Freight & Trading Weekly

APRIL 2009 FREIGHT & TRADING WEEKLY

SPECIAL feature

Road & Rail Transport Driving for greater efficiency through partnership

GATEWAY INTO AND OUT OF AFRICA Shipping Services

Ndola Kapiri Mposhi

Clearing and Forwarding

Lilongwe

Dedza border post

Lusaka

Blantyre

Warehousing

Tete

Harare

Beira

Logistics

Durban + 27 31 460 0700

Procurement Johannesburg

Durban

Johannesburg + 27 11 625 3000

www.bridgeshipping.co.za Cape Town

FTW4140

Intermodal specialists

in Southern Africa Local and long distance rail and road transport Handling and storage of full and empty containers Customs-licensed depot

Johannesburg

Durban (Head office)

Cape Town

Tel: 011 330 6270 Fax: 011 330 6273

Tel: 031 335 4960 Fax: 031 337 3160

Tel: 021 511 6594 Fax: 086 632 8417

email: kerwin@cmkcd.co.za

Mobile: 073 495 8266

FTW4287

APRIL 2009 | 1

Road and rail are not competitors but rather complementary partners whose objective must be to lower South Africa’s excessive logistics costs.

Rail and road experts offer their perspectives.

Editor Joy Orlek Consulting Editor Alan Peat Contributors Liesl Venter Advertising Carmel Levinrad (Manager) Yolande Langenhoven Claire Storey Jodi Haigh Managing Editor David Marsh

Correspondents

Durban Terry Hutson Tel: (031) 466 1683 Cape Town Ray Smuts Tel: (021) 434 1636 Port Elizabeth Ed Richardson Tel: (041) 582 3750 Swaziland James Hall jhall@realnet.co.sz

Advertising

Co-ordinators Layout & design Circulation Printed by

Tracie Barnett, Paula Snell Dirk Voorneveld subs@nowmedia.co.za JUKA Printing (Pty) Ltd

Rail Page 2 Gama pushes transhipment hub concept Page 3 Rail must deliver on promises Page 23 TFR stepping up communication Abnormal loads Page 6 Permit issue remains biggest challenge

Annual subscriptions

RSA – R425.00 (full price) R340.00 (annual debit order) Foreign on application.

Cross-border Page 16 Speed of air at roadfreight rates Page 17 Companies increasingly call for up-front payments

Publisher: NOW MEDIA

Phone + 27 11 327 4062 Fax + 27 11 327 4094 E-mail carmell@nowmedia.co.za Web www.cargoinfo.co.za Now Media Centre 32 Fricker Road, Illovo Boulevard, Illovo, Johannesburg.

PO Box 55251, Northlands, 2116, South Africa.

Skills shortage Page 14 Driving academies a key focus

Page 22 Own offices add muscle to overborder service offering

Page 5 Administrative nightmares plague operators Software solutions Page 4 Updating customers on manifest status Page 7 Facilitating crossborder shipments

Cover concept: Dirk Voorneveld

FTW1639SD

Page 10 Offering specialised roadfreight functionality

Infrastructure Page 18 Case study raises alarm bells for crumbling network

2 | APRIL 2009

Gama pushes transhipment hub concept ‘Corridor approach makes a difference’

By Joy Orlek

G

aining a bigger share of container traffic is a key theme of Transnet Freight Rail’s five year capital plan and involves imports, exports and transhipment containers.

“Our projects cut across rail and ports and focus on Ngqura and Cape Town – and while the timing of the capital spend will be impacted by the global economic crisis, the amount of capital is significant by any measure,” TFR CEO Siyabonga Gama told FTW. Over the past five years the container market in South Africa has grown at around 10% per annum, twice the rate of GDP. “And it will continue to grow with a global recovery,” says Gama, who sees further opportunity for growth through the creation of a transhipment hub to create exposure to African and global container flows.

“TFR has a very low share of the longhaul container market in South Africa,” Gama said. “We estimate this is between 20-25% of the longhaul container market beyond a 300km radius from the main ports.

“Typically this is a market that is railfriendly and given our low share, this is a growth opportunity for us even if there is

limited overall market growth.”

Recognising the significant impact of improved logistics flows on GDP growth, Gama points to a recent study undertaken in Malaysia.

The study estimates that a 15%-20% reduction in logistics costs (direct and indirect) will increase GDP by 1.5-2%.

And there are two levers to drive any improvement in logistics – building critical infrastructure and improving the flow of goods through existing infrastructure.

While TFR’s capital expenditure programme has been well documented, when it comes to improving the flow of goods through existing infrastructure, Gama believes its corridor approach is making a difference.

“We are essentially taking an end to end view of the container supply chain and have created forums for our operating divisions to work together to provide seamless solutions for our customers.

“This extends not only to the commercial front but also operations that are necessary to underpin our customer offerings. This approach enabled us to run 375 trains per month towards the end of 2008, a 25% increase compared to April 2008.

“It’s the basis for our partnership with

windows

IMPORTS & EXPORTS Customs Clearing Software Customs EDI compliant Complete Tariff book with easy to use search system Integrated invoicing system

Siyabonga Gama ... ‘Taking an end to end view of the container supply chain.’

Maersk, which admittedly has had normal teething problems, but on the whole has worked well and is a model we are looking to expand.”

Building on the insights of the Malaysia survey, TFR set out to understand what share of rail versus road would minimise the total supply chain costs for container customers. And this includes the direct logistics costs like rail tariffs, and indirect

costs like inventory and lost sales, which tend to be at least as large as direct costs.

“The answer is around 60% share of the important Durban-Gauteng route and 75%+ of the Cape Town-Gauteng route,” said Gama. “Our market share is nowhere near these numbers and we are determined to capture this opportunity to create a win-win for our customers, ourselves and South Africa,” he said.

Your speedy road connection between Johannesburg & Maputo 3 times a week Overnight service Door to door Johannesburg: Tel: +27 11 618 8815 Fax: +27 11 618 8814

Maputo: Tel: +258 21 302 083 Fax +258 21 302 083

E-mail: info@pantheraexpress.com

www.pantheraexpress.com

FTW4332

Celebrating 21 years of service to the industry

Documents can be saved and emailed in any format required

For all your logistics needs Walvis Bay

Air & Road

Overnight Express

Breakbulk

Rosh Pinah Lüderitz Bay

Oranjemund Tel: +264 (0) 61 239 373 Fax: +264 (0) 61 232 461 Johannesburg Cell: 081 124 7011 Pretoria Email: sean.fallis@desertlogistics.com www.desertlogistics.com Cape Town

T +27 11 975 5519 F +27 11 975 2367 E chrissie@shipshape.co.za

www.shipshape.co.za FTW4205

Windhoek

Agents for

Durban

If you want service - use your logic FTW4015

APRIL 2009 | 3

‘Rail must deliver on promises’ It’s a crucial element of lowering transport costs

By Liesl Venter

T

he cost of moving goods around South Africa is far too high.

In 2007 more than 650 million tonnes were moved on land, with the average transport cost factored into the price of an article anything between 14% and 40%. The world average is only 7%.

“We cannot keep on doing business this way,” says Gavin Kelly, technical and operations manager of the Road Freight Association. “Already countries that move freight through South Africa are investigating ways of bypassing us to bring costs down.”

There is no doubt, say the experts, that South Africa needs to address its rail infrastructure and move beyond the road versus rail debate.

Kelly says there is no battle between road and rail in the country.

“There are certain commodities that are suited for rail and should be on rail such as bulk goods on a long destination one-way service as the overall cost to the company would be better. Then there are many freight categories suited to road transport that can be moved at a far lower rate than rail. We can’t continue to

move everything on road – that is the reality.”

But several challenges face the country’s rail network despite much work from parastatal Transnet. “They are just not getting their act together,” says Kelly. “Rail cannot deliver door to door, it cannot guarantee loading, off-loading and delivery times or the safety of goods. At present it is just not an efficient, frequent and reliable service, no matter how much we need it to be.”

This is agreed by several transporters who maintain that using rail is not an option as it is not reliable enough.

Says Hazel Briggs of HB Services: “I would need to be assured about the cargo’s safety at all times, even if Transnet improves its service.”

This is the general industry sentiment, with many transporters having no faith in the capability of rail.

Transnet, however, remains committed to improving the service and addressing the needs of the industry. Purchasing the first diesel locomotives in 20 years, Transnet Rail Engineering (TRE) in conjunction with Electro-Motive Diesel (EMD)

Gavin Kelly ... ‘SA needs to move beyond the road versus rail debate.’ will see 50 As New – GT26CU-3/ Class 39-200 locomotives being manufactured in South Africa. The 50 units are scheduled for delivery by the end of the third quarter of 2009.

