Future of Trucking & Logistics by Buyi_d

October 2013

Vol. 01. No. 04

App Store the ™ n o

Truck Financing Powe red B y

Taming the Wind Effective Trucking Aerodynamics

The Tip of the Sales Spear

<< What To Look Out For At JIMS / Trucks As More Than Freight Movers >>

ogle Play™ Go

Availab le

Rise of the Phoenix Iveco’s Local Comeback

McCANN 910213

Isuzu Trucks After-Sales support means real peace of mind, 24/7.

Call 08600 ISUZU or visit isuzutrucks.co.za

Contents Future Trucking & Logistics is published bi-monthly by: Future Publishing No 9, 3rd Avenue, Rivonia Tel: 011 803 2040, Fax: 011 803 2022 P.O. Box 3355, Rivonia, 2128

Cover Story 18

Rise of the Phoenix

Under new management, Iveco is rapidly addressing the challenges which hampered its growth in South Africa, with the effort

paying off handsomely

Editor Leon Schnell leon@thefuture.co.za

Just Offloaded

Sub Editor Chris Reilly chrisr@thefuture.co.za

MAN’s new SA head, Volvo’s combined

parts facility, Serco’s innovative camera system, UD Trucks’ new Quester, JIMS essential information, Iveco’s new dealership

Contributors

Chris Crookes Craig Proctor-Parker Philip van der Merwe Lauren Burley Copley

Advertising Nina Harms nina@thefuture.co.za Enver Lawangi enver@thefuture.co.za Design & Layout Buyisiwe Dlamini buyisiwe@thefuture.co.za Publisher Divisional Head Editor-in-Chief Production

Richard Lendrum Nina Harms Wynter Murdoch Mabel Ramafoko

Features 10 12

24 26

© Copyright. All copyright for material appearing in this magazine belongs to Future Trucking & Logistics. No part of this magazine may be reproduced without written consent of the publisher. The views and opinions expressed in this publication are not necessarily those of the publishers. While precautions have been taken to ensure the accuracy of advice and information given to readers, neither the editor, proprietors, nor the publishers, can accept any responsibility for any errors or omissions, or any effect arising therefrom.

Do you want even more?

32 34 36

Visit our website at: www.futuretrucking.co.za

a closer look at the topic for truckers Innovative Trucks 1: the Harley-Davidson ‘Legend on Tour’ roadshow truck Innovative Trucks 2: Hino’s versatile race- support mobile parts centre

The Business Case for Relationships: SCM World’s revealing new study Smoother Trucking: why is Isuzu’s AMT transmission in such demand?

Truck Financing: MBFS shares insights into this critical industry

Imperial Logistics Reinvented: Resolve arises from business consolidation Eyes in the Cab: DriveReport’s MD shares the company’s vision

Regulars 22

Views from the CSIR: Nadia Viljoen

reflects on the State of Logistics studies Day in the Life: we profile the RFA’s female labour relations manager

Carbon Emissions:

38 Crash Scene Investigation: improving trucks’ crash safety 42 Technology Focus: getting the most from trucking aerodynamics 46 Truspieël: Afrikaans hooftrekke uit die artikels October 2013 / Future Trucking & Logistics

An October To Remember

hances are if you’re in Gauteng this October you’ll be at the Johannesburg International Motor Show – head over to page 6 for a preview of what’s in store for you. I’m happy to say that Future Trucking & Logistics will definitely share a stand there with the rest of the Future Group’s automotive titles, so feel free to stop by and say hello! If you’re in the mood for new things – and this is the month to indulge that – then you’ll want to also visit www.futuretrucking.co.za, where we’ve uploaded the first videos in our series of corporate interviews, bringing life to the stories on these pages.

also launched our very own mobile application – if you have an iPad, you can now carry us with you free of charge! Just search for ‘Future Trucking’ in your app store. On a more serious note, I share the industry’s horror at the recent truck crash in Pinetown, and sincerely hope that the necessary measures will be put in place by all transport operators and traffic authorities to ensure that this never repeats. Purely by coincidence, our latest feature by Craig Procter-Parker on page 38 looks at crash safety in trucks. Here’s wishing you a successful and safe third quarter! Until next time,

You may have already guessed this next bit of news from the new roundel on this issue’s cover, but we’ve

Leon Schnell Editor

Quality Components & Systems for Truck & Trailer

SAF-HOLLAND Africa Future Trucking &South Logistics / October 2013

Crn. Crownwood & Modulus Road Ormonde Tel: +27 11 496 3196 · Fax: +27 11 496 3696 · Jo@safhollandsa.co.za

www.safholland.co.za

<< NEWS

FW:

Snippets From Our Inbox

Sent: To:

Wednesday 25 September 2013, 2:43 PM Leon@thefuture.co.za

The e-mail inbox of Future Trucking & Logistics is always buzzing with new press releases. What follows are concise extracts directly from those releases. If you have news you’d like to share, please e-mail leon@thefuture.co.za. RE: MAN Truck And Bus (S.A.) Builds Business Agility As of August 1st 2013, MAN Truck & Bus (SA) appointed Geoff du Plessis as executive chairman joining Bruce Dickson, chief executive officer, and Max Heller, the chief financial officer. Markus Geyer and Sarah Luthuli will serve as non-executive directors. As a former MAN Truck & Bus (SA) CEO, Geoff du Plessis returns to home soil after spending five years in Europe. His last assignment in Munich was senior vice president of MAN Truck & Bus AG responsible for business units. The three directors will drive MAN’s future growth with Geoff assuming overall responsibility, strategic direction and accountability for the company. RE: Volvo Group To Invest In a New Parts Facility In Johannesburg The Volvo Group has announced that it will consolidate the logistics services for all its South African operations into one distribution centre in Johannesburg. As a result, all the parts warehousing, logistics and distribution services for Renault Trucks, Volvo Trucks, Volvo Bus and UD Trucks will be housed under one roof. The new incorporated Volvo Group SA distribution centre will be established on the company’s existing site in Johannesburg, which will be expanded and upgraded from 4 500m² to 11 500m². It is located on Volvo-owned land in a prime location close to the company’s headquarters in Jet Park. RE: Global Launch of New UD Product Range The UD Trucks Corporation of Japan has recently held the global launch of the company’s all-new extra heavy truck range, the Quester, in Thailand. Designed and developed specifically with the world’s fast-growing regions in mind, the Quester range is expected to be launched in sub-Saharan Africa during the third quarter of 2014. “The Quester range will not replace any products in our current line-up but will simply enhance our offering to our customer base,” said Jacques Carelse, managing director of UD Trucks Southern Africa. RE: Serco Introduces A New Reversing Aid For Trucks And Trailers Serco and Ikhaya Automation are marketing and distributing a camera system for trucks and trailers in line with their drive to offer transporters leading edge technology. The system is designed to assist the driver with reversing and has an in-cab LCD screen linked to a rear mounted camera. By improving rear visibility utilising a wide angle camera, the driver can maneuver the vehicle for offloading quickly and safely while reducing the chance for damage during docking. “While there are other camera systems available, these focus on recording driver behavior and driving standards, while this system does all of this, it also offers the reverse aid facility which assists the driver greatly and saves costs by reducing accident damage and saving time,” says Serco managing director Clinton Holcroft.

October 2013 / Future Trucking & Logistics

NEWS >>

From Beasts of Burden to Show Ponies One of the most anticipated events on the South African motoring calendar is finally upon us: the Johannesburg International Motor Show (JIMS). Here Future Trucking & Logistics provides a preview of the Truck and Bus Show component

lthough car and even truck shows are not that unique in South Africa, JIMS takes pride of place as THE show to visit or exhibit at, given that the brand is owned by the National Association of Automobile Manufacturers of South Africa (NAAMSA). At its previous running in 2011 the show succeeded in attracting 202 000 visitors, and organisers this year have announced their hope of growing that number to 275 000. This will be helped in part by additional impetus brought to the event by its new Platinum sponsor, WesBank, and also given the distance from the economic recession which cast its gloom over the last JIMS. Conveniently, the show will take place during the second half of South Africa’s official Transport Month, and an additional show day has also been added to the event’s calendar. JIMS and the Truck and Bus Show will be officially opened on the 17th of October by the Minister of Trade and Industry, with the show open to the public from Friday 18 October to Sunday 27 October.

From Iveco: “The three new vehicles being launched locally at the show by Iveco South Africa include; the Iveco Stralis Hi-Way 500HP Euro 5 - which was named as the 2013 ‘International Truck of the Year’ winner, in addition to the Iveco Daily Euro 4 minibus and the Iveco Trakker Hi-Land 6x4 truck-tractor with 6x4 rigid version. What’s more, visitors to the Iveco stand will also get a special sneak-peek of the company’s brand new EuroCargo 2014 truck, which is being officially launched next year.” From Hino: “An important new addition to the 700-series range of extra-heavy trucks is an 8x4 model, well suited for various applications in the construction industry, which Hino SA now aims to target with a wider range of its revitalised 700-Series models. The 8x4 model can be used for tipper, mixer or heavy duty freight carrier applications.”.

Although many manufacturers prefer to reveal their latest products exclusively at the show, Hino and Iveco both bucked this trend, giving early previews of what is to be found on their stand.

More Details Johannesburg Expo Centre Rand Show Road, Nasrec GPS: S26° 14.810’ E27° 58.695’ www.jhbmotorshow.co.za

At the time of going to print, the following commercial vehicle exhibitors had confirmed their participation: Afrit South Africa Benetrax Cummins SA DAF Trucks FAW Vehicle Manufacturers SA Freightliner Henred Fruehauf Hino South Africa Hyundai Automotive South Africa Irizar Southern Africa

Isuzu Truck South Africa Iveco South Africa JMG & Sons Jost South Africa Kia Motors South Africa MAN Truck and Bus (SA) Marcopolo South Africa MCV South Africa De Haans Body Works Mercedes-Benz South Africa

Future Trucking & Logistics / October 2013

Mitsubishi FUSO Powerstar SA Truck Bodies Scania South Africa Serco Industries TATA Motors TFM Holdings VDL Bus & Coach South Africa Volkswagen Commercial Vehicles Western Star

NEWS >>

Iveco’s Glenesk Dealership Launch

Bob Jones, Management Consultant ELT Commercials

Tim Quinlan, Management Consultant ELT Commercials

s Iveco continues to fight for a share of the local market which reflects the inherent quality of its trucks, under the straight-talking leadership of new Managing Director Bob Lowden, the official opening ceremony of a new Iveco dealership in Johannesburg South’s Glenesk suburb in August brought some sparkle to the brand. Technically the contract for the Iveco ELT Commercials dealership was signed in August 2012, and it was a phased launch – trading since September 2012, with the parts warehouse opening in February 2013 and the workshop opening three months ago. The function this August celebrated its official launch, attended by Iveco brand representatives, ELT Commercials customers and the media. “We have a plan to increase the volume of Iveco dealers slightly, but we have a major plan to renew the quality of the network,” said Lowden, speaking in a characteristically frank manner at the event. “We are still looking for quality entrepreneurs in South Africa: I’m happy for anybody who is serious about being an Iveco dealer to come and talk to me.” He was quick to point out, however, that this was not about getting what he termed ‘bums in seats’. “We have a proper dealer plan, with a proper footprint, that is sustainable. If we do the market shares that

Future Trucking & Logistics / October 2013

Bob Lowden, Managing Director Iveco SA

we think we’re going to, there will be a long-term business future for the dealer. We promise that we’ll be there in ten year’s time, and that’s what it’s all about,” Lowden stressed. The Iveco dealership is in fact an addition on ELT Commercial’s super-link friendly 38 000m2 premises, on which they are already operating an International Trucks dealership. The second Bob at the event, Bob Jones – former head of Navistar International Trucks Southern Africa, and now a management consultant for ELT Commercials – was at pains at the launch to emphasise that while the arrangement was multi-franchise, it had no impact on the level of service customers would receive from Iveco-trained technicians and staff. “In certain instances, in certain markets, multifranchising makes a lot of business sense. Multifranchising done in the right way, with the right rules, transparency and differentiation between the products, does work,” said Jones. “We are committed to Iveco: we really do believe that we’re on the right road, with the right partners.” The Iveco ELT Commercials dealership boasts its separate workshop with five bays, as well as a brandnew parts warehouse currently housing in excess of R2 million worth of Iveco inventory.

