Transport World Africa by 3S Media

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Intraregional supply chain solutions from producer to consumer

Commercial Vehicles Cusp of transformation

Supply Chain

Listen, sense, adapt

Warehousing

Degrees of automation

MiX TELEMATICS Outsmarting criminals

INDUSTRY NEWS

“We have designed and are in the process of consulting on a refreshed operating model for Transnet.” Siyabonga Gama CEO, Transnet ISSN 1684-7946 Mar/Apr 2013 Vol. 11 No.2016 2 / R40.00 ISSN 1684-7946 May/June Vol. 14incl. No.VAT 3 / R50.00 incl. VAT

KINGJAMESII 204

ONE MAN ONE TRUCK

ONE EPIC JOURNEY The TGX Euro 5 truck, Riaan and Nduna have finished their 13,234 kilometre journey through Africa. They’ve dealt with the military borders of Mozambique, dangerous cliff descents in Malawi and a stack of nightmarish border crossings. What’s more, the new truck overcame every single challenge Africa could throw at it. The team also dropped mosquito nets off along the way as part of a joint initiative with Rollback Malaria.

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Intraregion al suppl

Commerc ial Vehicles

Cusp of tra

nsformati

Intraregional supply chain solutions from producer to consumer

Supply Ch

Listen, sen ain se, adapt

y chain soluti

ons from produ

cer to consu

mer

Warehous

Degrees of ing automatio n

MIX TEL EMATIC S

ON THE COVER

Outsmarti ng criminals

Vehicle theft and hijackings, as well as the theft of cargo, are an ever-growing problem in South Africa. MiX Telematics has a solution.

INSIDE

INDUST RY NEWS

“We have des on a refres igned and are in the hed operat Siyabonga ing model process of consultin Gama CEO for Transn g , Transnet et.” P26 ISSN 1684-7

946 ISSN Mar/Ap 1684-7 r 2013 946 Vol. May/Ju 11

No.2016 ne 2 / R40.00 Vol. 14incl. No.VAT 3 / R50.00 incl.

REGULARS

VAT

SUPPLY CHAIN LOGISTICS

Editor’s Comment Europe takes the lead

Insider’s view

Fesarta Comment Trucking low-down

Digital dreams

Regional News Africa round-up

Staying in touch

Industry News Movers and shakers

LEGISLATION Grossly overweight

COVER STORY MiX Telematics Outsmarting criminals

COMMERCIAL VEHICLES Daily grind

Shifting gears

New paradigm

Vans plans

FREIGHT RAIL Training day

Outlining plans

PORTS Leading role

WAREHOUSING

FLEET MANAGEMENT

Rack and stack

Signal-minded 16 Driving performance

AIR CARGO

Wasteful expenditure

Creatures of habitat

12 23

28 TWA | May/June 2016

EDITOR'S COMMENT

Europe

takes the

lead

HE DEVELOPMENT and introduction of automated vehicle technology has sparked great interest within the trucking industry, particularly in Europe. To support dialogue and cooperation, the Netherlands initiated the first European Truck Platooning Challenge (ETPC) last month, in which a number of truck brands with automated vehicles drove line astern (in a practice otherwise known as platooning) on public roads through several European cities to Rotterdam, in what was the world’s first ever cross-border initiative of its kind. Each manufacturer's platoon departed from its respective home base or production location, meaning that Scania, which departed Södertalje in the south of Stockholm, had the longest journey at over 2 000 km. Its platoon drove through Sweden, Denmark and Germany before stopping in Zolder, Belgium and Zwolle, in the Netherlands. Volvo left Gothenburg before driving through the same countries, stopping in Vilvoorde. Daimler commenced its journey from Stuttgart, while MAN did so from Munich. Meanwhile, Iveco and DAF departed Belgium, the former from Brussels and the latter from its production location in Westerlo. Truck platooning requires that a number of trucks, equipped with state-ofthe-art driving support systems, closely follow one another. Interestingly, the trucks involved in the ETPC were driven not entirely by humans, but by a range of smart technologies, all connected through Wi-Fi. Truck platooning is a practice that is as innovative as it is full of promise for the transport sector. The ETPC showed that platooning can improve traffic safety and reduces costs in the real world. It further demonstrated that, through technology, trucks are able to drive much closer to each other, at a constant speed, thereby lowering fuel consumption, emissions and tailbacks, and enhancing traffic flows. All this while minimising the amount of space taken up on the road. But the impact of truck platooning was shown to go far beyond the transport sector, with automated driving and smart mobility offering realistic chances to optimise labour markets, logistics and general industry. South Africa should be envious of the relationship the road authorities of the five countries involved share. Unlike our industry's oft tenuous relationship with government, the Europeans are in close contact. This meant they were able to share views on a number of issues, including the assessment of exemption applications, while providing the data to facilitate and guide the massive cross-country effort. Their unity represents the initial steps to greater roads authority harmonisation in Europe.

TWA | May/June 2016

Publisher Elizabeth Shorten Editor Tristan Wiggill • tristanw@3smedia.co.za Head of design Beren Bauermeister Contributors Mike Fitzmaurice, Siyabonga Gama, Sandeep Kar, Peter Lamb, Shermandra Singh, Tony Tyler 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 2016. 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.

FESARTA COMMENT

Update gives truckers the low-down The International Road Transport Union’s (IRU) iOS and Android TRANSPark app has been upgraded to include new functions that make it even more useful.

HE IRU CONTINUES to work with key regional players, like FESARTA, to make sure important content is added to the service.

As a result, the app now provides more services to drivers and managers in Africa. This is vital as truck stops in Africa vary greatly in quality, are separated by vast distances and face differing security challenges and threats. In many areas, knowing where to find a secure parking area is as important in Africa as it is anywhere in the world.

Information should help drivers and transport operators better plan their routes

accrediting facilities that meet certain security and comfort standards. These premier locations are then added to the app. While still largely unpaved, road infrastructure in Africa is steadily improving. There are a handful of truck stops that are already providing services on par with anything you would find in Europe. We are really proud to work with governments and regional economic communities to help develop quality infrastructure that meets and even exceeds global trucking standards. At least 95% of the surface movement of goods is undertaken by road in most sub-Saharan countries in Africa, so there is a huge, everincreasing demand for professional trucking services.

New data

THE AUTHOR

Mike Fitzmaurice is the CEO of the Federation of East and Southern African Road Transport Associations.

This year, the IRU has added new key data to the service, such as border posts, police checkpoints, weighbridges, and the location of roadside wellness clinics. This information should help drivers and transport operators in the region better plan their routes and enable them to access key health and wellness services, test for malaria and other illnesses, and obtain condoms. FESARTA, SADC and the IRU are all working to develop operational standards for Africa’s truck stops,

TWA | May/June 2016

Missing links As assessed in 2001, the road infrastructure in Southern Africa is comparatively strong. Botswana, Lesotho and Namibia have particularly good road standards; similarly, two-thirds of the road network of South Africa and Zimbabwe remain in good condition. However, road maintenance has been neglected in Angola and Mozambique, where 90% of roads are deemed fair to poor in condition. Yet, certain key locations are still missing road links, disabling road

transport along vital corridors. These missing links lie predominantly in Angola and the Democratic Republic of the Congo – a substantial concern due to SADC member states’ large extractive industries that rely heavily on roads to facilitate trade. Although traffic volumes are low, these two member states need new roads constructed alongside the necessary repairs to infrastructural damage caused by conflict and neglect.

Top down The cost of road maintenance remains an issue for the region as a whole. While member states recognise the importance of a functional, integrated road network, funding is often diverted into other sectors. Likewise, significant funds have previously been put into the road network, but were inefficiently managed by governments in many member states. With traditional top-down approaches to funding for repairs and construction proving ineffective, SADC is currently exploring new systems of funding, including public-private partnerships and user-pays principles.

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COVER STORY

Outsmarting criminals

Vehicle theft and hijackings, as well as the theft of cargo, are an ever-growing problem in South Africa. MiX Telematics has a solution. 6

TWA | May/June 2016

RIME STATISTICS, published in September 2015, revealed an alarming increase of 29% in reported truck hijackings over the

past year. The Road Freight Association

published a report, in 2014, stating that truck hijackings cost companies and insurers more than R1 billion a year. The increase in incidents where signal jamming devices are used during vehicle and cargo theft is one of the prominent

challenges that the South African transport industry is facing today. Any standard GSM and GPS telematics devices used to track vehicles and cargo may be susceptible to illegal signal jamming by criminals.

What is signal jamming? A signal jammer prevents telematics devices from communicating their position to the vehicle tracking service provider. Criminals acquire illegal GSM and GPS jamming

COVER STORY Many different types of devices are susceptible to signal jamming, including smartphones, remote controls and tracking devices. The signals these jamming devices emit on the GSM or GPS frequencies prevent tracking devices in the vehicle from receiving and transmitting messages, thereby blocking the positioning signal. The tracking device may be disabled without the driver even realising.

Anti-jamming technology

devices on the black market, which are then used in the hijacking of vehicles and trucks. These devices can be small hand-held units or large industrial briefcase-size jamming devices. Most jamming devices are simply plugged into the vehicle’s cigarette lighter jack-socket and then block all tracking signals. This results in the control centre losing contact with the vehicle. The vehicle tracking system merely shows the last position of the vehicle before the signal was lost.

MiX Telematics, a leading global provider of fleet and mobile asset management solutions, has recently introduced a jamming detection solution to commercial fleets in South Africa. Combined with other services like Stolen Vehicle Recovery and the MiX Track and React Bureau service, MiX Telematics offers a comprehensive transport solution to fleet owners to protect their assets and the cargo being transported. The MiX Jamming Detect technology is combined with the state-of-the-art MiX Communicator fleet management on-board computer. It is an enhanced jamming mitigation solution to counteract the jamming of an on-board computer in a commercial vehicle. It enables proactive action to be taken if signal jamming is detected by the MiX Communicator, including: • attempting to transmit a warning notification of an impending GSM jamming event, prior to complete jamming taking effect • using one or more of its outputs to act as a deterrent • utilising satellite communications or radio frequency to communicate the jamming event and assist with the recovery • switching to another satellite network if one satellite positioning service is jammed. Grant Fraser, product and marketing director, MiX Telematics, says, “This solution has already resulted in numerous successfully recovered vehicles, trailers and cargos. In some cases, the criminals have also been arrested with the jamming devices in their possession. “The Stolen Vehicle Recovery service offered by MiX Telematics has one of the highest recovery rates in the industry. Telematics technology ensures full visibility of the entire fleet to allow for the early detection of potential theft and is one of the most important measures in combating crime. However, to realise the full benefits of a telematics fleet management system, drivers need to be proactively managed in real time,” says Fraser.

