.
An important aspect of any fleet operation is how operators can track the move-ments of their valuable cargo 24 hours a day and key players in this field outline tracking solutions available for fleet owners.
We take a look at the Durban-Free State-Gauteng corridor, which forms part of government’s 2050 vision and is the backbone of South Africa’s freight transporta-tion network, vital in facilitating economic growth for the country and the Southern African region.
We also look at the role of rail in intra-Africa trade and how Transnet Freight Rail is revitalising and reopening branch lines in order to improve access to markets as well as increase overall freight volumes.
As always, a varied read – enjoy!
Eternal optimist in 2013
ED’S WORD
Publisher Elizabeth ShortenEditor Simon Foulds • [email protected] of design Frédérick DantonSenior designer Hayley Moore MendelowChief sub-editor Claire Nozaïc Sub-editor Patience GumboContributors Barney Curtis, Allen Jorgenson Glen TancottProduction manager Antois-Leigh BotmaProduction coordinator Jacqueline ModiseDistribution manager Nomsa MasinaDistribution coordinator Asha Pursotham
Financial manager Andrew LobbanAdministrator Tonya HebentonPrinters United Litho JHB • t +27 (0)11 402 0571Advertising sales
Hanlie Fintelman • [email protected] +27 (0)12 543 2564
MEDIA No. 4, 5th Avenue RivoniaPO Box 92026, Norwood 2117t: +27 (0)11 233 2600 f: +27 (0)11 234 7274www.3smedia.co.za
Annual subscription: R290 (incl VAT)[email protected] 1684-7946 © Copyright. All rights reserved.
All articles herein TWA are copyright-protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the publishers.
2 TWA | Jan/Feb 2013
3TWA | Jan/Feb 2013 33TWA | Jan/Feb 2013
LET YOUR BRANDAND WITH WITH 3S3S MEDIAMEDIA
Then 3S MEDIA’S products are ffor r yoyou.u.
Our brands reach the infrastruccture and servrvicicee edelivery, water, waste manageement, miningand conferencing industries.
WE OFFER YOU print maggazines, buyers’ guides,
directories and supplementsexact replica online m gazinesplica online magazines yp y with limited animation and hyperlinks to your website
with multimedia functionality on websites accessible viacomputers or mobile phones, harnessing the power of video and animationBanner advertsyour own website event or job listingEvent sponsorships and exhibition stands.
MEDIA
FOR MORE ABOUT 3S MEDIA’S OFFERINGS VISIT www.3smedia.co.za or e-mail [email protected]
Scan here to go to website
by Barney Curtis, chief executive offi cer, FESARTA
FESARTA COMMENT
vehicle dimensions, harmonisation of road
user charges, driver immigration require-
ments, corridor monitoring and the introduc-
tion of self-regulation.
The objective of the 2012 Truckers’ Forum,
organised by FESARTA and 3S Media, was
to identify the leading problems along the
corridors in East and Southern Africa, and to
workshop the best solutions for them. And,
it was important that the outcomes from the
forum be integrated into the CTTTFP, so that
there could be support for implementing
the solutions.
Fortunately, the main outcomes, i.e. border
delays, load limits and overloading control,
arbitrary and excessive charges, road safety
FOR THIS RELATIONSHIP to con-
tinue effectively, FESARTA must align
its activities with the Comprehensive
Tripartite Trade and Transport Facilitation
Programme (CTTTFP).
This programme has been developed
over recent years by the three Regional
Economic Communities – COMESA, EAC
and SADC – and the two TradeMarks (TMSA
and TradeMark East Africa (TMEA).
It covers items such as customs docu-
ments and procedures, regional customs
bond, efficient management of border posts,
harmonisation of third-party motor vehi-
cle insurance, harmonisation of load limits
and overloading control, standardisation of
FESARTA and TradeMark Southern Africa (TMSA) have a close working relationship.
and self-regulation, could all be linked to the
items in the CTTTFP.
It has therefore been possible for FESARTA
and TMSA to develop a work programme
for FESARTA, which will have the objective
of implementing the solutions agreed at
the forum.
The next forum (renamed the Africa Road
Transport Forum), will assess what has been
achieved since the Truckers’ Forum and
workshop a revised way forward.
This process, started with the Truckers’
Forum, is a long one.
Problems have been on the table for
many years, and we would be naïve to
think they can all be solved in a few
months. But, with the determination and
commitment of all the stakeholders, there
is sure to be significant progress before the
2013 forum, which will be held on the 17 and
18 April, in Johannesburg.
4 TWA | Jan/Feb 20134444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444 TWATWATWAWWTWATWATWATWATWATWATWATWATWATTWATWATWATWATWATWATWATWATWTWATWATWATWATWATWATWATWAWTWATWATWATWATWTWATWATWWATWAWATWAWAAATWAAATWATWAAAAWATWAWAAAAAAAATWAATWWAWTWATWAATWATWAWAWAAWAATWATWAAAAWAWAWATWAWAWATWAWWTWATWATWATWAWATWAAWATWAAAAAAAATTWWWAWWAWWAWAWAAAAWAWAWAWAAAAAWWTWAWAWWWWWWWWAAAWAAAAAAAATWAWAWAWAWAWWTWWWTWTWWWAWAAAAWATTWATTTWWWWTWWWWWAWWATWAAATWATWATWATWWWWWTWAAAAAAWAWATWAWAWATTWATTTTTWTWWWWTWWATTTTTWWTTTWWWWWWAWWWWWWWAW |||||||||||||||||||||||||||||||||||||||||||||| nJanJannnJJJanJannJanJannJanJanJanJanJJJJJJJJJJJJanJanJanJanJanJanJanJanJananJanJJJJJJJJJJJJannJanJanJanJJJJJJJJJJJJ nnJanJanJananJanJananannanaaJanJanJanJannannJannnJJJJananJannJ nnnJannnJJ nn/Fe/Fe/Fe/Fe/Fe/FeF/F/Fe/Fe/Fe/Fe/Fe/Fe/Fe/F/Fe/Fe/Fe/Fe/Fe/Fe/Fe/FFe/F/FeF/FeFe/FeF/FeFeFeFe/FeFe/F/Fe//Fe/Fe/Fe/F/F/Fe///Fe/FeFFeee/Fe/Fe/FF/Fe/FeeFee/FeF/FeFeFeFFFF/FFFF/FFee/Fe/Fe/Fe/FFFF/Fe///FFF/Fe/Fe/Fe////Fe/FeFFeee/Fe/FeFe/FeeFeeeee/F/FeeFeeeeeeeFF/FeeeeFee/FeeeFeeeee/F/FFFFFeeFeeFeeeeeeFeeeFFFFFFFFFFFFee/FeeFee//FFFFFFFFFFF/FeFe//Fe//////FFFFF/FFFF/FF/F////////////// bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb 20202220222020000202020202220202000202002020202200020200000000200202022220002000200020002020202022222222222200020202020202020222222222202000000202222222222000000002020202022202020000202020220200002202202020020222000020020022220000000020113131311113313333333111313133133333331111333313331113313133133111113331313131311111113313133131333111113131131333333111131113131333313111111313131331131311313131313131333313131313131131311313133333131311331331313313113331313333333
COVER STORY
Fuel is playing an increasingly vital role in the Fuel is playing an increasingly vital role in the
transport industry, as it forms a major part of transport industry, as it forms a major part of
the costs involved in operating a truck.the costs involved in operating a truck.
IT IS BECOMING all the more important for
customers to carefully consider the fuel consumption
statistics of a vehicle before purchasing a truck,” says
Rory Schulz, UD Trucks Southern Africa’s general man-
ager of corporate planning and marketing. “In addition, one
also needs to look at aspects like driver training in order to
ensure the most efficient operation of a vehicle, careful route
planning and optimal load maximisation.”
If one makes a case study of some typical rigid vehi-
cle applications with typical annual mileage, operating at
an all-up mass of 7, 15 and 26 t respectively, the fuel
cost will constitute between 25 and 27% of a fleet owner’s
annual operating costs. In a typical truck tractor and inter-
link application, the fuel constitute around 50 to 56% of the
operating cost.
Schulz points out that a number of factors come into
play when a fleet owner needs to calculate the pos-
sible fuel consumption of a truck.
“Environmental factors, such as temperature
and wind, as well as road surface type
and operating conditions,
UD TRUCKS
always warrant strong consideration when factoring fuel
consumption figures,” he says. “The truck’s body type and
overall frontal area, the specific tuning of the engine and
driveline components, tyre choice, tyre pressure and wheel
alignment, as well as the load or all-up operating mass of the
vehicle should be on the list of aspects that need constant
monitoring and attention.”
Over the years, UD Trucks has continually invested in
researching the best fuel consumption practices and appli-
cations for its local product range. The company therefore
believes in only introducing trucks that employ appropriate
technology for the demanding road and operating conditions
of the African continent.
“The quality and hygiene of fuel available in many places in
the Southern African region often leaves a lot to be desired,”
adds Schulz. “Furthermore, it is imperative that one uses the
appropriate fuel for the specific design of the fuel system of
any particular vehicle; in other words, ultra-low sulphur diesel
or 10 ppm for Euro 4 and upwards. Driver training also plays
an increasingly important role, as the correct driving tech-
niques can save operators a lot of money on the long run.”
4 TWA | Jan/Feb 2013
Appropriate technology for
5TWA | Jan/Feb 2013 555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555TWATTWTWATWATWATWATWWTWATWATWATWATWATWATWATWATWATWATWATWTWWATWAATWWTTWATTWTWATWATWATWATWATWATWATWAATTWATWATWATWATWWTWATWAWATWATTTTWATWWWAWWATWAWWWWATWATWAWATWATWATWAWAAWAAWATWATTTTWATWATWATTWTWAWTWWATWAWATWATWTWAWAWAATWATTTTTWTWWWAWAWAWWWTWAWTWATWATWAAWAWATWATTTTWATWTWATWATWATWAWATWTWATWATTWAWTWAWWTWAWAWATWATWTWWTWATWWWTWATWAWATTWTWAWTWAAWAWAT AWATWTWAATWAWATWATWAWAWTWATWATWAWWWWAAAATWTWATTWATWAAAWWATWTTWWWWAWAAWWWAAAAAATWWWTT ||||||||||||||||||||||||||||||||||||||||||||||||||| nJanJanJanJ nnnJanJanJanJanannaaannanananaJanJanJanJJanJananJaaananannnJanJanJanJanJJanJaJaJanJanJanJanJaJaJaaanananananJanJanJaJaJJaJaJanJannnanananJJJanJJanJanJaanananJJannananJaJannnnJannananananannnnanaannnanannanJ nnnnanannnnnnnnnnnaannnnaannannnnJanaaaaannnnnnannnaaaaaaaannnnnJJJaaaaaaaaannnanJaJJJaJaaaaaannnJJaaaaaannaaaaannnnaannnaaanJaaaaaaaaannnaaaaaannaaaaaaaaaa //Fe/Fe/FeF/FeFe/Fe/Fe/Fe/Fe/Fee/ eFe/FeeFFe/Fe//Fe/Fe/Fee/FeFeFFeFFFFeFeFeFeFeeFe/F/Fe/F/Fe/Fe/Fe/Fe///FeFeFFFFFF/FeFF/FFeFFeeFeeFe/Fe///FeFeFFeFFFeFee/Fe/FeFeFFFeFFeFFeeFe/FeFeFeFFeFFFFFFeF/FeeFe/Fe/F/F/Fe/Fe/FFFFeeeeFe/Fe/FeeeeeeeeFeeeeeeee/FFeeeee/Fee//F/F/F/F/FeFeFee/Fe//Fe/Feee/Feeeee/Feeeeeeee/Feeeeee/F/Feeeeeeeeee/FeeeeFeeFFeeee//FFFFFFFeeeee/Fe/Fe/FFFFFFFFFFee///F/FeFFeFeFFFeFeeeeee/////F/FFFeeeeeee//Fe/FFFFFFFFFeeeeee//// eeeee///// bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb 2020202020202020202202020202020020202020202020202020220202020202020202022202200200220222202222220002220002202222 131313131313131313131313131313313131131131313313131333313131313131331313131313113131311333313313313131333313133113
COVER STORY
TWA offers advertisers an ideal platform to ensure maximum exposure of their brand. Companies are afforded the opportunity of publishing a two-page cover story and a cover picture to promote their products to an appropriate audience. Please call Hanlie Fintelman on +27(0)12 463 2564 or e-mail her at [email protected] to secure your booking.
Over the years technology has made many advances
to increase fuel efficiency. Initially, mechanical advances
came by the way of improvement in volumetric efficiency
and combustion chamber design and shapes. Fuel
measurement and metering, as well as tuning, have
also improved the efficiency of trucks through the years.
These also include advancements in fuel technology.
“Materials and manufacturing processes are enhanced
to allow for greater compression ratios and tolerances
in order to increase injection pressures. The advent of
forward induction systems such as turbocharging also
contribute greatly to the advancement in fuel efficiency,
while engine cooling improves dramatically as the
industry evolves and become more sophisticated,” explains
Schulz. However, the most significant improvement came
in the form of electronic control units, which has allowed
manufacturers to control the exact amount of fuel that is
injected at a specific pressure with precision timing. This
vital development results in overall combustion efficiency
and also helps operators achieve lower emissions, which
ultimately leads to improved fuel economy.
Schulz reiterates
that there are now
engines available
that are especially
fuel efficient at a
particular rev range
and engine load. To
enable operators
to keep the vehicle
operating in this
ideal range, multi-
speed transmissions have been introduced and further
developments with electronics allow the vehicle to func-
tion in an optimum fashion with automated manual trans-
missions and electronic vehicle management systems.
