Transport World Africa March/April 2016 by 3S Media

www.transportworldafrica.co.za ENDORSED BY

Intraregional supply chain solutions from producer to consumer

Fleet Management Driving change

Freight Rail Bearing fruit

Air Cargo

Flying the green flag

Corridors Perfectly seasoned

VOLKSWAGEN CONSTELLATION

Aligned with Africa’s distribution needs

INDUSTRY NEWS

“To achieve real, organic revenue growth in this testing economic climate is truly commendable.” Cobus Rossouw Chief Business Development Officer, Imperial Logistics P38 ISSN 1684-7946 Vol. 14 No.Vol. 2 / 11 R50.00 VAT incl. VAT ISSNMarch/April 1684-79462016 Mar/Apr 2013 No. 2incl. / R40.00

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Intraregion al suppl

Fleet Mana

Driving cha ment nge

Intraregional supply chain solutions from producer to consumer

ON THE COVER

y chain soluti

Freight Ra

ons from produ

cer to consu

mer

Air Cargo

Bearing fru it

Flying the gre en ﬂag

Corridors Perfectly se asoned

How fit-for-purpose heavy and extra-heavy Volkswagen trucks are finding favour in Africa.

INSIDE

INDUST RY NEWS

Editor’s Comment Disruption eruption FESARTA Comment Transport custodians Regional News Africa news round-up

2 4 8

ribution ne

“To achiev e tes ting eco real, organic revenu nomic clim e Cobus Ross ate is truly growth in this ouw Chie commenda f Business Developm ble.” ent Ofﬁcer, Imperial Logis ISSN 1684-7 946 ISSNMarch/ tics P38 1684-7 April 9462016 Mar/Ap Vol.r 14 2013 No.Vol. 2 / R50.00

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11 No. 2incl. / R40.00 VAT incl.

eds

VAT

CORRIDORS Transport season

FREIGHT RAIL

COVER STORY VW Constellation Five-star performer

COMMERCIAL VEHICLES Fitting in

TRAILERS Frosty reception

Fruitful business The Cape's core

26 28

PORTS Cool customers Blending in Slick operators

29 30 33

SUPPLY CHAIN LOGISTICS

PANEL DISCUSSION

Keeping it fresh

MiX Telematics 15 Ctrack 17

MATERIALS HANDLING On a roll

FLEET MANAGEMENT Debut industry conference Culture clash

18 19

INDUSTRY NEWS Movers and shakers

AIR CARGO

COURIERS Mobile matchmaker

VOLKSW AG CONSTE EN LLATION Aligned wi th Africa’s dist

Sustainable growth

22 26

35 TWA | March/April 2016

EDITOR'S COMMENT

Disruption eruption

Publisher Elizabeth Shorten Editor Tristan Wiggill • tristanw@3smedia.co.za Head of design Beren Bauermeister Contributors Mike Fitzmaurice, Tony Tyler, Jim Ward

E OFTEN HEAR about disruption, which, in South Africa, could be applied in almost any context, from electricity supply to the State of the Nation Address. Globally, people speak of the Fourth Industrial Revolution, a collective term embracing a number of contemporary automation, data exchange and manufacturing technologies. But you knew that already. In this new playing field, there are the disruptors and the disrupted. Consider the disruptors: Mark Zuckerberg, Elon Musk, Uber. Then consider the disrupted: Kodak, Nokia, the South African Post Office (SAPO). As Mark Weinberger, global chairman and CEO at EY, summarised at the World Economic Forum (WEF): disrupt yourself before you’re disrupted from the outside. Gather data and turn it into knowledge. Build partnerships to supplement your strengths and remember – every company today is a technology company. It is noteworthy when the newlyappointed CEO of the Post Office says SAPO will need to offer a wide range of services and become less reliant on mail deliveries. When 800 technology executives and experts from the information and communications technology sector were asked what technology tipping points are expected to occur by 2025, as part of the WEF’s ‘Technology Tipping Points and Societal Impact Report’, 91.2% said 10% of people will be wearing clothes connected to the Internet; 86.5% believe the US will be using its first robotic pharmacist; 84% said the first 3D-printed car will be in production; 80% think 10% of all cars on US roads will be driverless; and 75% believe a city, with more than 50 000 inhabitants, will be built with no traffic lights at all. Imagine that! In South Africa, new logistics services like click-and-collect and Snapcart are quickly gaining favour among online retailers. The former allows consumers to buy goods online and have them delivered to a collection point of their choice. Consumers are then free to collect their goods at their own convenience, with parcel points set up at trusted retail chains like Freshstop at Caltex, Waltons, Clicks and 7Eleven. With stores open 24/7, the reliance on traditional business hours and on the services of couriers and the post office are removed. Then there is Locomute, Africa's first car-sharing network, whose cofounders met in an MBA class at the Nelson Mandela Metropolitan University Business School. What started as an MBA project, which they needed to complete to develop a disruptive business plan for their final year module in 2014, soon turned into a legitimate business. One doesn’t ask: “When will the future arrive?” It’s already here.

TWA | March/April 2016

Chief sub-editor Tristan Snijders Sub-editor Morgan Carter Client services & production manager Antois-Leigh Botma Production coordinator Jacqueline Modise Marketing & digital manager Philip Rosenberg Distribution manager Nomsa Masina Distribution coordinator Asha Pursotham Financial manager Andrew Lobban Administrator Tonya Hebenton Printers United Litho JHB • t +27 (0)11 402 0571 Advertising sales Vinny Reddy • vinny@3smedia.co.za t +27 (0)11 233 2600

No. 9, 3rd Avenue Rivonia PO Box 92026, Norwood 2117 t: +27 (0)11 233 2600 f: +27 (0)11 234 7274

www.3smedia.co.za Annual subscription: R300 (incl VAT) subs@3smedia.co.za ISSN 1684-7946 © Copyright 2015. All rights reserved. All articles herein Transport World Africa are copyrightprotected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of the authors do not necessarily reflect those of the publishers or FESARTA.

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FESARTA COMMENT

Transport custodians While my work with Trademark East Africa has been intense, and connectivity and communication on my travels have been hampered tremendously by poor signal, FESARTA’s work continues unabated.

HE CUSTODIANS of USAID – the lead US government agency working to end extreme global poverty and enable resilient, democratic societies to realise their potential – is set to change, with the role currently under tender process.

Transport Union’s (IRU) work in Africa. He recently highlighted the importance of implementing harmonised professional standards and training in the road transport sector in order to drive up efficiency and safety, at a workshop in Nairobi, Kenya.

As East Africa’s key trade route, the Northern Corridor links the port of Mombasa with Nairobi and the rest of Kenya’s hinterland as well as landlocked Burundi, the Democratic Republic of the Congo, Rwanda, South Sudan and Uganda. In 2014, some 30 million tonnes of goods moved through the port of Mombasa alone, excluding transshipments. The workshop also provided the opportunity to discuss challenges, experiences and best practices on goods transport issues in Africa. Participants from every African Regional Economic Community, transport corridor organisation, the World Bank, the African Development Bank, as well as a range of private sector stakeholders in the forwarding and transport sector engaged meaningfully throughout.

Trade and transport facilitation can often be boosted simply by implementing existing instruments

Several large corporates are tendering for the position, including UK consulting giant Deloitte. FESARTA will be working closely with whichever company is selected, with the decision due to be made this month and the commencement of custodianship set to begin on 1 April this year.

Potential Trucker’s Forum Plans are still very much under way for another Trucker’s Forum, which would likely be held in September 2017 in Johannesburg. The inaugural event, back in 2012, was a tremendous success and the idea, now, is to expand the event to become a major pan-African transport and logistics showpiece, with the expertise of international event organisers Messe Frankfurt. More information on this event will follow in THE AUTHOR Mike Fitzmaurice due course. is the CEO of the For some time, we’ve Federation of East been working closely and Southern African with William Petty, who Road Transport Associations. leads the International

TWA | March/April 2016

Workshopping solutions

Organised by the World Bank’s Sub-Saharan Africa Transport Policy Program (SSATP) and co-hosted by the Northern Corridor Transit and Transport Coordination Authority (NCTTCA), the workshop contributed to the design of the SSATP’s next four-year programme, titled ‘Regional Integration, Connectivity and Cohesion Policies’. During the event, the IRU highlighted that trade and transport facilitation can often be boosted by simply implementing existing instruments, like the UN TIR Convention, which could help to simplify and reduce the costs of moving goods in transit and across borders.

Conventional transport corridors Implementing the tried and tested UN TIR Convention would boost trade by eliminating a range of processes and costs along the Northern Corridor, while providing customs administrations with a cast-iron guarantee on the duties owing on the goods.

The IRU Academy, in particular through the development of a network of IRU-accredited training institutes, was also showcased as a valuable tool for increasing driver and operator professionalism and ensuring harmonised standards. The IRU has also been invited by Donat Bagula, executive secretary of the NCTTCA, to participate in a workshop aimed at taking a strategic look at corridor performance and validating the 7th edition of their ‘Transport Observatory Report’. The report compiles data on 31 different performance indicators covering road, rail, pipeline, port capacity, efficiency, transit times, delays, and costs. It is a vital tool that provides corridor decision-makers with the necessary evidence to continuously improve trade facilitation performance.

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Service Support TopUsed

VOLKSWAGEN

COVER STORY

Five-star performer Manufactured in Brazil and forming part of MAN AG’s multibrand truck and bus portfolio, Volkswagen (VW) heavy and extra-heavy commercial vehicles are gaining market share across Africa’s emerging economies.

HE VW Constellation range of workhorses has been specially engineered to meet the demands of niche trucking applications in Southern Africa. “The VW Constellation range is extremely versatile, coming in both truck-tractor and rigid derivatives, with both 6x2 and 4x2 axle configurations – making it the ideal choice for the medium and on-highway distribution segments,” says Dave van Graan, Head: Truck Sales, MAN Truck & Bus South Africa. “Predominantly, our VW customers to date are using the VW Constellation for volume van, dropside, tautliner, refrigerated and carcarrier applications, just to name a few. This clearly demonstrates both the volume and weight-carrying capabilities of the range.”