Track and react MiX Telematics offers additional services to reduce the risk of vehicle and cargo theft, and for the effective management of drivers. The Track and React Bureau service, managed by Compass Fleet Management (a division of MiX Telematics), is a control centre dedicated to monitoring vehicles and drivers 24/7. Specialised software is able to alert the highly trained agents of possible jamming when a vehicle stops sending updates. The agents have direct contact with drivers and fleet managers, ensuring that, should signal jamming be detected, immediate action can be taken to prevent any losses. In the event of a suspected hijacking, the recovery team is immediately dispatched to the exact location of the vehicle and the authorities are notified. Ken Bailey, executive divisional director, Compass Fleet Management, talks about a recent successful recovery, “On the 14 April at 02:01, a client’s truck stopped transmitting its position on the R554 in the Brakpan area. “The Track and React agent attempted to manually regain communication with the MiX Communicator installed in the truck and he attempted to contact the driver. However, his attempts were in vain; therefore, it was suspected that the vehicle was hijacked. “The client was notified and the recovery was set into motion by the MiX Telematics recovery services. Together with the SAPS and Metro Police, the air and ground recovery team searched the area where the last signal was transmitted from. The truck and trailer were seen parked in front of a yard in Benoni from the helicopter, and, a few minutes later, the truck and trailer with the cargo were safely recovered. “The police arrested eight suspects with a 12-antenna GPS/GSM jammer in their possession, as well as another stolen truck onto which the suspects were crossloading the stolen cargo. Criminal charges were laid against all the suspects. This was the 11th successful recovery for the same client.” MiX Telematics will continue to invest in technology to further refine anti-jamming countermeasures, to ensure that customers can effectively mitigate vehicle theft, increase safety levels and reduce risk.

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TWA | May/June 2016

REGIONAL NEWS

Read more on www.transportworldafrica.co.za

EAST AFRICA

Kenya GDP could hit 6% KENYAN PRESIDENT Uhuru Kenyatta, in his country’s State of the Nation Address, said the macro-economic foundations of Kenya were “strong” and “sustainable” and that real GDP grew by 5.8% in 2015. He said the Kenyan government expected real GDP to hit 6% over the next 12 months. He said the country had made bold investments in security, transport and infrastructure, energy, ICT, mining and agriculture. Kenyatta added that Kenya was constructing a world-class standard gauge railway (SGR), which the country would complete and operationalise between Mombasa and Nairobi by June 2017. He explained that the SGR would extend to Naivasha, and eventually to the port of Kisumu, before reaching the border town of Malaba. This would open up more than half of the country to increased domestic and regional trade, he said. He also stated plans were under way to modernise the existing metre-gauge railway line across the country. Kenyatta said his priorities were to: complete the road works commenced by former president Kibaki’s administration; open up new, major national trunk routes; and implement the ambitious Roads Annuity Programme. He said the Kenyan government had undertaken massive rehabilitation and expansion of the country’s main port. “In 2013, Mombasa was the eighth busiest port in Africa, with a handling capacity of 890 000 TEUs. In February this year, two additional shipping berths at Kilindini were completed, which doubled the total handling capacity to 1.6 million TEU’s annually,” he said.

SADC

Angolan trailer factory to open

The new facility is expected to produce 25 trailers and flatbeds a month, once production begins in September

ANTONIO J. SILVA Transportes e Logistica (AJS) has broken ground on its first trailer and flatbed manufacturing facility in Angola’s Viana industrial zone. “We are beginning to fulfill the promise of creating a diversified company with a focus on a number of different businesses,” explains Luis Silva, CEO, AJS. “We are leveraging 40 years of expertise in transportation to focus on an immediate need in the industry: the availability of dependable, well-made equipment. By building in Angola, we are considerably reducing the costs of importing these items, and are optimising the transport industry in the country.” While AJS will be utilising some of the trailers for its own business, it also expects to see considerable demand for its manufactured products, with the primary customers being Angola-based transport companies. “We are seeing tremendous interest from all quarters in the output of this new factory and are pleased to be launching this enterprise at this crucial juncture for Angola’s economy. We remain dedicated to creating new ideas and revenue streams,” he adds.

SOUTH AFRICA

Toll plazas to be upgraded

Mombasa has become the eighth busiest port on the continent

TWA | May/June 2016

TOLL PLAZA OPERATOR Bakwena has commenced with planned upgrades to toll plazas along the N1 and N4 highways to cope with increased traffic volumes. The plazas the company manages will each get additional lanes, with work set for completion in December 2017. Upgrades to the Zambesi plaza will be completed first, with work having already commenced. Zambesi’s upgrades are expected to take three months, with the new lanes scheduled to be fully operational by end October 2016. Upgrades to the Pumulani (two extra lanes), Stormvoël (one lane at the on-/off-ramp), Doornpoort (two extra lanes), Brits (one additional lane in each direction) and Marikana (one additional lane in each direction) plazas will follow. Construction work has begun on the Wallmannsthal on-ramp, which will see the addition of another Class 1 ETC lane to alleviate peak morning congestion. Bakwena says measures will be implemented to alleviate congestion.

REGIONAL NEWS SADC

Intensifying conflict threatens cargo movements LONDON RISK management consultancy PGI Intelligence says intensification in the conflict between Renamo and Frelimo has led to deterioration in the security environment in central Mozambique. It adds that efforts to launch peace negotiations have, so far, yielded little success, due to the groups’ unwillingness to agree on terms, and what they call “a cessation of the conflict” is unlikely to occur in the next six months. The consultancy is expecting a renewed government offensive, with a high risk of violence and the potential for disruption to infrastructure projects and cargo movements in the northern and central parts of the country. The escalating conflict poses a serious threat to freight movements and civilian transport in Sofala, where Renamo fighters have repeatedly opened fire on buses and private vehicles along the EN1 highway, Mozambique’s main north-south arterial road. As the conflict develops, there is potential for disruption to mining activities in Tete province, as well as to infrastructure projects along the Nacala Corridor, which links Tete with the Port of Nacala via Malawi. The Zimbabwean and Malawian borders are at particular risk of disruption

SADC

Rail operator awaits new wagons GPR LEASING AFRICA (GPR) has concluded a five-year lease of 100 grain hopper wagons to Corredor De Desenvolvimento Do Norte (CDN) in Mozambique. CDN operates a part of the Nacala Corridor, which consists of the Port of Nacala in Mozambique, the Northern Railway network of Mozambique, and the railway system of Malawi. The lease is supported by CDN’s transport agreement with Bakhresa Malawi Limited, which owns a grain terminal in Nacala and a milling and packing facility in Malawi. It is part of the Bakhresa Milling Group, which has operations across Eastern and Southern Africa. The wagons will be manufactured by and purchased from Welkom’s Galison Manufacturing, which has been manufacturing new and/or repairing existing rail freight wagons and other rolling stock for the past two decades. “We are essentially supplying an African solution that will benefit three African countries,” says GPR’s Jacques de Klerk. The deal is GPR’s first innovative wagon lease in Africa. The agreement with CDN was signed in mid-October 2015 and the first wagons

Arno van der Merwe, CEO and executive director: Manufacturing, Mercedes-Benz SA

SOUTH AFRICA

Used truck sales up 29% DAIMLER TRUCKS & Buses continued to perform strongly in 2015, despite the total commercial vehicle market being impacted by economic headwinds. This is according to Mercedes-Benz SA’s CEO and executive director: Manufacturing, Arno van der Merwe. Van der Merwe says the company remained a market leader in various segments in the commercial vehicles sector, with total sales topping 5 300 units. “Throughout the year, with various exchange rate impacts that had to be weathered, we strove to ensure market-related pricing for our customers and a steadfast focus on bringing total cost of ownership as low as possible,” he said. Van der Merwe explained that penetration of its value chain offerings had increased across the board: 2.6% for Charterway, 13.7% for Fleetboard and 4.3% for Mercedes-Benz Financial Services. Van der Merwe said that Truckstore remained a success story, with total sales growing 29% in 2015. “This flagship dealership and pre-owned truck retail business is poised to take the regional centre market by storm,” he enthused.

were delivered in March 2016. All 100 wagons are expected to be delivered before the end of Q4 2016. Insurance has been built into the lease rates. “The new wagons are lighter, more efficient and more productive,” says André Soares, operations director, CDN. Wagon payload will be increased by around five tonnes, while better fuel efficiency and lower operating costs are other benefits.

TWA | May/June 2016

COMMERCIAL VEHICLES

Daily grind Having driven the sixth-generation Iveco Daily recently, Tristan Wiggill has a new appreciation for the van’s workmanlike credentials.

HE DAILY HAS always been perceived as a competent people-mover and/or long-distance taxi when, in fact, it is also a versatile workhorse. Iveco needs the industry to view the 2015 Van of the Year in this lesser-known light and, as a result, is actively touting its towing and cargocarrying abilities. At the launch event, it was plain to see that a lot of thought has gone into making this van – it is the longest in the segment, with the biggest payload and highest towing capacity. It also stacks up favourably in terms of active and passive safety systems, the likes of which include dual front airbags and Electronic Stability Programme 9 (ESP 9).

It’s huge "In this industry, big is nice," beams Elvis Mutseura, product marketing manager, Iveco South Africa. "We've got the longest load bay (at 5.1 metres) in the van segment and the largest volume capacity – either 18 m3 or 20 m3, depending on panel van variant. It is possible to load up to six pallets in either; if you buy the vehicle for passenger transport operations, there’s seating for 22 or 25 passengers. We are offering half a metre more deck length and 18% more volume than our competition – perfect for guys in courier and/ or goods transport,” he says. The Daily continues to make use of a trucklike ladder-frame chassis, while its competitors opt for passenger-car-like monocoques. This is the secret behind the Daily’s maximum payload capacity of 4.2 tonnes. Gross vehicle mass is a hefty 7.2 tonnes and towing capacity 3.5 tonnes, which provides buyers with attractive earnings potential. Apart from ESP 9 and airbags, hill hold control and trailer sway control are also provided.