According to Richard Vallihu,

Transnet Rail Engineering CE, the entire concept, design, prototype and setting up of the production line was concluded in three months and shows Transnet’s commitment to upgrading its infrastructure.

We deliver on schedule,

every time

• Neutral consolidators for airfreight courier industry • Now offering roadfreight express option with airfreight schedule integrity

• Daily from Johannesburg to Durban, East London & Port Elizabeth

• Cape Town four days a week Tel: Fax: Cell: e-mail:

+27 11 390 2433 +27 11 86 621 2710 +27 83 656 1130

bruce@interloc.co.za

inter loc

F R E I G H T FTW4324

S E R V I C E S

4 | APRIL 2009

Roadfreight system

updates customers on manifest status

UK potholes cost users R1.5m per day

Customers informed of delays before they have to find out for themselves

By Ed Richardson

BY Joy Orlek

M

ore than ten years since the launch of its software solution for the courier industry, Parcel Perfect has added several modules to cater for the needs of the roadfreight market.

The programme has developed from a core system providing a generic nucleus around which industry-specific modules have been built. These include collection, manifesting, tracking, imaging and billing modules.

Of particular importance to the roadfreight operator is the manifest consolidation system, which provides vital and easy-to-access information as well as the ability to update affected customers on manifest status.

“If, for example, a vehicle breaks down on the highway, all customers will be notified by email or SMS that there will be a delay. They are informed before they have to find out for themselves.”

As system developer John

Henderson points out, it’s not the 100 deliveries that work that customers of transporters are concerned about, it’s the one that fails.

“The margin for error in terms of operational processes is very small,” says Henderson.

“The accuracy and proactivity with which manifests are done and the error checking is what makes the difference.”

The system also has a strong parcel tracking component built into the manifesting. “If you have 20 different manifests you can, from your control centre, see which ones are being offloaded, which have been completely offloaded and which have been offloaded with missing parcels.

And all are colour coded for easy reference.”

Parcel Perfect developers are all too aware that margins in the roadfreight industry are so thin that you can’t lose a single piece. “If your software allows you to lose a piece it’s a very expensive piece of software.”

And when it comes to costs, Parcel

John Henderson ... strong parcel tracking component.

Perfect has truly put its money where its mouth is.

So sure is the company of the effectiveness of the system that installation comes with no contractual obligation.

“This makes our credibility very vulnerable,” says Henderson. “If we don’t deliver what we promise our customers can stop using us at zero cost – but that has never happened.”

British road users are paying an estimated £1 million (R1.5-million) a day in repairs after hitting potholes, with the problem worsening the further north you go, according to data published by campaign website, Potholes.co.uk.

Analysing data from consumer warranty provider Warranty Direct’s insurance policies over an eightyear period, it was found that 6% of cars each year suffer from axle and suspension damage that can be traced back to poor road quality.

Ayrshire in Scotland has the highest rate in Britain, where14% of cars each year require repairs relating to poor road quality.

Warranty Direct launched Potholes. co.uk in 2007 to give motorists a chance to do something about potholes. Anyone who spots a pothole can report it to a local council through the site, as well as warning other motorists about it. And if their car has suffered damage because of a pothole, the site gives details of how to make a claim against a local council.

Your First Choice for Cross-Border Transport Project Cargo/Breakbulk to all SADEC countries

● Specialising in cross border freight to Zambia/ Zimbabwe/Mozambique/Botswana/DRC ● Own fleet – Super links ● Hazchem certified

Contact Friedel Kirstein Cell: 082 465 8193 Tel: +27 11 482 1353 Fax: +27 11 482 1359 friedel@moe.co.za

Speak to Paul or Allan Tel: +27 11 609 2612 Fax: +27 11 609 2580 E-mail: info@grovelogistics.co.za FTW4306

FTW4339

IN FREIGHT LOGISTICS INTO AFRICA HAS EMERGED

A

NEW FTW3875

WWW.GO4DYNAMIX.CO.ZA Now offering a regular DRC Service. Contact us for competitive rates.

Tel: 011 948 7932

Fax: 088 011 943 1538

APRIL 2009 | 5

Administrative nightmares plague abnormal load operators

BY Liesl Venter

T

he issues around abnormal loads are more administrative that anything else, says Gavin Kelly, technical and operations manager of the Road Freight Association.

Permits, fees as well as finding ways to deal with the constraints on the movement of these loads all add to administrative nightmares for operators, while currently abnormal loads are moved with little negative impact on standard traffic flows.

“The reality is that only certain roads are capable of carrying the weight or width of the loads and these have to be used. There have been very few incidents where road users are unhappy with heavy load operators,” says Kelly. “Obviously moving one of these through peak hour traffic would not be a wise choice.”

But, says Kelly, legislation continues to make it very difficult to move abnormal loads quickly. “The regulations around the movement of abnormal loads remain a huge issue in terms of the amount of work that is to be done and the amount of time open to operators to move goods from manufacturers and ports to the customers.”

As the speed issue is obviously linked to the size of the load and its related

FTW1647SD

‘Legislation continues to make it very difficult to move abnormal loads quickly.’ Photo courtesy TCS. safety requirements with regard to stability, as well as the amount of traffic on any particular route, it can be accepted that abnormal loads cause some slowdown in traffic – often from a curiosity viewpoint as well.

“There are many dead times when traffic flows are down to a minimum but traffic escorts are not available. In other cases abnormal loads are not moved

because it’s dark, where proper lighting would sort it out,” says Kelly.

He says the issuing of permits for moving loads remains an extremely contentious topic. “Also, the fees attached to these and the unrealistic contention that only original permits will be accepted and must always be carried on the vehicle lead to administrative nightmares. Another issue is what we believe is the unfair

prosecution of loads.”

But, say authorities, legislation is here to stay. While there has been some discussion with the Department of Transport, no immediate changes are expected.

“Government needs to accept the role that private industries play in the movement of loads and not operate unilaterally,” says Kelly.

6 | APRIL 2009

‘Permit issue remains the biggest challenge’

BY Liesl Venter

T

ruck permits remain a bone of contention for many transport companies – especially those specialising in abnormal loads.

Says Frits Kroon, director of Frits Kroon Transport: “Quicker permit release would be very helpful because getting our permits on time remains a challenge. Our trucks do not always return to the yard after a load, making it near impossible to get original permits to a truck.”

Kroon says getting the permits remains one of the biggest issues. “We apply for permits but to get them on time remains a major challenge.”

And with travelling time only allowed in daytime outside peak hours, on-time delivery becomes dependent on efficiency.

“Using road means abnormal loads can be loaded and off loaded at precise destinations as infrastructure in most cases is sufficient. Offering an efficient and secure service is of utmost importance in the competitive era in which we are working.

Rail, on the other hand, does not provide flexibility when transporting abnormal loads. And also once the load has reached

The 70 ton Mobile Crane that Frits Kroon Transport recently moved from Durban to Moatize in Mozambique. the closest station it must still be transported from the station to the yard,” says Kroon.

Based in Pretoria, the company specialises in abnormal loads using lowbed trucks. “We apply and arrange for permits on behalf of clients as well as help with cross-border documentation. There is no denying that quicker permit release would help our business to achieve greater efficiency.”

According to Kroon another important factor when moving heavy and abnormal loads by road is to ensure conditions are always optimal. “We are constantly undertaking road surveys on the routes that we travel. It is imperative that we know what to expect before sending out a truck.

Also we try to keep our trucks in the best condition possible while our drivers are trained continuously to handle any

situation or condition.”

Kroon, who does much work in Africa, believes business may be negatively impacted in coming months by the economic crisis, but says much opportunity still exists. “Every time so far when we think, okay, business is slowing down, something happens and it picks up again. We do expect the next few months to be tough.”

Whether Road or Rail We deliver to your customers!

●

FTW1656SD

Road Transport ● Rail Transport ● Tracking ● Documentation ● Shipping

Johannesburg: 011 613 2430 ● Warehouse: 011 622 8511 Durban: 031 205 9841 ● Cape Town: 021 421 7250 Pretoria: 012 335 1281

dorothy@cypresstransport.co.za www.cypresstransport.co.za

FTW3996

APRIL 2009 | 7

Compu-Clearing system facilitates cross-border shipments Unlike the old days, when shippers and transporters were besieged with f you are involved in shipping all sorts of manual documents, and consignments over-border between information had to be tediously SA and the BLNS (Botswanarecorded on both sides of the border, Lesotho-Namibia-Swaziland) the Compu-Clearing system allows all countries, Compu-Clearing will solve the data to be moved around the cybera number of problems for you, network, and to be instantly available to according to technical director, all the parties along the logistics chain.

Mario Acosta-Alarcon.