CARBON TAX >>

Taxing Transport There remains much uncertainty around the question of carbon taxation internationally, and its imminent implementation in South Africa in particular. Chris Reilly unpacks this thorny issue for the transport sector

Robbie Louw and Harmke Immink of Promethium Carbon

he South African government has confirmed that a carbon tax will be phased in from January 1, 2015, in an effort to mitigate the effects of climate change and encourage energy efficiency measures. However, as a developing country categorised as a non-Annex 1 country under the Kyoto Protocol, South Africa does not yet face a binding target for emissions reductions. Nevertheless, the government made a voluntary commitment to curbing emissions of greenhouse gas emissions (GHG) by 34% by 2020 and 42% by 2025 below the country’s current business-as-usual (BAU) emissions trajectory.

carbon mitigation legislation has been adopted. This has led to the formation of carbon trading markets in certain regions around the world, despite the lack of progress and urgency within the United Nations Framework Convention on Climate Change (UNFCCC). With UNFCCC progress effectively stalled until 2020, the drive towards global carbon pricing rests with local market-based emission trading schemes (ETS), carbon offsets, new market mechanisms (NMMs) and non-market mechanisms such as carbon tax, observed Robbie Louw of advisory firm Promethium Carbon at a press briefing recently.

The government published a 91-page Carbon Tax Policy Paper in 2010, updated in May 2013, which maps out a strategy for the gradual reduction of GHG or carbon dioxide equivalents (CO2-eq) in South Africa, providing sufficient flexibility to meet the country’s economic development needs, while also addressing environmental problems, such as climate change.

The South African government’s Carbon Tax Policy Paper proposes the carbon tax be priced at R120 per ton of Carbon or Carbon equivalent from 1 January 2015. According to Louw, this rate may possibly drop to R100 per ton.

Despite the lack of international agreement on a harmonised carbon price to date, a variety of Emissions Trading Schemes and Carbon Offset mechanisms have arisen in many countries where

According to statistics published in the Policy Paper, the transport sector only contributed about 9% of the total annual emissions in South Africa of 564 million tons (2012); industry and mining contributed

Future Trucking & Logistics / October 2013

TRANSPORT’S CONTRIBUTION

15%; power generation (Eskom) also 15% as did the commercial and public building sector at 15%. The Policy Paper also makes provision for tax-free thresholds of up to 60% for various sectors such as agriculture and other carbon-intensive sectors and businesses, substantially lowering effective carbon tax rates. However the transport sector enjoys no such rebates.

“... the transport sector only contributed about 9% of the total annual emissions in South Africa of 564 million tons ...” Sector-specific exclusions in carbon schemes can address industry and sector concerns while sector-specific inclusions in carbon pricing, such as international aviation, can produce market distortions. Countries like Norway and South Africa tend to rely on tax exemption to protect trade-exposed sectors, but draw criticism for reducing the utility of pricing carbon by doing so. Questions are being asked about how the Department of Environmental Affairs will calculate emissions for each sector – for example transport – and how it will handle disputes arising from this, since the Carbon Tax seems to be merely a tax on fuel inputs based on various emissions factors.

However, details are limited to defining the origins of emissions in the sector, basically stating that transport fuel emissions result from crude oil and coal gasification refining processes as well as the use of fuel products such as petrol, diesel and liquefied petroleum gas to power passenger vehicles, light commercial vehicles and heavy-duty trucks and buses. It states that transport sector emission from road transport, civil aviation and railways are responsible for about 9% of the country’s total GHG emissions, with road transport accounting for a major portion – no more specific than that, and that the level of emissions can be quantified using the aforementioned emissions factors. An interesting distinction is highlighted. Currently, petrol and diesel used in road transport is subject to several taxes: a general fuel levy, the Road Accident Fund levy, and customs and excise duty. Aviation fuels used on both domestic and international flights are not subject to the suite of fuel taxes applied to road transport in South Africa. The Policy Paper elaborates on a Transport Flagship Programme facilitated by the Department of Transport to enhance public transport in five metros and ten small cities, and the planned rail recapitalisation programme. Some of the details provided in the public transport strategy are unnervingly vague: “…alternative modes of transport, and support of integrated networks in rural areas using non-motorised and periodic scheduled services.”

The government’s Carbon Tax Policy Paper claims the DEA has undertaken extensive consultation to arrive at a stated preference for a fuel input tax, but it does not specify where and how such consultation has taken place. It also states that emissions factors and procedures are available to quantify Carbon and CO2-eq emissions with a relatively high level of accuracy for different processes and sectors. No specifics or further details are given, but the Policy Paper says the DEA will approve the appropriate emissions factors and procedures in line with international information published by the Intergovernmental Panel on Climate Change (IPCC). POLICY PAPER The Policy Paper contains a section focusing on emissions from the various sectors; this is the only area where some detail is provided on the Transport Sector, entitled ‘Non stationary sources of emissions – Transport’.

In a statement issued on 5 August, South African Chamber of Commerce and Industry (SACCI) CEO Neren Rau said the introduction of carbon tax could have a severe impact on the economy and job creation in South Africa. “We support measures to reduce carbon emissions in principle, so long as those measures remain tax neutral,” he added.

October 2013 / Future Trucking & Logistics

SPECIAL FOCUS >>

Harley’s Mobile Showroom The Harley-Davidson brand is renowned for its iconic motorcycles, not trucks. When avid biker Johann van Tonder came across the ‘Legend on Tour’ truck, he just had to investigate

here it stood. Loud and proud, drawing all around it like moths to a flame. It’s a cacophony of audiovisual and bike sounds, combined with bright colours, flags and laughter. One might think such a truck would be out of place at an event like the Knysna Oyster Festival, but these family and lifestyle events are targeted specifically. If you want to grow your market share you have to think outside of the box and Harley-Davidson did just that: they decided to take the brand to the people. Executing the brief was not as simple. Take all the newest Harleys with helmets and riding gear and visit all the various lifestyle shows and festivals around the country. Include areas that are currently not serviced by authorised Harley-Davidson dealerships, to offer all riders and pillions the unique Harley-Davidson experience. It was a tall order. The truck itself must transform into a mobile Harley-Davidson dealer, complete with sound, audiovisuals and even an accessories department. It took some careful planning, but soon the Legend on Tour Truck was born. It took Henred Fruehauf about twelve months to prepare Legend on Tour, only because Harley-

Future Trucking & Logistics / October 2013

Davidson Africa had different requirements from the Harley-Davidson trucks running in the USA and Europe. In the First World with its developed infrastructure and a multitude of Harley-Davidson dealerships, the trucks only have to transport the bikes from town to town and venue to venue. In Africa the truck would have to be autonomous and completely self sufficient. Different concepts were tried and retried. The process was not rushed as the Legend on Tour truck had to be just right, ticking all the boxes by the time it hit the road. It’s a specialist vehicle, and apart from transporting ten of the newest models, other functions were smartly integrated into the mobile dealership concept. The side of the truck opens up to reveal a space that can be used for anything from a lounge area to a stage. Flat-screen television sets line the back wall and a powerful sound system plays the kind of music that gets your motor running. Visitors have the opportunity to test ride the newest Harley-Davidson motorcycles with helmets and riding jackets provided. Non-riding enthusiasts are also catered for with a rigged static bike where prospective

to festivals and lifestyle events and offer free Harley demonstration rides. The aim is to provide 1 500 demo rides per year and they are well on their way to achieving that goal. Luis leads the demo group rides himself, each usually lasting about twenty minutes, along the most scenic routes he can find. It’s a short enough ride to make multiple out-rides possible on any given day, while it’s long enough for any prospective client to really enjoy the bike. This year for the first time Legend on Tour branched out to neighbouring Namibia when it attended an event in Windhoek. The truck is owned by HarleyDavidson Africa and will extend its travels as the brand expands into Africa. The first cross border run came with its own set of challenges. Transporting ten new bikes into a country calls for permits and other necessary paperwork, requirements that will differ from country to country and maybe even border-post to border-post. It’s a challenge Luis and his team relish, however. After five years on the road in South Africa they are ready to branch out and ride over new horizons, be it in the truck or on a Harley. Never without a load, always surrounded by smiles. Is this the best trucking job in the world? It just might be.

riders can experience the sound, feel and vibrations of a Harley-Davidson motorcycle without the worry of balance, lack of experience or even lack of a motorcycle license. People lining up for demo outrides in front of the stage can see audiovisuals on screen display riding and lifestyle scenes while they wait. The rear of the truck features a Fit Shop complete with a Fat Boy motorcycle. An array of different handle bars and seats can be fitted to the motorcycle on the spot to ensure a perfect fit to the rider involved. The truck really does offer everything the brief called for and more. EXPLORING NEW FRONTIERS When the driver of the truck, Luis de Silva, walked into a Harley-Davidson shop to buy his first Harley he thought he was fulfilling a life-long dream. Never in his wildest dreams could he have known what that decision would lead to. Not only would he one day be working for this iconic brand, he’d have all the newest Harley-Davidson models at his disposal every day. How’s that for getting more than you bargained for? Luis and his team of three are responsible for the transport and set-up of the Legend on Tour Truck and it’s a full time job. They travel all over South Africa

October 2013 / Future Trucking & Logistics

SPECIAL FOCUS >>

Toyotaâ&#x20AC;&#x2122;s Race Support

Gert Smit and Attie Joubert

Toyota Motorsport relies on a brawny Hino 6x4 truck rig to get its rally and offroad racing cars to events around the country. Chris Reilly met the truck and its crew in the service park at the recent Ford Dealer rally in Pretoria

acing under the Toyota Motorsport South Africa banner is a massive collaboration between many organisations and many people. The company officially competes in the South African National Rally Championship with three high-tech Yaris S2000 4WD rally cars, and in the Donaldson Cross Country (offroad) Championship with two equally high-tech Hilux 4x4 Dakar spec V8-powered double cab bakkies. All the cars are backed by a phalanx of sponsors including Castrol and Imperial Toyota, and all are built, prepared and run by team principal Glyn Hall and his crew. Hall is renowned for his own racing successes, and also building cars which have won numerous local and international championship podiums and victories. Paramount among these is the unforgettable 2nd place in the 2012 Dakar Rally by Giniel De Villiers in a V8 Hilux. MAN BEHIND THE WHEEL Getting the freshly prepared racing machines, along with all the equipment, spare parts, tools and other paraphernalia to the many rally and offroad events held around the country, is Attie Joubertâ&#x20AC;&#x2122;s responsibility. The 36 year-old Pretorian is the man behind the wheel of the Hino 700 Series 2848 6x4 tractor, which lugs a fully loaded, custom-made 12-metre, twin-axle box trailer all over southern Africa, from Cape Town to Windhoek. Attie has had his PDP since the age of 18, and has

