September/October 2011
AFRICA Complete transport & logistics management solutions
eTolls
It just doesn’t balance
Road safety
Check before you wreck
Maputo Corridor The road to a new future
Rail, crucial to regional economic performance P10 Ra ISSN 1684-7946 Vol. 9 No. 4 / R30.00 incl. VAT
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Moving Africa, efficiently
Transnet Freight Rail (TFR) under the leadership of Chief Executive Siyabonga Gama is the largest operating division of Transnet Limited, a State Owned Enterprise (SOE) under the auspices of The Department of Public Enterprise. TFR transports freight on approximately 20 800 kilometers of rail network of which 1 500 kilometers, comprises heavy haul export lines. The company services a wide range of industries including, but not limited to; mining, coal, iron ore, manganese, steel, ferrochrome, cement, granite manufacturing, agriculture, automotive, petroleum and chemicals. Inspite of the company facing a number of operational challenges such as, ageing rolling stock, derailments and productivity related inefficiencies, TFR is rising above these challenges through various capital investment plans and employee engagement processes which cover amongst other things, productivity, employee training and safety. Approximately 58.3% of Transnet’s R 110,6 billion set aside for investment will be spent on rail. For this financial year, capital investment highlights include:
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The acquisition of 58 19E dual voltage locomotives, 34 Class 15E’s with a further 32 on order for the iron ore line running from Sishen to Saldanha.
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A total of 100 GE diesel-electric, C30Ai currently being assembled by Transnet Rail Engineering’s, Koedoespoort facility for the coal line and general freight business.
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Also underway is the upgrade of 41 locomotives from Class 6E to Class 18E, two Class 43 GE diesel locomotives and 354 wagons for the Port Elizabeth Manganese plant.
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Converting 410 wagons from 48 tons to 60 tons.
The recapitalisation programme will see a significant increase of the active wagon and locomotive fleet by 6% and 18% respectively, creating additional capacity on the coal line to 81 million tons by 2014; about 110 million tons in the general freight business by 2016, and 60.7 million tons of export iron ore by 2014. TFR will continue to invest heavily in order to meet the growing demand of South and Southern African industries. In May this year two major milestones were achieved which will see rail claiming back lost market share. This includes, amongst others, a coal container rail solution for Eskom as well as an improved container rail service offering between the port of Durban and Johannesburg, fondly termed “The Anaconda”. This service is made up of 75 wagon container trains, running four times a day, three days a week, moving 1800 TEU’s a week. This service has expanded to include the Pretoria to Durban route which will see a further 2100 TEU’s a week. Eskom has committed to implementing a rail migration strategy that will result in migrating the transportation of 26 million tons of coal from road to rail over the next five to six years. This will ensure cost-efficiencies, and the capability of switching modes of transport from the source of supply in the event of supply challenges, therefore minimising the social and environmental impact, as well as improve safety on the roads. In July this year TFR signed an agreement with the Limpopo Roads and Transport Department to improve the efficiency of rail links in the province. The aim is to rail more agricultural and mining products from the province, and ease the pressure on provinces road infrastructure. For more information on how Transnet Freight Rail can be of service to your organization, contact us.
www.transnetfreightrail.co.za
TWA September/October 11 Vol 9 No4 Septem
ber/Oc
Complete tran
INSIDE Industry perspectives Reduced toll fees still threaten economy eTolls: It doesn’t balance Urgent upgrade needed
Africa rail
Putting a region at risk?
Transport corridors The Maputo Corridor
eTolls It
just do balance esn’t
Retail opportunities abound PMAESA studies cruise tourism potential La Route Rouge
tober
2011
A FR IC A
s
Road
Check be safety fore you wreck
Ma uto Corrp idor The
Rail, cru
cial to reg ional eco nomic per ISSN formanc 1684-79 e 46 Vol. 9
Road safety
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Shipping’s new future Business growth through skills development
incl. VAT
P10
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sm edi
a.c o.z
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Cover Story
Check yourself before you wreck yourself
People development
Mercedes-Benz
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Going green with BlueTec
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Supply chain logistics
Regional focus
ent solution
No. 4 / R30.0 0
13 The role of supply chain management
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The milk run
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road to a new futur e
Technical insight 6 7 9
sport & logi
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Technical corner Designed to handle pressure
Regulars Editorial comment SADC projects Product news The tail end
43 2 32 37 44 TWA 09/10 | 2011 – 1
F ROM T HE D RIVER’S S EAT Publisher Elizabeth Shorten Editor Tony Stone • tony@3smedia.co.za Creative chief executive Frédérick Danton Contributors Barney Curtis, CESA, RMI, John Batwell, Rev. Dr. Robert Walters, PMAESA Chief sub-editor Cindy Maulgue Sub-editor Danielle Hugo Production manager Antois-Leigh Botma Production coordinator Jacqueline Modise Financial manager Andrew Lobban Administrator Tonya Hebenton Subscription sales Nomsa Masina Distribution coordinator Asha Pursotham Printers United Litho JHB • t +27 (0)11 402 0571 Advertising sales Hanlie Fintelman • h.fintelman@lantic.net t +27 (0)12 543 2564
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www.3smedia.co.za Annual subscription: R225 (incl VAT) ISSN 1684-7946 © Copyright. All rights reserved. Editorial advisory board • Barney Curtis, executive officer of FESARTA • Garry Marshall, CEO, SA Express Parcel Association • Bill Cameron, director, Transport Research Consultancy • Graham Ross, retired road engineer • Dr Andrew Shaw, principal transport analyst for Development Bank of South Africa • Captain Colin Jordaan, CEO and commissioner of the Civil Aviation Authority • Prof. Leon Raath, board member, Chartered Institute of Logistics and Transport, South Africa • Barlow Manilal, CEO, Automotive Industry Development Centre and National President of The Chartered Institute of Logistics & Transport (CILTSA) • Anthony Cole, COD, Concorde Maritime Academy. All articles herein TWA are copyright-protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the publishers.
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Arrogance diminishes wisdom
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deterioration of transport infrastructure, additional taxes, misappropriated funds and muzzling the press are still very much on the table, and very topical at the moment. In the final analysis it all boils down to leadership. When leaders, particularly in senior positions in a government, adopt attitudes of superiority, which are manifest in ‘misunderstood authority’ and political power, and they become overbearing and presumptuous, being all knowing, and coloured by prejudice, it closes their ears to the voices of wisdom. This is when we see a country’s infrastructure and economy deteriorate. In Africa, examples abound. Surely, as intelligent human beings, we should learn from the mistakes of others? Perhaps not! Stealing from Peter to Pay Paul, as well as killing the goose that lays the golden egg, are not economically sound policies. The familiar adage, ‘born free, taxed to death’, may well apply in South Africa unless we can breathe new life (understanding) into the economic vision of our fathers and mothers, those who lead us. And, as they grow rich, they should remember that the offspring of newly-acquired wealth are pride, vanity, ostentation, arrogance and tyranny, signs of which we see everyday. Censorship to avoid embarrassment is foolish. The only way forward is to embrace ethics and truth, openly. Otherwise, it is a very slippery slope we travel. It’s quite amazing how we perceive things. People talk about issues but leave out details. In the process we automatically, by adopting a ‘benefit of the doubt’ attitude, read into the story a status based on our own experiences which, in South Africa, are generally better than the rest of Africa, only to have that perception blown out of the water when we see reality. The Red Road in the DRC is one such example. On the up side, it’s not all doom and gloom. The Maputo Corridor is a great success, and getting better. It clearly demonstrates the relationship between the various modes of transport and how, in working together, the synergies can be extrapolated.
Two amazing ladies, and leaders in their field, take on a traditionally man’s world and come up trumps. With the world economically challenged, we need to look to our own continent for opportunities. And, prospects there are. So, building on JFK’s famous quote, if we
With the road summit coming up we will have much to talk about – as per usual look at what we can do for our continent, we will discover that it is well and truly a land of opportunity. We just have to make it happen. As always, road safety is of utmost importance. Injury or death is costly in more ways than one. With the road summit coming up we will have much to talk about – as per usual. Perhaps we need a hard-hitting advertising campaign to shock people into seeing reality. We also have plenty of news. Of particular importance is the upcoming Johannesburg International Motor Show, which promises to be even more interesting and informative than the last one. A number of key announcements are expected to be made, so it’s a not-to-be-missed event. Last, but by no means least, we discuss a taxing problem.
Editor ditor
C OVER S TORY
BlueTec development, a maturing technology, receives a clean bill of health and accolades for reducing CO2 emissions.
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onstantly improving fuel injection, combustion and exhaust gas aftertreatment in engine development: the researchers at Daimler AG are pursuing this objective with sophisticated simulation technology. Their aim is to reduce fuel consumption even further while, at the same time, complying with increasingly stringent emission
limits for nitrogen oxides and particulates. By means of model calculations in combination with real-life tests, a higher degree of development maturity can be reached at an earlier stage. For example, the environmentfriendly BlueTec diesel technology – after the positive experience gained in the U.S. market and Europe – is now also available in South Africa.
Exhaust-gas treatment of the E 320 BlueTec
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C O V E R S TORY Theory and practice For a number of years, the Daimler researchers have been carrying out simulations for the design of exhaust gas units and their optimisation: although indispensable, the conventional measurements on the test rig are time-consuming and expensive. Moreover, in view of its large number of components, the complex overall system comprising engine and exhaust gas after-treatment unit can only be efficiently optimised by means of modelling. It is the link between simulation and measurement that makes new, stateof-the-art exhaust gas after-treatment systems such as BlueTec possible. This modular concept initially involves reducing nitrogen oxide levels by means of engine optimisation measures; these are supplemented by an intelligent exhaust gas after-treatment system that operates without additional service fluids and reduces further emissions.
Thiss peerffect match h of theoory and practicce greaatlyy enhaances thee degrreee of maturityy in n deveeloopm men nt
The clean diesel engine In the case of the diesel engine, the experts are focussing their attention on the emission of nitrogen oxides and particulates. Future exhaust systems, for instance, will as a rule combine filters and catalytic converters, whereby interaction between the individual components must be taken into account. These components also communicate with the combustion process within the engine: the exhaust system, for example, informs the engine when the particulate filter is full and the engine, in turn, must react accordingly.
Individually calculated, reaching the goal together Daimler AG’s researchers take these complicated interactions into account in their simulations. They are developing models for individual components such as the threeway catalytic converter, oxidation, SCR and NOx storage catalytic converters, and the particulate filter. These models are founded on physical and chemical processes. In order to ultimately integrate these individual models into an overall system, the specialists at Daimler have also developed a so-called simulation environment. On this basis, they can assemble the various components into a modular system. This ensures user-friendly handling. Researchers and development experts can now jointly ascertain the most favourable configuration of individual components in each case for engine optimisation and plan their work accordingly.
Adblue makes it go green!
design of the overall system and of the individual components is initially assessed by means of simulation; the reallife tests on the test rig can then be strategically initiated. This perfect match of theory and practice greatly enhances the degree of maturity in development. With the benefit of these findings, the experts are now in a position to develop the best possible operation strategy at an early stage, in order to gradually optimise the engine. BlueTec is a prime example of modern diesel technology – clean and efficient.
Mercedes-Benz Actros BlueTec in South Africa Mercedes-Benz Commercial Vehicles, and one of their long-standing customers, embarked on a pilot project in mid-2010 by incorporating four environmentallyfriendly Euro 5 trucks into their fleet. The Mercedes-Benz BlueTec Actros 1832 LS/36 and BlueTec Actros 2651 LS/33 trucks went into service on the operator’s routes. The Mercedes-Benz BlueTec Actros 1832 LS/36 is ideally suited for local distribution and the Mercedes-Benz BlueTec Actros 2651 LS/33 is a perfect combination for long-distance applications. Following close tracking and accurate monitoring over the past few months, the results are conclusive: with more efficiency in reducing air pollutants and supremely frugal fuel performance, fuel savings have been reported. The operator manages the ongoing supply of the low sulphur fuel together with AdBlue – exhaust gas treatment fluid – and this has been implemented on a controlled basis (“Base Camp logic”) by a reputable fuel company with a strong local presence. Daimler is driving forward a drastic reduction in fuel consumption and exhaust gas emissions from commercial vehicles with its Clean Drive Technologies. There are more than 300 000 trucks operating with BlueTec technology worldwide, along with over 30 000 buses and coaches. The BlueTec SCR technology from Daimler is starting to break through globally, with the major markets of North America and Japan now following Europe’s trend and implementing this technology on an increasingly frequent basis.
Prior assessment The researchers’ calculations help answer some highly diverse questions: what temperatures prevail before and after exhaust gas after-treatment and what the nitrogen oxide levels are? What values are modified when a larger catalytic converter is used? Is the temperature window optimal? Are the pipes of the right length? Once several test cycles have been completed, the data becomes available for preliminary optimisation. The products and services to an appropriate audience. Please call one of our sales consultants on +27 (0)11 233 2600 to secure your booking. The article does not necessarily represent the views of the publisher.