Broad appeal Citing both reliability and fuel economy as key attractions of the range, Van Graan adds that the Constellation line-up has been optimised through the prudent engineering of various driveline components to broaden its appeal in the road freight industry in South Africa. The VW Constellation range includes the 19.320 4x2 truck-tractor and rigid-chassis freight carrier derivatives: the 13.180 4x2 freight carrier, the 15.180 4x2 freight carrier,

the 17.250 4x2 freight carrier and the 24.250 6x2 freight carrier. According to Livingstone Mulaudzi, Head: Product Management, MAN Truck & Bus South Africa, “The VW Constellation range has great potential to service a number of niche applications in both medium- and long-haul distribution applications. The VW Constellation 19.320 has a gross combination mass of 44 tonnes, which puts it ahead of most rival 4x2 truck-tractors as far as payload and drawing capacity are concerned.” MAN is targeting the removals segment as a key new market, as well as other ‘volumebased’ cargo hauliers. “The VW Constellation 24.250 freight carrier has a longer wheelbase, at 5.819 m, which provides a better platform for various truck bodies – making it the ideal solo freight carrier unit. It is also specified to tow a draw-bar trailer, which makes it an attractive option for operators seeking optimum payload productivity, like long-haul pantech applications,” adds Mulaudzi. Equipped with mechanical suspension and a liftable tag axle, the VW Constellation 24.250 also sports a dual-speed differential, which delivers ‘fast’ and ‘slow’ gear ratios for better traction under load, explains Mulaudzi. Recent upgrades in product specifications include anti-lock braking system (ABS) and

low-roof sleeper cabins for both the 17.250 and 24.250 freight carrier derivatives as standard equipment. All VW Constellation derivatives have a high level of in-cab ap-pointments for driver comfort, which in turn improves vehicle productivity. The easy diagnosis of engines and electronics enables rapid servicing turnaround times,” Mulaudzi adds.

Fit for purpose Specified for regions around the world that are not equipped with the latest high-tech workshop equipment, the VW Constellation range is finding favour in subequatorial African operations, primarily due to its reliability – built on a robust chassis and ‘easyto-fix’ driveline based on the Cummins ISBe Turbo intercooled power-plant and Eaton FS 6306 B manual transmission. “The VW Constellation truck range is growing in stature because it is a ‘fit-for-purpose’ vehicle, tailored to meet the specific needs of niche applications. As a business tool, it strikes the optimum balance between price and life-cycle cost. Fuel efficiency, reliability and ease of servicing effectively keep its total cost of ownership low and predictable, making it an attractive proposition for specialised on-highway operators in Southern Africa,” concludes Van Graan.

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TWA | March/April 2016

REGIONAL NEWS

Read more on www.transportworldafrica.co.za

EAST AFRICA

South Sudan bridges transport gap THE NEW Juba Bridge is playing a critical role in helping South Sudan emerge from its war-torn past, while increasing trade with neighbouring Kenya and Uganda. The bridge is the only crossing over the White Nile River in the entire country and represents a crucial transportation link. The new bridge comprises two 3.15 m singlelane, six-span bridges installed side by side, over a total length of 252 m. External footwalks were added to protect pedestrians. South Sudan’s relatively short life has been marked by a great deal of internal

military conflict and this has taken its toll on infrastructure, including the Juba Bridge, which has an almost iconic status in the region. The deck upgrade should significantly extend the life expectancy of the bridge and serve the people of South Sudan for many years to come.

SADC

Truck importer finds new partners

SOUTH AFRICA

Sastalc CEO steps down THE BOARD of directors at the Southern Africa Shippers Transport and Logistics Council (Sastalc) has confirmed the resignation of CEO Brenda Horne-Ferreira from the council, effective 1 March 2016. Horne-Ferreira joined the council in July 2014 and will remain close to Sastalc, serving in an advisory capacity as a director of the board. Sastalc has decided not to replace Horne-Ferreira, but to transfer the management, coordination and administration duties to secretariat Yayeri Kasaame. Kasaame has been mentored by HorneFerreira over the past 14 months as part of the council’s transformation strategy. “I count it as an honour and privilege to be requested to continue to be a director of the board of Sastalc and express my greatest confidence in Yayeri as my successor. I am very proud of her, as I have seen her passionately grow and develop under my mentorship and I know that she will continue the journey to roll out the Sastalc strategy and to meet member and industry expectations,” says Horne-Ferreira.

SOUTH AFRICA

New toll tariffs announced

ASSOCIATED MOTOR Holdings (AMH) will become the exclusive sales, parts, services and maintenance partner of FAW trucks in Zambia and Malawi. The agreement was signed to create the best possible sales, services, parts and maintenance offering to the brand’s customers in the two nations. For AMH, it is an opportunity to grow its African footprint. In 2015, FAW built and sold over 1 000 trucks into the Southern African region. Through AMH, it is aiming for this to increase fivefold to 5 000 trucks, per annum, in the short term. These vehicles will be produced in South Africa at the company’s Coega plant in Port Elizabeth. This presents an opportunity for further capital investment, job creation, greater localisation of second- and third-tier supply levels, and an expanding vehicle manufacturing sector in South Africa.

TWA | March/April 2016

THE DEPARTMENT of Transport (DoT) has announced new toll tariffs for Gauteng’s highways. According to the DoT, toll tariffs are adjusted annually, in line with the Consumer Price Index (CPI). Tariff adjustments will be applied to sections 20 and 21 of the N1; Section 12 of the N3 toll road; Section 1 of the N4 toll road; and sections 18 and 19 of the N12 toll road. Tariffs for the Swartruggens Plaza have not been adjusted, due to ongoing engagement with various stakeholders.

REGIONAL NEWS SOUTH AFRICA

Ports security bolstered TRANSNET NATIONAL PORTS Authority (TNPA) has introduced a state-of-the-art CCTV port security system at all eight commercial South African ports and at its Johannesburg head office, valued at R843 million. The system comprises 2 100 high-definition cameras across the various sites – more than double the previous 864 – as well as long-range cameras to monitor all port channel entrances and outer anchorages. The Port of Durban’s newly renovated control centre was the first to go live with the system in February. Vehicle security within Durban’s port perimeters will also be enhanced through licence plate recognition. TNPA says the system will facilitate increased night visibility through thermal imaging.

SOUTH AFRICA

Carmelo Impelluso joins Iveco South Africa CARMELO IMPELLUSO will oversee operations at Iveco South Africa and the continent’s right-hand-drive markets. Impelluso replaces Mario Gasparri, who has left the company to pursue other interests. Prior to this appointment, Impelluso was director of Iveco brand pre-owned vehicles in Turin, Italy, a position he held since September 2014. Impelluso has worked for Iveco parent company CNH Industrial in Spain, Italy and Brazil since 2001. He is reported to have a wealth of industry knowledge and experience, which “will add value to CNH Industrial Southern Africa”, according to a statement issued by the company. In other news, Iveco South Africa managing director Eamonn Parker will be leaving the country for a position dealing with the UK and Irish markets for the brand.

SOUTH AFRICA

Durban welcomes R3.5 billion logistics park THE DEPARTMENT of Economic Development, Tourism and Environmental Affairs in KwaZulu-Natal has approved construction of the R3.5 billion Clairwood Logistics Park. Construction commenced once the amended environmental impact report, received from the Capital Property Fund, complied with stringent regulations. The park is to be built on the site of the former Clairwood Race Course, with the Fortress Income Fund planning to develop around 350 000 m2 of additional warehousing space. “The Clairwood Logistics Park will not only meet growing demand for A-grade logistics and distribution facilities in the south

of Durban but will also improve the livelihoods of surrounding communities through job creation,” says Nico Prinsloo, development manager, Fortress Income Fund. The new facility is expected to create an estimated 18 900 jobs during the four-year construction period and more than 4 600 permanent jobs after completion in December 2020. Both national and international businesses require a modern logistics facility in close proximity to both the Durban port and the proposed dig-out port, which will minimise road traffic in congested areas to the north of the city as well as to inland areas like Hammarsdale. The money invested in developing the site includes R110 million for extensive road and infrastructure upgrades surrounding the facility. Construction should be completed by the end of March 2016.

TWA | March/April 2016

COMMERCIAL VEHICLES

Fitting in

Truck manufacturers need to ensure they develop and supply vehicles that are suited to the conditions in which they’ll be operating. Tristan Wiggill ponders whether they’re getting it right.

N ORDER FOR transporters to be competitive on national routes, like the N1 between Cape Town and Johannesburg, they need to ensure that they optimise their efficiencies.

“By offering state-of-the-art European products, we can ensure that these efficiencies and requirements are met and, thus, reduce overall operating costs,” says Mark Gavin, national sales director, DAF Trucks. “Most importantly, we address the need for heavy-duty cooling. The demands of the South African climate, environment and topography are extremely different to those in Europe. We ensure that heavy-duty cooling systems are fitted to all vehicles sold into the Southern African market, which improves not only performance of the vehicle, but longevity as well. “This, along with a number of other technical modifications, ensures that the DAF product is well suited for African conditions. In addition, these kinds of long routes are physically taxing on a driver. We ensure that the cab is more than just a cab, that it’s also a workstation for the driver, as well as being as comfortable and spacious as possible. In addition to this, we offer 40 000 km service intervals, which are perfectly suited to such long-distance applications,” he adds.

Life’s a gas With respect to vehicle emissions and fuel quality, Euro 4 and Euro 5 engines need 50 parts per million (50 ppm) sulfur or less in the diesel. There are a number of areas in South Africa where 50 ppm diesel is readily available, and the country’s closest neighbours – Swaziland, Botswana, Namibia, Lesotho and Zimbabwe – all

TWA | March/April 2016

import their fuel from South Africa. Still, fuel quality in Africa remains a challenge, with high sulfur content in diesel the biggest concern; it is a toxic element that damages engine components. North of the Limpopo, the sulfur content can vary greatly, from 500 ppm to 5 000 ppm. Crossborder operators must therefore perform adequate route planning and avoid ad hoc fill-ups. Driver education is important in this regard. “We believe that we have the right technology in the company. As long as some level of 50 ppm diesel fuel is available, we will bring in our technology,” says Dr Wolfgang Bernhard, member of the Board of Management of Daimler AG responsible for Daimler Trucks & Buses.

Lots of people said: ‘How is Fleetboard (Mercedes-Benz telematics, tracking and driver diagnosis) going to work in Africa’? We believe it is the most important factor for us in selling new trucks,” adds Kobus van Zyl, executive director, Daimler Trucks & Buses Southern Africa. “With our driver skills shortage and lack of training, it is important that we embrace technology. Africa is fast becoming one of the most connected continents. I ask Europe to send the technology because we are ready to embrace technology with our customers.” There is the counter argument that certain technology is simply too complicated and that nobody can handle it. Bernhard disagrees. “Consider the move from manual transmission to automatic transmission, where you take driver error out of the equation and ensure that the machine – the engine, the truck – always shifts at the best possible time to save fuel and conserve the long-term reliability of the powertrain. That's very important. You might say this is too sophisticated. We have automatic transmissions running around the world, doing their job and making the powertrain more fuel-efficient and safer.”