Future Trucking & Logistics / October 2013

worked for Toyota for three years. He was logistics manager on Toyota’s first trip to the South American Dakar rally in 2012, and a support truck driver on the epic 2013 Dakar. “We’ve just come back from a week in Namibia testing Giniel’s new Dakar Hilux in the sand,” says Attie, referring to his ‘navigator’ Gert Smit, who accompanies him on every event. “That was a 4 500km trip there and back.” Attie got the Hino in October last year with 160km on the odometer, and already it’s approaching 19 000km in 10 months, a paltry distance in trucking terms. With its intercooled 12,9-litre straight-six turbodiesel, the Hino 700 pumps out a credible 353kW at 1 800 rpm, and a hefty 2 157Nm at only 1 100 rpm. Its 16-speed ZF automated manual transmission is geared to give 120km/h if needed, although its most efficient cruising speed is 85km/h. In addition to the standard steel leaf spring suspension and drum brakes with ABS all round, the cab and driver’s seat is also air cushioned for long distance comfort. “It’s very comfortable; we’ve got aircon, power steering, power windows, a radio CD player, and two sleeper bunks. The only thing we need is Dstv,” quips Attie. “There are two side fuel tanks; one holds 450 litres and the other 390 litres, and also two 1 000 litre water tanks behind the cab.”

October 2013 / Future Trucking & Logistics

SPECIAL FOCUS >>

Giniel De Villiers and Glyn Hall

PRECIOUS CARGO, TOUGH TRAILER While the Hino provides the grunt, it’s the big 12-metre box trailer custom-made by MBC that carries the guts of the whole operation. The specially designed load area has two waist-high steel counters running two-thirds along each side of the trailer to support either two rally cars or two offroad bakkies. Under the counters are storage bins for tools and tool boxes, and the hundreds of spare parts, components, lubricants and miscellanea that may be needed during a race. Two metres above the counters are racks holding up to 40 spare wheels fitted with fresh Dunlop Dry Gravel rally tyres. “The trailer holds everything we need to rebuild a car or engine, except the chassis and engine block,” adds race engineer Wesley Greeff. The rear lift door of the trailer is used to lower each race car to the ground, and also as a loading platform for heavier gear stored inside like fuel drums. The front end of the trailer is a living area with a hotplate unit, fridge and sleep bunks, where the crew can cook and relax out of the sun or rain. Along the outside flanks of the trailer are even more storage bins for bigger, bulkier gear like an air compressor, generator, TIG and arc welders, trolley jacks, chassis support stands, shade gazebos and dozens of other items. “The whole rig weighs about 34 tons with the two Yaris rally cars loaded up, and 37 tons with the two Hilux offroad racers onboard,” says Attie. PLENTY OF ACTION AHEAD Besides driving the Toyota–laden Hino 700 all over the country, Attie is also the ‘front suspension guy’ on Leeroy Poulter’s Yaris rally car, and the ‘rear suspension guy’ on Anthony Taylor’s offroad racing Hilux. Taylor and his navigator Dennis Murphy recently won the Sun City 400 offroad event, their third win in a row, and now lead the Donaldson Cross Country championship. There’s still plenty of action ahead for Attie and the Toyota Motorsport team, with several rounds of the rally and offroad championships still to come. And then it’s off to South America in December for the 2014 Dakar, and who knows what amazing stories will come from that adventure?

Future Trucking & Logistics / October 2013

Taking the Limelight

As motorsport followers are aware, Hino trucks aren’t just well-suited to race support roles such as those described here. Racing trucks make for an entertaining spectacle around tracks like the famous Donington Raceway in the UK, and can hold their own ‘out in the wild’ against much lighter and more nimble race vehicles. Hino’s Team Sugawara proved this admirably recently in the annual 3 579km Rally Mongolia off-road race. The Hino 500-Series truck – piloted by Teruhito Sugawara and Hiroyuki Sugiura – won the truck category, and finished fifth overall out of a field of 61 motorcycles and cars. What makes this victory even more remarkable is that the four vehicles which finished ahead of it were two KTM motorcycles, a Toyota FJ Cruiser and a Pajero Evo; and only 36 vehicles succeeded in completing the gruelling rally at all. While at least part of the Hino’s success can be attributed to significant changes to its suspension and braking systems and a handy 10% boost in its engine power, it also helped that Teruhito had previously contested the Dakar Rally 15 times with no fewer than 13 top-ten finishes. Fortunate, considering that Rally Mongolia is an important part of the Hino team’s development programme ahead of the 2014 Dakar.

The Million Mile Club* Yes, it’s technically a million kilometres, but we’ll take the poetic licence

mid the stress of financial hurdles and making deliveries on time, the role of the heavy metal which keeps South Africa’s businesses on track can be overlooked. As they continue to prove themselves year after year, these trucks become a crucial part of the family while crossing an important milestone: the million kilometre mark on their odometers. This is our tribute to those workhorses and silent business partners. IN THE SPOTLIGHT: JAN VAN NIEKERK, MOTORVIA NATAL Q: What is the latest odometer reading of your truck? 1 110 768km Q: What make and model is it?

Q: How would you rate your truck’s reliability? Its engine reliability is excellent, and the gearbox and diff have been good (although we had a problem at about 700 000km) Q: Now that the truck has run over 1 million km are you treating it differently in any way, or will you be retiring or selling it soon? We will remove it from cross-border routes, using it more on the Durban-Gauteng route. How many trucks do you have at present in your fleet, and have any others crossed or are close to crossing the million km mark? We have a total fleet of 285 trucks, with several Hino 700’s already over the one million km mark.

Hino 700 46-410 Q: Where and when did you buy it? It is a Year Model 2007 truck that we purchased from McCarthy Hino Pinetown. Q: How would you describe its most common loads and routes it runs? It carries an average load of nine vehicles from Durban to Gauteng, Botswana and Namibia. Q: What have you done to ensure that the truck has kept running as long as it has? We always service it on time, and only use genuine Hino service parts and approved lubricants.

Editor’s no

Fred Muller, GM Motorvia Natal (left) with Jan van Niekerk, Senior Manager Motorvia Natal

te joined the m : If your truck has illion mile c lub as well, please let u s know by e -mailin leon@thef uture.co.za g

October 2013 / Future Trucking & Logistics

COVER STORY >>

f o e Ris hoenix P e h t

Iveco’s back-to-basics approach to rejuvenating the brand’s presence in South Africa is culminating in a full-scale exhibition at this October’s Johannesburg International Motor Show. Leon Schnell spoke to the change’s driving force

hen Bob Lowden arrived in South Africa last year from Iveco in the United Kingdom, appointed to the role of Managing Director for the Southern African region, it would be more than fair to say that he was presented with a monumental challenge. Bob didn’t need the figures showing Iveco’s dismal sales performance locally (around 15th of 16 brands). Simply conducting impromptu market research by studying the unending stream of trucks driving past his office overlooking the N1 highway told him all he needed to know: Ivecos were few and far between.

Future Trucking & Logistics / October 2013

“If you look at Iveco’s extra heavy performance globally, and particularly in Europe, we’re number one in a couple of markets and we tend to be at least in the top five,” Bob explains, describing his disbelief at what he was seeing. “That’s really where we deserve to be with our current range: number fifteen told me at the time that something was wrong with either the product, the network, or the people.” As Bob came to discover, it was a mixture of all of the above, and he describes the process of reorienting Iveco South Africa as ‘starting from scratch’. So much

so, in fact, that when he presented his strategy to Iveco’s global head office it was in the format of a five year action plan. He wasn’t deterred, however. Bob describes himself as a ‘fairly hard task-master’, and his unique background encompasses not only a heritage of trucking – his father operated his own haulage company – but also diverse experience within the sales organisation. An engineer by trade, Bob also has a business and economics degree from Manchester University.

With considerable experience working in the aftersales sector in service and parts, Bob spent several years in the UK as Franchise Director, and ran the largest dealer in the country. Clearly then his talents ran deep enough to untangle the Gordian knot that Iveco’s South African operation had become, and over the past year that’s exactly what he’s done. As an overview of his substantial accomplishments locally while as Bob terms it ‘putting my house in order’. [See the accompanying check-list.]

October 2013 / Future Trucking & Logistics

COVER STORY >>

NEW JIMS, NEW IVECO There can be no doubt that the Johannesburg International Motor Show (JIMS) has become one of the showcase events for the South African motor industry, and Bob is frank in terms of the significant investment Iveco has pumped into their highprofile stand at the 2013 show.

Iveco SA MD Bob Lowden

Bob’s To-Do List 1. Establish a Key Fleet programme “We didn’t have a demo programme, we weren’t really present at tenders – it’s fair to say we weren’t even on the radar of what I’d call the top 100 Blue Chip fleets in South Africa.” 2. Establish a Used Division “We didn’t have any means of providing buy-backs, trade-ins or any of the normal used business.” 3. Secure End-User Finance “We have an alliance now with Standard Bank, and end-user financing is another fundamental in the sale of extra heavies.” 4. Improve After-Sales and Parts Reputation “There’s an old saying in the UK that sales sell the first vehicle and aftersales sell the second, third and fourth. Honestly, that adage isn’t true anymore: if you have a bad reputation for service you won’t even sell the first vehicle.” 5. Improve The Dealer Network “When I arrived we didn’t have the best dealer network in terms of its footprint from a sales point of view, nor service. There’s a lot of work which is ongoing to upgrade the dealer network, both in terms of volume and capacity.” 6. Sell Trucks Into Their Mission “We had been selling almost any product to any customer. If you don’t have a product for a particular niche in the market, I’m a firm believer that you should be brave enough to walk away.”

Future Trucking & Logistics / October 2013

“In hindsight we probably made a mistake as a company not participating in 2011. Many customers put two and two together – the fact that we weren’t at JIMS, combined with a poor declining sales performance – and reached the conclusion that we must be pulling out of the country,” he reflects. “I made the decision that for 2013 we were going to be present at JIMS, to repair the negative impact that not being there in 2011 had on the brand.” Fortunately for Bob, the timing couldn’t be better. He will have no fewer than three new products on the stand, one which will be a linchpin for Iveco’s ongoing recovery in South Africa: the new Iveco Stralis Hi-Way, European Truck of the Year 2013. “We lag the local competition in the Extra Heavy market, and I’m hoping that our new Hi-Way model will give us the impetus to get into some of the big fleets that we’ve been chasing,” says Bob. “The new model has come at just the right time, because it offers many benefits over the old model in terms of safety, driver comfort and fuel consumption.”