TWA | May/June 2016

The Daily is further equipped with daytime running lights, while some models’ fog lights rotate as the steering wheel is turned, for better curbside visibility.

Fresh and comfortable Seven-tonne panel vans and chassis cabs, as well as campervan variants, are equipped with air-suspended seats for better driver comfort. The battery has been moved from the engine bay to the cooler footwell on the passenger side in order to extend the life of the battery, which is also fitted with a quick-release isolator for easier servicing. There are a number of storage compartments in the dashboard, with additional storage space available under the front passenger seat. A radio and air-conditioning system are provided across the range as standard features, with the latter ducted through the glove compartment, thereby keeping one's perishables fresh. Iveco is the first manufacturer worldwide to fit an eightspeed automatic transmission to a commercial vehicle, which it calls Hi-matic. The ZF unit shifts gears in under 200 milliseconds and, through sophisticated software, offers 20 different shift patterns, chosen automatically depending on driving conditions and style, to reduce fuel consumption and lower wear and tear. Distribution businesses moving four tonnes would traditionally use small

trucks instead of panel vans, as they’ve been limited to 2.5 tonne or 2.8 tonne payloads. Until now. Unlike a truck, the Daily can be driven off the dealership floor and begin working straight away – there is no need to wait for trailer manufacturers to design and supply something suitable. Permanently closed, vans reduce the likelihood of losing loads and limit the damage to goods caused by the elements.

Premium price that pays for itself While the initial purchase price is 25% higher than an equivalent four-tonne truck, the Daily offers lower fuel costs through the use of a smaller, Euro 5 engine and better aerodynamics (the drag coefficient is 0.31). "We are expecting at least 12% better fuel consumption than equivalent trucks. Although you're paying 25% more for the vehicle, the revenue potential is significant if you use the 3.5 tonne towing capacity, which increases the total payload by 34%. If you are able to convert that 34% extra payload into money, even just 60% of the time, it would result in a 20% increase in revenue. A gross profit margin of 30% can become 41%,” he explains. Launch pricing won't last long due to the exchange rate and new vehicle price inflation. "With the Daily, we are offering the biggest panel van with the largest amount of useful space, while being the safest and strongest, which makes it the best Daily ever," Mutseura concludes.

“We've got the longest load bay and the largest volume capacity in the van segment.”

COMMERCIAL VEHICLES

Shifting gears

New transmission technology is set to shake up the construction industry, reports Tristan Wiggill.

OLVO TRUCKS has introduced

three innovative features: the F generation i-Shift gearbox, which is now available with crawler gears; tandem axle-lift technology; and a new heavyduty bumper for the long-haul FH model.

The company pointed out a number of small changes made to the gearbox during the launch event at Gerotek in Pretoria recently, which, it says, enhances efficiency and improves shift speeds. The transmission is now also suited to a greater number of applications as a result of clever gearbox software tweaks. Most importantly, though, crawler gears have been added to the company’s standard i-Shift gearbox. The two extra gears make it possible to start a truck from standstill with up to 325 tonnes in total weight loaded. This is unique for series-produced heavy trucks. Crawler gears make it possible to drive as slowly as 0.5 km/h and assist heavily loaded trucks to drive uphill. According to Volvo Trucks, the gearbox achieves the same fuel consumption figures as a regular i-Shift and is available on Volvo FH, FM and FMX models. With crawler gears added, total gearbox length increases by 120 mm, which brings it to the same length as a normal manual gearbox, while adding 48 kg. There are two crawler

gears: ultra-low and normal. While first gear in a standard i-Shift has a gear ratio of 14.9:1, the normal crawler gear is 19:1 and the ultralow crawler gear is rated at 32:1. What this means is that, when you start a heavy-loaded vehicle in the crawler gears, you are only putting 25% of total energy through the clutch. This means one can do repeat starts, with heavy loads, without burning the clutch. The tandem axle lift makes it possible to disengage and lift the rear axle when necessary, making a 6x4 a 4x2 or 6x2 combination. This saves up to 4% on fuel costs compared to a vehicle with both axles on the ground and benefits those in heavy transport where the return trip is often empty or partly loaded.

Lift-off Meanwhile, the inter-axle differential on the first axle has been replaced with a dog clutch, thereby allowing the driven axle to be disengaged and lifted, even when driving. This means better traction, especially when driving empty on soft surfaces like gravel. One will also benefit from reduced tyre wear,

while enjoying improved manoeuvrability as the turning radius is reduced. With the second drive axle lifted, rolling resistance is reduced and driver comfort improved as noise and vibration are quashed. The tandem lift system has to be engaged by the driver, although it will drop automatically should the payload reach a certain level. The manufacturer says it is looking at introducing an automatic function for this, but that it is not currently available. On the long-distance Volvo FH model, the company has introduced the new heavyduty front bumper, as per the Volvo FMX. It features a 3 mm thick steel plate that is covered in a wear-resistant coating. This adds about 130 mm to the FH’s front overhang but, because of its shape and angle, doesn't compromise the truck’s approach angle. Operators will be relieved to know the bumper protects the costly headlights from major impacts and, because it is a three-piece design, can be replaced in sections instead of in its entirety should it be damaged. TWA | May/June 2016

COMMERCIAL VEHICLES

The new paradigm The truck industry is at the cusp of a historic transformation, where the central focus for market participants is shifting decisively from products to services. By Sandeep Kar

HE PAST TWO years have seen the proliferation of several connectivity and soft technologies (electronics-enabled technologies) that have catalysed the trucking industryâ&#x20AC;&#x2122;s focus on leveraging electronics as the fuel for this change.

Evidence of this trend abound in the continuing proliferation of: telematics, regulations amending advanced electronics-based safety technologies, entry of mobile-based freight brokering, OEM focus towards autonomous driving, rising share of OES channel and contract service and maintenance contracts, and a rising demand for services such as prognostics. Amid these changes, the global commercial vehicle industry is entering a rather precarious phase where economic and political concerns in key markets such as China, South America and Russia are likely to offer strong headwinds to global sales of medium- to heavy-duty (MD-HD) truck sales.

TWA | May/June 2016

In 2015, the global market for MD-HD trucks absorbed 2.62 million units. Global MD-HD truck sales are projected to grow at 2.4% in 2016, driving global MD-HD truck sales towards 2.68 million units. A major cause for concern in the market this year is the 3.2% projected decline in Chinese MD-HD truck sales. Who would have thought a market that was growing at double-digit rates for several years would experience such a reversal of fortunes? This could have a lot of unintended consequences, not only in China, but across global markets, as many international OEMs and tier-one and -two companies significantly invested in China over the past decade.

GDP no longer sales indicator Until recently, the global GDP growth rate was a fairly strong indicator of global truck sales. We now seem to be noticing a lower degree of correlation between these two

THE AUTHOR

Sandeep Kar is the global vicepresident: Mobility at Frost & Sullivan.

metrics. 2016 will be a year when we will see more decoupling of global GDP and global truck sales than what we saw in 2015. Despite a downturn in truck sales in China (which accounts for almost 30% of global truck demand) and North America, strength in markets such as India, the Next Eleven, Europe, and other markets will likely provide upside forces. After benefiting from factors such as pent-up replacement demand and a relatively strong economy, North Americaâ&#x20AC;&#x2122;s truck market will face the impact of cyclicality, causing overall MD-HD truck sales to decrease by 2.7%, despite the medium-duty truck market growing by approximately 5%. Global economic uncertainty, products and services for the Next Eleven and African markets, in an era of BRIC market concerns, fuel

COMMERCIAL VEHICLES price volatility, and the transition to servicebased business are expected to emerge as CEOs’ top-of-mind issues in the industry. 2016 is also expected to be the year where industry consolidation and M&A recalibrations will continue, despite global economic instabilities. Our focus remains on two or three OEMs and over seven suppliers in this space.

Battle between the heavyweights In 2015, Daimler retained its position as world leader among all OEMs in the MD-HD truck market. Despite its acquisition of a significant stake in DongFeng and rising share in markets such as India, Volvo’s exposure to markets such as China and Latin America provided hurdles to its goal of emerging as the world’s largest manufacturer of MD-HD trucks. The battle between these two giants will intensify further against a backdrop of market weakness in China, the Americas and Russia. Both OEMs have made remarkable inroads into the rapidly growing global market for value trucks. This will serve these OEMs well in 2016 and beyond. Similar strategies executed by Chinese, Indian, and Korean OEMs will enable them to protect and possibly grow revenues, owing to higher margins facilitated by value trucks relative to low-cost trucks. We expect the share of value trucks to increase from 17% of total truck sales in 2015 to 19% in 2016, while the share of low-cost trucks will shrink, by 2%, to 35% of total sales. This is also the year where global engine platform strategies of major OEMs and tierone suppliers such as Cummins will be on full display. Our recently completed study on global heavy-duty truck engine platforms of major global OEMs and tier-one suppliers shows that by 2022, half of all heavytruck engine production will be based on global platforms. Our team has also developed a study on the Iranian commercial vehicle market. Our research leads us to believe that the Iranian commercial vehicle market will start to experience higher growth rates in 2016, growing at a healthy CAGR of 10.4% until 2022. However, substantial geopolitical concerns remain in the Middle East, which

could further exacerbate global economic uncertainty and fuel price volatility. Despite continuing fuel price volatility, we expect diesel engines to feature in 93% of all MD-HD trucks sold in 2016.