TWA 09/10 | 2011 – 5
I NDUSTRY P ERSPECTIVES
Reduced toll fees still threaten economy Road freight operators will be seriously hard hit by the proposed fee per kilometre.
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he lowering of the proposed toll fees is a welcome step in the right direction for commuters but it still falls far short of what is realistic for businesses to economically operate in Gauteng,” said RMI CEO, Jeff Osborne, in a statement on the adjusted toll fees proposed by the Gauteng Freeway Improvement Project (GFIP) Steering Committee. Osborne points out that the revised toll fees will still impose significant costs on businesses that will be felt right across the spectrum, from tourism to manufacturers. The cost impact on fast-moving consumer goods, particularly basic foodstuffs, will still be felt most significantly by working and unemployed poor people. Road freight operators will also be seriously hard hit and the proposed fee per kilometre in the current business model will force
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freight companies to operate well beyond what is economically viable. Large freight enterprises will more than likely be able to absorb these additional expenses, but SMMEs will struggle and additional costs will have to be passed onto clients. In all likelihood, however, they will have to either close completely or downscale in order to operate competitively. Many of these SMMEs and large courier companies outsource their business to owner drivers, a major avenue for BEE empowerment. “The GFIP Steering Committees is naive to assume that the cost of the toll fees can be offset by lower truck maintenance costs due to improved roads,” stated Osborne. “There might be some reduction
"The current business model will force freight companies to operate well beyond what is economically viable" Jeff Osborne, RMI CEO
on maintenance costs but trucks will still have to travel bad roads outside of toll routes. Increased congestion on alternative roads as motorists try to avoid paying toll fees will likely mean freight and transport companies operate less efficiently, adding to further cost burdens.” The Gauteng Freeway Improvement Project is designed to upgrade approximately 560 km of provincial roads. Phase A1 of the project has upgraded 185 km of the existing road network, largely through bonds issued by the South African National Roads Agency Limited. “The massive cost of the GFIP has been ineptly incurred by government,” says Osborne. “The lengths that it has gone to and the extent to which it has undertaken very expensive tollcollection gantries and road upgrades cannot be justified when the roads could have been more cost effectively improved by a holistic road maintenance strategy and restructured national fuel levy as part of the funding mix to maintain our roads. “The process continues to be prescriptive and without proper consultation with the stakeholders,” Osborne adds. “The steering committee has bowed to threats of violence and disruption by the taxi drivers and owners and declared that taxis will be exempt of the toll fees. The exclusion is notably thin on rationale and effectively implies that road users will now be subsidising public transport. “If the intention is to roll out tolling elsewhere in the country, we need to stick to our principles and demand transparent and fair processes, with proper consultation with the stakeholders. Without this, the fiasco in Gauteng will simply be repeated from province to province.”
I NDUSTRY P ERSPECTIVES
eTolls
It doesn’t balance
T
he ministers Sbu Ndebele (transport) and Dipuo Peters (energy) have both come out in strong criticism of the critics of Gauteng’s now finalised eTolls – pretty much the majority of business in South Africa and Gauteng’s electorate. Subsequently, COSATU and the AA have come out in strong criticism of the two ministers. A right royal merry-go-round! In the meantime we need to keep our eye on the
by Tony Stone
ball. The South African Petroleum Retailers Association (SAPRA), a constituent association of the Retail Motor Industry (RMI) association of South Africa, reports that retail stations sell about 950 million litres of petrol and 830 million litres of diesel per month. Based on these numbers and the manner in which the fuel price is determined, the government collects R1.4 billion in customs and excise duty, R13 billion for the Road Accident
Fund (RAF) and R41.4 billion in fuel tax per annum, which is meant for road construction and maintenance. So, taking what Ndebele and Dipuo say – “If you want roads, you have to pay for them!� – well, we do pay. But the books don’t balance! According to the South African Road Federation, in its 2010 Road Review of provincial and national roads, the government spent R27.5 billion in 2009 and R33.2 billion in 2010, will spend R31.4 billion in 2011 and plans to spend R28.1 billion in 2012 on these roads. In deducting 2011 expenditure from revenue (R41.4 in income less R31.4 in expenditure), we can see that there is a distinct shortfall of R10 billion. So, where is the money going? Given that the backlog in road maintenance is somewhere between R80 and R100 billion, why are we, the road users who are paying, being short-changed by government? These questions require an answer! Are Ndebele and Dipuo up to giving us these answers? And, while we are about it, if the RAF is receiving the kind of money that it is, why is this organisation such a disaster? TWA 09/10 | 2011 – 7
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I NDUSTRY P ERSPECTIVES GAUTENG’S SECONDARY ROAD NETWORK
Urgent upgrade needed With the economic realities of eTolling, road users will move back onto suburban roads, exacerbating the damage that is already prevalent.
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onsulting Engineers South Africa (CESA) urges authorities to budget for the upgrading of the secondary road network in Gauteng as this has not been adequately developed to serve as a viable alternative to the primary freeway system that will shortly be tolled. The Gauteng Freeway Improvement Project (GFIP) is the first urban toll road to be tolled on such a large scale and has resulted in a major public outcry. CESA understands the significant impact of toll fees on the Gauteng economy and, given Gauteng’s economic significance in terms of the South African economy, considers it imperative that the secondary road network receives urgent attention. CESA supports the concept of a toll. Without a toll, this high-capacity freeway system could potentially become congested, which will negate the benefit to the users. If Government decides to pitch the quantum of the toll at a level lower than required to repay the borrowings in the required time period, in order to not unduly harm the Gauteng (and indirectly the South African) economy, then the shortfall may have to be made up through a fuel levy or by making an allocation from the fiscus. The debate about a dedicated fuel level has to be held with National Treasury and the government. CESA believes that the GFIP project is not only very necessary and timeous for preventing the smothering of the local economy, but that the road widening and interchange improvements are appropriate and commensurate with the current demand. The freeway system in Gauteng which was built during the seventies and eighties was becoming increasingly congested (despite traffic management interventions such as the restriping of lanes, etc.), to the extent that the economic
growth in Gauteng was being impacted very negatively. The South African National Roads Agency Limited (SANRAL) acted in terms of its responsibilities and the power bestowed upon it by government “to perform strategic planning, as well as planning, design , construction, operation, management, control, maintenance and rehabilitation” of the Gauteng road system.
independent statutory company with the purpose of maintaining and developing South Africa’s expanding national road system. According to the white paper of 1996, a distinction is made between ‘economic infrastructure’ with a measureable economic or financial return and ‘social infrastructure’ which cannot be paid for by the user, but which provides social benefits. Economic infrastructure includes primary roads, railways, ports, airports and pipelines, where the principle of user charging or cost recovery from direct users will be applied as far as possible. The white paper states that, “in the case of roads, this cost recovery may take the form of a fuel levy, which is a surrogate user charge, or tolling, which is a direct user charge”. The White Paper further states that, under the heading of Infrastructure policy: “Since various types of infrastructure differ in their suitability and economic viability for cost recovery through user charging and/or
This perfeect match off theory and praactice greaatlly enhaanccess the degreee off CESA believes that SANRAL had no alternative but to borrow money on the open market and opt for tolling. SANRAL does not have the power to impose a fuel levy, be it regional or national, be it ring-fenced or dedicated, be it to cover all capital cost, or be it to reduce toll fees to lower levels. The National Department of Transport and SANRAL have, over the years, constructed or upgraded a number of intercity toll roads. These toll roads (e.g. the N3 Durban/ Johannesburg, the N4 Mozambique/Pretoria/ Rustenburg/Botswana border and certain sections of the N1 between Johannesburg and Bloemfontein) have generally met with user satisfaction. Contrary to these intercity freeways which carry long distance traffic, the Gauteng freeway system is the first urban commuter route to be tolled in South Africa.
Background As envisaged in the White Paper of August 1996, the SA National Roads Agency was established in 1998 by an act of parliament, as an Zulch Lötter, CESA president
direct recovery of investment by the private sector, distinction will be made between: • Infrastructure for social access, requiring funding or ‘subsidy’. • Infrastructure suitable for indirect user charges, e.g. fuel levies, licence fees and tax on fares. • Infrastructure suitable for private sector investment, e.g. toll roads. “The primary road network should preferably be financed through a dedicated levy on fuel and toll charges. Innovative ways of securing finance for the development of road infrastructure will be explored. These include Build-Operate–Transfer (BOT) or Fund-Rehabilitate-Operate-Maintain (FROM) contracts which enable government to obtain financing from private sources rather than spending taxpayers’ money.”
TWA 09/10 | 2011 – 9
A FRICA R AIL STRATEGIC RAIL SYSTEMS
Putting a region at risk? Rail transport writer John Batwell reviews Zimbabwe’s strategic rail system in Southern Africa 31 years after independence.
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ust over three decades ago, the fledgling Southern African independent state of Zimbabwe inherited from its ‘colonial masters’ one of the continent’s finest railway systems – once a vitally important, seamless and well-greased rail corridor contributory to the economic well-being of the whole region. Thirty years later, economic mismanagement of Zimbabwe by the ruling ZANU PF government has crippled its numerous parastatals, including the near-on 2 800 km National Railways of Zimbabwe (NRZ) systems. In later years, the brain drain from the NRZ, compounded by strike action for foreign exchange remuneration owing to the collapsed local currency, prompted the pulling in of retired staff. The overt opulence of NRZ senior management driving brand new 4 x 4 vehicles also prompted industrial response. In a country that laid claim to being safe and rather crime free, the gap between the ‘haves’ and ‘have-nots’ has catapulted Zimbabwe into being a freefor-all society. The NRZ has not been spared this survival mindset. In 2011, at least US$750 million (approximately R5.37 billion) is required to rebuild the NRZ, according to Ministry of Finance statistics, with US$59.9 million being required to remove speed restrictions, US$284 million to rehabilitate rail tracks, US$23.3 million to re-electrify the 307 km Dabuka-Harare section and US$83.9 million to purchase signalling and telecommunications equipment. The short, electrified section was a modern showpiece just four years after independence. The situation has deteriorated to the supporting masts being uprooted, in addition to the theft of the wiring. The electrified section,
10 – TWA 09/10 | 2011
in which 360 km of copper cables were stolen, has consequently ended up returning to diesel traction, rendering the fleet of electric units useless. In December 2010, the NRZ reported that only one of an original fleet of 30 electric locomotives was operable. The theft of phone lines along the system has created a return to p a p e r- w r i t t e n instructions and also radio communication between train crews and centralised traffic control (CTC). The former Rhodesia Railways prided itself on having put CTC in place from as far back as the early 50s. In the past 10 years some horrific collisions have occurred, resulting in considerable human loss, a fact that the state-controlled media chose to play down. The system is reported to be working at between 30 and 50% of its capacity owing to the myriad challenges. The struggling parastatal has on more than one occasion failed to raise, via
Economic mismanagement off Zi Zimbabwe b b h has crippled i l d the National Railways of Zimbabwe
A FRICA R AIL government, the monies to put in place desperately needed new motive power and rolling stock procurements. Seven years ago, a $US110.4 million deal with China for 10 locomotives, eight commuter train sets and 64 inter-city coaches came to nothing. Further orders for 29 passenger coaches, from the Nanjing Puzhen Rolling Stock Company, and 14 diesel locomotives, have also been thwarted. The system’s oldest diesel-electric motive power type, although it was re-engined, now dates back to the mid-1960s, while elements of the passenger rolling stock date back to the 50s.
Passenger services NRZ’s passenger services, both urban in the form of ‘the Freedom Trains’ linking the high-density suburbs with the main city centre in both Bulawayo and Harare and the inter-city services, were popular when the Zimbabwean currency was in free-fall. The train was cheapest! However, since the US dollar has become the standard currency following the abandonment of the hyperinflated Zimbabwe dollar, commuters have returned to road transport as the taxi services are quicker and once again competitive fare-wise. The aged passenger train rolling stock has become dirty, smelly and dangerous owing to dark travel – carriage interiors are often not lit, making commuters feel vulnerable. Late running of the trains has also become an issue with patrons, as well as overcrowding when insufficient saloons are laid on. There has been a decline in goods carried to 3.7 million tonnes during 2010, from the 18 million tonnes shipped in 1998!