Iveco Stralis Hi-Way

‘Iveco Trakker

Iveco Daily range

With the intention being to cause a stir, it’s appropriate that Iveco will be launching the new Stralis in its premium 480 and 500 guise, while the 430 ‘fleet’ version will be left as the current version of Stralis, to be launched in South Africa in 2014. Also set to grace the Iveco stand at JIMS will be the off-road sister of the Hi-Way, the Trakker Hi-Land, replacing the current Trakker; and a Euro 4 derivative of the highly successful Daily. Even better news is that the fresh product introductions won’t end there. “We’ve got new products on the drawing board that will be progressively released from JIMS right throughout 2014,” Bob reveals, adding that these include several models to be announced in the first quarter of 2014 which have been designed specifically for the South African market. IVECO’S LOCAL FUTURE The current star in Iveco’s stable is undoubtedly the versatile Daily van, which enjoys Iveco’s strongest South African market positioning at third in a highly competitive segment. Bob attributes its success to its robust design, built on a truck chassis, unlike competitors’ monocoque construction. “Honestly I’m not happy with the performance of any of our vehicles,” Bob says. “Euro Cargo is a market leader in many markets in Europe, but again over here when I arrived it was languishing. My hope is that we get to the head of the European-type of product, which Euro Cargo is.”

Another ace up Bob’s sleeve is the joint-venture Iveco has struck with the Larimar Group: an independent Iveco assembly plant in Rosslyn, with a start of production scheduled for June 2014. Not only will this plant bring with it the intangible benefit of selling trucks which are ‘made in South Africa’ – as the entire Iveco line-up excluding the Daily vans will be assembled there – but it will cut out import duties and include locally-produced components. With the basics now in place, Iveco Southern Africa is in a position to start capitalising on the ongoing market growth. Bob notes projections for the commercial market which will see growth to the 40 000 threshold, and says that he is optimistic about accessing a share of that. Another intriguing highlight to look out for in 2014 is the possible introduction of the Iveco Daily Electric or Natural Power (i.e. compressed natural gas) vans. Both are already available to the brand in right-hand drive, and are currently sold within the UK. “If we were number four or five in the volume rankings, I’d probably be pushing alternative fuels harder than we are. To be frank, there’s a lot of work that is still ongoing that needs to be done just to sell our mainstream products,” says Bob. “I’m focusing on putting my house in order at Iveco and getting the network resourced and up to speed. You’ll probably start to see those products in 2014.”

October 2013 / Future Trucking & Logistics

INSIGHT >> The Council for Scientific and Industrial Research (CSIR) has a track record spanning more than 60 years in research, development and innovation. The CSIR was constituted by an Act of Parliament in 1945 as a science council. The organisation’s mandate is to increase the competitiveness of industry, while simultaneously improving the quality of life of the people of South Africa. This article deals with research conducted within the appropriate CSIR operating unit, namely CSIR Built Environment.

Without Fear or Favour As the scientific editor of the past two State of LogisticsTM surveys, Nadia Viljoen is intimately acquainted with this landmark annual publication. Here she shares her frank recollections in her own words, on the brink of moving on from the CSIR

he State of LogisticsTM survey for South Africa was envisioned more than nine years ago by Hans Ittmann (then from the CSIR Centre for Logistics and Decision Support) as an initiative to address a critical gap in logisticsrelated data and research in South Africa. The goal was to produce research that would give private industry and government agencies alike a handle on national logistics costs and trends. What the State of LogisticsTM survey has become is so much more than just a technical document: it is, in fact, a platform for collaboration and debate. At its heart, the State of LogisticsTM has always been a collaborative effort, in terms of research, funding and dissemination. Since its inception, Professor Jan Havenga and later also Zane Simpson from Stellenbosch University have provided the annual results of our national freight flows and logistics costs – research that has become known as the core of the publication. Author: Nadia M. Viljoen (Scientific editor: 8th and 9th State of LogisticsTM survey for South Africa, Transport Systems and Operations, CSIR)

IMPERIAL Logistics has been a key partner since the 4th edition, providing generous sponsorships, applied research and valuable links to the freight transport and logistics industry. The CSIR, as custodian of the publication, has sourced research from experts, provided topical research inputs and taken the reigns in the annual production and dissemination of the survey results. Apart from these three main players, many other organisations have partnered with the State of LogisticsTM over the years, notably the University of Pretoria, the University of Johannesburg, the Department of Transport and research partners from abroad. The 9th edition, coincidentally, had nine partnering organisations contributing to the research content. But if Collaborator is the peace-loving side of the survey’s personality, Instigator is its (evil?) twin. A researcher should uphold, as a matter of integrity, professional independence when analysing a matter, especially a matter that affects national well-being! This could be interpreted as the professional license to call a spade a spade – professional license which could make for some sticky confrontations. While outright confrontation is never the intention, sparking debate and discussion are, and this has become one of the unexpected yet invaluable contributions of the State of LogisticsTM to South Africa’s logistics industry.

Future Trucking & Logistics / October 2013

A delicate balance of hard-hitting results and shameless expert opinion with context and diplomacy has been required to reflect the truth without irreparably offending the decision-makers and action-takers. Personally, I believe this dual personality of the State of LogisticsTM survey is directly attributable to the passionate personalities that have cultivated it over the years: Hans Ittmann, Jan Havenga, Isabel Meyer, Mario Marais, Ilse Hobbs, Zane Simpson, David King, Cobus Rossouw and Abrie de Swart. THE GLOBAL CUTTING EDGE That the survey is at least known, if not renowned, in the South African logistics industry is a fact. But it was not until I was asked to “present the work of my South African colleagues” to the inaugural class of the Master in Supply Chain Engineering degree at the Georgia Institute of Technology in 2010 that I realised how far the news had travelled. Explaining to a group of bright young graduates in a sweltering classroom in Panama that South Africa is one of only three countries globally that consistently produces a statistics-based measure of its national logistics costs, it dawned on me what a world-class publication it really is. Little did I know I would get to join in the fun of the publication process two years later. Indeed the State of LogisticsTM, the research of Stellenbosch University in particular, has caught the interest of the World Bank and over the past four years South African researchers have been collaborating with international experts on the topic of calculating national logistics costs. As a result, the underlying models that calculate national freight flow and

South Africa’s logistics costs components and GDP comparison

logistics costs have been under constant refinement to stay on par with international benchmarks. One criticism levelled against the State of LogisticsTM over the years has been that the survey reports data of two calendar years ago – for example in the first half of 2012 the results of the 2010 calendar year were presented. The reason for this is that much of the data required by the models for a certain year only become available towards the end of the first half of the next calendar year, thus producing results in time for the launch was an impossible feat. Nonetheless, industry leaders felt that the research would be more relevant if it were more current. Discussions between the researchers and industry proffered the following solution: Results up until two calendar years ago would be calculated and reported as per usual, but results of the immediately preceding calendar year would be estimated combining forecasted freight flows and actual data relating to the logistics cost drivers. In 2013 the researchers thus effectively closed the time-lag between data and publication.

Presenters of the 9th State of LogisticsTM launch. From left: Prof. Jan Havenga, Dr. Cornelius Ruiters, Nadia Viljoen, Cobus Rossouw.

The winds of change are blowing again for the State of LogisticsTM and the 10th edition will look and feel different to the 9th. Exciting developments are afoot in the researcher camps with constant refinements to existing models and the simultaneous development of new, state-of-the-art models. Here’s to the next 10 years of research excellence in South African freight transport and logistics. October 2013 / Future Trucking & Logistics

RESEARCH >>

The Business Case for Relationships When a researcher recently presented the results of a global study into the intangible side of the logistics industry, its findings and his frank opinions were well worth taking note of

peaking about the undercutting of costs by transporters along the Johannesburg to Durban route, Kevin O’Marah’s warning turned out to be prophetic: “It’s not just bad for the truckers who make no margin, but it’s bad for shippers who have an unreliable system. People start cutting maintenance and then trucks break down, people start cutting corners and accidents happen.” O’Marah is the Head of Research at SCM World, a global community of senior supply chain professionals, as well as a Senior Research Fellow at Stanford University. He was in Johannesburg presenting the results of a global study by SCM World conducted in February this year, with the study advocating collaborative relationships between companies and their logistics providers. Researchers asked respondents what were the best means of managing their service providers, and how collaborative relationships could be established and maintained. Over 400 responses were received

Future Trucking & Logistics / October 2013

from senior international executives, predominantly working in a supply chain capacity. Contracts with Service Level Agreements (SLAs) were the most favoured method of engaging with service providers, narrowly trumping performance tracking against Key Performance Indicators. Respondents listed the number one obstacle to a successful collaborative relationship on the provider side as a short-term approach, followed by a lack of resources and poor communication. Turning the spotlight back onto the respondents, SCM World’s study categorised respondents into two categories. ‘Group A’ respondents were defined as those who utilised ‘softer’ governance, workshop and relationship KPIs effectively; while those in ‘Group B’ preferred to rely on Requests for Proposals (RFPs), SLAs and performance KPIs only. Comparing how these two groups rated their satisfaction with logistics was revealing: those in Group A were

twice as likely to rate their engagement with logistics providers as obtaining ‘extremely successful business outcomes’, while they were also 10% happier in general than their more contractually-minded ‘Group B’ counterparts.

and do what they’re doing – which is peel off the bottom providers and focus on the big ones – then the little ones will get knocked out of business and sell to the bigger guys,” he explained. According to O’Marah, small transport operators should rather find means of embedding themselves within customers of the right size.

“What we find is that if you’re willing to put in the time and are structured about how you manage these relationships, you get a much better outcome,” said O’Marah. Accompanying this story are the formal good practises for collaboration which accompanied the study’s results.

“If you’re a little guy and at the tail of a supply base for a large corporate, they’re going to get rid of you soon – so plan on that. Be really excellent at something you’re just good at – e.g. it’s your region – and make it so that they can’t get rid of you,” he urged.

A TOUGH WAKEUP

“That way when somebody tries to come and consolidate you, which is likely, it’ll be Imperial and they’ll pay a premium, instead of you just being a bunch of trucks with a lane and they’ll say, ‘You’re not that special, because what you do I can do.’”

As uplifting as O’Marah’s message was, presenting a solid business case for more in-depth human interaction in business, he tempered it with a realistic caution for small transport operators. “The natural trend is towards consolidation in all sectors, so if your buyers get bigger and more powerful SCM WORLD’S COLLABORATION GOOD PRACTISES

SET UP THE RELATIONSHIP ON THE RIGHT FOOTING Be diligent about assessing factors such as business alignment, company management, processes and IT systems during the sourcing phase.

Encourage existing providers or potential providers to challenge specifications, provide feedback and help to design KPIs.

ENGAGE IN AN OPEN AND ONGOING DIALOGUE Communicate expectations and requirements clearly upfront and ensure these are understood. Develop an environment in which people are not afraid to raise issues/problems (on either side).

Award longer-term contracts that give providers the confidence to invest in their capabilities.

Help service providers to understand your culture, processes and ways of working.

BUILD PERSONAL RELATIONSHIPS BETWEEN ACCOUNT MANAGERS

Share forecast data and other business information in a way that enables suppliers to serve you better.

Empower your key account and supplier/contract managers as the key conduits between the two companies.

Nurture a relationship of honesty, information sharing and respect between these individuals. LOOK FOR MUTUALLY BENEFICIAL RESULTS Share cost savings, revenue gains and other benefits fairly between each party. Don’t automatically default to competitive sourcing (RFPs, RFQs, e-auctions, etc) when a contract ends if the service provider is performing well.

