Focus October 2014

OCTOBER 2014 | R77.00

On Transport And Logistics focusontransport.co.za

UD TRUCKS has your back

Our crystal ball on the global truck market Ford and Fuso unleash new models

Continuing the trailer conversation in 3D Are we putting the “Integrated� into IRPTN?

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N E W

I V E C O

P L A

Iveco Sout h Africa and Larimar Group will soon inaugurate their new manufac turing facility: Iveco South Africa Works This site will assemble medium, heavy and extra-heavy duty commercial vehicles as well as front engine and low f loor city buses.

The new “Born in Sout h Africa” logo marks this impor t ant occasion. A ’s t amp of authenticity’, the logo cer tifies t he quality of t hese locally assembled Iveco commercial vehicles by a Sout h African workforce . Vehicles wit h t he “Born in South Africa” logo are t ailored for Africa’s varied terrain and challenging conditions.

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G AU T E N G

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October 2014 |FOCUS| 1

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

It takes a clear understanding of how your business operates. It takes expertly trained people who care about providing the best advice and the best service possible.

Hino prides itself on delivering cost-effectiveness and operational efficiency. It’s why every Hino is built for your business. – SO NO MATTER WHAT YOUR BUSINESS, YOU CAN KEEP ON TRUCKING.

2 |FOCUS| October 2014

OCToBER

Cover

contents 40

UD Trucks believes the level of service it provides to customers is what makes it stand out in the highly competitive southern African truck market. Find all the details on page 9.

On Transport And Logistics Published monthly by Charmont Global Unit 17, Northcliff Office Park, 203 Beyers Naude Drive, Northcliff, 2195. P O Box 957, Fontainebleau, 2032, South Africa Tel: 011 782 1070 Fax: 011 782 1073 /0360

16

EDITOR Charleen Clarke Cell: 083 601 0568 email: charleen@focusontransport.co.za Assistant Editor Gavin Myers Cell: 072 877 1605 email: gavin@charmont.co.za

12 DIGITALLY SPEAKING Digital technologies are changing the ways in which we move around cities, towns and countries. FOCUS speaks to a couple of specialists in the field about some of the latest offerings out there.

SUB-EDITOR Jeanette Lamont Cell: 083 447 3616 email: jeanette@charmont.co.za JOURNALISTS Jaco de Klerk Cell: 079 781 6479 email: journalist3@charmont.co.za

16 BIRD’S EYE VIEW OF TRAILERS The South African trailer industry has a lot to talk about at the moment. FOCUS continues the conversation with some of the country’s top trailer manufacturers.

Claire Rencken Cell: 082 559 8417 email: journalist2@charmont.co.za

30 MAKING FMCG MOVE FASTER Success in the fast-moving consumer goods (FMCG) environment is sensitive to issues such as order size and frequency, traffic congestion and vehicle use. We explore an innovative modelling technique that could turn these hurdles into measurable gains.

INDUSTRY CORRESPONDENT Frank Beeton Tel: 011 483 1421 Cell: 082 602 1004 email: frankb@econometrix.co.za TECHNICAL CORRESPONDENT Vic Oliver Cell: 083 267 8437 email: voliver@mweb.co.za

40 A mega company’s mega commitment Manline Mega has made history! It is the first South African company dedicated to the transport of abnormal loads to have earned Road Transport Management System (RTMS) accreditation!

PUBLISHER Tina Monteiro Cell: 082 568 3181 email: tina@focusontransport.co.za

48 TRAIN-ING FOR TOMORROW While Africa focuses on getting its rail transport back on track, the developed world is looking at ticketless travel, automated freight transport, maintenance drones and faster driverless trains by 2050.

ADVERTISING SALES Margaret Phillipson Cell: 083 263 0451 email: margaret@focusontransport.co.za Megan du Toit Cell: 060 503 3092 email: megan@charmont.co.za

68 WARNING SIGNS The recent Southern African Transport Conference brought to light a number of interesting research papers, including how working with minibus taxi operators and delivering public transport systems could be done better.

CIRCULATION MANAGER Bev Rogers Cell: 078 230 5063 email: bev@focusontransport.co.za

66

DESIGN AND LAYOUT Nelio da Silva email: nelio@focusontransport.co.za PRINTING Camera Press © Copyright. No articles or photographs may be reproduced, in whole or in part, without specific written permission from the editor.

CHARMONT m e d i a

g l o b a l

2014

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October 2014 |FOCUS| 3

STEERING COLUMN

The house that

scania built!

Regular FOCUS readers will

Components, cabs and kits all arrive from

– and it’s been four months since he played

know that I am spending a lot

Sweden in robust crates, which are discarded

of time with the Scania team,

once they have been emptied. “They can,

because these wonderfully

of course, go for recycling … but I thought

Understandably, he’s just like a proud parent.

that, possibly, these crates could be better

“The bulk of the house was built using the

utilised,” September tells FOCUS.

lids of the crates. The wood is really good!

patient people are helping me to get my truck driver’s licence.

a round.)

Now

he’s

built

his

first

house!

Being a rather ingenious fellow, he

It’s obviously been treated; the crates live at

What I didn’t expect (but did

wondered if it wasn’t perhaps possible to

sea for six to eight weeks. The lids are good

get) was a lesson in recycling

use this packaging material to alleviate one

because they’re bigger than the sides of the

and sustainability …

of this country’s greatest challenges: a dire

crates. It takes about 120 lids to build one

shortage of housing.

house,” he reveals.

Charleen Clarke

P

assion oozes out of his pores.

That’s probably the best way to describe Scania’s Shein September. He used to be

responsible for driver training within the company; now he’s in charge of service sales.

Above: A lesson in thinking outside the box … Scania’s Shein September and Nepo Seboko have used waste and packaging to build a house.

September is, however, not one to limit his activities to his formal areas of responsibility;

September is neither a trained builder nor

The ceiling is made out of corkboards that

he gets involved in all sorts of stuff. Mention

a professional architect, but this didn’t deter

were also derived from Scania packaging

road safety, for instance, and you won’t get

him. “I drew a plan in my notebook, then I

material. Insulation is also achieved using

him to shut up for hours. That’s because

bought a 100-litre compressor, a nail gun, a

these corkboards, which are packed between

he is truly passionate about road safety.

circular saw, hammers … all the tools I needed.

the panels. A thermal sheet is also fitted

As such, he’s involved in lots of road safety

I hired one of my colleagues, Nepo Seboko, to

between the panels to provide heating and

initiatives …

work with me over weekends – because he’s

cooling.

Well, it turns out that September is also passionate about the environment. This

a qualified builder. And we set out to build a house!” he explains with a big grin.

The only substantial part of the house that doesn’t emanate from the Scania scrapyard

passion led him to wonder all about the waste

That was four months ago. (September

is the foundation. “You obviously need to

from packaging material that is generated

had to check his golf diary to work out how

invest in a proper foundation; that’s essential.

at Scania.

long he’s been in the house-building business

I also bought some aluminium sheeting, which

4 |FOCUS| October 2014

STEERING COLUMN

I shot into the ground, so that the wood would

connections. There is even an aluminium sheet

not get wet,” September explains.

above the stove,” he explains.

Scania scrapyard, of course.

This is not September’s first foray in

September is not an electrician or a

Naturally, because September is not

the area of social responsibility. He and his

plumber, so, while he and Seboko have done

a builder, the house has evolved over the

supportive and understanding wife (who has

the bulk of the labour, he has enlisted the

months. “I’ve never done anything like this

not had a husband for four months) visit a

services of professional tradesmen for the

before. My experience is in fleet management

farm each month to buy meat for the poor.

finishing touches.

and Scania vehicles!” he says with a laugh.

Their daughters always share their lunch with the underprivileged.

One day you may drive past an entire village that has Scania impregnated into the walls of its houses.

“It’s just our way of life,” he explains. “I believe in helping people. People don’t choose to be poor, and when you see the shacks in our country … I just thought that there had to be a better way of doing things.”

September believes that this house will last for 20 years, and he wants to build many

“So the entire building is completely legal, with all the required certification. We have also

“So it was a bit of trial and error … but I’m

more. “I estimate that we can build 25 to 30

delighted with the end result.

houses a year using the raw materials that

taken the necessary precautions to ensure

The final house measures 45 m². It

that it’s not a fire hazard. The wiring is not

comprises two bedrooms, a lounge, kitchen

we have at Scania. This is just the beginning!”

connected; it is one solid wire. The plugs aren’t

and bathroom (including a toilet and shower).

Who knows? One day you may drive past

mounted in the wood; they’re mounted onto

September is now building shelving and

an entire village that has Scania impregnated

plastic. We are discouraging people from

cupboards for inside the house – using old

into the walls of its houses. And you’ll know

using gas – because it comes with electrical

pallets that he has scrounged from the

where it all started … |FOCUS

he notes with real glee.

Producers of luxury and Semi luxury coaches

Head Office | T +27(0)12 661 1927 | F +27(0)12 661 1928

Sales | Thomas Spencer | C 082 614 2122 | E tommy@irizar.co.za

Sales Manager | Ryan Levendale | C 082 603 2813 | E ryan@irizar.co.za

Technical manager | Riaan Koster | C 082 602 9619 | E riaan@irizar.co.za www.irizar.co.za October 2014 |FOCUS| 5

wheel nut

Mine’s smaller than

yours!

capacity engine – the effect of which is the low fuel consumption of the small engine accompanied by power figures one would normally be used to with a larger-capacity engine. The practice is sweeping through the car world (and this year it became the norm in Formula 1) and the effects are phenomenal.

Given the relentless pace of

as well, or pull as strongly, as the 2,5-litre

Just one example is the new Volkswagen

technological advancement,

engine under the bonnet of my 325i BMW …

Polo, which packs a 1,2-litre turbocharged

even if they actually could.

four-cylinder engine with two different power

I wonder how long it will be before we see commercial

I was also not too big a fan of forced

options. The higher-powered version produces

induction. As far as I was concerned, it was a

similar power figures to your average 1,8 (the

vehicles ubiquitously powered by

bit of a cheat to make up the numbers. That’s

lower powered to some 1,4s and 1,6s) and

much smaller engines

not to say I was entirely against it – but a C32

consumes around half the amount of fuel.

AMG Mercedes needed a supercharger to

I recently drove one and it is, in all honesty,

allow its 3,2-litre V6 to challenge its naturally

utterly fantastic.

The latest generation Fuso Canter has a smaller engine than its predecessor.

Is this a sign of the future?

Gavin Myers

T

aspirated 3,2-litre BMW M3 rival. Why would here’s

no

replacement

for

displacement … So the saying goes. There was a time when

you bother with the Merc?

Nevertheless, I did grow up (a bit) and have learnt a thing or two.

By now I imagine you’re reading this and thinking, “That sounds great and, yes, I might need to buy something similar one day … but this is a trucking magazine!” And you’re right …

adage

“Sixteen litres! Surely that’s a typing

But, here’s the nub: I recently attended the

wholeheartedly – when I was younger and

error?” I remember thinking when delving into

local launch of Fuso’s eighth-generation Canter

wilder and lusted over anything that could

the world of heavy-duty commercial vehicle

(which you can read all about on page 38)

give me some sort of automotive thrill.

engines for the first time. Obviously they

where, in his address, Godfrey Hani, head of

I

agreed

with

that

The eight-litre V10 under the cavernous

were turbocharged as well, but so was the

Fuso SA, was very keen to talk about the new

clamshell bonnet of a Dodge Viper (originally

monstrous V12 in an SL65 Mercedes – and

vehicle’s three-litre turbodiesel engine. Why?

based, incidentally, on a push-rod truck

that’s only a six-litre … (Yes, these engines are

Its forebear ran a four-litre; yet the new version

engine and converted from diesel power

designed for vastly different tasks; the highly-

outpunches it in both power and economy.

to petrol) was simply better than any five-

stressed Mercedes V12 probably wouldn’t

point-something V8 Chevrolet could fit into a

last too long in a truck.)

Downsizing, then, is clearly making its way into the commercial vehicle sphere too.

By now, I’ve become used to the (very)

And why shouldn’t it? While those Vipers

The Japanese, though, have always been

large numbers this industry produces. Of late,

and Vettes will probably take their massive

good at extracting strong power from small,

I’ve also been privy to a few dinky toys that

engines to the grave, BMW’s latest 328i is in

high-revving petrol engines (until a few years

have taken that old displacement adage and

reality a turbocharged 2,0-litre and its latest

ago, oil-burners from The East were practically

turned it on its head. “Downsizing” is what the

M3 now also turbocharged. It is the way of

exclusive to vehicles with a commercial or

car guys call it.

the internal-combustion future. I wonder how

Corvette, for example.

off-road bent). To my mind, however, those

In a nutshell, this is the practice of slapping

1,6, 1,8 or 2,0-litre engines just couldn’t drive

on a low-pressure turbocharger to a smaller-

6 |FOCUS| October 2014

small an engine might eventually lug a 56-t rig around. |FOCUS

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Johannesburg. Mandela Bridge.

P E R F E C T

I N

E V E R Y

S I T U A T I O N

More reliability due to outstandingly strong frame More driving comfor t thanks to manual, automatic and automated transmissions More design, with imposing grille, large handles and illuminated, non-slip steps More versatility, with 11,584 possible variants : 9 transmissions, 3 types of cab with 12 wheelbases The New Eurocargo. Your ideal business par tner, always perfect.

W W W . I V E C O . C O . Z A

October 2014 |FOCUS| 7

VIC’S VIEW

properly

jacked up

Changing a wheel on a fully loaded trailer is not easy at the best of times. However, an innovative solution is now available

C

hanging a wheel on a heavy-

Pieterse started his career as a heavy-

duty trailer along the roadside

duty truck driver. Way back in 1999, while

quality, and was then approved by the Council

can often be a daunting and

driving a fully loaded truck tractor and semi-

In many heavy-duty fleets, hydraulic jacks

for Scientific and Industrial Research (CSIR).

dangerous task. The immobile

trailer along a lonely road through a forest

are problematic for the owner/operator.

truck and trailer is often stranded on a busy

plantation, late in the day, one of the trailer

Jacks are often stolen, sold by the driver, not

road and causes major traffic congestion, plus

tyres went flat.

maintained and fail when needed.

unaffordable downtime for the operator.

He stopped the vehicle and proceeded to

On a fully loaded trailer, where the trailer

In many cases, it is a tyre on the trailer that

jack up the trailer axle with the hydraulic jack

axle is higher than the lift point of the truck

goes flat and not one on the truck tractor. This

that belonged to the truck tractor, but the

axle, the hydraulic jack stroke is often too short

is due to the common practice of operators

jack was faulty and was unable to lift the fully

to lift the trailer high enough to remove the

fitting inferior tyres on the trailer and good

loaded axle.

wheel. Drivers then often place bricks or rocks

tyres on the truck tractor.

Being stranded, without any means of

under the jack to get sufficient lift. This is a

An innovative, quick, safe and maintenance-

calling for help, Pieterse had to find a way

highly dangerous practice, and one that often

free trailer axle lifting system, that is also

to lift the axle without the use of a hydraulic

leaves bricks and rocks in the road, creating a

very simple to use, has recently come on the

jack. He scouted around and found a log in

hazard for other road users.

market from Trestle Jacks. It appears to be

the plantation, which he wedged at an angle

The operation of the TrestleJack is simple;

the answer to getting the truck and trailer

behind the axle and then moved the vehicle

you place it under the axle that has to be lifted,

back on the road without much delay.

slightly until the axle lifted. Now he could

at a slight angle, and then move the truck

change the wheel, and the concept of the

backwards or forwards until the axle lifts.

To find out more about this system, I contacted Jaco Coetzee and Herman

TrestleJack was born.

The TrestleJack is well suited for use

Pieterse at Trestle Jacks and arranged for

In 2002, the company filed for a product

on the road and in the workshop. It is

a demonstration. On arrival at the company’s

patent, and in 2010 made a decision to

so simple and maintenance free that

testing site in Brits, Coetzee told me the story

build the first prototype. Between 2010 and

the purchase of this device should be on

of how this simple trailer axle lifting system

2013, the product was tested thoroughly

the shopping list of all operators running

had evolved.

and systematically to ensure its safety and

heavy-duty trailers. |FOCUS

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

Visit www.focusontransport.co.za and have your say!

8 |FOCUS| October 2014

cover story

UD TRUCKS has your back

In the highly competitive southern African truck market, UD Trucks believes the key differentiator is the level of service provided to customers, no matter the size of their fleet

“T

o us, it is about adding

through the professionalism, passion and

tangible value to our

dependability of the people who have been

“In addition, in order to provide customers

customers’ businesses,”

part of the UD Trucks family, the brand has

with a level of service that adheres to stringent

says Rory Schulz, acting

reached multiple milestones and successes

world standards, staff in our dealer network

over the years.

are constantly trained and empowered to stay

managing director of UD Trucks Southern

our customers need it most,” Schulz says.

Africa. “It is about building partnerships,

“As a manufacturer, UD Trucks is extremely

abreast of the latest developments within the

offering smarter transport solutions, and

privileged to have a dealer network that

industry. The training enables staff to assist

ultimately providing products and after-sales

doesn’t merely retail our trucks, but rather

customers in finding the right solution, in the

assistance that suits each customer’s unique

is a network of extremely knowledgeable

shortest amount of time,” he adds.

business requirements.”

and experienced transport experts, who are

Furthermore, UD Trucks offers specialised

also our business partners in every sense,”

transport consultancy services at all its

explains Schulz.

dealerships to assist customers to select

Built on a solid foundation of a proven range of trucks and a team of experts at every UD Trucks dealership across the region, the

The 65 accredited dealers in UD Trucks

the correct vehicle for the job at hand.

company continually endeavours to develop

Southern Africa’s network have to adhere

“The selection of the correct vehicle allows

strategies, together with its customers, to

to stringent quality standards, and are

customers to run their operations efficiently

ultimately benefit their businesses.

continuously measured across all disciplines,

and also forms the cornerstone of a planned

“At UD Trucks Southern Africa we believe

from parts to sales, service and admin, in

and dependable service and maintenance

that it is about providing customers with

order to bring customers only the best service

schedule,” Schultz explains.

innovative transport solutions and service

and after-sales support.

“The company’s transport consultants are

offerings, built on trust, in-depth industry

“Together with our dealer network, we are

able to determine vehicle loading and mass

knowledge and a strong technical skills set,”

committed to reducing downtime on customers’

distribution, predict vehicle performance,

says Schulz.

vehicles through various strategies – which

estimate operating costs, as well as provide

He adds that during the company’s history

include a high level of parts availability and

finance options and maintenance and service

of more than five decades in South Africa,

offering support during breakdowns – when

cost estimates,” concludes Schulz. |FOCUS

October 2014 |FOCUS| 9

2015

TRUCK TEST Bigger, again,

and better Believe it or not, next year will be the fourth instalment of the annual Truck Test event … Time sure does fly when you’re having a blast! This chapter will, however, deliver some scientific déjà vu

D

éjà vu, from French, which literally means “already seen”, is the phenomenon of having the strong sensation that an

event, currently being experienced, has been experienced in the past … Although Truck Test 2015 will shine the spotlight on extra-heavy commercial vehicles (EHCVs) once more, as we explained last month, this time round the test will be more stringent – so as to return the most accurate figures possible.

Martin Dammann, a managing member at Hellberg Transport Management (HTM), adds: “With Truck Test 2014 barely done and dusted, the preparation for next year’s test of EHCVs is well under way. The last time we tested this category of vehicles was in 2012, which was also the first instalment of what has now become an annual event in the industry – and one which is being taken very seriously by the truck manufacturers.”

He says that HTM is particularly pleased to be working with the same partners again; FOCUS, Engen, Ctrack and Adrian van Tonder from Barloworld Transport, with each playing a vital role in contributing towards the integrity of the overall results.

Dammann continues: “Over the last three years we have learnt how important it is to ensure that all measurements are done accurately and in an unbiased manner, as

We take the DRAG out of Trucking

there is much at stake for the participants.”

The HTM team will, once again, be responsible for compiling the test results – which will report on the technical specifications of the vehicles, the payload, fuel consumption, average speed and payload productivity.

Dammann points out that Van Tonder will supervise the loading of palletised cement pockets, at AfriSam, to ensure that the rigs are all loaded to the same gross combination mass. “The truck tractors and trailers, from Afrit and GRW, will be weighed empty and laden so that we can calculate accurate payloads for each combination,” he notes.