Shifting priorities While low fuel prices will only delay the inevitable (i.e. rising penetration of natural gas and hybrid trucks), 5% of all MD-HD trucks sold in 2016 will feature natural gas engines. However, taking a long-term outlook to 2022 and beyond, this current phase of fuel price volatility seems less of a concern – as fuel’s contribution to TCO will slowly but surely decline as driver-related cost components take a higher share of TCO relative to fuel, definitely in markets such as North America and Europe, and possibly in emerging markets. This is already leading OEMs to focus more on in-cabin technologies that will eventually make driving easier, more comfortable, and more connected. The rising penetration of semi/fully automatic transmissions in global MD-HD trucks is an example of this. Our recent study on global MD-HD truck transmissions forecasts a 44% penetration of AMTs and ATs in MD-HD trucks sold in 2025. 2016 will also be the year when OEMs increase their focus on health, wellness and well-being technologies for drivers, in an

attempt to differentiate their brands from their competitors’. This will attract several companies from the medical technologies industry towards the trucking industry and create interesting partnerships. Telematics services are expected to be used by over 9.2 million MD-HD trucks this year. These trucks represent the first wave and faces of the change in business model transformation I alluded to at the beginning of this article. The business of trucking is changing from one where the relationship with the customer would end when the truck was sold, to one where it begins at that very moment. Our research and insights into business model modifications resulting from this affirms that 2016 will be the year where OEMs focus on a wide array of technologies and services that will shift both manufacturer and customer focus from product (i.e. trucks) to services. From Stuttgart to Gothenburg, Bellevue to Lisle, Mumbai to Shanghai, Sao Paolo to Tokyo, and Seoul to Moscow, corner offices and boardrooms will buzz with possible opportunities arising from this transformation, which brings into focus something Sun Tzu, the legendary Chinese military strategist, said over 2 500 years ago: “Opportunities multiply when they are seized.” TWA | May/June 2016

INDUSTRY ISSUES

IMPERIAL LOGISTICS

Know your sector codes Draft sector codes for the road freight transport and logistics industry were issued for comment on 26 February, with a 60-day window provided for public commentary.

ROPOSED changes include

amendments to allocated weightings in three of the scorecard sub-elements – equity ownership, management control and skills development – and reflect the proposals tabled in ongoing industry discussions with the Department of Transport.

For Imperial Logistics – as with all transport industry players – this effectively means that the 2016 scorecard could be issued on these amended codes should they be approved and Imperial would need to align its current measurement criteria accordingly. “Imperial is exceptionally well placed to rise to the challenges of the new codes

when the minister gazettes the transport sector’s new BBBEE Charter,” states transformation director Sibongile Zikalala. “We are very proud of our transformation track record and aim to maintain a leading position as the tougher new scorecard raises the BBBEE bar – particularly for large organisations.

Re-evaluation “Our approach to transformation is much more than just meeting targets, and we are committed to the constant re-evaluation of

TWA | May/June 2016

our achievements,” she expands. “The new codes represent just such an opportunity and Imperial views this as an incentive to keep doing the things that have earned it the position of an industry leader in some BBBEE indicators – and to push harder in areas in which it may be falling short.” Zikalala explains that the group’s BBBEE roadmap gives a clear indication that Imperial Logistics will achieve a competitive recognition level under the new codes and it is anticipated that it will achieve a Level 5 status in 2016. It is likewise anticipated that Level 4 status will be achieved in 2017, with the group actively targeting Level 3 status by 2020. In order to avoid being discounted a level, the first challenge under the new codes will be to ensure that the sub-minimums for net value, skills development and preferential procurement are met. In terms of net value, Imperial Logistics is proud to be leading the industry again with recognition of full points, which means that more than 25% equity ownership is fully vested in the hands of black shareholders. Not many logistics service providers – or even many other South African companies – can claim this level and scale of ownership transformation.

Sibongile Zikalala, transformation director, Imperial Logistics

group is currently boosting clients’ preferential procurement through numerous enterprise development programmes. “We want to help our clients benefit from an enterprise development perspective and we are applying our logistics and supply chain experience to identifying, mentoring and upskilling enterprise development partners to work directly with clients. It is proving to be a win-win situation for our clients and their enterprise development beneficiaries and Imperial is happy to make a revenue sacrifice in order to nurture fledgling enterprises and assist clients with their procurement scorecards.”

Collaboration Imperial is thus working to develop a pipeline of QSE and EME suppliers, actively seeking out businesses to collaborate with, and offering guidance and training to them, she adds. “Our approach to BBBEE has always been collaborative, and we constantly strive to work with all of our stakeholders – including clients, partners, suppliers, the public sector and government – for mutual benefit. This is an opportunity to evaluate our achievements and embark on the next phase of our transformation journey. We will continue to accelerate transformation in an effort to not only meet targets and achieve recognition in terms of the revised codes, but to entrench transformation within our organisational culture and advance the transformation goals of the industry and the country,” Zikalala concludes.

Skills development Zikalala stresses that the complexity and scale of Imperial’s business means that the group will have to work harder to achieve minimums for skills development and preferential procurement, which will not be achieved overnight, but she says that the

www.imperiallogistics.co.za

Vans plans

COMMERCIAL VEHICLES

Transport World Africa spent time with Nicolette Lambrechts, managing director: Mercedes-Benz Vans, Mercedes-Benz South Africa, during the company’s recent annual sales results presentation in the Eastern Cape. Despite the overall new vehicle sales market being under pressure, we noticed that Mercedes-Benz Vans sales were actually up in 2015… NL On the large vans side, there was a very small increase in the market last year. It was really a tough start to the year for everybody. The sentiment last year, which we see continuing this year, from fleet operators and customers, is that they would rather keep their vehicles and run them a bit longer than go into their normal replacement cycles, due to some uncertainties they feel in the economy. In the mid-size van segment, we saw a huge decline in the market. We had a runout of the previous Vito and Viano before we introduced the V-Class and new Vito. We contributed to the decline in that market because there were a couple of months where we did not have products.

How have sales fared in the SADC region? We look after Namibia and Botswana, and we’ve seen good growth in the latter with regard to Mercedes-Benz Sprinters and the taxi/people-mover segment. Those are doing exceptionally well; they have a very good growth rate. We’re currently targeting the used vans market. We don’t really yet have a feel for those markets or that customer base. We know there is an opportunity there and are working very hard with the general dealers to establish what the right products for those markets are and how we can provide better services to our customers in those different markets.

What industries are driving your van sales? On the Sprinter side, about 60% of our volume is in the long-distance taxi market. We have a very stable customer base there and a very good relationship with the taxi associations. We are predominantly in the peopletransport business, so a lot is also driven by tourism in the Western Cape. In terms of the panel van business, we are really focusing on the corporate fleet customer base – where we see potential and growth – and we are trying to get into the courier distribution segment with Sprinter.

The company has indicated it wants to offer 41 Mercedes-Benz models locally by 2020. Would this include new van derivatives? Before the end of the decade, we will, if all goes according to plan, launch the new Mercedes-Benz bakkie in South Africa, which will form part of the vans portfolio. It’s very exciting! A lot of work still needs to be done, but we’re looking forward to that.

customers can, at any time, buy up into a full maintenance plan with Charterway. So, we offer all the different packages on Charterway. Fleetboard is available on the Sprinter; we have two customers running tests now with Fleetboard. Functionality and data collection is not yet at the same level as on trucks, so there is still development that needs to happen on that. A lot of the Sprinter customers use their own fleet maintenance programmes and systems.

What is the message/feedback your customers in the courier industry are giving you? We haven’t heard that they want more technology in the vehicles. A big driver, of course, is reliability, safety and fuel consumption. Fuel consumption is always a big topic in the courier/distribution segments. Also, from the maintenance of the vehicles to parts pricing – all of the stuff that contributes to the total life-cycle cost – is quite a big influence.

How do after-sales products like Charterway and Fleetboard fit into the van offerings? We have Charterway available on all the vans. The V-Class is 100% aligned to the passenger car portfolio, with Premium Drive and the full maintenance plan offering. On Vito and Sprinter models, we now have, as standard across the model ranges, an integrated service plan – which is a first in the industry. Our

TWA | May/June 2016

FLEET MANAGEMENT

CTRACK FLEET MANAGEMENT SOLUTIONS

Signal-minded Signal jamming is an increasingly popular means for criminals to steal vehicles and loads, with truck hijackings costing the country an estimated R3 billion in 2015.

N ALMOST EVERY reported hijacking incident, the truck’s tracking signal was not available because the suspects involved had used signal jammers.

The scourge of signal jamming in South Africa has been brought into the public domain through Carte Blanche exposés and the much-publicised blocking of cellular communications during the 2015 State of the Nation Address in Pretoria. The latter event, in particular, has helped create greater awareness among the general public and has spurred tracking companies such as Ctrack to innovate and fight back.

Proliferation Even so, the use of signal jammers continues to proliferate in South Africa, as they are easy to obtain and have become more affordable. As a result, hijackers today make use of a wide range of jamming systems and devices, some of them large and cumbersome and others small and portable. This is despite the fact that ownership and/or use Signal jammers are becoming more affordable and easier to come by

Fleet owners and operators need a total transport solution that includes signal jamming detection 16

TWA | May/June 2016

of signal jamming devices is, according to ICASA, illegal in South Africa. Whether big or small, these systems typically prevent telematics devices from broadcasting their position to tracking service providers. Says Hein Jordt, managing director, Ctrack Fleet Management Solutions: “Hijackers use a range of jamming systems to block tracking devices from communicating via the cellular networks or via satellite. Once jammed, they typically hijack the vehicle or work with the driver to move it to a location where they offload its valuable cargo.” Those involved in transport and logistics know it is critical to protect both trucks and their loads from theft. According to the South African Insurance Crime Bureau, truck hijackings are all about the commodities being transported, with FMCG products like tobacco currently in high demand. In any event, the fact of the matter is that the majority of trucks are hijacked for their loads. What is required by fleet owners and operators is a total transport solution, one that combines fleet management with the ability to detect signal jamming. The good news is that there is a solution available today that can equip both trucks and trailers with effective jamming protection.

Spectrum In order to mitigate signal jammers, one has to make use

Hein Jordt, MD, Ctrack Fleet Management Solutions

of alternative frequencies to those being jammed. This is where direct-sequence spread spectrum (DSSS) technology, used by Ctrack, comes in. DSSS does not rely on any other format – such as GSM – to communicate. Instead, it transmits messages using a bandwidth in excess of that needed by the message signal. This spreading of the transmitted signal over a larger bandwidth makes the resulting wideband signal appear as a noise signal, which allows greater resistance to intentional and unintentional interference. DSSS is also designed to transmit signals from difficult radio frequency areas and can penetrate through concrete, making it ideal for city, retail and financial institution environments. In March, Ctrack announced that its jamming detection solution will form part of a combined fleet management package. “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,” Jordt said. With the fleet management component, fleet owners are able to monitor driver behaviour such as harsh acceleration, braking and cornering, as well as over speeding. Significant fuel and maintenance costs will also be saved through monitoring factors such as engine performance and fuel consumption.

FLEET MANAGEMENT

Driving performance Transport World Africa learns about a real world implementation of the Road Transport Management System (RTMS).