FACILITATE INTERACTION AND A ‘ONE TEAM’ MINDSET Complement regular governance meetings with semi-annual or annual workshops focused on strategy/innovation. Co-locate staff where appropriate to encourage open communication and joint working.

Set shared objectives/KPIs and respect meeting dates, etc, to show commitment.

October 2013 / Future Trucking & Logistics

ADVERTORIAL >>

Isuzu Trucks’ National Sales Manager, Anton du Plessis

Isuzu’s Smoother Trucking The Automated Manual Transmission (AMT) might sound like an oxymoron, but in practise it is an innovation which is single-handedly driving growth for Isuzu Trucks locally. Leon Schnell took a closer look

o call the AMT a ‘new’ invention is relative: Isuzu Truck South Africa first introduced the AMT into the country in 2008, although by that stage the technology was already in its second generation globally. Presently Isuzu Trucks enjoys a significant advantage in the market, not only considering the AMT’s unique benefits, but also because competitor brands lack a similar automated transmission across the same broad range of models. First made available in Isuzu’s range of N-Series trucks (Medium Commercials up to 8,5 tons), AMT arrived in the F-Series range (Heavy Commercials up to 16,5 tons) in 2010. To call Isuzu Trucks’ National Sales Manager, Anton du Plessis, enthusiastic about AMT would be an understatement. “The future of Isuzu Trucks going forward is in AMT,” he exclaims. But what exactly is an AMT, if it isn’t a manual transmission and yet not a conventional automatic – with its torque converter and planetary gears? “The AMT literally operates identically to a manual gearbox, but the shifting is done electronically,” says Tiny Daya, Isuzu Trucks’ Product and Application Manager. In other words, the gearbox in an AMT-equipped truck is exactly the same as the one found within a manual derivative. What’s missing is the clutch pedal. Rather, power is transferred through a fluid coupling, and the shifting of gears is managed through a small control unit near the gearbox.

Future Trucking & Logistics / October 2013

“The driver cannot select the wrong gear: AMT is driver proof, so there’s no chance of the driver damaging the transmission,” assures Anton. Given that operators will frequently complain about the headache of costly clutch replacements, AMT’s clutchless operation means that there is simply no clutch to replace. According to Tiny, this results in significantly lower operating costs: with a lifecycle of around 300 000 kilometres, an AMT transmission reduces costs by as much as R60 000 purely by saving three clutch replacements. This doesn’t mean that an AMT-equipped truck is more difficult to service, however. “The gearbox is serviced once a year for an oil-change, which is the same as any manual gearbox,” explains Tiny. “If for any reason a client needs to remove a gearbox – for an engine replacement for example – they will need to have a dealer reprogram the gearbox values, which is a simple two-minute process.” AUTOMATICALLY BETTER The Isuzu AMT takes engine preservation seriously: the unit will not allow an engine to over-rev, most common when changing down to the wrong gear. “The vehicle will stay in its current gear until the engine revolutions are in a safe range to change down,” says Tiny, noting that this further reduces fuel and maintenance costs. That said, drivers are able to select a Manual mode, where they can choose gears which better suit prevailing road conditions. “You as a driver can see that there’s a steep incline coming up, but the truck

Product and Application Manager, Tiny Daya

doesn’t know that until it gets there,” says Anton. “If you are a fairly good driver, you will anticipate what is coming and will start selecting gears appropriately even before the truck does.” Other benefits regarding the AMT are less immediately obvious, but equally important. Tiny says that clients happy with the transmission have reported that their drivers are less susceptible to fatigue while at the wheel, and AMT-equipped trucks are also in fewer accidents thanks to drivers being able to concentrate more on the road instead of changing gears. AMT is still not a cure-all prescription, however. While it is suitable in most situations, compactors are one application in which it is not advised. “There will always be applications where automatic gearboxes are advised,” says Tiny. “Isuzu Trucks fits in excess of 100 Allison automatic transmissions per year in these applications.”

Micro-sized Enterprises (SMMEs). Where councils previously had a truck driver to accompany artisans to a job, the trend now is towards everybody travelling in a vehicle taking turns driving. As Anton notes, what an AMT excels at is transforming an average driver into a good driver. Isuzu Trucks presently has in the vicinity of 50 truck derivatives listed on its website for purchase in South Africa, and anybody interested in AMT would be highly recommended to visit the Isuzu Trucks stand at the Johannesburg International Motor Show in October. Although Anton won’t let much out of the bag, a hint can be drawn from his following statement: “In the future we’re likely to see a lot more models with AMT in our range, purely because everybody who has bought an AMT has seen the benefit compared to a manual transmission.”

Where AMT is particularly useful is in environments such as Government use, or in Small, Medium and

October 2013 / Future Trucking & Logistics

PERSONALITY >>

Calming the Storm Lauren Burley Copley recently spoke to the Road Freight Association’s ‘little bundle of dynamite’, Magretia Brown-Engelbrecht, about the challenges of dealing with labour unrest

ight years ago, Magretia Brown-Engelbrecht walked into her first executive meeting as the Labour Relations Manager for the Road Freight Association (RFA). When she had to lead 18 men seated around a huge round table, she recalls wondering anxiously what on earth she was doing in this daunting, male-dominated industry. Initially shy at first glance, one soon discovers a feisty, quick-thinking female behind the petite exterior. Male colleagues in the industry developed respect for her no-nonsense approach and willingness to don her verbal fighting gloves in tough negotiations. For her part, Magretia thought she’d ‘just hang around at the RFA for about three years and get some experience’. “Once in the industry, it just became such a part of me, and here I am, eight years later,” she laughs. She admits it took about three years to fully grasp and own the vastness and complexity of her portfolio. Having studied industrial psychology and majoring in labour relations at Potchefstroom University, Magretia has come a long way since her first job representing banking employees at the South African Society of Banking Officials back in 2000. Her idealistic teenage dream – to fight for the underdog by starting a union for waiters while waitressing herself at school – never materialised. Yet she chose to do her honours thesis on the union movement in South Africa. After a stint working for the Solidarity union she was approached by the RFA and tasked with a job of unending scale. The association’s only full time employee in labour relations, Magretia explains that the RFA represents approximately 850 employer members on a national basis at the National Bargaining Council for the Road Freight and Logistics Industry, holding 12 seats – the same number that four labour unions hold on this body. BALANCING ACT The labour issues Magretia deals with are complex and wide ranging – from minimum conditions of service and wages, to organising countrywide training sessions for members regarding new industry agreements, and high level negotiations on industry matters.

Future Trucking & Logistics / October 2013

Representing approximately 60% of the industry’s estimated 119 000 employees, RFA members range from one-man operations to huge freight companies with more than 30 000 employees. These include general freight (fuel tankers, flat bed trucks and dangerous goods loads) as well as the courier sector, furniture removal and cash in transit sectors.

“Dealing with daily conflict means it is almost always an ‘us and them’ situation, reflects Magretia. “It’s not a feel-good job, as conflict is the nature of the beast and you have to learn to manage it and not allow it to affect your personal life.”

Although Magretia now represents employers and gets her mandate from them, she values her previous experience on the other side, representing employees.

Despite not working at the coalface and having to personally deal with the angry protestors who devastated the road freight industry in last year’s strike, Magretia is always acutely aware that everything she does can possibly have some effect on the entire industry.

“I realised early in my career that having insight to both the employer’s and employee’s plight would allow me to be more objective in my approach to dealing with the overall employment relationship,” she remarks. Magretia feels that without collective bargaining and RFA membership, companies would have to negotiate a minefield of labour issues on an individual plant-level basis. The industry has become challenging, with an educated workforce more familiar with their rights when compared to the labour environment only 15 years ago. One of the benefits of collective bargaining is that it creates a level playing field, so that at the very least companies all have to adhere to the same minimum working conditions of service within the industry. With everything based on local labour legislation, Magretia has to have a good legal grasp on labour legislation, know how to interpret agreements that regulate the industry, conduct extensive research and keep tabs on all the intricacies of proposed legislative amendments. Add to that handling hundreds of member queries and attending scores of weekday meetings when she commutes between the RFA’s Johannesburg office and her home in Cape Town. It’s then that you get an inkling of why she jokingly rates the stress level of her job as ‘20 out of 10’. She quickly dispels any notions that her job is fun or easy, but she enjoys its dynamism and challenges.

TOUGH TALKING

During the 2012 strike, for example, Magretia and her RFA negotiation team spent eight gruelling months negotiating with unions, members and high level government officials. These meetings were mostly held at undisclosed venues for security purposes. The strike action resulted in at least two fatalities, and not surprisingly, Magretia describes the process as ‘one of the harshest experiences’ in her career.

“I thought I’d just hang around for about three years and get some experience, but once in the industry it just became such a part of me, and here I am, eight years later.” Of the 30 plus union demands, the parties reached agreement on only five items that had a cost effect for the industry. They eventually signed off on a threeyear agreement in October, the first such long term agreement in the history of the industry. “When the parties signed off, some enviously thought I’d have a three-year holiday. I wish!” laughs Magretia. “My responsibilities definitely don’t start and end with

October 2013 / Future Trucking & Logistics

PERSONALITY >> “I probably have a bit of a control freak mentality with some underlying OCD issues, but if I wasn’t a perfectionist I wouldn’t be good at what I do,’ she asserts. While some people may sometimes interpret her selfassuredness and confidence as arrogance, Magretia makes no excuses for that perception, saying that people in the industry know her and what to expect. “In this business you can’t take things personally and have to be perceived as fighting fit, which can be a bit harsh, because that is not how I am deep down.” Despite asserting that labour is one of the biggest overall challenges facing the road freight industry, Magretia is upbeat about the enormous potential for future growth in moving away from a one-size-fitsall umbrella approach to RFA members, to a more customised member-focused one.

negotiations. I have to ensure that RFA members know and understand the agreement – which is done by organising training sessions countrywide – and keep abreast of the inevitable political influences in the industry and monitor ongoing member issues that may give rise to items to be dealt with in future negotiations.” When asked whether she thinks she is treated differently because she is a white female, Magretia seems taken aback, saying she has ‘honestly never thought about it.’ “Sure, initially I had to learn the hard way how to handle sensitive cultural differences. For example, I learnt that in certain negotiation situations I could not be the main speaker, so I would delegate that topic discussion to a male colleague.” She admits she is very aware of how she dresses and takes great care with her appearance, but insists she is ‘just one of the guys’ in her mostly-male work team. “We need to lighten the mood in the caucus room from time to time and call a spade a spade, but then we get over it.’ Magretia praises the cohesive team that she works with, saying they function well together and can also have a lot of fun. “In what is often an unappreciated job, we support each other and give back-pats when necessary. Without their structure and support I probably wouldn’t last two days,” she says with a smile. HIGH WORKLOAD Magretia says there is never a dull moment in her job, with its heavy workload and enormous responsibilities. She prevents things from falling through the cracks by being very organised and methodical. “I’m also always on call, which can become overwhelming if you don’t have a good support system – both in your work and family life.”