“With our driver skills shortage and lack of training, it is important that we embrace technology.”

COMMERCIAL VEHICLES

Transporters should pay particular attention to: • Route planning • Condition monitoring • Defining a maintenance regime • Reducing the amount of idle time • T he condition of fuel and oil filters, interpreting what they’re communicating

Livingstone Mulaudzi, head: Product Management, MAN Truck and Bus SA, says the vehicles the company imports and/or assembles are designed to operate in high ambient temperatures (>35°C). “These vehicles are not tested locally. We receive a lot of feedback from local operators and we use this data constructively to mitigate the high temperatures. Even the intarders on the transmission are equipped to deal with what are termed ‘hot countries’. The parts side of the business is demand driven and because parts are specified correctly in the design phase, there aren’t higher failure rates on cooling parts,” he clarifies.

In the front line

“I was astonished in Central Africa after meeting customers who said they would like to have a device in their trucks to pinpoint exactly where the vehicles are. We are not talking about the USA; we're talking about Tanzania. They want to be able to switch the engine off remotely, in case it is stolen. We can do that. We have that in Brazil. They would also like to see how the driver is doing, what's the driving record and review the safety records. They want to review hard braking, going too fast in the turns and how fuel conscious the driver is being. “There is also a playful element for drivers that engage in championships to see who the best driver is. All of this can be orchestrated. All these things can be done with Fleetboard. I think this type of technology can play a big role in Africa. We have it and we are rolling it out and there is more to come. We should not be shy of technology, we should not underestimate our customers in their abilities to adopt and learn and absorb this new stuff because this is what this region needs.”

Globally, oil companies and lubricant suppliers are extremely familiar with all truck OEMs. They are in fact strategic partners. The likes of Volvo Trucks and Mercedes-Benz, among many other truck brands, and lubricant suppliers like Castrol and Shell all work together alongside a number of hydrocarbon suppliers. This collaborative work is done in advance, at the vehicle conceptualisation stage. Lubricant and oil suppliers are therefore very much in the front line and know exactly what the engine and driveline is going to look like, before rubber meets the road. Truck OEMs tell oil and lubricant suppliers what exactly is required from them and then it is up to those suppliers to formulate a suitable product. In the case of Castrol, formulation takes place in four stages, including testing at an independent testing centre in the UK, as well as at vehicle OEM facilities, independent testing laboratories and at the facilities of independent companies not involved in the automotive oils and lubricants industry. This testing process can take years to finalise. A single oil or lubricant product may face a suite of 22 tests and, should it fail a single test, has to be developed again from scratch. Once all testing has been done, the product will either meet a certain spec or will be approved to perform a certain function. It will then be ratified by vehicle OEMs. Oil and lubricant suppliers also know where the vehicles they are developing products for are to be sold/supplied to. These companies need to know what fuel quality they use. Castrol, for example, supplies products to 42 countries in Africa. Suppliers frequently consult with transport operators and gather information on routes travelled and loads carried. Oil and lubricant suppliers perform condition monitoring tasks to analyse and advise operators as to how they can improve their uptime. It’s the OEMs that dictate service intervals, which are developed according to the fuel and lubrication qualities in the region. TWA | March/April 2016

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TRAILERS

Frosty reception A range of new technologies are being used inside refrigerated truck trailers in South Africa, as Transport World Africa discovers. clients. “We act as a type of intermediary between transporters and producers/ cargo owners and can establish what went wrong and where – at any stage in the cold chain. We issue real-time reports and send customers SMS or email notifications on the temperature status of their transported goods. Our system is integrated into major telematics service provider systems so that customers can see everything from a single screen. We complete the cold chain and can monitor pack houses, vehicles, distribution centres and end-customer facilities. Due to the weakening rand, everyone is looking at savings mechanisms. In terms of perishable goods, they want to save more loads, limit the number of insurance claims, reduce premiums and, ultimately, be more proactive in the entire process,” he says. Holcroft adds that South African customers have become increasingly concerned about the integrity of their cargo in light of the recent high temperatures/heat wave experienced in the country. “This has placed added pressure on the ability of service providers in the cold logistics chain to maintain the freshness of their transported goods. Maintaining the cold chain is crucial, as it impacts the shelf life of a number of products.”

KEEP I

COOL FOR

Durban: 031 508 1000 I JHB: 011 397 8993 I Cape Town: 021 959 7660 Email: info@serco.co.za I Website: www.serco.co.za

COOL FOR

Supported by national manufacturing and after-sales repair service 36-month warranty.

SPECIALIST MANUFACTURERS OF: Truck bodies and trailers that are relied upon by leading transport operators • Fibreglass dry freight and refrigerated vehicles offering superior strength and corrosion resistant panels • New generation ‘Super Reefer Lite’ which offers a substantial weight reduction

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TWA | March/April 2016

U YO

Refrigerated trailer insulation in South Africa, in general, continues to improve through the introduction of the country’s first dedicated thermal chamber, which is similar to what is used in Europe. Having a test chamber in South Africa is good for the local refrigerated transport industry as it means the issue of trailer insulation will receive more attention in the future. With the introduction of the thermal chamber later this year, there will be a new yardstick that will assist in measuring refrigerated installations. The use of air suspension on refrigerated trailers further reduces the level of vibration on the road surface, which reduces the amount of damage to fresh produce. Air suspension comes Clinton Holcroft, into its own Serco when transporting

sensitive cargo, where adjustable heights are required or with special applications. “If the return leg of a journey is undertaken with an empty trailer on bumpy roads where no ballast can be added, then it may be worthwhile to purchase an air suspension trailer to avoid excessive bouncing,” says Fred Evans of Polyflex Urethanes. “However, air suspension costs far more in capital expenditure and is more costly to maintain and repair in the event of damage,” he adds. Further road securing measures, such as straps and shoring bars, also reduce the likelihood of damage. Most local trailer manufacturers offer a wide range of securing devices. It is possible to monitor the temperature of trailers remotely, Holcroft says. “Remote temperature monitoring is popular in Europe and is now growing in South Africa. We have partnered with Ikhaya Automation, which is among the leading local specialists in this field. There are practical benefits to installing remotes; they proactively identify the temperature and ensure the product is delivered at the correct temperature. Praba Moonsamy, managing director, Ikhaya Automation, says an electronic system is installed on to the truck body, which feeds real-time information to

OME OF THESE technologies include thermal dividers and partitions, and air-strip curtains, which are fitted to the rear doors of refrigerated trailers. “Serco uses high-density foam in panels for maximum thermal control,” says Clinton Holcroft, managing director.

DRIVER MONITORING | PANEL DISCUSSION

MIX TELEMATICS Kenneth Bailey, Executive Divisional Director, MiX Telematics What driver behaviours are you able to monitor? KB We can monitor over-speeding, excessive idling, possible accidents (harsh braking), entry of no-go/highrisk areas, driving between non-permitted hours (this can be a contract or insurance requirement), driving in excess of specified hours (also a potential legal requirement), and unauthorised stopping on-route. We are also able to monitor productivity-related behaviours such as remaining at a depot at 08:00 (i.e. the load hasn’t been dispatched yet), parking for greater than 30/60/120 minutes outside client premises, and parking for greater than 120 minutes outside the depot (i.e. offloading at a client and turnaround times are too long).

How do customers receive information about driver behaviour? Depending on the event, either the driver or manager is contacted telephonically in real time. If a driver triggers an event for the third time in a 24-hour period, one of our trained agents will phone the client’s senior management in real time in order to report the repeat offender. All events and driver responses are logged in an occurrence book and emailed to the client daily or weekly, depending on the client’s requirements.

offender or if there is an error with one of the vehicles. Voice logs are available for 30 days.

How quickly can this information be made available? Events are responded to in real time or escalated telephonically. The Occurrence Book will be emailed to management the next day between 06:00 and 07:00.

How much money have you been able to save companies through driver-monitoring technology (DMT)? Savings are determined by the drivers’ driving behaviours. Our goal is to generate savings to cover the cost of the telematics unit and the Track and React service. Typically, we record a reduction of greater than 12 ℓ/100 km in fuel. These savings are due to reduced over-speeding and idling. A reduction in unauthorised trips can save up to R6/km in fuel. By outsourcing this monitoring, fleets are able to deploy staff elsewhere. The cost of outsourcing is less expensive than running your

own 24/7 control room, due to the economies of scale.

What common misconception exists about DMT? Drivers are usually not aware of the accuracy of the data, or the motivation behind adopting DMT. Drivers believe that DMT is there to catch them out, when it is meant to identify training or coaching needs. Drivers must be aware that their employers are investing in their safety.

What technology or features will you be adding in the future? We’ll be adding a journey management feature to reduce risk en-route as well as an hoursof-service feature to assist with preventing fatigue.

What level of detail can you include in your driver behaviour reports? In terms of time, we can pinpoint the exact time an incident occurs. All events in the Occurrence Book have GPS coordinates to show the exact position the violation/event took place. We identify drivers’ names and the number of times they’ve violated predefined events over a selected period, and whether the driving violation has taken place across all the different vehicles that specific driver is using. This is used to determine if the driver is a repeat TWA | March/April 2016

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CTRACK FLEET MANAGEMENT SOLUTIONS Hein Jordt, MD, Ctrack Fleet Management Solutions What driver behaviours are you able to monitor? HJ We report and measure direct driving behaviour such as harsh acceleration, harsh braking, speeding or harsh cornering. When our in-cab driver terminal is used or a driver behaviour indicator is installed, the driver is given real-time feedback on their driving style to promote better driving. A series of green, amber and red warning lights instantly alert the driver of any infringements. Ctrack telematics technology allows real-time monitoring of your drivers’ per-

what’s happening using real-time and historical data.

What level of detail can you include in your driver behaviour reports? Ctrack’s web-based driver behaviour reporting provides a comprehensive fleet overview with both individual vehicle and driver reports. We can also investigate incidents such as accidents by analysing the data produced. Through the detail Ctrack includes in the our detailed reports, customers are realising benefits,

through improved driving behaviour – typically, this ranges from 5% to 20%, depending on the type of fleet and industry. In one case, a fleet company with 186 vehicles saw a 20% improvement in fuel consumption, while speeding events were reduced from 46 000 in 2014 to just 4 800 in 2015. In another case, a fleet company with 270 vehicles saved 80 000 litres of fuel in one year. We have seen cases where insurance costs have been reduced by up to 5% per year, and we have seen indirect savings on maintenance and repairs by managing the total fleet status.