“As with previous tests, we will be using our TransSolve software to predict the performance of the trucks and then use the actual results to improve our simulation algorithm,” explains Dammann. “This is also a good opportunity for us to review all the data supplied by the vehicle manufacturers to ensure that the details in our TransSolve database are correct and up to date.”

He adds that Engen will assist HTM with the fuel recordings and checking that the refuelling is always to the same level on a sight glass, which will be fitted to the outside of the fuel tanks.

Eugene van Niekerk, business development manager at Ctrack Fleet Management, points out that the company will be providing telematics information to the event’s

3CANIA 3OUTHERN !FRICA !NGOLA "OTSWANA -ALAWI -OZAMBIQUE .AMIBIA 3OUTH !FRICA 4ANZANIA :AMBIA :IMBABWE

10 |FOCUS| October 2014

organisers once more. “As in the past, Ctrack will be validating the departure, travelling and stopping times of all participants as well as the distances and average speeds.”

He adds that Ctrack will also be providing fuel consumption information recorded from the onboard computers of participants’ vehicles, through the CANBus J1939 interface. “This will provide valuable insight during the event to both participants and organisers.”

The company will also provide live feed to all the participants via the Ctrack Online monitoring software, which will allow them to view the progress of their own as well as the other vehicles.

“Ctrack Online allows real-time updates and a Google map view of the route and the progress of the vehicles,” Van Niekerk points out. “Once again the Ctrack tachograph information will be provided on all vehicles.

This will show the driving style of each vehicle over the duration of the event.”

He explains that the tachograph information shows graphically both road and engine speed values for each vehicle and provides valuable insight into average speeds, maximum speeds and stops on route. He adds: “Ctrack is proud to be associated with Truck Test 2015 and is looking forward to another successful event.”

We definitely share this sentiment! |FOCUS

SB + 1 / 9 Ê "

Ê/

THE SCOTT BYERS NETWORK

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Get your costs in perspective.

Over time, you create a lot of scheduled downtime by maintaining your vehicles across numerous suppliers. And lost time equals lost revenue. So doesn’t it make sense to partner with a company who provides you with every service you need in one convenient location?

There is a better way.

October 2014 |FOCUS| 11

digital technology

12 |FOCUS| October 2014

digital technology

Digitally speaking

Digital technologies are changing the ways in which we move around cities, towns and countries. CLAIRE RENCKEN speaks to a couple of specialists in the field about some of the latest offerings out there

S

teven

sales

instruction and various communications

efficiency, safety, security and compliance

director for South Africa and

Sutherland,

technologies, facilitating real-time and long-

have proved to be far-reaching. From being

Africa at MiX Telematics,

term connectivity. The benefit of digital

able to pin-point the location of vehicles

hits the nail on the head

communication bodes well for businesses

and drivers, replay routes and analyse trips

when he says: “The internet is taking

and fleet managers, allowing them to track

from anywhere in the world, and monitor

over all facets of communication, loosely

and monitor drivers, field workers, vehicles

driver behaviours – all via the web or mobile

translating into the ability for data to

and other mobile assets. Benefits are

phones – operators are gaining more and

be transferred over a network, without

tangible – and bring improvements that are

more control. The ability for ‘big data’ to

requiring human-to-human, or human-to-

sustainable,” says Sutherland.

be transferred over a network requires

computer interaction.” Telematics service

In the drive to become a digital business,

little human interaction, and so much can

providers can be seen as early adopters

fleet managers should constantly be on

be learned, understood and changed by

of this trend.

the lookout for tailored telematics products

analysing this data,” he explains.

integrates

and services that utilise machine-to-machine

In conjunction with efficiency goals, fleet

machines, sensors, information, software

“Telematics,

in

fact,

technologies. “The benefits in terms of

operators are seeing the value of adopting

October 2014 |FOCUS| 13

»

digital technology

a reliable fleet-management solution to

revving, acceleration, idling and braking,� he

that alerts local emergency services on

reduce accidents and boost safety levels.

continues.

impact. Gore says the introduction of Fully

“The industry is currently facing an increase

This positive impact that telematics

Automated Crash Technology (FACT) to

in road traffic incidents. The high accident

can have on drivers should also not be

the South African market will completely

and fatality figures are placing a question

underestimated; being supported by mobile

revolutionise how emergency services

mark against who’s responsible for improving

and in-cab technology can only result in a

respond

the situation. Advanced digital technology is,

better experience for them. “Many of our

immediately alerts emergency services

to

accidents.

“The

system

within seconds of an accident, determining

In the drive to become a digital business, fleet managers should constantly be on the lookout for tailored telematics products and services.

the level of response required and the damage to the vehicle,� he explains.

In addition, the technology automatically and accurately predicts the possible injuries to the occupants of a vehicle, thereby providing actionable data to inform the dispatching of response teams. FACT is also able to quantify the mechanical damage to a vehicle,

therefore, bound to become a much-needed

customers cement their fleet management

calculating the angle of the impact, vehicle

component in the fleet-management mix,�

solutions

driver-training

crush, bill of materials and a preliminary cost

adds Sutherland.

programmes and incentive schemes,� says

to repair the vehicle. “Being able to provide

Sutherland.

insurance companies with a report that can

with tried and tested fleet management

Vincent Gore, CEO of Resource Tracking,

software, it is possible to record and map

agrees that the main focus of insurance

calculate these factors, all in real time, is truly

exactly how a fleet is performing: from

telematics, over the past three years or more,

He says that several major telematics

the condition of each vehicle, to the way

has been driver scoring (or measuring the

companies in South Africa have now

in which it is being driven, or has been

way a specific driver handles his vehicle), to

completed technical due diligence on the

driven.

better anticipate the likelihood of an accident

technology and are entering into pilot

“Monitoring this in real time, as well as

and a claim. Driver scoring technology, also

projects. “It’s been an exciting journey to date,

historically, opens up numerous opportunities

known as usage-based insurance (UBI),

and we’re looking forward to working with our

to save costs, reduce risk, enhance customer

allows insurers to improve price policies and

partners to bring this technology swiftly to

service – and, essentially, strengthen your

attract lower risk drivers.Â

the South African market.�

cutting edge,â€? says Gore.Â

business. Data is instantly transmitted from

According to Gore, “The success of UBI

Gore believes that crash management

our customers’ vehicles directly to one of our

has convinced many insurance industry

technology can make a significant difference to

secure data centres, after which reports are

leaders of the power of telematics, especially

the fatality rates as a result of road accidents.Â

generated,� he notes.

on the underwriting side of the business. We

In conclusion, Sutherland sums it up well:

“In-cab technology also allows drivers to

are now taking telematics one step further

“When you consider the many business

be alerted to their driving style errors in real-

into insurance claims operations, by fully

advantages being driven by our digital era,

time, meaning they can rectify poor habits,

automating accident reporting and analysis.â€?Â

businesses should be willing to jump aboard.

which affect fuel consumption and safety.

Resource Tracking is set to mark a

It’s almost a case of ‘now or never’ for those

Such devices or accessories – which include

global first with the imminent introduction

forward-thinking competitors who have the

the RIBAS and the MiX Rovi – monitor speed,

of

edge to stay ahead of the pack.� |FOCUS

crash

technology

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Trailers

Bird’s eye view of

trailers The South African trailer industry has a lot to talk about at the moment. GAVIN MYERS continues the conversation with some of the country’s top trailer manufacturers

T

hanks to the increasing power

of

computerised

technology, it is becoming easier, quicker and more

efficient to design and build trailers – from the biggest beams to the smallest nuts and bolts. This is a common theme across specialisations, but, while this positive is undoubtedly making life better for trailer manufacturers, allowing them to build vehicles comparable to the best in the world, the industry is suffering a few challenges at the moment.

The design requirements are uniform across most of the applications. The process begins with an interview to ascertain the needs of the client, find out exactly what will be transported, where the trailer will be used, how many drops it’ll make in a day and how far it will be travelling. Those specs are then fed to the engineers, who make use of sophisticated AutoCAD and 3D modelling programs to come up with the ideal design for durability and longevity – if a solution doesn’t already exist.

Unfortunately, in the case of a new design, testing isn’t always possible.

Time and costs preclude this. (The enthusiastically driven Performance Based Standards (PBS) project – a topic deserving of its own full feature – is an exception.)

Some manufacturers, like Afrit and Paramount Trailers, will offer prototypes to valued clients for real-world evaluation.

“That’s probably only ten percent of the time in South Africa,” says Tjaart van der Walt, Afrit East Rand branch manager.

16 |FOCUS| October 2014

“Unfortunately we do it the wrong way around in our market … Ideally, we should have our vehicles in the market for two to three years and see what actually happens during operation,” he continues.

Trailers Van der Walt explains that, with 3D design, the whole model can be tilted, flipped and inspected from every possible angle. The design process is, therefore, a lot more efficient. Warren Marques, MD of Paramount Trailers, agrees: “The trailer can be fully viewed in 3D and tested on the computer using stress analysis tests. This enables the designers to identify areas of concern prior to manufacture.”

The manufacturing process is also changing with the times. Robotics, laser technology and dedicated production lines are buzzwords for these two juggernauts – allowing more dedicated, focused work on each trailer, while at the same time, significantly improving quality and speed.

“Technology is allowing us to build trailers, that are neater and lighter, more quickly,” says Marques.

“We’ve always tried to stay ahead with regard to technology and materials,” explains Van der Walt. “The biggest component is Domex steel. It’s the best material you can get. We buy it directly from the mill in Sweden. Besides this, we source everything else we need locally.”

Marques says that most of Paramount’s trailers are built using carbon steels. “The technological advancement in steel is allowing us to build trailers using thinner materials,

Primed and ready for bodies The corner of Boundary and Trichards roads, Boksburg, is where Serco’s customers can now find the company.

The trailer and body builder moved into its new Gauteng headquarters in early September. Located about 20 km from O.R. Tambo International airport and easily accessible from the N3 and N17 highways, the 13,4 hectare site gives the company much needed space for expansion.

The facility includes about 3 400 m2 under cover and extensive outside working areas. Important features of the new premises include a generator that could power the entire plant in the event of electricity disruptions and fibre optic and satellite links for the IT infrastructure. The hightech plant also features an environmentally friendly trailer washing and irrigation system, fed by an on-site borehole.

Space has been set aside for a soccer pitch and there is also a canteen on site. “At a later stage we plan to convert one of the spare existing buildings into a dedicated on-site training centre,” says Serco MD Clinton Holcroft. “The exciting thing is that, as and when demand increases, we have plenty of space for expansion,” he continues.

Serco is also continuing extensions to its Durban truck body and trailer plant in Phoenix Industrial Park, which should be completed by the end of the year.

»

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October 2014 |FOCUS| 17

Trailers

while not compromising on the strength of the trailer,” he notes.

Van der Walt points out that there is also a move towards the fitment of Electronic Braking Systems (EBS) instead of the standard anti-lock systems fitted to trailers over the past few years.

This results in extra benefits for the customer, such as enhanced stability. “Our products are directly comparable to European standards,” he says proudly.

Despite all these efforts, both Van der Walt and Marques say there are operators that need to pay more attention to their trailers. A managed maintenance programme is often lacking. The vehicles also have to be spec’d for the correct application and environment in which they’re expected to work, and then used for the intended application.

Bodies “The transport industry will continue to grow as living standards and demands increase,” says Ettiene Tukker, GM of Icecold Bodies (a finalist for the 2014 Truck of the Year “Best Body/Trailer Builder” award). He notes that the company has an obligation to ensure its customers can serve their own customers properly.

“Setting new trends in production and the supply chain will allow us to become leaders in the field. But respect between manufacturers will benefit everyone – the pie is big enough and all can share in this multibillion-rand industry,” he says.

He warns, however, that surviving in the transport industry over the next five years (the company increased its capacity by 50 percent in the last year) will be difficult if body builders do not commit to comply with new regulations and standards. “With current government involvement and initiatives, such as implementing refrigeration standards, and with full industry support, this will become an everchanging process.”

Tukker notes that the industry has already changed significantly over the years; with greater demand for logistics and increasing running

18 |FOCUS| October 2014

costs. “It’s become essential for us to ensure that our customers can remain competitive. We must, therefore, constantly adapt our designs and operations to suit new demands from the industry in order to ensure our customers can run at optimum performance,” he says.

In this regard, materials are a critical consideration. Tukker gives an example: “Poor insulation has the potential to affect the perishable goods being transported and higher fuel costs result from having to keep the goods at stable temperatures.” The build process is also important. Icecold Bodies is implementing a production management system using tools such as Lean and Keizen to improve reliability, lead time, cost and quality.

Specialised applications John Harding from Martin Trailers, a specialised trailer manufacturer for over 30 years, says that, if designed and maintained correctly, even those trailers operating in arduous conditions can expect a long and productive lifecycle.

“Our low-bed trailers have a design life of 20 years, but there are Hyster trailers (as the company was originally named) that were built in the 1970s and are still running daily!” he says, noting that the key to preserving the life of a trailer is regular maintenance and operating only within the manufacturer’s design specifications.

“In other words, don’t overload,” he stresses.

Harding notes that Martin Trailers’ core design philosophy has for decades been based on the use of high-quality, high-tensile steel – but the company has begun experimenting with even stronger steels in an effort to gain an extra margin of payload. This, he says, is becoming ever more difficult.

“The quest for additional payload using traditional South African configurations is near exhaustion, yet machines continue to get bigger and heavier. A major challenge, for example, is moving mining equipment in the range of 100 to 120 t. These machines are becoming more and more common …” Harding notes the last big shift was in the 1990s when operators moved from the folding gooseneck design to the removable

gooseneck concept (which he is proud that the company pioneered in South Africa).

“It is inevitable that we will start to see many more European-type extendable and steerable trailers on South African roads. This can already be evidenced by the number of imported trailers in the Western Cape. Unfortunately, a lack of certainty and assurance by transport authorities is hindering local manufacturers from recouping this lost market share.

“Manufacturers and operators are desperate for a modern, concise, clear and firm set of guidelines on these types of trailers so that they can accurately plan their equipment designs and purchases,” he says, adding that: “we are entering an exciting period where a handful of trailer manufacturers are likely to set new boundaries in design and innovation in response to the recent tide of European imports.”

All that’s then needed is strong guidance and support from the transport and roads authorities … |FOCUS

October 2014 |FOCUS| 19

For more innovation visit www.afrit.co.za.

Thanks to the input of Roelf, Marco, AndrĂŠ and you, the customer-inspired standard range of trailers offers the functionality you need, with the quality you expect from an Afrit.

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Trailers

Quality over quantity

Despite tough trading conditions within the South African truck trailer manufacturing sector in recent years, Kearney Payloader has weathered the storm

K

earney Payloader is in the

appointed new management personnel in

animation design tools to high-tensile steel and

process of re-engineering its

recent months, including a new managing

premium-quality running gear and ancillary

operations to give commercial

director, Jo du Toit, a new financial director,

equipment, we are able to significantly push

truck transport operators a

Stephen Gapko, and Loodewyk Schoeman –

the payload envelope without compromising

its new in-house engineer.

on build strength.”

new generation of trailers where safety, productivity and overall profitability are enhanced

through

innovative

Kearney Payloader owner and chairman,

“Lowering trailer tare mass and total cost

design

Eddie Kearney, states: “Our new management

of ownership simultaneously is the ‘holy grail’

concepts and the fitment of premium-quality

personnel bring the necessary expertise

of trailer fabrication and we have an exciting

components.

and experience in the trailer industry to

basket of products to really drive the industry

“I don’t believe the trailer manufacturing

give us the intellectual capital to meet the

forward in terms of safety, durability, overall

industry has been keeping up with the

objectives of our refined company vision,

cost efficiency and payload productivity,” he

advances being made in truck-tractor

which is to offer true value to our customers

adds.

technology,” says Marius Kearney, sales and

through the provision and support of trailers

Leading the Kearney Payloader foray

marketing director at Kearney Payloader.

that outperform and outlast competitor

into the vanguard of South Africa’s trailer

offerings.”

manufacturing industry is a new range of

“Transporters have been far too focused on the purchase price of a new trailer, rather

With customer-driven innovation as a

interlink side-tippers featuring a unique,

than considering the cost of its total lifecycle.

cornerstone of its new approach, Kearney

patented, constant-velocity hydraulic tipping

Our philosophy now is to offer ‘intelligent’

Payloader has developed a manufacturing

action that eliminates stresses, shock

trailer technologies to our customers, by

process that utilises the best design tools,

loads and stability issues during the tipping

providing solutions that are safer, bring lower

materials and components available on the

process.

cost per kilometre to the operator, have

world market.

improved longevity and boost productivity.”

The Johannesburg-based operation has

20 |FOCUS| October 2014

“This is the only side tipper of its kind

Du Toit explains: “By using the best

in South Africa and its merits are being

imported products available, from 3-D

proved in top fleets like NiDa Transport and

Trailers

Imperial Logistics,” adds Du Toit. “It has a low height and,

conduct on-site repairs if necessary.

therefore, a lower centre of gravity, making it the most

“We also have a dedicated repair and warranty

stable side tipper currently on the market. Technologies

facility at our head office and we offer genuine original

like Electronic Braking System (EBS), roll-over prevention,

equipment manufacturer (OEM) spare parts at cost. Our

Electronic Stability Program (ESP) and automated tyre

trailers come with a standard 12-month warranty and all

inflation also boost overall vehicle safety.

components are covered by respective OEM warranties.

“The constant-velocity 45-degree tipping action

All these factors lower overall cost of ownership and

discharges product away from the vehicle in a smooth

bring peace of mind to the operator,” says Marius

stroke, effectively improving vehicle longevity by reducing

Kearney.

stress on the hydraulic rams, load bins and trailer

With its revised approach to specialisation, Kearney

chassis. The use of Domex steel and low-maintenance

Payloader is looking forward to playing a leading part

European running gear has brought the trailer tare mass

in the transformation of South Africa’s truck trailer

down significantly, allowing for a class-leading payload of

industry. “The industry needs to be better regulated.

38,4 t.”

Manufacturers need to start by using quality components.

With a portfolio of 165 homologated trailer designs suited to African conditions, Kearney Payloader is geared

We would like to challenge our competitors to join us in our quest to fix the industry,” he adds.

to service the demand from key domestic and cross-

“The Kearney Payloader approach has evolved over

border operators, particularly in mining, agriculture, low-

the years to where we are today, which is to work

bed and long-haul applications.

really closely with our clients from the concept and

After-sales support is a vital ingredient in the building

design stages through the manufacturing process to

of ongoing customer relationships and Kearney Payloader

final delivery, to ensure the customer has a safe and

has established a network of accredited trailer servicing

genuinely profitable business tool in his fleet,” concludes

agents in every major city in the country, which will

du Toit. |FOCUS

Clockwise from left: High-tensile steel is fabricated and welded to make chassis rails. The finishing shop, where trailer brake systems and other ancillary components are fitted and checked for final quality. A computerised plasma cutter cuts trailer body components with precision. The trailers are fitted with the patented Kearney Constant Velocity Tipping System and the automated tyre-inflation system, Tire Pilot.

October 2014 |FOCUS| 21

itoy exclusive

Just

lift it yourself

Correctly and efficiently loading and unloading a vehicle is an important consideration for transport operators. Irish commercial magazine, Fleet, published this report

T

he common purpose of all commercial vehicles is to load, transport and deliver goods, passengers or services. While problems can arise at any stage throughout the journey, problems and delays at the loading and unloading points are often the most frequent, and many of these problems are out of the operator’s control.

The solution may be for operators to take back control of the loading and unloading, by using their own vehicle-mounted handling equipment.

Lifting equipment allows a great deal of flexibility and can increase vehicle utilisation by reducing wasted time at each end of the journey. This makes the economic argument quite clear; if a driver can deliver immediately without having to wait for equipment to become available, hours can be saved over the working day.

However, as with most aspects of the transport industry (and lifting equipment is no different) there are the ups and downs, so to speak. The pros of flexibility must be weighed against the cons of extra weight, additional

22 |FOCUS| October 2014

maintenance and appropriate driver training to comply with health and safety requirements.

Interestingly, the fitment and use of lifting equipment is one that touches all sectors of the industry, from light vans to trailer operators, and includes the passenger transport sector.