A lack of finance In December 2010, the NRZ’s corporate communications manager stated in the media that China North Railway Company (CNRC) would only deliver an order for 14 diesel units on full payment of what is a $US29 million deal. The Government had raised a 10% deposit by year-end and in early 2011 was looking for a line of credit. The World Bank was not shy of late to suggest that many parts of the rail system be shut down owing to their poor condition. In May, it was planned to start rehabilitating 144 km of the network. NRZ’s public relations manager, Fanuel Masikati, said material for the work had already been secured from China. He indicated that areas in need of repair included sections of rail along the Dabuka-Harare and Harare-Mutare routes. Masikati added that the NRZ had engaged a local firm to manufacture rail sleepers for
the exercise. Not only is the railway important to the economic viability of Zimbabwe, but as stated earlier, the NRZ network is a major corridor for neighbouring states, such as Zambia and the Democratic Republic of Congo, and their life-line connection to South African ports. In March this year, the parastatal announced to the independent media that it was expecting cargo volumes to surge by 58% to 6.4 million tonnes this year – a slight upturn, particularly in minerals, would dictate this anticipated improvement. Time will tell if such traffic is actually moved. The NRZ’s woes continue: in December, it was reported that Zimbabwean farmers have moved a step closer to seizing planes belonging to the troubled state carrier Air Zimbabwe and trains owned by the NRZ in their efforts to get compensation for
The NRZ network is a major corridor for neighbouring states and is their life-line connection to African ports farms seized by President Robert Mugabe – without any compensation – since 2000. In claims that were registered recently in New York, the farmers have now been empowered to attach planes, trains and any assets belonging to quasi-state corporations that they can identify outside of Zimbabwe’s borders. Despite the gloom and doom, the NRZ still plays host to tour operators by running steam safaris in the southern and western parts of the country. These clients speak highly of the NRZ operating department’s efforts to put on a good spectacle against the very difficult odds at hand. The NRZ has recently embarked on a new business unit – marketing and running its own Rail Leisure ventures. That’s one thing: the Zimbabwean people have always had to
be admired for their absolute gob-smacking resilience and ability to get stuck in and ‘make a plan’.
Heel dragging Sadly, the Zimbabwean government has dragged its heels in establishing PPPs to help revive its parastatals, not to mention the NRZ. A railway board dissolved back in 2008 was still involved in decision-making three years after its dissolution. Brigadiergeneral Douglas Nyikayaramba headed up the board, which has been under fire from NRZ workers who accuse it of failing to halt the collapse of the country’s sole rail transporter. The government is also under pressure to demilitarise parastatals in line with the new political dispensation. NRZ’s general manager is retired Air Force of Zimbabwe air commodore Mike Karakadzai. In late March, the Zimbabwean Cabinet approved two bills that provide the legal framework for the implementation of reforms and restructuring in troubled parastatals, such as the NRZ. One does hope that something far more tangible than simply cheap parliamentary banter and debate comes out of these bills, since Zimbabwe’s rail system is so pivotal to the seamless regional transport structure desired by rail managers on the ground and by politicians – in the latter’s case, hopefully not only rhetorically any longer!
TWA 09/10 | 2011 – 11
T RANSPORT C ORRIDORS
The Maputo Corridor Ravaged by war and now resurrected, in these, the early days of the African renaissance, the Maputo Corridor is coming into its own. Investor confidence is up and the future looks bright. By Tony Stone
T
he 96.2 km distance from South Africa’s Lebombo border post to the Port of Maputo was once called the ‘road from hell’. Affected by the War of Independence with Portugal (1964 to 1974) and then the Mozambican Civil War between Frelimo and Renamo (1976 to 1992), the Maputo road became almost impassable. Anyone embarking on this journey in anything other than a 4 x 4 tempted fate to the extreme. Up until 1992, Mozambique faced severe problems after its independence in 1975. Economic and social recession, Marxist totalitarianism, corruption, poverty, inequality and failed central planning eroded the initial revolutionary fervour and bankrupted the country. It was only after peace returned in 1992 that the country stabilised and, for
12 – TWA 09/10 | 2011
the first time in decades, could start rebuilding its shattered economy. Today the ‘road from hell’ is an absolute pleasure to drive on. Totally transformed from the potholed, crater strewn, water-logged strip of something that was called a ‘road’, Trans African Concessions (TRAC), the concessionaire responsible for the financing, design, construction,
rehabilitation, operation, maintenance and future expansion of the N4 Toll Route between Johannesburg and Maputo, has turned this short stretch of road into a firstclass, tolled, single carriageway trunk road. On the South African side, from Johannesburg to Komatipoort, the N4 dual then single carriageway toll route is in excellent condition, and well maintained
STRONG ECONOMIC GROWTH PROJECTED FOR MOZAMBIQUE AFRICA COMMENTATOR, Claude Harding, reports that Mozambique’s rapidly expanding banking sector will support growth through its emerging credit markets. Although the country will see below trend growth to 2015, it is expected to outperform its neighbours with an annual growth rate above 7%. Furthermore, it is anticipated that the Mozambican government’s policies of pushing towards poverty reduction, infrastructure development and the creation of a business-friendly environment will continue. Moreover, Mozambique’s external accounts should remain fairly well supported by foreign direct investment into, amongst other industries, the mining sector. In a nutshell, the future looks good.
T RANSPORT C ORRIDORS
by TRAC. The only downside are the tolls and the odd places along the single carriageway where traffic builds up behind large vehicles that don’t move over into the emergency lane so that faster moving traffic can pass.
roads compromise the safety of all road users. A survey conducted along the N4 Maputo Corridor Toll Route in 2000 indicated that over 32% of the vehicles were overloaded. Now, since the introduction of load control centres Load control centres (weigh bridges) on the N4 route, where more than one million vehicles Unfortunately, you will always find overloaded vehicles have been weighed, overloading has been significantly on our roads as people try to reduce their costs. While reduced. Currently, only 9% of the average daily heavy Table 1 that makes financial sense, doing so at someone else’s vehicle traffic is overloaded and less than 1% of this trafLoad control expense is not playing cricket. Overloaded vehicles fic is illegally overloaded. centres (LCCs) cause extensive damage to our roads every year. Not to With the co-operation of several national, provincial and operated By mention the significant costs of repair and that damaged local government departments, SANRAL, the concesTRAC on the N4 sionaires and the freight industry, meaningful progress has been made Country Location Name Description Telephone to combat overloading of heavy vehiPretoria (East) Donkerhoek LCC Bidirectional +27 (0)13 932 2198 cles on the national roads throughout West bound towards +27 (0)13 243 9651 Midwest LCC South Africa. TRAC has expressed Johannesburg Middleburg its appreciation for the commitment Mideast LCC East bound towards Nelspruit +27 (0)13 243 9658 RSA of heavy vehicle operators to curb West bound towards +27 (0)13 256 0756 Machado LCC overloading. Johannesburg
Machadodorp
Mozambique
Farrefontein
East bound towards Nelspruit
+27 (0)13 256 1086
Komatipoort
Komati LCC
Bidirectional
+27 (0)13 793 7765
Maputo
Matola LCC
Bidirectional
+25 (0)81 74 7879
Border post The Lebombo border post, just over four kilometers from Komatipoort, on
TWA 09/10 | 2011 – 13
T RANSPORT C ORRIDORS
Plaza
Location
Class 1
Class 2
Class 3
Class 4
(light vehicles)
(medium heavy vehicles)
(large heavy vehicles)
(extra large heavy vehicles)
Diamond Hill Plaza Between Pretoria and Witbank (SA)
R24.00
R34.00
R63.00
R105.00
Middelburg Plaza
Between Witbank and Middelburg (SA)
R40.00
R87.00
R132.00
R173.00
Machado Plaza
Between Machadodorp and Waterval Boven (SA)
R60.00
R166.00
R242.00
R345.00
Nkomazi Plaza
Between Nelspruit and Malelane (SA)
R45.00
R92.00
R133.00
R192.00
Moamba Plaza
At Moamba (MZ)
MT95.00
MT236.00
MT471.00
MT707.00
Maputo Plaza
At Matola near Maputo (MZ)
MT17.50
MT58.00
MT116.00
MT174.00
CLASSES
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
II
22 023
48 990
48 912
45 211
35 498
28 842
31 407
34 042
36 810
40 320
47 003
49 118
III
5 447
12 176
13 089
12 481
14 134
14 471
16 504
18 492
30 004
33 322
26 005
27 175
IV
12 219
31 810
48 244
45 083
52 532
52 037
48 552
70 380
90 339
101 315
143 153
149 595
TOTAL FREIGHT
39 689
92 976
110 245
102 775
102 164
95 350
96 463
122 914
157 153
174 957
216 161
225 888
VEHICLES PER DAY
265
255
302
282
280
261
264
337
431
479
592
619
the South African side, and the Ressano Garcia border post, on the Mozambican side, serve as the gateway between the two countries. And, as most border posts are, this gateway was a major obstacle to the free movement of goods between the two countries. In part, through the consistent efforts of the Maputo Corridor Logistics Initiative (MCLI) in a public private partnership, the authorities of both countries have realised that this is an obstacle and in the way of stimulating mutual economic growth through trade and tourism. The Mpumalanga Freight Logistics Strategy (MFLS) and Transport Focus Workgroup were established to address the issue and a number of problems have been resolved, the biggest of which are: • The bilateral removal of visa requirements between Mozambique and South Africa for one another’s nationals. • The extension of operating hours at the border to 12 hours per day for people and 16 hours per day for goods, with extended hours over traditionally busy periods. • The agreement in principle to establish a One Stop Border Post. For anyone travelling or transporting goods between the countries, a visit to the MCLI’s web site at the following address, http://www.mcli.co.za/mcli-web/mdc/borderprocedures.htm, will give details of what documents are required and the processes involved. CAUTION: If you are travelling from South Africa to Mozambique, be sure to stop at the Komati Oasis (BP garage) a few kilometres from the Lebombo Border Post. Here you will need to get third party insurance (an absolute must) and Mozambican money. Unlike Namibia and Botswana, Mozambicans will not trade in South African currency. CAUTION: When you leave the Ressano Garcia Border Post, the speed limit is 60 km/h for some distance. Once over the hill, be sure to keep to the speed limit as you will be caught and fined.
Table 2 (top) N4 Toll Plazas
Table 3 (above) Moamba Plaza, Mozambique: Freight volume growth
Don’t think you can outwit the Mozambican police! Obey their laws or you will regret not doing so. As Barbara Mommen, CEO of MCLI, points out, road freight movement through the Moamba Plaza in Mozambique, since 2000, has increased 5.7 times. That is amazing growth. But, looking back to 1972, 40% of Gauteng’s exports went through Maputo (then called Lorenzo Marques). That was the equivalent of 17.5 million tons. By 1992, after two wars, volumes had dropped to next to nothing. Now, with 2011 drawing to a close, there is a good chance of making it back to those heyday levels. However, for everyone involved in the development of the Maputo Corridor, this is just the beginning.
Note: 2011 figures are estimates only
Container terminal
Note: Check the exchange rate before travelling. At the moment it’s approximately MT400 for R100
Barbara Mommen, CEO of MCLI The wellconstructed road between Maputo and Komatipoort
Maputo’s container terminal was privatised in 2003. DP World, a Dubai-based company, acquired 60% of the shares while CFM, Mozambique’s national rail carrier, acquired the balance of 40%. Since then, much has been done to expand and develop the harbour’s facilities. One of the most significant was the channel dredging programme, completed in January this year, which increased the draft depth from 9.4 m to 11 m, with the tide. This now allows the harbour to accommodate Panamax size vessels and will see TEU volumes in 2011 exceeding the 143 000 TEUs reached in 2010. The total value of the current investment in the container terminal, give or take a little on exchange rates, is R250 million. Originally, the container terminal was built to handle 120 000 TEUs but, with the upgrade investment, it can now handle 150 000 TEUs. While the container terminal currently operates only one berth (berth 14) of 300 m, this will change. Phase 1 of the expansion programme, between 2012 and 2013, will see capacity increase to 400 000 TEUs. The terminal
TWA 09/10 | 2011 – 15
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T RANSPORT C ORRIDORS currently has five ship to shore cranes (3 x MHC and 2 x QGC) and supporting yard equipment, but this will change too. As part of phase 1, the total quay length will be increased to 600 m, bringing in berths 15 and 16, by 2013, with supporting crane and yard equipment. And it won’t end there. Further expansion of the container terminal will be taken up as volumes and demand increase (graph 1). In addition, an intermodal container depot (ICD) is being built at a cost of about R170 m. Phase 1 includes a bulk slab of 9 000 m², an ‘empty container’ yard with a capacity of 2 475 TEUs, a container wash bay, a container repair workshop and a refer inspection section. This is envisaged
for the backhaul. To date, transit cargo has not been captured by the Port of Maputo to any mentionable extent due to bond lodging costs with the government of Mozambique (Alfandegas/Customs Authority), but that is changing. Maputo’s origin and destination (O&D) cargo growth, a mixture of consumer goods and food items, increased significantly between 2001 and 2010, in fact at a 14% compound annual growth rate (CAGR). It is expected that O&D will continue to increase in the future, given the robust GDP growth of Mozambique’s economy. And, what is also quite significant, is that measurable improvement in port efficiencies have been achieved, as the graphs to the left show.