What common misconceptions exist about DMT?

formance, at all times. We control vehicle usage by the use of a driver identification key, RFID tag, or biometrics. After a driver clocks in, we record and report on behaviour in relation to stop and starting points, route compliance and points of interest where, for example, designated delivery reports or marked no-go areas can restrict vehicle abuse.

How do customers receive information about driver behaviour? Customers have the option to receive alerts via email or SMS, or may choose both. We provide daily reports, which can be viewed on the Ctrack Business Intelligence dashboard. Ctrack’s reporting is dynamic, which avoids waiting when using old-fashioned static reports. We can provide instant answers to

which include reduced fuel and maintenance costs, fewer accidents, reduced risk and increased profits.

How quickly can this information be made available? Driver performance information can be accessed in near real time. It is up to the customer as to whether he wants to view it hourly, daily, weekly or monthly. Reports on high-risk incidents, such as speeding, can be sent immediately via SMS or email.

How much money have you been able to save companies through driver-monitoring technology (DMT)? We have numerous cases where our telematics technology has saved companies on fuel and maintenance costs

DMT often has negative connotations, since it can easily appear as if fleet operators use the information supplied to them to “punish” bad driving behaviour. In some companies, the tracking units are seen as negative control measures, rather than positive for the company as a whole. The driver needs to be educated to understand that accurate driver scoring reports can help address the training needs of non-efficient drivers, reduce the risk of driver accidents and improve safety with vehicle-speed monitoring. Certain companies may choose to reward good driving behaviour, which can further contribute to a happy and productive employee – an action that we support.

What technology or features will you be adding in the future? Our technology is well geared to support the Road Transport Management System self-regulation scheme in implementing a vehicle management system that preserves road infrastructure, improves road safety and increases productivity. Being part of a global company, Ctrack also possesses other technologies that can be integrated to provide software-as-aservice solutions across industries. With our fleet management software, Ctrack FleetConnect, we will continue to integrate with third party software such as fuel cards. TWA | March/April 2016

FLEET MANAGEMENT

Debut industry conference

CCORDING TO A new research report from analysts Berg Insight, the number of active fleet management systems deployed in commercial vehicle fleets in South Africa was 0.9 million in the fourth quarter of 2015. In light of the above, Intelligence Transfer Centre (ITC) is hosting the 1st Annual Fleet Management Conference on 4 and 5 May 2016, at the Indaba Hotel in Fourways, aimed at minimising risk and increasing the efficiency of vehicle fleets. Captains of industry and key stakeholders will deliver recent case studies, highlighting the policies they have put in place to guarantee the smooth running of fleets, effective operations and product and service delivery. The conference will include, among others, presentations from South African Breweries, Fleet Africa, the Cross Border Road Transport Agency, Eagle Liner, MiX Telematics, Altech

Netstar, MasterDrive and the Maruleng Municipality. Christopher Hill from Grant Thornton (Canada) will conduct a best-practice workshop through a live video conference.

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Key discussions Key issues to be discussed include: optimising a budget to ensure the smooth running of a fleet life cycle; managing the safety and security of fleets at all times; fuel management and fuel security; vehicle tracking systems and real-time vehicle and driver monitoring; the advantages of telematics in tough economic times; and improving crash investigation methods to ensure accountability.

Intelligence Transfer Centre ITC is a leading South African conference company headquartered in

Johannesburg, and has regional offices in Durban and Namibia. This ETDP-SETA-accredited company is seen as a progressive industry analyst within the conference arena, providing conferencing and training based on extensive market research. ITC believes in closing the knowledge gap across the public and private sectors by creating platforms for people to gather and exchange ideas, whether in the form of conferences or in-house training. ITC hosts over 35 events a year, has a Level 1 BBBEE rating and is SAQI accredited.

TWA | March/April 2016

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FLEET MANAGEMENT

Culture clash To what extent do cultural differences impact the South African transport industry? Quite significantly, explains Jim Ward.

OMPARED TO Europe, Africa's drivers are differently schooled and experienced. Our roads vary from awful to excellent, and they include gravel stretches that are often unfenced, with livestock and game wandering across roads at night. Our distances are longer and our loads heavier. We pull interlinks, not semi-trailers. Our temperatures vary greatly, even over the course of a single trip. We face big altitude changes along single routes with steep inclines. We cannot stop safely along the road at night. We often encounter unlit vehicles parked dangerously or making U-turns on freeways. We are often many hundreds of kilometres from help and, most of all, our culture plays a much stronger role in our working lives than it does overseas, where it has largely been forgotten with the passage of time.

Lost in translation Some technologies don't translate well when they come to Africa. Some trucks may use a system of fault codes; a little light on the dashboard that emits a series of flashes in batches of three. One would note them, then check them against a long chart to establish what that particular fault code means. This does not work well in the KZN Midlands. It is hard to tell if the cause of a breakdown is a 358 code, or a 572, or something else. When reporting the

fault to the operations centre, a driver might Transkei, you might be on your own until the say something equally cryptic like: “The light is following evening – minus your load. shining; it's on and off and on and off again.” Fault codes do not translate well into eth- Tough stuff nic languages. It's the same with warning We know our industry and we know what lights. European truck makers love complex works. We understand the benefits and warning systems that first turn yellow, then want the driveline, engine developments, air blink yellow, then turn red and so on. In suspension and smart gearbox. We don't many instances, drivers in Africa keep going want lightweight handles, plastic steps, controls and trim designed for a until they reach a place We experience Norwegian who lives on muesli. where they can buy We run specialised, imported food and beverages, wear on equipment in some operations regardless of what the components in and these machines go out dashboard says. SA that engineers over a 1 000-hour warranty While younger drivers overseas have after three months of use. A may be more familiar thousand hours in the UK or with these warning sysnever even US roughly equates to four tems, the warning light heard of years of use. We experience for a blocked pollen filter looks very similar to one indicating low wear on components in South Africa that gearbox oil. The first-world assumption is that engineers overseas have never even heard the driver will pull into a dealership, conveni- of and the purchasing price of imported ently situated in the next village, and have it goods means we have to sweat our assets checked. This doesn't work if you're 250 km to survive. We strip and repair components, replace from Upington heading due west. Europeans cannot believe we want full gearboxes, rebuild engines and rewire trucks engine shutdowns because they think it's and cabs. And we work on life-cycle costs. barbaric. Limp mode doesn't help if there's We have to achieve a planned service life no coolant left. They can't believe a driver from the truck; we don't trade it in because would ever continue with his dashboard lit it's a few years old or because there is a up like a Christmas tree. If you break down version with a better grille. We sell it because on a road in Holland, help will arrive in a few it has covered a million kilometres and is minutes. However, if you break down in the worn out. TWA | March/April 2016

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Mobile matchmaker A new mobile application and website have become the quickest way for transport and courier companies to interact with cargo owners, writes Tristan Wiggill.

E FOUND THIS out for ourselves during the Johannesburg launch of Snapcart, held at Microsoft South Africa’s Bryanston office last month. "We see ourselves as a technology enabler for the courier and transport industry. We have created a platform where cargo owners are connected to transporters and/or couriers through our website or mobile applications. We provide quotes for them on those shipments," explained Kobus van der Westhuizen, director at We Quote, the company that owns and operates Snapcart. The rationale for the application is logical; transporters often use set routes where loads are carried one way on two-leg return journeys. The same problem applies to the courier industry.

“We visit the CIPC website to establish who owns the businesses. We need to give customers peace of mind that, should something go wrong, the transporter or courier involved is adequately covered.” The benefit for transport and courier companies using the app is that they essentially have potential clients on tap, at their fingertips. Push-route notifications inform registered transport and courier companies when suitable loads have been uploaded. Registered companies can choose to see every posted shipment or can narrow it to specific load types or regions. Users get notified of new loads immediately, so that arrangements can be made to secure a return load, even while drivers are in transit.

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"A lot of business is being lost and we want to connect the dots. The Snapcart solution is designed for everyone – the man in the street, SMMEs and large corporates. Currently, people search for suitable transport or courier companies online, use digital or printed business directories or simply phone around. These time-consuming methods don’t provide instant quotes and users remain unaware of the reputations of the companies they're contacting. They don't know if a company has goods-in-transit (GiT) insurance. We provide this information,” he said. Snapcart vets service providers using its services, by checking that they are registered with CIPC and have GiT insurance. Transporters and couriers wanting to use the service are required to upload details of their GIT, via the Snapcart app.

Companies bid on available shipments on the app, with other transporters/couriers able to see the bids for any given load. They cannot see who has made a bid/s. “The app is adaptive in that if one wishes to transport liquid bulk, the app won't ask for length and height dimensions as with general cargo. Companies whose bids are rejected are informed as to the reasons, while winning bidders are notified instantly that they have been successful,” Van der Westhuizen explained. Proof of delivery (POD) has to be recorded and uploaded on the app at the point of delivery. Once this process has been completed, the agreed funds are released. Shortly, it will be possible to sign PODs directly on mobile devices, which will then be sent to Snapcart's servers.

Above left André Trollip, software engineer, and Kobus van der Westhuizen, director, at the Johannesburg launch for Snapcart Above Microsoft BizSpark assisted the tech start-up

The Snapcart app takes care of all required documents electronically, including invoices, which is highly convenient as paper PODs often get damaged and/or lost. A lot of information is also preloaded onto the app, including verified addresses, thereby eliminating the chance of addresses being entered incorrectly or being misspelt. Being a business broker, Snapcart receives a small fee on each shipment processed, which is paid for by cargo owners. The amount charged remains flat for couriers and works on a sliding scale – from 2.5% to 10% – for cargo owners that make use of transporters.

Rate and locate Transporters and couriers are rated by customers on the quality of the services they deliver, with cargo owners deciding whose services to use based on price and/ or user ratings. Users are able to track the whereabouts of drivers transporting/couriering their goods, as opposed to the goods themselves. Accident and fleet management capabilities are also being planned, which should appear in future app updates, along with e-toll mapping and incident reporting, among other features. The Snapcart application is a free download from the iOS or Google Play app stores and registration is free. TWA | March/April 2016

CORRIDORS

Transport season Transport World Africa learns more about the N1 corridor, discovering the challenges and opportunities it presents to transporters and logistics service providers.