With all transport equipment, what you intend to do with it deserves serious consideration, and with handling equipment there are many issues to consider – not least lifting capacity.

Lifting capacity is obviously important, though some transporters are finding that customers are under-declaring the weight of pallets, and that pallet sizes are increasing as customers try to save on transport costs.

This has the potential to be more than just a slight deception on the customer’s behalf – it can be inherently dangerous. If the stated weight exceeds the rated Safe Working Load (SWL) of the lift, the consequences could prove expensive at best, or in the worst case result in personal injury.

One thing new-dimension equipment providers have to deal with is the fitment of taillifts to double-deck trailers. While not the most common of applications, they are becoming

more frequent. In general the same rules and operational procedures apply. However, due to the increase in working height, any potential dangers and hazards are greatly exaggerated and, therefore, potentially more serious.

In the drive to save weight, increase payload and save fuel, rear-closure tail lifts have increased in popularity. Ballinlough Refrigeration has supplied the highly regarded DHollandia brand of tail lift products for almost twenty years.

Ballinlough’s Neil Bannon explains: “The main benefit of rear-closure models is that they eliminate the need for rear doors or a roller shutter. Because the platform itself becomes the rear frame and doors, it seals the cargo bay. Using the tail-lift platform as the rear frame delivers the weight reduction, and is of particular benefit for the weight-sensitive light commercials.”

Bannon adds: “The units are easy to fit and simple to operate, making them flexible and cost effective.” He also notes the additional benefits for vehicle security the rear closure model offers.

Another respected name in the supply of

itoy exclusive

tail-lift equipment is Zepro. TSS Refrigeration & Tail Lifts is the Irish agent for Zepro, and the brand has proved popular with operators due to its reliability and durability. The Zepro range will adapt to most regular vehicles on the market. TSS offers a wide range of accessories that will adapt the lift to an operator’s specific needs.

TSS’s Mark Grange says: “We always strive to reduce the weight of our products to keep the fuel consumption to a minimum, to save both money and to reduce the effect on the environment.”

Grange points out that regular maintenance is necessary to ensure trouble-free operation, as any downtime of the tail lift can mean downtime of the whole vehicle. “TSS provides a comprehensive parts service. We have complete archives to assist quickly and accurately with spare-part requirements,” adds Grange.

To reduce the risk of accidents, a driver or operator of truck-mounted tail lift should be correctly trained and certified on the specific piece of equipment. However, due to the wide range of vehicle attachments and operational environments, some training companies recommend that operators undergo training from the original equipment supplier. Their reasoning is that, because of variations in delivery points, it is almost impossible to cover all possibilities.

Another widely used type of self-lifting equipment is the truck-mounted crane. It has long been a regular feature in certain segments of transport, in particular on the construction supply side.

A global supplier of cranes across all industry sectors is Palfinger, which this year celebrated 50 years in business. The Palfinger product range covers small access platforms, tail lifts, truck-mounted and off-shore marine cranes.

The company offers a vast range of attachments for its cranes, which greatly widens the scope of applications for which any one crane (and therefore truck) can be used.

Seamus Kane of Palfinger Ireland notes: “The training situation for truck-mounted cranes is slightly different from some other transport equipment.” Palfinger also supplies a selection of truck-mounted forklifts and remotely operated lift trucks. The truck-mounted forklift is an alternative to a crane or tail lift.

Always having the ability to deliver the load can dramatically improve vehicle productivity.

Although the initial cost can be off-putting for some operators, the longevity of the equipment must be considered. In real terms the parttime operation cycle is generally not as tough as that experienced by a full-time forklift, in that a smaller percentage of the time is spent working.

Selecting the right model from a recognised company like Manitou (with its highly versatile TMT range) ensures the unit will remain in service for a long time. As a rule, once operated within its design specification, and provided the unit is properly maintained, it should operate trouble free over the lifetime of two or more of the trucks on which it is carried.

Moffett Engineering began manufacturing in Dundalk in the 1940s and changed the face of the transport industry when it mounted a small forklift to a truck in the 1980s.

The company is now part of the Cargotec Corporation.

The Moffett truck-mounted forklift became a synonym for this type of equipment and was an Irish engineering success on a global scale.

The three-wheeled units have a lifting capacity from 1,5 to 3,5 t. They can be equipped with a variety of attachments, which allow them to be used in almost every industry.

Within the Cargotec Corporation the Moffett brand sits alongside other company names such as Hiab, Kalmar and McGregor.

It is important to note that once a truckmounted forklift is detached from the carrying vehicle, it becomes a standard forklift under the general applications regulations, and is subject to the normal rules governing this type of equipment. Employers have an obligation to ensure that drivers are properly trained to operate the forklift.

The issue of correct maintenance is an important factor for all truck-mounted forklifts, cranes and tail lifts. Proper maintenance checks include the annual testing of equipment for correct operation of all components and a weight test.

One point brought to our attention is that, in addition to the annual test and certification, equipment that can carry a person (even inadvertently), should be serviced and checked tested every six months along with the annual test. All testing must be carried out by a recognised competent person.

All the major recognised brands of lifting devices appear to retain a high residual value and there always seems to be a market for well-maintained used equipment. In most cases lifting units can be transferred from one vehicle to another. Equipment that is operated within capacity, remains undamaged and is maintained correctly, can significantly add to a vehicle’s value.

For some operators (depending on the nature of the work) lifting equipment is an absolute necessity, as there is often no alternative method of unloading at the delivery point. The benefits of self-lifting devices, in terms of improved vehicle utilisation and driver productivity, can dramatically outweigh the investment. |FOCUS

As regular readers of FOCUS know, this magazine has been appointed an associate member of the International Truck of the Year (IToY)! FOCUS is the sole South African magazine to have joined this prestigious body. One of the advantages of this association is access to exclusive articles, specially written for FOCUS by ITOY jury members. This is one such article.

2014

October 2014 |FOCUS| 23

VEHICLE ?????

MAINTENANCE ?????

Managing maintenance

mayhem Vehicle maintenance – possibly two of the most loathed words in a transport operator’s world … but technology is helping to manage this menace, while parts are becoming “smarter”. JACO DE KLERK dives into the digital domain of augmented reality and finds that components are also doing their part to overpower this necessary “evil”

M

aintenance costs are one of the biggest expenses faced by transport operators as they have to pay for the actual service, replace affected parts and deal with the downtime. Technology is, however, helping to curb these overheads.

Savvy software Various systems are now available that monitor trucks while they operate, enabling preventative maintenance – with some even informing the workshop on what needs to be replaced before an operator is even aware that there’s a “problem”. Two examples can be found at the truck stables of Mercedes-Benz, with its Telligent Maintenance system, and Volvo, which offers Telematics Gateway.

The former takes cues from the actual wear and tear of the vehicle – calculating service dates for the engine, the transmission and the axle oil-change intervals. It also determines the dates for general service components – based on the operating conditions of the vehicle.

As we reported in FOCUS July: “This ensures optimum utilisation of operating fluids and service parts without risk to the service life or reliability of the engine and driveline.”

“Telligent Maintenance tells the driver exactly what needs to be serviced, and when. This leads to less time spent in the workshop. Effective usage of the system can realise a saving of up

24 |FOCUS| October 2014

to 14 percent in service costs.”

Volvo’s Telematics Gateway follows the same principals; a remote workshop monitors the parameters pertaining to the vehicle’s condition.

FOCUS assistant editor Gavin Myers elaborates in the report Viva Volvo! (FOCUS November 2013): “Fault codes can be read before a technician is sent to physically diagnose and repair a stricken vehicle, and servicing and maintenance can be scheduled in relation to the condition and use of each individual vehicle.”

A digital “how to” layered over reality The motoring world is, however, also filled with other “space-age” solutions to enhance vehicle maintenance … enter Mobile Augmented Reality Technical Assistance (MARTA) – an augmented reality service support for Volkswagen’s (VW’s) XL1, a diesel-powered, plug-in hybrid concept car (turned limited production) that consumes fuel at less than 1 l/100 km.

Today’s commercial vehicles are characterised by continually growing complexity.

This means that service employees will need more extensive support in servicing new vehicles and their innovative functions.

“This requires advanced development of the classic repair instructions that show the employee how to perform the tasks of the specific job, step by step, with relevant supplemental information such as the tools to be used, assembly configurations

and test specifications,” states VW. And this is exactly what MARTA does.

Using the built-in camera on a tablet device, the program displays the real and virtual parts, in three-dimensional relation to one another, while offering service information in real time. So the technician is led through the whole maintenance process with a virtual “how to” guide while he is doing the actual servicing, eliminating the need to take a break and go back to the repair instruction manual …

MARTA shows the possibilities that augmented reality could hold for vehicle maintenance!

Just imagine how this could speed up the training process, technicians could receive a whole new level of “on-the-job training”. Workshop processes could also be speeded up, as the program identifies exactly which tools should be used for each application and technicians would be able to work on models that they’re unfamiliar with.

A brighter tomorrow It seems that vehicle maintenance will be a lot less menacing in future; parts are being designed to speed up the process; systems are being implemented that inform a workshop when you’ll need what, before you even know you’ll need it; and augmented reality will be utilised to speed up whole maintenance process.

Bring it on you loathed duo … |FOCUS

VEHICLE ???????

MAINTENANCE ???????

Components doing their part

Components doing their part Original equipment manufacturers (OEMs) aren’t just combating maintenance costs by using some savvy software, they’re fighting it through the actual parts that they’re producing as well … MAN’s new 15,2-litre, sixcylinder, in-line D3876 engine is a stellar example.

It is said to be the top model in MAN’s Euro-6 engine range – with torque from 2 500 to 3 000 Nm, and power output between 520 (around 380 kW) and 560 hp (around 410 kW) for long-distance and towing vehicles, and 640 hp (470 kW) for heavy-goods vehicles.

The maintenance magic isn’t due to its power output, but is a result of how it’s been designed. Development of the D3876 was, reportedly, monitored at an early stage by experts from the company’s Service Engineering department, with the aim of achieving the most maintenance and repair-friendly design possible.

“For example, the valve train is accessible without prior removal of the air filter,” MAN relays. “Also, the extended diagnostic capability of the injection system provides more detail and hence reduces workshop effort.”

Things didn’t stop there. In certain assemblies, MAN also used proven components from the D20/D26 engine series; including the fuel filter, oil filter module and oil separator, the coolant pump, throttle valve, control cylinder for the exhaust gas recirculation system, the fan drive, auxiliary drive, alternator, starter and air conditioning compressor.

“This has enabled the company to incorporate the servicing and repair friendliness of the smaller engines into the 15,2-litre engine,” states the OEM. “And it is also a sound basis for straightforward parts provision.”

Original equipment manufacturers (OEMs), however, aren’t just combating maintenance costs by using some savvy software, they’re fighting it through the actual parts that they’re producing as well …

MAN’s new 15,2-litre, six-cylinder, in-line D3876 engine is a stellar example.

It is said to be the top model in MAN’s Euro-6 engine range – with torque from 2 500 Nm to 3 000 Nm, and power output between 520 hp (around 380 kW) and 560 hp (around 410 kW) for long-distance and towing vehicles, and 640 hp (470 kW) for heavy-goods vehicles.

The maintenance magic isn’t due to its power output, but is a result of how it’s been designed.

Development of the D3876 was, reportedly, monitored at an early stage by experts from the company’s Service Engineering department, with the aim of achieving the most maintenance and repair-friendly design possible.

“For example, the valve train is accessible without prior removal of the air filter,” MAN relays. “Also, the extended diagnostic capability of the injection system provides more detail and hence reduces workshop effort.”

Things didn’t stop there. In certain assemblies, MAN also used proven components from the D20/D26 engine series; including the fuel filter, oil filter module and oil separator, the coolant pump, throttle valve, control cylinder for the exhaust gas recirculation system, the fan drive, auxiliary drive, alternator, starter and air conditioning compressor.

“This has enabled the company to incorporate the servicing and repair friendliness of the smaller engines into the 15,2-litre engine,” states the OEM. “And it is also a sound basis for straightforward parts provision.”

October 2014 |FOCUS| 25

FOCUS ON EHCVs

Extra-good news for extra-heavies

FOCUS speaks to a few local original equipment manufacturers about the current status of the local extra-heavy commercial vehicle (EHCV) sector

H

aving thus far grown 8,9

Rory Schulz, acting MD of UD Trucks

The segment, says Schultz, should

it

Southern Africa, concurs, noting that

continue showing above-average growth,

EHCV

the company forecast only 4,5 percent

driven mainly by the recovery in mining, long-

growth

haul and construction (energy, road, rail and

percent

year-on-year,

appears

the

local

sector is set for another year

in

this

segment

segment.

has

of solid performance. This is good news for

the

the sector as this major, positive trend is set

performing

eight

That’s not to say the year so far has

to continue.

percent growth), so far this year,” he

been smooth sailing. It’s been something of

well

been

“However,

(at

six

consistently to

water related).

“We’ve witnessed continual growth in

says, indicating that a backlog (following

“a double-edged sword”, notes Brunninger.

the EHCV sector since January 2013, so

recent strikes in the platinum sector)

“Even though we’ve seen good performance

it’s a very positive trend in the market

should drive the segment, currently

from Freightliner and the EHCV market as a

currently,” notes Jason Brunninger, national

numbering around 8 087 units, for a few

whole, it’s been challenging as the market is

sales manager at Freightliner.

more months.

directly affected by foreign exchange rates

26 |FOCUS| October 2014

FOCUS ON EHCVs

– it’s continuously about overcoming those

of Euro-5 implementation to 2020, fleet

“A lot of freight is being consolidated now

challenges. In the last two years we’ve seen

replacement cycles will be influenced towards

and moved in bulk rather than by individual

depreciation with the rand/dollar, euro,

the end of the year and going into 2015.

operators

kroner and all the major currencies.”

with

smaller

applications,”

“‘European’ fleets will see the biggest

says Brunninger. “I think that is having a

Schultz explains that external factors–

impact. Operators will probably hold onto

considerable influence on EHCVs at the

such as slow economic growth, widespread

current vehicles in anticipation of replacing

moment as well – if you look at medium

labour unrest, rising interest rates and

them with Euro-5 vehicles during the next

commercial vehicle (MCV) and HCV sales,

inflationary pressures– continue to dampen

two years … This will not happen anymore,

their growth is not as positive.”

growth in the local truck market.

so they might as well replace vehicles in the

Schultz adds yet more food for thought

Why the big upward trend within the

immediate future and plan to replace them

to the mix, stating that the growth in the

EHCV sector, then? Brunninger says: “Some

again when the new emissions legislation

EHCV market so far this year is also due

of the current purchasing is possibly the

does come in.”

to continued spending on infrastructure-

result of replacement cycles. The last major

Another

to

related projects. Government has spent an

year for sales was 2008, which is in line with

consider is the drive to improve efficiencies

estimated R1 trillion over the past five years

a general five-year replacement cycle that is

and the recent trend of consolidation of

in this sector, and a further R847 billion is

also driving sales this year.”

freight – something which (as we reported

budgeted for infrastructure construction

last month) is affecting sales in the heavy

over the next three years. “Truck models that

commercial vehicle (HCV) sector.

are suited to supporting the development of

Schultz expands with an interesting observation: “Due to the postponement

very

important

factor

October 2014 |FOCUS| 27

»

FOCUS ON EHCVs

these infrastructure projects will continue to

has also now, for the first time, been

industry, which could once again have a

sell well,” he enthuses.

included in the state budget. This bodes

positive impact on the potential growth of

“Gross Fixed Capital Formation, or GFCF

well for the development of a number of the

the market,” he says.

– the new value that is added to the economy

Strategic Infrastructure Projects identified

– is set to increase slightly during 2014,

by government,” adds Schultz.

Whichever why you dissect it, the market certainly is showing great resilience.

with the main gains coming from several

These include 18 projects ranging from

Brunninger sums it up thus: “The nature

construction and infrastructural projects,”

geographically focused developments, to

of transport is that product needs to be

he continues.

social infrastructure, knowledge, water

moved on road and thus we’re seeing

“Government’s New Development Plan

and sanitation. “Most of these projects

a positive trend in our sector and our

(NDP), although it met with mixed reactions,

require heavy involvement by the transport

segment.” |FOCUS

The South African extra-heavy sector is expcted to continue showing above-average growth.

28 |FOCUS| October 2014

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October 2014 |FOCUS| 29

focus on FMCG

Making FMCG

move faster Success in the fast-moving consumer goods (FMCG) environment is sensitive to issues such as order size and frequency, traffic congestion and vehicle use. GAVIN MYERS explores an innovative modelling technique that could turn these hurdles into measurable gains

A

ccording

to

Quinton

Heerden

–

an

van

industrial

actual transporter in the Nelson Mandela

representative of freight movements,” he

Bay region.

explains.

engineer and researcher in

“Freight vehicles are considered a minority

This form of modelling (also currently

spatial planning and systems,

road user group in transport models, even

being developed in Germany) has multiple

at the Centre for Scientific and Industrial

though their impact on pavement damage

benefits; including increased efficiencies

Research (CSIR), for commercial vehicle

and emissions is disproportionately large.

for the transporter through far more

transport modelling – commercial vehicle

Consequently, decisions to fund multi-billion

detailed analysis of its business and vehicle

movements are the result of decisions and

rand projects are often based on sub-optimal

movements. It also allows government to

interactions between different stakeholders in the supply chain. It is these decisions that affect the efficiency of the supply chain and the eventual costs of getting the goods to the end consumer.

Between 2011 and 2013, says the 2013 CSIR State of Logistics survey, transport accounted for 61 percent of the costs of

This form of modelling has multiple benefits; including increased efficiencies for the transporter through far more detailed analysis of its business and vehicle movements.

logistics – with 88 percent of freight in South

models that are not really representative

make better decisions for infrastructure

Africa being moved by road. It stands to

of the movements of freight vehicles,” says

spend.

reason, therefore, that increased efficiencies

Van Heerden, noting that collaborative

For the case study, Van Heerden obtained

should help drive down costs.

At

the

Transport

recent

Southern

Conference,

Van

planning, forecasting, Just-In-Time deliveries

the subject transporter’s distribution data for

African

and economies of scale all influence the

analysis. The receivers (customers) included

Heerden

frequency with which vehicles move and when

in the study were situated around the Eastern

orders are delivered.

Cape.

presented a new modelling system that he has been developing, for the FMCG sector,

“We want to understand the stakeholder

In order to run the simulations, the

which aims to do just that. The system is

interaction in a supply chain, and capture this

sophisticated software required further

based on a case study conducted with an

behaviour in freight models that are more

information including a road network, agents

30 |FOCUS| October 2014

focus on FMCG

(public transport, private and freight agents

timeframe. To begin with, the carrier planned

lower, however, customers ordered larger

– including carriers and receivers) and

routing and scheduling for the specific day.

quantities and the total order size increased

configuration data with specific values, such

“Traffic congestion, for instance, has

as traffic counts. “We were looking at total

an effect on vehicle utilisation,” says Van

tonne-kilometres moved, operating costs,

Heerden. “We modelled three scenarios;

With this basic case study showing that

travel time and distance details as well as

between 07:00 and 09:00 and 16:00 and

a transporter’s behaviour is sensitive to both

which vehicles delivered which products to

18:00, reducing free speed to 60, 20 and

traffic congestion and changes by the receiver,

which customers,” Van Heerden says.

15 km/h.”

modelling could help the transporters to plan

by almost three tonnes!” Van Heerden exclaims.

“We took one product and looked at the

The carrier planned its routing and

behaviour of two different customers in terms

scheduling accordingly, using nine vehicles,

“They could introduce another distribution

of order frequency (number of days between

including one of each type. In the case of

centre to service other customers, depart

orders),” he explains. “One customer typically

the 15 km/h limit, the fleet couldn’t deliver

earlier, take different routes or use other

ordered twice a week, the other once a week.

all the products in time – as congestion

modes of transport,” says Van Heerden. “The

Order sizes also differed between the two

increased, more vehicles were needed to be

process should be repeated until all iterations

customers, with quite big orders from the

able to deliver all the orders. Interestingly,

are complete and the results can then be

one that was further away. You’d expect this

total distance covered did not differ much.

analysed.”

around these factors.

An open road such as this is but a dream in modern-day cities. Transport, therefore, requires careful and detailed planning.

to influence the type of vehicle used by the carrier.”