There is an increasing and substantial demand along the Johannesburg to Maputo corridor
Coal terminal
to be completed by February 2012. Phase 2 includes a ‘full container’ yard with a capacity of 1040 TEUs and a warehouse with a footprint of 11900m². This will be completed by August 2012. On the softer side, perhaps the toughest, customs and bond procedures have been streamlined to ensure efficient clearance for transit cargo transported to and from South Africa. Based on market research, DP World believes that current market realities are working in the Port of Maputo’s favour. Increasing weight and height restrictions on trucks travelling through Durban City are problematic for importers and exporters. The Port of Durban also does not have the capacity to attract significant amounts of transit cargo. There is also an increasing and substantial demand along the Johannesburg to Maputo corridor to use the Port of Maputo instead of Durban due to the cheaper transport costs to and from Maputo, and cheaper port tariffs. The imports of car parts, the exports of cars, stainless steel, ferrochrome ore, cement, fruit and sugar are the targeted cargos. Containerised exports from Maputo are expected to increase. However, exports are currently mostly empties. SA shippers have traditionally been reluctant to export through Maputo due to delays at the border (now resolved) and finding paying cargo
Graph 1 (top) Volume growth Graph 2 (middle) Average lashing and unlashing time per vessel Graph 3 (bottom) Average lashing and unlashing time per vessel Moving mountains
Grindrod acquired the concession to develop and manage Maputo’s coal terminal in 2005. The concession will run to 2043, with the option to extend thereafter. So far, in three phases, the company has expanded the terminal’s capacity to handle six million tonnes per annum. With a draft of 12 m and berth lengths of 210 m, vessels of 85 000 DWT can be accommodated. Now, in an ambitious phase 4, the terminal is to be expanded through the construction of additional berths, stock yards and rail infrastructure, to handle up to 20 million tonnes of coal and 10 million tonnes of magnetite per annum. As a matter of policy, the terminal will accommodate junior miners as well as large established miners. However, to achieve this objective CFM is required to upgrade the railway facilities to accommodate increased service demands that include, inter alia: • improved signalling • the upgrade of all bridges to 26 t axle loads • 100 wagon passing loops/sidings • doubling of the line • electrification of the line. As to rolling stock, it will require investment by Transnet, CFM, coal customers and the private sector to invest in rolling stock to enable: • 14 rakes per day with a minimum of 75 wagons per rake • wagon fleet of 4 000 CCL3s or equivalent • locomotive fleet of 168 CL18E/ CL39s or equivalent. Without a doubt, a significant and positive impact, besides the
TWA 09/10 | 2011 – 17
T RANSPORT C ORRIDORS
The Motola Terminal
contribution to GDP of South Africa and Mozambique, will be the creation of much needed jobs. So far, the pre-feasibility project has been completed and the feasibility study itself is nearing completion. The final terminal footprint will
equate to a total of 120 ha (excluding any reclaimed areas). Besides the construction of quays, a stock yard and railway infrastructure, as already mentioned, it will require dredging of the port, to the quayside, to a depth of 12.8 m.
Sized coal terminal The concession for the sized coal terminal was secured by Grindrod in 2009. It will run until 2015 and thereafter will be extendable for additional five-year periods. Its current capacity is 900 000 t per annum and it has a storage capacity 100 000 t. The quay can accommodate a vessel of 55 000 DWT. Private sector investment in wagons (230 wagons) is however needed.
Roadfreight experts to
ANGOLA
Ship in Maputo harbour
MALAWI
MOZAMBIQUE Full and part loads For competitive rates contact: T +27(0)11 395 3472 F +27(0) 86 661 8414 C +27(0) 82 724 1193 C +27(0) 79 015 9822 E info@namgola.co.za www.namgola.co.za
FTW5064
18 – TWA 09/10 | 2011
T RANSPORT C ORRIDORS
EDITOR’S COMMENT
Hotel Cardoso
THE SAD THING about Maputo is the scars of war. There are no pockmarked buildings, the usual signs of conflict. But, the scars are clearly visible. These are evident from the lack of public expenditure - unpainted buildings, potholes and overflowing dustbins everywhere, especially around the Hotel Cardoso, and general urban neglect. Nonetheless, opportunity abounds – especially in tourism, if the city elders can grasp the vision. Perhaps they do!? Perhaps it’s just the lack of money or an action plan. Perhaps they just need investors. Two things, however, stand out. Mozambicans are a friendly people, courteous to the extreme. And, there isn’t a shred of racism anywhere. Secondly, Mozambique is Africa’s fastest growing economy. Think about it!
Car terminal The current terminal is to be expanded through the construction of additional storage space to handle 167 000 cars per annum, which will be scalable to 250 000 cars per annum. This will provide an immediate, low cost solution to Pretoria-based automotive manufacturers to export their vehicles. However, to make the Port of Maputo’s car terminal a reality, it will require an investment in rolling stock (160 x 6 car payload wagons) by Transnet and/or the private sector, as well as a secure agreement with Transnet Freight Rail on wagon haulage rates and minimum operating parameters. Given that Transnet’s port authority in South Africa has increased tariffs by more than 18%, thereby raising the ire of motor manufacturers, Maputo has to be an alternative. If, however, motor manufacturers do switch to Maputo because of Transnet’s increased tariffs, it will be interesting to see whether Transnet will play ball on this one.
The vision is to develop the Port of Maputo’s container terminal handling capacity to a million TEUs by 2020
Moving forward The vision is to develop the Port of Maputo’s container terminal handling capacity to one million TEUs by 2020. An ambitious programme but, given what has been achieved so far and in the time that it has been achieved, it is not an unrealistic target. In the meantime, a 30-minute truck turnaround time, a below 24-hour vessel wait time and a 24/7 gate availability to receive and deliver containers has been achieved. Maléne Campbell, Dries Hauptfleisch and Hendrik Marx, speaking at the Nelson Mandela Metropolitan University, said, “From the data regarding Africa as a continent, and more specifically Southern Africa, it is concluded that the success
TWA 09/10 | 2011 – 19
of corridors as transport routes and importantly, creators of general socio-economic development, is undisputed.” The Maputo Corridor is certainly proof of this claim. Acknowledgements: Photographs supplied by Solange Santos, Port Maputo and Tony Stone
S UPPLY C HAIN FMCG INDUSTRY ȃ PART ONE
The role of supply chain management This two-paper series analyses the role of supply chain management in the FMCG industry. In part one, FMCG supply chains are analysed from the perspective of processes and typology and the typical issues faced are presented. By Madhu Bala, Dr Shakti Prakash and Dr Dinesh Kumar
T
he second part studies the role of supply chain management (SCM) for general findings in terms of five planning approaches and with respect to the elements, levels, organisational structure, risk management and collaboration. The benefits of using SCM in the fast moving consumer goods (FMCG) industry are also explained.
Introduction Supply chain encapsulates the flow of information and materials/goods between the various different entities, such as customer, manufacturer, supplier, logistics service provider, etc. Often, these entities are legally separated. To co-ordinate and integrate these entities in order to achieve competitiveness is the key driver of supply chains. In addition, delivering the information and materials/goods quickly and efficiently is an important element of succeeding in a market where the supply chains are competing with each other. FMCG supply chains are very responsive and agile; however, with the introduction of elements of globalisation and the use of the latest optimisation techniques, supply chain risks are becoming complex, and this affects the supply chain performance. Supply chain managers are adopting new technologies to manage and minimise these effects.
FMCG industry The FMCG industry is the world’s largest industry encapsulating products and processes that are fast moving, durable and consumed by end consumers. Branding and rapid delivery focus (agile strategy) are two key drivers of this industry.
FMCG characteristics The FMCG/consumer durable industry included all firms that manufactured products
20 – TWA 09/10 | 2011
that were distributed via high street retailers. Figure 1 shows some of the worldwide established FMCG companies. The Confederation of Indian Industry (CII) (2005) defines the FMCG industry as one of the largest industries in the world. It comprises consumer non-durable goods and caters to the everyday needs of the consumer. The product characteristics are unique to the industry as they are non-durable, branded, packaged and consumed every month directly by the end consumer. The main segments of the FMCG industry are: personal care, packaged food and beverage, household care, spirits and tobacco. The published strength, weakness, opportu-
Figure 1 Some of the worldwide established FMCG companies nity and threat (SWOT) analysis for the FMCG industry indicates well-coordinated distribution networks as its strength, while low technology initiatives is a weakness and irregular tax structures and imports is a threat to the industry. In turn, agile and rapid responsiveness, as highlighted by Fisher, Obermeyer, Hammond & Raman (1994), is the key differentiator of the FMCG industry. Joerg (2006) also highlights an efficient customer response (ECR) as one of the main requirements for the FMCG industry.
FMCG supply chains Kumar (2002) states that the supply chain functions of an FMCG firm encapsulate all the end-to-end business functions of an organisation, such as buying, making, moving, storing and selling, as shown in figure 2. The FMCG industry, with its unique set of
characteristics and attributes, is governed by the constraints and interfaces among these internal functions. Similar constraints are identified among the components of the supply chain. Kumar (2002, 2004) states that buying and selling are the key functions of FMCG organisations, while making, moving and storing are less important functions that are normally outsourced. Let us examine this industry in a series of supply chain activities, namely processes, components and typology.
FMCG processes The supply chain processes of an FMCG company are studied in detail below. Procurement process – Buy FMCG very often has a rather simple bill of materials. Instead of having myriad suppliers, only a few suppliers are coordinated. Procurement activities mostly involve standard parts procurement, which are covered by either blanket or standard contracts. Sometimes the area of concern is the central procurement of materials for subcontracted bodies. Production process – Make Because of the simple nature of the production process (flow shops), it consists of a few stages of operation performing on parallel lines. Automation helps in achieving shorter and more reliable lead times and even leads to less manual labour involvement (except the packing stage). Bottlenecks are handled efficiently with trained manual labour as capacity is limited and highly utilised. In some cases, non-core areas of the production process are outsourced. Distribution process – Move and store The distribution channel often consists of three distribution stages. One or more
S UPPLY C HAIN factories supply to a common warehouse while large orders (OEM supplies) are directly shipped from the factory to the customers. Regional warehouses or depots mostly hold the inventories, while transhipment points, holding no inventories, add higher transportation costs owing to higher transport frequency. The transportation activity is even subcontracted to 3PL providers.
supply chains: • Supply chains own various proStandard (raw material) duction plants, including co-manProducts procured and specific (packaging ufacturers and co-packers, which material) increased complexities in the supply Multiple (raw material) chain. Sourcing type Single/double (packaging • Distribution is handled by specialised materials) firms, which increases the pressure Organisation of the on relationships. Transport hauliers, Flow line production process logistic firms and warehouse service Repetition of operations Batch production providers are typically involved. • Wholesalers are involved in the Distribution structure Three to four stages Sales process – Sell downstream end of the supply chain Pattern of delivery Dynamic The set of stock keeping units (SKUs) and usually consolidate the goods Deployment of Unlimited routes (third with low volume, weight and value per of many competing consumer transportation stage) item is really large in the make-to-stock goods manufacturers. Chilled and frozen Loading restrictions (MTS) scenario. And the targets are set The retail sector is pressurising the transports (forecasted) based on the presence of industry to manufacture and supply Relation to customers Stable the goods on the shelves. As products at the lowest possible price and to Availability of future have a typically long life cycle, forecast decrease the response time. The other Forecasted demands is based on huge past data and sales concern with the retail sector is that Products life cycle Several years are most of the times seasonal and the ‘dealer owns brands’. So in a Products sold Standard influenced by promotions. The price sense, retailers are not only the FMCG of the goods and service levels play organisations’ customers, but also Portion of service operations Tangible goods a very significant role in this industry. their competitors. Structural attributes Contents The key (simple manufacturing and Network structure Mixture FMCG typology complex distribution network, integratDegree of globalisation Worldwide Based on the above analysis, the ed distribution planning and master Location of decoupling FMCG industry is characterised by planning, multiple demand priorities, Deliver-to-order points functional attributes applicable to each cost and profit optimisation, fairly disLegal position Intra-organisational partner, entity, member or location of tributing lack of inventory and excess Direction of coordination Mixture the supply chain and also structural inventory, co-product modelling capaattributes describing the structure of bilities, and generating material and Type of information Forecasts and orders relations among its entities; for examcapacity feasible available to promise), exchanged ple, topography and integration. This and basic (multi-level regional distribuTable 1 is explained in table 1. tion centre, distribution centre and plant network, flexible Showing Table 1 also confirms that FMCG supply chains use comhorizon and time buckets including days, weeks and months, the complex plex distribution networks. It is also established that FMCG distribution requirements planning, layered planning, invensupply chain organisations could use many different combinations for the tory planning, inventory bands-based allocation, multiple distribution buying function, but that this freedom could raise concerns transportation lanes and modes, lot sizing, periodic replennetworks among supply chain executives. Another two important ishments, product substitution, shipment calendars, firm
Buy
Functional attributes
Make
aspects identified are the types of products involved (including their life cycle and shelf life) and the sharing of information among the various supply chain entities.
Issues faced by FMCG supply chains The focus of FMCG supply chains is on reducing costs (lean strategy) and improving efficiencies within the buying, distribution and selling functions. Also, retailers govern the selling function in this industry. Kumar (2009) highlights the issues faced by the FMCG
Contents
Move
Figure 2 The FMCG supply chain process
Store tore to orre o r
Sell
schedules, warehouse storage constraints, warehouse handling constraints, co-production, alternate bill of material and raw material constraints) requirements for SCM are unique. Based on the above analysis and SCM requirements, the FMCG industry displays a set of supply chain setups and complexities that are driven by the nature of the product and the supply chain architecture. The second part of this series addresses the role of the SCM to address the identified issues for the FMCG industry.