“With these systems of course comes much driver
orientation and ongoing training to improve their skills to
maximise these benefits. Into the future, emission levels
will call for further developments, but alternative fuels to
current fossil fuels, such as diesel, are most likely going
to be the way to go,” concludes Schulz.
5TWA | Jan/Feb 2013
Southern Africa
6 TWA | Jan/Feb 2013
In this issue’s hot seat we put Scania’s MD, Steve Wager, on the In this issue’s hot seat we put Scania’s MD, Steve Wager, on the
spot asking him key questions about the company and why fl eet spot asking him key questions about the company and why fl eet
operators should be utilising Scania’s range of commercial vehicles.operators should be utilising Scania’s range of commercial vehicles.
HOT SEAT
SCANIA
“By understanding the whole chain, we can not only improve our customers’ transport effi ciency, but the effi ciencyof the whole chain”
Why should fleet operators consider purchasing Scania trucks for their operations in both South Africa and
the Southern African region?Scania trucks have been developed for use in the most
demanding markets with high technological content, high
performance and outstanding fuel consumption backed by
24/7 service and parts backup.
How is Scania ensuring it not only understands its customers but also the customer’s custom-ers, so you can ensure you have the best trans-port solutions for them?It is key to understand the customer’s customer – let us call
it the industry. Our customers are normally the link between
ourselves and the industry. By understanding the whole chain,
we can not only improve our customers’ transport efficiency,
but the efficiency of the whole chain. All parties will benefit
from it. Around the world, Scania is conducting field tests
within different industries to evaluate how to optimise trans-
port solutions for the future. That includes higher payloads,
increased efficiency, less environmental impacts, lower
operational costs, etc. These tests are conducted with the
participation of the whole chain so that all parties can ben-
efit from the knowledge that we get.
What makes Scania’s trucks different from its competitors?Our trucks are unique but our outstanding transport solu-
tions package makes the real difference. These include:
1. Driver comfort and safety – Our cabs offer a high
degree of safety features to protect the driver in case of
an accident and conforms to the Swedish crash test.
Comfortable sleeper bunks designed by a leading mat-
tress manufacturer ensure a good night’s rest.
2. In-house insurance – As part of our one-stop-shop policy
we offer in-house insurance to our customers.
it
s
s-
s,
er
e
-
f
y
3. In-house financing – Scania Finance, our in-house finance
company, offers financial packages to suit customer
needs and speed up transactions.
4. Wholly owned dealer network – Our dealer network is
wholly owned giving us direct control over sales, services,
pricing, deliveries and customers.
5. Driver academy – Our driver academy offers driver train-
ing packages to ensure trucks are operated within design
parameters ensuring best returns on investment for
the customer.
6. Operating economy – When operated within legal limits
like loads and speed driven by a trained driver, our trucks
deliver outstanding results.
7. A 24/7 call centre – Our call centre is manned by
top technicians and services sub-Saharan Africa to
attend to unlikely breakdowns. Scania parts are available
from our dealer network with back up from our central
parts warehouse.
Developed for the most demanding markets
7TWA | Jan/Feb 2013
HOT SEAT
at the huge number of people liv-
ing here, consuming goods, need-
ing transport, the possibilities for
Scania as a provider of transport
solutions is great. There is a clear
connection between GDP and the
need of transport. When the world
moves out of this recession, we
will have a very positive growth in
our industry.
Bringing your wealth of experience from having worked in both the UK and Europe, how is the South African truck market faring compared to the UK and European markets?The European transport industry is generally far more
mature than in Southern Africa, but nevertheless customers’
demands from their transport solution providers are largely
the same. Operators are seeking maximum uptime to sup-
port the ever-increasing demands of their customers and
of course they are looking for the lowest possible total cost
of ownership. Excellent customer service and a wide range
of service offerings are thus essential ingredients for a suc-
cessful operation here. Scania is thus able, from its European
market experience, to offer extensive transport solutions
including truck rental, repair and maintenance contracts,
financing and insurance, workshop takeovers – the list is
almost endless.
“Our customers are buying a premium product at a premium price and they expect a premium return on their investment”
How important is continuous driver training by Scania to those fleet owners who have purchased and are purchasing your vehicles, especially with the technology now available in your trucks?Very important! The role the driver plays is critical to the suc-
cess of any transport company. The better trained the driver
is, the more economical the operation of the fleet will be. But
it is not only economic factors such as fuel consumption,
lower maintenance and residual values that are positively
affected by driver training, the range is much wider than that.
Safety, environmental factors, improved employee satisfac-
tion and retention, the list continues… Our customers are
buying a premium product at a premium price and they
expect a premium return on their investment. Driver training
is the key to utilising the vehicle to its full potential.
Looking at the economic and political land-scape in South Africa, are you optimistic about the future of Scania and Southern
Africa, and why? Yes I am. South Africa has its
internal challenges, but the
majority of the problems that
we see today are caused by
external factors, very much
connected to the downturn
in the global economy. Looking
8 TWA | Jan/Feb 2013
FESARTA NEWS
THE EAST AFRICAN COMMUNITY in
partnership with the United
States Agency for Internation-
al Development has launched
the Revenue Authorities Digi-
tal Data Exchange platform
in Tanzania.
The Revenue Digital Data
Exchange is a software plat-
form for customs and transit
data exchange, manage-
ment and reporting. It allows for near real-
time transmission of customs documentation
to authorised public and private sector users
at key border posts and cities across the fi ve
countries within the East African Community
(EAC) – Burundi, Kenya, Rwanda, Tanzania
and Uganda.
The software saves time and money by
shortening cargo processing times and
reducing the number of offi cials needed to
process cargo as some of the largest non-
tariff barriers to trade and cost to businesses
in East Africa are delays at border crossings.
FIVE SOUTHERN AFRICAN COUNTRIES
plan to coordinate their rail services to bolster
trade through Africa’s largest port in Durban.
The deal will do away with bilateral agree-
ments, which complicate the export of copper,
grain and containers across fi ve countries
through South Africa.
“The main objective is to align the fi ve railway
lines towards a unifi ed railway system on the
North-South Corridor by establishing a Joint
Operating Centre in Bulawayo,” says Nyameka
Madikizela, head of international business at
Transnet Freight Rail.
EAST AFRICA
New software platform developed by theregion saves time and money
SOUTHERN AFRICA
Rail link to streamline Southern African trade
Effi ciencies at borders are now achieved
through advanced notifi cation of shipments
and completion of documentation before
goods arrive. Advanced completion of cus-
toms declarations can save up to 12 hours in
transit time at border crossings.
The Revenue Digital Data Exchange is
owned, operated and maintained by the
revenue authorities of East Africa and was
developed by the EAC along with the national
revenue authorities with support from the US-
AID East Africa-funded Competitiveness and
Trade Expansion (COMPETE) programme.
Railway companies in the Democratic
Republic of the Congo and landlocked Zambia,
Zimbabwe and Botswana will streamline their
existing rail infrastructure to facilitate transport
to South Africa’s Indian Ocean port.
The lack of a regional deal causes many
delays in exports and imports. Increased
outside trade with the continent has seen a
greater need for intra-regional cooperation to
get important resources across vast areas to
ocean ports.
“The opportunities exist in copper, chrome
ore, etc., where the mines need some con-
fi dence in rail and, by cooperating
through this agreement, we can devel-
op a strategy that will provide capacity
immediately,” explains Madikizela.
The deal will see rail take over vol-
umes that the region’s roads mostly
carry at the moment, she adds.
It will also bolster Durban’s competi-
tiveness against ports in Tanzania on
the Indian Ocean and Angola on the
Atlantic. The rail centre, run from Zim-
babwe, is due to launch this year.
SUB-SAHARAN AFRICA
Poor maintenance “threatens roads in sub-Saharan Africa”ROAD TRANSPORT IS ONE of the focal
sectors for the European Development Fund
cooperation strategy with most sub-Saharan
African countries.
Financially, it is by far the most important
cooperation sector, with approximately
€7.4 billion (R86.61 billion) in European De-
velopment Fund (EDF) commitments made
in this region between 1995 and 2011.
However, improper road maintenance and
vehicle overloading is putting the sustainabil-
ity of sub-Saharan road network into danger.
In sub-Saharan Africa, roads are the domi-
nant mode of freight transport, accounting
for more than 80% of total movements of
goods and services and transport needs are
growing rapidly.
The aid-recipient countries visited by the
European Union (EU) do not do enough to
ensure the sustainability of road infrastruc-
ture. In all partner countries visited, roads
are affected to varying degrees by premature
deterioration. Most of these countries have
adopted institutional reforms, notably entail-
ing the creation of road funds and road agen-
cies, and made signifi cant progress on road
maintenance. However, many challenges re-
main to be addressed in all of them to ensure
appropriate maintenance. Although spending
on road maintenance has increased over time
it remains insuffi cient to cover the needs.
“In Europe, we are used to several options
for our transport. In sub-Saharan Africa, if it
is a question of transport, that means roads.
Unless the EU Commission and its partners
in sub-Saharan Africa start taking sustain-
ability of the roads very seriously, they will be
in danger of losing what we’ve built togeth-
er,” says Szabolcs Fazakas, the Economic
Commission for Africa member responsible
for the report. “They [African leaders] need
to take responsibility for enforcing load limits
and to maintain the roads properly.”
9TWA | Jan/Feb 2013
FESARTA NEWS
THE THREE EAST AFRICA GOVERNMENTS
of Tanzania, Rwanda and Burundi have reiter-
ated their political will and commitment to
hasten the proposed Isaka-Kigali-Musongati
construction project of a railway line, which has
been in discussion for 10 years without formal
implementation.
Transport ministers of the three countries:
Dr Harrison Mwakyembe (Tanzania), Alexis
Nzahabwanimana (Rwanda) and engineer Moise
Bucumi (Burundi) have also agreed to sign a
Memorandum of Understanding, binding the
countries to results of studies and agreements
on how to go about implementing the project.
EAST AFRICA
Transport ministers discuss Isaka-Kigali-Musongati rail project study
EAST AFRICA
The highest amount of bribes from transporters and drivers along the transport routes
The fi ndings of the completed phase one
feasibility studies were conducted by DB
International of Germany in 2009 and
Burlington northern Santa Fe (BNSF) of the
United States. The two fi rms then considered
the project to be economically viable and
fi nancially feasible.
Current project coordinator Josephine
Uweneza of Rwanda, in her presentation to
members of a Joint Technical Monitoring
Committee of the three countries, highlighted
this study in her report adding that a detailed
study would be completed by the end of
March 2013.
EAST AFRICA
Free trade has a way to go as non-tariff barriers push up cost of doing business in the regionBUSINESSES IN EAST AFRICA will
have to wait longer to reap the fruits of free
trade, thanks to non-tariff barriers.
According to a report by the East African
Community (EAC) Secretariat, rather than
doing away with non-tariff barriers (NTBs)
by December 2012 in accordance with
the EAC plans, some countries have even
introduced fresh ones – about 10 – while
35 remain unresolved. Only 36 have been
resolved.
The Secretariat also found that differ-
ences over elimination of the barriers
had deepened, denying the region larger
markets, economies of scale and promotion
of local, regional, and global trade — the
benefi ts envisaged with free trade among
the nations.
This means businesses will have to con-
tinue incurring huge costs arising from the
NTBs – mainly weighbridges, roadblocks,
poor infrastructure, unnecessary delays
at border posts and lack of harmonised
import and export standards, procedures
and documentation.
The sad state of affairs is blamed on the
absence of a legally binding framework
that has left businesses at the mercy of
individual countries. A draft law meant to
punish countries that fail to implement
agreed upon mechanisms to eliminate
trade barriers was submitted to the regional
parliament in November 2012.
EAC secretary-general Dr Richard
Sezibera says a legal framework has been
developed and is awaiting comments from
member states.
A SURVEY BY TRANSPARENCY INTERNA-TIONAL KENYA and TradeMark East Africa
has revealed that regulatory authorities in East
Africa demand the highest amount of bribes
from transporters and drivers along the trans-
port corridors.
According to the report, titled Bribery as a non-tariff barrier to trade: a case study of East African trade corridors, Tanzania’s regulatory
authorities rank worst at US$12.64 (R110.76)
followed by Kenya at US$6.72, then Uganda at
US$3.67, while Rwanda ranked fourth
at US$0.679 with Burundi being the
lowest at US$0.293.
The survey, conducted in col-
laboration with Transparency
International chapters in
Burundi, Rwanda, Uganda
and the Transparency
forum in Tanzania,
further indicates that bribery costs in Tanza-
nia per year consisted of about 18.6% of the
value of goods transported.
Lisa Karanja, director of Private Sector
and Civil Society, from TradeMark East
Africa (TMEA), which funded the study, says:
“Regional integration is gaining pace but ex-
istence of non-tariff barriers continues to be
a deterrent in the full implementation of the
various protocols. TMEA commissioned this
study with a view to enhance the advocacy
for the elimination of non-tariff barriers.
“We expect a comprehensive dialogue
between state and non-state actors to
address the key issue highlighted by this
report.
“A resolution of the identifi ed issue will
lead to a more competitive business environ-
ment that will result in increased trade and
ultimately prosperity for East Africans.”
10 TWA | Jan/Feb 2013
A R140 MILLIONgeneral bulk ship-
loader is the latest
addition in Transnet
Port Terminal’s
R33 billion Market
Demand Strategy in-
vestment programme.
Custom-built to complement the terminal’s
operational envelope, the loader was de-
signed in Austria and built in China; however,
South African engineering company Sandvik
has managed its entire procurement. Its capacity is a guaranteed
2 500 tph at a bulk density of 1.9 t/m3. The linear travelling loader will
be suitable for all export commodities the terminal handles including
coal, magnetite, chrome and chloride. Just over 70% of the terminal’s to-
tal commercial trade is export. The addition of equipment is aimed at the
Market Demand Strategy’s promise of facilitating unconstrained growth,
unlocking demand and
creating world-class
port operations through
improved effi ciencies.