“This is designed to make a One is the need for all the road transporter’s life easier, and allows shipments crossing into the BLNS all the necessary documentation – states to have an individual single including the vital SAD – to be administrative document (SAD) posted and transferred to customs on declaration sent via electronic data both sides of the border,” said interchange (EDI) to the SA Revenue Acosta-Alarcon.

Service (Sars).

The system is also linguistically “We have a system ready for that,” adept, able to talk to the Asycuda said Acosta-Alarcon. “It has first and system that is relatively common in foremost been designed with all the other African states, and extensively Sars requirements built into used in Namibia and Botswana, the programme. for example.

“As another bonus, it offers all “This,” said Acosta-Alarcon, “is a the other statistics on the shipment system that was designed by the United you may require – and these can be Nations (UN) and distributed free to instantly selected, viewed and used for African countries – allowing the users whatever other task you have in mind.” to run all the customs and clearing It also has an eagle eye when it procedures that are required. comes to tracking your consignment, “But it effectively needs you to and the whole wealth of the system talk another tongue, and denies Wine Route Ad(140X260) 8/1/08 1 to Asycuda if you can’t talk is accessible to any station that is9:50 AM Page access connected to the internet. that language.”

By Alan Peat

I

FTW1482SD

Mario Acosta-Alarcon … ‘Now successfully integrated with the Asycuda system.’

But Compu-Clearing has overcome that problem, and is now successfully integrated with the Asycuda system.

“So our users, particularly sending goods to Botswana or Namibia, do not have to capture a declaration twice – once on both sides of the border,” said Acosta-Alarcon.

“We will directly transfer the data from one computer system to M Y CM MY CY CMY K the Cother.”

Pushing the green initiative Silic Logistics has invested heavily in its go-green initiative, believing that it is their responsibility – as one of the new breed of logistics companies – to push the balance of cost-effectiveness and carbon savings closer.

“Average, conservative estimates,” says marketing director Angus Dustan, “represent figures of 125-grams of carbon emissions per kilometre on road.

“If one just multiplies this figure over the distance between Cato Ridge and Durban and back (126-kms) by the number of TEUs travelling on the N3 Corridor, one sees figures of around 31-tons of noxious and harmful gases being emitted on a daily basis.”

Silic’s target is to minimise its relative proportion of this figure by up to 75% by following its intermodal logistics model.

“This excludes traffic on the N3 and input roads to DCT,” said Dustan, “because using them simply increases accidents on the roads, infrastructural costs and more.

“It’s a no-brainer for us, and we’re proud of our balance.”

8 | APRIL 2009

Deadline looms for freeway tolls Sanral to invest R25bn over next two years

BY Liesl Venter

T

he South African National Roads Agency is putting its money where its mouth is and investing a whopping R25-billion in the country’s freeways in the next two years.

According to Sanral chief executive officer Nazir Alli, the organisation remains committed to upgrading and maintaining freeways.

Sanral, which is responsible for the design, funding, SAN maintenance, operations and rehabilitation of South Africa’s tolled and non-tolled national roads, will need to raise debt finance for the R 25-billion required to accomplish its ambitious plans.

“Economic conditions are certainly tougher than they were when we began issuing debt to finance the major projects now under way. However, indications are that investors will continue to be reassured by our good market ratings and track record of efficiently maintaining the network and settling debt,” said Alli.

Expecting solid participation from the capital markets in the company’s debt offerings, Alli said Sanral was on track

to raise the necessary funds needed to undertake its programme, which would see most of the civil works completed by October 2010.

Across Gauteng the efforts are already starting to take shape as the freeway project, which is expected to absorb at least R20-billion of the budget, is firmly under way.

According to Sanral, the Gauteng freeway upgrade was an imperative project for the commercial and industrial hub of the country. Construction, said Alli, has been proceeding on schedule despite inclement weather conditions during the past few months.

He said post October 2010 the freeways making up the GFIP would be operated on the “user-pays principle.”

An Open Road tolling system would be used, requiring each vehicle to carry an electronic tag that would automatically trigger the electronic tolling system housed in 38 overhead gantries set about 10km apart across the Gauteng freeway system.

Various options for billing the toll fees to motorists were still being appraised, Alli said, but could include linking tags to bank accounts, systems to recharge tags at retail

outlets or internet-based products.

Although the GFIP was Sanral’s main focus, the capital investment programme would see improvements being made to the N2 Tsitsikamma Toll Road, the N17 East Toll Road Extension, the N1 South and R30 Bloemfontein-Kroonstad road.

Other roads affected would include the N1 Polokwane Bypass, the Marianhill Extension near Durban and the Dube Trade

Port Interchange which would serve the new King Shaka International Airport on the KwaZulu Natal North Coast, he said.

Proposed new toll road concessions on the N1/N2 Winelands Toll Highway and the R300 Ring Road in the Western Cape and the N2 Wild Coast Toll Highway had been submitted for regulatory approval, Alli concluded.

7 Ì Ê V iVÌ Ûi Þ]Ê ÀiÊ Ì > Ê £ääÊ Þi>ÀÃÊ vÊ vÀi } ÌÊ iÝ«iÀ i ViÊ > }Ê ÕÀÊ ÃÌ>vv]Ê ÜiÊ V> Ê V wÊ`i Ì ÞÊ Ã>Þ\Êqʺ7iÊ>ÀiÊ9 ÕÀÊvÀi } ÌÊëiV > ÃÌû ❏ÊÊÊÊ ÕÃÌ ÃÊ i>À }ÊEÊ ÀÜ>À` } ❏ÊÊÊÊ-i>ÊEÊ ÀÊ Ài } ÌÊ ❏ Ê >À iÊ ÃÕÀ> Vi ❏ Ê- «ÃÊ }i ÌÃÊ ❏ÊÊÊÊ7>Ài Õà } ❏ Ê/À> ë ÀÌÊEÊ } ÃÌ VÃÊ ÃÕ Ì> ÌÃ

Your

Cargo

Gurus

Containerised ● Bulk ● Over Border ● Cabotage ● Track & Trace ● Rail & Road ● Warehousing ● Container Park ●

Ìi \ʳÓÇÊ­ä®Ó£Ê{Ó£ äÓÓÓÉÎÉ{ÉxÊÊÊv>Ý\ʳÓÇÊ­ä®Ó£Ê{Ó£ ä{ä{Éx i > \Êi µÕ À iÃJÀ LiÀÌà V«Ì°V °â> 6 à ÌÊÕÃÊJÊÜÜÜ°À LiÀÌà V«Ì°V °â> FTW1146SD

Trust is good, control is better

nomAD

FREIGHT

Anna Marie van der Laarse: Tel: +27 (0) 15 530 0081 Cell: +27 84 432 2423 FTW3913

Branches: Gauteng / Durban / Port Elizabeth / Cape Town Tel: 011 824 4144/5 Fax: 011 824 4148 Email: info@freightco.co.za FTW4225

," ,/-" Ê , /

musInA (

PTY) LTD

JHB: +27 (0) 11 461 1300 DBN: +27 (0) 31 301 0392 Maputo: +25 82 131 0561

E-mail: rord@nomadsa.co.za www.nomadsa.co.za FTW3751

APRIL 2009 | 9

Gautrain will alleviate congestion for freight traffic

BY Liesl Venter

A

t least 20% of the traffic currently moving on the TshwaneJohannesburg route is expected to move to rail with the launch of the Gautrain in 2011.

“Gautrain will definitely impact on the road volumes in and around Gauteng, but one must keep in mind that it will only be a passenger train and not carry freight,” says Dr Barbara Jensen, Gautrain communications and marketing director.

With an estimated 140 000 passengers using the train from the get go on a

Dr Barbara Jensen ... ‘It is about road and rail working together to provide the best possible transport system.’

daily basis, there is no denying that the multi-billion high speed rail system will alleviate some of the congestion currently being felt, especially on the N1 highway between Tshwane and Johannesburg. But other highways such as the N12 to the airport as well as the old Krugersdorp highway should also see a significant drop in their traffic volumes thanks to the train. Currently more than 300 000 vehicles use the highways in the province daily.

“We have always said it is not a question of road versus rail or that it should just be rail or just road. It definitely should be both. Transport in

Gauteng must be approached in a holistic manner.”

Dr Jensen said worldwide the trend was to return to rail and that it would definitely manifest in South Africa too.

“There is no doubt that we should be investing in the infrastructure and that projects such as Gautrain are necessary.”

But, said Dr Jensen, this project was just one part of upgrading the entire public transport system in the province along with the infrastructure investment of the freeway system.

“It is about road and rail working together to provide the best possible transport system.”

Retaining market share is key in trying times

BY James Hall All routes into Africa have been impacted by this year's business doldrums, but some transport firms are coping better than others because of long-term economic strategies and reputations for reliability.