Future Trucking & Logistics / October 2013

“When representing such a diverse group of members you have to consider their vastly differing needs when negotiating, but it is a challenge to persuade all stakeholders to see it that way. For example, from a union point of view, when meeting with lots of employees from different freight sectors, they can’t tell one group they are getting a lower percentage increase while they tell another group their increase will be a higher percentage.” “Going forward, like everyone else, I sometimes question how long I can keep this up. However the personal satisfaction of achieving something valuable after a long stressful process is very tangible. One thing I know for sure, however, is that I could never go back to doing a routine job.” And with a parting smile, Magretia dashes off to another meeting.

JH B/E 10005382JB/

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FINANCE >>

The Tip of the Spear When it comes to truck finance, Mercedes-Benz’s wholly-owned Financial Services division plays a pivotal role in enabling sales of all Daimler products. Leon Schnell spoke to Mike Honiball about empowering entrepreneurs and revealing statistics

ight from the start, you know you’re in a different league when you have successfully built a portfolio worth R19-billion from scratch in only 16 years. Mercedes-Benz Financial Services (MBFS) celebrated its 15th anniversary in South Africa last year, and Vice President Mike Honiball reveals that he’s got his eye on realistically achieving what he describes as a ‘magic number’ – R25-billion – as early as the end of 2014. “Given the lessons learned out of the recession and where we are right now, we’re back in a growth phase,” he describes it modestly. “Our portfolio is growing quite rapidly, especially in the commercial vehicle market.”

MBFS Vice President Mike Honiball

It hasn’t all been smooth sailing, and Honiball is frank about the hard lessons learned during the economic recession – what he refers to as ‘paying school fees’. “The biggest thing that let the industry down at the

Future Trucking & Logistics / October 2013

time was experience. We were putting guys into trucks that had the willingness to work, and they sometimes just lacked the ability to run that business,” he recalls. “When the market turns, they’re not ready: they haven’t packed enough wood away for the winter. They end up being caught when maintenance starts coming in, the diesel price moves and other things happen. The small operators really battled, and it came down to experience: how long have you been in the business, do you understand it and do you know how to plan for bad times?” This doesn’t mean that entrepreneurs should be discouraged, but the requirements for start-up finance are higher than they used to be. Again, Honiball doesn’t attempt to sugar-coat the reality: according to him, whereas the ratio of large fleets to single entrepreneurs receiving financing in the 2007-2008 boom period was around 50/50, it has now moved back to 75/25 and the trend indicates that it could yet decline further to 80/20. “The single biggest barrier is not really getting a contract from a principal – it’s access to finance,” explains Honiball. “We normally look for an upfront commitment in terms of a capital payment into the truck. We used to run on a very low deposit basis – 2,5% deposit was one of our products – and we found that when the entrepreneur doesn’t have the financial commitment into the vehicle he walks away when times are tough.” However, for entrepreneurs who are willing to show MBFS a commitment to success, Honiball says that MBFS shows an equal consideration to the well-being of their businesses. “We really look at the principals to put coverage in the contracts, to ensure that the entrepreneur is not too affected by macro-economic factors,” he assures. “You try and build in cushions so that if there are rate increases or diesel price increases, the operator is protected through those cycles.” CASH NO LONGER KING In the Extra Heavy commercial vehicle segment, MBFS currently dominates the financing arena: Honiball estimates that they enjoy a market share of close to 60% of total sales. In lighter categories favoured by SME-type vocational operators – a segment better understood by traditional banks – MBFS’ market share is closer to 30%, but Honiball has plans to grow their presence to 50%. “Often the deal the customer requests upfront is very different from the deal we do in the end, after we

sit with our experts – the maintenance experts from CharterWay, our Truck Store colleagues, the Finance Services team and the Brand representatives – we generally give the customer a package to suit his business,” he says. “Our key to success is that we bundle our services really well. It’s not about that single transaction: it’s about starting the relationship and growing it. Customers who have been with us for sixteen years make up a sizeable portion of our portfolio: they started out as ten-truck operators, and are now running 300 to 400 trucks.” South African operators are shifting towards Total Cost of Ownership-type products, with a preference for residual-value based products that minimise their monthly cost. MBFS finds that smaller operators lean towards their Contract Purchase deals – a traditional instalment-based sale agreement with a guaranteed future value – while there is a growing appetite amongst larger corporates for an Operating Lease, with its ‘off balance sheet’ pure rental structure appealing to listed entities with balance-sheet sensitivities. The reason financing is gaining traction over outright purchasing with cash is because it locks in costs at the outset, and is fuelled by the appeal of the above residual value options. “If I’m up against a bank on an instalmentsale type agreement, and I can go with a contract-purchase deal, I generally reduce the monthly payment of the truck by around 40 to 45% when compared headto-head with the bank,” Honiball states confidently. With MBFS as the only finance provider currently offering residual values on MercedesBenz trucks, this is a lucrative selling point: 65% of MBFS’ new acquisitions are currently opting for residualvalue based products. “I think the future today is relatively bright. We’re very confident; there’s still a lot of infrastructure spend, there’s a huge demand for tipper business and longhaul,” he concludes. “One of the biggest decision points when buying a truck will be ‘Tell me about your finance’, which is a genuine change in the market. We’re finding a lot of brand successes there, because you run ahead with the finance and not behind as it was in the past: finance must spearhead the sales transaction.” BRING THE STORY TO LIFE! View video extracts from this interview at www.futuretrucking.co.za

October 2013 / Future Trucking & Logistics

ADVERTORIAL >>

Imperial Reinvents for Maximum Client Benefit Imperial Logistics has been reinvented – and the newly consolidated group is in a better position than ever before to offer tailored solutions to boost its customers’ competitiveness. Cobus Rossouw shares the company’s vision

Resolve’s management team: David Long, Johann van der Westhuizen, Heinrich Strauss, Cobus Rossouw and Dean Tebbutt

“

We are perfectly positioned for our next step forward, which is essentially focusing not on what we can do, but what we can do for our clients,” reveals Imperial Logistics’ Chief Integration Officer, Cobus Rossouw. “Imperial Logistics’ diverse and expansive experience and capabilities extend from procurement to brand activation, and include all the logistics services in between. The challenge – which is also our purpose and will shape everything we do going forward – is to improve our clients’ competiveness by customising our experience in outsourced value chain management,” he states.

Future Trucking & Logistics / October 2013

The group has simplified its business and honed in on its capabilities, in order to better meet customers’ requirements. This reinvention has seen similar expertise from across various businesses pulled together into a number of new units to leverage scale and synergies and drive cost-savings and greater efficiency. One such consolidation merged group companies Volition and e-Logics, as well as their associated businesses, into a powerhouse of business process knowledge and technology expertise. “Dubbed Resolve, this new business amalgamates all of our experience and expertise in business process and technology outsourcing, in order to bring clients

a complete solution,” Rossouw elaborates. “Resolve thus represents the integration of two sets of diverse but complementary skills, to provide customers with more holistic, value driven solutions.” These skills are further augmented by managed services capabilities, typically TMS services previously developed in Imperial Distribution. Similarly, Imperial Managed Logistics was established following the consolidation of BROCO and Cargo Africa. “The strength of this business lies in its capacity to move large load volumes - day after day - through its comprehensive and well managed national network of service providers,” Rossouw explains. “The scalability of our network offers clients a well priced, stable and reliable route to market for all their products.” Notably, the reinvention process also saw the formation of Imperial Retail Logistics. Previously known as TFD Network Africa, the company was renamed following the acquisition of RTT Essentials and consolidation of the FMCG contracts of Imperial Distribution. The company focuses on enhancing customers’ logistics and supply chain network capacities and capabilities through its services offering - including warehousing and distribution, logistics and supply chain management, access to and the implementation of leading technology, as well as debtor’s administration and pricing. THREE-DIMENSIONAL GROWTH A growth strategy with three dimensions will ensure that Imperial Logistics continues to offer its customers the best possible solutions. Rossouw elaborates: “Today, Imperial Logistics is the only company that can take your product from manufacturing to the point of purchase. ‘Get me there; sell my product; build my brand’ is the catch phrase that we’ve coined to sum up our total, integrated, end-to-end value proposition.

moving consumer goods (FMCG) and pharmaceutical space. We moved into Africa’s consumer market with the acquisition of CIC Holdings, through which we are now operating within the FMCG industry, with a service offering that includes distributorships, merchandising, warehousing, distribution, debtors’ administration and staffing solutions.” Imperial Logistics entered the pharmaceutical space with the acquisition of RTT Medical, which is one of Africa’s leading pharmaceutical and healthcare supply chain service providers, he adds. It also entered the logistics sector of the fast growing Nigerian FMCG, telecommunications and pharmaceutical industries with the acquisition of 49% of MDS, a leading logistics provider in Nigeria. The recent acquisition of mobile technology firm ForeFront Africa has seen the group further explore the mobile and telecommunications industries and ensure it is well placed to partner with clients in leveraging the potential of mobile commerce in their value chains. Outlining other elements of Imperial Logistics’ strategy, Rossouw notes that the group is playing a growing role in the mining, construction and petrochemicals industries. “Imperial Logistics’ success over more than three decades in business has been built on our people, our real experience and our ability to do more than one thing. Now, with the advantage of a simplified and consolidated organisation, our focus going forward will be on customising our vast experience for the benefit of each one of our customers, in order to most effectively drive their competitiveness. Our goal is to be seen not as the biggest, but as the best for our customers,” Rossouw concludes.

But we aren’t resting on our laurels, and we aim to grow and refine our offering in order to offer our clients the benefits of new services and capabilities. The three dimensions of our growth strategy are new geographies, new industries and new capabilities. We will achieve this by effectively deploying and customising our existing skills and expertise; by partnering with other players where necessary; and through acquisitions,” he explains. Expanding on this, Rossouw says: “New geographies refers primarily to our burgeoning footprint in Africa where our strategy includes assisting clients to benefit from the mass consumerisation of Africa - largely through our integrated value offering in the fast October 2013 / Future Trucking & Logistics

TECHNOLOGY >>

Keeping a Watchful Eye DriveReport MD Louis Swart

With over 80% of vehicle accidents attributable to driver error, DriveReport is focusing on the hands on the steering wheel – both through monitoring and driver training

ne of the problems with basic video recorders installed into trucks’ cabins is that they’re just that: recorders. Transporters are left sifting through a deluge of raw video that is difficult to handle or organise into coherent or meaningful management information. This is according to Louis Swart, Managing Director of Benoni-based DriveReport. Swart founded the company in 2001, initially consisting of a call centre which invited the motoring public to report good and bad driving behaviour. “I’ve always spent a lot of time on the road, and it just came to me, ‘How do you manage the guy on the road, carrying your brand?’” recalls Swart, reflecting on DriveReport’s origins. In 2005 he was appointed as the Southern African reseller of the American DriveCam system. The system’s hardware relies on a Video Event Recorder which is fixed to a vehicle’s windscreen, and through embedded accelerometers is able to detect and record abrupt braking or acceleration, sudden turns and collisions. Whenever an event is detected, a twelve-second video recording complete with audio is generated, showing the interior and exterior cabin views. This recording is immediately transmitted via GSM cellular networks for analysis and web-viewing. “The advantage of the DriveCam product is that the recording is done in a proprietary format, fully acceptable in courts of law. It requires a special event player, and when viewed through that it carries all the meta-data: date and time of activation, as well as GPS coordinates and speed,” explains Swart.