A skills transfer
opportunity has also
been created through
Sandvik where Transnet
Port Terminal operators and the
technical team will be trained
for sustainable operations. The
pre-assembled loader will be of-
fl oaded and installed upon arrival
to undergo commissioning.
The machine is scheduled to be
fully operational by April 2013.
NEWS DESK
MOZAMBIQUE
MCLI AGM Corridor update eventTHE MAPUTO CORRIDOR LOGISTICS Initiative is hosting its Cor-
ridor Update event on 21 February 2013 at the Kambaku Golf Club
in Komatipoort, which overlooks the confl uence of the Nkomati and
Crocodile Rivers with breathtaking views of the Kruger National Park.
Maputo Corridor Logistics Initiative (MCLI) members and corridor
stakeholders across the logistics supply chain will attend the meeting,
which takes place during a gala dinner in the evening.
There will be a short programme of AGM proceedings and a report
from the two MCLI chairmen. The Corridor Update will then focus
on progress on the 24-hour one-stop border post at Lebombo/Res-
sano Garcia with the keynote address being shared by the South
African Revenue Service and Alfandegas Moçambique. In addition,
Transnet Freight Rail, Swaziland Railway and CFM will give an update
on developments regarding the rail service to the Corridor and the
new services into Maputo via the Goba line in Swaziland. TransAfrica
Concessions, the N4 road concessionaire, will also provide insight
into the developments and upgrades planned on the Johannesburg to
Maputo route.
The Maputo Port Development Company will also present an update
on the port’s growth trajectory and its investment roll-out in line with its
2033 master plan. A bus tour to the Port of Maputo will take place on
22 February before returning to Johannesburg late that same evening.
Before the gala evening on 21 February, a Golf Day has been planned
with golfers taking to the fi eld in a Four Ball Alliance (2 Scores to Count)
competition. This presents a wonderful networking opportunity while
playing a round of golf on one of the Lowveld’s beautiful golf courses.
For non golfers a number of local excursions including game drives
into the Kruger, a luxury day spa experience, aerial game viewing and
the possibility of visiting a rhino and rare antelope breeding programme
are being planned.
For more information about the Corridor Update please contact admin@mcli.
co.za or call +27 (0)13 755 6025.
RICHARDS BAY TERMINAL
Equipment boost still tracking according to plan
SOUTH AFRICA
ATNS hosts Benin minister of transport
A BENIN GOVERNMENT DELEGATION led by its
minister of Public Works and
Transport, Lambert Koty, visited the Air Traffi c and Navigation
Services’ Aviation Training Academy in Bonaero Park, near the OR
Tambo International Airport.
“We are very impressed at the level of competency, knowledge and
skill in this organisation. The same can also be said with regards to
infrastructure and technology deployment. We should have been here
some time ago” said Koty.
The Air Traffi c and Navigation Services (ATNS) board chairman,
Mpho Mamashela, addressing the Benin delegation said: “Air trans-
port is a major contributor to global economic prosperity. Aviation
provides the only rapid worldwide transportation network, which
makes it essential for global business and tourism. It plays a vital role
in facilitating economic growth.
“Aviation safety is important for international trade and economic
development. Our work to promote safety through continuous training
also strengthens the global economy, because the two are deeply
intertwined. South Africa’s economic future is directly linked to reach-
ing beyond our borders for new trade and investment opportunities.
Our aim is to deepen ties with large, dynamic and high-growth mar-
kets around the continent.”
Rushj Lehutso, ATNS executive: Commercial Services, added: “The
global aviation supply chain’s link must be strong for the entire
system to function. ATNS is proud to have initiatives in place, aimed
at working closely with Benin’s aviation department to maintain and
enhance the integrity of the global aviation system. Together we will
improve the conditions for cross-border trade, economic growth and
long-term prosperity for generations to come.”
Celebrating the arrival of the Richards Bay Terminal’s new R140 million ship loader were (from left): chief maintenance offi cer, Shane Narainsamy; project managers Alec Schemel and Kris Naidoo; terminal manager, Victor Mkhize and general manager: Capital Projects and Maintenance, Logan Naidoo
The red ship loader pictured in the Port of Richards Bay after its arrival on 16 January
JOIN OUR COMMUNITY FOR FREE
LIKE INFRASTRUCTURE NEWS ON FACEBOOK
Have your say or get the conversation started about anything and everything related to the infrastructure and service delivery industries.
The @infrastructure4 tweets will keep you updated on all the latest, exciting and, of course, interesting happenings in the infrastructure and service delivery industries.
STAY IN TOUCH A weekly newsletter keeps you up to date
Sign up online for our FREE weekly newsletter and get an instant summary of the latest news, events and developments in the infrastructure and service delivery industries.
VISIT www.infrastructurene.ws TODAY
Scan here to go to website
Infrastructurene.ws brings together the communities from our three magazines – IMIESA, Water&Sanitation Africa and ReSource. It is a leading news hub, with in-depth articles, videos and podcasts, an events calendar, and full social media functionality.
THE SELF-REGULATION SYSTEM, as stipulated in the Road Trans-
port Management System (RTMS), is proving to be a very effective tool
for South African truck and bus operators in managing fl eets effi ciently
and cost-effectively, with many case studies to back up the success of
the roll-out. “The RTMS, which has been in operation since 2003 and
is fi nding growing support among fl eet operators, continues to show
outstanding results since implementation and supports the Department
of Transport’s National Road Freight Strategy as the fourth pillar in the
action plans,” comments the chairman of the RTMS national committee,
Adrian van Tonder of Barloworld Logistics.
“Currently there are 2 674 trucks and 395 buses (the Buscor fl eet)
from 68 company depots carrying the RTMS accreditation logo, with a
quantum leap in participation having occurred in the past 24 months,”
adds Van Tonder.
RTMS is an industry-led, government supported, voluntary self-
regulation scheme that encourages consignees and road transport
operators to implement a management system – a set of standards –
that demonstrates compliance with the Road Traffi c Regulations. It also
contributes to preserving the road infrastructure, improving road safety,
ensuring driver health and wellness as well as improving productivity.
Hino, one of South Africa’s leading truck manufacturers, is giving its full
support to assisting with the roll-out of RTMS. Hino uses its nationwide
dealer network as an important catalyst to spread the good news and
benefi ts of using the system to its customers and then assisting them
with the implementation. “We at Hino see the RTMS as a very important
SOUTH AFRICA
Self-regulation working well for SA transport industry
NEWS DESK
initiative in creating responsible truck operators who show concern for
the roads and environment while focusing strongly on fuel saving,” says
Hino South Africa’s vice president, Dr Casper Kruger. “Our support for
the RTMS has already extended to our dealers and we are sponsoring
a series of successful and well-attended information-sharing sessions
throughout the country to promote this programme. “We then encour-
age our dealers to keep up the momentum by following up with the
transport operators who are not on the system to take up the challenge
and assist them in developing a strategy to meet all the requirements,”
adds Kruger.
“The development of the RTMS fl owed over from initiatives by the
timber industry in KwaZulu-Natal at the beginning of the 21st century
to combat overloading, which causes damage to roads, while also con-
tributing to cutting the number of accidents involving trucks,” explains
Van Tonder. “The KwaZulu-Natal project was known as LAP (the Load
Accreditation Programme) and was also self-regulatory. This concept was
expanded with the addition of driver health, compliance with road traffi c
regulations and all aspects of road safety to establish the basis for RTMS
standards.” Driving forces in those early days included Paul Nordegen,
Oliver Naidoo and Andrew Kriek, and they formed a steering commit-
tee in 2006 to give momentum to the initiative. There is now a more
formalised RTMS national committee made up of representatives of a
host of stakeholder organisations and associations that is now driving
the project forward. Current chairman, Van Tonder, came aboard in 2009
and is extremely enthusiastic about this initiative.
12 TWA | Jan/Feb 2013
PROFILE
12 TWA | Jan/Feb 20013
Ngululu Bulk Carriers has a rich history dating back to the 1980s. Since then, the company has grown to become the dominant transporter in the ferrochrome sector and an extremely successful BEE owned and operated company. It is a shining example of how historically disadvantaged persons moved from a minority shareholding to take control between 2003 and 2009.
SUCCESSFUL BLACK EMPOWERMENT TRANSPORT COMPANY
Established in SA and expanding into Africa
12 TWA | Jan/Feb 2013
13TWA | Jan/Feb 2013 13TWA | Jan/Feb 2013
By the end of July 2004, both Luvhani and the current CEO Freddy Sinthumule had literally fallen in love with the company and decided to increase their stake to 26%
CHRIS LUVHANI, CHAIRMAN of Ngululu
Bulk Carriers, says prior to 2003 his invest-
ment company had no interest in expanding
into the transport and logistics sector.
BEE partner wantedIn the late 1990s, Lukas Potgieter, who founded the com-
pany in the 1980s, was under pressure from his mining
clients to become more BEE compliant as per the mining
charter.
“Prior to our introduction, Potgieter had tried a few
empowerment models, which were not successful, and
he almost got his fingers burnt in the process of trying
to find the right BEE partner. It was, however, through an
acquaintance that I was introduced to him and his com-
pany, Lukas Potgieter Vervoer.
“When I first met Potgieter in 2003, I told him that I did
not know anything about the transport industry and could
not buy a 26% stake in order for him to be compliant
according to the mining BEE requirements and therefore
appease his clients. However, I told him that I would be
interested in taking an initial 10% investment stake in the
company and if he was serious about having a true black
empowerment partner actively involved in his business, as
opposed to simple window dressing, then I would increase
my investment.”
Another condition Luvhani had when purchasing the
10% was that should he want to increase his stake in the
company both parties had to agree how much he could
increase his stake to. When Luvhani’s company purchased
the first 10% stake it was therefore agreed that if Potgieter
was genuine and wanted a proper empowerment partner
Luvhani would then take a controlling stake in the com-
pany within five years.
The deal was signed in December 2003 and was to take
effect in April 2004. By the end of July 2004, both Luvhani
and the current CEO Freddy Sinthumule had literally fallen
in love with the company and decided to increase their
stake to 26%. By 2008, Luvhani wanted to take control
of the company, allowing the owner to retire. In 2009,
he purchased a further 25% enabling Ngululu group to
take control. By the end of that year, a share buyback of
Potgieter’s remaining 9% saw Ngululu increasing its stake
to 56% of the issued shares in the company.
Name changeIt was at this time that Luvhani realised they had to look at
changing the name of the company to reflect the owners,
at the same time sending out a strong message to the
market that there had indeed been a serious empower-
ment deal within Lukas Potgieter Vervoer.
“Some of our major clients had been pushing for a name
change. I am a sensitive man and knowing the dynamics
of the industry I did not want to dent Potgieter’s image
because he had spent many years building up and estab-
lishing a credible company. But one day after we had seen
a client, Potgieter turned round and said that “some major
clients are complaining about the company’s name and it
is time to change the name to reposition the company in
the prevailing dispensation”.
Following Lukas Potgieter’s
retirement in May 2009, the
company was rebranded as
Ngululu Bulk Carriers and
rebranding of the assets was
completed by the end of
December in the same year.
Successful operations“I am extremely proud of
where the company stands
14 TWA | Jan/Feb 2013
The team from Mercedes-Benz Commercial Vehicles Centurian with the management of Ngululu Bulk Carriers following the recent delivery of the last of 80 Mercedes-Benz trucks purchased in a deal worth R160 million
today as a black-
owned company
employing about
650 people with
400 drivers. Our
business dominates the Eastern limb of the Bushveld –
the Mpumalanga area – with our operations going as far
as Francistown in Botswana, Maputo in Mozambique, and
Richards Bay and Durban.”
Ngululu Bulk Carriers’ clients are bluechip companies
and the company’s key operations involve transporting
chrome ore, ferro-chrome, nickel and platinum concen-
trates, reductants as well as energy coal.
“Key to the success of our operations is the high rate of
return cargo our trucks bring back. We believe in being
open and honest with our clients and when we quote we
tell our clients how much it costs if the truck has a return
cargo and the rate if the truck does not have a return
cargo. When the client arranges a return cargo we then
pass the full benefit on to them within the costing.”
One of the key drivers of this business is tracking the
vehicles carrying precious cargo over vast distances. “You
need to know where the trucks are
24/7 because carrying platinum and
nickel concentrate from the mines
means they are targets of criminal
elements.”
Ngululu Group also has a controlling
interest in a commercial tracking com-
pany – ITA Goup – based in Century
City, Cape Town, which provides the
monitoring services.
Apart from tracking commercial
vehicles across Southern Africa the
company also monitors all fuelling stops undertaken by
any of the trucks within the Ngululu Bulk Carriers stable.
“People can be quite innovative when it comes to stealing
fuel, which is a serious business and if not kept in check
can ruin a company. To keep this in check, all our vehi-
cles are refuelled at our depots or at predesignated truck
stops. When drivers want to refuel they have to first contact
us via an 086 number where we can ascertain if the par-
ticular vehicle being refuelled is scheduled for a refuelling
or not. Through this system we have successfully been
able to curb major fuel thefts from occurring.”
Diversifying and expanding“Where are we going? We intend both diversifying and
expanding our transport business not only in South Africa
but beyond our borders.
“Countries up north are growing at a faster GDP pace
than in South Africa and a lot of these are landlocked,
which creates great opportunities for us. This is why we
are expanding into the ports of Beira in Mozambique, Dar
es Salaam in Tanzania and Mombasa in Kenya. The beauty
about this East African link is that it is an economically
growing region and, because of the political stability in
those areas, there is no reason why a South African com-
pany should not expand into these regions. We are keenly
looking at the Caprivi Corridor as well and have advanced
plans to establish presence in Walvis Bay, Namibia. The
target areas there are Angola, Zambia and the DRC.