Gordon Jay, the managing director of Transworld Cargo, offers one guideline. Transworld is known as a specialist in bonded air freight

FTW1646SD

FTW1650SD

and road transport into Namibia.

“Business is tight. I think all transport companies are in the same boat. Our strategy is to retain our market share, and this is helped because Transworld has a reputation as the Namibian transporter,” Jay said.

“We look around and a lot of guys are suffering because of debt situations. We operate on a positive cash flow. Our philosophy is that if we don't run on borrowed money

we are better off. Overdrafts are expensive,” he said.

The Gauteng operations are well situated for bonded airfreight, located in Spartan for quick access to OR Tambo International Airport.

For road transport from Gauteng and Cape Town into Namibia, Transworld maintains a fleet of nine 15.4m-long Ultra trucks.

Economically, Namibia is stable, Jay said. “It's directly linked to our Reserve Bank,” he noted.

The firm knows well the country it serves, which is of value to customers during good economic times and bad. “We do a lot of in-bond shipping. This is because there are no wide-bodied planes flying from Johannesburg to Windhoek,” said Jay. Consequently, Namibia-bound shipments arriving at Ortia are removed from the planes and transported by truck for the final leg cross-border to Namibia.

10 | APRIL 2009

Software package

offers specialised roadfreight functionality

BY Alan Peat

R

oadfreight has long been considered the “Cinderella” module of most freight management systems, according to J-L Koekemoer, systems architect and developer at Ship-Shape Software.

“But for us at Ship-Shape that is definitely not the case,” he told FTW. “With our specialised roadfreightoriented functionality such as estimates, consolidations, certificates of origin, preparing road consignment notes and manifests, managing roadgoing shipments has become an absolute pleasure for our clients.”

The cross-border transport brigade also gets a good deal from the software system – with over-border delays a thing of the past for ShipShape users.

“Direct electronic data interchange (EDI) submissions of over-border customs documentation means no more unnecessary delays at the border posts,” Koekemoer said, “with the added benefit of being able to track any shipment simply by entering a road manifest number or a client reference number.”

Koekemoer and his software design team have also come up with some other tricks of the trade, which, he told FTW, are meant to make business life easier for his software users.

“With powerful yet easy-to-

Border back-up … Ship-Shape facilitates direct EDI submissions of over-border customs documentation, helping to avoid border delays. use filtering and reporting at your fingertips, finding the right information is an absolute breeze,” he said. “For instance, instead of having to draw and print a whole report first, you might be interested in quickly viewing all the roadfreight shipments that a particular exporter has shipped to Blantyre in Malawi for the past two months. By simply applying a filter to your shipment register, you have immediate access to the actual files, not just a printed document.

“Which of these shipments have not yet been invoiced? No problem, simply add the ‘un-invoiced’ option to your filter and voila!”

In Koekemoer’s book, it is hard to stay on top of new developments in the ever-changing world of technology without a trusted systems provider.

“To fill such a role,” he said, “we are dedicated to our clients’ needs and spare no effort in resolving systemrelated issues.

He is also a dedicated fan of the

internet – a system that he describes as “a communications marvel”.

“With the level of maturity the internet has reached in the past three or four years, coupled with more accessible broadband connections, support turn-around time has been drastically reduced,” he said. “We are now able to troubleshoot a remote site in real-time over the ‘net, as well as ensure that critical updates are distributed and applied instantaneously across our entire client-base.”

FTW1657SD

ABNORMALly good service ... diversified, manoeuvrable & dedicated General Cargo Containers Abnormal Loads Bulk Liquids Hazardous Cargo

Durban Tel +27 31 465 5003 Johannesburg Tel +27 11 918 5942 rbrent@tcsfreight.co.za www.tcslogistics.co.za

Angola • Botswana • DRC •Malawi •Mozambique • Namibia • Zambia • Zimbabwe

“Africa Just Got Smaller”

FTW4335

• ROAD TRANSPORT • HANDLING AND STORAGE OF FULL FLEXITANKS AND TANK CONTAINERS • HOT WATER HEATING AND ELECTRONIC TEMPERATURE CONTROL • TRANSFERING PRODUCTS TO ROADTANKERS • DISPOSAL OF DUNNAGE • LICENCED CONTAINER DEPOT SATI Container Depot Durban (Pty) Ltd 6 Beechgate Crescent, Southgate Business Park, Umbogintwini.

Phone +27 31 9148000 Fax +27 31 9148030 dursatmng@satidepot.co.za FTW4322

Specialists in the heating of bulk liquids in Flexitanks and Tankcontainers.

Adding value to your supply chain.

12 | APRIL 2009

Swaziland Railway invests in rolling stock

Payment issues to the fore as economic crunch bites

‘Business is cyclical – and effects of natural disasters will pass’

BY James Hall

BY James Hall

U

nexpected circumstances can reduce a shipper’s volumes, but the lesson of Swaziland Railways is to forge ahead with developmental plans, knowing business cycles turn and the effects of natural disasters will pass.

“Our exports were low when compared to last year, 2007/08, which was caused by a loss of timber business after Mondi Forests were destroyed by fire,” said Stephenson Ngubane, director of operations at Swaziland Railway.

Another major client for Swaziland’s rail system, paper pulp manufactured and exported by Sappi, was affected by a prolonged maintenance shut down at the plant from July to November last year.

With the Swazi government building fewer large-scale public works projects, cement volumes hauled by rail were also down.

“All these factors are subject to change, even the global economic crisis, which has had a negative impact and is continuing,” said Ngubane.

“Container business maintained the same

levels as last year but against higher expectations.”

On the other hand, imports have performed better than last year, led by increased fuel volumes brought by rail, he said.

SA freight brought through the country, along with rail cargo originating or en route to other regional countries proved a key source of business for the company.

“Transit traffic has improved when compared to last year, boosted by mineral exports from Phalaborwa.

However, general goods dropped due in part to a very low demand from Zimbabwe due to the collapse of the economy in that country,” Ngubane said.

Anticipating a reversal in regional business fortunes, Swaziland Railway is investing in its rolling stock, and has recently acquired 20 tank wagons.

“These tank wagons will be used for fuel, and will be injected into the existing fleet dedicated to the conveyance of fuel,” said Ngubane, who added the company’s locomotives were adequate to meet the current demand of a fluctuating market.

Maintaining customers is essential during rough economic times, but payments due to a transport firm must also be met, otherwise a company can no longer meet its own expenses – a lesson, or rather a balancing act that is well known to Sharp Freight. From its base at Swaziland’s Matsapha Industrial Estate, Sharp Freight moves goods into Africa, having recently expanded service into Botswana and Lesotho.

“We are not suffering as a business because we are keeping our customer base,” said Jabu Vilakati, co-director of Sharp Freight with Shadreck Mnisi and Service Magagula. But collecting from customers come invoicing time has become a challenge, he said.

“We have long-term contracts, and we give our customers credit agreements.

Payment is due in 30 days, but we find some customers roll it over to 60 days, even 90 days. You have to be patient, but some customers take advantage of that patience,” Vilakati said.

Meanwhile, unpaid bills mean less funds to operate a multi-national road transport business.

Whatever you need, we have the solution

Jabu Vilakati ... new warehouse on the cards.

“Clearing and forwarding is a challenging business at the best of times.

But this year we have economically challenging times, and some customers aren’t paying,” Vilakati said.

Sharp’s stock in trade is the transport of general cargo. Recently, its SuperLink trucks have been moving scrap metal into Africa. Raw materials manufactured in Swaziland for the local

Prestmarine International

FSP Ref No: 165

Warehousing Clearing & Forwarding Vehicle Clearing Specialists T+27 31 465 7906 info@loganfreight.com

Marine and General Short Term Insurance Specialists

F+27 31 465 0766 www.loganfreight.com

Sea, Air, Rail & Road

Your Interest • Our Business Tel +27 11 453 9002 • Fax +27 11 453 9022 www.prestmarine.co.za e-mail: marine@prestmarine.co.za

FTW3603

Durban • Richards Bay • Harare

FTW4080

Crontrans Group “Your complete Logistical Solution”

WE CARE · ONS GEE OM

South Africa · Zambia · Zimbabwe · Namibia · Botswana · Mozambique · Swaziland · Angola

Tel: +27 (0) 16 970 1200 Cell: +27 (0) 83 628 7340

FTW4268

● ● ●

Own Fleet in operation for more than 20 years.

Hazardous & Non-Hazardous products.

Services Offered: ■ Tankers – Fuels; Solvents; Acids; HFO’s; Edible Oils.

■ Tippers – Coal; Grains; Chrome; Iron; Copper Concentrate.

■ Material Handling; Bagging; Packing; Warehousing.

■ Flat Decks – Packed Cargo; Bags; Drums.