Customer order frequency was then

Finding the right balance will allow

considered to determine its impact on fleet

transporters to reduce the time and cost

Orders were dispatched from the

utilisation. Although it stands to reason, it

of delivering goods and modelling might

transporter’s distribution centre using a

was proved that the more frequent orders

even allow transport and road planners to

range of different sized trucks (each with

were of a smaller size – the transporter thus

make better decisions in key areas – at the

its own fixed and variable operating costs),

used smaller and fewer vehicles to fulfil these

end of the day saving the consumer from

operating during the 06:00 to 09:00

orders. “When the order frequency was

footing the bill. |FOCUS

October 2014 |FOCUS| 31

FLEET

MANAGEMENT Telematics makes the world go round for fleet managers and freight forwarders, but these systems might be wanting for the African continent … until now! Enter TelematicOne, an integrated, manufacturer-neutral portal for logistics service companies

I

t’s no secret that it’s sometimes very difficult to do business in Africa, as red tape can be found “around every corner” – especially when travelling regionally …

Michael Frans, head of business development for the automotive sector at T-Systems South Africa, agrees. “It is very frustrating to do business in Africa – when you go to Europe, you need one visa to get in and travel around the continent.” He adds, however, if you’re a Cameroonian in Africa, you need a visa to visit Kenya and do business there.

To illustrate his point further, Frans shines some more light on the matter from his own personal experiences (sharing it at the Transport Forum’s recent Special Interest Group meeting in Cape Town, themed: Regional Expansion: Overcoming logistical challenges to enable southern African supply chains).

Before he joined T-Systems – a German global IT services and consulting company, with the South African derivative being one of the most successful T-Systems companies outside of Europe – Frans was responsible for rolling out the Volvo Group’s dealer network for its truck operations in sub-Saharan Africa …

“When I’d meet dealers and undertake partnership negotiations with Angolan companies, we met in Namibia, because it is the one country for which both South Africans and Angolans don’t need visas,” he recollects – adding: “We Africans are really making it difficult for ourselves.”

Restricted movement isn’t the only thing plaguing African logistics, however, as data isn’t always readily available – making for some congested environments.

Anyone who has been to an African port (and this includes the one in Durban) knows how chaotic things can be. Congestion hampers efficiencies, but headway is certainly being made. “T-Systems has a global solution called TelematicOne. This system aggregates data between all the stakeholders in the supply chain – from the moment a consignment is loaded onto a ship to when it reaches the customer,” explains Frans.

So, instead of transport operators having data only from when they pick up a shipment, all the interested parties know exactly where the goods are – all of the time. “The idea is to create a portal for the presentation of logistics objects and for central data visualisation,” says Frans. “What this means, in English, is one platform, into which everybody pushes their data and then extracts what they need, allowing all users in the system to see their particular data throughout the region.”

He continues: “It isn’t just about picking up a consignment at the harbour and knowing when it is on the truck, before I can give you all the information about that shipment … it is about when the ship is going to dock, when it is going to be offloaded, when the truck needs to pick up the consignment and then push it through to the customer.”

Frans says: “T-Systems believes that the aggregation of data is important to ensure efficiency and better communication, planning and execution – but confidentially is still key.

T-Systems is part of Deutsche Telekom – and Germans are fanatical about governance and data integrity and security,” he reassures. “So we follow and comply with those legislative rules that are already written. We are probably going to wait a while for our own government to put

those legislative processes in place and then manage them.”

The system was also piloted in Germany, in the Port of Hamburg. “Here we created a cloud, which is an IT term for a data centre that everybody can plug into and use the information – no matter where you are. We provided the infrastructure and we feed the system with up-to-date information that enables users to make smarter decisions.”

The system also has the potential to plug into various telematics systems – it could be an aftermarket system, such as Ctrack, or an original equipment manufacturer’s own unit. “It also doesn’t matter what hardware you use, be it a Samsung tablet, iPad, or a monochrome cellphone with SMS technology,” Frans points out. He says that the data can also be presented in different formats – depending on what you would like to know.

TelematicOne also includes non-traditional supply chain stakeholders as T-Systems aims to include the cities that are part of the logistic cog. “For example the City of Cape Town, which is in the process of bumping up its smart status,” explains Frans. Here the city can feed information into the cloud and drivers can see on their devices what is happening around the port.

This system really is a one-stop shop for the data needs of the whole supply chain, as all the interested parties have access to everything that they need to know about their consignments – from delays at sea due to weather, to the time it will take to get to the port by road in current traffic. This intermodal traffic management system has the potential to save time and money across the southern African region. |FOCUS

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October 2014 |FOCUS| 33

plant visit

Build a truck,

race a bike Having taken over the General Motors (GM) Kempston Road plant in Port Elizabeth (PE) last year, Isuzu Truck South Africa is also pedalling investment in the area by sponsoring an increasingly popular race.

GAVIN MYERS hops on his bike to find out more

W

ell,

really

and, ultimately, to the province,” says Isuzu

based on the premise of former president

remember the last time

I

can’t

Truck South Africa’s chief operations officer,

Nelson Mandela’s belief that education is

I got on a pedal-powered

Craig Uren. The PE to Plett mountain biking

the cornerstone for society. “The Diepsloot

bike … So, to be honest,

challenge afforded us the ideal platform to

Mountain Biking Academy does not only focus

the prospect of taking part in a 357 km “mini

support the region that is known as the home

on the sport, part of the initiative is that the

Epic” mountain bike race – no matter how

of Isuzu Trucks.”

children who attend must also attend extra

stunning the terrain – is not too high on my

Of course, that long, prosperous heritage

“things to do at my current fitness level” list.

stretches back to 1929! But more on that

Mercifully, Isuzu Trucks was kind enough to

later …

let me watch from the sidelines instead.

maths and English classes after all their rides,” he adds.

The company’s involvement in the race

The company also took the opportunity

also granted it a perfect opportunity to

Dubbed the PE to Plett mountain biking

to sponsor the PE to Plett teams under

show off its 44 000 m2 Kempston Road

challenge, this four-day event is now in its

the LumoHawk banner. Started by former

assembly plant.

second year and attracted close on 100 teams.

Springbok Joel Stransky, the LumoHawk

Following Isuzu’s majority share takeover

Isuzu Trucks was the title sponsor this year

charity channelled all proceeds raised from

of Isuzu Truck South Africa from GM last year,

(and is likely to be for the next three years).

the race (the teams also won a great deal of

R17 million was invested to consolidate all the

“Isuzu Truck South Africa has a long and

prize money) to assist the Diepsloot Mountain

assembly operations of Isuzu Trucks under one

prosperous heritage in the Eastern Cape

Biking Academy to build a BMX track in order

roof. This was aided by GM moving to a new

and is always seeking innovative ways to give

to attract younger children to the club.

facility in Struandale – having been located at

back to the local community of Port Elizabeth

34 |FOCUS| October 2014

Stransky notes that the foundation was

the Kempston Road facility for 85 years!

isuzu

Above and left: Isuzu Trucks has invested R17 million in its Port Elizabeth assembly plant.

Below: Sponsorship of the PE to Plett mountain biking challenge is one way Isuzu Trucks is giving back to its home region.

The result has been an increase in

120 trucks). Their contents are then sent to

According to Uren, for every N series

production, efficiency and, subsequently, a

the commodious 12 000 m2 warehousing

(the company’s local volume seller) produced,

rejuvenated workforce. Production has gone

facility adjoining the plant. (It actually has

at least 100 people are supported from

up from 13 to 20 trucks a day (4 500

enough space for 250 containers!)

an employment perspective. “As part of our

per year). Uren credits the consolidation

From there it’s on to the sub-assembly

brand and culture, you don’t just buy a truck

of the production lines and the aggressive

lines; for cab trimming and engine-gearbox

from us … we like to work as a team with our

implementation of the Kaizen philosophy

marriage (among others), that border the main

suppliers, customers and everyone connected

for this success. “We believe in Kaizen;

line. Seventeen medium and heavy chassis are

to the economy of a truck,” he says.

it’s powerful and it works,” he says. “We

prepped on another line each day, while three

have managed to decrease wasted time

extra-heavy units are done on yet another.

by increasing optimal working conditions, benefiting our employees.”

“If we can grow the market and put more trucks into the economy, we’ll employ more

Once all these components are ready,

people. We need to put cost-effective vehicles

they meet on the main assembly line, where

into the market that generate volume and

Run by Masakiyo Arai, executive for

a complete truck rolls off every 20 minutes. It

make a difference in the economy,” he adds.

manufacturing and engineering, and Sipho

doesn’t end there, though, as rust protection

With this attitude and the provisions made

Sandla, truck plant manager, the plant

is applied to the chassis and components

for increased volume from the Kempston

currently employs 110 people and adheres

before the vehicle passes through a final

Road plant, it’s clear that Isuzu Truck South

to ISO 9001 and ISO 14000 standards in

testing station. Each vehicle’s testing records

Africa is not only intent on giving back to its

assembling the N, F and FX series trucks.

are kept for over 15 years, as are its quality

home community, but to the country at large.

control reports garnered from multiple points

Maybe a national cycling challenge is in

Each week, 55 containers of truck components are received (enough to build

in the assembly process.

order? |FOCUS

October 2014 |FOCUS| 35

new vehicles

Rocking the establishment?

Ford Motor Company of South Africa is steadily expanding its local commercial vehicle offering.

GAVIN MYERS gets acquainted with its largest range to be introduced yet

I

t’s no secret that Ford is on a global charge with its commercial vehicle range. With its One Ford strategy forming the basis, models, such as the previously Eurocentric Transit range, are now being developed to tackle North America (we know the United States traditionally likes to do things its own way …) and other world markets. Happily, South Africa is bearing the fruit of this strategy as well.

Following the launch last year of the successful, “mid-range” Transit and Tourneo Custom models, the company launched the “full-size” versions during August – known simply as Transit and Tourneo. Next year will see the introduction of the “baby”, Volkswagen Caddy-rivalling Transit and Tourneo Connect.

The latest range consists of six new derivatives – a Transit panel van in medium wheelbase (MWB), medium-roof and extended long-wheelbase, and high-roof (known as the Jumbo) configurations; a Transit chassis cab

36 |FOCUS| October 2014

featuring the same wheelbase options, both with low roofs; and the Tourneo bus, in 12-seat MWB medium roof and 18-seat Jumbo.

Each derivative is fitted with a version of the company’s 2,2-litre, four-cylinder Duratorq diesel engine, coupled to a six-speed manual gearbox. The different versions are also designed with both front and rear-wheel drive (RWD) configurations.

MWB Transits get 92 kW and 350 Nm in FWD; Jumbo versions get 114 kW, 385 Nm and RWD; while both versions of the Tourneo make do with 100 kW and 350 Nm, driving the rear wheels.

The spec sheets read impressively. Load volumes of the Transit panel van total 10 500 and 14 800 litres in the MWB and Jumbo versions respectively. Gross vehicle mass ratings for both van and chassis cab versions are 3 300 and 4 700 kg, respectively for MWB and Jumbo versions. Van payloads count in at 1 325 and 2 270 kg, while those

figures for the chassis cab models are 1 597 and 2 691 kg.

The chassis cab can be ordered from the factory with a R4 000 float (a bodyequipment mounting manual is available from the dealers), while the panel van models are accessed by split rear doors that open to 207° and a single, 1 300 mm left-hand side sliding door.

Aimed at shuttle services and schools, the bus features removable rear seats for wheelchair accommodation, opening rear windows and the option of rear airconditioning.

I was able to sample the MWB chassis cab and panel van (which both require a normal code 8, or EB, licence) as well as the Jumbo panel van (that needs a code 10, or C1, licence) at the launch event.

All versions have a comfortable, functional cabin for the driver and two passengers. In addition to the usual parcel shelves, electric

new vehicles

Below: Alley docking the Jumbo model using only its reversing camera was a cinch.

Bottom: The chassis cab model is smooth and comfortable on road.

windows and 12 v power sockets, other innovative features include 92 litres of under-seat storage, a tray and storage compartment in the middle seat back, and an integrated phone holder in the driver’s door. This is designed to keep the phone out of reach so that the driver can only use the standard Bluetooth hands-free system.

A full suite of safety features includes ABS anti-lock brakes with Electronic Brakeforce Distribution; Electronic Stability Program, Load Adaptive Control, Roll Over Mitigation, Trailer Sway Control and Hill Launch Assist.

On the road, the chassis cab rides exceptionally smoothly and comfortably, even unladen. Each (including the Jumbo models), proved very wieldy and nimble around the obstacle courses Ford had set up for us to tackle.

A very interesting challenge was an alleydocking parking manoeuvre that we had to complete using only the Jumbo panel van’s optional reversing camera. It was a piece of cake – it even tells you exactly where to stop so that there is enough space to open the rear doors!

The new Transit and Tourneo range is priced from R359 900 for the Transit Single Chassis Cab 2.2 TDCi MWB, rising to R559 900 for the 18-seat Tourneo 2.2 TDCi. Both ranges are covered by a standard four-year/120 000 km comprehensive warranty, a five-year/unlimited km corrosion warranty and three-year/unlimited km roadside assistance. Service plans are offered as a dealer option. |FOCUS

October 2014 |FOCUS| 37

new vehicles

The next generation of the popular Fuso Canter has been launched locally. GAVIN MYERS attended and found the whole shebang quite LIFTing

T

he decision-makers at Daimler

points to South Africa’s poor fuel quality –

service costs. Regarding gearbox options, the

Trucks and Buses must’ve

the correct engine had to be made available,

Canter LIFT brings another first to the South

known they were on to a good

meaning other markets at the level of Euro 5

African market: a double-clutch gearbox. You

thing when, in 2003, the decision

or 6 took priority.

might have already fathomed that it’s called

was taken to buy equity in Mitsubishi Fuso.

The engine available in South Africa is

Ten years down the line, global Fuso sales

rated at Euro 3. It is essentially the same

Duonic – and it’s a rather clever piece of kit.

Unlike a conventional automatic or

accounted for 37 percent of Daimler’s total

three-litre, 16-valve 4P10 common-rail

automated-manual (AMT) gearbox, a dual-

truck sales …

turbodiesel unit as offered on the higher

clutch unit pre-selects the next gear so that,

Not only was 2013 a good year for

Euro-rated models, but without the Selective

when it is engaged, there is no loss of torque

the brand’s sales, but it was also the 50th

Catalytic Reduction and its required AdBlue

or any shift-shock – a boon for maintaining

anniversary of its Canter range; of which

urea solution.

momentum

when

lugging

around

a

there have been seven previous generations.

Five model options are offered at launch

And, now, the latest eighth generation –

with payload ratings ranging from 2,5 to

The Duonic offering is quite intelligent. It

known as the Canter LIFT (for Light-Duty

five tonnes: the FE6-130 manual (96 kW

features a maintenance-free wet clutch for

International Future Truck) – has landed on

and 300 Nm), FE7-150 manual and Duonic

reduced maintenance costs. There is an Eco

the African continent.

(110 kW and 370 Nm) and FE8-150 Duonic

mode that keeps a strict eye on engine revs,

in single and double cab (110 kW and

shifting earlier and keeping the engine in the

Having sold over 100 000 units, since originally launching in 2010, the LIFT enters the South African market with an impressive

heavy load.

370 Nm).

The engine is fitted with a three-stage

reputation. It was subject to three-million

exhaust brake as standard, and also

kilometres of testing, was the first commercial

features a new cartridge-type

vehicle to win a Car of the Year special

oil filter to improve

award in its home market last year and was awarded Ireland’s Best Energy Efficient Product Award.

At this point you may be asking why it took four years for the LIFT to arrive on local shores. The answer, according to Fuso product manager Duncan Prince, again

We have

LIFT-off 38 |FOCUS| October 2014

new vehicles

green band at all times. The transmission also

devices, the Duonic box shifts so seamlessly

Canter LIFT rides exceptionally comfortably.

has a creep function for easy parking and the

and smoothly that the only indication of this is

Standard wide-angle mirrors on the larger

driver can shift gears manually if required.

the continually lowering revs. In Eco mode it

models make for easy manoeuvrability.

The gear lever has been relocated

shifts into the highest possible gear without

The company says that safety, driver

to the dashboard; one of the numerous

delay and rides the engine’s torque plateau

comfort, extended reliability, high durability

improvements

to maintain momentum.

and low cost of ownership are what make

the

Canter’s

interior

has benefited from and one that allows

Braking is strong thanks to the exhaust

the Canter so popular. We were able to

comfortable seating for two front passengers.

brake and dual-calliper disk brakes fitted all-

experience the first two and, to prove

A “multi-info” display takes centre stage in the

round, these aided by the ABS anti-lock system

its seriousness about the rest, Fuso is

Clockwise from left: Good looking and easy to drive, the Canter LIFT is also comfortable and spacious in single and double cab. Godfrey Hani, head of Fuso Trucks SA, says the launch of this vehicle is a defining moment for the company. instrument binnacle, conveying all manner

with Electronic Brakeforce Distribution. Fuso

of pertinent information to the driver. The

has also fitted as standard front and rear

up to 25 000 km and a two-year unlimited

cab also gets a driver’s airbag, enhanced

stabiliser bars for better chassis stabilisation

kilometre bumper-to-bumper warranty.

storage capacity, power windows, central

with a heavy load.

locking, air-conditioning and a radio/CD with two speakers.

offering the LIFT with service intervals of

Pricing is also exceptionally keen, the FE6

Although the launch units were fitted

starts at R295 000, while the FE8 Double Cab

with bodies, they were unladen, so the effect

rounds the range off at R403 000. Clearly

On the road the Canter lived up to its

of this suspension improvement wasn’t

the Canter is not the best-selling truck in the

promise of an easy drive. Left to its own

apparent. However, it can be noted that the

Daimler stable without good reason. |FOCUS

October 2014 |FOCUS| 39

focus on rtms

R

ogan Brent, managing director

Practically, this smoothed the road

Still, this accolade is not to be sneezed

of Manline Mega, is a man

to RTMS accreditation – because this

at – otherwise there would be scores of

on a mission – he wants to

industry-led,

abnormal trucks proudly brandishing the

government-supported,

lead the way in the abnormal

voluntary, self-regulation scheme is, after

loads industry and says that Manline Mega’s

all, about doing things right and sticking

To all intents and purposes, Manline

accreditation

commitment

to the rules of the road. As one of the

Mega sprang out of the RTMS running

continuous

founders of RTMS, Paul Nordengen, from

blocks in June last year, when the company

improvement, governance and sustainability.

the Centre for Scientific and Industrial

(previously called TCS Logistics) was

With depots in Durban, Johannesburg,

Research (CSIR), explains: “RTMS is not

acquired by Barloworld Transport.

Harare and Lusaka, Manline Mega is a

rocket science. It’s about doing things the

substantial player in the market. It runs

right way.”

to

shows

operational

its

excellence,

distinctive yellow RTMS logo.

As Adrian van Tonder, chairman of the RTMS national committee and senior

50 trucks (Mercedes-Benz and Volvo; soon to be exclusively Mercedes-Benz) with the capacity to move a maximum payload of 90 t. A total of 20 new trucks are on order to cope with growth and, by the end of October this year, the entire fleet will be under a year old.

But back to the game in which Manline Mega participates. Abnormal transport has a rotten reputation – in some cases, deservedly so. Manline Mega, on the other hand, prides itself on being a reputable and ethical company. As Brent notes wryly: “I’m the world’s biggest worrier. I need to do things right – otherwise I lie awake at night.”

a mega

company’s mega commitment Manline Mega has made history! It is the first South African company dedicated to the transport of abnormal loads to have earned Road Transport Management System (RTMS) accreditation. CHARLEEN CLARKE celebrates this success at the company’s head office in Durban 40 |FOCUS| October 2014

manager

at

Barloworld

??????? ???????

Transport, notes, RTMS is a way of life

entire sector lift its game. And it’s clear

within the group. “We have the greatest

that the sector as a whole has quite a long

number of RTMS-accredited vehicles in the

way to go …

country. As a group, we are sticking our

According to Brent, abnormal transport

hands up and saying we are doing things by

is the most complicated and difficult sector

the book. We are voluntarily complying with

in the transport industry. “Customers

the rules of the road,” he explains.

rely on us to move their machines safely,

“RTMS is Manline Mega’s commitment to doing business the right way and the smart way. We will not play in this industry with anything other than 100-percent commitment.”