“Other expansion projects include providing technical
support for transport and logistics to mines in Zimbabwe
leveraging our vast expertise. We can both assist and prop
up companies in Zimbabwe, Malawi and neighbouring
states. So it is a win-win situation for everyone.”
Ngululu Bulk Carriers is striving to have 50% of its income
generated from outside South Africa’s borders by 2017.
“We are establishing a strong pan-African presence
and yes there are challenges, but I am a great believer
that where there are challenges you will also find vast
opportunities!”
Current operationsNgululu Bulk Carriers is a black-controlled company oper-
ating 262 tipper trucks, i.e, tractor and trailer combina-
tions, with a turnover of just under one billion rand.
The company has a robust truck replacement policy and
trucks are replaced at either 600 000 km or every three
years, whichever occurs first. Luvhani does not believe in
keeping trucks in the maintenance bay.
“Yes, new trucks are expensive but maintaining older
trucks is even more expensive. This strategy will not
change and because our trucks are properly maintained
we do not suffer major breakdowns, to the satisfaction
of our customers.” The fleet being operated comprises a
mixture of UD, MAN and Mercedes-Benz heavy commer-
cial vehicles. “We like to have a balance in our fleet and
have found these three OEMS to have trucks best suited
for our operations.”
The company is currently the only operation in South
Africa to have its entire fleet accredited with the Road
Traffic Management System (RTMS) – evidence that it
takes quality management seriously in its company.
All maintenance of its fleets is handled by the OEMS on-
site at its Steelpoort depot in Limpopo, which allows the
company to concentrate on its core business of transport-
ing various bulk commodities for its customers.
“I am extremely proud of where the company stands today as a black-owned company employing about 650 people with 400 drivers”
PROFILE
15TWA | Jan/Feb 2013
AFRICA ROAD
TRANSPORTFORUM 2 0 1 3
Solutions for intraregional trade
WHY SHOULD YOU ATTEND?
FIRST OF ITS KIND
BE PART OF THE SOLUTION
BE HEARD
NETWORKING OPPORTUNITY EFFECTIVE
-
-
-
-
HEAR FROMJoao Caholo,
Ben Martins,
Paul Maiyo Amos Marawa Vonesai Hove
LET’S DISCUSS THE REAL ISSUES
B Africa Road Transport Forum
BOOKING Early Bird
SAVE BY BOOKING EARLY!
Nomsa Masina t +27 (0)11 233 2600 f 086 663 6672
www.twa.co.za
Brought to you by Endorsed by
16 TWA | Jan/Feb 2013
COMMERCIAL VEHICLES
Iveco’s sales & marketing manager, Christophe
Longuet, says: “We are optimistic and foresee a growth
in sales, especially within the Southern African coun-
tries. Iveco recently signed a joint venture agreement
to manufacture the Eurocargo, Stralis and Trakker model
range in South Africa.We will be adapting the trucks for the
specific application required by the operators.”
MAN’s deputy CEO, Bruce Dickson, adds: “2013
will be a tough year, but the South African heavy
truck market has proved its mettle in recent reces-
sionary conditions. Direct foreign investment both in
South Africa and countries north of our borders, along
with government spending on infrastructure develop-
ment, continues to spur economic growth and a grow-
ing need for trucks. “MAN has the right products, ser-
vices and people to deliver added value
to our customers. By making enhanced
customer proximity a strategic direction
within the company, MAN has significantly
differentiated itself from other heavy-duty
truck suppliers in South Africa over the past
three years. Next year will see MAN contin-
ue this programme of enhanced customer
orientation to increase our market share.”
John Barnett, dealer operations
manager for International Trucks, is
also optimistic about the year ahead
What can fl eet operators expect from some key heavy commercial vehicle manufacturers during 2013? Simon FouldsSimon Foulds speaks to UD Trucks, Iveco, MAN and International Trucks to fi nd out.
stating: “The extra heavy commercial
vehicle sector should remain buoyant
for 2013 and increased volumes could
be expected when the government’s
proposed infrastructure project is
introduced. At International Trucks,
there are exciting plans to grow
our dealer network in Southern and
sub-Saharan Africa.”
Rory Schulz, gen-
eral manager: corporate planning
& marketing at UD Trucks Southern Africa, mentions:
“We believe the market will stabilise in the latter half of
2013, but the first six months could be tough. However,
we anticipate volumes to be similar to 2012.”
“At International Trucks, there are exciting plans to grow our dealer network in Southern and sub-Saharan Africa.” John Barnett, dealer operations manager from International Trucks
“The major focus remains on fuel consumption and it is perhaps too early to mention what will be introduced in 2014 onwards. We are, however, striving to be class leading. ” Rory Schulz, general manager: corporate planning & marketing, UD Trucks Southern Africa
The road ahead in 2013
17TWA | Jan/Feb 2013
COMMERCIAL VEHICLES COM
New productsUD Trucks Southern Africa will not be launching new mod-
els in 2013, but in early 2014 it will launch a new concept
vehicle range for Southern Africa.
At International Trucks, there are continuous product
improvements on various models to enhance the suitability
of the vehicles for operations in Southern and sub-Saharan
Africa. In 2013, MAN Truck & Bus SA will launch its MAN TGS
EfficientLine range of long-haul truck-tractors. The range
is based on the proven MAN TGS WW, which has estab-
lished a solid reputation in the long-haul market for its
fuel efficiency, excellent power-to-weight ratio and reli-
ability. The comfort and safety features, along with smart
technologies to further reduce fuel consumption, make
the TGS EfficientLine the ideal long-haul truck for
African operators.
Iveco will introduce the Daily 55S15W 4x4 in single and
crew cab to its medium range in January, with Euro 3
engine technology that is well-suited for the South African
market. The Daily 4x4 is equipped with front and rear
diff locks as standard that make it capable to take on any
road or obstacle.
In the extra-heavy commercial market, Iveco will launch
the new Stralis Hi-Way, which has just been awarded the
2013 International Truck of the year trophy. The Stralis
Hi-Way will be introduced in the second semester of 2013
and will be the company’s flagship model, equipped with
the Cursor13 Euro 3 engine capable of between 480 and
560 hp.
The cab design has been reviewed to improve the aero-
dynamics and keep a modern and appealing look. The
interior has been completely redesigned to ensure maxi-
mum driver comfort and ergonomics. The overall safety
features, like Adaptive cruise control, DAS (driver attention
support), Bi-Xenon headlights and drivetime running lights;
ESP and Hill holder will be standard. Iveco will also intro-
duce a facelift for the Eurocargo.
Carbon footprintDickson says: “The deployment
of trucks that limit carbon dioxide
emissions has become impera-
tive for fleet operators servicing
multinational supply chains.
While corporations are cur-
rently driving ‘green’ compliance
among their logistics service
providers, it is just a matter of
time before carbon
taxes become a
reality for truck fleet
operators in Africa.
“As such, lead-
ing fleet opera-
tors now consider
‘reduced carbon
footprint’ as a key
criterion when purchasing a new truck. The
route to achieving this is to supply extremely
fuel efficient vehicles. Diesel and carbon diox-
ide have a directly proportional relationship
– the less diesel burned by the truck, the lower
its carbon footprint.”
Schulz concurs: “Carbon footprint is often confused with
emission standards; in reality it relates directly to fuel con-
sumption. For every litre of diesel used, 2 664 kg of carbon
is produced. Thus the key remains in lowering fuel consump-
tion and looking towards alternative technology or hybrids
to improve the situation. The major focus remains on fuel
consumption and it is perhaps too early to mention what will
be introduced in 2014 onwards. We are, however, striving to
be class leading.”
Longuet concludes: “It is very important for our country to
have a greener carbon footprint. We are testing several Euro5
emission trucks with different fleet operators with positive
results. We find, however, that only a selected few fleet opera-
tors have a greener carbon footprint as a requirement when
purchasing trucks. This is mainly because of the condition of
our current fuel in the country. We are all moving in the right
direction and by 2014 I am optimistic more fleet operators
will start changing their fleets in order to ensure they have an
improved carbon footprint.”
“We are optimistic and foresee a growth in sales, especially within the Southern African countries.”Christophe Longuet, Iveco’s sales & marketing manager
18 TWA | Jan/Feb 2013
COMMERCIAL VEHICLES
MAN Truck & Bus is not only happy with how 2012 fared, but is also optimistic about the future. At the end of 2012 it was announced that Bruce Dickenson and Ray Karshagen had been appointed as joint CEOs. By Simon FouldsBy Simon Foulds
THE CHAIRMAN, MARCUS GEYER, says he is
going to step back and hand over the day-to-day
responsibilities to Dickenson and Karshagen as
the company aligns its sales with its Middle East
operations. Following the announcement, Dickenson says it
is a great honour and privilege to be appointed joint CEO
with his esteemed colleague, who is known as ‘Mr Bus’ in
the South African market place.
“Though we are happy with how 2012 fared, it was never-
theless a tough year. But being a positive individual I saw
opportunities and we continued our strategy of breaking
into new fleets.”
New markets“Over the past 18 months, we have been on a drive to
break into new markets where competitor fleets were
FUTURE OUTLOOK
Optimistic about 2013
for both truck & bus
19TWA | Jan/Feb 2013
COMMERCIAL VEHICLES
being operated and we are pleased that our strategy is
paying dividends. As a result, we have built a really strong
foundation from which to capitalise on as we continue
our growth.”
During this time, MAN made inroads into SAB and SAPPI,
where it dominated the market in the wood sector and deliv-
ered 74 vehicles to Unitrans across its various divisions.
Other companies using MAN trucks include Afrox, PEG
Logistics and Fairlands Dairy.
“We are very excited about 2013 and I believe it is going to
be another good year for the company. Though we predict
that the overall market will be flat, we still believe we will
have a good year. This is because we have the product and
our next step is to continuously improve on our service level
to continue satisfying our customers.”
Up Time PrincipleOne concept that MAN has been implementing is its Up
Time Principle, which is similar to that at a passenger car
dealership where after the vehicle is serviced the owners
receive their invoice.
“It has not always been this easy in the trucking sector, but
since we implemented this system we have made tremen-
dous progress that when a truck leaves our workshops it
takes the invoice for the work done as opposed to receiving
it at a later stage.”
The company has also aligned itself with Ipsos. “What is
very exciting about this whole concept is that we are not
only measuring the standards of the KPI for customer satis-
faction, but we are also on our brand and company values
along with our customer promises programme.”
TelematicsIn February 2013 the company will be launching its first
phase of fleet telematics specific to the MAN brand.
“We made a concerted effort of not delivering a generic
concept and spent considerable time with key customers to
understand their needs. We envisage the full implementa-
tion of this system in the third quarter of this year. It is a very
exciting project for the company.”
Trucks To GoAnother new concept being introduced by MAN Truck &
Bus is its ‘MAN Trucks To Go’, which, states Dickenson, is
a very exciting project for the company. It is based around
the company’s heavy commercial vehicle category where
trucks with predesigned bodies are placed on the floor.
Typically, the salesperson would secure an order for a
chassis and then the customer would buy the particular
body he required and would then approach the body
manufacturers and order accordingly or place an order for
the body with MAN Truck & Bus, which would then send the
chassis across to the body builder.
“We have now taken the initiative
where we have placed a number of
bodies on our trucks, which when sold
can simply be driven off the floor and
start operations immediately. We have
a stock holding of 50 such trucks and
we basically sell them off the shelf. In
our particular market, this is crucial
especially when a client requires a
truck right away and does not have the
time to wait for a body to be designed.
It is a very exciting project for us and
we believe it will pay dividends for
the company.”
ExportsGeyer, adds that the company is also
going to be focusing on its export busi-
ness into East Africa. “We have a com-
petent partner in Kenya catering for
this sector and we have built a plant in
the country capable of assembling the
knock down units imported into the region. We sent employ-
ees to the region to assist our Kenyan partner to establish
and grow the business in East Africa. At the same time, the
company has also expanded its network in Mozambique,
Zimbabwe, Zambia and Botswana.”
“We are heading in the right direction as we have the right
elements in place ensuring we grow MAN’s presence not
only in South Africa but into our neighbouring countries and
up through East Africa,” he concludes.
“Another new concept being introduced by MAN Truck & Bus is its ‘MAN Trucks To Go’, which, states Dickenson, is a very exciting project for the company”
Bruce Dickson, MAN’s deputy CEO
● Truck sales in 2012 were 1 900 units compared to 1 912 in 2011
● Bus sales in 2012 were 500 units compared to 459 in 2011
● Used vehicle sales were 600 in 2012 compared to 551 in 2011
● Parts sales also increased in 2012, where 760 570 parts were sold com-pared to 703 289 in 2011.
MAN Truck & Bus 2012 figures
20 TWA | Jan/Feb 2013
TRAILERS
Most cargo is transported by road throughout Africa. Having a state-of-the-art truck is rather meaningless if the trailer being towed with the load is not as effi cient or aero-dynamic as the horse. Simon Foulds Simon Foulds speaks to key players in the industry.
THE TRAILER IS an important piece of equip-
ment and is probably underestimated by the
general public. Fleet operators on the other hand
know the importance of having the correct trailer
behind the horse ensuring the load being delivered reaches
the destination undamaged and on time.
Paulo Ribeiro, financial manager at Paramount Trailers,
offers advice for operators transporting freight through
Africa. “As with most things, the importance lies in the plan-
ning process and understanding what tools will be most
appropriate for the conditions. We have to know where the
trailer will be operating so as to ensure that the product
manufactured will be able to handle the conditions. A
trailer that will be used in Africa is built differently to a trail-
er solely oper-
ating in South
Africa. Trailers
into Africa are
usually more
robust with addi-
tional strength-
ening being
incorporated into the trailer chassis. Furthermore, the
majority of trailers operating in Africa have a diesel tank
so that they can carry additional diesel for longer trips.