Email: henucronje@crontrans.co.za

APRIL 2009 | 13

Niche service targets bulk fluids

garment industry are transported to textile factories in Botswana and Lesotho.

While cost-cutting is an essential strategy, said company co-director Mnisi, it is important to keep an eye on the horizon and implement capital improvements, such as a new warehouse that Sharp will construct as it expands its Matsapha site.

In addition to providing all the facilities of a major container depot, SA Transport Investments (Sati) is now busy promoting another new, niche service – a full temperature-controlled heating system for Flexitanks and Tankcontainers transporting bulk fluids.

“There’s a problem,” MD Mark Holbrook told FTW. “Certain bulk fluid products – such as any oils or fruit products, like glucose – cool down on their transport leg, and the fluid becomes viscous.

“At the time of loading many products are still warm, which assists in the loading process. On arrival in Durban the product is at ambient temperature and very viscous. Some receivers are unable to off-load the product in this state and this is where Sati offers a heating facility to heat the product and load to road tankers for ease of off-loading at clients’ premises.

“If you’re trying to transfer the fluid in its thick state, that’ll take you eightto-nine hours. With the heating system applied to the container, the whole job only takes two-to-three hours – a third of the time.”

The company also arranges to strip and dispose of the dunnage and bulk bag and turn the empty container into the shipping line’s nominated depot.

Road Transport to Angola and DRC Since 1993

ing offer ons w o N ti olida cons Angola to

CASTLE TRANSPORT • 24 tons to abnormal loads • Projects • Door-to-door • Warehousing & Distribution Tel: +27 11 907 3914 Fax: +27 11 907 3913 For rate enquiries please email: castletrp@mweb.co.za FTW3573

FTW1402

14 | APRIL 2009

Driving academies

will address severe skills shortage

BY Liesl Venter

T

he establishment of driving academies across South Africa remains a key focus for the Road Freight Association.

Says technical and operations manager Gavin Kelly: “We have a severe skills shortage in the country and we don’t expect to change this in the immediate future. These academies will, however, play a crucial role as they will allow individuals to be trained in the skills of driving various vehicles as well as aspects of the Professional Driver Qualification which allows for career development.”

According to Kelly, recruiting and training truck drivers is not a simple and easy task. “A truck driver not only has to be multi-skilled, he needs a wide range of physical and mental qualities to enable him to do his job efficiently.”

Thus, as a starting point, drivers need excellent driving skills. In addition they need to have knowledge of emergency procedures, how to identify and handle hazardous road conditions, first aid, knowledge of different methods of securing and covering loads, an understanding of

legislation, and knowledge of the relevant transport laws while also being able to use the satellite tracking equipment and on-board computers.

“Drivers often have to act independently and make decisions with minimum supervision. There are also physical requirements for the job.

Truck drivers need to be reasonably fit and healthy with no back, heart or neurological conditions,” says Kelly.

After finding someone who fits the criteria it is therefore necessary to ensure they receive the best of training – something the driving academies can and will address.

According to Kelly a major concern in the industry is the lack of young drivers entering the industry.

“The average age of drivers is mid40s. Serious work needs to be done to not just attract truck drivers, but also to retain them. With the stigma attached to HIV/Aids in trucking and the loss of drivers due to the pandemic, our resources have rapidly diminished.

Kelly says, as the trucking industry is not generally viewed as glamorous, fewer and fewer school leavers are choosing truck driving as a career.

“This just exacerbates the problem.

DON’T SETTLE FOR LESS AIR, ROAD AND SEA FREIGHT INTO SUB-SAHARAN AFRICA Your freight partner for Normal, Abnormal and Bonded Cargo contact Florence Ross +27 82 324 1859 Tel: +27 11 979 1232/1245/1252 Fax: +27 11 979 1255 Email: florence@amrlogistics.co.za FTW3633

Add to that the lack of skilled and experienced trainers and we may be facing a major problem if we don’t turn the situation around soon.”

Roadfreight to/from

ZIMBABWE

• Full Loads • Part loads • Consolidations • Full Loads to Zambia Associated offices • Harare • Beitbridge • Mutare

Tel: +27 11 221 3300 Fax: +27 11 334 5567 Email: warren@leoship.co.za

FTW3517

Daily EXPRESS loads GAUTENG-COPPERBELT Dedicated loads Consolidations Warehousing Packaging Tel: +27 11 974 0575 Fax: +27 11 974 0714

ken@cargopackers.co.za richard@cargopackers.co.za

SA Cell: +27 82 851 5450 Zam Cell: +26 0966 996 938

From 1 ton to 32 tons

Small enough 2 care, large enough 2 carry FTW4057

APRIL 2009 | 15

TFR keen to get citrus trains moving

BY James Hall

T

Domestic and international transport by road and rail

● Containers, breakbulk, abnormal loads ● Domestic distribution and cross border roadfreight to Zimbabwe, Botswana, Lesotho, Swaziland, Zambia and Mozambique.

We add value through: ● Documentation collection ● Monitoring of cargo status ● Vehicle tracking and monitoring ● Daily upliftment and status report ● 24-hour cellular communication with subcontractors ● 24-hour service ● Backup fleet

Tel: +27 31 337 4270 Fax: +27 31 337 8527 E-mail: jvc@ispace.co.za

GRAPHITE 2526

here is no reason why perishable products currently travelling by road cannot make the journey by rail, perhaps bearing the large volumes of citrus transported through KwaZulu/Natal to the Port of Durban. But sluggish operations at Durban impede the rail option, stakeholders said at a recent logistics workshop there.

Mounted by the Citrus Growers’ Association (CGA), the workshop seemed more a mini-summit, where growers, clearing and forwarding agents, cold storage operators, pack houses, government and port authorities and others agreed that four key areas needed to be addressed.

Leading the list is the turnaround time of trains, which needs to be speeded up, especially for perishable cargo.

The exporters themselves need to get their acts together and fully commit to rail use. “Once committed you cannot cancel a train,” noted one participant.

Not just congestion at port, but delays en route are hindering cargo movement, and these must be identified and addressed.

Finally, more “discipline” is needed at the cargo’s point of origin, the pack house, which must have perishable products ready on time because a train cannot be held up.

Unlike a truck, a train is not an independent vehicle but is tied by schedule to all other rail movement en route or even regionally.

Said Justin Chadwick, CEO of CGA: “There are already examples of successful movement of fruit from road to rail which need to be built on.”

A train dedicated to perishables has worked for years from Tzaneen, headquarters of the Sub-Tropical Growers’ Association, to Cape Town, bearing loads of avocados. Efforts are under way to route a similar train from Tzaneen to Durban.

“There is a willingness and eagerness on the part of Transnet Freight Rail to get citrus trains going,” said Chadwick.

Your logistics needs managed from A-Z

FTW3790

Perishable shippers spell out priorities for move to rail

FTW1213SD

16 | APRIL 2009

Moz-Joburg service offers speed of air at roadfreight rates

By Liesl Venter

DAILY CONSOLIDATIONS TO • BOTSWANA • SWAZILAND • LESOTHO Local and into Africa on request 1000m2 warehouse in Johannesburg 600m2 warehouse in Botswana with bonded facilities Door to door deliveries Handling of all documentation and border procedures Removals in bond Unlimited Assistance

FTW3577

email: kitty@botcon.co.za Johannesburg | Tel: +27 11 974 0342 | Fax: +27 11 974 0363 Gaborone | Tel: +267 390 8236 | Fax: +267 390 0493 www.botswanaconsolidators.co.za

Licensed road courier operator between Mozambique and South Africa, Panthera Express has seen steady growth in recent months.

This, the company believes, is due to the relationship it has built with customs in Mozambique.

“We share the same premises and are able to ensure our customers receive quick and efficient attention,” says Panthera Express director Sandro Seresi.

Through a concession from Correios de Mocambique (the Mozambican Post Office), Panthera Express has an agreement with Mozambican Customs to clear goods in the Maputo city centre at the premises of the Terminal Internacional de Encomendas Postais (also the premises of the company’s warehouse).

Along with a licence from the Ministry of Transport, issued by the Instituto Nacional de Comunicacao de Mozambique, as well as its membership of the Association for Mozambican Courier Companies, Panthera Express is well connected to deliver a prompt and efficient service, says Seresi.

Based in Mozambique with offices in Johannesburg, the company offers a thriceweekly courier service between Maputo and Johannesburg.

“Our service is overnight and by prior arrangement can be delivered to their door.

Our warehouse premises in Maputo are on

the same site as customs and this allows for a very fast service.”

In fact, probably as fast as using air to courier, says Seresi, only at a much more affordable rate.

“We were the first private courier company in Mozambique and have built up a very strong relationship with the various officials. We are also the official courier for the Mozambican postal service.”