TWA 09/10 | 2011 – 21
A DVERTORIAL
Namibie Multi Loads AS A SPECIALIST in cross-border trans- emphasis on quality. Regular vehicle inspections and port throughout the African subcontinent, high standards of equipment ensure that goods arrive Namibie Multi Loads is a preferred transporter of at their intended destination in the same condition they goods for a variety of companies. Never content left the premises of customers. to rest on our laurels, we're constantly looking to provide workable transportation solutions and OUTLOOK & VISION have the capacity to take on new business with Despite the global economic slowdown and its eơect immediate eơect. on the South African economy, we had a substantial inOur in-depth knowledge of all aspects relatcrease in revenue and we are assured that the same will ing to cross-border transport has given us strong apply for the coming year. The company has adapted presence in the Angola, Namibia and Zambia well to changes that we faced and is well positioned for transport market in which we are a key player. sustainable growth. In a business where time is of the essence, we oơer an exclusive, reliable, and eƥcient HOLDING COMPANY service, priding ourselves on honesty and inNamibie Multi Loads (Pty) Ltd is a wholly owned subsidiary of tegrity; we ensure the safe and timeous arImperial Logistics. Imperial Logistics is the largest land-based rival of goods. Our ƪeet consists of 38 trucks logistics provider in Southern Africa, providing integrated soluand we’ve got 51 trailers. On any given day tions to a broad range of blue-chip customers. Imperial Logistics we’ve also got about 15 sub contractors is engaged in contract logistics, delivering complete logistics sodelivering loads on our behalf. Complelutions, warehousing, shipping, trucking, container handling and menting our punctually, we place a strong various related value-added services.
Manage g rs Bobbyy du Pre Preez ez Da ie Gru Dan Grunde ndelin ling g Ryno Fourie Directors Wilmar Nieuwoudt Pe ie Bann Pet
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When you're looking for a solution-orientated approach to your crosss-border transport requirements, i llook k no further than Namibie Multi Loads
22 – TWA 09/10 | 2011
R EGIONAL F OCUS Bay of Luanda
DRC
Retail opportunities abound Angola, like many other countries that have emerged from decades of civil conflict, is a land of opportunity, especially for South African business.
A
little known fact is that Angola was not a colony of Portugal but rather a colony of Brazil, which, paradoxically, was a colony of Portugal. Located on the west coast of Southern Africa, Angola achieved its independence after a protracted war of liberation from its colonial masters on November 11, 1975. Then, following a devastating 15-year civil war, peace was finally reached in 1990 and the process of rebuilding its shattered economy began. Today, Angola is a growing economy, having achieved an average growth rate of 8.5% over the last 12 years. With a land area of 1 246 700 km2, just slightly bigger than South Africa, Angola has a population of around 13.4 million people. The country has vast mineral and petroleum reserves and a 4 837 km borderline with neighbouring Congo-Brazzaville in the north, the Democratic Republic of Congo (former Zaïre) to the north and east, Zambia to the east and Namibia to the south. It has an Atlantic Ocean coastline of 1 650 km and three ports – its capital Luanda, Lobito, and Namibe.
Transportation According to the most recent African Economic Outlook report, the revitalisation and upgrading of Angola’s rail and port infrastructure is a priority in the transport sector. Work is ongoing although progress has been slow. Completion of the Luanda-Malange railway, connecting Angola’s capital with the country’s northern interior, has suffered further delays. The global economic downturn severely reduced financing for the project, and it is not expected to
become fully operational until the second half of 2011, once a series of technical, operational and administrative issues have been overcome. The total transport expenditure planned in 2011 is close to US$ 2.7 billion (5.8% of the national budget). With many large investments taking place in transportation and roads, significant gains could now be made from better management and co-ordination of the network, including an improvement in the
Many large investments are taking place in transportation and roads, including an improvement in transport services quality of transport services, the appropriate level of tariffs and specific taxes for efficient multi-mode transport development. While initial steps are being made in that direction, there is still a complete absence of overall traffic planning. Mass transport systems, though developing, are still underfunded.
Seeing the opportunities The Shoprite (Checkers) Group, seeing the opportunities in fast moving consumer goods in Africa, opened its first store in Luanda in 2003. Offering a wide range of quality products
and excellent service, it was an immediate hit, as it has been in South Africa. Today, Shoprite has three stores in Angola – the Palanca and Belas stores in Luanda and the Lobito store in Lobito. Shoprite’s operational strategy put its brand in an excellent position to expand into Africa, and it has. Its store population, outside of South Africa, has grown from one store in Lusaka, Zambia in 1995, to 71 stores in 16 African countries today. The South African operation comprises 309 Shoprite stores. Shoprite draws its customers from the lower to middle income consumers in the living standard measurement 4 to 7. In South Africa, Shoprite has two store formats, namely supermarkets and large-format superstores. With its promise of lower prices, always, Shoprite has attracted over 17 million shoppers in South Africa alone. And, by buying in bulk, it will continue to pass the savings onto the customer and will no doubt attract many more millions of shoppers in Africa, in Angola among other countries. Key to this is the transportation of goods. So far, South African transport companies have stepped up to the plate. Yet, opportunities abound.
TWA 09/10 | 2011 – 23
R EGIONAL F OCUS DRC
PMAESA studies cruise tourism potential T
he European Union has funded a threemonth study to promote cruise tourism within the Eastern and Southern African region under the auspices of the Ports and Marine Authority of East and Southern Africa (PMAESA). The study is being undertaken by Consult International, a company being represented by Michael Langstaff and Chris Landmann, both with over 30 years’ experience in developing countries: development projects, organisation of investment conferences and facilitation of EU-Africa business links, for the EU, World Bank and UN specialised Agencies. According to Jerome Ntibarekerwa, PMAESA’s secretarygeneral, the sector has great potential, cultural richness, diversity, natural beauty and wonderful weather that need to be exploited. The purpose of the policies and regulations is to provide uniformity in service provision in the region. Standards and clear guidelines with structures need to be developed to coordinate the activities of the sector in the region with a view to promoting cruise shipping. Upon completion, the project is expected to help promote the cruise industry in the region
and strengthen partnership with European cruise. Additionally, information systems will be strengthened among the stakeholders, support facilities and infrastructure, such as airports, hotels, transportation and security, smooth
Cruise tourism is the fastest growing sector in the tourism industry handling of the vessels will be improved, knowledge of the cruise sector will be promoted and there will be the possibility of having outbound travellers from the region. Cruise tourism is the fastest growing sector in the tourism industry. The growth in cruise tourism has been exceptional, from 500 000 passengers in the 70s to 12.8 million in 2008. The potential in the cruise industry is huge and is currently characterised by the vast
untapped regions, development of mega ships and expectations. Growth in the industry is expected to continue soaring: according to Passenger Shipping Association (PSA), the sector will handle about 20 million passengers by 2011, to raise to 30 million by 2020. Cruise companies are looking for new ports of call in different parts of the world to add value to their packages as they endeavour to attract more business. Africa offers enormous untapped potential despite the vast attractions as it commands only 0.9 % of the cruise market share in the world. The PMAESA region, which is well positioned for all-year-round cruising, has only a 0.05% share. The beauty and attractions found in the Indian Ocean region are second to none and include the Nubian Desert in the north, snowcapped Mount Kilimanjaro, the highest point in Africa, and the Great Rift Valley. There are the great plains of East Africa, including Serengeti, the slave markets of Zanzibar, the River Nile and Lake Victoria. And South Africa’s Table Mountain and Robben Island and many game reserves lie in close proximity to ports in the PMAESA region.
DRC
La Route Rouge
T
by the Reverend Dr Robert Walters, Friendly Planet news
he Red Road runs north of Lubumbashi up into the mountains of the Katanga Province of the Democratic Republic of the Congo. Even though it is an important part of the national highway system, the road is impossible in the dry season and impassable in the rainy season. The road that runs west and east from Lubumbashi to Kolwesi, along which the huge mine transports travel, is repaired on an on-going basis. The road that runs north and south has been allowed to deteriorate to its present state. The mountain passes are rocky and dangerous for large trucks, which largely get stuck in the mud of the river beds.
24 – TWA 09/10 | 2011
Passenger cars can no longer make the journey. For personal transportation, nothing less than a Land Rover or Land Cruiser is up to the challenge. The big trucks, carrying every kind of merchandise for the towns up-country, take a pounding until such time as they break down. The road is blocked by trucks with broken axles, failed transmissions and flat tyres. There are also trucks which are buried up to their frames in mud. Detours are cut into the forest to get around trucks that will wait for months for repairs or for the mud to dry enough to get going again. A person with a small business may buy product in Lubumbashi and wait six months for it to arrive in Mitwaba or Monono. The road is called La Route Rouge because it was along this road that the marauding gangs of foreign armies, government soldiers, rebels and war lords raided and burned villages, raping and torturing terrorised villagers as they went. The road ran with the blood of the innocents (and coincidentally, the clay-sand mix of the soil actually makes the road red in colour). La Route Rouge forms one leg of the region known as La Triangle de la Mort, the Triangle of Death. Acknowledgement: The Friendly Planet Mission operates primarily in the Democratic Republic of the Congo (DRC), supporting the work of local United Methodist leaders.
The logic will amaze you! Junior Smith Trucking has been privately owned and operated since 1983. After 28 years it is still thriving on excellence and outstanding performance. The company is renowned for their passion for trucks, their loyalty to customers and their logical and effective approach to moving cargo across South Africa and Africa. The company has formed a sound client base and strives to bring the best continuous Transport services to all of its clients. We are particularly proud to be of service and sharing the expansion process of Shoprite Checkers into Angola and Mozambique since 2009.
Let us carry your load
t (021) 872 0562 f (021) 872 5162 | after hours: 082 619 2778 Distillery Street, Paarl Junior Smith junior@jstrucking.co.za Adri Loots (Operational Manager for Angola and Mozambique) adri@jstrucking.co.za | 082 619 2778 Freddie Louw (General Manager) freddie@jstrucking.co.za | 0832351181
T ECHNICAL I NSIGHT
Stainless steel cooling tanks at one of the bigger dairy farms
The milk run
programmes and sanitary milking procedures to keep his cows healthy, each cow should produce up to 65 ℓ of milk a day. And so begins the process of delivering fresh milk, literally to your doorstep. The first step in the process is to milk the cow. Today’s vacuum-driven milking machines simulate a calf suckling. The cluster, the rubber liners that fit tightly around the cow’s four teats, extracts the milk into a collection bowl, from which the milk is moved to a cooling tank for storage. The purpose of the cooling tank is to cool down the milk as fast as possible, preferably to about 4°C within 2.5 hours after milking. This is a critical step in the process as it prevents bacteria growth and the milk going sour. The importance of this step cannot be stressed enough. A quick read
The slow, stop-by-stop, mechanised routine known as the milk run has nothing to do with World War II bomber missions or Miami Vice. It’s about real milk, and you. By Tony Stone
E
very day, we walk into our local supermarket or corner café, buy a newspaper, a loaf of bread and a carton of milk; never giving thought to how the milk fresh was transported from the farm, packaged, and delivered to the shop fridge for our convenience. In this short journey, we place the fascinating world of milk transport under the microscope. It all begins at the milk factory, the udder. The product of grass and water, and a little of nature’s special ingredient, peace and tranquillity, quality milk production starts with healthy cows. Sticks and stones,
26 – TWA 09/10 | 2011
stressful environments, diminish milk output. If a farmer provides comfortable housing, nutritious feed, preventive health-care
of the fact box, 'Dangers of unhygienic milk processing', explains clearly why this step is necessary.
Duties of the driver At a predetermined time, the milk tanker arrives at the farm to collect the milk. The milk processor – e.g. Clover, Nestlé, Douglasdale Dairy – is governed by law: regulations R1256 and R1555. If the milk’s temperature is not what it should be, it will be rejected by the milk procurement officer Dairy cows need peace and tranquillity to be productive
T ECHNICAL I NSIGHT – in this case the driver. Herein is a challenge. The driver – who is fully trained in handling a milk tanker, the collection of milk and how to handle people (farmers) – is also bound by regulation to perform tests for quantity, temperature and rancidity, including the Alizarol Test and the Clot-on-Boiling Test. It is within the authority of the driver to accept or reject a batch of milk based on the outcome of these tests. Detailed records are kept by the driver. On loading, and on completion of the milk run, the milk will be delivered to a depot or a factory, at which time more extensive tests are carried out before unloading the milk. These tests include a check for the presence of antibiotics in the milk, and for the presence of water. Sadly, some producers do try to pull a ‘fast one’. Two test processes are carried out, one of which can take up to three hours. As such, this requires the milk tanker to be capable of maintaining the required temperatures while the milk is being tested.