REMIER'S Durban bakery received RTMS accreditation last year. Being an FMCG company founded in 1820, it operates 16 bakeries, three wheat mills, two maize mills, and a sugar confectionery plant. The company has 24 distribution depots across South Africa, Mozambique, Swaziland and Lesotho. It operates in excess of 1 400 vehicles, of which the bakeries side comprises in excess of 1 200 vehicles. The company decided to pilot the Durban bakery to get RTMS accreditation at the beginning of 2015. This operation has a fleet of 55 vehicles, with bread delivered inland as far as Newcastle, up the north coast to Jozini, and down the south coast as far as Port Shepstone. The company received RTMS accreditation in July 2015, becoming the first bakery in South Africa to achieve such. Pretorius explains the road to accreditation, “To us, RTMS is the 101 of transport. It's about us showing the public that we follow the best practice of transport, that we care. The challenges we faced at Premier, in receiving accreditation, started with downloading the SANS document, which is daunting to read through. We had to understand the document completely and then look at the current processes employed by the company and align them accordingly. At the time, we believed our processes were on par and that we were measuring them properly. We thought we were doing everything correctly, until we started to dig into it and realised we had room for improvement. “We had to ensure our staff bought into RTMS. We

had to train some of the drivers and dis- procedures that one needs to follow. It also tribution staff on what RTMS is and how it ensures that we get our products to our works. Getting accreditation is not so dif- customers on time. We are actively promotficult if you have most of the processes ing skills development for both our drivers in place already, but living RTMS requires and management and reducing the amount a relentless focus on daily execution; you of under-loading. cannot let anything slip – you have to meas“The reduction in accidents comes mainly ure, monitor and manage all the aspects of from improved communication with drivthe elements. ers, including newsletters and ‘Driver of the “We didn't become RTMS accredited Month’ and ‘Driver of the Year’ awards. Every because we had pressure from customers or month, we get the drivers together and do a from government. We didn't do it to gain any presentation and discuss the figures. We've new business, we looked at RTMS and all its introduced a ‘Safety Tip of the Month’, criteria and realised it which ensures that drivNew laws regarding covers all aspects of ers remain focused on transport. We decidtheir driving behaviour. consignees and ed to go with RTMS We also use a sticker consignors should be because it aligned on the back of the vehienough motivation for with the company's cles asking the public values and strateto report bad driving. anyone to consider gies. It also gave us We record and create implementing RTMS the luxury of looking at reports from these calls, performance-based standards. as there is a link between the volume of calls “It is the right thing to do for any respon- and accident rates. Accidents always occur sible transport company. It gives us better around the time when the number of calls control over driver hours, speeding, vehi- received increases. cle maintenance, driver wellness, document “RTMS will improve your business if you administration, training, and improves under- manage it well. Based on that, we’ve and over-loading efficiencies, as well as decided to use it as a framework across risk management. all our bakeries and depots. This will align “We have seen a reduction in accidents, our distribution personnel and allow us which is also important in terms of the com- to move people within the company to pany's image. We have also seen a reduc- meet operational needs. We aim to have tion in traffic violations and a small improve- the same standard across all bakeries ment in fuel consumption through improved and depots. Once this is in place, we’ll driver behaviour. RTMS ensures a healthy more easily be able to audit the different vehicle lifespan, with minimal vehicle break- sites, based on how well they comply with downs, due to the stringent maintenance RTMS,” Pretorius concludes. TWA | May/June 2016

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FLEET MANAGEMENT

Wasteful expenditure Transport World Africa ponders the feasibility of biogas use in South Africa’s road transport industry.

liquid biomethane, you are looking at R200 million for a similar-sized plant. Just about all truck manufacturers approve biogas technology, as it is softer on diesel engines and can be run with minimal changes. Duel-fuel engines start on diesel and, once operational temperature is reached, are switched to biogas, either manually or electronically.

Biogas advantages • Affordability – R30 000 can secure a baseline CNG truck conversion kit. However, a top-of-the-range, fully compressed LPG kit will cost around R120 000. • Duel-fuel vehicles have been tested extensively. They can be switched back and forth between biogas and diesel seamlessly and on the fly. • Producers and manufacturers already have the waste needed to produce biogas. • Companies can offset their carbon emissions through biogas use. • The cost of biogas is lower than the equivalent cost of diesel. • Biogas is gentler on diesel engines for increased engine life.

Biogas disadvantages

HERE ARE DIFFERENT types of biogas and not all are created equal. Biogas comes from several sources. In South Africa's case, it is normally piped in from Mozambique, but we can also produce the gas in Gauteng. Gas we get from Mozambique is then semi- or lightly compressed to around 180 kPa and is clean enough to power vehicles. Sulfur and moisture are then removed in South Africa and it is decompressed to household level (roughly 4 kPa). Compressed biogas is a natural product and is popular in India, Sweden and Serbia. This gas is user-friendly and comes from natural sources like wastewater and the byproducts of food production. In fact, almost anything organic or that breaks down during anaerobic digestion can become biogas. The problem with biogas is that its molecules are tiny; a methane molecule (CH4), is one-third the size of an oxygen molecule, complicating its production. While considered a clean fuel, compressed natural gas (CNG) emissions

include carbon dioxide, a large amount of oxygen, and a number of sulfates. The big brother to compressed gas is liquefied biomethane. Liquid petroleum gas (LPG) is biogas that has been compressed extensively. It is very beneficial in long-haul operations, although the technology employed and its production method are both highly sophisticated and if something goes wrong, the consequences can be significant. While heavy-duty, cylinder-type oxygen tanks are needed for LPG, CNG can be stored in cheap, lightweight steel tanks. A truck can be equipped with several cylinders, depending on the distance it will be driving. These cylinders are made from either reinforced fibreglass or mild steel, with all necessary componentry imported. A standard tank of CNG will provide a range of around 200 km but, by adding a second tank, this can be extended to around 650 km. The cost of building a factory to produce compressed biogas will cost around R60 million. The moment you want to produce

• Serious, long-term agreements with a gas supplier are required. • Procurement laws for landfills are stringent. • Uncertainty exists regarding government legislation.* • A fuel levy is still to be added by Nersa. • Companies need to fully commit to it. • Biogas might not be the answer for long-haul operations. • There are cross-border legislation issues. The future for biogas looks promising, as the government has invested significantly in CNG and is changing Eskom’s diesel turbines to run on CNG. Seven landfills have also been converted to material recycling facilities, which means a significant amount of biogas is going to be made available soon. Twelve licences have also been issued for large biogas plants.

*South Africa currently uses an American standard as a guideline in terms of safety regulations for biogas use, as there is no official South African standard. Biogas vehicles are not currently deemed to be dangerous goods vehicles. TWA | May/June 2016

SUPPLY CHAIN LOGISTICS

The insider’s view Once viewed as just the ‘blue pallet company’, CHEP South Africa has grown into a supply chain solutions firm over the last 10 years.

S MATTHEW QUINN, new business development director for CHEP sub-Saharan Africa, puts it, “Yesterday, building a better mousetrap held the key to business success. Today, having a better product or technology is simply not enough. Our customers stopped asking us for a better mousetrap. They were demanding more value and we needed to grow our business.”

An insider’s eye for value Today’s supply chains are vastly more complex than their predecessors – with the warehouse being one node, or touch point. These chains are longer (thanks to globalisation), faster (with just-in-time replenishment), more fragmented (through consumer choice), and they move along busier roads (due to increased competition and volume) to more retail channels than ever before (due to the growth of modern as well as online retail). This level of complexity has put a tremendous strain on the efficiencies and agility of

TWA | May/June 2016

the best supply chains. As standardisation is the mother of efficiency in the supply chain, the standardising of platforms is one decision that can generate efficiencies throughout the entire route. What happens to that platform as it moves along the supply chain has been CHEP’s concern for more than 60 years. This deep understanding comes, in part, from the company’s ‘insider’s eye’. Going back to the humble blue pallet, it rides along the world’s most sophisticated and efficient supply chains, gathering information as it moves. This insider’s eye has generated insights into millions of experiences, efficiencies and mistakes – insights enabled by moving more goods to more places for more customers around the world than any other company. CHEP shares these insights with its customers in a solution called Value Chain Analysis. Taking a holistic view of the entire supply chain, Lean Six Sigma-trained experts map out the entire process to highlight pain points.

Matthew Quinn, new business development director: sub-Saharan Africa, CHEP

Value Chain Analysis provides customers with a complete view of their operations that transcends departments, silos, facilities and regions. This view of their flow of goods allows them to really see what is going on – so they can generate efficiencies, safeguard product quality and improve overall operating margins. As Quinn says, “Customers will often recover money they didn’t know was lost.” As CHEP’s customers share and reuse their platforms, its people share and reuse the knowledge they glean from supply chains around the world. That’s the insider’s eye.

The defect detector In the warehouse, pallets operate as one player across the whole operation. They do have a unique perspective – as they touch every point and nuance as goods flow through the storage and distribution facilities. From the start of the journey to arrival, through loading and offloading, racking, storage and retrieval, to ordering, pick-up and delivery; at each stage of that complex system, the pallet is present. As they touch each aspect of the process, pallets have tremendous datacapturing potential. And it’s through the use of this information that CHEP helps its customers increase capacity while decreasing downtime. These efficiencies are often measured in direct warehouse benefits. Faster inventory turns mean less working capital; faster pick rates result in more efficient use of labour; and faster truck turnaround decreases deadtime. The pallet is the unsung hero of this flow, which results in more efficient yard and warehouse management processes. All these benefits combine to generate a greater return on the capital invested in your warehouse

SUPPLY CHAIN LOGISTICS

operation. This makes for one happy chief financial officer. For modern, sophisticated supply chains, these problems will get more complex as incoming sources increase and retailer formats become more varied. This increase in variables puts a significant premium on the holistic view to protect efficient flow. The future will demand more automation within warehouses. From its experiences in the warehouses of the best multinational companies, CHEP has codified the learning into a solution called Automated Systems Optimisation.

Reversing bad habits Often, companies find that they have allowed inefficiencies to creep into their supply chain processes over the years. This can include anything from how they store and maintain their distribution platforms to how they build their platform and trailer loads. CHEP has developed software tools and testing procedures that help its customers weed out these problem areas and adopt more efficient practices. With its deep reservoir of learnings, it can apply the results of testing and analysis in ways that deliver meaningful improvements for its customers. CHEP is a proud sponsor of the SAPICS 38th Annual Conference & Exhibition at Sun City, 12 - 14 June 2016. Please visit our exhibition stand in Atrium 2, SunSky Village to learn more about our Supply Chain Solutions portfolio. If you’re looking to improve your supply chain, let’s talk!