Now that the company has made history

reliably and ethically, but the environment

within the abnormal transport industry on

is complex and, unfortunately, filled with

this continent, Brent would

challenges. The risks are monumental and

like to see the

high-value loads are expected to move through Africa with no consideration for anything but price,” he reveals.

“Our RTMS is not a marketing or tickbox exercise. This is a statement to the industry, the public and the Department of Transport that we will be compliant. We will do it right and we will move the loads.

“RTMS is Manline Mega’s commitment to the public in South African and our neighbouring states that we are committed to doing business the right way and the smart way.

We will not play in this

industry with anything other than 100percent commitment to this system,” Brent stresses.

Can RTMS and its increased support from the industry make a difference within

this

industry?

We’d

bet

on it … |FOCUS The Manline Mega team celebrates its RTMS accreditation. RTMS contributes to preserving road infrastructure, improves road safety, ensures driver health and well-being and improves productivity. Pictured from left are: Andrew Nicholson (Barloworld Transport), Paul Nordengen (CSIR), Rogan Brent (Manline Mega) and Adrian van Tonder (Barloworld Transport).

October 2014 |FOCUS| 41

PMA

making a

splash The annual Professional Movers Association (PMA) Congress delivered a mix of fun and business for its delegates. TONY MILLS reports

T

and

Friday morning saw the business side of

Casino, in Port Elizabeth, was

the congress take place in the conference

the venue for the 2014 PMA

hall. Delegates were entertained by two

In the evening, a trip around the bay on

Congress.

Port Elizabeth,

motivational speakers; Myan Subrayan,

board the cruise boat, the Jester, included

known as the “windy city”, contradicted its

with his “Never give up – the best lies

the “Pirates of the Caribbean” dress-up

reputation and gave the delegates almost

ahead” presentation and Wolfgang Riebe

theme party, with splendid costumes worn

perfect conditions for the duration of the

who presented “Discover your magic”.

by the enthusiastic delegates. The prize

congress.

Both presentations were filled with humour

for the best-dressed couple went to Johan

and each carried its own message of

and Maryna Muller. Shaft Packaging kindly

inspiration.

sponsored the wine for the cruise. The only

he

Boardwalk

Hotel

Thursday, registration day, was followed by a Hawaiian evening, held at the pool deck, complete with a Hula Hula competition, kindly sponsored by PETport.

42 |FOCUS| October 2014

Sponsors were also given the opportunity to showcase their products and give

updates on the latest developments in the industry.

casualties reported were a couple of queasy tummies caused by motion sickness!

2 PMA

Numerous merit awards were handed out, the grand prize being a Mercedes-Benz Actros.

Above, clockwise: The Pirates of the Carribean cruise and Hawaiian evening showed that the removals industry knows how to have fun!

The traditional golf day took on an interesting twist. Numerous awards and special prizes were handed out.

antics on the green, it was evident that the

Biddulphs

International

was

also

desired mix of camaraderie and enjoyment

presented with a certificate in recognition

had been achieved.

for its loyal and longstanding support of

The prize giving was held later that

the PMA and its Congress.

evening at the “Phantom of the Opera Ball”,

Martin Oosthuizen delivered the PMA

sponsored by Mercedes-Benz, and what a

President’s report in which he highlighted

wonderful event it turned out to be! Once

the achievements made by PMA during

again, stunning costumes were on show.

the year.

Saturday dawned with perfect weather

Those not dressed for the theme were

Oosthuizen also gave a special thanks to

for the golfing event held at Wedgewood

impeccably turned out in formal evening

all the sponsors that supported this year’s

Golfing Estate, some 30 km west of Port

dress, giving the event an “oldie world”

Congress: Mercedes-Benz, MiX Telematics,

Elizabeth. Sponsored by MiX Telematics,

feeling.

AMI, Pets en Transit, Trudon/Yellow Pages,

the competition took on new rules of

During the evening, numerous merit

engagement. The golfers were responsible

awards were handed out to sponsors

for getting the ball from the tee to the

and partners, the grand prize being the

At the conclusion of the President’s

green; the non-golfers then took over and

presentation of a key for a Mercedes-Benz

report, sincere thanks were extended to

had to finish off with the putter.

Fuso, MSC, Volvo, PETport, Shaft Packaging and Boxlee.

Actros 1844 LS/36 for a three-month

Congress coordinator Catherine Larkin

Non-golfers were, therefore, more than

period, which was handed over to the lucky

and her amazing team at CVLC, for keeping

just spectators; they were participants

winner, Ian Pettey, by Mpho Nkhumeleni,

the event running smoothly and taking

sharing in the fun and excitement that goes

national sales manager, Mercedes-Benz

so much pressure off the PMA National

with the game. Judging from some of the

Truck Division.

Executive. |FOCUS

October 2014 |FOCUS| 43

LIGHT brigade

Transporting with the

transporter GAVIN MYERS puts Volkswagen’s Transporter Crew Bus through one of our most thorough reviews yet

N

ot very often do I get to put a light vehicle to the test so thoroughly that it could be considered actual work. The primary precluding factor: most commercial vehicles must carry some sort of load to be thoroughly evaluated. Working for a magazine (and not a transport entity) makes regularly finding such a load tricky. Seats and seatbelts make people movers the exception …

So I certainly got lucky when the delivery, to our offices, of a long-wheelbase (LWB) Volkswagen T5 Transporter Crew Bus coincided with my moving house. The Crew Bus attempts to be all things to all people. It has five comfortable, spacious seats and a separate load area. I could move the household contents, load in everyone lending a helping hand and put the vehicle through, possibly, the most thorough FOCUS LCV review yet.

The passenger and load compartments are separated by a sturdy metal cage bulkhead, secured with six sets of nuts and bolts. Out it had to go; it’s possible for one person to do. Removal and installation would definitely be easier and less cumbersome, however, if it were fixed by a series of latches instead.

A simple pull of a strap unlatched the rear passenger bench seat so it could be to be tipped forward and removed.

We were now close to the maximum 6 700 litre load volume (up from 4 800 litres).

Incidentally, the load compartment measures

44 |FOCUS| October 2014

2 000 x 1 692 x 1 394 mm (1 244 mm between wheel arches); gross vehicle mass is 3 000 kg, gross combination mass is 5 300 kg and payload is 925 kg.

Loading and unloading through the two side sliding doors and standard rear tailgate was an easy affair. For commercial applications, though, the fitment of the optional side-opening rear doors (at R3 700) would be better suited and more convenient.

The vehicle’s floor is padded rubber throughout – fantastic to prevent damage to property – and six lashing points are fitted.

The front passenger compartment features numerous stowage spaces including double door pockets and a paper tray on the dashboard.

Our test vehicle was fitted with Volkswagen’s superb 132 kW, 400 Nm four-cylinder turbodiesel motor, à-la BiTDI Amarok. This sweet, smooth and powerful motor provides sustained urge throughout the rev range (max torque is produced between 1 500 and 2 000 r/min) and didn’t raise a sweat moving the multiple loads. VW claims fuel consuption of 8,2 l/ 100 km and CO2 emissions of 217 g/km.

It is coupled to a six-speed manual transmission, our version also sporting VW’s 4Motion all-wheel drive. The stretched wheelbase and traction from the 4Motion system ensures the vehicle is stable and surefooted. It rides exceptionally comfortably, too.

Visibility and manoeuvrability are very good for a vehicle this size (rear

park distance control is another option worth ticking).

The Transporter is fitted with an impressive array of safety features including: daytime running lights; dual front airbags; ABS antilock brakes with EBD (Electronic Brakeforce Distribution) and EBC (Engine Brake Control); ESP (Electronic Stabilisation Programme) with Brake Assist and Hill Start Assist; and traction control.

At R478 900, with a two-year/unlimited km warranty and a 12-year anti-corrosion warranty, it is a bit more expensive than rivals like the new Toyota Quantum Crew Cab, but on par with the Mercedes-Benz Vito. (Watch out for a similar competitor from Ford, expected around the time you read this.)

So, following a couple of days of thorough transportation work, how did the Transporter fare? It’s large, well spec’d, comfortable, and has a fantastic engine. Our main gripe is the cumbersome bulkhead and, locally, the 4Motion system really is superfluous. Nonetheless, it performed faultlessly.|FOCUS

N O W S TA N D A R D W I T H A 2 Y E A R W A R R A N T Y

??????? ???????

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GEA Refrigeration Africa (Pty) Ltd 19 Chain Avenue, Montague Gardens, 7441, RSA P.O. Box 36815, Chempet, 7442, RSA Phone: +27 21 555 9000, Fax: +27 21 551 4036 transport-sa@gea.com, www.gea.com

engineering for a better world

GEA Refrigeration Technologies October 2014 |FOCUS| 45

FOCUS ?????ON SHIPPING ?????

Harbouring success

Humanity has been crossing oceans for millennia, initially in search of new lands and later for trade … it’s no wonder that transporting goods by sea freight still plays a major role in the global economy. JACO DE KLERK casts his net wide to reel in the lowdown of the effects of this form of transport and its related activities

I

t is said that early human migration

“A massive sheet of ice, combined with

began when the pre-modern Homo

lower sea levels, formed a bridge between

Nonetheless, sea travels have etched

erectus first migrated out of Africa

Siberia and Alaska,” writes Ed Grabianowski, a

themselves into history with tales of the Vikings

over the Levantine corridor (a relatively

contributing writer for HowStuffWorks, in his

(who raided and traded from their Scandinavian

piece How Human Migration Works.

homelands across wide areas of northern and

narrow strip between the Mediterranean Sea

migration occurred in such a way.”

to the northwest and an expanse of deserts

“There have long been competing theories

central Europe), Christopher Columbus (whose

to the southeast) and the Horn of Africa to

that early humans crossed the Atlantic Ocean,

voyages led to the first lasting European contact

Eurasia – about 1,8 million years ago.

from Africa to South America, or via the

with the Americas) and Jan van Riebeeck (who

As for the Americas … it is noted on

Caribbean, or from Europe to Greenland and

established the initial Dutch settlement in the

HowStuffWorks – a site with nearly 40 million

then on to North America,” Grabianowski

future South Africa).

visitors each month – that, at the time, some

adds. “While it may have been possible to

These days, although it still plays a major

icy conditions helped humanity’s migrating

make such a trip using available seafaring

role, exploration isn’t the main purpose

endeavours into this region.

technology, it is unlikely that a large-scale

of seafaring. “Even in our modern, speed-

46 |FOCUS| October 2014

FOCUS ON SHIPPING

sailing from England to Singapore, resulting in

Walvis Bay we are seeing this effect already.

her book Ninety Percent of Everything.

The whole town is benefiting as a result of the

“You’d be surprised at how many people

growing shipyard.”

think that everything comes by aeroplane,

This isn’t the only economy that has been

which it doesn’t because it’s so expensive,”

influenced by the Cluster’s activities. The other

George tells Geiling when discussing the

example landed DCD Marine Cape Town and

public’s perception at large, during her

its client Saipem an award from the Western

interview. “Even a freight aeroplane can carry

Cape provincial government in recognition for

an absolute fraction of what a ship can carry.”

the recent work done on the Scarabeo 7 – a

The shipping industry isn’t only a cog in

semi-submersible drilling rig.

the global economy because of its freight

“It is an honour to be recognised by the

forwarding capabilities, however, as it also

Western Cape government for the hard work

serves as a massive employer …

and time that DCD Marine Cape Town has

The shipbuilding and ship repair industries, internationally, employ millions of people and thus have the capability to add substantially to a national economy.

Rob Deane, general manager of Elgin

invested to ensure that we put Cape Town on

Brown & Hamer South Africa (EBH SA), part

the global map as a rig repair destination of

of the DCD Marine Cluster (which includes

choice,” says Gerry Klos, general manager of

EBH Namibia and DCD Marine Cape Town),

the company. “The award also recognises our

notes that the shipbuilding and ship-repair

valued client Saipem for the role it has played,

industries, internationally, employ millions of

by bringing in this significant project and

people and thus have the capability to add

thereby boosting the local economy.”

substantially to a national economy. This is

The Scarabeo 7 project consumed a total

because of the forward and backward linkages

of 3,2-million man hours, brought in more

associated with job creation, also known as

than R1 billion in revenue to the province

the “multiplier effect”.

and created 1 193 jobs. It also provided

“It is not just about a shipyard creating jobs, it is the entire shipping industry supply

downstream

employment

through

the

subcontractors assigned to the venture.

chain that creates forward and backward

Alan Winde, Western Cape minister of

linkages in relation to job creation,” explains

economic opportunities, adds: “This project

Deane. “For example, if a growing shipyard

has delivered a massive boost to economic

requires more steel, the steel company will

growth and job creation in the Western Cape.

require more people, as will the steel mill and

The DCD Marine shipyard is an important

so on, all the way back to the mine.”

player in the province’s maritime industry and

driven and globalised economy, 90 percent

He adds that transport, fuel, electricity and

is attracting significant foreign investment,

of everything still travels as it did almost

administration will also all be impacted by growth

specifically in the rig repair industry, which is a

500 years ago,” writes Natasha Geiling on

and job creation. “The forward linkages relate to

key growth sector.”

Smithsonian.com – which looks at topics and

increased spend by employees on houses, fuel,

He says that the oil and gas sector employs

subject matters researched, studied and

electricity, water, and so on – which, in turn,

8 500 people, of which 3 000 work in rig repair

exhibited by the Smithsonian Institution (a

generates income in those sectors.”

and maintenance. “We are grateful to both

group of 19 museums and galleries and nine

One example, within the DCD Marine

companies involved in this massive project for

research facilities administered by the United

Cluster itself, is EBH Namibia’s investment in

the role they have played in helping to build a

States government).

infrastructure in Walvis Bay. “As long as there

sustainable local economy. The world-class

In her piece How the Shipping Industry is

is sustainable growth, the knock-on effect is

service DCD Marine Cape Town offers makes

the Secret Force Driving the World Economy,

job creation, not only for employees, but for

it an asset to the Western Cape.”

Geiling speaks to Rose George – an author who

subcontractors and suppliers as well – the

spent several weeks aboard a container ship,

impact is felt down the line,” says Deane. “In

Jan

van

Riebeeck

would

be

proud … |FOCUS

October 2014 |FOCUS| 47

FOCUS ON RAIL

Train-ing for tomorrow

It’s no secret; Africa is no longer the “Dark Continent” as it houses countries that feature some impressive economic expansion, but the “dark ages” did leave their mark … While Africa focuses on getting its rail transport back on track, the developed world is looking at ticketless travel, automated freight transport, maintenance drones and faster driverless trains by 2050

A

t the turn of the century, Africa was still referred to as the hopeless continent, but this has changed drastically over the past decade. Unprecedented growth rates are a dime a dozen.

Stellar examples can be found in subSaharan Africa, as the World Bank points out: “The region’s growth prospects remain favourable despite emerging challenges, such as weaker commodity prices and tighter global financial conditions. During the period from 1995 to 2013, the region performed strongly, with an average annual gross domestic product growth rate of 4,5 percent.”

The organisation adds that there are variations in economic performance across different groups of countries. “Within the ‘resource-rich’ group, the gap in growth between oil and non-oil countries has narrowed. At the same time, several countries within the ‘non-resource-rich’ group, such as

48 |FOCUS| October 2014

Ethiopia, Mozambique and Rwanda, have achieved sustained high growth rates for over a decade.”

South Africa is, however, one of a few countries with a growth rate lagging behind the levels achieved before the start of the global crisis. This ties in perfectly with what we reported in The transporter’s guide to Africa in June 2013 … Here Russell Lamberti, chief strategist at ETM Analytics – an independent consulting firm in Johannesburg – states that South Africa’s role as the gateway to the continent is being challenged.

“There is this perception that South Africa is the gateway to Africa for investors, but I don’t think that is true at all – in the modern world you can fly to Lagos or Nairobi, get all the information you need on the ground there, and do business,” he notes.

He adds that there are exciting developments taking place in eastern and western Africa while South Africa and the

southern African region are at risk of being left behind. “As it stands, South Africa is the most well-capitalised and sophisticated economy on the continent – with great institutions, a great banking sector and some great interest rates.

We don’t need to be told that South Africa is a more developed place than the Democratic Republic of Congo or Ghana, but the rest of the continent is changing more rapidly in terms of dynamism.”

All hope isn’t lost, however. We southerners are doing our part – especially when it comes to railway development, with “billions” making the headlines. One example is the TransKalahari Railway project, a 1 500 km heavyrailway line estimated at N$100 billion (R100 billion) that will link Botswana’s coalfields with the existing railhead at Gobabis in Namibia and, thus, Walvis Bay. Another is the R51-billion deal that the Passenger Rail Agency of South Africa (Prasa) and Gibela Rail Transportation – a

FOCUS ON RAIL

There are exciting developments taking place in eastern and western Africa while South Africa and the southern African region are at risk of being left behind.

joint venture led by Alstom and co-owned by local shareholders Ubumbano Rail and New Africa Rail – have for the supply of 600 commuter trains (3 600 coaches) over the next ten years.

This is but the tip of the iceberg of things to come, however, if you look at what the developed world has in mind … Arup – an independent global consultancy providing professional services in management, planning, design and engineering – has revealed a vision of the future of rail travel in light of trends such as urban population growth, climate change and emerging technologies.

Future of Rail 2050 foresees predictive maintenance of rail lines by robot drones; driverless trains travelling safely at high speed; freight delivered automatically to its destination; and smart technology able to interface with mobile and wearable devices to improve passenger experience and enable ticketless travel.

The report is based on developments from current Arup rail projects, as well as insight from Arup’s Foresight + Research + Innovation team (a multi-disciplinary group of researchers, scientists, academics, strategists and consultants) and global contributors.

The company has been involved in many of the world’s high-speed rail, metro and driverless train projects; including High Speed 1 (which connects the international high-speed routes between London and Paris and London and Brussels), the Heathrow Personal Rapid Transit system in the United

Kingdom, Cityringen Metro in Copenhagen, as well as the creation of Beijing South Railway Station and the redevelopment of St Pancras International Station.

With the increasing frequency of extreme weather events, the report looks at future construction and maintenance techniques to reduce travel delays and shape railway resilience.

It predicts intelligent robots building new (and retrofitting old) rail infrastructure. Swarm robotics, a theory based on swarm behaviour among ant and bee colonies, could see small robots working collaboratively on major railway repair and structural testing. Monitoring drones would enable rail operators to perform advanced maintenance on tracks, eradicating lengthy journey delays and line closures.

To further increase efficiency and speed of travel, Future of Rail 2050 suggests that automated systems will optimise the running time of passenger trains and increase the reliability and safety of the network.

Driverless trains, for example, would be in constant communication with one another with sensors embedded in rail infrastructure; travelling in close succession and responding in real time to their location on a given track.

On the freight side of things, Arup states that this activity is due to increase globally by up to 250 percent by 2050. The report foresees dedicated elevated platforms and underground pipelines to transport goods, freeing up rail and highway infrastructure for passenger travel.

Freight pipelines would, according to Future of Rail 2050, use intelligent aerodynamic pods and embedded sensors to provide an energy efficient and low-maintenance method of delivering goods in heavily populated urban areas.

However, even if things are freed up for commuters, intermodal transportation is the

name of the game when it comes to a smooth and convenient passenger experience. Rail needs to be fully integrated with other modes of transport … Arup says that greater internet connectivity will provide passengers with accurate, real-time updates on train times and connections to other transport modes, complete with optimum pricing.

Ticketless technology will also remove gate lines in stations. Authorisation to travel will be universal and payment processed automatically when the journey is taken, allowing a seamless connection between various modes of transport.

Future of Rail 2050 points out that this could be achieved through interoperable electronic passes (valid for trains, businesses, car sharing schemes and bicycles) or through personal accounts, which would authorise travel and automatically process payment – removing congestion at ticket barriers and eliminating unauthorised travel.

“The global urban population is growing rapidly and by 2050, around 75 percent of the world’s population will live in cities,” says Colin Stewart, Global Rail Leader at Arup. “This places huge pressure on transport infrastructure and resources, but also creates a significant opportunity for rail, which relies on passenger density to function most effectively.”

He adds: “The challenge will lie in juggling the responsibility of providing reliable travel for millions while simultaneously tailoring each journey for the individual.”