Milk tanker specifications Milk tankers are manufactured in various combinations of rigid tanker, drawbar tanker, semi-trailer or semi-trailer and drawbar tanker to South African National Standards (SANS) specifications by ISO 9001-certified manufacturers. The tank itself is manufacture from high-quality stainless steel (18% chromium, 8% nickel) that offers a hard polished surface that is able to withstand chemicals and rust. In terms of Regulation 1256, the design and construction of a milk tanker must feature an incline leading to the outlet pipe so that the total contents of the tank can drain out of the tank while the vehicle itself is in a horizontal position. A manhole must be fitted on top of the tank, flanged upwards with a dust-proof lid, through which the inside of the tank can be inspected after the tank has been washed and disinfected. This is to ensure fats and milk residues are dissolved and removed, and that bacteriological counts on surfaces coming into contact with the next load of milk do not exceed 10 bacteria per 100 mm2. The milk tanker must be insulated in such a way that the temperature of the milk will not increase by more than 2°C every 48 hours. To this end, the milk tanker must be fitted with refrigeration capabilities and equipped with the appropriate temperature-measuring and control devices that are accurate to 0.5°C. Electric, hydraulic or petrol/ diesel engine pumps, valves, flow regulators and flow meters, of food-grade quality, and easily disassembled for cleaning, complete the specification. Partitioning between the pump motor (if petrol or diesel) and the pump and valves, will prevent any risk of oil contamination. Milk tankers range from 10 000 to 32 000 ℓ in volume, and are usually divided into compartments to improve the reception of good raw milk. Once the raw milk arrives at the dairy-produce manufacturer, it is pasteurised, separated into various categories of milk and cream, processed and packaged as either raw milk, cream, yoghurt, butter or cheese. These end products are immediately packed into crates and refrigerated, awaiting transport either that day or the following day or, as in the case of cheese, when they are ready for delivery.
Milk tankers are robust and designed for offroad use
The Clover model Not too long ago, and coming from an era of milk and cream in cans, South Africa had many small milk producers and factories, even in the deep rural areas. Manufacturers soon realised the need for economies of scale, cost management and proper route planning to ensure efficient milk collection at the lowest-possible cost while at the same time ensuring good-quality milk. As a result, a number of factories were closed down and those remaining were spread over a wider area. Holistic route planning became more and more important. Clover partnered with e-Logics to develop a holistic planning model, called Clover Automated Milk Procurement Planning System (CAMPPS). Accumulated experiences, as well as world-benchmarked principles learned from Finnish company PlaNet Logistics, were
DANGERS OF UNHYGIENIC MILK PROCESSING WARM MILK supports the growth of a variety of bacteria, including one pathogenic strain, which includes: • Acid-forming bacteria, such as Streptococcus lactis, Str. Faecalis and Lactobacilli. These ferment lactose, forming lactic acid, and lead to the formation of curd. • Alkali-forming bacteria, such as akaligenessp, achromobacter and aerobic spore-forming bacilli. These render the milk alkaline. • Gas-forming bacteria, such as coliform bacteria including Coliform peifringens and Coliform butyricum. These produce acid and gas. • Proteolytic bacteria, such as Bacillus subtilis, Bacillus cereus, Proteus vulgaris, Staphylococci and Micrococci. These bacteria are responsible for proteolytic activity. • Inert bacteria, such as pathogenic bacteria, and Cocci, which do not produce any visible change in the milk but, depending on the strain, may or may not be harmful to humans. Diseases and infections transmitted through milk include infections of animals, which are transmitted to humans. These include tuberculosis, brucellosis, streptococcal and staphylococcal infections, salmonellosis fever, anthrax, leptospirosis, cowpox and milker’s nodes, foot and mouth disease, tick-borne diseases and viral encephalitis. Infection due to ingestion of milk contaminated with excreta of small mammals include sStreptobacillus moniliformis, C. jejuni and Y. enterocolitica. Lastly, those primarily human infections that are transmitted through milk include S. typhi, Paratyphoid bacilli, Cholera vibrio, Shigella, E. coli, Streptococcal and Staphylococcal infections, Tubercle bacilli, hepatitis virus and Diphtheria bacilli.
TWA 09/10 | 2011 – 27
T ECHNICAL I NSIGHT captured in this highly effective strategic and tactical tool. An additional tool (CCLOG), a comprehensive decentralised scheduling tool, was a natural outflow of CAMPPS and is currently in its final test phase. This will be rolled out to the different regions in the first half of 2011. Measurements – such as the litres of milk transported per kilometre, litres of milk transported per vehicle per day, use of available tanker capacity, as well as time utilisation of vehicles – became part of Clover’s milk procurement department’s vocabulary. These concepts play a major role in the ongoing focus on productivity enhancement. Smaller tankers made way for tankers that could carry a much bigger load over the same distance, which brought results. Although inflation takes its toll every year, milk procurement was successful in keeping its cent per litre costs on the same level for quite a number of years. Although milk procurement makes use of external contractors for some of its long-distance loads, by far the majority of its work is accomplished with vehicles leased from Eqstra. Within Clover, milk procurement is tasked to transport all raw milk, as well as by-products such as whey, buttermilk and cream in bulk. Milk procurement drivers are selected according to strict criteria and are then trained on a continuous basis. The most important training outcomes are vehicle handling, handling, quality assurance and sampling of raw milk in bulk, and how to liaise with customers in a decent manner. Milk procurement leases approximately 260 vehicle units
Hygienically clean milk reception is crucial
Refrigerated trucks, quite literally fridges on wheels, deliver dairy products to retail outlets throughout South Africa
from Eqstra and covers more than 17 million kilometres per annum to transport more than 1 billion litres of product in total. More than 7 million litres of diesel are consumed during this operation. In the early days, 40 ℓ per producer per day (two cans) was a lot of milk. Nowadays, producers supplying 10 000 ℓ/d, and more, are not unusual. Current technology used to determine the volume of milk on a farm takes a representative sample of the milk and determines the temperature of the milk. As far as Clover is concerned, this is just not practical or good enough anymore. For this reason, the company has joined forces with Alfameg to develop electronic tanker equipment that will be able to: • determine the volume of milk collected on farm accurately via flowmeter technology • sample the milk electronically relative to its flow as it is collected • determine the correct temperature of the milk electronically before it is picked up, and as it is pumped into the tanker. Although this kind of equipment is used extensively in Europe, Australia, New Zealand and other countries around the globe, this will be a first for South Africa. If everything goes according to plan, all collection vehicles will be fitted with this equipment by the end of December 2011 and another new era in South African dairy transport will begin.
Road safety Drivers, in accordance with labour law, may not drive for periods longer than 11 hours. This includes two hours' overtime. However, some incidents of law-breaking do occur. In 2009, at least two accidents involving milk tankers occurred and, as recently as October 2010, a milk tanker driver was killed near Mphophomeni close to Howick. Newspaper reports stated that he died in a pool of milk. KwaZulu-Natal, especially the Midlands, is not the most truck-friendly area in the country. Steep hills, muddy tracks and misty conditions make it difficult terrain for most trucks and drivers. Overworked drivers, under these conditions, are a health and safety risk, not to mention the probable cause of financial losses. But who is really at fault?
Summing up With 20 000 people per day coming into the world, the market for dairy products can and will only grow. This is an opportunity for South Africa. By comparison, New Zealand, a country that fits into the equivalent area of KwaZulu-Natal and the Eastern Cape, produces 2.3% of the world’s entire production of dairy products. South Africa produces 0.4%, with virtually no exports. If ever there was a time to advantage of an opportunity, it is now.
28 – TWA 09/10 | 2011
3RD ANNUAL
ROAD SAFETY SUMMIT 2011 IMPLEMENTATION STRATEGIES TOWARDS EDUCATING, ENFORCING, EVALUATING & ENGINEERING DATES: 15, 16 & 17 NOVEMBER 2011
VENUE: CSIR INTERNATIONAL CONVENTION CENTRE, PRETORIA
CONFIRMED EXPERT SPEAKERS: Desbo Sefanyetso MEC NORTH WEST DEPARTMENT OF PUBLIC SAFETY Daniel Manganye Commissioner Tshwane Metropolitan Police TSHWANE COMMUNITY SAFETY DEPARTMENT Ivan du Plessis 6HQLRU 3URWRFRO 2I¿FHU EKURHULENI METROPOLITAN MUNICIPALITY Howard Dembovsky National Chairperson JUSTICE PROJECT SOUTH AFRICA
INTERACTIVE WORKSHOPS ON: The Effects Of Alcohol On Road Safety Facilitated by: Layla Jeevanantham $OFRKRO 3URJUDPPH 6SHFLDOLVW SOUTH AFRICAN BREWERIES LTD (SAB LTD) Preliminarey Subtance Investigation & Prosecution Facilitated by: Lobo das Neves Owner, INTERNATIONAL LAW
ENFORCEMENT INSTITUTE Limiting Your Liability As A Law Enforcer Facilitated by: Benjamin van Rooyen Law Enforcement Specialist
LYCEUM COLLEGE Feedback & Recommendations Will Be Forwarded To National Department Of Transport & Other Authorities After The Conference
Researched & Developed By:
Platinum Sponsor:
Werner Vermaak Head Of Communications ER24
Dr. Vincent Maphai Director Of Corporate Affairs & Transformation SOUTH AFRICAN BREWERIES LTD (SAB LTD) Gerrie Gerneke 'LUHFWRU 7UDI¿F 5RDG 6DIHW\ JOHANNESBURG METROPOLITAN POLICE DEPARTMENT Wendy Watson Owner WENDY WATSON CONSULTING Kenneth Africa &KLHI 'LUHFWRU 7UDI¿F 0DQDJHPHQW WESTERN CAPE DEPARTMENT OF COMMUNITY SAFETY AJ Mthembu President SOUTH AFRICAN NATIONAL TAXI COUNCIL
Benjamin van Rooyen Law Enforcement Specialist LYCEUM COLLEGE Lobo das Neves Owner INTERNATIONAL LAW ENFORCEMENT
Lumka Wanda Executive Director LARIMAR
INSTITUTE
KEY ISSUES FOR DISCUSSION INCLUDE: An overview on the UN Decade of Action on Road Safety Evaluating the effects of corruption on law enforcement Recognising the value of the AARTO Act in achieving road safety goals Examining the role of the media in promoting responsible e behaviour on our roads Road safety strategies for fleet management & e–tolling Transforming public transport to be reliable & safe for all Effective prosecution of offenders Reaching stronger collaboration between law enforcers and road safety stakeholders both in the public & private sector 2QOLQH 3DUWQHU
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R OAD S AFETY
Check yourself before you wreck yourself That old cliché ‘prevention is better than cure’ is not only relevant to medical issues, but also to road transport, particularly for trucks and truckers.
C
onsidering the long distances that truck drivers do, it is important that the trucks are properly checked before they take to the road. Not doing a safety inspection before a trip is not worth the potential loss of lives that could occur as a result of a fault that could easily be picked up and prevented with regular pre-trip inspections. One of South Africa’s truck insurance underwriting managers has embarked on a drive to inform truck operators of steps and precautions they could take to avoid accidents or breakdowns when on the road. This will make South African roads better, not only for the commercial transport community, but for all road users. Local insurance underwriting boffin Chris Barry says, “In order
to protect the lives of all road users in this country, and to minimise costs, driver downtime and increased insurance premiums for your clients, I would urge that operators institute complete pre-trip inspection procedures before each truck’s departure.” Barry recommends that they get these checks done by trained staff; however, there are a few self-checks that you should encourage your clients to do.
Stop! Check the brakes • When starting the vehicle, make sure the air pressure builds up to the maximum. • Switch off the engine and ensure the air pressure remains constant. • Hold down the brake pedal and the pressure should drop slightly and then remain
Steps and precautions to avoid accidents or breakdowns when on the road constant again. • Switch the truck on again and pump the brake pedal until the pressure drops to half – ensure that the low pressure indicator warns you of this pressure drop. • The pressure should adjust and recharge to maximum again. • Drain the air tanks daily. • Have your brake adjustment checked weekly by an authorised centre.
Tired tyres? • Have the tyre pressure adjusted to the
30 – TWA 09/10 | 2011
particular vehicle specification, taking into account the load being carried. • Tread pattern must be consistent over the entire tyre and the depth must be no less than 1 mm. • Every axle must have tyres of the same size and type. • Dual tyres must not make wall contact. • Both tyres on a dual wheel must make contact with the ground when the vehicle is on a flat surface without a load. • Check tyres frequently for lumps, cracks and bulges. Make sure there is nothing obstructing the dual wheels.
Steer yourself to safety • Ensure your steering operates freely from lock to lock. • The power steering reservoir must be full. • Check all pipes for leaks or damage. • Check the undercarriage of the vehicle for oil or fuel leakages frequently. • The steering wheel must not be cracked.
Working windscreens, windows and wipers • It is un-roadworthy to have a cracked or clouded windscreen that obstructs the driver’s view. • Make sure there are no cracks in side windows that obstruct the view in the left rear-view mirror. • Your vehicle must be fitted with operating windscreen wiper blades.
Let there be light • All lights must be working at all times. • Make sure all reflective tape, reflectors and chevron boards are clean and easily visible. • Ensure that you have warning diamonds on board and that they are displayed when necessary.