Panthera Express also ofers a service to Beira once a week. “We are slowly but surely attracting bigger business as they are seeing the benefit of using our trucks – road is not necessarily slow. We are hoping to be able to offer a daily service between Maputo and Johannesburg very soon.”

The courier service also comes with a tracking system and both sender and receiver are kept up to date on their parcels via SMS. “People need to know where their goods are at all times. Using our courier service not only guarantees this, but it is also more flexible and can be adapted to suit a particular client’s needs.”

Contracted to move fresh flowers from Johannesburg for the various Mozambican government departments and hotels in Maputo means they have to move quickly.

“Our trucks leave Maputo early morning for pick up in Johannesburg and depart again early evening. They overnight at the border post to reach our warehouse and customs in the early morning.”

FTW1530SD

A Division of Santam Limited

Rest insured ... While we insure your risks Marine Cargo Insurance being Import, Export | Advance loss of Profits | Stock Through Put Marine Goods in Transit and liabilities attaching thereto | Hull - Private and Pleasure, Commercial and Fishing Marine Liabilities, i.e. “Charterers” “Ship Repairers” “Stevedores” and “Marine Operators”

Cape Town 021-419 5445/8 Durban 031-201 1055/6 Johannesburg 011-358 9010 Port Elizabeth 041-373 2315 petra.fordyce@amua.co.za www.santam.co.za FTW1167SD

to delivery

efficiency dedicated APRIL 2009 | 17

Companies increasingly call for up-front payments

to delivery

efficiency dedicated

By Liesl Venter

R

ail may be a very viable and appealing option when moving freight in and around South Africa and Africa, but the reality is that it is just not sufficiently trustworthy.

That’s the view of Hazel Briggs, managing director of HB Services, a Johannesburg-based local and cross border freight consolidator that specialises in the transportation of hazardous chemicals.

“Border clearing times are always an issue, but at least daily progress reports are available when one is transporting by road. With rail this facility would need to be addressed and in our case I would need to be sure that even though Transnet has improved its service, cargo is safe at all times. What happens when the cargo leaves South Africa?”

Briggs says it is imperative to address issues like the infrastructure of receiving countries to ensure that cargo is not pilfered or damaged before reaching its final destination.

Briggs says ensuring cargo reaches destinations safely is just one aspect of service excellence and that changing to rail is not an easy and quick decision. Taking the worldwide economic downturn into account, the focus in many businesses is not to re-invent the wheel but rather to keep cash flows going.

“All businesses are facing difficult trading conditions and the important aspects of doing business right now include keeping a close watch on cash flows and offering service that is value for money to clients while looking for any opportunity that may arise out of the downturn.”

According to Briggs the majority of companies are feeling the pinch and while many had been hoping to avoid the economic downturn, the next few months will be make or break.

“It really is about trying to find the opportunities to remain viable in order to still be around when the economy

to to delivery delivery

efficiency

Innovative freight solutions ensuring your competitive edge.

Road freight of perishable goods, general & industrial consignments, Innovative freight solutions

solutionsAfrica. withinInnovative the RSAfreight & Southern Innovative freight solutions ensuring your competitive edge.

Hazel Briggs ... rail not sufficiently trustworthy.

ensuring your competitive edge.

picks up again,” she says.

This is not made any easier when suppliers of cross border transport want up-front payments. “The old days of 30 and 60 day accounts seem to be disappearing. So shipments cannot even be collected till proof of payment has been received. Also, due to the increased costs many are experiencing, many transporters now insist on partial or full up-front payments, which can play havoc with cash flows.”

ensuring your competitive edge.

Road freight ofloads perishable Consolidated fromgoods, RSA to Road freight of perishable goods, general & industrial consignments, general & industrial Zimbabwe &consignments, Zambia Roadwithin freight of &perishable goods, the RSA Southern Africa. within the RSA & Southern Africa.

general & industrial consignments, Consolidated loads from RSA to

from RSA Africa. to withinConsolidated theZimbabwe RSA loads & &Southern Zambia Zimbabwe & Zambia

Consolidated loads from RSA to Zimbabwe & Zambia

Feature Durban/Richards Bay Publication date: 26 June 2009 Booking deadline: 15 May 2009 To promote your services contact FTW4311

CARMEL LEVINRAD on Tel:+27 11 214 7303

F r e i g h t

C o - o r d i n a t o r s

( P T Y )

F r e i g h t

C o - o r d i n a t o r s

( P T Y )

L T D

F r e i g h t

C o - o r d i n a t o r s

( P T Y )

L T D

L T D

Tel:Tel: +27 9078808 8808 SOUTH AFRICA ZAMBIA +27(11) (11) 907 Tel: +27 (11) 907 8808 Tel: +27 (11)Fax: 907Fax: 8808 Tel/Fax: +260 1 262 924 +27(11) (11) 907 8969 +27 907 8969 Fax: +27 (11) 907 8969 Mobile: +260 email: transit@telkomsa.net 99 66 5990 Fax: +27 (11) 907 8969 email: transit@telkomsa.net +260 95 66 5990 email: transit@telkomsa.net email:transit@telkomsa.net email:morganzambia@zamnet.zm

24hr 24hr tracking tracking 24hr 24hr tracking tracking F r e i g h t

C o - o r d i n a t o r s

( P T Y )

L T D

24hr tracking 24hr tracking FTW3466

Tel: +27 (11) 907 8808

18 | APRIL 2009

Case study raises alarm bells for SA’s crumbling road network

BY Liesl Venter

B

ad roads are increasingly impacting negatively on the cost of transporting freight in South Africa.

Findings of the recently released Fifth State of Logistics Survey for South Africa found that driving on an uneven road surface affects the speeds at which any vehicle can travel safely.

This immediately affects the logistics of delivering goods at optimum times to a customer while also increasing the fuel consumption of the vehicle.

And as the cost of transported cargo increases it affects the economy negatively, said Hans Ittman, executive director of CSIR Built Environment, who delivered the results of the survey in Johannesburg earlier this month.

“South Africa’s roads will not last with the continuous large volumes of freight being transported on them.”

He said a case study involving a fleet of 577 trucks transporting cargo over a range of different road conditions was undertaken to determine the exact effects of roads over a nine-month period.

The roads on which the cargo was transported were also qualified according to their type, with one being an excellent road and five very bad.

“The riding quality of a road is the primary indication of the condition of a road. The decrease in the riding quality leads to increased vibrations that subsequently leads to the structural damage in vehicles,” said Ittman. “This increases the transportation costs of any company greatly.”

According to Ittman the case study found that trucks travelling with worse riding conditions experienced an increase in cost between 684% and 1 560% respectively. “The increase in cost was mostly due to breakages of suspension and trailer components.”

He said findings also indicated that vibrations of the road affected the transported cargo often resulting in damage to goods.

‘An all too familiar sight on SA’s pot-holed roads.’ Photo: Tijana Huysamen.

Innovative Transport Solutions Specialising in Local, Long Distance & International Transport Tel: (031) 301 3765 Fax: (031) 301 3761 www.skrfreight.com Lionel: 082 786 7222 • Chris: 082 569 2816

FTW4030

CARGO CRATES FOR ANYTHING FROM MACHINERY TO FINE ART

CAPE CRATING

SPECIALIST CARGO HANDLERS

P R O F E S S I O N A L W R A P P I N G , PA C K I N G , C O N TA I N E R L O A D I N G A N D S E C U R I N G Owen 082 457 9557 FTW3827

Sean 083 676 3405

sales@capecrating.co.za

APRIL 2009 | 19

Hijackings increase 10% year on year Driver training plays key role

R

oad safety continues to remain a key issue in South Africa, with hijackings and theft of vehicles still on the increase.

According to Gavin Kelly, technical and operations manager of the Road Freight Association, based on statistics received from the South African Police Service, hijackings have increased by at least 10% year on year for the past three years.

“One cannot really ensure safety, but training of drivers is important.

It is not prudent to train them to resist, but to be aware and not place themselves in vulnerable situations.”

This includes not stopping at unsafe, secluded or isolated locations, not offering lifts to strangers, and generally being aware of being tailed or followed, while driving in generally safe times.

It is also important that vehicle owners track their cargo and vehicles at all times. According to safety experts it is important for owners

to keep themselves updated on the way criminals operate and train their drivers to know what to do when under attack.

In 2008 police statistics showed that truck hijackings had soared to 1 245 from 892 incidents in 2006/07, an increase of 39.6%.

According to the SAPS, truck hijackings are very much organised crime involving syndicates where more often than not the cargo or freight is the target.

This view is shared by the Institute for Security Studies who say that truck hijacking far more than car jacking is an organised crime executed by highly skilled criminals. Research by the organisation has shown that criminals involved in truck hijackings are far more prepared and ready not only to ensure the vehicle is effectively disposed of, but also near impossible to find.