Through a solution called Unit Load Optimisation, for example, CHEP employs a three-step process that starts with software analysis, proceeds to lab testing and culminates with real-world field testing. This results in less product damage, lower platform, handling and transportation costs, and more efficient use of resources. The same principles apply to Truck Load Optimisation – one of CHEP’s transportation solutions, along with Delivery & Collection, and Collaborative Transportation. Together, they help customers solve their transportation puzzles by making more efficient use of trailers and filling empty lanes. Fuel use goes down, CO2 emissions go down, and cost savings go up.

Better for the customer, better for the world By helping its customers use their resources more efficiently, CHEP ensures less time spent handling product, less product lost to damage, and less of the world’s precious resources wasted. It is in this area that the company sees its future. For most companies, a green decision often means a compromise, be it product quality, speed or profit. But there is no compromise when CHEP’s business helps to create a more efficient world; in fact, quite the opposite is true. The more efficient the company is at helping its customers move products, the more effective we will all be at preserving the world’s precious resources. CHEP strives to create a more sustainable planet. And, as a direct consequence, it is improving the business performance of itself and its customers.

ABOVE

1. Supplier Efficiencies: Optimised processes of input providers to better align with your needs. 2. Transportation Optimisation: Increased cube, fewer trucks, decreased procurement costs, optimisation. 3. Inventory Efficiency: Decreased inventory and reduced handling, lessening potential for injury. 4. Lean Optimisation: Elimination of errors via automatic scanners, process optimisation using lean methodologies, overall packaging. 5. Error Proofing: Automation, process optimisation using lean methodologies, handling reductions. 6. Transport Efficiency: Increased cube, decreased time to load, optimisation of outbound transport and improved scheduling. 7. Forecasting Optimisation: Forecasting efficiencies and automation. 8. Automation Solution: Automation, improved scheduling, increased accuracy. 9. Order Optimisation: Automation, forecasting, inventory optimisation.

www.chep.com

TWA | May/June 2016

SUPPLY CHAIN LOGISTICS

Digital dreams Unlike in the tourism or marketing environments, where digital integration has been absorbed organically, supply chain and manufacturing professionals have been sluggish to phase out what is a deeply entrenched traditional mentality.

ROMINENT SUPPLY chain analyst and founder of Supply Chain Insight Lora Cecere believes that supply chain professionals have defined their processes as linear and inflexible – trusting enterprise resource planning (ERP) and advance planning and scheduling (APS) to optimise production and distribution processes. “To become digital, we need to define processes from the customer’s customer to the supplier’s supplier and use new technologies to listen, sense and adapt,” explains Cecere. “This is not the platform of traditional technologies and the belief structures of traditional supply chain leaders. This is an opportunity for Africa. Consider the adoption of mobile phones, alternative payment structures and collaborative sharing in economies such as in Nigeria. It’s time that we question the status quo and traditional principles.” While encouraging organisations to pursue a digital supply chain, Cecere accepts that this progression isn’t without its flaws, which businesses must take cognisance of.

Big data, big concerns While the emerging IoT (Internet of Things) delivers huge dividends, it also presents potential data security risks for manufacturers, as numerous corporate assets and end products

TWA | May/June 2016

will be linked via networks “Manufacturers need levels – the enterto provide a steady flow prise level, the shopto be more vigilant of real-time data. floor level and at the of intellectual “As data volumes user-device level. and internet connectivCompanies need property and trade a comprehensive ity grow in the supply secret violations.” portfolio of security chain and on the manuMaha Muzumdar, vice-president: strategies, such as facturing floor, there is Industry Transformation, identity manageincreased risk of data Oracle Cloud Business Group security being comproment, access manmised,” cautions Maha Muzumdar, vice- agement and mobile security, to president: Industry Transformation, Oracle ensure data privacy, protect against Cloud Business Group. internal and external threats, and enable “Manufacturers today need to be more regulatory compliance.” vigilant of intellectual property and trade While IoT devices – such as digital sensors secret violations and potential corporate – forgo the need for manual input of data, espionage,” adds Muzumdar. “Today, thus achieving greater accuracy, businessthere are new security issues for comes must also be able to use this new flood panies to deal with, as automation and of data effectively. This, too, can present data volumes increase. Data security a problem, explains Peter Vanderminden, needs to be addressed at multiple senior industry analyst, Flatiron Strategies. “This results in a flood of big data, which organisations may not have the capability to analyse and use effectively. That is where the breakdown often happens. As we implement IoT capabilities into our products, making them digital, it’s all about how we bring both these worlds together – converging IoT operations with traditional supply chain management IT and bringing the physical and digital supply chain together,” he says.

SUPPLY CHAIN LOGISTICS

Staying in touch Logistics companies need to find better ways to satisfy customers who want real-time information. Shermandra Singh discusses a company that did just that.

ENYA’S FARGO Couriers needed to enhance its processes and find a suitable automated courier management system that would streamline processes, increase productivity and help it become the country’s leading courier/ transport company. The company is the second largest courier service in Kenya, with over 90 branches countrywide. More than 450 couriers serve these branches, with hundreds of thousands of waybills processed every month. But, in order for it to expand, it needed a logistics system that could be tailored to meet its specific needs and overcome many external challenges. The development team had to think outside the box, primarily due to the diversity of the landscape the company serviced. It was felt that traditional solutions would not THE AUTHOR work in the long Shermandra Singh is run; standardisathe business development tion was needed, director of Dovetail across the board. Business Solutions.

This would simplify the processes and leave less room for error. Some of the company’s hubs were positioned in remote areas of the country, with the portfolio including courier and messenger tasks, as well as break-bulk and freight services. Therefore, a cohesive system that would simplify making changes and implementing processes was needed. The success of the project relied heavily on lateral thinking; where one would ordinarily develop a desktop/laptop solution or system, this ideal had to be reimagined. The consumerisation of IT has helped to enable a paperless proof-of-delivery (POD) system, while removing dependency on the traditional personal computer. The sheer number of handheld devices in use today, and their subsequent connectivity, proves they have become an attractive tool, with a single device able to serve many purposes. Today, it is easy to find low-cost, robust Android devices suited to this application. Four key factors were critical to the success of the project, the primary one being that technology has advanced enough to make

a paperless POD system feasible. Another significant factor is the prevalence of mobile devices, which stems from the need for constant connectivity. In some respects, this need has made the mainstream transition to portable devices much easier. All core courier processes, from collection and line-haul to delivery and POD management, can be processed through a smartphone or tablet. Core functionality is also available, meaning it is not merely a stripped-down mobile application – a first in Africa. The ability to automate the rating and billing system leads to a seamless interface with the ERP. The result is a streamlined process, where the tedium of manually entering data is removed. The system should help achieve the aim of processing greater volumes and throughput of cargo in the network, without necessarily needing to increase the company’s staff complement. Reducing the margin for error is also helping Fargo to become the leading, most technologically advanced courier in East Africa.

The success of the project relied heavily on lateral thinking

TWA | May/June 2016

LEGISLATION

Grossly overweight The South African Maritime Safety Authority (Samsa) has effected the International Maritime Organisation’s (IMO) guidelines regarding the verified gross mass of a cargo-carrying container. Peter Lamb explains the consequences.

HESE GUIDELINES are an amendment to Solas (the International Convention for the Safety of Life at Sea), which requires a packed container’s gross mass to be verified prior to storage aboard a ship. The guidelines are applicable to containers exported by sea. The main principles of the guidelines are that the shipper is responsible for providing the verified gross mass (VGM) of the packed container, and that the carrier must receive the VGM of the packed container prior to loading on the vessel. The guidelines define the shipper as: “a legal entity or person named on the Bill of Lading or Sea Waybill, or equivalent multimodal transport document”. This is a broad definition and could well include freight forwarders, container operators, consolidators and the like, and not just the party with an interest (risk or ownership) in the containerised goods. The obligation on the shipper to provide the VGM is not new. In terms of the Merchant Shipping (carriage of cargos) Regulations, a shipper has to provide the carrier with cargo information, which must include the gross mass of the cargo or cargo unit. The shipper must ensure that the gross mass in the shipping document is in accordance with the gross mass of the cargo. The guidelines define a shipping document to mean a document used by the shipper to communicate the VGM of the

TWA | May/June 2016

packed container. This document can be part of the shipping instructions to the carrier or a separate communication (e.g. a declaration including a weight certificate produced by a weigh station). What is new is that the guidelines prescribe methods by which the shipper can verify the gross mass of a packed container.

Verification The first method to obtain the VGM is for the shipper to weigh, or to arrange that a third party weigh, the packed container upon its closing and sealing. This will require a weighbridge. The second method is for the shipper or third party to weigh all packages and cargo items, including the mass of pallets, dunnage, packing and securing material to be packed in the container, then add the entire mass of the container to the sum, using a certified method. If the shipper is dealing with “individual, original sealed packages that have an accurate mass of the packages and cargo items clearly and permanently marked on their surfaces”, then the shipper will not need to re-weigh these packages when they are packed into the container. However, it is not clear whether

this exception is only applicable to cargos and packages that have already been weighed using a certified method. If the shipper is dealing with consolidated cargo, where the container is packed by multiple parties or contains cargo from multiple parties, the shipper must still obtain and document the verified gross mass of the packed container. Once the shipper has verified the gross mass of the packed container, it must communicate this information in a shipping document signed by a duly authorised representative of the shipper. A container that does not comply with the guidelines cannot be loaded on-board a vessel. This is mandatory.

Certified method In South Africa, Samsa is the authority responsible for certifying and approving the method used for weighing container contents. As in many countries, all weighing scales have to be certified and calibrated in terms of legislation. Samsa is in the process of appointing third parties who will facilitate this certification. If this is not finalised by the time the guidelines come into force on 1 July 2016, it may likely be that carriers will refuse to receive containers that do not have a VGM, because their insurances will lapse if a carrier loads containers in contravention of Solas.