Another noticeable difference is that ABS brakes are not
a requirement for trailers operating in Africa but are are a
requirement in South Africa. Constant maintenance and
repairs of the trailers will go a long way in ensuring the
lifespan of the trailer is extended.”
Rynhardt Steenkamp, marketing manager at Afrit Trailers,
also says that the key to ensuring the efficiency of your
trailer is driver education. “This is critical because once a
product is operated and maintained correctly, maximum
utilisation should almost be guaranteed. We have found that
there is a perception in the industry that only trucks need
to be serviced and not trailers. This is not the case, and in
order to obtain the desired efficiency both truck and trailer
need to be serviced at the same intervals.”
In ensuring trailers continuously evolve so as to remain
efficient to operate, manufacturers are regularly modifying
their products to incorporate the latest trends so fleet own-
ers can continue enjoying the benefits of an efficient trailer.
Some of the trends being incorporated into the design of
OPERATIONS
Delivering optimum performance
20 TWA | Jan/Feb 2013
“As with most things, the importance lies in the planning process and understanding what tools will be most appropriate for the conditions”
21TWA | Jan/Feb 2013
ENDORSED BY
Heavy vehicle drivers take top honours
Road chaos to come?
Investigating the Brazilian connection
Trucking economy across SA
RFA's Gavin Kelly speaks about abnormal challenges ahead P16
ISSN 1684-7946 Oct/Nov 2012 Vol. 10 No. 5 / R35.00 incl. VAT
EXPERT OPINION
MAMAAMMM NNNNN
EX
2. PC and tablets1. PRINT 3. Smartphones
P1166946 Oct/Nov 20946 Occt/NNovv 220
ENDORSED BY
Heavy vehicle drivers take top honours
Road chaos to come?
Investigating the Brazilian connection
Trucking economy across SA
RFA's Gavin Kelly speaks about abnormal challenges ahead P16
ISSN 1684-7946 Oct/Nov 2012 Vol. 10 No. 5 / R35.00 incl. VAT
EXPERT OPINION
MAMAMMM NNNN
EX
Email your details to [email protected] to recieve a copy of Transport World
Africa every alternative month.
To recieve your digital copy of Transport World Africa every alternative
month go to www.3smags.co.za
WAYS TO RECIEVE
To recieve your digital copy of Transport World Africa every alternative
month go to www.3smags.co.za
HOT SEAT
ENDORSED BY
ISSN 1684-7946 Jun/Jul 2012 Vol. 10 No. 3 / R35.00 incl. VAT
"Truckers and supply chain logistics service providers want more than a truck. They want added value"
, Deputy CEO, MAN Truck & Bus SA
oil may have run out A viable alternative In for an overhaul
Emirates Skycargo
TRAILERS
the trailers range from disc braked axles and electronic
suspensions to roll stability, customised bodies for fuel effi-
ciency, lighter trailers, improved safety features and greater
flexibility, enabling different types of loads to be transported.
The bottom line, according to the trailer manufacturers, is
that clients want a trailer that burns less fuel but carries
greater loads.
“One of the trends we currently find in the market is
that our customers are looking for customised products,”
states Steenkamp. “Fuel efficiency is also important and
customers believe that the more the fuel efficiency the bet-
ter the trailers are for the environment due to less carbon
dioxide emissions.”
WABCO Automotive’s Enoch Silcock expands: “Disc-
braked axles and EBS braked systems with electronic
suspensions and roll stability are some of the latest trends
we are introducing to our trailers. Especially requested on
the upper market are higher value trailers for fuel tankers
and refrigeration units. The reason for this is because safety
is seen as a high priority and the operators tend to value
the long-term safety and operational efficiencies that come
from using the latest in brake technology.”
Ribeiro states: “Because transporting freight into Africa is
both time consuming and expensive, our clients are looking
for ways to arrange loads for both the away and return trips.
Therefore, trailer designs are being looked at to create flex-
ibility around a trailer so it is able to transport more than one
type of product or goods for both journeys, making it more
profitable for operators.”
Travis Piek, technical manager at Serco, says because
of the competitiveness of the transport industry, operators
are pushing the manufacturers for lighter, more fuel efficient
– aerodynamic
– solutions.
“This has a
twofold effect on
the transporter,
because they
want to be able
to carry a bigger
load yet be able
to burn less fuel
thereby increasing their overall profit margin. This is the
challenge for trailer manufacturers.”
“Because transporting freight into Africa is both time consuming and expensive, our clients are looking for ways to arrange loads for both the away and return trips”
22 TWA | Jan/Feb 2013
Scania continually delivers outstanding Scania continually delivers outstanding
service to its customers. MD Steve Wager service to its customers. MD Steve Wager
speaks to speaks to Simon Foulds.Simon Foulds.
COMMERCIAL VEHICLES
Ensuring efficient reliable transport solutions
STREAMLINING OPERATIONS
DURING THE SECOND QUARTER of 2012,
Steve Wager took over the helm of Scania South
Africa as MD and during his first seven months
at the company, he began introducing a new
method of managing and operating the business in a more
streamlined manner. He also spent time visiting
customers as well as understanding Scania’s
strengths within the South African market.
Structural change“From the beginning of January, one of the
positive changes being implemented within
the company is a structural change where
we have reorganised our retail operations
into five distinct regions and appointed
a regional director to manage and steer
each region. Their task will be to bring
the operations together in each region
and work in a more cross functional way
so that all the areas of business come
together effectively.
“This will create even greater team work
ensuring the five regions – Gauteng,
Western and Northern Cape, Free State,
KwaZulu-Natal and Eastern Cape – will
service our clients even more efficiently.
The intention is to get our peo-
ple to work more closely togeth-
er in finding customer solutions,
giving quicker response times
to customers as well as shorten the decision-
making process. We are creating more responsi-
bility within the regions in order to serve the customers
more efficiently.”
The solely owned operations in Namibia, Botswana and
Tanzania remain unchanged along with the independent
dealers in Malawi, Zimbabwe and Zambia.
The R460 gives drivers the optimum range of cabs for long distance haulage and other transport duties with few stops. Spacious, comfortable and powerful, these top-of-the-line trucks are meant to take on the most demanding jobs and the most challenging routes
customers as well as understanding Scania’s
strengths within the South African market.
Structural change“From the beginning of January, one of the
positive changes being implemented within
the company is a structural change where
we have reorganised our retail operations
into five distinct regions and appointed
a regional director to manage and steer
each region. Their task will be to bring
the operations together in each region
and work in a more cross functional way
so that all the areas of business come
together effectively.
“This will create even greater team work
ensuring the five regions – Gauteng,
Western and Northern Cape, Free State,
KwaZulu-Natal and Eastern Cape – will
service our clients even more efficiently.
The intention is to get our peo-
ple to work more closely togeth-
er in finding customer solutions,
giving quicker response times
to customers as well as shorten the decision-
making process. We are creating more responsi-
bility within the regions in order to serve the customers
more efficiently ”The R460 gives drivers the optimum range of cabs for
23TWA | Jan/Feb 2013
COMMERCIAL VEHICLES
MatrixThe new operational restructure is based on a similar matrix
structure operating throughout Scania globally and, accord-
ing to Wager, it is a proven method and brings the South
African operations in line with operations around the world.
“The regional directors report directly to me but still retain
their functional roles, so they wear two hats within the matrix
structure. This will bring us not only closer to our custom-
ers in understanding how their businesses are operated,
but also in understanding our customer’s customer as well.
This is very important because if we can understand their
needs and demands better it will shorten the decision-
making process, therefore making us both more efficient and
customer focused.”
MiningIn addition to this, during the first quarter of 2013 Scania is
opening its mining and off-road department. This depart-
ment will also operate in a cross-functional manner so
that the company will have experts who understand the
mining industry and, apart from selling vehicles into this
sector, will also be responsible for selling a whole solution
to a customer.
Scania is introducing an 8x4 heavy-duty tipper onto the
South African market. According to Scania, the vehicle will
compete extremely favourable on the market. “This particular
model is faster than our competitors’ and, though its payload
might be bit less, it is far more economical,” adds Wager.The
move into the mining sector in South Africa started earlier in
2012 and is part of a global strategy to tap into this market.
“The mining sector is not a new avenue for us as we have
been servicing vehicles that operate in that industry, but what
is new for us is selling Scania trucks designed and targeted
at the mining industry for specific use on a mine.
“It is a new opportunity for us as we define a niche product
offering we know is suited to the mining landscape and we
believe it is a winning concept as each vehicle will be modi-
fied to the customer’s specifications.”
Scania rentalFollowing a successful pilot project, the company is launch-
ing the Scania Truck Rental division. “It basically gives opera-
tors the chance to rent a vehicle from 24 hours to a year on
a short-term hire basis. Not only does it offer operators great
flexibility, it also caters for them during peak periods as
well as when they have either had a vehicle written off in an
accident or are waiting for new vehicles to roll off the produc-
tion line. This is a concept that has worked very success-
fully in Europe, particularly in the UK. It is a concept close
to my heart because when I
was based in the UK I was
responsible for Scania’s truck
rental operations. At the time,
I was responsible for 1 400
vehicles in the fleet covering
the UK market.
“Following our pilot project,
the sector is growing rapidly
and at the moment demand
is outstripping our supply. It
has really taken off among our
clients because all they have to do when collecting a vehicle
is put fuel in the tank and their own driver behind the wheel.
Everything else is catered for by Scania, including insurance,
vehicle tax, road fund licence and maintenance.”
Scania appointed a manager to grow this division on 1
November 2012 and the company is satisfied with how the
concept has been accepted among its operators. At this
stage, it is only operating in Gauteng, but will expand the
division across the rest of the country in due course. “The
greatest risk in truck rental is what they call the utilisation
risk – when there is a downturn in the economy no one
hires trucks.”
Scania used sector“We have also established a used truck operation and these
two activities will work closely together. I am also a big fan of
used trucks as this aspect was also a very successful opera-
tion in the UK when I was based there. It is a product offer-
ing we can give to our customers whether it is for a start-up
operation or for operators who want to supplement their fleet.
“Operators can lower capital costs by purchasing a used
truck through an OEM, We should be developing this sector
more over the next 12 months.”
New product offeringsApart from the heavy-duty mining tipper, Scania has also
introduced two new vehicles aimed at
the fleet operator: the G460 and the
P410. “The G460 has been well received
in the market and has been introduced
in a number of fleets with pleasing
results. The P410 is being launched into
the South African marketplace as from
January 2013.” Both vehicles share the
same driveline, gearbox and cruise system, but the G460 is
a higher specified vehicle and has a bigger cab compared
to the P410.
The road ahead“Scania is well-positioned within the marketplace and it is our
intention to carry on growing steadily as we keep on improv-
ing our products and services. I am optimistic about the road
ahead and Scania’s future growth not only in South Africa but
also through sub-Saharan Africa.”
Simosakhe Ngema, Scania production system co-ordinator for RPC MDZ
“The G460 has been well received onto the market place and has been introduced in a number of fl eets with pleasing results. The P410 is being launched into the South African market place as from January 2013”
24 TWA | Jan/Feb 2013
LIGHT COMMERCIAL
What does 2013 have in store for the light commercial sector? Simon Foulds Simon Foulds speaks to the manufacturers about the year ahead in the sector, about new vehicles and models, and how important is it for operators to consider a vehicle’s carbon dioxide emissions when making the purchase decision.
AT TIME OF GOING TO PRESS, the total sales
of light commercial vehicle between January and
November 2012 was 145 040 (an increase of
8 565 vehicles for the same period in 2011).
2013 forecastMlungisi Nonkonyana, Isuzu brand manager, says: “The motor
industry has shown good growth in 2012 and remains on target
to achieve 10% growth for the year. Due to ongoing economic
pressure, the forecast for 2013 remains flat at 2012 levels.”
Toyota media spokesperson Clynton Yon adds: “Competition
will intensify but we are confident that Toyota can hold its own
with the light commercial segment. Of course the vagar-
ies of the current economic climate have to be taken into
account; however, corporate business will remain buoyant as
fleets need to be replenished.”
GWM chairman, Tony Pinfold,
states: “Like everyone in the
industry, we are cautiously
optimistic – the current eco-
nomic situation, labour unrest,
etc., is of concern. These
uncertainties influence buying
decisions and we are watch-
ing this carefully.”
EfficiencyIsuzu has developed and released low rolling resistance
tyres as standard and optional fitment to specific models.
The company has also created a reduction of internal friction
in engines, transmission and axles by using low viscosity
synthetic oils. Changes to the turbo, charge air cooler, intake
system and EGR system on diesel models have resulted in
improved fuel economy.
Toyota has no immediate changes to the line-up in 2013,
although more efficient engine technology will filter down
to commercial vehicles as such engines become available.
Evidence of this can be seen in the new 2.5 Variable Nozzle
Turbo diesel engine (from the Fortuner) now doing service in
the latest Hilux Raider Double Cab variants.”
Regarding the Mitsubishi Colt range, even the entry level
single cab comes standard with ABS/EBD and dual airbags
for driver and passenger safety.
New vehiclesIsuzu is launching its sixth generation pickup during the first
quarter, which will be locally manufactured.
Toyota is not launching any new models, but is continuing
with its current range, though there will be running changes
and some specification upgrades that will be made known
closer to the release-to-dealer dates. GWM plans to fur-
ther expand its range with a base diesel single cab and
double cab.
Carbon footprintNonkonyana of Isuzu says: “Carbon footprint and fuel
economy will remain an important consideration for all fleet
operators and is definitely a key factor for them when making
the purchase decision.”