Stewart concludes: “However, by rapidly developing technology and taking bold steps to overcome capacity and cost challenges, through maximising efficiencies, the rail renaissance can deliver a future where rail is the backbone of our travel system, linking major urban hubs and feeding into multi-modal transport networks for the benefit of the passenger.” |FOCUS

October 2014 |FOCUS| 49

WORLD ON

????? ?????

WHEELS Poised for

greatness?

Connotations of the Middle East abound, but the region is also poised to be a significant transport and logistics hub.

It also offers its commuters some very interesting modes of transportation

H

ow

much

do

you

know

twice as tall as the Empire State Building!

commercial transportation provides for some

about the Middle East? You

What about the fact that 89 percent

probably know that the region

of the UAE’s population is made up of

Air transport is currently the subject of

has strong historical and

immigrants? Or that the country’s capital,

large investment in the region. According

religious significance; that it’s characterised

Abu Dhabi, is building a city with no cars,

to the World Bank, it plays an important

by constant fighting between the Israelis and

zero carbon emissions and a university that

role in the economies of the Middle East,

Palestinians and wars against the Iranians

will specialise in green technology? (As you

contributing US$ 116 billion (R1,2 trillion) to

and Iraqis; and that the endless deserts

may have noticed, the UAE has a lot to boast

the region’s gross domestic product.

of its oil-rich Arab states are dotted with

about …)

ultra-modern, nod-to-excess cities that are growing at a substantial rate.

fascinating reading.

In fact, according to the International

It would stand to reason, then, that the

Air Transport Association (IATA), the region

region’s transport make-up is wide and varied.

reported an increase in air freight tonne

But did you know that the region is

Well, if you can imagine it, then in the Middle

kilometres of 16,5 percent at the end of

made up of 18 individual countries; including

East, it will serve as some form of transport

2013 – well above the global average of

Bahrain,

and

… While the region’s location would make it

6,5 percent.

Turkey? Did you know that it is home to the

ideal for trade between north Africa, Europe,

Should you find yourself on the streets of

lowest point on earth – the Dead Sea – at

Russia and Asia, years of turmoil in many

Turkey or Northern Cyprus, you might decide

427 m below sea level; as well as the tallest

of its countries has hampered its transport

to travel by dolmus (pronounced dol-moosh).

building in the world: the Burj Khalifa in the

and logistics development in many areas.

These are similar to South Africa’s own

United Arab Emirates (UAE)? At 829,8 m, it’s

Nevertheless, delving into its commuter and

minibus taxis (packed to the brim, they too

Cyprus,

Egypt,

50 |FOCUS| October 2014

Lebanon

LD ON W

H

E

??????? ???????

E

W

OR

E

LS

LS

W

OR

LD ON W

H

E Marmaris (in This modern dolmus runs on a blue colour. its by e ifiabl ident Turkey) route –

like to stop wherever is convenient which, in

million tonne-kilometres of freight in 2010

such as the ancient Jordanian city of Petra,

some cases, is highly regulated in Turkey.).

and offering a comprehensive mainline and

for example.

These “share taxis” run set routes, which are

high-speed commuter service.

cleverly identifiable by the colours in which the taxis are painted.

There’s no doubt that transport in the

Of course, the region is not all desert,

region, ranging from centuries-old boats to

and travel by boat or ferry is often also an

modern air transport, is as varied as it

Formal bus services are, however, quite

option. The abra (a traditional boat made of

comes. The region is highly accessible by air,

a reliable and respectable form of transport

wood) provides a cheap and easy trip across

sea and land but, while it is moving forward

in the region, running regular local, long-

the Dubai Creek. Dhows in various forms are

in some pockets of excellence, as a whole it

distance and cross-border routes.

also a familiar sight in areas including the

requires massive investment to reach its full

Commuter rail services seem to be quite

Red Sea and Persian Gulf. Ferry services are

potential as the logistics hub it could be.

limited in the region, this mode of transport

widely described as “practical” … Of course, if

Global management consulting firm, Booz

predominantly serving freight. Some areas,

you find yourself at the Dead Sea, you could

and Company, notes that the region requires

such as Israel and the UAE, are rapidly

always just jump in and float across …

the development of a strong domestic

expanding their rail networks with a mix of light

Last, but not least, I’ll bet that one of

transport and logistics sector, a “strategic

and heavy rail, while neighbouring Jordan and

your first mental images when reading the

must for further economic development of

nearby Kuwait and Yemen have (respectively)

words “Middle East” was of camel-back rides

Middle Eastern countries” – its favourable

little and no rail infrastructure at all.

across the desert. Well, away from the main

location an opportunity waiting to flourish.

Turkey’s rail network is far more

centres, that is still an option … Camels (and

impressive though; transporting 9 000

horses) are very popular for tours in areas

Imagine then, what wonders might be to come in countries like the UAE … |FOCUS

October 2014 |FOCUS| 51

GLOBAL FOCUS

Truck manufacturers – who will

endure?

In his monthly review of global news for local truckers, FRANK BEETON takes a step back from his usual newsgathering to discuss the future prospects for global truck makers. Controversial? You bet!

B

ack in 2001, when preparing to write my first article on the global commercial vehicle industry, I did some research into its history. On consulting my copy of The Complete Encyclopedia of Commercial Vehicles, by Georgano and Marshall Naul, published in 1979, I discovered that more than 2 500 separate manufacturers had been active in the industry since 1886.

In more recent times, however, many formerly independent names have been absorbed into major groupings, while others just quietly slipped away. Pressures from low margins, intense sales competition, expensive compliance with ever-tightening environmental legislation, rapidly advancing technology and numerous global and regional economic crises, have caused a contraction in the number of participants – to the point where there are a great many less operating today.

One of the problems facing any commentator, looking at this industry from a global perspective, is the absence of a credible, independent, single source of information providing the absolute volumes of product

52 |FOCUS| October 2014

produced and sold by each manufacturer, or group of manufacturers. One of the reasons for this is the lack of unanimity on the definition of a “commercial vehicle”.

Ideally, we should be able to separate pickups (bakkies) and car-derived vans from broader analysis, but opinions differ widely on the parameters of light commercial vehicles (LCVs), with particular reference to the larger European integral vans and the Asian light trucks, which fit conveniently into the South African medium commercial vehicle (MCV) category.

One of the better reference documents that we have seen is KPMG’s Competing in the Global Truck Industry, published in 2011.

But the vintage of this study, and the fact that it only considers vehicles with a gross vehicle mass (GVM) of six tonnes and above, thus excluding significant chunks of the two categories mentioned previously, compromises its value to any 2014 commentary.

For this reason, we have decided to use the participant list from the South African truck market, as reflected in our Quarterly Reviews, as the basis for this analysis. In many ways, the local market is a microcosm of the global

market, although its very small size (around one percent of the world total) must always be borne in mind when considering the broader picture.

The one problem with using this methodology is that it largely ignores the rapidly growing importance of several Chinese manufacturers in the global context. However, we will make every effort to ensure that our comments and predictions reflect the global perspective. Please also note that we have used light, medium and heavy commercial vehicle terminology as the segmentation model in this review, which would approximate to South African medium, heavy and extra-heavy categories, respectively.

Daimler In terms of this particular article, the Daimler family is made up of Mercedes-Benz trucks, buses and vans, Freightliner trucks and vans, Fuso trucks, Western Star trucks, Thomas Built buses, BharatBenz trucks and Setra buses.

From most points of view, Daimler is held as the global leader in the commercial vehicle business, and its constituent brands cover all geographic regions and every segment of

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the global market. It has also adopted a policy of great transparency in the evolution of its global family, with no effort to disguise the interdependency of its brands, and the considerable mobility of products and components across these brands.

In recent years it has developed a successful rationalised global engine family for its heavyduty products, and this is being progressively rolled out across Europe, North America and Asia.

Daimler is a technology leader in the industry, and its most recent innovation is Future Truck 2025, which has been used to demonstrate autonomous vehicle technology in a heavy-duty truck application.

There can be little doubt that the Daimler family is fully committed to its commercial vehicle business, and has a well-established and clear strategy that should position it for continuity into the future.

Its biggest challenge, however, is likely to be maintaining its grip on industry leadership, particularly in the face of growing Chinese influence, both inside and outside of global alliances. To counter this, Daimler may well consider additional acquisitions of smaller companies to bolster its global throughput.

In January, 2009, Daimler announced that it was to establish a truck joint venture with Beiqi Foton Motor Company, and in February, 2012, the Chinese government issued a business licence for the two companies to commence operating the US$ 1 billion (R11 billion) 50/50 partnership now known as Beijing Foton Daimler Automotive Company, Limited.

Daimler had also established an earlier Chinese joint venture to build Vito, Viano and Sprinter vans with Fujian Motor Industry Group Company, and this has subsequently been renamed Fujian Benz Automotive Company.

Volvo Group In slightly more than a decade, Volvo AB has risen to become one of the most influential groups in the global commercial vehicle business – a process that is not yet complete.

In a complex series of acquisitions, share trades and cooperative arrangements, the Group has acquired a product portfolio that includes Volvo Trucks and Buses, Renault Trucks, UD Trucks, Mack Trucks, Eicher Trucks, Prevost Buses and Nova Buses, in addition to some marine and construction-related products.

Initially, the individual brands appeared to retain considerable independence, but this has

progressively evolved into a situation where component exchanges, particularly in respect of engines and transmissions, have become commonplace.

In 2012, the Group announced a new global structure, with clear lines of geographic responsibility allocated between the Americas (Mack), Europe/Middle East/Africa (Volvo/ Renault) and Asia Pacific (UD). This arrangement is apparently evolutionary, with considerable crossover between brands still evident, but recent developments have given strong hints that the strategy is taking hold.

Early in 2013, it was announced, in a highly significant move, that Volvo had paid US$ 890 million (R9,9 billion) for a 45 percent shareholding in Dongfeng Commercial Vehicles in China. This association was a logical progression, given that UD Trucks and Renault Trucks already had connections with Dongfeng, but the implications of a Group

be brought into the Volvo family by DFCV, the Group’s future seems to be secure, but we still anticipate some brand reshuffling to achieve a more even coverage of important market segments in the years to come.

Isuzu Isuzu Motors is the first independent manufacturer to be reviewed in this analysis.

A 45-year period of equity association with General Motors started in 1971, when GM bought a 34-percent shareholding in the Japanese company, and ended with the sale of GM’s last shareholding in 2006.

Today, cooperation between the two organisations only persists in some marketing and product joint ventures. The 5,9 percent Isuzu shareholding, purchased by Toyota following GM’s exit, is hardly large enough to be greatly influential, and has left Isuzu very much the master of its own destiny.

This group has enormous energy and potential, and may yet gather further manufacturers into its fold.

association included the creation of a potentially world-leading alliance (in 2010, Dongfeng was already at the top of the >six tonne GVM world rankings with more than 300 000 unit sales).

Recent media reports have suggested that the formalisation of this relationship is imminent, and its subsequent rolling out into the global environment will be of immense interest to industry observers.

During the past two years, Volvo has introduced some revolutionary technology into the commercial arena, including the first seriesproduction applications of independent front suspensions, and dual-clutch transmissions in heavy trucks.

The Group’s main issue, moving forward, appears to be over-concentration by its principal brands at the upper end of the payload spectrum. This has been exacerbated by the loosening of equity ties between it and the Renault-Nissan light vehicle alliance.

Although some cooperation still prevails, the ready availability of European van and Asian light-truck products from Renault and Nissan can no longer be taken for granted, and alternative sources for entry-level products, such as Eicher in India and Dongfeng in China, are coming more sharply into focus.

With the enormous critical mass that will

This Japanese manufacturer is a substantial business, having sold some 690 000 vehicles in the 2013 fiscal year, although this figure also includes pickups (bakkies). Nevertheless, Isuzu is a global leader in the light-truck market, has good coverage of the cruiserweight category, and a reputation for being a leader in diesel engine design and manufacture.

However, the operating characteristics of the domestic Japanese heavy-duty truck market calls for vehicles that differ somewhat from broader global standards of engine displacement, power output, drivetrain configurations, crew sleeping accommodation and payload capability. This makes it difficult for Japanese manufacturers outside global partnerships to provide competitive heavy-duty export products for overseas markets.

Isuzu’s business profile would, in our opinion, make it an ideal candidate for inclusion in a broader global alliance, and it is notable that, in 2011, the company acknowledged that it had held discussions with Volkswagen (VW) over possible non-equity co-operation, involving “pickup trucks, diesel engines and larger trucks”. Isuzu’s strong global position in light and medium trucks, and its continuing North American business – despite erstwhile

October 2014 |FOCUS| 53

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GLOBAL FOCUS

partner GM’s withdrawal from the heavier truck market – would fit snugly into the VW business model (discussed further on).

However, with VW’s well-publicised quest for global industry leadership, it is unlikely to team up with any smaller manufacturer on a purely cooperative basis, as this would reduce the benefit of incremental sales volumes being added to the VW family tally. We advise readers to be on the lookout for further developments.

Hino In some respects, Hino is in a similar position to Isuzu, being a Japanese-domiciled manufacturer, without international allies in the commercial vehicle industry apart from a residual connection to Scania, which currently involves support for the Swedish product in Japan, and some joint truck marketing in South Korea.

However, Hino differs radically in that it is positioned wholly within the giant Toyota family, and, as such, seems very unlikely to enter any partnerships falling outside of that area of influence, and is apparently not vulnerable to any takeover threats.

Hino is a strong participant in the global light and medium truck market, and has even produced its own unique products to suit the North American preference for bonneted cruiserweights.

Hino has also paid more than average attention to the heavy-truck arena, when compared to other Japanese competitors, with the development of double sleeper cabs as an example, but faces a similar lack of suitable high-power engine options to compete internationally with vehicles in this category sourced from Europe and the United States (US).

Future in-house development of such options seems unlikely, given the Toyota Group’s

The Volvo Group has become one of the most influential in the global commercial vehicle business.

54 |FOCUS| October 2014

massive concentration on the light vehicle categories, and the extremely high development costs associated with creating solutions to the stringent environmental requirements of First World markets. Although the buying-in of components from independent suppliers cannot be ruled out, this option does not seem to fit well with general Toyota family DNA. Volkswagen Group Although Swedish heavy-truck and bus specialist Scania is next in the South African pecking order, it is now common knowledge that this manufacturer has recently moved wholly within the Volkswagen sphere of influence, joining MAN Nutzfahrzeuge and Volkswagen Commercials to form another potentially world-leading alliance of commercial vehicle enterprises.

As currently constituted, the Group is strongly represented across most vehicle categories, including buses, in Europe and South America, while MAN has established a wholly owned medium/heavy truck presence in India.

In 2009, it also acquired a 25-percentplus-one-share interest in leading Chinese truck manufacturer Sinotruk (Hong Kong) Limited, part of China National Heavy Duty Truck Corporation (CNHTC), for €560 million (R8 billion).

In terms of the accompanying agreement, MAN licensed its TGA truck, engine, chassis and axle technology for inclusion into a new SITRAK

product series tailored to emerging markets, and undertook to provide Sinotruk with ongoing support for production and localisation.

The Indian and Chinese arrangements have plugged important gaps in MAN’s, (and, by extension, VW’s) geographic global coverage – although, up to now, only the Indian products have found their way into international distribution through the Group’s official channels.

Notwithstanding, the Group’s global product portfolio is still strongly biased towards heavy trucks, buses/coaches, and integral vans, with some medium-truck coverage in Europe, and strong light/medium truck participation in South America.

With Volkswagen’s well-publicised quest for overall global motor industry leadership, it seems likely that more comprehensive coverage of the global light and medium truck segments will be an early priority for the Group.

This is supportive of the contact with Isuzu, mentioned previously.

Isuzu’s great strength in these areas, and the potential benefit of its influence on VW’s Amarok pickup, are compelling arguments in favour of a VW/Isuzu alliance. In return, Isuzu would presumably obtain access to MAN/ Scania technology in the heavy truck arena, to the benefit of its HCV performance in markets such as Australia and South Africa.

In our view, these are still very early days for the Volkswagen Group’s truck empire. The recent finalisation of VW’s takeover of Scania

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will result in a higher degree of rationalisation between MAN and the Swedish truck maker than has been possible up to now, although this is likely to be well below the radar in terms of marketplace awareness.

The need to optimise market coverage may lead to some realignment of brand positions, and there is also potential to roll out the VW Brazilian Constellation and Volksbus ranges to a wider global audience, possibly using alternative branding. This group has enormous energy and potential, and may yet gather further manufacturers into its fold.

and seems fully capable of keeping its vehicle manufacturing subsidiary out of foreign hands. However, should Tata have ambitions to expand its export business outside of its present sphere of influence in and around the Indian sub-continent, South Korea and Africa, it may need to consider a partnership.

The Fiat/Tata relationship seems to have lost momentum, and Fiat Chrysler Automobiles is fully occupied with getting its own house in order, but some future cooperation involving Iveco still seems a possibility.

Tata Independent Indian manufacturer Tata Motors, which absorbed the Korean Daewoo heavytruck operation in 2004, has ploughed its own furrow in the commercial vehicle arena since shaking off the last vestiges of Daimler shareholding in 2010.

Tata established a diesel engine-building joint venture with Cummins in 1994, which enabled the replacement of some elderly Daimler-derived engine types. The Korean Novus heavy-duty range was subsequently extended downmarket to include cruiserweight models, powered by Iveco engines, reflecting the parent company’s car-building relationship with the Fiat Group. In 2009, Tata revealed its new Bertone-styled medium-to-heavy-duty Prima “World Truck” Series, to be built in both India and Korea.

Tata remains the dominant player in the Indian domestic market, but is facing increasing competition from global players, including erstwhile partner Mercedes-Benz’s indigenous BharatBenz products, the Volvo Group, through its Volvo-Eicher associate, and MAN. The Tata industrial empire is vast,

Iveco Global Focus recently reported on the emergence of CNH Industrial as a major global force in the mechanised world. To recap, the group is now the holding company for the Fiat empire’s capital goods manufacturing interests, and includes an agricultural equipment division (Case-IH, New Holland Agriculture and Steyr), a construction equipment division (Case Construction and New Holland Construction), and a commercial/industrial vehicles division (Iveco, Magirus, Iveco Astra, Iveco Bus (formerly Irisbus), HeuliezBus and Iveco Defence Vehicles).

It is also the home of FPT Industrial, the supplier of engines and powertrain components for automotive, industrial and marine applications to both Fiat-related and other independent brands.

As the commercial vehicle manufacturing member of this substantial family, Iveco would seem to have a secure future, and it also has an important opportunity to build business in North America in concert with Fiat Chrysler Automobiles. Parent CNH Industrial already has a substantial presence in North America, through its Case-IH, Case Construction and New Holland branded operations, so the addition of a commercial vehicle element should not be too difficult.

FCA’s Ram Commercial Truck operation has already absorbed some of Fiat’s European van

products into its line-up, so a move upmarket using Iveco or Astra products must be under consideration.

While the North American obsession with “conventional” or bonneted cabs will need to be taken into account, the existence of Iveco’s suitably configured PowerStar extra-heavy truck tractor in Australia provides one possible avenue to satisfy US requirements.

Although based in Europe, where it has a strong presence across most commercial vehicle categories, Iveco also has extensive operations in Asia and South America. In 2009, Iveco reportedly built and sold more trucks in China than in the rest of the world combined.

Iveco’s single-partner Chinese joint ventures include Naveco Nanjing, producing Daily vans and the Yuejin range of 3,5 to ten tonne GVM cab-over-engine models, SAIC-Iveco Hongyan (SIH) building Genlyon, Tampa and Hongyan heavy trucks, and SAIC-Iveco FPT Hongyan manufacturing engines.

The recently introduced Iveco Leoncino cabover truck design is built by Naveco to cover the GVM range from 3,5 to six tonnes, and is exported to Eastern European, Middle East and African markets.

The visually similar, but larger nine to 13 t GVM Iveco Vertis is built in Cordoba, Argentina, for the Latin American market, while the heavyduty on-road Iveco 682 tractor, recalling an iconic Fiat model name from the past, is a tailored edition of the Chinese SIH Genlyon, for Chinese and international markets.

Iveco also recently announced an aggressive move into the South American passenger vehicle market, using a full range of bus and coach chassis built at Iveco’s plant in Cordoba.