They advise truck drivers to ensure they are using routes that are safe and to keep up to date with hijacking trends.

FTW4195

● Daily Overnight express ● Clearing & Forwarding ● From documents to 34ton loads ● BFN - JNB - DUR

We take the hassle out of

hazardous cargo

Local Cartage l Long Distance Road Rail l LCLs Breakbulk Processing of CTOs l

l

l

Full & part loads • Consolidations • Breakbulk to Botswana, Namibia, Zimbabwe, Zambia, Malawi and DRC

T +27 31 205 5007 F +27 31 205 2177 E gerald@sa-il.co.za E roland@sa-il.co.za www.sa-il.co.za

LOCAL AND CROSS BORDER FREIGHT CONSOLIDATORS

FTW4249

FTW3968(b)

FTW1649SD

Maseru: Tel: +266 223 24791 Fax: +266 223 24564 email: hilary@kayhil.co.ls

Bonded transport to Lesotho

we measure twice, cut once l

Johannesburg: Tel: +27 11 908 9699 Fax: +27 11 864 9783 email: kevin@kayhil.co.za

FTW4242

BY Liesl Venter

Tel: +27 11 869 1585 Fax: +27 11 869 4524 e-mail: info@hbservices.co.za www.hbservices.co.za

20 | APRIL 2009

Shift away from port makes practical sense Road and rail-served Sati depot provides major benefits

BY Alan Peat

H

ow do you escape the congested roadways around the terminal areas of the port of Durban, the almost total non-availability of vacant land, and the terrible delays and frustration that these lead to?

“Get out of it,” said Mark Holbrook, MD of SA Transport Investments (Sati) Container Services in Durban – part of the AP Moller-Maersk group’s landside transport subsidiary in SA. His company did just that when in 2003 – to overcome the lack of land space in the port region and to avoid the traffic jams that are an almost perpetual occurrence in the access road system – it established its latest container depot 26kilometres south of the port.

This was built in a 24/365 securityprotected industrial/business park near Umbogintwini south of Durban on a 60 000 m2 site “with lots of room for future expansion on land that we’ve already acquired,” Holbrook told FTW. “Our intention was to run a full-scale, road and rail-served container depot on land that we owned,” he added. “At that

stage, our old depot had well outgrown its site, and there was just no land available round the port.

“Indeed, it was a point of contention, whether we needed to be near the port, or not.”

But the logic of the shift away from the overcrowded port area has been proven by the Sati depot’s current capacity figures. It can handle up to 1 000 TEUs a day, which gives a maximum monthly throughput capability of about 18-20 000 TEUs. “Talk about a depot near the port of Durban handling those sorts of volumes, and you’re talking about complete jamup potential. Being away from the port relieves us of these congestion worries.”

Trucking operations moving containers in-and-out of the depot have to balance the extra distance against their potential time and wear-and-tear savings in avoiding congested roadways when servicing the depot.

“The other advantage,” said Holbrook, “is that from the N3 highway – the main cargo traffic artery between Johannesburg and Durban – there is a direct link to our depot area using the N2 freeway.

Action stations at one of Sati’s national depot operations.

“The truckers don’t have to travel through the gridlock traffic in the central business district (CBD), nor the impossible congestion on the sole access road to-and-from the terminal area south of the port.”

There’s also the added bonus of the depot being fully rail-served, with a rail siding capacity of 20 TEUs – and a direct link to the Transnet Freight Rail (TFR) national rail network.

“This means we can move containers

or cargo anywhere in the country,” said Holbrook. “For example, we’re currently moving 40 to 50 block loads of reefers (refrigerated containers) to eastern Gauteng. These are empty boxes for the export packing of the fruit crops in that area.”

Although the railways are already providing a valuable additional transport mode for the depot, Holbrook bemoans the fact that rail could be a lot better – “If TFR could only got its act together”.

GENERATORS

& Reefer container power units

Underslung & clip on Sound attenuated stationery units 25kVA to 630kVA ● Fully established network of emergency plug-in power points located across South Africa ● Full service back-up

JOHANNESBURG

CAPE TOWN

DURBAN

TEL: (011) 312-0446/0189 (021) 555-3238

(031) 461-4211/4066

FAX: (011) 805-1080

(031) 461-5327

(021) 555-3750

E-mail: gph@mja.co.za NATiONAL DiALiNG 0861/GENHiR FTW1526SD

FTW1035SD

APRIL 2009 | 21

Four questions to consider in modal debate Practical efficiency must be balanced against cost efficiency

BY Alan Peat

I

n the road versus rail debate, an ongoing argument is based on practical efficiency versus pure cost, according to Nick Fountain, financial director of Silic Logistics.

“Where you load something on a truck it can go promptly door-to-door, but it’ll cost you more,” he told FTW. “By rail, it will only be transported station-tostation, but it’ll be much cheaper, even including the road movement to-or-from the stations at either end.

“That practicality versus cost question is a basic summary of what anyone doing a comparative study of the two modes has to aim for when assessing a business model.

Decision-makers need to look at their employment of resources, from which commercial decisions are made on the facts available.”

A number of factors need to be considered, namely human capital; monetary capital; land/natural capital; equipment/ infrastructural capital; and management.

“These factors of production need to

FTW1330SD

be employed in the context of the road versus rail debate,” marketing director Angus Dustan added, “and creative thought process need to be applied to ask the questions: What does either offer or save in

respect of the supply chain?

Can time on rail be considered an alternative holding cost?

Will better stock control allow for cost saving in utilisation of rail?

With carbon efficiency and go-green

initiatives forming a larger portion of corporate reporting, does the proven carbon saving on rail justify minimising the road transport utilisation?”

And some logistics companies have already begun answering questions such as these in their long-term business models, according to operations director, Warren Sievwright.

Silic Logistics, for example, has established a business model around maximising rail haulage in its short/ cross-haul system between Durban harbour and its Cato Ridge warehouse.

This, the three partners told FTW, was based on it being far enough outside the city centre to avoid traffic congestion and socio-economic costs – such as those seen on Bayhead Road, the only access route to the Durban container terminal (DCT) – but close enough to avoid any inherent inefficiencies of rail.

On receipt, the company then transfers the containers onto road hauliers for the door-to-door delivery leg.

“This modal swap was decided on,” said Sievwright, “because the timeefficiency of road transport is too important to our clients.”

22 | APRIL 2009

Own offices add muscle to overborder service offering Containerised cargo is ‘bread and butter’

BY Alan Peat

I

f you want to run a successful trucking operation in southern Africa, you have to extend your own tentacles into the neighbouring states with which you deal, according to TCS Logistics MD Rogan Brent.

“You have to create an owned network of facilities and people if you want to work your vehicle fleet in a selfcontrolled environment,” he said.

Following that same basic philosophy, his now 13-year-old Durban-based company has established infrastructure in Durban, Johannesburg, Messina, Beitbridge, Harare, Lusaka, Chirundu, Mwanza and Blantyre – with offices and workshops at all these centres.

“Our fleet owner sub-contractors rely on that infrastructure for all breakdowns, clearances, fuel, tyres, and maintenance,” Brent added.

And the total fleet – including Brent’s self-owned lowbed fleet of 10 rigs varying between 40 and 70-ton capacity – musters up about 200 trucks and trailers.

Some 85 of these – ranging from

general cargo and fuel to abnormal load outfits – belong to TCS’s main contractor, the Zimbabwe-owned Tauya.

“About another 100 that we manage belong to other dedicated subcontractors,” said Brent.

“Our bread and butter is, and always will be, containerised cargo. But we also handle food aid, fuel and other hazardous cargoes – and an extensive business in hauling abnormal loads into Zimbabwe, Zambia, DRC, Malawi, Mozambique and Botswana.”

And the entire fleet is tracked, traced, monitored and managed electronically – with tracking stations based in Durban, Johannesburg, Beitbridge and Harare, all manned by dedicated personnel.

The management of documentation is a huge factor in the business life of TCS, according to Brent.

“But, from the actual point-ofsale, where we raise the order for the transporter to pick up, to the final acquittal point, all the documentation is handled through our database – a system designed internally by a specialist computer programmer on our staff.

“When this process is completed, the

Diversified offering ... from containers to food aid, fuel and other hazardous cargoes. relevant details are transferred straight into the accounting system, which automatically invoices the client.”

This electronic system generates over 60% of the company’s documentation and invoicing, and Brent is in the process of putting it into a software package,

which he intends to sell to other similar operations.

TCS also has investments in property holdings, including warehousing.