What a body • Bolt-on items, such as bumpers, bars and mirrors, need to be correctly fastened and secured. • Do not overload overhead storage racks. • Make sure all emergency exits are clearly marked. “Safe vehicles result in safer roads for everyone, so ensure your clients have safety checks regularly, over and above standard roadworthiness procedures, to avoid unnecessary accidents, increased premiums and unnecessary costs,” concludes Barry. Acknowledgement: Heavy Vehicle Underwriting Managers
Commercial
TRANSPORT MONTH October 2011 Mr Sibusiso Ndebele, minister of transport
T
ransport is a means to move goods and people from point A to point B in a safe, efficient, affordable and sustainable manner. The October Transport Month 2011 programme provides an annual opportunity to focus the attention of the country on issues of transport and this year we focus on job creation and service delivery. In the 2011/12 financial year 68 675 jobs will be created through S’hamba Sonke. This ring-fenced conditional grant will focus on the following areas: • fixing potholes on our roads • creating access to schools and clinics and other public facilities • the rehabilitation of key arterial routes that support the rural economy through labour-intensive projects • prioritising the use of labour absorptive systems, including a 'know your network' programme. Public transport The passenger rail industry continues to face a few challenges, one of which is the reliability and availability of infrastructure. The Department of Transport, through PRASA, is investing large amounts of money to address these problems. The focus of optimising asset value is on the investment in infrastructure assets based on the Rail Plan priorities and the Priority Rail Corridor strategy as approved by Cabinet in 2006. The Priority Rail Corridor strategy focuses the rail industry resources on those corridors or routes where rail has a clear comparative advantage. A significant proportion of the existing rolling stock is due for de-commissioning between 2013 and 2015. PRASA will spend R97 billion over 18 years on the purchasing of new rolling stock. This programme will create an estimated 100 000 jobs and develop skilled and semi-skilled personnel in the respective areas. Decade of action for road safety 2011 - 2020 Furthermore, OTM 2011 will highlight road safety in South Africa seeking to find common solutions to the harrowing deaths occurring ever so frequently on our roads. Approximately 14 000 people are killed on our roads every year, 1 000 every month, 250 per week and 40 every day, costing at least R60 billion per annum. We will focus on the United Nations for its efforts to place road safety on the international platform, and its role in supporting the implementation of the Decade of Action for Road Safety 2011-2020. We launched the new National Rolling Enforcement Plan (NREP) on the 1 October 2010, committing no less than to stop and check 1million vehicles and drivers every month. In addition, we have included climate change as in November South Africa hosts COP 17 in Durban. As one of the chief contributors, transport remains one of the most critical players in efforts to mitigate climate change.
Occupational Health, Safety, Environmental Consultants, Risk Assessors and Training Specialistss * Occupational Health, Hygiene Evaluations & Workplace Stressors Audits and Assessments * Training - Occupational Health, Hygiene, Environmental and Safety * Food Safety Management * Major Hazard Installation Risk Assessments * Occupational Heath and Safety Legal Compliance Audits (OHSAS 18001) * Stack Emissions (Isokinetic Sampling) * Vehicle Emissions and Noise Assessments * SHE Risk Assessments
SHIP
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Approved Inspection Authority Department of Labour: Accreditation Number Cl 033 OH
TWA 09/10 | 2011 – 31
P ROJECT O PPORTUNITIES
BURKINA FASO Project
Burkina Faso Donsin Transport Infrastructure Project
Description
The project will include: • construction of road infrastructure to connect Ouagadougou to the planned Donsin Airport • technical assistance, including installation of a public private partnership (PPP) framework to develop and operate the Donsin Airport • project management.
Status
Planning. Loan decision scheduled for October 2012
Funding
International Development Association (IDA) of the World Bank
Implementing agency
Maîtrise d’Ouvrage de l’Aéroport de Donsin (MOAD) Tel: +226 5033 1004 • Fax: +226 5032 4817
GABON Project
Road Infrastructure Project
Description
The project will seek to reduce congestion on Libreville’s only road outlet to the rest of the country and to improve road maintenance efficiency. This will entail widening and reinforcing the 10 km road outlet from Libreville, from the current single two-lane carriageway to a fourlane dual carriageway. In addition, a lorry park will be constructed and a market to accommodate vendors who will likely be displaced from the existing road.
Status
Planning
Funding
International Development Association (IDA) of the World Bank
Implementing agency
Ministry of Public Works and Equipment Tel: +241 722 209 • Fax: +241 722 342
KENYA Project
Jomo Kenyatta International Airport Project
Description
Bids are invited for the financing, design and construction of a new terminal building and associated works at Jomo Kenyatta International Airport. The new complex will comprise: • a terminal building with a floor area of about 178 000 square metres on four levels conceived as a hub terminal • 50 international check-in positions • 32 contact and 8 remote gates • an apron with 45 aircraft stands and linking taxiways (paved area: 950 000 m2) • landside and airside roads and associated utilities.
Status
Tendering. Deadline for submissions: 21 September 2011
Funding
As proposed by project developer
Implementing agency
Kenya Airports Authority Tel: +254 020 825 400 • Fax: +254 020 822 078
MADAGASCAR Project Description
Transport Project The project will include: • rehabilitation of the Northern Railway Network, including: rehabilitation of 70 km of rail track, construction of rail access sidings and rehabilitation of metallic bridges • installation of mobile weighing facilities to preserve road assets • construction of jetties • urban road works, including rehabilitation of tunnels.
Status
Planning
Funding
International Development Association (IDA) of the World Bank
Implementing agency
Ministry of Public Works and Meteorology Tel: +261 20 222 3215 • Fax: +261 20 222 4321
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P ROJECT O PPORTUNITIES
MAURITANIA Project
Nouakchott Port Development Project
Description
The project involves the extension of the port of Nouakchott, while improving the environmental impact of the port’s initial construction and development. Components include: • construction of a container terminal • construction of new quays specifically aimed at oil, bulk and general cargo traffic.
Status
Planning
Funding
International Development Association (IDA) of the World Bank
Implementing agency
Port Autonome de Nouakchott (PANPA) Tel: +222 525 3859 • Fax: +222 251 794
TANZANIA Project
Transport Sector Support Project
Description
Contractors are invited to tender for the rehabilitation and extension of the Zanzibar International Airport. Works include: • apron extension and construction of new taxiway link • rehabilitation of the existing apron • rehabilitation and widening of taxiways A and B • extension of taxiway C.
Status
Tendering. Deadline for submissions: 11 October 2011
Funding
International Development Association (IDA) of the World Bank
Implementing agency
Ministry of Infrastructure and Communications (Zanzibar) Tel: +255 24 223 2841 • Fax: +255 24 223 3674
TANZANIA Project
Transport Sector Support Project
Description
Contractors and consultants will be sought to carry out the following tasks: • rehabilitation of the Korogwe-Same road (172 km) and the Arusha-Minjingu road (98 km) • supervision services for the above contracts • preparation of design and bidding documents for the rehabilitation of a further 911 km of paved trunk roads • paving and rehabilitation of runways and aprons at the Bukoba, Kigoma and Tabora airports • feasibility studies for potential PPP projects and transaction advisory services.
Status
General procurement notice issued. Specific procurement notices will be issued in due course
Funding
International Development Association (IDA) of the World Bank
Implementing agency
Tanzania National Roads Agency Tel: +255 22 215 257 • Fax: +255 22 215 002
UGANDA Project
Second Transport Sector Development Project
Description
The project will include investments in urban transport and the rehabilitation of national roads on critical road corridors.
Status
Planning
Funding
International Development Association (IDA) of the World Bank
Implementing agency
Uganda National Road Authority Tel: +256 41 423 2814 • Fax: +256 41 423 2807
NB: Projects with imminent closing dates for submission of bids are listed to alert readers to subcontracting opportunities.
TWA 09/10 | 2011 – 33
P EOPLE D EVELOPMENT
Shipping’s new future Three Durban women have made history by becoming Africa’s first black female marine pilots to obtain an open licence that enables them to navigate ships of any size and type into South African waters.
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ot only are Precious Dube, Bongiwe Mbambo and Pinky Zungu three of only five female marine pilots in South Africa, but their open licence gives them authority to guide anything from the very smallest vessels to the biggest supertankers and container ships into port. The three were among the earliest development candidates introduced by Transnet National Ports Authority in the late 90s to encourage more black participation in the country’s ports. Today, the majority have worked hard to achieve success in senior positions such as harbour mastering and port captaincy. Tau Morwe, chief executive of Transnet National Ports Authority, said the achievements of the three illustrated the successes of
and we are geared for even greater success stories like this,” he says. Women are now found across all levels of the country’s maritime sector, from crane operators to senior executives. Dube, a 30-something year old from Inanda Newtown, was the first female to qualify with
South Africa is leading the pack in terms of equity and transformation in the maritime field an open licence and says she was very excited when told of her historic achievement. She adds that she is used to being quizzed about her experience as a pilot. “The captains
Precious Dube (left) and Pinky Zungu (right) are two of the three women from Transnet National Ports Authority to qualify as Africa’s first black, female open licence marine pilots. The third, Bongiwe Mbambo, was absent when photographs were taken
the port authority’s programme of transformation and employment equity. “The maritime sector used to be one that was closed off to the historically disadvantaged, including women, but this is changing
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of foreign ships can be very sceptical when you’re a woman because it’s not common for them to see a female marine pilot, although I’ve heard there are a few in the United States and possibly Australia.
“But once you exchange information with the captain and make him feel confident that you know the port like the back of your hand and can get his ship into the port safely, you win him over easily enough,” she says. Mbambo, 29, is originally from Esikhawini on the north coast of KwaZulu-Natal, but now lives in Glenwood, Durban. She laughs when she recalls the amazement of the captain of the first vessel she guided in after qualifying as an open licence pilot recently. “The captain actually took photographs and recorded a video while I was performing my job alongside him. It was very funny.” Zungu was the latest to qualify and echoes the proud sentiments of her peers. “Being at sea was difficult at first. I was the only cadet and the only female on a Russian cruise ship where only the captain spoke English well. But I eventually befriended another South African woman who joined the ship later and together we focused on achieving our career goals despite the challenges,” she recalls. “Today I love my job and can imagine myself still doing this at the age of 65.” The three followed similar career paths, first receiving bursaries from Transnet to pursue a one-year maritime studies programme. They then completed experiential training as cadets out at sea with shipping lines such as Safmarine and Unicorn, sailing between South Africa, Europe and the Far East. After a compulsory oral examination with the South African Maritime Safety Authority (SAMSA) they obtained Class 3 tickets to be junior deck officers responsible for auto-piloting vessels and managing safety equipment. They then trained and worked as tug masters at Transnet, manoeuvring ships in and out of the port with the aid of small tugboats. After a one-year pilot training programme, they qualified as junior pilots before progressing through the various licence grades, starting with smaller ships of around 16 000 gross tonnes, then moving onto those of 20 000, 25 000 and 35 000 and eventually finishing with an open licence. Rufus Lekala was also part of that first development group and now holds the position of chief harbour master for South Africa. He is also the youngest in the world. He applauds the three women’s progress, saying, “South Africa is leading the pack in terms of equity and transformation in the maritime field. “Pilots Dube, Mbambo and Zungu have put us on the map once more and should be very proud of their achievements.”
P EOPLE D EVELOPMENT
Business growth through skills development Cargo Carriers sees skills development as the means to opening doors for individuals, as well as creating opportunities and benefits for the company.
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outh Africa’s skills crisis has been exacerbated by the closure of a number of traditional apprenticeship training facilities as a direct result of a drop in apprenticeship registrations. This has obviously led to a sharp decline in the number of qualified apprentices and created a large technical skills gap in the country. It also affects the wider logistics industry in terms of human resourcing and suitable skills acquisition. But logistics and supply chain services provider Cargo Carriers has identified training and capacity building as key to organisational competitiveness. The company experienced dramatic growth in 2010/11 and expects this growth to continue into 2012. But growth brings with it the challenges of maintaining service standards and capacity. However, these challenges are being met through the company’s active training and transformation programme. “Two years ago we identified growth as our biggest challenge,”
"There is a large technical skills gap in the country. It also affects the wider logistics industry" Garth Bolton, Cargo Carriers joint CEO says Cargo Carriers joint CEO, Murray Bolton. “We decided to focus on transformation and training to strengthen our competitiveness while increasing capacity.” As a performance-driven company, Cargo Carriers believes in recognising good performance and career counselling. Performance appraisals are undertaken twice a year for all employees to ensure continual
performance improvement and development. Training and development plans are guided by gaps identified during the performance appraisals, as well as by the identified career paths for an individual’s growth. Mandatory internal training, such as defensive driving and in-cab assessments, are done on an annual basis to assess and enhance the competencies of drivers. This training is constantly reviewed and updated to ensure that drivers are aware of the changes in legislation and all aspects of their responsibilities. The drivers are evaluated by skilled driver trainers, both on the road and in the classroom. Cargo Carriers believes in creating opportunities for staff to pursue bigger and better things, positioning itself as an employer of choice in the industry, and the company is proud of its role in bringing previously disadvantaged individuals into the mainstream economy. Its various training programmes include: • A management trainee programme for transport management and logistics graduates. • A learnership programme for internal audit and risk training (in partnership with the Institute of Internal Auditors – South African Chapter). • Disabled learnership programme (in partnership with the Production Management Institute) for 35 black female learners. • General training to enhance the existing skills of employees.