UNNING THROUGH the Western Cape, the N1 cuts across the south-eastern corner of the Northern Cape, enters and exits the Free State, crosses into Gauteng and, finally, ends up in Limpopo. “A primary consideration for drivers on the N1 route is long-distance fatigue, as the corridor traverses large areas of arid Karoo landscape. Most drivers are not interested in the geographical history of the area and, therefore, become easily bored. Distance and speed perceptions are reduced at night, particularly when drivers are already fatigued,” says Johann Olivier, operations director, Integrated Transport Industry Solutions. Stationary trucks are a frequent hazard, since drivers often choose to sleep roadside, thereby saving on parking fees. The route has a finite number of safe, clean overnight rest points. Trucks also frequently break down, particularly in the summer months when ambient temperatures exceed 40°C. Part of the route travels through the Huguenot Tunnel. Accidents here pose a severe danger to other road users, sometimes forcing commercial vehicles to use the dangerous and lengthy Du Toit’s Kloof pass or wait for the accident to be cleared. Depending on the nature of the incident, accident delays can last for several days, especially if a fire breaks out in the tunnel.

TWA | March/April 2016

Support structures As alluded to earlier, there are few truck stops with adequate comfort and security facilities. Popular stops are found in Cape Town, Beaufort West, Colesberg, Bloemfontein, Johannesburg and Polokwane, with smaller refuelling facilities outside main urban areas. Mechanical and technical support are only really provided in Beaufort West and Colesberg, with refuelling and minor technical support available at smaller locations. The N1 route travels through the Hex River Valley, a spectacularly beautiful area with towering mountains. While there are numerous small towns accessible from the N1, there are few facilities for commercial vehicles and the locals do not always appreciate heavy goods trucks entering their otherwise peaceful locales. The unique geological history of the Karoo means it consists of vast open plains as far as the eye can see, resulting in long stretches of straight road bereft of any real distinguishing features. Drivers, therefore, prefer to get through these areas as quickly as possible. The Free State provides similar geography to the Karoo, but

differs greatly in agricultural activity. It is just as flat and featureless, although the road surface is generally in better condition, with longer stretches of dual carriageway, which assists overtaking. The Free State section passes through Bloemfontein, where adequate truck stops offer refreshments, opportunities for relaxation and full technical and mechanical support. Again, elevated temperatures often result in breakdowns and stationary trucks on the side of the road. High wind loadings are often encountered on this stretch of the route, and many vehicles get blown over. Gauteng is highly industrialised and developed and is, in most cases, the end destination for long-haul trucks departing Cape Town. Adequate road infrastructure allows for traffic to divert off the N1 route to various destinations, particularly to the east, towards the province’s large-scale industrial and commercial developments. While the province frequently plays host to spectacular late-afternoon thunderstorms, these are often accompanied by heavy rains and hail, capable of causing

“A primary consideration for drivers on the N1 route is long-distance fatigue.”

CORRIDORS unlike the N3, as the much longer distance of the N1 means traffic is more evenly spread. However, seasonal patterns, especially during the citrus harvesting periods in the Western Cape, impact significantly on heavy-vehicle traffic volumes. This is the time when road transport logistics companies consider using rail. Traffic along the N1 route varies widely, with the South African National Roads Agency Limited (Sanral) measuring traffic volumes at a number of traffic counting stations including the Vaal, Verkeerdevlei, Grasmere and Huguenot. The approximate average daily traffic at the Vaal Plaza is 8 447 vehicles, 7 588 at Verkeerdevlei, 15 144 at the Grasmere Plaza and 11 889 vehicles at Huguenot. The approximate average daily traffic for freight or heavy goods vehicles is 1 631 at the

into Zimbabwe, where the N1 route officially terminates.

severe damage to vehicles and making the tarred roads precarious. Gauteng is also the meeting point of the N3 from Durban and, as a result, large quantities of import and export goods are moved from here to and from SADC countries up north. This means increased traffic volumes towards Musina and the infamously congested Beitbridge border

Volumes Traffic volumes on the N1 corridor are lower than they are on the N3 route between Durban and Johannesburg. Heavy-vehicle volumes on the N1 are not such that they create traffic problems for other road users,

Entrance to the Cape Town port is heavily guarded TWA | March/April 2016

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Vaal Plaza (19.3%), 2 364 at Verkeerdevlei (31.1%), 1 750 at the Grasmere Plaza (11.5%) and 2 140 at Huguenot (18%). Peak traffic periods vary, not only between sections, but also for school holidays, seasonal fluctuations and different days of the week. On average, the peak period for heavy goods vehicles at the Vaal Plaza is approximately between 16:00 and 17:00, with an outlier of 14:00 on Tuesdays. Verkeerdevlei Plaza’s heavygoods-vehicle traffic peaks, on average, between approximately 14:00 and 15:00, with the exception of 13:00 on Saturdays. At the Grasmere Plaza, the peak period for freight vehicles is, on average, approximately 16:00 on weekdays, 10:00 on Saturdays and 15:00 on Sundays. At the Huguenot Plaza, heavygoods-vehicle traffic peaks, on average, between approximately 09:00 and 10:00, with the exception of 16:00 to 17:00 on Fridays and Sundays. Dealing with the peak transport challenge means: • extended transport working hours and distances • extended dispatch and receiving operating hours • hot-seat drivers for continuous capacity • relocation capacity from other regions • leveraging other inflows (e.g. from Eastern Cape) • rerouting empty vehicles (e.g. from Eastern Cape) • accepting empty legs to handle priority shipments • supplementing with intermodal capacity.

Maintenance N1 law enforcement is not a Sanral function and is handled by the provincial and local authorities. “At certain sections, Sanral provides intelligent transport systems, which include traffic monitoring with the use of cameras. This is for, among others, incident and crash detection. It also enhances safety for road users and serves to monitor operating conditions,” says Vusi Mona, GM: Communications, Sanral. Routine road maintenance is continuously carried out. “These activities include the repair of potholes, sealing cracks, guardrail repair, vegetation control and clearing

TWA | March/April 2016

Container scanning improves security and port efficiency

drainage structures. This is part of the preventative maintenance measures. As and when necessary, subject to budget availability and where economically feasible, road infrastructure capital works to prolong pavement life are undertaken. Sanral monitors traffic and pavement conditions,” he adds.

Evaluation A Transport Development Index (TDI), developed by Transport for Cape Town (TCT), established that the direct transport cost (fuel, salaries, maintenance and repairs, toll fees, etc.) for the freight user group is R1.755 billion per annum. It says the cost of congestion for this user group is around R121 million per annum and the cost of safety is R19 million per annum. The cost of crime is said to be in the region of R15 million per

annum, with the impact of freight transporters on Cape Town’s residents in terms of accidents amounting to in excess of R930 million annually. The impact of freight transporters on the city’s road network (capital expenditure and maintenance) is quoted at R713 million per annum. The TCT ‘Status Quo Assessment: Freight’ (2015) revealed that there is significant growth in road-based freight along Cape Town’s major road corridors for both bulk and containerised goods, due to the growth in fast-moving consumer goods. Since the deregulation of the freight industry and the focus of Transnet Freight Rail on profitable business, rail’s share of freight has dramatically declined, which further compounds the problems identified above. The Port of Cape Town, which is the major generator of freight in the city, has expansion plans to roughly treble its

Managing demand provides significant opportunity for logistics service providers

N1 corridor considerations •V olume flow on the Cape Corridor is highly imbalanced - Northbound: 20.5 million tonnes per annum (2009) - Southbound: 12.1 million tonnes per annum (2009) • T ransport demand on the Cape Corridor is highly seasonal - October, November and December are challenging months for transporters •V arious mechanisms are used to cope with the peak, including rail • I ntermodal capacity has been tested as an alternative •M anaging demand provides significant opportunity for logistics service providers

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CORRIDORS current container handling services in the next 20 years. This despite the fact that Transnet Freight Rail is its sister company, and that around 95% of the freight arriving at the port is road-based. Overloading freight vehicles has a significant, negative impact on road infrastructure, and results in premature road deterioration and pavement damage, with the structural condition of roads in the city deteriorating gradually due to funding constraints. This has a direct cost impact on road freight transportation. Apart from the surfacing quality, road geometry is associated with a significant number of freight crashes. Overloading and many other freight-related transgressions of regulations are not adequately controlled; penalties for transgressions are low and self-regulation is rarely embraced. The city’s roads are constrained for many hours of the day, and freight acts as a “capacity suppressor”. High local transport costs reduce the competitiveness of local goods and, subsequently, the competitiveness of the region. Noise, as well as gaseous and particulate emissions from freight operations, is an increasing concern, while the transportation of dangerous goods (hazardous materials) is uncontrolled and insufficiently regulated.

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Despot depots Apart from the predicted growth in road-based freight, it is clear that the main logistics centres and depots are no longer sited optimally, which leads to suboptimal coordination planning and a reduced ability to minimise trips. There is currently no land-use category for, as an example, container depots and, as a result, these are usually located as close to the port as possible. Warehousing and distribution centres (particularly those that store many of the same commodities) are also located suboptimally from a transport planning perspective. And, as there is a general lack of information sharing between logistics companies, as well as suppliers and supermarkets, part-load trucking is the norm. Intermodal facilities currently exist at the port and at the Bellville Container Terminal. The latter effectively acts as a dry port but has allocated space for warehousing and distribution functions. Although many producers, manufacturers and distributors make use of this facility to transport goods to and from the port, it is currently an underutilised piece of infrastructure. Data collected by the City of Cape Town indicates that between 2009 and 2013, 177 crashes involved freight vehicles. Serious and fatal crashes involving trucks invariably cause extensive congestion due to their nature, the difficulty of removing the truck and/or the contents of the vehicle and the space they occupy. A significant volume of road freight involves long travel distances – this implies that trucks coming from outside the provincial boundaries have a need to stop and stage for safety, convenience and comfort reasons, as well as to meet their logistics demands. TWA | March/April 2016

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Fruitful business South Africa, through the joint operations of Transnet, has the ability to become a global leader in refrigerated-container-rail intermodal transportation, says Tristan Wiggill.

OUTH AFRICA is the third largest exporter of fruit in the world. Blossoming trade routes to the East and Middle East, combined with the flailing rand, are bolstering industry exports. Much of the fruit the country exports is transported great distances, from areas in Zimbabwe, down to the Durban and Cape Town ports. Despite the growth in new markets, 70% of these products are exported to the greater European region, which has been a firm supporter of Southern African fruit for many years. In terms of using rail to transport this cargo, South Africa has the density and the distances required to make it work as a preferred transport mode. Like all things, the cost aspect is one of the most important areas that need to be addressed. Before 2005, as much as 80% of all citrus produced in Limpopo and Zimbabwe was transported to Durban and, because of the sensitive nature of the cargo, only a small fraction of this was transported by rail.

TWA | March/April 2016

But since 2005, with the change in modal shift towards containers, fruit exporters have been able to add another layer or two of cartons onto their pallets. Traditional o-type wagons were, by that stage, no longer capable of transporting extra-high pallets. High cube shipping containers, however, allowed extra layers to be added to the pallets. Between 2005 and 2008, the rail service almost became redundant. This was not because Transnet didn't try to revive the service; they tried to cover it with a lot of different types of options, which didn't succeed.