“This all ensures that we’re diversified, but still with transport as our core business,” said Brent.

your oVErBorDEr spEcialist Roadfreight into Southern and Central Africa ▲ Full loads ▲ Hazardous cargo ▲ Confirmed daily tracking ▲ Dedicated express loads ▲

Tel: +27 11 396 4300 Fax: +27 11 396 4707 brendon@bpfreight.co.za www.bpfreight.co.za

FTW1648SD

FTW1660SD

FTW3590

since 1997

APRIL 2009 | 23

TFR ‘stepping up’ communication with major clients High payload limits have boosted fortunes for road

BY Alan Peat

T

here has been a monumental change in the relative fortunes of road and rail transport in SA in the past 20 years, according to Lawrie Bateman, MD of MSC Logistics.

“Some two decades ago,” he told FTW, “the rail monopoly was protected by law inasmuch as you had to apply for

a permit to transport goods by road.”

And also in those days there were some pretty ingenious interpretations of the categories of goods which would be guaranteed a permit to go by road.

“For example,” said Bateman, “under the category heading of ‘tools-of-trade’, an inventive product manufacturer listed washing powder as a ‘housewives’ toolsof-trade’ – and was granted its permit.”

Transnet Freight Rail has been busy stepping up its communication levels, including a series of meetings with its major clients.

But when the permit era was ended there was a dramatic switch from rail to road – including the formerly railexclusive bulk products – which nobody foresaw in its entirety.

And one of the triggers for this switch, according to Bateman, was that SA has one of the world’s highest permissible payload limits for road vehicles.

“But this has resulted in serious damage to SA’s road network, pollution and road safety issues that need to be addressed,” Bateman said.

And Transnet, faced with increasing dissatisfaction, has had to come up with its own counter-measures to recover lost freight volumes.

One of these, according to Bateman, was the R80-billion investment, planned to be used to replace ageing locomotives with “good-as-new” rebuilds, and refurbishment of the fleet of rail wagons.

“Inevitably that botched tender procedure for 212 locos threw a spanner in the development works,” he said. “And, although it has since been replaced with a tender for 100 locos, this will take time.”

In the meantime, Transnet Freight Rail (TFR) has been busy stepping up its communication levels, including a series of meetings with its major clients.

(Pty) Ltd

(BEE Accredited)

Committed to superior standards of customer service which founded Firstclass Logistics and inspired our vision

Bonded Roadfreight to Namibia

Johannesburg:

Consolidations • Full loads JOHANNESBURG

CAPE TOWN

WINDHOEK

Tel: (011) 974 5673 Fax: (011) 974 5674

Tel: (021) 905 9449 Fax: (021) 905 9455

Tel: (09264) (61) 371 160 Fax: (09264) (61) 371 165

email: gordon@transworldroadfreight.com FTW3302

“It has also been forming a ‘corridor strategy’ in alliance with the ports management,” said Bateman. “That is taking place under individual general managers for each specific corridor, to ensure a growth profile in terms of their rail efforts.”

Transportation & Warehousing including hazardous cargo Packing & unpacking

Transworld Roadfreight Distribution to Namibia

Lawrie Bateman ... ‘Transnet has had to come up with its own counter-measures to recover lost freight volumes.’

Tel: 011 826 4417 Fax: 011 826 2354 Gashen@fcl-sa.co.za

Durban: Tel: 031 312 0720 Fax: 031 312 0778 Pregasen@fcl-sa.co.za Ritesh@fcl-sa.co.za

w w w. fi rs t c l a s s l o g i s t i c s. c o. z a

FTW4026

Your full landside logistics link Domestic & Overborder Abnormal Loads Warehousing Crating and Fumigation Packing/Unpacking containers Hazchem compliant

SERVING SOUTH AFRICA

Johannesburg: 011 021 5214-8 FTW4296

Durban: 031 206 2910/2973

arnold@reddycargo.net sharlin@reddycargo.net sesham@reddycargo.net dumi@reddycargo.net

24 | APRIL 2009

Europe sees modal shift from air to road and rail Airfreight surcharges add unpredictable costs

By Alan Peat

R

ail is actually now being viewed as a possible alternative to airfreight in some parts of the world, but the chances of that happening in SA “are extremely slim”, according to voices in the freight industry.

It didn’t even merit consideration, said one, with rail still battling just to overcome the road challenge for general, containerised freight in this country, and “failing miserably”, he added.

Airfreight being substituted by rail in SA is just not in anybody’s vocabulary.

But in Europe, even the express delivery market is currently experiencing a modal shift from air to road AND rail.

Rising fuel surcharges, the economic slowdown and government regulation are all factors driving express and parcel delivery companies to consider alternative modes of transport as they look to minimise the costs of air services.

A report in International Business Logistics (IBL) said that “this shift will

favour rail in particular, as both freight and express players look to capitalise on the low cost alternative that rail networks offer”.

‘Road congestion charges in central London, Stockholm, Norway and various other countries are all now acting in favour of the rail mode.’

With the serious ups and downs in the oil price in the past 18 months, and airlines’ fuel surcharges following the same volatile path, freight customers and operators have been watching rates in both the domestic and international air express segments fluctuate disturbingly.

These sudden price shifts cannot be planned for in advance, and the user/ operator market has begun to have its doubts about the continued use of a mode with such uncertain costs.

This has led to the express and parcel

delivery companies starting to see road and rail as viable alternative modes of transport – due, the IBL report added, “to their superior cost profile and service capabilities compared with air services”.

Indeed, in the mature markets of Germany, France and the UK, express operators are already increasing their use of the rail sector, especially in international delivery services on the big trade routes between European countries.

News is that express operators such as Time Matters (Germany), DHL (UK), Business Post (Same Day) UK and Swiss Post are already offering express services through the rail network to serve sameday and next-day domestic delivery requirements.

Meanwhile, it also appears that US operator FedEx has plans to team up with the French rail network to set up high-speed TGV trains running at 300kilometres-per-hour in the Euro Carex (Cargo Rail Express) project. This could prove to be a viable solution for time-definite deliveries, and may help

to reduce reliance on air networks for domestic and international deliveries within the EU. While for the moment road transport is seen as a cost-effective method for moving consignments within the European Union (EU) – already accounting for about 80% of the total express market value in the developed markets of Germany, the UK and France – cost factors are disturbing its supremacy.

It is reported around Europe that road congestion charges in central London, Stockholm, Norway and various other countries are all now acting in favour of the rail mode.

And, although express door-todoor delivery has recently tended to use intermodal transportation for both domestic and international segments, there is also a distinct change of tune here. A number of commentators expect that, in the medium- to long-term, there will be a definite move to rail transport over road and air.

Advertisers' Index AMR Logistics Associated Marine Aviar Freight Logistics Botswana Consolidators Bonds Unlimited Namibia BP Freight Bridge Group Cargo Movers Kaserne Containers Depot Cape Crating Castle Transport Compu-Clearing Conop Freight Crontrans

14 16 19 16 10 22 IFC IFC 18 13 IBC 8 12

Cypress Transport Desert Logistics DyNAMIX Freight Africa First Class Logistics Frits Kroon Transport Generator & Plant Hire Grove Logistics HB Services Interloc Freight Services JVC Freight Carriers KA GO 2 GO Kayhil Freight Leo Shipping Logan Freight

6 2 4 23 5 20 4 19 3 15 14 19 14 12

M&B Transport Services Manline MSC Logistics Nomad Freight Nyati Transport Panthera Express Parcel Perfect Prestmarine Reddy Cargo Services Robertson Freight SACD SATI Container Depot Durban Sebenza Forwarding & Shipping SGS South Africa

13 6 15 8 4 2 1 12 23 8 7 11 24 9

Sharp Freight Shipshape Software Silic Logistics South African Inland Logistics SKR Freight Swaziland Railway Swift Container Logistics TCS Logistics Toyota Forklift Transit Freight Transmax Logistics Transworld Roadfreight Trucktek Vikela Aluvin

19 2 IBC 19 18 22 21 10 20 17 22 23 9 16

FTW4040

Sebenza Forwarding & Shipping is committed to service excellence

Johannesburg Tel: 011 571-0600 Fax: 011 970-3638

Pretoria Tel: 012 665-1141 Fax: 012 665-4555

Cape Town Tel: 021 505-9300 Fax: 021 535-5215

Durban Tel: 031 459-5000 Fax: 031 461-1282

Port Elizabeth Tel: 041 484-2480 Fax: 041 484-2487

East London Tel: 043 742-2216 Fax: 043 742-2666

email: info@sebenza.co.za www.sebenza.co.za Customer Careline 0800 20 1600

London Tel: +44 1753 68-7093 Fax:+44 1753 68-5368

FTW3837b

In for the Long Haul ● transport ● Warehousing ● Project Logistics ● shipping ContaCt us on: 08610 sILIC (74542) www.silic.co.za FTW4314