Toyota’s Yon adds: “Economy will always be a key factor but
it goes beyond fuel consumption. Overall cost of ownership
MOVING LIGHT LOADS
SA manufacturers remain buoyant
“The vagaries of the current economic climate have to be taken into account; however, corporate business will remain buoyant as fl eets need to be replenished”
LIGHT COMMERCIAL
and resale values also plays a part and has contributed to
Toyota’s supremacy on the sales front.”
GWM’s Pinfold adds:“We are very conscious of this but
the main problem is the quality of fuels available in South
Africa; we don’t have the best quality fuel to facilitate low
emission levels.”
Inner- and intercity deliveriesAccording to Nonkonyana, Isuzu offers a balance of econo-
my and reliability and is famous for its legendary ride com-
fort together with rugged toughness and superior off-road
ability combined with exceptional quality standards and
great heritage.
Mitsubishi believes its range of fuel efficient pickups has
proven reliability and is comfortable, safe and offers a high
ride height.
For GWM, it is the good value proposition that the com-
pany will continue to offer. It believes its load capacity is
an advantage over competitors, as is the cabin space, and
the smaller engine makes its vehicles far more fuel efficient.
The push on larger engines is not a value proposition for
the company.
Why operate your rangeAccording to Nonkonyana: “Isuzu is the best all-round com-
mercial vehicles offering a balance of economy and reliability
supported by a wide dealer network footprint in South Africa
and sub-Saharan Africa. According to the 2011 Competitive
Customer Enthusiasm results (IPSOS, formerly Synovate),
Isuzu is the top light commercial vehicle brand in South Africa.
Toyota’s Yon states that it is because of its legendary reli-
ability, largest dealership network in Southern Africa, parts
availability and affordabili-
ty (best in the latest Kinsey
Report) as well as the
best performer in the lat-
est Ipsos report (formerly
Synovate) that make Toyota the brand of choice.
Mitsubishi national marketing manager, Braam Faul, adds:
“The Mitsubishi Colt out sold Hilux in the early 2000s. Now
that we have included a single cab in the pickup line, cus-
tomers can buy their full range of light commercial vehicles
from us again.”
GWM’s Pinfold concludes: “We can offer good value for
money plus an excellent dealer footprint of 78 dealerships
throughout the country, which, with our parts supply, is
equivalent to the best in the industry.”
“Economy will always be a key factor but it goes beyond fuel consumption”
S ON FACEBOOKON FACEBO
Have your say or get the conversation started aboutanything and everythingrelated to the transport and logistics managementindustries.
The @twaeditor tweets willkeep you updated on all thelatest, exciting and, of course,interesting happenings in the transport and logisticsmanagement industries.
STAY IN TOUCH A weekly newsletter keeps you up to date
Sign up online for our FREE weekly newsletter andget an instant summary of the latest news, events and developments in the transport and logistics management industries.
STSTRURUCTCTURUREE NENEWSWLILIKEKE IINFNFRARASS
Scan here to go to website
Transport World Africa Online is a leading news and resource hub focussing on for the transport, logistics and freight induustry. It is a leading news hub, with in-depth articles, videos and podcasts, an eevents calendar, and full social media functionality.
THENEWS YOU
NEED TO KNOW
26 TWA | Jan/Feb 2013
LOGISTICS
“Every company that has a warehouse problem also has a transport problem,” David Lubinsky, MD for OPSI Systems, tells Simon FouldsSimon Foulds.
HOW DO OPERATORS get
the best value out of their fleet?
According to Lubinsky, it is all
about having the correct systems
in place to aid a company’s processes, ensur-
ing a company gets the best utilisation out of
a vehicle.
Though there are a number of different levers
of transport optimisation available to the industry, Lubinsky
highlights eight he believes should be considered by both
warehouse managers and fleet operators.
Optimising within a routeHere operators have to determine the best route for deliveries
to take so they can get an optimal performance from both the
driver and truck, thereby improving efficiency. “It could be a
simple matter of rescheduling the route and taking out as
many right turns as possible along the route,” he says.
Lubinsky adds: “But
it is more complex than
that, however; by plan-
ning the best possible
route and optimising
the sequence of deliveries, taking stop starts and traffic
congestion times into account, fleet operators can save up
to 10% on fuel, tyre and maintenance bills.”
Multi-vehicle optimisation – routing and schedulingUsing this lever, operators take the orders and the trucks
at their disposal and then decide which orders go out on
which trucks and the specific route these orders take. “This
has clear benefits for operators who implement the system
properly. Firstly, operators have to ensure all product, rout-
ing and vehicle information is captured correctly through the
transport management software, including the capacity each
vehicle can carry.
“Key to this system operating efficiently is having the cor-
rect stock being transported at each point along the map
routes, so the relative loading bay information is also impor-
tant when implementing the system.
“It can be hard to set up but once operational the big ben-
efit is companies know up front what products are going on
a respective route and this system also improves warehouse
efficiencies at the same time.”
Correct fleet selection“Having the right fleet immediately gives operators a huge
cost saving. Fleet operators need to look at the products
being delivered and ascertain through the company’s route
scheduling tools the cost of each type of vehicle operating
along the routes. In essence, you create a ghost fleet and
through your operating calculations determine the best type
of vehicles for the job. This information then assists the
SUPPLY CHAIN FORESIGHT
Optimising transport routing and scheduling
“Having the right fl eet immediately gives operators a huge cost saving”
27TWA | Jan/Feb 2013
LOGISTICS
loading bay slot is allocated and ready to receive the vehicle.
“For this system to operate efficiently it is critical that the sys-
tem allocating the slots and the process your hauliers use to
manage trucks respect the allocations.
“We did a study for a large FMCG company where the slots
for the loading bays created a big bottleneck in the whole
process. This proves how important it is to view loading
bays at warehouses as an important process and resource
that needs to have an operational plan similar to that imple-
mented for operating the trucks.”
Sharing fleets between depotsThis is ideal for a company with numer-
ous factories or depots that share its
fleet as opposed to individual fleets at
each operation within the company. “By
combining a fleet, a company saves in terms of operating
costs; it can be difficult to implement from scratch but if a
company gets it right it pays tremendous dividends.”
Optimising back hauls and inbound logisticsA problem for some companies is that after making a delivery
the trucks have empty loads when they return, which inevita-
bly costs the company money. But, according to David, fleet
operators can negotiate with their clients and customers to
improve their inbound logistics by using their empty legs for
their client’s outbound logistics.
“For some of our clients we have managed to negotiate
better rates for them for their raw materials by getting them to
transport the raw product to their premises on the return trip
after delivering finished products to customers. This way you
cut on operating costs and optimise the use of your vehicles
at the same time. You do, however, need to have a good
system list in operation because you are now monitoring
your fleet for both outbound and inbound deliveries. Initially,
there might be a disruption in the overall process, but once
the kinks to your system have been ironed out the company
will definitely benefit in the long term.”
Work the system“There are a lot of levers that companies can implement, but
these are eight that I have come up with and each one of
these is a way of pushing down on your distribution costs.
Each one of these levers introduced by companies would
have a definite percentage cost saving on your fleet optimi-
sation. And some of these would be applicable and others
not. Key here is considering what a company can do to
minimise costs, especially with the price of fuel continuously
rising. What are you doing to minimise your total distribu-
tion costs?
operator in choosing the best vehicle for the fleet. “It is advis-
able to run the same exercise through the chosen vehicles to
ensure operating calculations before making that big invest-
ment, which if done incorrectly will increase operating costs
and affect the overall bottom line.”
Activity smoothing over the periodWhen making deliveries to numerous customers on a weekly
basis, how do operators balance and ensure the deliveries
are done while optimising fleet operations in such a way that
it does not upset clients?
“It is difficult to find the right patterns, but not impossible,
especially when considering an operator might have an
uneven workload. So it is important to balance the volume
delivered and the number of stops.
“What needs to be done is to capture the profile of each
delivery and then allocate the correct amount of goods
needed to be delivered to the client ensuring they always
have stock on hand – especially within the FMCG market.
Through this method and by reducing vehicle peak travel
time by at least 20%, operators can achieve a huge saving on
their overall operating costs. The more operators can push
down their peak time travel, the better it is for their overall
operating costs and ultimately the company’s bottom line.”
Master route optimisationAn operator with multiple vehicles can predetermine routes
because it usually has vehicles visiting the same customers
frequently as is the case with many FMCG deliveries. In other
words, determine which customers are on a specific route
and keep following the same route all the time, therefore
optimising the regular routes in terms of efficient deliveries.
“Through this lever we were able to save the five million kilo-
metres travel time for one of our FMCG clients in one year.”
Minimising depot queuesThis particular lever entails ensuring scheduling loading bays
efficiently so when the scheduled trucks arrive the relevant
“The more operators can push down their peak time travel the better it is for overall operating costs”
28 TWA | Jan/Feb 2013
LOGISTICS
The importance of knowing exactly where your trucks and trailers are is more imperative nowadays than ithas ever been in the past, not only in South Africa but also as the fl eetleaves the country’s borders.
VEHICLE TRACKING
“Operating a multimillion rand fl eet as well as transporting goods worth millions is made all the more easy due to the latest tracking solutions”
Tracking into the future
operators need much more than just basic systems and are
focusing their efforts on a total solution now.”
Adds Pieter Coetzee, MD at Selftrack: “For our clients,
GPS live tracking combined with driver behaviour data is a
critical element.”
AdvantagesOperating a multimillion rand fleet as well as transporting
goods worth millions is made all the more easy due to the
latest tracking solutions, but what makes one solution better
than the next?
Kartun says: “I believe we have the best products on the
market place and this is backed up with our unmatched
service and installation capabilities as we literally deliver to
our clients what we say we can deliver: service – anywhere,
anytime and anyplace.”
Coetzee adds that their clients enjoy an increase in produc-
tivity, efficiency and client service, along with a decrease in
vehicle abuse, fuel use and maintenance costs.
“With effective fleet management technology installed,
transport operators are able to have direct control over
aspects like driver behaviour as well as vehicle movement
and utilisation,” states Pretorius.
“Having direct control over aspects like driver behaviour as
well as vehicle movement and utilisation means operators
can look forward to significant reductions in fuel and mainte-
nance costs, while also lowering their accident rates.”
In addition to saving an average of 10% on fuel costs, MiX
Telematics’ fleet customers report significant improvements
in vehicle utilisation and driver behaviour. For example: “A
long-term trial with Sylter Verkehrsgesellschaft (SVG) from
Germany revealed a net saving of €2 200 (R25 293) per
year per vehicle, while another customer of ours, RATP
London United, achieved a 17% reduction in its accident
rate and a 10% improvement in fuel efficiency following the
implementation of a customised risk reduction programme,”
expands Pretorius.
THERE ARE NUMEROUS tracking solutions avail-
able for fleet owners and Transport World Africa
speaks to Mix Telematics; Intelligent Transportation
Systems South Africa and Self Track to find out
how operators can track the movements of their valuable
cargo 24 hours a day.
Trends“With rising fuel prices,
the ongoing need to lower
carbon emissions and
driver safety, all being of
high importance, time is
of the essence for trans-
port operators to make
use of the fleet management technology available to them
today,” says Gert Pretorius, MD of MiX Telematics (Africa
– Fleet Solutions).
Eddie Kartun, director at Intelligent Transportation Systems
South Africa, states: “Many transporters are moving away
from the standard vehicle tracking products and moving
ahead with a more holistic and consolidated approach to
managing their fleets and drivers. Transporters and fleet
29TWA | Jan/Feb 2013 292929292292TWWWAWAWAWAAAW ||||| JJaJanJaan/Fe/Febb 2020202020202020202020013131313131313131311133
LOGISTICS
“Being at the coal face and
having dealt with numerous
unusual requests over the
years allows us to under-
stand our clients’ requests
and needs, and therefore
we can custom fit the right
technological solution for our broad range of clientele.”
Pretorius voncludes: “MiX Telematics embraces a consulta-
tive approach, working closely with partners and customers
to ensure the implementation of solutions that are world-
class and locally relevant.”
The company’s products and services are tried
and tested, strengthened by a heritage that dates
back to 1996.
MonitoringPretorius says trailer tracking has the potential to become
one of the fastest growing sectors in the local telematics mar-
ket, with South African fleet managers anxious for solutions
that will allow them to both manage and track their trailers as
well as their associated high-value or high-risk loads.
“For the first time, fleet managers can have full control of
their trailers’ locations and activities, whether they’re station-
ary or on the move. By knowing the location of one’s trailers
at all times, fleet utilisation – and hence efficiency – can be
improved dramatically and instances of lost trailers reduced
irrespective of whether they are coupled with or detached
from the horse or truck tractor.
“Until now, fleet managers have had to rely on information
derived from their truck tractors to manage their trailers. “This
has made the separation between a truck tractor and its
trailer both unsafe and inconvenient – especially when high-
risk or high-value loads are involved.”
According to Coetzee: “Provided the SIM card used in the
systems can access the local GPRS cellular network of the
country where the truck is driving through, then the vehicle
can be monitored by Selftrack throughout Africa.”
Intelligent Transportation Systems South Africa
is largely dependent on communications
coverage within the borders of South
Africa but also has products that can
go cross border and monitor assets on
the continent.
The best operating solution “The advantage of our products is that it is self-managed,
affordable and easy to use,” explains Coetzee
According to Kartun: “The company has over 30 years’
experience in this very intricate and demanding market. We
also select the best solutions for our client’s unique needs
and deliver a great service.
“Until now, fl eet managers had to rely on information derived from their truck tractors to manage their trailers”
29TWA | Jan/Feb 2013
30 TWA | Jan/Feb 2013
MARITIME
The maritime sector in Africa has great potential, yet there are many obstacles standing in the way of future growth and investment opportunities, which need to be managed and overcome.
BUKKIE ADEWUYI, senior manager of the Risk
Advisory division at Deloitte, outlines what should
be done to ensure the continent becomes a
strong economic force.