Squeezed margins Today, fruit producers are transporting a lot of citrus from Tzaneen down to Durban and Cape Town. This started in late 2009, around the time when avocados stopped being transported on rail, due to operational problems. “Last year, we managed to transport up to 900 containers from Tzaneen to Durban and Cape Town, a 300% increase over the previous few years. So, as an exporter, we are making great strides in getting fruit back on to the trains,” says Mitchell Brooke, logistics development manager, Citrus Growers Association of Southern Africa. “We believe there is huge potential to increase this to 12 000 containers a year, according to our studies. We've

looked at the geographic locations of fruit. Our production areas are growing quite significantly and we are looking at a 10% to 15% increase of production over the last three years; another 10% to 15% increase in the following three years will create more opportunity to get fruit back on to the trains.”

Dilemma The fruit export industry sits with a big dilemma: the seasonality of the business, which makes both Transnet and privatesector investments risky. “That's one of the issues we can try to address through our strategy. The second challenge is one-directional business, which applies to a lot of commodities. Moving freight on one train line and having the return line empty or bringing empty containers back is a problem facing our industry,” says Brooke. “To address these issues, we believe that there is a huge opportunity to try to find which cargo is complementary to the fruit business and try to get fruit down the Cape Corridor. Cape Town is the better option than Durban. Last season, we accomplished, on the Natcor line to Durban, a threeto-six-hour turnaround time at the port. Transnet Port Terminals has been really good at getting our trains turned around. They have given priority to the reefer trains, so a trip from Tzaneen to Durban and back takes only 72 hours. Down the Cape Corridor (CapeCor), we've

“We can get the fruit to Europe, via Cape Town, 10 days quicker than through Durban.”

FREIGHT RAIL got about three or four days on turnaround. “When there is focus on these projects, you can get turnarounds that are good in this industry. We've identified that Europe, being 70% of our market, needs a solution that will link complementary commodities. We must try to get our fruit down to Cape Town – to the European markets – and establish what cargos we can rail back up to the reef for distribution through intermodal hubs. This will address the seasonality issues as well as solve the one-directional traffic flow.

Harvesting relationships “We can probably look at domestic commodities that could be moved from the Cape Town areas up to the reef. We believe this is how we can reach our potential and increase our utilisation to 12 000 containers, minimum. We had a high-level meeting with Transnet last year, where we shared the opportunities that we've identified and we are going to present a strategy to Transet, aimed at getting a service between the reef and Cape Town to look at trying to stimulate our fruit exports on rail and looking at commodities that could complement our fruit business. This would

address the five key issues that we've picked up: • the road/rail imbalance • Durban port congestion • seasonality of the fruit industry • dwell time • decreasing cost. “If we could move our cargo down to Cape Town we could lessen the congestion at the Durban port. We can get the fruit to Europe via Cape Town, 10 days faster than we can through Durban. That is a huge benefit to our industry. It makes a big contribution to getting good market prices and attracting more business and getting a value-add to the producer. “Rail is currently focusing on the issue of cost. Obviously, if we get two-directional traffic flows, it will complement on the cost side and will stimulate more demand on the rail side. “We need to consider what the capacity is on the CapeCor line in order

to introduce the service. The first thing we need to do is evaluate the freight flows that are leaving for Europe via the reef to try to find what commodities can complement the fruit business and what commodities the fruit business can complement. In this way, we’ll get the freight flow efficiency and capacity that we need on the CapeCor.” TWA | March/April 2016

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FREIGHT RAIL

The Cape's core

Transnet’s Clement Maphaba chats to Tristan Wiggill about new locomotives and the subsequent transport opportunities for fruit and perishable goods exporters.

What is being done to attract more private sector use of the CapeCor freight service? CM New and powerful dual-voltage 23E locomotives are to be deployed to the Cape Corridor (CapeCor). This will be one of the first corridors to benefit from the newgeneration rolling stock. New locomotives will improve service efficiency, reliability, predictability, and will ultimately reduce running time through the implementation of revised operating models. Market development initiatives are also being implemented to attract rail-friendly commodities to this longdistance rail corridor.

vessels calling at the Algoa Bay Container Terminal, on their return journey. This service saves considerable time in terms of vessels not having to call at Cape Town. Once this season ends, in April, the service is adjusted and fruit trains can then be deployed to the Tzaneen/Letsitele area to operate the service for Limpopo export citrus fruit to the Port of Durban. This season, in turn, ends in September and the fleet is returned to Cape Town and Pretoria to prepare for the early grape season, starting in November. This lasts till December, running grapes from Marble Hall and Pretoria to Durban and from the Upington/Kakamas areas to Cape Town.

How does the seasonality of the corridor impact Transnet Freight Rail (TFR) and how does it overcome this?

What technologies are being used to attract time-sensitive/perishable goods cargo?

TFR plans operational activities in such a way as to maximise utilisation of capacity by deploying assets to areas where there is greatest demand at different times of the year. This smooths the impact of seasonality on the business. Refrigerated trains can be used as an example to illustrate this principle. The year starts with the movement of grapes and stone fruit from the Western Cape to Port Elizabeth to be loaded on

As has been mentioned, the 1 064 newgeneration locomotive purchased are being deployed on the Cape Corridor. This will assist in ensuring a seamless train from the Cape to Gauteng in a much more reliable and predictable manner. This is due to the fact that the dual-power capability will eliminate the need for traction changes resulting from the different power source types. This technology allows for the operation of a service design similar to that currently

TWA | March/April Jan/Feb 2016 2016

operated by the Blue Train, making the system much more efficient and time saving. Technologies are currently being developed and piloted for the operation of intermodal services on this corridor. Transnet is also focusing on operational integration between rail, ports and terminals to improve seamless logistics services.

How does TFR ensure the integrity of the cold chain is not compromised? TFR currently operates two 38-refrigeratedwagon-capacity trains (reefer trains) that have the ability to supply 38 x 12 m containers with power while in transit on the CapeCor. The reefer train is deployed from project to project depending on demand and seasonality and is operational for at least 10 out of 12 months of the year to service all the different fruit types and markets. These services optimise utilisation while meeting customer demand. Citrus trains are also operated from Tzaneen to Cape Town when the KZN Corridor is occupied for scheduled maintenance on the rail infrastructure, and at the end of the season to reposition equipment to Cape Town.

What has TFR achieved in terms of the reliability of the CapeCor service and its turnaround times? Several initiatives have been implemented on the corridor. These include a close focus on the Kimberley yard as well as the Beaufort West to Kimberley sector. In the short term, TFR has also deployed new 20E locomotives to this corridor, prior to the longer-term plan for standardised services being operated by a number of 23E locomotives.

PORTS

Cool customers

Transport World Africa weighs up the merits of the Port of Cape Town, a full-service general cargo port that includes the second busiest container terminal in Southern Africa.

HE CAPE TOWN Container Terminal is now primarily viewed as a reefer terminal, renowned for the export of deciduous fruit, perishables and frozen products. Port infrastructure allows for this time-sensitive cargo to leave inland terminals/pack houses and arrive at their chosen destination in peak condition. Transnet Port Terminals (TPT) has developed sufficient reefer stack capacity for the terminal, and continues to expand on reefer capacity in line with demand. Current reefer capacity is 3 752 points.

Getting smart TPT says it has developed a solution that augments the terminal operating system. An automated email is sent whenever an operational reefer enters the yard and is not plugged in within an hour. This helps prevent perishable goods being spoilt. Transnet National Ports Authority (TNPA), meanwhile, has made provision for energy supply to the terminal, for both current and future electricity demand. “More broadly speaking, we have taken a major step to convert our marine systems to ‘smartPORTS’ with the implementation of our IPMS (Integrated Port Management System). It replaces previous paper trails with electronic data interchange processes to improve operational efficiency,” says Sipho Nzuza, port manager. Transnet is working to optimise port land utilisation, and is deploying advanced technology and equipment in operations in order to increase capacity across its ports and terminals – to ensure that capacity is created ahead of demand.

The establishment of a planning centre, with particular focus on the container sector, will ensure that South African ports continue to be attractive to all shipping lines. An operational centre will help with monitoring and influencing the logistics of the Western Cape and beyond to bring improvements to the freight logistics chain. This will entail the setting of performance objectives with players in terminal, marine, haulier and rail operations. The centre will monitor the logistics chain proactively to prevent bottlenecks and problems to improve efficiencies on a continuous basis.

containers simultaneously with the same spreader) and dual-cycle operations, where instead of finishing a discharge across the vessel before doing a load operation, this is done simultaneously. This method leads to faster operation and savings by minimising empty trips for both hauliers and cranes. There are occasional isolated and seasonal incidents of vessel movements along the berth. A long-waves study is under way to develop long-term solutions to stabilise vessels while on the quay. Operational efficiencies are monitored on an ongoing basis to ensure the competitive turnaround of vessels. There are also other terminal operators within the port that are currently modifying their warehouses, to meet the latest international requirements for export of perishable goods. “Our key role and offerings at the Port of Cape Town include world-renowned fruit and perishables facilities. Our services for the fishing industry include catch handling, processing and export, as well as winch and trawl gear services. We offer a flexible service with 24-hour operations and skilled personnel, as well as excellent road and rail connectivity,” Nzuza concludes.

An operational centre will help with monitoring the logistics of the Western Cape

Warding off the doctor During the winter months (April to September), north and northwesterly winds backing to the southwest are frequent. Westerly gales can cause heavy range action at berths; in the summer (October to March), the prevailing wind is from the southeast – popularly known as the Cape Doctor, which can reach gale force at times. To maintain continuity during windy conditions, TPT runs a semi-hybrid operation in the terminal, using both the 28 newer rubber-tyred gantry (RTG) cranes and 10 of the old straddle carriers to transfer containers from vessels into the stacking yard. When the wind becomes prohibitive, cargo is diverted to areas of the stacking yard still being serviced by straddle carriers, which have a higher wind threshold. The terminal also implements twin-lift (i.e. lifting two 6 m

TWA | March/April 2016

PORTS

Blending in

Mossel Bay is the smallest of the eight commercial ports along the South African coast. Tandi Lebakeng tells Transport World Africa how it is dealing with the global commodity downturn. What strategy is Mossel Bay implementing to lessen the impact of the current global commodity downturn? TL All investments and port developments are guided by Transnet’s R300 billion capital investment programme, dubbed the Transnet Market Demand Strategy (MDS), which is expanding rail, port and pipeline infrastructure to increase capacity to meet market demand. While the current economic climate in the oil and gas sector may not be conducive to embarking on new exploration projects, one has to be mindful that the majority of existing offshore production activities remain operational. Demand for support to these operations will continue. On the other hand, the lull in exploration activities may provide an opportunity to perform repairs and maintenance to

exploration vessels and equipment. At the Port of Mossel Bay, marine engineering firms are available for all classes and types of onboard repairs. Mossel Bay is the only South African port that operates two offshore mooring points within the port limits. A slipway of 250 tonne capacity is also available. PetroSA’s Mossgas refinery in Mossel Bay is one of the world’s largest gasto-liquids (GTL) refineries, and has always been a leader in commercialising GTL processes. The port will continue to provide service to support this facility. Mossel Bay also acts as a complement to developments taking place elsewhere under Operation Phakisa, a government initiative focused on exploiting the ocean economy with particular focus on the offshore oil and gas sector. At the Port of Saldanha, for example, TNPA is exploring development of a new Mossgas

“Mossel Bay is the only port in SA that operates two offshore mooring points within port limits.”