With these extensive offshore operations, and the strength of CNH Industrial behind it, Iveco looks well positioned to survive and expand its operations in markets where it is presently under-represented.

October 2014 |FOCUS| 55

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FAW This Chinese group is a substantial business by any standard, with annual production running at nearly three million units, many of which carry the branding of joint-venture partners including VW/Audi, General Motors, Mazda and Toyota.

Unlike its own light-vehicle operations, and a number of rival Chinese truck manufacturers, FAW has chosen to keep its truck business separate from joint ventures with foreign partners. This has probably delayed progress to some extent in the export market, but it has left the company the master of its own destiny.

The recent opening of an assembly plant at Coega in the Eastern Cape, following a 20-year presence in South Africa, is indicative of its determination to succeed.

FAW’s product line-up is extensive, covering most market requirements, and, in our opinion, the group is destined to become a major force in the global commercial vehicle industry over time.

Powerstar Beiben-Truck, the Powerstar product source, is a much smaller vehicle-building operation than FAW, with annual production at around 40 000 units, these being primarily heavy-duty trucks.

However, it is part of the huge and highly diversified Norinco Group, which is also heavily involved in armaments and military equipment manufacture. This association may be sufficient to insulate Beiben from the Chinese Government’s oft-repeated call for greater consolidation of its domestic motor industry.

AMH/AAD This group is the South African representative of South Korean manufacturer Hyundai, and its Kia subsidiary. The Hyundai family participates across all sectors of its domestic Korean commercial vehicle market, including

56 |FOCUS| October 2014

buses, but its export activities are currently concentrated on HD Series light trucks shipped to neighbouring South-East Asian countries, Australasia and Africa.

Some Hyundai coaches were shipped to South Africa for use during the 2010 Soccer World Cup, but, despite their continuing presence, there has been no apparent follow-up attempt to capitalise on those initial sales.

The Hyundai family is growing as a global vehicle manufacturer, currently being ranked number four in the world pecking order, but there has been little indication, up to now, of any ambition to pursue a similar growth trajectory for its heavier commercial vehicle activities.

The recent announcement of local South African assembly of HD Series trucks for the African market, however, may be an early sign that corporate strategic thinking is shifting in that direction.

Fiat/Peugeot/Citroen These three European-style integral van manufacturers are primarily major players in the light vehicle arena. Their futures are, therefore, not substantially dependent on the commercial vehicles that fall within the parameters of this article, so we will not venture any comment on their prospects for survival in this context.

DAF Babcock DAF in South Africa is the sole representative of Paccar, the only remaining US-controlled family of multi-national truck brands. The group currently consists of Peterbilt, Kenworth, DAF and the last vestiges of the once mighty Leyland truck empire, although this name now only adorns Paccar’s UK assembly operation.

Paccar’s main areas of interest lie in North and South America, Europe and Australasia.

Notably, the Kenworth brand is the long-running leader in the Australian heavy-duty segment, while DAF is a market and segment leader in a number of European countries, including the United Kingdom.

In terms of vehicle size, the Paccar product range is biased towards the upper end of the payload spectrum, although DAF medium trucks do well in the markets where they are sold. The group, however, has no presence in the light truck and European van areas of the global market. Whereas the American brands have traditionally embraced the “kit truck” philosophy using bought-in driveline components, recent efforts to popularise Paccar’s own DAF-designed engines have met with some incremental success.

Paccar’s business profile suggests that possible suitors looking for cooperation or outright acquisition cannot be ruled out, and there have been recent rumours that the omnipresent Volkswagen is showing some interest. Predictably, these have been denied on both sides, but VW’s hunger for global leadership does tend to increase the frequency of such reports.

Paccar’s trend towards increased in-house component sourcing, and the headlong industry race to greater complexity in First World markets will, however, place additional financial burdens on this traditionally profitable group, so its future may depend on fair winds in its principal markets, which have not been too prevalent of late in Europe. Our position would be to put Paccar on watch for further developments.

JMC Jiangling Motors Corporation is another Chinese enterprise, which builds around 200 000 passenger and light commercial vehicles per annum. However, it has gained

The Constellation from Brazil may extend its global footprint as Volkswagen’s truck strategy rolls out.

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October 2014 |FOCUS| 57

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significance recently through its association with the Ford Motor Company, which now holds a 32 percent shareholding in JMC. Regular readers will recall our earlier reports of Ford’s apparent renewal of interest in the truck business, through activities in South America and Turkey. In April 2013, it was announced that Ford Otosan (Turkey) had licensed Ecotorq engine technology to JMC, and its affiliate JMC Heavy Duty Vehicle Co., Limited, for use in domestic Chinese and export commercial vehicle applications.

candidate, but the VDL Group has diversified into other areas such as the contract mass assembly of light vehicles for major car brands, so its future is not wholly dependent on bus and coach sales.

International Although not ranked in the South African market since the third quarter of 2013, Navistar International Corporation is the elephant in this particular room, and we need to include the American manufacturer in this discussion.

Hyundai is a rapidly growing force in the global car market. What’s in store for its trucks?

Notably, the two companies have cooperated in the Chinese production of Transit vans since 1995, and it follows that any expansion of Ford’s trucking revival outside of South America, the Middle East and China may well involve a pivotal role for JMC. VDL VDL Bus and Coach is a specialist manufacturer of bus chassis and fully built buses and coaches, producing much smaller volumes than the other manufacturers covered in this survey. VDL’s bus chassis manufacturing division has its roots in DAF’s formerly spun-off bus operation, and it still draws some major components from Paccar.

As a stand-alone commercial vehicle entity, VDL would appear to be an obvious takeover

We have frequently expressed our dismay at International’s sudden, and largely unexplained, disappearance as a vehicle supplier from the local truck market. This highly respected brand has been present in this country for nearly a century, and, until last year, it still maintained a significant presence, especially in the extraheavy commercial vehicle (EHCV) segment.

We fully understand the difficulties which afflicted Navistar’s pivotal engine manufacturing business in North America, and its need to stabilise its home business, but we do not understand why it has continued to develop new Caterpillar-branded products for Australia, where it had a minimal market presence, while seemingly abandoning the South African market where, in a good month, it regularly sold 100 units or more!

On the surface, Navistar International looks ripe for a takeover, and there have been rumours of predatory interest, once again from VW, which already has a link through MAN’s 2008 licensing agreement that has enabled the building of Navistar’s MaxxForce 11 and 13-litre engines for its US product range.

However, as pointed out frequently in Global Focus, the widely held perception of this company, as primarily a manufacturer of extra-heavy trucks, is somewhat inaccurate, because it also holds a significant presence in the lighter payload segments of the North American market, in school bus manufacture, and as a leading global manufacturer of diesel engines.

The Navistar Engine Group also includes the South American diesel engine manufacturing concern MWM International, supplying power units to a number of other prominent original equipment vehicle and equipment manufacturers.

However, Navistar’s position as a major supplier of vehicles and power units to the US military may well be pivotal in determining its future, with the US government insisting on American ownership for security reasons.

Conclusion Readers must please note that this article reflects the perceptions of one observer. Given the scope of the article, it is quite impossible to cover every possible angle, or to always foresee the decisions taken in a multitude of smoky boardrooms. It should also be noted that some significant manufacturers do not operate in our market, so they are absent from the discussion.

This does not indicate disrespect, but simply an effort to contain an already lengthy article.

We must also recognise that merger and acquisition activity is sometimes limited by antimonopoly legislation that sometimes extends across national borders.

Our knowledge of the Chinese business environment, with its many unique considerations, is also still in its infancy, so the opinions are offered with no malice, but after a great deal of consideration, and research. We do not expect everyone to agree with our views, and we look forward to the many debates and discussions that will inevitably follow. |FOCUS

Global FOCUS is a monthly update of international news relating to the commercial vehicle industry. It is compiled exclusively for FOCUS by Frank Beeton of Econometrix. Do you have a comment or thought you would like to share based on this column?

Visit www.focusontransport.co.za and have your say.

58 |FOCUS| October 2014

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October 2014 |FOCUS| 59

SHORT

HAULS DAF’s biggest single order to date Ngululu Bulk Carriers (NBC), a company involved in the logistics and transport of raw and beneficiated mining commodities (mostly for export via the ports of Maputo, Richards Bay and Durban), is enjoying 133 new DAF XF105.460 FTT 6x4 truck tractors – the biggest single order for new DAF trucks in southern Africa to date.

The order, valued in excess of R180 million, was placed in March 2014

Power project gets a lift from Vanguard

and the trucks have been delivered to NBC’s Steelpoort and Phalaborwa

The heavy-lift, abnormal-transport and plant-relocation

operations in batches, over a six-month period, to allow sufficient time to fully

specialist, Vanguard, has completed a successful

enrol the entire fleet. The final delivery took place in October.

turnkey project for the R3,5-billion Dedisa peaking power

“We’re delighted to have entered into a partnership with a fleet of

plant. Vanguard carried out the transport, offloading and

the calibre of NBC,” says Jan Maritz, senior sales executive for DAF. “We

final positioning on site of the major power-generation

attracted this order based on our understanding of NBC’s needs and our

equipment for the plant, located in the Coega Industrial

ability to match these requirements.”

Development Zone (IDZ) near Port Elizabeth.

He continues: “We expect our relationship with this company to provide a

Two sets of 191-t gas turbines, 231-t generators and

long-term showcase of DAF performance and our team’s back-up capabilities.

140-t transformers were transported from the Port of

In addition to the size of this order, it is also significant because it proves that

Ngqhura to the project site at the adjacent Coega IDZ,

DAF can compete on an equal footing with other European brands in South

where they will help stabilise the national electricity grid

Africa.”

from 2015.

DAF sales director, Mark Gavin, adds: “Since Babcock was appointed sole

The Dedisa peaking power plant, which will operate in

importer and distributor of DAF trucks in the southern African market, four

times of high electricity demand or shortfalls of supply,

years ago, sales have seen impressive growth and the DAF brand will soon

will produce 335 MW from the two open-cycle gas

begin to reflect its market leading performance in Europe.”

turbines.

Maritz says that the order followed the utilisation of a demo DAF

The six heavy units arrived at the Port of Ngqhura

XF105.460 truck in the NBC fleet, which effectively demonstrated the

in two shipments, according to the Vanguard project

vehicle’s excellent fuel consumption and general all-round performance.

manager Dale Huddy. “After directly discharging the

Soon afterwards, a comprehensive transport solution was negotiated,

vessels, we staged the heavy units in our port yard

which includes technical backup, a repair and maintenance contract and a

– in order to relocate the equipment in the required

finance option. By year end, NBC will have established fully-fledged workshops

sequence for delivery. The turbine needed to arrive at the

at Steelpoort and Phalaborwa, where DAF personnel will be permanently

Dedisa site first, and was loaded onto our 16-axle, three-

deployed to maintain the fleet.

file Goldhofer trailer.”

The deal also incorporates extensive driver training, both at the DAF

Each Goldhofer multi-axle combination, loaded with

facility in Gauteng and via on-the-road driver education, as well as a “train-

the heavy units, was powered by a push-pull combination

the-trainer” component that will see DAF driver trainers instructing NBC’s

of Mercedes Actros horses.

driver trainers.

The generator and transformer were then relocated, offloaded and positioned on site in a similar fashion, using a second set of Vanguard’s 600-t gantries in the yard at the port to lift the units onto trailers.

“The use of our gantry system has several advantages over the traditional jack and slide technique, including speed and safety,” says Huddy. “We were able to complete the transport, offloading and positioning on site of the first line of units – turbine, generator and transformer – in just six days, while the second line took us only three days.”

60 |FOCUS| October 2014

???????

SHORT ???????

HAULS

Singing FAW’s praises What more can a truck manufacturer wish for than a customer who sings the praises of its brand and after-sales support, while also claiming that, for his own operation, there is “only one truck that works

Time Trucking fleets up with new Volvo trucks Zambia’s Time Trucking, a subsidiary of Time Trucking Limited, recently took delivery of three new Volvo Trucks FH models – one of the first fleet operators to do so in southern Africa.

The company already has 54 Volvo trucks in its fleet and transports goods to Malawi, Mozambique and South Africa. A subsidiary, Time Commercial Motors Limited, is also an accredited Volvo agent in Zambia, and is thus responsible for the maintenance and service of Volvo fleets in the region.

Time Trucking’s managing director, Umesh Patel, says: “We always aim to provide the best service, on time, all the time. We also don’t compromise when it comes to quality. That is the reason why we always choose Volvo Trucks. If you want to be the best, then you have to have the best trucks and the best people.”

Torbjörn Christensson, president of the Volvo Group SA, adds: “Volvo Trucks SA is proud to be associated with a regional fleet operator of Time Trucking’s calibre. We believe that the southern African region holds untold potential. We are therefore committed to contribute to its successful development by providing products and services that suit southern Africa’s very unique business and operating conditions.”

The three new FH 520 6x4 truck tractors, with high chassis height, are ideal for the company’s long-haul operations, providing driver comfort and safety. These units feature the FH Globetrotter sleeper cab, which boasts a sleeper control panel, roof hatch, ample

in Africa”?

Buks van Rensburg, managing director of Buks Haulage Limited (BHL), which primarily uses FAW units in its 130-vehicle fleet, is referring to the FAW 28.380FT (commonly called the J5).

The MD’s claim, however, isn’t mere lip service … he has put his money where his mouth is and ordered a further 100 FAW J5 vehicles – adding to the 99 units already operating in the BHL fleet.

“I took the decision, in October last year, that in future all my replacement vehicles will be the same FAW 28.380 truck tractor,” Van Rensburg points out. “We use it in two configurations – one with a side-tipper trailer, supplied by Afrit Trailers, and the other with a flat deck.”

BHL has been using 70 of the FAW J5 side-tippers to transport copper concentrate from the mines in Zambia to the country’s smelters. The additional 29 FAW flat decks then transport the beneficiated material from the smelter, over 2 400 km from Ndola, Zambia, to Walvis Bay, Namibia, for export to China.

In 2015, a new smelter will be commissioned in Zambia, adding to the haulage business. “I am focusing on Walvis Bay as the export point for my clients – owing to the faster, more efficient border clearance procedures and through times, which give my clients faster turnaround and gives me optimum uptime for my fleet.”

Van Rensburg continues: “We have planned further expansion over the next 18 months, owing to the new smelter and other increased mining opportunities. This has enabled BHL to extend our FAW fleet by a further 100 units, both side-tippers and flat decks. These are due for delivery through 2014 and into 2015.”

storage and air-conditioner.

Technological features include a 3G and WLAN telematics gateway, I-Shift long-haul and fuel economy gear-changing software, as well as cruise control.

Proudly South African!

Iveco first began the import, sales and distribution

“The new Born in South Africa logo depicts

of its vehicles in South Africa over 20 years ago,

a ‘stamp of authenticity’, certifying the quality of

in 1993, but it has entered a new era … Iveco

the Iveco commercial vehicles assembled at the

South Africa Works, a manufacturing facility based

new facility, all by a local workforce,” the company

in Pretoria’s Rosslyn suburb, has been up and

points out.

running for a few months now. The joint-venture,

“The commercial vehicles bearing this logo will

which includes Larimar Group, will be inaugurated

be tailored for the African continent to suit the

in November.

varied terrain and challenging driving conditions,

In anticipation of this milestone event, which will see the manufacturing of Iveco vehicles in Africa,

which carry a demand for specific vehicle requirements.”

the brand is launching the Born in South Africa

Medium, heavy and extra-heavy commercial

campaign, which spotlights the local manufacture

vehicles, as well as front-engine and low-floor city

of specific Iveco products for the local market.

buses will be assembled on the premises.

October 2014 |FOCUS| 61

SHORT HAULS

Engen is number one … again

Hyundai clips the Apex

Engen, South Africa’s most popular fuel and retail convenience company,

Hyundai Automotive South Africa has begun production

has again strengthened its brand leadership. The company has won

of its HD series of medium trucks with the opening

the Sunday Times Top Brands award for a record fourth time running,

of its Apex production plant in Benoni, in Gauteng.

beating competitors including BP, Shell and Total in the petrol station

Following an investment of R110 million by Hyundai

category. After rising to joint first place with BP in 2010, Engen won the

Motor Company (HMC) Korea, Imperial and Associated

award outright in 2011, and then again in 2012, 2013 and now 2014.

Motor Holdings, the brand’s HD series of medium-duty

Engen attributes its long reign at the top to continued investment

trucks is now being assembled at the 32 000 m²

in meeting customers’ needs. “We remain focused on providing a

plant.

great forecourt and convenience service experience, and on developing

Alan Ross, CEO of Hyundai Automotive South Africa,

products that are relevant to our customers,” says Joe Mahlo, general

says that the plant will offer quality comparable to that

manager, Engen sales and marketing.

which Hyundai strives for at its other plants. “HMC is

Engen has provided customers with some innovative convenience

sending us qualified engineers from Korea and we have

partnerships over the years, and pours significant investment into

assistance from our regional headquarters in Dubai, so

customer-service training, with interventions including its annual Phambili

we are 100-percent confident of producing vehicles of

Roadshow, Smile customer-service programme and iPad-based distance

the same standard and quality as those coming out of

learning programme; Engen Learn.

Korea,” he says.

“We have worked very hard to deliver a unique ‘branded’ customer experience and appealing convenience package,” says Mahlo.

In due course, the plant will also build the popular H100 bakkie at the rate of around 4 200 units per

He adds that Engen is optimistic about building momentum for the brand as recessionary pressures continue.

year. About 600 HD series are expected to roll off the line each year.

Wade Griffin, commercial vehicles director for Hyundai Automotive South Africa, adds that the current staff complement of 30 people will expand to 60 at full production. “These 30 jobs will directly improve a further 230 lives,” he notes.

Also on site is Tailor Made Truck Bodies, which will manufacture a range of aluminium bodies so that a complete package can be delivered to customers.

Further exciting news to come from the company is that its new vehicle in the extra-heavy segment, the Excient, is undergoing viability studies for local introduction.

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62 |FOCUS| October 2014

Signature: Postal Code:

SUCCESS IN TRANSPORT STARTS WITH THE

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Achieving excellence in the transport industry is your number one priority. Helping you get there is ours. Of course Masana provides high quality fuel, but what makes us a leading fuel marketer is the partnerships we develop with our customers. By understanding your business needs, we are able to provide agile solutions and service. Which means you can focus all your energy on achieving success, while we fuel it.

7R ´ QG RXW DERXW 0DVDQD visit www.masana.biz October 2014 |FOCUS| 63

naamsa

Commercial vehicle sales report for August 2014 Note: For the time being, Great Wall Motors SA (Pty) Ltd will only report aggregated sales data. The GWMSA market split volumes are estimates based on historical trends and forecasting techniques.

Light Commercial Vehicles < 3 501 kg AMH Fiat Group Ford Motor Company GMSA GWM – estimate Jaguar/Land Rover JMC Mahindra Mercedes-Benz SA Mitsubishi Motors SA Nissan Peugeot Citroën SA Renault TATA Toyota Volkswagen SA

Total: 14 942 791 74 2 717 2 607 181 33 26 234 12 90 2 798 11 15 112 4 747 494

Medium Commercial Vehicles 3 501 – 8 500 kg AMH FAW Fiat Group Ford Motor Company GMSA Iveco JMC Mercedes-Benz SA Peugeot Citroën SA TATA Toyota UD Trucks Volkswagen SA

Total: 1 006 22 1 13 6 203 40 12 227 17 50 280 63 72

Heavy Commercial Vehicles 8 501 – 16 500 kg FAW GMSA Iveco MAN Mercedes-Benz SA Powerstar TATA Toyota UD Trucks

Total: 508 21 116 6 8 37 2 60 128 130

Extra-Heavy Commercial Vehicles > 16 500 kg Babcock DAF FAW GMSA Iveco MAN Mercedes-Benz SA Powerstar Renault Trucks Scania TATA Toyota UD Trucks Volvo Trucks

Total: 1 205 40 30 46 34 119 304 41 29 178 19 47 122 196

Buses > 8 500 kg GMSA Iveco MAN Mercedes-Benz SA Scania TATA Volvo Bus

Total: 108 2 4 40 17 32 5 8

*Source: National Association of Automobile Manufacturers of South Africa (Naamsa).