FREIGHT RAIL

Tristan Wiggill speaks to Mike Asefovitz of Transnet Freight Rail about the state of freight rail operations in the Eastern Cape. What strategies are under way to increase container traffic volumes from the Eastern Cape to Johannesburg? MA We are in the process of changing the operations methodology on rail operations from cross-point working to book-off, in order to improve throughput times of trains between the Reef and Port Elizabeth. This will improve the transit times and the train service will be more consistent and predictable and run as a scheduled rail service. This will lead to improved utilisation of assets and human resources.

How is Transnet Freight Rail (TFR) assisting the critically important motor industry in the province? The abovementioned changes were introduced to specifically address automotive service levels – to depart a train per day to service the automotive sector’s demand. We are in the process of upgrading some older wagons and are also building newgeneration car wagons to increase capacity for the OEMs, Volkswagen and General Motors South Africa. We are also considering the implementation of a shuttle service between manufacturing plants and the Port of Algoa Bay to assist with export traffic.

What is the status of all private sidings in the Eastern Cape and how is TFR encouraging companies to use these facilities?

Training day The Infrastructure Department started with a process to upgrade several lines, branching from New Brighton, to 20 tonnes per-axle capacity. This will increase the capability and capacity of rail infrastructure as trains are getting longer and heavier.

For the Eastern Cape to ensure maximum benefit from its railway investment programme, joint planning with the administration will be necessary. What does this entail exactly? TFR is developing rail infrastructure that will complement the export supply chain in moving bulk trains from the Northern Cape manganese production areas to the new bulk manganese terminal planned at Ngqura.

What has been done to improve rail service delivery in the Eastern Cape and what evidence is there of this? Operational service designs have been changed and implemented to ensure a scheduled railway system. New 20E locomotives, which are more reliable, have been deployed and crews have been retrained. Staffing levels have increased to ensure that available capacity is maximised and assets sweated. The

service failures due to breakdowns have improved considerably and all telemetry equipment has been replaced with more reliable, technologically advanced units.

Within the Eastern Cape, what specific commodities or areas of business is TFR concentrating on and why? The Eastern Cape’s rail traffic is mainly focused on bulk and containerised manganese and the automotive sector. The focus on manganese is mainly due to the distance and strategic positioning of Port Elizabeth in terms of the Northern Cape manganese belt and contributes to the bulk of seaborne traffic in the Eastern Cape. The automotive sector is important to the economy of the Eastern Cape, especially in terms of job creation. The automotive industry, car and accessories manufacturing, is the biggest supplier of employment in the area and is the second highest after the agricultural industry in South Africa.

How is TFR ensuring that areas targeted for improved performance are in line with provincial developmental plans? There is close liaison between provincial governments in all areas of the country and the Department of Public Enterprises to ensure that state-owned entities support the province in their growth initiatives, and improve efficiencies to reduce the cost of doing business in South Africa. TWA | May/June 2016

FREIGHT RAIL

Outlining our plans New Transnet CEO Siyabonga Gama outlines the way forward for the state-owned company.

HILE WE ARE experiencing a tough economic environment, we have a strong belief that, for the company to succeed, all Transnet employees must collaborate and work together. It is only in this manner that we can generate and implement ideas that promote a true partnership across the company. The essence of success lies not in endless debate about our differences, but in accentuating the many common dreams and aspirations that we all share to make Transnet a great company. Critical to this new ethos is our ability to both reimagine and reforge the roles that we envisage in creating a successful Transnet. They go hand-in-hand. One cannot survive without the other. This applies also to the exchange of ideas and, crucially, converting them into action.

TWA | May/June 2016

Reinvention It means reinventing ourselves, creating a new future in a hardening environment, but keeping our shape. Most importantly, we must reshape the core of our business. In these difficult times, we must transform our business by finding new markets, cutting costs and adopting a frugalÂ mentality. All our actions must be anchored in values-based decision-making. To achieve this, we have to identify the values that are most important to us and understand the beliefs that support these values. Crucially, we must live these values. We shall share and discuss our business objectives daily and weekly in our different areas of business. This will allow for a sharper focus on whether we are creating success through our actions.

We must monitor and correct our path when things donâ&#x20AC;&#x2122;t go our way. Importantly, we must learn from our mistakes and ensure a culture of conversations around our business objectives, and how best to meet them. For a long time, we have relied on the voracious Chinese appetite for the commodities we move. Under these circumstances, we could afford to provide capacity at any cost. This has changed, certainly for the next half-decade, perhaps forever. Chinese demand for South African exports has dropped. The Chinese are shifting from an investment-led economy to a consumer-driven economy and demand for many commodities such as coal, steel, manganese, magnetite and iron ore is at its lowest levels in decades. This entire shift

FREIGHT RAIL

brings pain for our customers and, by extension, for us. When our customers are unable to sell, we cannot move any commodities.

Sharpening up Partnerships between Transnet and customers form the base recipe for success. We must have a sharper focus on customer service, on satisfying customers’ needs and on working safely, but with urgency, to ensure satisfied customers. We must learn to appreciate the different inputs, talents and skills of all our colleagues, in order for us to craft a recipe for success. The values and virtues of love for one another, respect for others’ views and opinions, human dignity and continuous engagement on key milestones and actions are crucial for success. Managers must guide workers and workers must adopt a positive and winning mentality to ensure the success of the company as a whole. Happy employees will deliver superior customer service, which, in turn, will ensure growth in our markets and revenue. We must confront any challenge honestly, and with humility, and ensure that we communicate among ourselves at shift changes, at the beginning of a new week, and at any other time to ensure we stay focused. Our values must be protected at all times. We must look for new opportunities like: • FMCG volumes • fostering an intimate understanding of our customers • building new capabilities, using Transnet Engineering, to advance our manufacturing capabilities • using data we own to optimise our spend and drive efficiency. To achieve all these, we have designed and are in the process of consulting on a refreshed operating model for Transnet – an integrated “One Transnet” culture and a way of working with strong integration between operating divisions. Growth must come through an increase in volumes and diversification of the current portfolio. Improved customer experience and strengthening of customer confidence will go a long way, while effective management of the safeguarding functions and the regulatory environment are key. Stakeholder engagement will ensure unity of control and we will continue to prioritise safety, risk and sustainability, streamlining bureaucracy and time-consuming processes. As part of this new thinking, we are changing the manner in which we are organised.

As part of this new way of thinking, we are also changing the manner in which Transnet is organised

TWA | May/June 2016

PORTS

Leading role

What is being done to ensure Ngqura is an attractive facility for commodity exporters? MD The anticipated growth in key commodities will see the Port of Ngqura expanding beyond being a container transshipment hub to also become a leader in manganese export and one of the energy hubs for sub-Saharan Africa. The ports of Port Elizabeth and Ngqura remain catalysts for economic growth in the Eastern Cape, with their strategic plans being driven by local and national development plans. The ports have collaborated with key stakeholders within Nelson Mandela Bay to coordinate strategic issues of mutual significance on matters relating to spatial planning and development, new business development projects, SHEQ-related matters and the provision of infrastructure necessary to facilitate and promote investment and economic development. In support of the Department of Energy’s Integrated Resource Plan, Transnet

National Ports Authority has identified Ngqura as one of the South African ports to handle liquefied natural gas (LNG), liquefied petroleum gas (LPG), liquid bulk (LB) and wind turbines, thus positioning the port as the energy hub for sub-Saharan Africa. This position will be complemented by the LNG Power Plant, which will be situated in the Coega IDZ, together with the LB terminal, which will be relocated from the Port of PE. Being located in close proximity to the IDZ, the Port of Ngqura will also become an industrial port, servicing Coega IDZ and the industrial hinterland of the Eastern Cape and South Africa. The port’s development plans are also aligned with government’s Operation Phakisa initiatives, with the focus being on marine transport and manufacturing, tourism, fisheries and aquaculture.

How does the port plan to increase its container volumes? The Port of Ngqura will continue to collaborate with the neighbouring complementary

THE INTERVIEWEE

Mpumi Dweba is the port manager at the Port of Ngqura, for Transnet National Ports Authority.

Port of PE in servicing the container market, thus bringing the total container capacity in Nelson Mandela Bay to 2.9 million TEUs per annum. The Port of Ngqura is primarily focused on transhipments.

To what extent is the port suited to handle transhipments? Ngqura is a deep-sea port designed to accommodate post-Panamax container vessels. Strategically located between the Indian and Atlantic oceans, the port offers easy access to the east and west shipping routes. It is geographically well positioned to serve as a transhipment hub for sub-Saharan Africa, as well as connecting trade between South America and Asia. Its transhipment design capacity is 2 million TEUs.

TWA | May/June 2016

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WAREHOUSING

Rack and stack I

N MANY CASES, the best solution to maximise room capacity is to partially or fully automate, using mobile racking, stacker cranes or even pallet moles. But, where chamber size and budget don’t allow for this, the best alternative is to choose the correct variation of non-automated storage systems. Warehouses that stock a large range of palletised products should consider standardised conventional pallet racking, as it maintains direct access to each pallet and allows for optimised aisle spaces. This makes it ideal for busy warehouses that store goods on both first-in/first-out and last-in/first-out bases. SABS-approved, epoxy-coated racking is suitable for most cold storage applications, and has been designed to support loads of all sizes.

The refrigerated warehousing sector is always looking for ways to improve and optimise industrial cold storage units operating at temperatures below 0°C.

Racking range Drive-in pallet racking is used in both refrigerator and freezer spaces, and is ideal for small or moderately sized warehouses with low or medium storage heights. This accommodates extreme pallet density and, with pallets stored closer together, results in energy savings due to ambient temperatures that are more easily maintained. Consideration should be given to the stock-keeping unit variation, versus the requirement for direct access, to help ensure optimal efficiency. For warehouses exclusively using the first-in/first-out principle, dynamic gravity racking, called live pallet racking, provides an easy-to-manage solution. Using gravity, pallets are fed down lanes set at an incline, allowing for pallet accumulation while creating an easily managed pick face at the lower end of the lanes. It’s suitable for cold climates with a large number of pallets where accumulation and accurate turnover are important. This racking technology has also been used in warehouses that use man-to-goods picking – along with the appropriate handling equipment at the pick face. Finally, push-back racking allows for storage of up to six pallets deep per level, while the more traditional cradles accommodate four pallets. Designed for

a last-in/first-out approach, this uses height to considerably improve storage density. With this system, each level can correspond to a single pallet type, helping warehouse operators to easily identify, sort and deposit pallets correctly.