Future Trucking & Logistics / October 2013

Where the DriveCam system really comes into its own is when those short recordings are analysed in highlyqualified DriveCam International review centres, with the possible causes and severity of activations recorded and made available in detailed reports. Using these reports, an accurate profile is produced enabling proactive intervention by management. “We currently handle approximately 20 000 vehicles under the DriveCam service,” says Swart. “The focus of our company is to put into place a solution to give fleet operators a holistic view of their driver, encompassing all aspects: from risk and behaviour management to basics like HR elements.” The DriveCam system has identified everything from unsupervised vehicles rolling away and being involved in self damage collisions; unauthorised drivers and passengers; aggressive behaviour and traffic transgressions. However, Swart is adamant that the system is not designed as a tool to punish drivers, but rather one which will assist with vindicating them if they are involved in incidents at no fault of their own, and which also highlights safe driving and accident avoidance. Risk is further reduced through driver coaching. “Drivers have to have a good understanding of the product, and ultimately we want to help drivers get home safely,” Swart says. “Going forward there will be an avenue for drivers to participate in a quality rating, where the driver can leverage his experience and his history with DriveReport and DriveCam to earn a better income.”

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ONLY DRIVECAM® WILL DO THIS FOR YOU! INTELLIGENT ACTIVATION – according to vehicle type, LDV, Rigid or Tanker etc. EVENT-BASED RECORDING – Exceptions are recorded, not continuous and not seen as an invasion of driver’s privacy WEB-BASED APPLICATION – available online when needed via secure login DRIVER EVALUATION – assessments with related scoring and root cause analysis to determine risky behaviour and driver styles UNBIASED, FAIR ASSESSMENTS - scored according to international standards “MANAGING WITH LIGHTS” – recorder lights up during activation to give driver direct feedback when his actions have activated the system – showing him how not to drive and helping him correct himself.

Get driver participation – he can activate the system to give feedback and evidence of incidents. RISK ASSESSMENT AND ANALYSIS – predicting outcome based on behaviour determines drivers presenting higher risk – allowing you to be proactive and change future outcomes UPGRADABLE SYSTEM GROWTH PATH – Event recorder is computer based and field upgradeable ensuring a long term return on your investment

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CRASH SAFETY >>

Author Biography With nine years spent working as a specialist in the SAPS Accident Unit, Craig ProctorParker has owned and run a private practise – Accident Specialist – for the past 12 years, where he travels across the country analysing crash scenes and compiling reports for government, corporate and insurance clients. In an exclusive series for Future Trucking & Logistics, he will present valuable analysis relating to commercial vehicle accidents – supported by years of empirical data.

Connecting the Dots Although a lot of attention is devoted to the aftermath of commercial vehicle accidents, insufficient local data is available on truck crash safety. As Craig Procter-Parker explains, it is vital to note whether ‘crash safety’ pertains to the truck driver or other road users

s with passenger vehicle safety, there have been improvements of safety standards on commercial vehicles, with most of these being as a result of modern electronic aids such as ABS, ESC, EBS and the like; and to some extent also as a result of the general improvement of manufacturing processes and materials used. These improvements, however, have not seen major changes in the general structure of a commercial vehicle, where the design has largely remained as the H-Ladder, Cab Over Engine type layout. Interestingly, researchers from the University of Adelaide referred to the design of heavy vehicles as “high aggressivity, presenting significant risk to other road users”.

Future Trucking & Logistics / October 2013

This design is generally great for the safety of occupants in the commercial vehicle, but the major concern from this design has long been identified and is no more clearly set out than in the findings of the research entitled ‘Vehicle Aggressiveness in Real World Crashes’. So-called ‘vehicle to vehicle’ crash incompatibility – particularly that of commercial vehicles to sedans – remains a problem. As an example, a partial headon collision between a typical truck tractor into a sedan would usually see the sedan losing the battle catastrophically, something that I can attest to firsthand. Although there have been vast improvements made in the computer-based modeling of vehicle safety

parameters, with computer-based crash modeling such as LS-Dyna and TruckSim and many others becoming the norm for first point of analysis for almost all manufacturers, real-life crash testing of vehicles remains the most accurate way of testing vehicles and is accepted as so internationally. These real-life tests are conducted by the USA National Highway Traffic Safety Administration (NHTSA), the Insurance Institute for Highway Safety (IIHS) and the Australian New Car Assessment Program (ANCAP) among others. TWO BIRDS WITH ONE STONE In South Africa, there is no official crash testing requirement for commercial vehicles, with the specifications required for all vehicles sold in South Africa (including commercial vehicles) being set under homologation through the associated requirements of the National Road Traffic Act and indicated standards. These include those of the South African National Standards 1563:2005, 1518-2011 and 10047. Fortunately for us, our standards are to a great extent in line with that of global norms. Perhaps most importantly, manufacturers are obliged to meet their major distribution standards and these are typically that of America and Europe. Although some independent crash testing of commercial vehicles is undertaken internationally, the reality is that the cost thereof is an extremely limiting factor. This type of independent crash testing is therefore usually undertaken in conjunction with the evaluation of other products such as barriers, poles and accident-reducing technology testing. An example of this would be the ‘all in one’ multiple product testing of the effectiveness of a specific arrestorbed aggregate – perhaps where a bus enters the arrestor-bed, and the simultaneously testing of the effect on the bus and its tyres. Regulation of the manufacturing standards by governmental agencies to a certain extent compels the manufacturers themselves to conduct such testing and, like sedans, has seen certain countries mandating minimum requirements for commercial vehicles: under ride heights, structural rigidity, number of airbags and ABS as standard requirement and fitment.

Interestingly, there has been a major worldwide shift to the improvement of the standards of general strength of the ‘A’, ‘B’ and ‘C’ pillars in vehicles’ general roof structure. It is heartening to note that this mindset has translated into including similar strength improvements in commercial vehicles. This type of improvement is particularly noteworthy to heavy vehicle ‘run off road and roll over’-type accidents, typically incurred as a result excessive speed and fatigue. In recent times, formal rollover tests and minimum requirements are now forming part of such leading industry standards as NHTSA, IIHS and ANCAP. The issues raised above are largely those of the truck tractor itself. The safety of trailers is an issue all of its own, with perhaps the most important issue of trailer safety being that of ‘under-run’ – typically directly linked to issues of visibility. South African Standards currently only address rear under-run (SANS 1055) besides Dangerous Goods vehicles, and to this extent are sorely lacking on the issue of ‘side under-run’ by vehicles. This would also address to a large extent the associated issue of pedestrian and cycle accidents, where inclusion of side under-run devices would help prevent this type of accident. Research has also shown that careful design can see such side under-run devices doubling as aerodynamic aids (Editor’s note: see article by Chris Crookes on truck aerodynamic aids on page 42.). PUTTING THEORY INTO PRACTICE My team and I will be undertaking a full-scale, controlled and measured under-run crash test in 2014, with the aim of presenting this opportunity to industry stakeholders to learn from the crash test. Crash testing generally allows the results of physical structural changes to the vehicle to be analysed: roof escape hatches; larger internal space to allow for internal displacement; specifically collapsible components such as the vehicle structure itself as well as items such as collapsible steering columns. Even with these improvements, the greatest difficulty remains that of vehicle-to-vehicle compatibility. Here the major improvements have been crumple zones and minimum requirements for under ride heights. Validation of this vehicle-to-vehicle incompatibility is

October 2013 / Future Trucking & Logistics

CRASH SAFETY >> requirements should rather be taught through a regulated and mandated procedure. Unfortunately for the automotive industry, and perhaps most importantly for you as the end user, the implementation of these systems and the standards to be met – in order to maintain some semblance of control over safety – is slowly but surely requiring stringent enforcement. seen through our very own statistics confirming what international findings have indicated. Over the past few years, in fifty-nine major commercial accidents (3 500kg and above) where multiple deaths occurred, only seven (11,8%) of these resulted in the death of the commercial vehicle driver. This was usually due to some extenuating circumstance such as ensuing conflagration or no seatbelt use and resulting ejection. The difficulty in finding a reasonable resolution to this vehicle-to-vehicle incompatibility both short and long term, and among many other factors, is seen as one of the major justifications by proponents of dedicated and cordoned-off trucking lanes for commercial vehicles. Not to be taken lightly is the consideration of external heavy vehicle airbags, deployed immediately prior to impact on a similar basis as a normal airbag but specifically designed for sedan impacts, which could see the light of day. Such systems are already being deployed on upper-end vehicles, such as bonnet rising systems for pedestrians. Vehicle height-adjusting systems which initiate immediately prior to impact (dependent on the type of impact predicted) could quite feasibly be employed on commercial vehicles, but once again expensive crash testing would be required to evaluate the practical application of these. BE CAREFUL WHAT YOU WISH FOR An issue recently highlighted in a case investigated is that of the new vehicle delivery information supplied and training given. Sales representatives are often ill-equipped to provide this training, or simply do not take the time to educate the purchaser on the level of technology in a vehicle, and likewise its proper operation. Although one could argue that this is addressed by the inclusion of the vehicle owner`s manual with the vehicle when supplied, this issue remains problematic. Very often there is a disjointed association between the vehicle purchaser and the driver. It has long been identified that vehicles fitted with such technology are often learned – or incorrectly learned – through a process of experience, where such technological advancements and therefore specific

Future Trucking & Logistics / October 2013

This will include ongoing and increased computerbased and real-world testing, ultimately increasing the overall cost of commercial vehicles. It is highly improbable that in any realistic short to medium term that computer-based crash testing would reach a level that would negate the necessity for real-world testing. Logically both computerised and real-world crash testing of any form is not a bad thing for safety. However, a further down-side to this is to some extent already being felt, where highly sophisticated components cannot be repaired and have to be replaced, such as airbags. Likewise, the structural integrity of collapsible structures requires specifically-trained and equipped repair shops, all of which will in time likely have a detrimental effect on the initial cost of the vehicle. Perhaps more problematic is the cost of insuring and maintaining such advanced technology. Transporters are often painfully aware of the rising costs in other areas of their businesses, from fuel to labour, but the behind-the-scenes costs of improving vehicles’ internal and external safety cannot be overlooked. As it’s not possible – and not desirable – to turn the clock back on recent innovations in vehicle safety, the true costs of safety, not only in financial terms, should be remembered and budgeted for.

TECHNOLOGY >>

Author Biography Christopher Crookes has worked within the commercial vehicle industry for 23 years, predominantly for OEMs in aftersales and service capacities. Starting as a qualified diesel mechanic and progressing on to workshop manager, he has been extensively involved in technical, commercial and driver training and development. In an exclusive range of features for Future Trucking & Logistics, he will be sharing his expertise on technical issues.

From the NĂźrburgring to the N1 Although most trucks are fitted with wind deflectors of some sort, few transporters are maximising their aero potential. As Chris Crookes discovers, achieving the optimum fuel savings requires dedication and consistency

hat does a racing car and an ungainly truck have in common? Although sometimes it appears that the answer lies in similar driving styles, the more accurate answer is that neither can afford to ignore their aerodynamics. During the 1950s and â&#x20AC;&#x2DC;60s, some of the biggest advancements in automobile aerodynamics came from racing, as engineers experimented with different streamlined shapes which could help their cars go faster and handle better at high speeds.