TWA | March/April 2016

finger jetty with a total length of 500 m and a depth of 8.5 m, with 12 m pockets to accommodate floating docks for vessel-building and repairs. The Port of Mossel Bay has identified the slipway upgrade as one of the projects, as part of a holistic strategy, aimed at developing the Western Cape as a support base for the oil and gas sector.

How can the benefits of IPMS be maximised to increase the port’s efficiency? IPMS is a holistic, web-based, end-to-end online system that integrates marine operations, on-land operations, internal and external systems and reporting across South Africa’s eight ports, on a single platform. Customers are now able to complete vessel Above Tandi Lebakeng, port manager, Port of Mossel Bay Opposite page Mossel Bay is a support base for the country's oil and gas sectors

PORTS

bookings and marine services online in real time, and monitor the performance of their vessels in terms of loading, offloading and sailing, without actually having to come to the port to do it. IPMS is mobile and accessible from any Internetenabled device.

How will the data from IPMS be gathered, analysed and used to improve operations on the ground? IPMS provides users with access to a wide range of nearreal-time operational information – accessed centrally 24/7 – on which to base sound decisions that will improve port efficiency and performance. It uses the latest technologies to collect, analyse and process data so as to ensure transparency at all stages of the port chain and enable early intervention. Systems integrated on IPMS include: Lloyd’s Register, AIS (for vessel traffic management), IPOSS (for weather), EDI (or electronic data interchange) and SAP (for business operations, customer relations and finance). The system will also link to Transnet Port Terminals and Transnet Freight Rail, providing improved oversight of terminal operations while being used to monitor key performance indicators, security management, safety, health and environmental management and infrastructure monitoring. IPMS will assist us in being more open and transparent with our customers, thus improving efficiency and time-slotting of their vessels. It also ensures that there are limited errors and allows us to provide an efficient service to our customers in line with the benefits described above. It also improves ship turnaround times, the integrity of information that we have for our clients, and the assistance we can offer our clients in terms of reducing the cost of doing business.

“Customers are now able to complete vessel bookings and marine services online, in real time.”

TWA | March/April 2016

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PORTS

Slick operators The Port of Saldanha remains the largest and deepest natural port in the Southern Hemisphere. Tristan Wiggill speaks to port manager Willem Roux, who details the port's current operations as well as its longer-term plans.

HE PORT IS able to accommodate vessels with a draft of up to 20.5 m, or 21.5 m with the harbour master’s advance permission. Saldanha is unique in that it has a purpose-built rail link to mines in the Northern Cape. At the port, iron ore stockpiles are connected to the ship loaders via a conveyor belt system for the efficient loading of iron ore. The terminal remains the largest iron ore export facility in Africa and boasts the largest storage facility for crude oil (in South Africa) – 45 million barrels. A number of new aquaculture projects, as well as a salmon farming pilot project, were launched at the port in line with Operation Phakisa. Its long-term objectives include becoming a dual function as a specialist in repair and fabrication, and a distribution hub for the oil and gas industry. Transnet National Ports Authority (TNPA) is in the process of launching infrastructure developments aimed at attracting investment through the adoption of a public-private partnership in order to establish fit-for-purpose infrastructure that will enable economies of scale in serving the oil and gas industry.

Phakisa’s priorities Three priority projects have been earmarked for the port under the South African government’s Operation Phakisa initiative: • the formation of an off-shore supply base (OSSB) – the country’s first dedicated and customised facility supporting offshore oil and gas activities • a rig repair facility at berth 205,

at a length of 380 m and a depth of 21 m, to comfortably accommodate two rigs at a time • a new finger jetty in the vicinity of the port’s Mossgas quay, which will be 500 m long, 8.5 m deep and with 12 m pockets, to accommodate floating docks for vessel building, repairs and maintenance. Construction on the OSSB is under way and a transaction advisor is assisting TNPA with the appointment of an operator for the facility. TNPA is seeking international investment for the construction of the deep-water oil-rig repair berth and the jetty in the vicinity of the Mossgas quay.

Integrating efficiency The port collaborates with role players in the logistics chain in order to design efficient, effective and safe logistic solutions as part of reducing the cost of doing business. In this process, instances of double-handling of cargo are minimised. At the same time, the port has set performance standards for terminals, road and rail operators, as well as marine services, to ensure that services rendered are in line with best practice, while asset utilisation is optimised. Creating economies of scale holds

Willem Roux, port manager: Port of Saldanha, TNPA

great potential for reducing costs and is a primary consideration when designing logistic solutions and port services. In August 2015, the port went live with TNPA’s R79 million web-based IPMS (Integrated Port Management System). IPMS replaces manual processes and enables key port operations to be managed online and in real-time. Transnet is also optimising port land utilisation, and deploying advanced technology and equipment in operations in order to increase capacity across its ports and terminals to ensure that capacity is created ahead of demand. The port’s terminal operator has a comprehensive dust mitigation programme in place to manage the nuisance factor associated with iron ore dust fallout. This includes an on-site car wash facility, which makes it possible for vehicles to be washed prior to exiting the port. Collaboration between the Saldanha Bay Industrial Development Zone (IDZ) and the port is contextualised in a memorandum of understanding that will facilitate the ease of doing business. As the IDZ will be declared a customs-controlled area, there will be numerous benefits accrued to operators in the IDZ.

TWA | March/April 2016

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SUPPLY CHAIN LOGISTICS

Keeping it fresh

Transport World Africa speaks to Simon Korkie about the fresh produce supply chain in South Africa.

What are the challenges currently being experienced by service providers to the fresh produce industry? SK Regulatory entities that are not adequately staffed to cope with seasonal volume peaks can result in inefficiencies and poor service levels. Weather (wind) delays in ports result in numerous amendments to export vessels, bookings and processes. There are also uncertainties/ concerns around practicalities with regard to Solas weight regulations coming into effect in July 2016. The global economy is impacting carriers – for example, some services are being suspended. Also, port congestion, road infrastructure and a limited supply of knowledgeable staff exacerbate problems.

What new technologies or services are being created/used to improve your current offering? Large investments are being made in information technology (IT) and specialised systems that provide customers with visibility in service flow. Trace and track has been improved and planning assistance enhanced. Better data interchanges between customer IT platforms and logistics service provider IT platforms result in

improved accuracy and timely information flow. Measures in safeguarding cold chain and product integrity are being implemented; for example, monitoring of container temperatures in ports.

How is the supply chain being made more efficient to get timesensitive products to market faster and fresher? Growers and customers are taking more ownership in managing product quality post loading/sailing. They do this by using available data to manage temperatures and take relevant steps to assist with sound arrivals. There is increased awareness and focus from all role players to ensure sound market arrival. Shipping lines are focusing on timely departures, transit times and arrivals, and open and proactive communication in the event of deviation. Growers and customers are investing in technology to improve pre- and post-harvest and transit conditions. Better cooling facilities are being used at source and RF-enabled independent temperature recording devices are being used. Investments are being made in better technology and infrastructure by stakeholders in the cold chain. This includes

Improved trace and track technology keeps customers informed as to the whereabouts of vehicles and cargo at all times

new cold storage facilities and new and improved reefer containers. The Perishable Products Control Export Board is investing in resources to assist and guide the industry as a whole in ensuring compliance as well as improved product quality.

What considerations should be taken into account when choosing transport and storage service providers for fresh produce? The product and the intended market producers wish to serve will play large roles in service provider selection. One will have to consider if the chosen transporter and relevant storage is capable of meeting the unique temperature and specified market requirements. Such considerations will include: • c apacity to serve the grower/customer and product over the intended storage period • efficiencies in intake, handling and storing as well as loading out • track record – i.e. accident and claims TWA | March/April 2016

SUPPLY CHAIN LOGISTICS history, service experienced by relevant customers and industry counterparts • a dequate insurance in unfortunate cases of failure and claims • price – including impact on total supply chain and logistics cost. For example, the distance from source to port, and the cost of additional services above and beyond pure handling or transport.

What is the current state of the perishable goods logistics industry in South Africa? The largest and most important factor impacting the perishable logistics sector is, of course, the success, growth and sustainability of our producers and exporters in a fruit-producing country. South African producers face numerous challenges such as weather conditions, security, political factors, market and global/local economic factors. Equally as important are the global/local economic factors impacting partners in the logistics chain, such as shipping lines, transporters, ports and storage partners. At present, the impact of extreme weather conditions

does raise a concern for the industry as a whole and, although there are favourable market conditions and rates of exchange for exports, logistics entities’ success is based on volume throughput. On the positive side, producers, exporters and customers have adopted an open, strategic view with their perishables logistics service providers, including medium-tolong-term growth aspirations and planning. The business relationship has transformed from a service provider to a service partner dynamic, with logistics service providers

being empowered and trusted to play a larger role in producer/customer value chains through service offering. This allows and enables both producers and customers to streamline business and focus on core activities and production of superior products. The result is optimum marketing, as well as allowing perishable logistics service providers to apply maximum efficiencies and optimal cost chains.

TWA | March/April 2016

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MATERIALS HANDLING

On a

roll

Rolltainers are more than just metal cages on wheels and can represent a significant investment for major retailers.

ROM A SUPPLIER point of view, the local rolltainer business is competitive, with both locally made and fully imported units available. A vibrant used rolltainer market also exists, as many believe these offer better value and a quicker return on investment. However, buyers need to know what to look out for. The fact is rolltainers are used all day, every day and, like pallets, are frequently mistreated. They can, however, be repaired. “Our rolltainers are modular. This means we can remove and replace damaged side panels, instead of having to replace the entire unit,” says Mike Stewart, business developer: Retail, Trenstar. Higher-quality rolltainers can be rather expensive to buy outright; although, if well maintained, they can repay the original investment several times over, as they can last for five or more years.