PiracyAfrican leaders may have the political will to fight piracy,
but this needs to be clearly demonstrated and entrenched
through intensified continental collaboration. African coun-
tries should formalise and implement a continental maritime
strategy for combating piracy, illegal sea trafficking and other
ills currently facing the coastal areas. To achieve this, there
needs to be maximum cooperation between African leaders.
The African Union (AU) can play a major role in the current
piracy battle collaborating
with the European Union
and the United Nations,
both of which have been
involved in fighting piracy.
Though the AU is cur-
rently driving the agenda
to have an Integrated Maritime Strategy for the continent, an
initiative that is long overdue, it has set a target of 2050 as
the deadline for ensuring that African coasts are secured. The
question is, what happens in the interim? Without a common
vision and will by African leaders to see and drive this as a
collective battle, the efforts and resolutions of the AU may
continue to be undermined.
Port operationsWith 90% of goods arriving via sea, there are a number of
issues that need to be resolved including port efficiency,
dwell time, handing costs, control procedures and manage-
ment of container traffic. The ports have become congested,
which sees cargo clearance taking longer than it should
and customs processing taking twice as long as it does on
other continents. African ports need to be expanded, with
additional terminals to handle the increasing maritime traffic
and accommodate the increased size and volume of the new
generation container vessels.
Another possible solution is the construction of additional
ports. Adding more shipping routes to the coastal areas
would also help in relieving current port capacity constraints.
Technology is the biggest factor that can assist ports
throughout Africa become more efficient. The increasing use
of technology by port authorities in Kenya and Ghana is pay-
ing dividend through more efficient flow of cargo.
However, a lot more still needs to be done across the conti-
nent to ensure technology is rolled out and utilised effectively
to reduce processing times.
Infrastructure and intra-regional tradeThe logistical infrastructure is lagging behind, with roads,
airports and railway systems in need of upgrades and refur-
bishments. According to the World Bank, Africa requires
US$93 billion (R823 billion) per year over a period of 10
years to close the infrastructure gap and it currently only has
access to US$43 billion per year. The length of time it will take
to improve infrastructure in Africa depends on the will and
efforts demonstrated by African leaders.
The world is ready to invest in Africa and assist the con-
tinent to overcome this problem, but leaders need to create
an enabling business and regulatory environment that will
assure investors that their businesses can be conducted in a
transparent, honest and efficient manner.
Africa needs to form sustainable partnerships with
foreign investors and create a framework that ensures
it can either bring back African skills or develop new
ones to ensure that in the long run, Africans can also
do things for themselves. The continent cannot continue to
rely on Western and Eastern powers for skills and develop-
ment in the long term.
IMPROVING LOGISTICS
“The continent cannot continue to rely on Western and Eastern powers for skills and development in the long term”
Unlocking thegreat potential
in Africa By Glen Tancott
SUBSCRIBER CONTACT DETAILS
Surname: _______________________________
Name: __________________________________
Designation:_____________________________
Company:_______________________________
Type of business:_________________________
Address:_________________________________
_______________________Code:_____________
Tel:__________________ Fax:_______________
Cell:_____________________________________
E-mail:___________________________________
Subscriber VAT Reg. No:__________________
PAYMENT OPTIONS
EFT Deposit: Banking detailsNedbankBranch code: 128405Acc. number: 1284129934Acc. type: currentAcc. name: 3S MEDIA
Mastercard Visa
Expiry date:_______ / _______
Credit Card Number
Last 3 digits on back of card:
Signature:_____________________________
Date:_________________________________
Fax or e-maail proof of payment to activate your subscriptionn. Your magazine will be mailed to you.
OT SEATHOH
ENDORSED BY
ISSN 1684-7ISSN 1684-7946 Jun/Ju946 Jun/Jul 2012 Vol.l 2012 Vol. 10 No. 3 / 10 No. 3 / R35.00 incl. R35.00 incl. VATVAT
"Truckers and supply chhain logistics service providers "want more than a truck. They want added value"w
, Deputy CEO, MMAN Truck & Bus SA
oil may have run out A viable allternative In for an overhaul
Emmirates SSkyycargo
ENDORSED BY
HeavyHe ehivehiicle clelcle drivedrivedrivers tars tars ke tokek p honourss
Road ad chaoschaos to coto coto coto ?me?me?
Invesestigattigatinging the Bthe BBrazilrazillilianian iiancoconnenectionction
T kiTrucking economy across SA
RFA's Gavin Kelly speaks about abnormal challenges ahead P16
ISSN 1684-7ISSN 1684-7946 Oct/No946 Oct/Nov 2012 Vol.v 2012 Vol. 10 No. 5 / 10 No. 5 / R35.00 incl. R35.00 incl. VATVAT
XPERT OPINION
MMMMMAANNNNN
EX
Transport World Africa covers transport and logistics solutions across
management, commercial vehicles, freight and forwarding, supply chain and logistics, risk and insurance, and transport projects.
SUBSCRIPTIONS:
*
MEDIA
SA Rand
SADCUS$
Int.US$
Hard copy and digital 290* 80*
Digital only 200* 40*
32 TWA | Jan/Feb 2013
The Durban-Free State-Gauteng Corridor has been highlighted by government as one of its fi ve massive infrastructural projects planned to boost the economy. Not surprising, considering it is one of the busiest routes in the country and ferries approximately 30 million tonnes of road freight per annum.
DURING HIS BUDGET SPEECH at the begin-
ning of 2012, the then minister of transport
Sibusiso Ndebele said the revitalisation of this
transport corridor forms part of government’s
2050 vision and is the backbone of South Africa’s freight
transportation network, vital in facilitating economic growth
for the country and the Southern African region. Its major
objective, according to Ndebele, is to deal with infra-
structure and operational planning, an investment as
well as demand forecasting over a 50-year horizon.
Research by the government into the total feasibility
of the revitalisation of the Durban-Free State-Gauteng
Corridor estimates the Port Developmental precinct to
cost R100 billion, with an estimated half a trillion rand
projected for the entire corridor.
The project developmental components are the Port
of Durban, the Durban-Gauteng road corridor, the
Durban-Gauteng rail corridor (including high-speed
rail), logistics hubs and terminals within the corridor,
as well as supportive local area land-use plans. It
is envisioned that once these elements are in place and
operational, it will reduce the cost of doing business,
ensuring the country’s economy remains competitive in
global markets.
It is estimated that freight carried by roads will grow by
between 200 and 250% over the next 20 years.
Transnet is of the opinion that too much freight travels
by road instead of rail and that this needs to be reversed.
Hence, the parastatal is earmarking R200 billion (two thirds
of its capex budget) on ensuring the rail corridor between
Durban and Johannesburg is able to accommodate the
movement of freight by rail while able to accommodate
additional cargo to both the Johannesburg dry port and
City Deep areas.
Mboniso Sigonyela, spokesperson for Transnet, says:
“This corridor is the busiest freight corridor in the country
and the focus of the programme is on improving efficiency
and effectiveness of freight operations along the corridor,
ensuring that capacity is provided ahead of demand. It is
our intention to achieve these objectives in a manner that
DURBAN-FREE STATE-GAUTENG CORRIDOR
Improving logisticsbetween
Freight carried by roads will grow by between 200 and 250% over the next 20 years
REGIONAL FOCUS CORRIDOR
33TWA | Jan/Feb 2013
the Durban port is going to face over the next 20 years. It
is thus vital for Durban that the port and the logistics link to
Gauteng are as efficient as possible.”
The N4 has opened the Johannesburg to Maputo road
link and it is envisaged the rail upgrades along this route
will follow. The Trans-Kalahari rail link through Botswana to
Walvis Bay is back on the agenda and could remove the
need for Europe- and US-bound
shipping to round the Cape.
A lot of commodities are
currently brought down to
Durban from Zambia and the
Democratic Republic of the
Congo by road, and the port
developments in Tanzania
and Northern Mozambique
will offer cost-effective alter-
natives over time.
Pottas adds: “The shift from road to rail will reduce
the cost of doing business and carbon emissions, and
provide significant productivity and operational efficiency
improvements. Also, the Trade Port is set to be Southern
optimises socio-economic development along the corridor.”
Corridor revitalisation Other aspects of the proposed revitalisation programme
include creating a dry port at Cato Ridge where container
and bulk cargo can be railed from the port to reduce road
traffic congestion in both the port and CBD. Work has been
done at the port to open an additional road exit, but the
long-term solution is establishing this dry port, which would
be situated on the outskirts of the metro and is adjacent to
the N3 and Cato Ridge shunting yards for trans-shipment.
There is also the plan for the new Durban dug-out port on
the old airport site and a planned freight hub at Harrismith.
The port is also investing in additional container handling
equipment to improve the efficiency of the container ter-
minal and is converting old bulk berths that are no longer
efficiently utilised to handle additional container traffic. This
follows in the wake of the harbour having been widened so
larger vessels can dock with ease.
Sigonyela states: “There are a number of levers that we
have. Firstly, infrastructure development will create addition-
al capacity, which will reduce congestion and thus improve
reliability. Secondly, we are devel-
oping performance metrics for
the corridor, which will tell us how
the corridor is performing over-
all. Thirdly, we are building struc-
tures and forums for the various
infrastructure providers, regulatory
agencies and policy departments,
and other sector stakeholders to
collaborate and ensure an inte-
grated approach to developments
on the corridor.”
André Pottas, corporate finance
advisory leader at Deloitte in
Durban, says: “It is no surprise
that the government is starting to
place an emphasis on the revitali-
sation of this transport corridor. It
is long overdue and it is a long-
term project that is going to take
years to complete. The timing is
crucial especially if you look at the
potential threat or competition that
Durban and Gauteng
REGIONAL FOCUS CORRIDOR
“It is no surprise that the government is starting to place emphasis on the revitalisation of this transport corridor” André Pottas, corporate fi nance advisory leader,
Deloitte, Durban,
33TWA | Jan/Feb 2013
34 TWA | Jan/Feb 2013
Africa’s premier logistics platform,
given that the Port of Durban pro-
vides connectivity to 53 interna-
tional destinations and access to
local distribution networks.
This project is intended to con-
nect the major economic centres of Gauteng and Durban/
Pinetown and, at the same time, connect these centres with
improved export capacity through our sea ports.”
Harrismith hubAccording to the Free State MEC for Economic Development,
Tourism and Environmental Affairs, Mamiki Qabathe, the
province is ready to use its strategic position to boost its
profile in the logistics sector.
The Free State government is investing in the concept of
corridor development and believes the Durban-Free State-
Gauteng Corridor is intended to promote not only better
transport of goods between the end points, but will also
boost economic development in the towns and rural areas
along the way.
Harrismith, situated at
the intersection of the N3
and N5 highways is ide-
ally positioned to be turned
into a logistical hub. This
is especially pertinent con-
sidering the road between
Johannesburg and Durban
is the busiest long-haul
freight transport corri-
dor in the country and
the Harrismith Highway
Junction is the Southern
Hemisphere’s biggest
truck stop.
It is intended to create an
inland port at Harrismith
that can handle cargo
containers and, at the same time,
be able to shift cargo from road
to rail. It is envisaged this will both
reduce road congestion and costs.
It is also estimated that the vol-
ume of cargo passing through
Harrismith will increase by 25%
per annum over the next seven
years and, ultimately, the pro-
vincial government would like to
see the Harrismith Logistical Hub comprising multimodal
capabilities: air, road and rail.
Freight handling Dr Jan Havenga, director: Centre for Supply Chain
Management, Department of Logistics at Stellenbosch
University, says: “If you look at the amount of freight moving
on road and rail on the Durban-Gauteng Corridor annually
it equates to approximately 56 million tonnes of freight, of
which 85% is moved on road. About 45% of all tonnes on
this corridor is for imports and exports, and is therefore an
important corridor for international trade by sea.
“We estimate that more than five million tonnes of freight
can be easily targeted for modal shift to rail, saving the
country approximately R350 million on the freight bill and
reducing the amount of trucks on this route by 400. The
target can be increased in the medium term by a further 18
million tonnes, which would save another R1.2 billion and
take a further 1 400 trucks off this route.”
He adds that the greatest impediment to modal shift,
historically, is a lack of investment in rail and the drag
REGIONAL FOCUS CORRIDOR
More than fi ve million tonnes of freight can be easily targeted for modal shift to rail
on rail costs caused by the maintenance of
low-density lines.
“These issues are receiving attention and a turna-
round in rail performance is already noticeable.
Transnet has embarked on a progressive investment
programme and investment in new rolling stock,
motive power and line upgrades is showing results. Rail’s
short-term plans are, however, to concentrate on bulk min-
ing products and fixing the coal supply chain. Many suc-
cesses in this regard have been noticed. The next phase
should see the development of intermodal solutions for
palletised cargo, which should see significant inroads on
the Natal and Cape corridors alleviating congestion mark-
edly and decreasing the investment pressure on roads.
The intermodal solution will require logistics hubs close
to Durban and Gauteng, and the formation of these hubs
around railheads will be an important feature over the next
two decades.”
The Durban Chamber of Commerce and Industry CEO,
Andrew Layman, states: “One has to see this as a long-
term project built up with many phases. It will include more
efficiency and a great deal more capacity in terms of rail
freight. In essence, the N3 is under undue pressure, largely
because it has to accommodate cars and trucks. The ulti-
mate vision would be for a dedicated truck road route from
the port to Gauteng via the Free State.
Sigonyela says: “We have a two-pronged
approach: first we aim to reduce road congestion
by moving a lot more cargo into and out of the
port by rail; and second, we will improve the road
network to enable more efficient and predictable
road operations.
“This is an ongoing programme and not a
once-off initiative. Traffic volumes are forecast to
grow and logistics operations models continue
to evolve, which means that
the infrastructure and nature
of services provided must
similarly evolve. Hence, a
key focus is to create struc-
tures for collaboration and
integrated planning on an
ongoing basis.