Future Trucking & Logistics / October 2013

For racing this meant reducing drag and improving road holding, and eventually developed into the very precise science of crafting the most aerodynamic race car possible. Although this technology is now found in heavy trucks and trailers as well, the purpose is no longer obtaining maximum speed but rather peak operating efficiency. TAKING THE DRAG OUT OF TRUCKING Information I gleaned from Lance Wallace, Director of Communications at the Georgia Technical Research

Institute, shows that tests carried out using full-size, tractor-trailers prove that aerodynamic techniques increase fuel economy by 11 to 12 percent. These aerodynamic improvements also enhance braking and directional control, potentially improving safety for the big vehicles. “We have shown that this technology now works successfully, and we expect that the transport industry will find a potential 12 percent fuel saving worth pursuing,” Wallace explains. “At highway speeds, each one percent improvement in fuel economy results in a saving of about 200 million gallons (757 million litres) of fuel for the United States heavy truck fleet.” As promising as that headline figure sounds, my local research shows conclusively that measuring fuel savings from aerodynamic improvements is very challenging. There are a number of factors that influence this: vehicle specification, engine power, weight, mass, vehicle application and topography. One trustworthy voice in the South African industry is that of Cameron Dudley-Owen, owner of Aero Truck. Established in 1986, the company has played a leading role in introducing transporters to the complex world of wind management systems – aerodynamics to you and me.

performance and adversely affect cost savings derived from aerodynamics. PLUGGING THE GAPS One of the biggest truck and trailer aerodynamic challenges is to achieve a smooth laminar airflow from front to back. The gap between truck-tractor and trailer, and in the case of an interlink trailer, between trailers, poses a significant problem. These gaps generate turbulence that interrupts laminar flow and causes a high amount of induced drag. To overcome this problem, a large cab deflector and matching side extenders are fitted to the truck-tractor. The trailer is fitted with specially moulded air deflectors to reduce turbulence, and these components reduce the gap and minimise induced drag. Box trailers displace a large amount of air and the gap between trailers also generates turbulence and induced drag. To overcome this, the trailing edge of each trailer is fitted with a number of vortex generators. These are small wing shaped objects that create whirlpools of air to energise the boundary layer, by mixing high-speed air with the sluggish air of the boundary layer.

“The best way to measure fuel saving is to set a benchmark of one litre per 100 kilometres,” reveals Dudley-Owen. “This requires an initial aerodynamic set-up and continuously monitoring the vehicle’s performance. Thereafter, incremental changes are carried out by adding additional aerodynamic components, until the benchmark is reached or exceed.” To put that into perspective, an improvement of one litre/100 km at today’s wholesale inland 500ppm diesel fuel price (R12.48) equates to a saving of R124,80 for each 1 000 kilometres travelled. What appears at face value to be a small saving quickly translates into something significant when multiplied across a large fleet. Let’s take the hypothetical case of a transporter investing R25 000 on aerodynamic improvements, which achieve the desired saving of one litre per 100 kilometres. If the truck covers 15 000 kilometres per month, the potential saving equates to R1 872 and the kit would have paid for itself within around 14 months. As with any discussion of fuel efficiency, two very important areas that must not be overlooked are vehicle maintenance – including tyres – and driver capability. These can impede or enhance vehicle

October 2013 / Future Trucking & Logistics

TECHNOLOGY >>

combination, topography, condition of the route, and when and where he can achieve the best economy. Interchanging truck-tractors and trailers and drivers defeats the objective of reaping any benefit from aerodynamics.

This accelerated air flow strikes the leading edge of the following trailer and a new boundary layer is established, greatly reducing induced drag. In some instances the gap between trailers is completely enclosed by specially designed side and roof panels that do not interfere, or become damaged during turns. Trailer landing legs, meanwhile, generate turbulence that flows along the underside of the trailer and past the rotating wheels, thereby creating induced and form drag. Specially designed and fitted side panels channel air away from the landing legs, thus reducing the level of turbulence and inducing a laminar flow of air down the sides of the trailer past the outside of the wheels. In some instances trailer wheels are encapsulated so that the side panels have an uninterrupted air flow, which greatly reduces turbulence generated by the wheels. Truck tractors are also fitted with side panels that cover the fuel tank and other parts such as air tanks, again reducing induced and form drag. CHASING THE SWEET SPOT Aerodynamic designs are suited to certain conditions and speeds that provide the best economy. Aircraft wings are designed to keep a plane in flight, using pressure differentiation that generates lift and drag. However, the aircraft must maintain lift at low and high speeds by altering the wing profile during flight. The wing is nothing more than an adjustable aerodynamic aerofoil that effectively harnesses aerodynamic advantages over a wide range of speeds and conditions. Most automotive aerodynamic components as with trucks are static and not adjustable while driving. Continuous vehicle testing, monitoring and driver capability will therefore be necessary to determine the ideal conditions that produce the best economy. Aerodynamic efficiency will take place between certain speeds – what I call ‘the sweet spot’ – and above or below these speeds the aerodynamic efficiency deteriorates. Trucks and trailers that are matched and aerodynamically tuned must remain as a unit and should operate on set routes with set drivers. The driver gets to know the feel of the truck-trailer

Future Trucking & Logistics / October 2013

For too long, talk of trucking aerodynamics has centred on the local pioneers and trendsetters: Barlow Logistics’ well-known Green Truck project, Imperial Logistics, DHL, Bakers Transport and MAN Trucks. The reality, however, is that the ever increasing fuel price and vehicle maintenance costs have placed an economic burden on all transporters, forcing them to pursue every cost saving measure possible. Not only can wind management systems squarely be placed in the category of ‘Green Solutions’ thanks to reducing CO2 footprints, but I am convinced that aerodynamics – if done properly – does impact positively on fuel savings and in the long term on maintenance costs. Here’s to getting slippery! AERO CRASH COURSE As a truck and trailer move through the atmosphere they displace the air that surrounds them, and are subjected to gravity and drag. Drag increases with velocity: the faster the vehicle travels the more drag it experiences. Three types of drag that affect any vehicle in motion are: friction drag, form drag and induced drag. Friction drag is caused by the boundary layer that is made up of a number of extremely thin layers of air; collectively constituting a thickness measured in millimetres. The boundary layer clings to the surface of the vehicles’ body causing a laminar air flow Form drag is the resistance of the air to the passage of the vehicle moving through it. A blunt shape creates greater form drag, while a streamlined aerofoil shape creates less drag. When laminar flow is interrupted; drag is induced Induced drag is the difference between high and low pressure areas caused by air passing over irregular surfaces. This imbalance in pressure causes a downwash or wake and high pressure tends to flow toward the area of low pressure, resulting in a rearward force that must be overcome by the power of the engine. When the total drag equals the engine’s maximum power output; the vehicle can no longer increase speed. A typical example of this is a truck fitted with a large bull-bar having many round and flat surfaces; the wake given off disturbs the aerodynamic design of the front of the vehicle and increases induced drag.

“An opportunity to benchmark our service offerings and introduce our solutions” - Tracey Le Roux, Group Marketing Manager: Value Logistics -

SAPICS has established itself as a respected and recognised leader in supply chain education. The annual conference attracts a broad spectrum of industry role players, affording us the opportunity to network with potential clients and introduce our range of comprehensive logistics and supply chain solutions. This enables us to enhance our knowledge, benchmark our service offerings and ensure we continue to introduce the latest technologies and increase our operating efficiencies.

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AFRIKAANS >>

DIE FENIKS HERRYS Op Bob Lowden se aankoms laasjaar vanaf Iveco in die Verenigde Koninkryk, nadat hy as besturende direkteur vir die Suider-Afrika-streek aangestel is, het ŉ kolossale uitdaging hom ingewag. Bob beskryf die proses om Iveco Suid-Afrika te heroriënteer as ŉ geval van ‘oorbegin’ – soveel so dat sy strategie-aanbieding by Iveco se globale hoofkantoor ŉ vyfjaar-aksieplan was. Die Johannesburgse Internasionale Motorskou (JIMS) het gegroei tot wat ongetwyfeld een van dié glansvertoongeleenthede vir die Suid-Afrikaanse voertuigbedryf is, en Bob stel dit onomwonde dat Iveco ŉ beduidende belegging in hulle hoëprofieluitstalarea by die 2013-skou gemaak het. Gelukkig vir Bob kon die tydsberekening nie beter gewees het nie. Drie produkte sal by die skou vertoon word, en een daarvan word beskou as die hoeksteen van Iveco se voortgesette herstel in Suid-Afrika: die nuwe Iveco Stralis Hi-Way, Europese Voertuig van die Jaar vir 2013. VANAF DIE NÜRBURGRING TOT DIE N1 Hoewel die meeste vragmotors met wind-deflektors toegerus is, is daar nie baie karweiers wat hulle aëropotensiaal tot die maksimum benut nie. Volgens Lance Wallace, kommunikasiedirekteur by die Georgia Technical Research Institute, bewys toetse wat uitgevoer is met volgrootte voorhakervragmotors dat aërodinamiese tegnieke brandstofbesparing van tot 11 persent teweegbring. Verstellings van hierdie aard verbeter ook remwerking en rigbeheer. Een betroubare stem in die Suid-Afrikaanse bedryf is dié van Cameron Dudley-Owen, eienaar van Aero Truck. “Die beste wyse om brandstofbesparing

Future Trucking & Logistics / October 2013

te meet, is om een liter per 100 kilometer as maatstaf te neem,” sê Dudley-Owen. “Dit behels ŉ aanvanklike aërodinamiese opstelling en deurlopende monitering van die voertuig se verrigting. Daarna word inkrementele wysigings gemaak deur addisionele aërodinamiese komponente by te voeg totdat die maatstaf bereik of oorskry word.” Om sodanige brandstofbesparing in perspektief te plaas: ŉ verbetering van een liter/100 km teen die huidige binnelandse groothandelprys vir 500 ppm dieselbrandstof (R12,48) is gelykstaande aan ŉ besparing van R124,80 vir elke 1 000 kilometer wat gereis word. DIE PUNT VAN DIE SPIES Wat vragvoertuigfinansiering betref, speel MercedesBenz se finansiëledienste-afdeling, ŉ volfiliaal van dié maatskappy, ŉ sleutelrol om die verkoop van alle Daimler-produkte moontlik te maak. Die afdeling is duidelik in ŉ klas van sy eie en het in slegs 16 jaar ŉ portefeulje van R19 biljoen opgebou. MercedesBenz Financial Services (MBFS) het in 2012 sy 15de bestaansjaar in Suid-Afrika gevier, en visepresident Mike Honiball onthul dat hy glo dat die ‘towergetal’ – R25 biljoen – realisties reeds so vroeg as die einde van 2014 bereik kan word. In die ekstraswaarkommersiëlevoertuigsegment oorheers MBFS tans die finansieringsarena: Honiball beraam dat hulle markaandeel tans dig by 60% is. In die ligter kategorieë wat gewild onder klein en mediumgrootte beroepsondernemers is – ŉ segment wat beter deur tradisionele banke verstaan word – is MBFS se markaandeel nader aan 30%, maar Honiball beplan om hulle teenwoordigheid tot 50% uit te brei.