Picking the right supplier With so many racking contractors on the market all offering similar products, it’s necessary to look at long-term cost benefits to choosing a first-grade supplier. Rather than merely deploying the cheapest storage equipment, APC Storage Solutions SA uses state-of-the-art design principles that turn conventional solutions into highly efficient and reliable storage systems. Higher operating efficiency means a

return on investment, while long-maintained structural integrity helps ensure this efficiency – long after warehouse commissioning. Additionally, the company takes an integrated approach – looking at material handling solutions, safety, facilities and logistics planning to design and specify a racking solution. It combines various storage equipment types and several material handling equipment systems to provide for a range of warehouse needs. With Mecalux, which spends millions of euros on R&D every year, as a technology partner, the company is fast becoming South Africa’s preferred supplier of conventional as well as automated racking, having completed over 533 installations in the last year. TWA | May/June 2016

INDUSTRY NEWS

Truck maker has 2020 vision HINO SOUTH AFRICA aims to be the top selling truck brand in South Africa by 2020. It plans to do this through its Total Support Programme, which promotes mutual trust between the parent company in Japan, the local concern and the national dealer network. Total sales in 2015, including the Toyota Dyna, rose 6.5% over 2014, with a record 3 601 of these units Hinos. Sales of 883 units in the first quarter of 2016, meanwhile, have seen total market share rise to 14.3%. It is targeting in excess of 4 000 units for the 2016 calendar year. The company was the top performing brand in the 2015 Competitive Customer Experience research survey in terms of sales, service and parts in South Africa and was second in the National Automobile Dealers Association survey in terms of dealers rating their OEMs. It was also rated top in parts and service in Japan’s regional evaluation of its distributors.

Ernie Trautmann, vice-president, Hino SA

While no new models will be introduced this year, all three model ranges – the 300, 500 and 700 – will be fitted with governmentlegislated speed limiters from the third quarter. The 300-Series will receive an elevated air intake while the 500-Series will get ABS brakes, with a change from air/hydraulic brakes to full air brakes for the 1326 model. Euro 3 engines will replace Euro 2 power units in the 500-Series heavy-truck range. The Dyna range will remain unchanged this year, but will get ABS brakes and receive the larger 300-Series cab in January 2017.

The 700-Series extra-heavy range will also get a speed limiter in the fourth quarter. However, from the beginning of next year, the 700-Series will be fitted with Euro 2 engines, although Euro 4 power units will be available on customer order. The maker says there will be a concerted effort to push the benefits of fully automatic transmissions in the medium truck market. It says it wants to improve the standards of its dealers in all aspects of selling and servicing 700-Series trucks and plans to develop a used truck strategy that goes hand in hand with a policy on buy-backs and trade-ins. Additional focus areas will be developing attractive service and maintenance plans and extended warranties. The company’s parts sales target has been lifted by 7%, with efforts to improve parts pricing continuing. The manufacturer will also introduce real-time monitoring of vehicle-off-road cases at the dealers to minimise downtime for its customers, while a learnership programme will be introduced to encourage younger people to enter the truck retailing business.

Driver competition welcomes foreign nationals THE 2016 REGENT Insurance Highway Heroes (HH) campaign launch was held at the Urban Tree in Sandton on 15 April. A decade ago, the company’s management team identified professional driver training as a key point of competitive advantage for both its business and those of its brokers. However, the cost of driver training presented a challenge. “Typically, one would pay between R750 and R1 000, per driver, for an in-cab assessment and R3 500 per driver for a defensive driving course. Regent Risk Solutions now offers driver training, vehicle monitoring and a consulted bureau with added-value benefits,” says Paul Dangerfield, campaign manager: Highway Heroes, Regent Commercial Vehicles. The HH campaign was born in 2014, stemming from the success of the company’s driver training initiative. “We want to change the perception that truck drivers are to blame for the carnage on our roads while demonstrating their contribution to the country’s economy,” explains Dangerfield. Regent Insurance introduced its Driver of the Year competition in 2015, with prizes in excess of R100 000 awarded to the three finalists. The overall winner of the competition was Fairfield Long Haul driver Themba Vilakazi. A few changes have been made to this year’s competition, with the total prize value increased to more than R150 000. The competition is now also open to foreign nationals who are permanently employed in South Africa. Prize money has been increased, with the champion for 2016 set to drive away with R75 000 in cash and prizes. Fleet operators are encouraged to nominate their best drivers to guarantee the future success of the campaign, while showing the general public the value that drivers like Vilakazi bring to people’s lives.

TWA | May/June 2016

2015 Highway Heroes Driver of the Year Themba Vilakazi (left) and campaign affiliate Sasha Martinengo

INDUSTRY NEWS

101 Mercedes-Benz trucks for Bakers SA

Isuzu Trucks pens first chapter of literary drive ISUZU TRUCK South Africa (ITSA) has begun a book collection charity drive called #ITSAEMPTYTRUCK, which kicked off in Port Elizabeth. Collecting and transporting donated books, the truck was stationed in Nelson Mandela Bay in April. Based on the international award-winning concept, “The Empty Shop”, the company is inviting the public to donate books, filling the truck with them. “Each book brings us a step closer to driving a better South Africa,” says Craig Uren, COO, ITSA. “This was a natural leap for us, as we’ve always been interested in empowering youth and giving back. As our workforce hails from the Eastern Cape, Port Elizabeth is the most natural place to commence our efforts and give back to less fortunate communities,” concludes Uren. The selected beneficiary this year is IRONMAN 4 the Kidz Charity Trust, a non-profit organisation that aims to raise awareness for the plight of less fortunate children. “We are grateful for the #ITSAEMPTYTRUCK project,” says exSpringbok Garth Wright, who launched IRONMAN 4 the Kidz. “Literacy is very close to our hearts as an organisation. “The fact that ITSA is willing to support our dream and fight beside us is a real honour,” Wright concludes.

MERCEDES-BENZ TRUCKS has handed over 101 Actros trucks to Bakers SA Limited. The Pietermaritzburg-based company has operated with 99% Mercedes-Benz trucks since its inception in the 1970s. “This is the single biggest order that Bakers SA Limited has concluded with Mercedes-Benz Trucks and, as in the past, we are sure that we will reap the benefits,” said Abdul Tayob, chairman of Bakers SA Limited. “There are a number of advantages that make us so loyal to the brand. From a technical side, the trucks’ reliability, improved safety and low fuel consumption mean we could not have made a better choice. I have to add that the relationships we have with both MBSA and our local dealer Mercedes-Benz Garden City Commercials mean that we received the best deal possible. That is why we decided on an all-inclusive package with all the value chain partners: FleetBoard, CharterWay and Mercedes-Benz Financial Services. We look forward to even more success from this relationship,” added Tayob.

R2 billion investment boosts local tyre manufacture

SUMITOMO RUBBER South Africa (SRSA) is investing R2 billion in its Dunlop tyre manufacturing plant in Ladysmith. The initial phase of the investment – worth R1.1 billion – commenced in 2014 and focused on upgrading and modernising the plant’s capacity. New technology and equipment resulted in increased manufacturing output at the plant of passenger and SUV tyres. Dunlop’s parent company, Sumitomo Rubber Industries (SRI) in Japan, allocated the investment for the first phase of development. This coincided with the introduction of new SUV tyre models that were not yet manufactured at the Ladysmith plant. “This is our response to the market trend and demand for these models in both South Africa and other African markets,” says Riaz Haffejee, CEO, SRSA. Phase 2, at an estimated value of R910 million, focuses on the introduction and manufacture of truck and bus tyres for commercial use. This Dunlop-branded product line is currently being imported into South Africa from SRI’s plants in Japan and China, due to the unavailability of suitable local manufacturing capacity. This new investment will establish a suitable local manufacturing base and end the current import arrangement. TWA | May/June 2016

AIR CARGO

Creatures of habitat There are few causes that better galvanise interest and support across the global transport and logistics sectors than the challenge of wildlife trafficking.

N THIS REGARD, I would like to recognise the special commitment and support of the CEOs of Emirates and Kenya Airways, who served on the United for Wildlife Transport Task Force. In particular, I must recognise Sir Tim Clark. His drive and enthusiasm have been unwavering. The global air transport network is being exploited by wildlife traffickers. There are many examples of very sophisticated smugglers. Some travel in groups on convoluted routes. Others misdescribe shipments, while some carry contraband on their body in ingenious ways. Government enforcement authorities work hard to spot and stop these activities. But their window of observation is limited. Airlines signing on to the United for Wildlife (UW) Declaration will support their important work in several ways. First, we will raise awareness of the issue among travellers. Tim has painted the UW logo on A380s, carrying the message across the Emirates global network. Information materials are being prepared for airlines to share with their passengers in various ways throughout their journey. By working together in the IATA Airline Wildlife Task Force, best practices are being spread across the industry. Second, it might not be top of mind, but there are safety concerns in this issue. To start, controlling illegal trade in wildlife helps keep passengers and crew safe while on-board. There have been several instances of dangerous animals

escaping storage. These have been as small as scorpions or as large as crocodiles and baboons! And, more broadly, public health is maintained by controlling the movement of potentially disease-carrying animals. Thirdly, we commit to raising awareness among airline staff through training sessions that help them to spot and report suspicious activity. In recent months, we have worked in partnership with airlines, airports and authorities, from Kenya to Thailand. For these and many other countries, ensuring a sustainable environment for wildlife has the further benefit of preserving a tourism resource that supports many livelihoods. Finally, all of this activity fits into a bigger picture of collaboration among industry and both national and global institutions. Through IATA, for example, airlines have a formalised relationship with the US Agency for International Development on a Partnership for Reducing Opportunities for Unlawful Transport of Endangered Species (ROUTES). The UW initiative has added a new dimension to our work with the World Customs Organisation, which operates a critical reporting platform. Last year, we deepened our cooperation with CITES, the UN body responsible for regulating the international trade in protected species. Also last year, IATA signed an agreement to work with CITES, which is helping us to operationalise the spirit of the United for Wildlife Declaration. In addition, signing the UW’s Buckingham Palace Declaration is not a one-off event for the airline industry. Cooperation and collaboration across the air transport industry in support of the important mission of government enforcement authorities is already happening in many areas. With this declaration, we are moving industry commitment to a higher level. Aviation is a force for good; you can count on us to play a responsible role in helping authorities put an end to this evil trade.

THE AUTHOR

Tony Tyler is the director general and CEO of IATA.

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