Safe nest Two- and four-sided units are available, with the latter being the most popular due to increased versatility. Since rolltainers are often used to carry expensive, highrisk items like cigarettes and alcohol, they are frequently equipped with various security features and locking mechanisms. “An important feature of rolltainers is their degree of nestability,” says Stewart. “When they are full, they get stacked next to each other and, when empty, they can be folded (nested) into each other to save space. This is a major benefit in reverse logistics and is a strong selling point in what is known in the retail industry as the ‘race for space’.” A problem for rolltainer suppliers is the tendering process, where purchase price is the leading consideration. This results in cheaper, inferior products entering the market. The reason expensive rolltainers are expensive is because much consideration is given to their design and

engineering. “Good rolltainers are hardy and equipped to deal with rough treatment as well as the weather. The better ones are thoroughly galvanised and electroplated to prevent rust,” Stewart continues.

Keeping clean Another important consideration relates to hygiene. Small stickers must be used to identify the goods, which later need to be

removed. Sticker residue left behind must be properly cleaned off before it may be used again. Operators also need to check that shrink wrap does not get caught up in the wheels. The retail market is saturated with pallets, but these are inefficient in terms of the space they require in the back of trucks. Pallets can only be stacked as high as the transported product will allow and there is a limit to how they can be stacked. This results in poor truck utilisation. Conversely, rolltainers are usually between 1.8 m and 2 m high and can be nested together when empty. This saves space in the truck and in-store.

Easy rolling Rolltainers really come into their own between the distribution centre and the store – the last 100 metres in retail – because they allow transporters to move more products and don’t require fork lifts or pallet jacks to load and offload. Pallets need to be unwrapped and unboxed, which creates a lot of waste that needs to be disposed of. Unlike pallets, rolltainers do not require boxing. Rolltainers are simply pushed into the stores before being emptied and nested to save space and time. The whole process of getting products into stores from the trucks is, thus, made more efficient.

TWA | March/April 2016

INDUSTRY NEWS

Stacking up

Logistics leader cautious amid tough trading conditions IMPERIAL LOGISTICS has posted interim results that reflect marginal revenue growth in the majority of the industries in which it operates. Cobus Rossouw, chief business development officer, says that the group’s South African business has expanded across almost all industries in the last six months. “This is great news. To achieve real, organic revenue growth in this testing economic climate is truly commendable,” he stresses. A strong performance by the division’s operations in the rest of Africa reflects the

Long-time Imperial businesses and recent acquisitions are both performing well, says Cobus Rossouw

continued success of the group’s strategy, with revenue and operating profit growing by 17% and 41% respectively. Expansion into new markets and partnerships with new principals delivered favourable results. Recent acquisitions also performed well and delivered good, continued growth in the distribution, pharmaceutical, consumer and healthcare operations.

Partners keep their cool BARLOWORLD LOGISTICS has acquired 100% of multi-temperature secondary-storage distributor KLL Distributors, further expanding its service offerings into multi-temperature food logistics. KLL primarily serves the convenience sector as well as top-end retailers in South Africa. “These [KLL and Aspen Logistics] acquisitions are in line with our strategy of servicing a growing market need for multi-temperature, multi-product, multiprincipal and multi-drop network solutions,” says Steve Ford, CEO, Barloworld Logistics. “KLL provides speed to market through frequent small drops and an ability to integrate easily with national retailers’ ERP systems,” he motivates. “The two deals will enable Barloworld to scale for growth in this sector, leverage our capabilities and offer more holistic supply-chain solutions to a broader customer base – thereby extracting greater value for the market,” adds Barloworld executive Gavin Wilson, who will head up the new division. KLL’s managing partners – Gustaf Oschman (pictured, left), Lizette Brooks and Stephen Herbert – will remain in the business, forming part of its management team; Barloworld’s Gavin Wilson (right) will lead the division

TWA | March/April 2016

“While our cross-border transport operations are under increasing pressure, due to volume and price challenges, we have continued to see very good growth in our distribution, pharmaceutical, consumer and healthcare operations in the rest of Africa,” he concludes.

Telematics gets customers out of jams

According to Harry van CTRACK HAS announced a Huyssteen, custodian of the total transport solution to fleet Transport Forum, combating owners by combining fleet crime is enhanced when management with the ability to different stakeholders work closely together detect signal jamming. The announcement was made on the heels of the Transport Forum’s monthly Special Interest Group (SIG) event held in Johannesburg, which brings together highly recognised thought leaders to discuss the most prominent issues facing the South African transport industry. “With signal jamming a reality, we are now able to offer our customers the option of installing a non-GSM jamming detection module as part of their fleet management system to ensure continuous visibility, helping to combat vehicle theft,” Hein Jordt, MD, Ctrack, said. As signal jamming has the ability to prevent a telematics unit from broadcasting its position to the service provider, it is being increasingly used by criminals to hijack trucks and trailers.

INDUSTRY NEWS

New regional truck centre in Pretoria

Channel partners look ahead MiX TELEMATICS welcomed 42 delegates to its 2016 Africa Channel Partner Conference, held at Montecasino in Johannesburg from 16 to 18 February. The group represented 28 channel partners from more than 20 African countries, and included MiX colleagues from management, sales, product management and marketing.

Local plant nears 100 exports FAW VEHICLE Manufacturers SA has registered 90 units built locally for export into Africa. A growing number of African truck dealers who traditionally placed their orders with FAW China continue to move their orders to South Africa, owing to the shorter lead time for delivery, the high levels of quality from the South African plant, and the reduced cost of sourcing vehicles on the same continent. From the cost point of view, the African buyer can save between 25% and 40% on complete vehicle import duties. Another advantage of importing from South Africa is that customers can get their vehicles within 30 days of order – much sooner than from China, which normally requires three months between order placement and delivery. The Tanzanian dealer noted that their best sellers are the 6x4 truck tractor and 6x4 15 m3 tippers.

MERCEDES-BENZ South Africa (MBSA), along with its brand divisions Daimler Trucks & Buses and Mer cedes-Benz Vans, recently celebrated the opening of the Regional Centre Southern Africa (RCSA). RCSA will be responsible for Daimler’s full commercial vehicles portfolio in the region – from Mercedes-Benz vans, heavy-duty Mercedes-Benz trucks and buses, as well as trucks and buses from Fuso. Geographically, RCSA will cover South Africa, Namibia, Botswana, Zimbabwe, Mozambique, Malawi, Zambia, Lesotho and Swaziland. Attending the announcement event at the Zwartkops Raceway were Kobus van Zyl, executive director: Daimler Trucks & Buses Southern Africa, and Wolfgang Bernhard, board member: Daimler AG, responsible for Daimler Trucks & Buses TWA | March/April 2016

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BREAKBULK AFRICA ATTRACTS THE WORLD Angola Australia Belgium Botswana Cameroon Canada China Denmark France Germany Ghana Guinea-Bissau Hong Kong India Ireland Italy Kenya Luxembourg Mozambique Namibia Netherlands Nigeria Pakistan Poland Republic of the Congo Senegal Singapore Somalia South Africa Switzerland Tanzania Tunisia Turkey Uganda United Arab Emirates United Kingdom United States Source: Breakbulk Africa 2015

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AIR CARGO

Sustainable growth within grasp Aviation’s big idea – perhaps its biggest, and one that I am sure will increasingly capture media attention – is carbon-neutral growth (CNG). By Tony Tyler

N LINE WITH historical trends, air travel is in high demand, with an average 3.8% annual growth expected until 2034. By then, airlines will be carrying seven billion passengers a year – the world’s current population, give or take. Even if governments don’t always seem to value our industry very highly, people do. Be it for visiting friends and family, for vacation or for business, air travel connects the world. And that connectivity is enormously beneficial. Some $2.4 trillion in GDP contributions and 58 million jobs testify to that. Aviation plays an important role as a catalyst for economic activity and social development. Our world would be a much poorer place, in many ways, without the ability to connect globally. And, in a fairly rare development, the airline industry is making some money; not a lot admittedly – on average, less than $10 per passenger in fact. It’s a thin margin, but enough to return the cost of capital – an even rarer event than overall airline profitability. It is important to say that consumers are getting a great deal too. The real cost of the average ticket is significantly lower than it was 20 years ago. However, profitability is important so that airlines can invest in fleet revitalisation. Modern aircraft have longer range, are quieter and more fuel-efficient, and enhance both the passenger experience and connectivity options. The industry, however, has to meet the demand to fly

in an environmentally responsible way. The new aircraft will emit far less CO2 than older models. But this won’t achieve the sustainability necessary to ensure the industry’s licence to grow. Along with integrating more fuel-efficient aircraft into their fleets, airlines are working comprehensively to improve efficiency, develop sustainable alternative fuel sources and much more. Our goal is CNG from 2020 and eventually a cut in net emissions to half 2005 levels by 2050. This is an industry that’s not afraid to roll up its sleeves. Every day, across 100 000 flights, there are operational challenges, large and small. And, every day, it overcomes them. From 2020, the industry will do this all without adding to the world’s carbon footprint. Now that’s a great idea! 2016 will be a critical year in the pursuit of sustainability. In September 2016, member states of the International Civil Aviation Organization (ICAO) will come together at the 39th ICAO Assembly to discuss – and hopefully agree on – a market-based measure that will allow airlines to manage their carbon footprint. The first choice for airlines is a mandatory global carbon offset scheme. And the industry is working hard with governments to achieve an agreement. It’s a huge idea. Sustainability is not a competition – it is a basic promise that any business must achieve. But airlines can rightly be proud of their leadership in this important area. Aviation’s commitment to the environment is second to none. Of course, there is a huge amount of work to do before an agreement at the ICAO Assembly can be assured. And there will be even more work to do after that. Putting a global, standardised scheme in place in a little over three years will not be easy.

THE AUTHOR

Tony Tyler is the director general and CEO of IATA.

Index to advertisers 2nd Annual Vision Summit 2030

FAW 3

Sapics 2016

Africa Rail

Fleet Management Conference

Africargo Meet 2016

Globaltrack IFC

Sapics Transnet

Barloworld Logistics Africa

IBC

Ledwaba Brokers

18 11

Serco 13 Snapcart 20

MAN OFC

Ctrack 16

MasterRubber 34

Volvo Used Trucks

Cape Logistics 2016

MiX Telematics

Volvo OBC

Breakbulk Africa

TWA | March/April 2016

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