“Increasing rail market share is a key component of the
programme. Rail has been growing market share on this
corridor and our objective is to accelerate this trend.”
REGIONAL FOCUS CORRIDOR
“One has to see this as a long-term project built up with many phases” Andrew Layman, CEO, Durban Chamber of
Commerce and Industry
35TWA | Jan/Feb 2013
36 TWA | Jan/Feb 2013
Cross-border general freight rail traffi c in the Southern African region has declined signifi cantly in the past 20 years. At the same time, long-haul road haulage has increased dramatically, in spite of border post congestion and road infrastructure deterioration.
WHY HAS THIS come about and can
the trend be reversed? The rail net-
work in Southern Africa has a com-
mon gauge and general standards,
which should allow seamless operations. But what is
hindering this ideal?
The rail network is an important element in the trans-
port infrastructure of the region and the contribution
it can make will be of vital importance to the people
of Africa.
Railway infrastructure and traffic The arterial 1 065 mm gauge rail network in Southern
Africa consists of over 33 600 route kilometres of
interconnected lines. The longest two are between
Cape Town and Dar
es Salaam, a distance
of 5 200 km, running
through four countries.
Cape Town to Lobito is
about 5 800 km, run-
ning through six coun-
tries. Taken in total, some
80 000 km of railways
operate in 30 African
countries and about half
have international connections. Of the total, nine states in the
south, occupying just 37% of the African land space, have
some 60% of total route km of track.
Rail – the downsideUnfortunately, there are still serious gaps in the rail network that
urgently need to be completed to more effectively deal with road
competition and African development requirements. Lack of
effective tracking systems and inadequate customer commu-
nications, arising from poorly coordinated cross-border mat-
ters, often relegates rail services to second place when com-
pared to road. There are too many empty rail wagon workings
(no return-leg backhaul), which increase operating costs while
road transport brokers strive successfully to obtain return-
loads – essential for economic operations and setting of
competitive rates.
In terms of infrastructure, rail operators, whether govern-
ment or private, must maintain and renew their track and this
makes them less competitive when compared to road, since
operators only pay a fraction of the cost of infrastructure pro-
vision, in spite of current charges for road use by kilometre
driven in some countries.
Road competition realityOne-stop-shop border crossing facilities speed road trans-
port operations while local agents deal with documentation
THE ROLE OF RAIL
In intra-Africa trade
“Lack of effective tracking systems and inadequate customer communications, arising from poorly coordinated cross-border matters, often relegates rail services to second place when compared to road”
TRANSPORTATION MODES
By Allen Jorgenson, media and research offi cer for the RailRoad Association of South Africa
37TWA | Jan/Feb 2013 373737373737373737373377737373737337373TWATWATWATTWATWTTWATWATWATWATWTWATTWATWTWAWTWATWATWATWAWAWATWATTWATWTWATWTWWATWATWWAWAWTWAWTWWTWWWAWATWAWWATWATWTWWT AAA |||||||||||||||||||||| JJanJanJJJJanJJJJanJJaJanJJJanJJanJanJJanJaaJJ nJ n/Fe/Fe/Fe/Fe/Fe/FeFeFeFeFe/FeFeeFe/F/FFeFFFebbbbbbbbbbb 2020202020202002020000000131313131313333313333333
to a reduction in highway infra-
structure damage and accidents,
often resulting in loss of life.
The way forwardThe use of intermodal systems and in
particular containerised traffic will lead to
greater cargo security and reduced costs.
The establishment of ‘hub’ distribution
centres will lead to many economies. The
inland container terminals established in
Botswana, Malawi and Zimbabwe have
already proven their benefits and more
such facilities should be opened. Private
sector input can lead to greater benefits
of efficiency and spread the investment
load, which will make it possible for govern-
ment to concentrate on social development matters.
Sophisticated IT-based cargo tracking systems such as
ACIS and RSIS provide valuable data for operators and
customers. Their further development and use should be
promoted across borders.
Rail development alternatives The World Bank and other international organisations pro-
posed that privatisation could be a solution. Unfortunately,
various governments set unrealistic financial targets and
performance goals, expecting the private sector to redress
the under-investment of the past.
It is thought that rail infrastructure ownership should be
retained by the state, but that operations should be freed of
government domination or interference, as is the case with
road transport.
SADC and COMESA must work closely with the private
sector to promote the interests of regional growth and devel-
opment, which will be underpinned by reducing the cost of
transport and logistics.
African countries should support the activities of the
South African Rail Association (SARA) and the RailRoad
Association of South Africa, because these associations can
provide specialised services in the interests of transport and
regional development.
matters in conjunction with transport companies and custom-
ers. Smaller truck loads (averaging 32 t) can be conveniently
redirected when required and on short notice, compared to
individual rail consignments such as containers riding on
block trains.
Rail traffic is generally cleared pre-customs so there should
be no delay in crossing borders. However, making full train
loads can delay dispatch of traffic from point of origin, while
road operations can begin before customs clearance has
been obtained and this can be completed while the goods
are in transit. Nevertheless, road loads are often delayed at
borders since the required documentation would not have
been received.
Road transport has become so much the norm for inter-
national traffic that many companies are convinced that this
is the transport mode of the future, while rail has become
outdated. With road, communication between customer and
transporter is usually carried out on a more personal basis,
whereas with rail a high turnover of marketing staff makes it
difficult to build relationships. Road transport is highly visible
while most rail operations take place out of the public view.
This creates the impression that rail is of little consequence.
The high number of road accidents and health consid-
erations regarding Aids is, however, casting a negative
perception on road transport. Road degradation and high-
way congestion – particularly at border crossing points is
prompting governments to upgrade these facilities but at
public expense.
Where to now? Both road and rail transport technology have made sig-
nificant advances in recent years. This includes operating
equipment efficiency and reliability.
Rail has an inherent advantage over road since it can
move more traffic, while consuming less fuel per tonne per
kilometre than road. In terms of the environment, rail has
many advantages, particularly when the source of energy
is electricity. Considering transport cost externalities rail has
great advantages.
Unfortunately, this advantage can be reduced when rail
distances are appreciably greater than road. For example,
for traffic between the Zambian copperbelt and Durban
the rail and road distances are similar, but for traffic from
Johannesburg to Windhoek, the rail distance is 50% greater
that road by the Trans-Kalahari Highway.
Road is considered to be more time effective than rail but
again, this depends on specific routes. For traffic between
Cape Town and Johannesburg, rail can achieve point-to-
point timings of 14 hours, while road requires at least 28
hours, even with double-manning of heavy vehicles. Road
can provide door-to-door services for general traffic but rail
requires double-handling with road pick-up and delivery in
most cases but over short distances. Greater use of underu-
tilised private sidings should be considered. Combined road
and rail transport systems for long-haul traffic will contribute
TRANSPORTATION MODES
“Rail has aninherent advantage over road since it can move more traffi c, while consuming less fuel per tonne per kilometre than road”
37TWA | Jan/Feb 2013
38 TWA | Jan/Feb 2013
The reopening of the Orkney-Vierfontein branch line cluster by Transnet Freight Rail will improve access to markets as well as increase overall freight volumes.
SERVING THE AGRICULTURE industry and
general freight, it will reduce the distance
between Klerksdorp and East London by 16%,
between Durban and Klerksdorp by 20%, and
between Bothaville and Randfontein by 56%.
The Vierfontein-Orkney portion of the branch line clusters
was identified as a key intervention and response to strate-
gic national, regional, provincial and Transnet’s customers’
objectives. The reopening of this line is one of a number of
branch line projects being undertaken to provide ‘respon-
sive infrastructure’ as part of the National Growth Path.
Construction on this particular 15.3 km line began in
April 2012, opening in December and was undertaken by
Transnet Freight Rail (TRF) network.
In alignment with Transnet’s Market Demand Strategy
(MDS), the revitalisation of this line will stimulate economic
activity in the region through the creation of this ‘bridge’
linking the North West and Free State to the Eastern Cape,
Gauteng and KwaZulu-Natal.
From road to railEncouraging rail friendly cargo to move from road to rail,
TFR is striving to increase existing volumes and reclaim
additional volumes across most of its business units in and
out of these regions.
TFR CEO, Siyabonga Gama, says: “We are very excited
about this achievement of constructing the line with our own
resources, within budget and on time.
“This line will contribute to increasing traffic on the routes
taking maize from North West to mills in KwaZulu-Natal and
the ports of Durban and East London, as well as maize
from the western Free State to mills in
Randfontein. At the same time, fuel will
also again be able to be distributed by
rail. The line will also create an alterna-
tive access to Durban when the line
between Klerksdorp and Vereeniging
becomes unavailable, supporting
the manganese flow and iron ore to
Newcastle and Durban.”
TFR’s branch line department is
tasked with the revitalisation of branch
lines as these play a critical role in the
movement of freight as primary feed-
ers to the broader and core network.
During 2012, TFR moved 70 000 t
of maize out of the Klerksdorp and
Coligny area to Durban for the export
market. It is envisaged that with the
opening of this line the tonnage trans-
ported could be as high as 150 000 t
per annum.
TRANSNET BRANCH LINES
Critical in stimulating economy and moving freight
TRANSPORTATION MODES
35th Annual Conference & Exhibition
design for change
The Leading Event in Africa for Supply Chain Professionals
The economy is becoming increasingly globalised and, as a result, innovative supply chain management is central to commercial survival. Change in the way supply chains are managed, is both necessary and inevitable. Delegates at the 35th Annual SAPICS conference will be offered solutions to manage their supply chains more effectively. The Annual SAPICS Conference is designed to offer practical and relevant information by providing delegates with outstanding world-class educational presentations, the highly collaborative Africa Café, select meet the speaker sessions, real world case studies and interactive workshops.
Supply Chain Solutions for a Dynamic World
Partner Associations:
T: +27 (0)11 023 6701 | email: [email protected] | www.sapics.org.za
40 TWA | Jan/Feb 2013
TRANSPORTATION MODES
Branch lines known as secondary networks are lines that
connect two or more points of economic activity to either a
primary rail or secondary rail network. There are 33 branch
lines across South Africa, some active and some closed.
Significance of railTransnet group chief executive, Brian Molefe, says: “The
significance of rail and its
rich history in South Africa
cannot be underestimated.
Even today, rail is still prac-
tical, efficient and, in most
cases, still the most eco-
nomical way to transport
bulk loads.
He adds that with
the opening of Orkney-
V i e r f o n t e i n
branch line
TFR is ensur-
ing it is a
critical cog
within the
country’s eco-
nomic reac-
tivation and
rejuvenation.
“With the
success of this
project there
should be no
doubt about
TFR’s commit-
ment to lay a
strong founda-
tion in ensuring
that state assets are used
to the benefit of all South
Africans.
“As rail regains the promi-
nence it deserves, we will
see a reduction in air pol-
lution especially carbon
dioxide emissions – paying
handsome environmental
dividends.
TFR operates along
approximately 20 953 km of rail network of which 1 500 km
comprises heavy haul lines for export coal and export iron
ore. Included in the network is 3 928 km of branch lines.
South Africa’s rail service is connected with the railways
of the Southern African Development Community (SADC),
enabling trade with the rest of Africa. Rail’s strategic
advantage lies in the movement of heavy haul, bulk com-
modities over long distances where flow densities provide
economies of scale and thereby lower unit cost. Agricultural
products such as grain and timber are conveyed mostly
on the branch lines. Freight Rail will continue to implement
plans for growth of commodities on these lines.
Market demand strategyTransnet is implementing its MDS, which is its response to
providing infrastructure ahead of demand, to reduce the
cost of doing business in South Africa and contributing to
the objectives of the country’s developmental and transfor-
mation agenda. It is envisaged the MDS will stimulate major
activities in the country’s economy by significantly increas-
ing freight volumes
and driving a consider-
able modal shift from
road-to-rail.
The importance of
the Transnet role is evi-
dent in the Presidential
I n f r a s t r u c t u r e
C o o r d i n a t i n g
Committee and the
focused roll-out among
the state-owned com-
panies in the strategic
infrastructure pro-
jects (SIPS). Although
the MDS drives a
number of key pro-
jects, it is assigned
to drive and deliver
on the SIP known
as the Gauteng Free
State-KwaZulu-Natal
corridor development.
The branch line revi-
talisation is impor-
tant for Transnet, and
branch line teams are
engaging stakehold-
ers to develop addi-
tional business and
economic activity that
is sustainable over the
long term.
The deputy minister
for Public Enterprises,
Bulelani Gratitude
Magwanishe, says the
opening of the Orkney-
Vierfontein branch
line is important for
South Africa and the New Growth Path directs that SOCs
should play a catalytic role in reviving the growth of
the economy.
“In supporting the objectives of the developmental state,
the MDS is Transnet’s response to providing infrastructure
ahead of demand to reduce the cost of doing business and
will significantly increase freight volumes. The revitalisation
of branch lines is seen as an intention to unlock economic
potential on both a regional and national level.”
“It is important that we consider the situation of the cur-
rently closed lines and Transnet has the responsibility to
both develop and protect these lines.”
The MDS is responsible for a number of key projects, and is assigned to drive and deliver on the SIP known as the Gauteng-Free State-KwaZulu-Natal corridor development
Ctrack Long Haul offers a wealth of tools including amongst others:
applications like Ctrack Mobi, Online and MaXx for real-time visibility of vehicles;
Route Monitoring, Navigation and Area Management features for enhanced
driver and vehicle safety; Fuel Consumption Monitoring and CO2 Reporting for
better operational control as well as Driver I.D. and Speed and RPM Monitoring to
assist with driver behaviour management. In summary, one complete solution that
keeps your long haul operations always visible and as productive as possible.
012 450 2222 [email protected] www.ctrack.com
Intelligent Solutions