64 |FOCUS| October 2014

On BUS AND COACH MAN turns the Jacaranda City

green

The rocky road to IRPTN/taxi industry cooperation

Irizar: 125 years and just getting started

cover story

MAN drives Tshwane

green Green is the new purple in South Africa’s “Jacaranda City”. This much was apparent when the City of Tshwane’s commuter bus operator, Tshwane Bus Service (TBS), recently took delivery of a new fleet of buses. GAVIN MYERS reports

R

esplendent in bold green livery (even the seats are bright green), the city’s intentions of realising a revitalised commuter bus service was bright and clear – and, to make this happen, MAN Truck & Bus is its partner of choice.

Together, over the next three years, the two entities will drive new vigour into both TBS – used by an average of 488 441 commuters every month – and public transport in the city at large.

TBS took delivery of the first batch (44 units) of its new fleet of buses during August, at an auspicious handover ceremony at the operator’s depot. Present were the City of Tshwane’s Executive Mayor, Kgosientso Ramokgopa, and MMC for Roads and Transport, Councillor George Matjila.

The full fleet of 120 Lion’s City A84 rear-engine, low-entry, Euro-5 buses will be operational by December. Twelve of the buses

66 |FOCUS| October 2014

are compliant with the National Land Transport Act Universal Access Public Transport policy, providing easy access to the handicapped and disabled. The full fleet has been procured on a three-year, full-maintenance lease, after which the city will take full ownership.

With MAN vehicles already making up the bulk of the TBS fleet, the two entities have a good working relationship which, as MD of MAN Truck & Bus South Africa, Geoff du Plessis, notes, is made easier by the company being South Africa’s market-leading bus supplier.

“MAN has worked extensively with local municipal commuter bus operators. These relationships provide solid platforms for future transport projects. The fact that MAN is the only ‘one-stop bus shop’ means greater synergies, efficiencies and swifter turnaround times.

Today’s event is testimony to the synergies derived from that competitive advantage,” he said before handing the key over to Ramokgopa.

“We couldn’t have hoped for a better partner in MAN. Over the passage of time, the relationship we have has succeeded in offering our people the best service. I hope and pray that this relationship continues to grow,” said Ramokgopa.

“To ensure the city functions in an efficient manner we need to avoid gridlock. One of the best ways of doing that is to ensure that we introduce safe, affordable and reliable public transport – that’s the contribution of these buses,” he continued. “We want to make sure the offering meets international quality standards. We’re going to be biased towards mass public transport and significantly reconfigure the physical construction of the city space.”

Matjila explained: “The introduction of this new fleet represents the first step in the re-engineering of the Tshwane bus service. As part of the strategy, in the near future we

cover story

will look into expanding the reach of our bus service further afield into areas not serviced before. For this purpose, 11 new routes have been proposed and submitted for approval. It is therefore necessary that, when the new routes are approved, we are ready to service them with our new fleet.” TBS will also be a complementary service to the upcoming “Areyeng” Tshwane Rapid Transit system.

With many of its ageing buses (some as old as 26 years) now being retired, the new fleet is just one key in the plan to drive TBS to new levels of efficiency. The 45-seater buses (with capacity for 20 standing passengers) benefit from several high-tech features. Fitted to boost passenger ergonomics and comfort are interior and exterior destination boards and electronically controlled air suspension.

A door control harness is fitted to prevent the doors from being opened while the bus is in motion. The bus is also fitted with grab rails mounted in key positions, which allow safe entry, exit and movement in the bus. The passenger seats are customised and exclusively configured to support the City’s go-green initiative.

Safety is increased by the fitment of ABS anti-lock brakes, traction control and on-board tracking and monitoring systems. Another feature that will ensure a smooth-running service, will be the new automated fare collection system. To be introduced at the beginning of the

Geoff du Plessis, MD MAN Truck & Bus SA, celebrates the handover of 120 new buses to City of Tshwane executive mayor Kgosientso Ramokgopa and MMC for roads and transport, councillor George Matjila.

next financial year, this will ensure that drivers no longer handle cash, but merely focus on driving.

MAN is proud that the new fleet is locally assembled in Olifantsfontein, Centurion, and is comprised of 80-percent local content. “This is a proudly South African bus. It has world-class styling similar to other markets in the world.

These are great examples of how first-world technologies can be adapted to the needs of emerging economies such as ours,” said Du Plessis.

The full-maintenance lease is yet another key to increase efficiency at TBS. This will see MAN technicians handle all maintenance of the fleet over the next three years at the TBS premises.

At the same time, the company will transfer skills and knowledge to the City’s own technicians.

(MAN will also conduct driver training.)

“We’ll be transferring skills to young people, so it’s important that we have an appreciation that we are growing the City’s pool of skills,” noted Ramokgopa. “As we migrate to mass forms of public transport, we know that the important issues of reliability and maintenance are taken care of, thanks in part to the work MAN is doing.”

Ramokgopa closed the ceremony thus: “Future generations must continue to enjoy the same benefits that we do today. We must give them the best possible opportunity to resolve the challenges they’ll meet in the future.”

With a revitalised public transport fleet and increased efficiencies to come from TBS, future generations can – literally and figuratively – look forward to a much greener City of Tshwane. |FOCUS

October 2014 |FOCUS| 67

Transport systems

Warning signs

The recent Southern African Transport Conference brought to light a number of interesting research papers, including how working with minibus taxi operators and delivering public transport systems could be done better. We explore how South Africa’s approach to implementing Integrated Rapid Public Transport Networks (IRPTNs) could be improved

A

ccording to Ross Esson, economist at Pegasys Strategy and Development, there are three constraints hindering the delivery of improved public transport: trust, capacity and time.

“We have a one size fits all approach that doesn’t factor in the different requirements of the metros,” he says of South Africa’s current drive for IRPTN implementation.

“It is a detailed high-spec, high-cost system that requires a complete and radical

68 |FOCUS| October 2014

transformation of the industry. To do that, we get into a long discussion about how it will happen and, within that, there are conversations about transformation,” he continues, adding that municipalities themselves are ultimately responsible for funding, while there is currently a massive skills shortage in public transport.

“Some of these issues represent the nature of the beast, but there are others we need to start addressing more clearly,” he notes. Esson and his colleagues advise a staged approach, but, before that can be

implemented, trust and capacity (between and within government and the taxi industry), need to be addressed.

Esson again points to the fact that local governments are suffering from funding constraints and the lack of local skills. “That, in itself, is difficult for a local government that has been tasked with this responsibility,” he says.

Pointing to what is required from the minibus taxi industry, Esson notes that the first constraint is a change in the way the industry does business.

Transport systems

FROM THE FLOOR “What if subsidies were some sort of incentive, for example, for good performance or grants for the cooperative? Subsidies can be a deterrent to improvement.”

“We need to be a bit more modest in interpreting what the public transport policy says and actually allow for a more modest approach in developing these systems.”

“If we have trust between the taxi industry and municipal governments the project will build itself.”

“One needs to look at the process of an incremental approach in the space it’s implemented. In some instances there may need to be radical interventions.”

“The current solutions don’t take into account how to build government and industry capacity.”

“Currently, fares come directly from customers, while, in the future, funds will come directly from government on a structured basis. The relationship between government and the industry is important because, currently, the industry exists in a regulatory environment. In the new system it will be on a contractual basis with constant feedback between the parties.”

He notes that while taxi owners are currently individual businesses, they will become shareholders within the new system. “But what happens after the 12-year contracts have expired? There is uncertainty … Thus, because of this, and the trust relationship between the two parties, this process will take time.”

During this time, Esson notes, there is no real improvement in public transport services … The process must take place before full implementation.

Esson’s staged approach suggests a way of implementing pieces of the puzzle according to the available capacity of government and the taxi industry at each point in time. “We get to the same place, but we see a constant improvement of the passenger experience over that time,” he suggests.

“We need better infrastructure, service, customer experience and subsidies of services.

So what can we achieve now?” he asks.

“First, we need to look at infrastructure: bus shelters, passenger information systems, improved taxi ranks, call centres. In the second stage, we propose a business model that doesn’t completely change the industry’s current model – offer a limited amount of offpeak contracts and contracts for routes that are not currently subsidised. By creating that relationship, you provide subsidy and create an understanding in the industry about the benefits of formalisation.

“The final stage is the establishment of a vehicle operating company, managed by government, with a revised, upgraded, capitalised fleet with a limited number of contracts and drivers, who are formalised with medical aid and pension.

“This staged proposal allows us to see an incremental improvement in passenger services, allowing us to get commuters used to the quality of service, without all the upfront transactional costs,” he notes.

Cost, warns Neeth Leitner (also from Pegasys Strategy and Development), is another element that is going to make full, successful implementation of the system difficult – especially when compensation is such a big factor.

“We need to be cognisant of the fact that each project doesn’t operate in a bubble. There are countrywide implications,” he begins, describing compensation as an exchange for the owner-operators’ surrender of their current economic rights, to generate a livelihood through their licences and businesses.

“If we assume that there are 150 000 taxis in South Africa, it amounts to R170 billion if all those taxi-owner operators are compensated. That number doesn’t include compensation for private bus operators, which would also be significant.

“With the current funding restrictions – and what needs to be spent on in terms of infrastructure, planning fees, vehicles, and so on – it will take up to 170 years to fund the compensation obligation for the whole country.

“It’s not a viable way forward. It’s unaffordable to the country. We’re effectively paying double, and setting precedents from which it will be very difficult to remove ourselves as we move forward,” he warns.

Leitner adds that the result will be an “overcapitalised inability to expand” as there will be no money left. “The rest of the country will be left unchanged because of the precedent set in the first phase of these projects.”

Leitner suggests that, in a new public transport system, accessible value should be the focal point; starting with the vehicle operating company, the shareholding of which will lead to profit share, capital value, employment and network value-chain opportunities.

“Compensation must be considered as a package and not just a cash payment from government. This moderates upfront expenditure of cash compensation, and cash flow issues are mitigated. It also taps into previously neglected areas of value and reduces the overall cost of compensation.

“It offers true long-term empowerment and gives us the ability to mix and match; one size fits all is a difficult approach to take.”

With 21-million trips per day taken on public transport, 15 million of which are by taxi, the poorer part of the population is hardest hit. These people spend up to 40 percent of their income, and 25 percent of their time, on transport. “We’ve taken a particular approach and this is an opportune time to reflect and start seeing if there are alternatives or ways to add to and improve on it,” Esson notes. His and Leitner’s papers both illustrate the importance of this. |FOCUS

October 2014 |FOCUS| 69

TRIBUTE

taking A

back seat At the end of August, VDL Bus & Coach South Africa said farewell to its managing director, Sam Mansingh, the man who brought the brand to our market. GAVIN MYERS attended the party and got one final interview

“M

y decision to retire came from something my father told me many years ago …” Mansingh tells me. “Retire before it’s too late, while you still have the time and money in the bank to enjoy life,” the 61year-old says.

A well-known figure in the local bus industry, Mansingh has lived his passion for the industry since 1987.

Jan-Cees Santema, managing director of VDL Bus & Coach, recalls: “VDL entered the South African market in 2004. We felt the front-engined product was a good fit for the local market; it had enjoyed success in Ethiopia, Ghana, Ivory Coast, western Africa and Zimbabwe for many years.” The company decided to enter the market with Tyco (then a subsidiary of Imperial) to import VDL chassis.

That’s where the company met Mansingh.

“Tyco and Imperial then parted ways,” Santema continues. “Sam was responsible for sales and we asked him to join forces with us in Holland. Together we started the company VDL Bus & Coach SA – the sole importer of the product to South Africa.”

Santema is full of praise for his colleague (not necessarily former colleague, mind you, as, although Mansingh will not be involved in

70 |FOCUS| October 2014

“It’s been excellent, I’ve enjoyed being here. The market has been good to us and the product is respected.”

running the business, he still owns a share of the company). “I’m proud that he and the staff have been very dedicated to us, they work very hard and have a lot of fun.”

That sense of fun – palpable among the company’s staff – is clearly a result of Mansingh’s influence. “I’ve always had a philosophy that, when I come to work, I don’t come to work – I come to play,” he explains.

“And it’s been excellent, I’ve enjoyed being here. VDL has been so exciting to work with.

Yes, we’ve had ups and downs, but we always achieved whatever we set out to achieve. The market has been good to us and the product is respected; I think that is the most important thing.”

Together, Mansingh’s philosophy and VDL’s culture are clearly the drivers of this success.

“One of the advantages is that VDL doesn’t

have a huge company hierarchy, we can get a decision made immediately. There’s no such thing as us and them. VDL’s motto is ‘strength through cooperation,’ you need harmony and cohesion. It’s important,” Mansingh says of the local concern’s working relationship with its parent company.

“It’s part of our culture. The business is family owned and we see the South African operation as part of the family,” Santema continues, as Mansingh explains that his colleague will take the post of managing director, based in Holland, while Sharon Coopsamy will be responsible for running the local office. “It really will be business as usual,” he assures.

Mansingh is happy that he’ll be able to witness the company’s continual move forward.

“But first, my three-month round the world cruise …” he concludes. |FOCUS

Sam Mansingh (left) and Jan-Cees Santema have built VDL Bus & Caoch SA into a respected company.

BUS

STOPS Irizar celebrates dual anniversary It may have entered the South African market only ten years ago, but, as Irizar celebrates that milestone this year, the company also celebrates 125 years of existence.

“To date, we’ve delivered 820 coaches in all the countries in and around southern Africa including Namibia, Botswana, Zimbabwe, Zambia, Malawi, Tanzania, Mozambique, Swaziland, Lesotho and South Africa,” says Paul Nel, director of Irizar South Africa.

“We have walked a path with our customers and suppliers while the Irizar product has continued to evolve to suit their, and Africa’s, requirements,” he says of the journey thus far.

“Operators are looking for a reliable partner – not just a good product, but a good after-sales network as well,” adds Gotzon Gomez, export sales director. “We consider ourselves a premium manufacturer and there is a segment of operators in Africa looking for such a product and a good after-sales service. Our African customers are as important as our European customers and that’s why we offer them exactly the same products.”

Gomes is confident the continent’s coach market will continue to grow and says the company will continue to invest, offer the latest products and improve service. “Irizar has been continuously growing since 2008. We’ve been in a very strong financial position and are investing a lot in new products and technologies,” he adds.

Technology is a very important aspect of Irizar’s future, so much so that the company has invested in Creatio, its own research and development centre that focuses on future technology. The centre has developed the Irizar Electric City Bus, the multiplex software that manages every aspect of the vehicle, as well as technology such as adaptive cruise control, lane-departure warning and a driver-fatigue detector.

All its vehicles are also tested for durability at the Idiada Applus+ facility in Barcelona as well as being driven for up to two million kilometres on the open road. “We design our coaches to last a minimum of 15 years,” notes Gomez.

“The key is to offer our customers an attractive package,” he says. Clearly this is what the company has always done, and will continue to do, quite successfully.

Getting the RRT ducks in a row Bus rapid transit (BRT) systems are popping up across South Africa in most of the major municipalities … Some are delivering better results than others. In Rustenburg, best known for its surrounding platinum mines, preparations for the 2016 launch of the Rustenburg Rapid Transport (RRT) system is well underway – despite a few challenges.

During 2013, a four-phase project implementation programme was announced, which has now been further defined. Amogelang Kgoathe, design and construction manager for the RRT system, explains: “This is a major infrastructure programme and so it makes sense that we introduce services in smaller phases. The first reason is that we do not want to wait until all the infrastructure is complete before starting services, as this will be an ongoing project and we want to deliver to the residents sooner rather than later.”

She continues: “Also, with each phase, we know we will be learning and gathering insight to make the next phase better and

more efficient, thereby strengthening our business model.”

Phase 1 will now be divided into three operational launch dates (Phase 1A, 1B and 1C), while Phase 2 remains unchanged.

Phase 1A and 1C will see operations start in March and October 2016, Phases 1B and 2 will come into effect in 2017 and 2018 respectively. Phase 3 and 4 will follow.

Kgoathe adds that the RRT team remains committed to ensuring that local residents are employed and benefit from the infrastructure investment. Since

the start of the project’s construction, in mid-2012, a total of 926 jobs have been created on the infrastructure programme.

According to the RRT, the platinum strike earlier this year had a noticeable effect on the construction programme, as mine waste was being provided at no cost and being used as fill for the roads.

During the strike, these materials could no longer be accessed, and the project had to source alternative fill material at a cost that impacted on the project. “We are now back on track and are able to recycle mine waste for use in the road construction.”

October 2014 |FOCUS| 71

HOPPING VIC’S VIEW OFF

Of aspirations and

corruption

It’s still too early to predict the outcome of the e-toll review process, although, at the time of writing, all indications are that everyone is against the scheme – with one exception …

T

hat will, predictably, be the “cosy club” of civil engineers and consultants.

Let us never forget that this debacle has its origins in the Gautrain, which was forced through without proper analysis.

It provided useful experience for “the cosy club”, which then pushed the Gauteng Freeway Improvement Project (GFIP) through its various stages.

At the moment, similar comments apply to the different bus rapid transit (BRT) schemes now underway in certain South African cities.

BRT should be robustly questioned, but that isn’t happening, allowing “the cosy club” to continue in business.

In the meantime, however, some interesting submissions have been made to the review panel. Let’s briefly look at two of them. First, the City of Johannesburg (CoJ) has apparently learnt that the “aspirant middle class” is being hurt by e-tolls. Another group, Business Unity (SA) (Busa), has told the panel that the “unprecedented rise in the cost of doing business” will have “consequences” for economic growth.

(Saturday Star, August 30.)

Well, it’s about time someone woke up to the already high cost of private motoring and its corrosive effect on the economy. For ten years the Council for Scientific and Industrial Research (CSIR) State of Logistic Survey has

been warning us about the high cost of moving freight around South Africa (SA) – R227 billion at the last count – but no similar calculation has been done for people in motor cars.

My guess is that it is around R400 billion a year. “So what?” I hear you say. “It’s private expenditure and we can spend it any way we please.” Fair enough, but 50 percent of motor car travel is work related – a South African National Roads Agency Limited (Sanral) statistic. So, whether we like it or not, another R200 billion or so should be added to the cost of “doing business” in SA. Sadly, for CoJ, Busa, the Opposition to Urban Tolling Aliance (Outa) and just about everyone else opposed to e-tolls, scrapping them won’t make the problem go away. You don’t create a strong middle class by giving people cheap cars, cheap fuel and free roads. You can only do it by making it unnecessary for so many of them to go to work by car in the first place.

The richest countries today got there because grandpa went to work on the train.

So, the message to CoJ, the Chamber of Commerce and Industry and any others who have strong views on e-tolls is this: our focused denial about private motoring costs has provided fertile soil for the awarding of contracts for questionable transport projects such as Gautrain, GFIP and BRT. CoJ, as the biggest municipality in South Africa, should be giving leadership by fixing the

appalling state of public transport within its jurisdiction. Business groups should be robustly questioning the failure of local, provincial and central government to sort out the ongoing fragmentation of public transport throughout the country.

The role (or absence) of the academic world should also be scrutinised. Remember that one university thought that e-tolling was a good idea … That’s what happens when universities place “sponsored” and “contractual” research above their real mandate, which should be to carry out rigorous, independent research.

It remains to be seen whether the e-toll panel will recommend ground-breaking measures to stem the mismanagement, neglect and corruption in transport matters.

These measures are not rocket science.

Several government policy documents, as well as previous columns in the Hopping Off series, have spelt out what should be done, but we lack the will to actually make it happen.

I am not optimistic that the e-toll panel will connect the dots, given our history of denial and ignorance of transport issues. Nor do I believe that bumper stickers, websites, slogans and legal action can fix our transport problem.

So, we are between a rock and a hard place. Our “aspirant middle class” is in for a long wait. |FOCUS

Vaughan Mostert is a senior lecturer in the Department of Transport and Supply Chain Management at the University of Johannesburg. He developed a love for public transport early in life, which led to a lifelong academic interest in the subject.

Through Hopping Off, Mostert leaves readers with some parting food for thought as he continues his push for change in the local public transport industry.

72 |FOCUS| October 2014

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October 2014 |FOCUS| 73

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Collect parcel from 8 Albert St

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Deliver parcel to 5 Short St

Urgent delivery for 23 New Rd

Re-route to Long Ave to pick up load

Accident at corner of Church and Main St

Collect parcel from 45 Hope St

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74 |FOCUS| October 2014

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