An apprentice diesel mechanic
The opening of Cargo Carriers’ R1 million training centre in Sasolburg is the culmination of the company’s firm commitment to and compliance with safety, health, environment and quality (SHEQ) policies. The training centre, which will accommodate about 20 students every year, is Cargo Carriers’ tool to ensure that as the company grows, so too do its people’s skills. “The training centre provides true, sustainable skills transfer and growth and is fully accredited. It helps to ensure that we remain the logistics supplier of choice,” says Bolton. The first intake of individuals was initiated in 2010 and comprised seven four-year apprenticeships in the technical field and 10 drivers, who were trained and licensed to operate specialised loads and vehicles over a period of nine months. All of the individuals going through training are fully educated on SHEQ. The training division is headed by long-serving Cargo Carriers employees, making it a genuine apprenticeship with hands-on input from
"The training centre provides true, sustainable skills transfer and growth and is fully accredited" Murray Bolton, Cargo Carriers joint CEO people who have been in the industry for years. There is no doubt that in recognising the skills shortage within the transport and logistics industry, particularly with respect to drivers and technical staff, Cargo Carriers is contributing positively to sustaining and improving the availability of these scarce resources.
TWA 09/10 | 2011 – 35
P RODUCT N EWS
Paperless shipping With ‘green’ all the rage and saving our trees – our green lungs – a hot issue, going paperless is a dream that is finally coming true.
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he latest to join the e-freight community with the use of electronic paperless shipping, so ensuring a modern, cost-effective and environmentally friendly way for cargo to reach destinations in time, is Emirates SkyCargo’s Durban office. “With our Johannesburg office already into a paper-saving drive, we are pleased to now be part of this initiative,” says Ricardo Isaac, manager of Emirates SkyCargo in Durban. According to Isaac, an estimated 20 to 30 pages of paper are saved during the shipment. “This makes a difference in clearance times as these shipments are pre-cleared through the customs process,” he adds. Tim Barron, airfreight manager at Safcor Panalpina, says the freight forwarders’ migration to e-freight was seamless and it has also helped to speed up processing times: “We have been able to submit our declarations sooner, resulting in quicker customs release and earlier delivery times.” The ground handling agent Worldwide Flight Services SA (WFS SA) has also observed the benefits: “Eliminating paper from this process is an important objective and e-freight is driving this through the use of electronic data and messaging,” notes Darren Coleman, general manager at the company. “The ability to send documentation electronically before the cargo itself will help to speed up the air cargo process and should lead to measurable customer service benefits.” Coleman adds: “The continued implementation of e-freight is a priority for WFS SA and we’ll be working closely with Emirates, as well as Safcor Panalpina and IATA, to bring about the many benefits it promises.” E-freight is an industry initiative providing a process and mechanism to remove paper
throughout the supply chain collectively. IATA has set the deadline for 100% global implementation of e-freight by 2015. As each shipment consists of up to 30 pieces of paper, e-freight methods can eliminate the equivalent of 80 Boeing 747 freighters of paper that is currently in the supply chain cycle yearly. Furthermore, it is cost-efficient to implement and simplifies business process. According to Emirates SkyCargo, the current Customs Modernisation Programme being launched on a nationwide basis will enable e-freight growth in the Durban market as freight forwarders have increased electronic communications with customs, which
in turn is applied to communications between forwarders and airlines. “Shippers, consignees and freight forwarders stand to benefit from reduced cost and time efficiencies,” says Isaac. In November last year, Emirates SkyCargo in Johannesburg successfully completed its first e-freight transaction. This involved the transportation of a DHL consignment from Johannesburg to Dubai without the use of any paper documents. Emirates’s air cargo division continues to grow from strength to strength, with the addition of a Boeing 777Fs to its fleet on 25 August.
Darren Coleman, general manager of Worldwide Flight Services SA (pictured left) and Tim Barron, airfreight manager at Safcor Panalpina (pictured right) look on as Ricardo Isaac, cargo manager of Emirates SkyCargo in Durban (middle), demonstrates a table without the shipping paperwork, a benefit of e-freight – a paperless shipping process that was recently introduced in Durban
TWA 09/10 | 2011 – 37
THE ULTIMATE EXPERIENCE JOHANNESBURG EXPO CENTRE, NASREC 8-16 October 2011 (6th & 7th closed to public)
www.jhbmotorshow.co.za
Gate Hours: 09:00 – 18:00 Entrance: Adults R80 / 6-12 Years R20 Tickets available at Computicket or at gate
Endorsed by:
Accredited by:
P RODUCT N EWS
Crashed to take the heat Ford safety engineers crash tested the all-new Ford Focus more than 12 000 times in real and virtual worlds to prove innovative new technologies designed to protect occupants in crashes.
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he all-new Focus underwent an exhaustive testing regimen of occupant and full-vehicle computer simulations. These simulations have become so realistic that the number of physical vehicle crash tests has been significantly reduced. “Developing the all-new Focus to meet the global safety standards has resulted in improved crash performance to help protect occupants in crashes,” said Matt Niesluchowski, Focus safety manager. “Ford’s safety team had a head start in working together around the world, which helped tremendously in ensuring the all-new Focus meets or exceeds a complex web of global safety regulations.” The thousands of computer-aided engineering (CAE)
crashes and simulations allowed engineers to test hundreds of designs. The physical crash tests, conducted after a battery of virtual simulations, verify and validate the computer simulations to ensure that every internal and external requirement is met. “We are using more computer simulations than ever to optimise the designs of all the components that make up a vehicle to help enhance safety,” Niesluchowski said. “The complexity of crash tests, with hundreds of parts and systems interacting, still requires physical testing to validate those simulation results.”
Improved interior safety features The all-new Focus offers a suite of new safety innovations, which includes Ford’s
next-generation driver-front airbag with enhanced chest protection technology. The new airbag uses a reconfigured curveshaped tether system that pulls in the lower section to create a ‘pocket’ to help lessen
Global safety standards have resulted in improved crash performance to help protect occupants in crashes the impact of the airbag on the driver’s chest and ribs in frontal crashes.
Ford’s innovative side airbags feature unique shoulder vents that stay open and reduce pressure for smaller occupants who typically benefit from reduced forces. Taller occupants whose shoulders block the vent could benefit from the higher pressures. The all-new Focus will also be Ford’s first car ever to feature front passenger airbags with adaptive venting technology that diverts some of the gas from the air bag inflators through vents outside of the airbags. The restraints control module – the control centre of Ford’s advanced safety systems – adjusts the level of venting based on seat position. The new passenger airbag is designed to enhance head and neck protection by better matching deployment force with occupant size. This innovative system uses a
small pyrotechnic device to force open the vent and can provide less pressure in the airbag when it is sufficient to help protect the occupant. In addition to the new airbags, the allnew Focus’s vehicle structure provides enhanced crash protection with a B-pillar reinforcement, a key structural part made from ultra-high-strength steel produced using an innovative ‘tailor rolling’ process. The process allows the thickness of the steel sheet to be varied along its length so the component has increased strength in the areas that are subjected to the greatest loads.
High-strength steel constitutes 55% of the all-new Focus’s body shell, and ultra-highstrength and boron steels make up more than 31% of its skeletal structure. These advanced materials help the structure to meet crash regulations across world markets while minimising the vehicle’s weight to help maximise fuel economy. The all-new Focus also features a comprehensive suite of advanced active safety technologies, including: • electronic stability programme, anti-lock brake system (ABS) and traction control • LATCH (Lower Anchors and Tethers for CHildren) system • three-point, height-adjustable seatbelts for each passenger, height-adjustable, Belt-Minder™ system and pretensioners in the front outboard seating positions.
TWA 09/10 | 2011 – 39
N EWS S NIPPETS
Grand old lady and a thoroughly modern miss
Merger builds value
BMW takes three category prizes in the Automotive Brand Contest 2011. The German Design Council honours the SESTOSENSO light installation, the BMW 328 Hommage and the BMW 6 Series Coupe.
A
Go Bokke! A
s the Springboks go into the Rugby World Cup 2011, we as South th Africans Af i need d to actively support our national team by wearing Green & Gold on all Bok days (Fridays) as a show of support - that Rugby World Cup Fixtures we are with them and that 11/09 20:30 South Africa vs Wales Wellington we stand beside them. If you 17/09 18:00 South Africa vs Fiji Wellington are in New Zealand, wave the 22/09 - 20:00 South Africa vs Namibia Auckland South African flag and scream 30/09 20:30 South Africa vs Samoa Auckland your lungs out. Go Bokke!
Auto Express Car of the Year
From left to right: Phil Hodgkinson, David Mitchell, Gerry McGovern, Colin Green and Murray Dietsch
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global leader in logistics and supply chain management, IMPERIAL Logistics, has acquired 60% of automotive logistics and supply chain specialist company, InSync Solutions. Following the establishment of Panopa locally in 2010, the union further entrenches IMPERIAL Logistics’s service offering to the automotive industry with particularly time-sensitive and accuracy-driven logistics needs. InSync enables IMPERIAL Logistics to deliver a comprehensive solution to the automotive industry from a basis of industry understanding, robust original equipment manufacturer (OEM) relationships and blue chip customer experience. The company’s operational and consulting track record is excellent. “Its strengths lie in delivery of integrated and synchronised logistics solutions for complex requirements. It is known by OEMs for its logistics solutions design and development, and the ability to implement complete solutions.
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ne month ahead of going on sale: The new Range Rover Evoque wins the Best Compact SUV title as well as overall Car of the Year prize from Britain’s biggest-selling motoring magazine. High praise from judges: Evoque is lauded for its mould-breaking styling and driving dynamics, as well as for its pricing. Further honours: Land Rover Discovery 4 claims the Best Large SUV title for the second successive year and extends Discovery’s prize-winning streak to seven years. Citing the Evoque’s ‘mould-breaking’ looks and driving dynamics as key factors in its success, the magazine also praised its keen pricing: “The Evoque puts the hugely desirable Range Rover brand within the reach of compact executive car buyers for the very first time,” said Auto Express acting editor, Graham Hope. “The fact that it looks and drives the way it does serves only to underline its premium appeal."
THE OLD SHANGHAI FIRECRACKER FACTORY 700835
Much less of a slurper.
The future of fetch & carry is here. In spite of the fact that our new range of trucks offers you engines with more power & torque, you will find that most of them are more fuel efficient. The entire FK/FM range has also been upgraded to greener Euro 2 emissions level engines with super efficient common rail fuel injection. So your FUSO will fetch, fetch and fetch again... Another reason why FUSO should be your business’s best friend.
C A L L 0 8 6 1 F U S O 0 0 O R V I S I T W W W. F U S O . C O . Z A A N D C H O O S E F R O M O V E R 3 0 D E A L E R S H I P S N AT I O N W I D E
Mercedes-Benz South Africa (Pty) Ltd. is an authorised distributor of FUSO trucks.
N EWS S NIPPETS
Forestry fleet fells costs
MAN TGS 33.480 6x4 BBS truck tractors
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ith operations in the mountains of Mpumalanga, the Eastern Cape,
Limpopo and Swaziland, LT Plant, a division of LT Group, is one of South Africa’s leading independent timber transport companies, with a history dating back to the early 1980s. Moving around one million tonnes of timber per year, LT Plant is also one of MAN Truck & Bus South Africa’s longeststanding customers, posting notable milestones in a relationship built over three decades, founded on mutual trust and close communication. The timber transport industry has been under tremendous pressure over the last
couple of years, with rates remaining at 2008 levels, while operating costs have soared. “Our relationship with MAN and the procurement of the new TGS WW have helped us streamline our operational expenses. We’re a 24/7/365 operation and MAN’s dealer network covers the entire country and cross-border. The MAN dealership in Nelspruit is available round the clock to handle any issues we may face and can service our vehicles seven days a week,” says Rynardt Pietersen, general manager of LT Group.
VW Golf wins 2011 TOTAL Economy Run
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olkswagen Golf 1.6 TDI BlueMotion re-affirmed its status as the most fuel-efficient Golf ever when it won the overall diesel category of the 2011 TOTAL Economy Run. The 35th edition of the event took place in and around Thaba ‘Nchu in the Free State in August. Eddie Bielfeld and his co-driver, Brian Page, in the Golf1.6 TDI BlueMotion achieved fuel consumption of 4.39 ℓ/100km. The VW Golf 1.6 TDI BlueMotion
New Mazda CX-5 world premiere
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ll-new compact crossover SUV, the first of Mazda’s new generation of vehicles built around SKYACTIV TECHNOLOGY: all-new chassis, body, engines and transmissions targeting CO2 emissions of under 120 g/km inaugurates new ‘KODO – Soul of Motion’ design theme. Mazda Motor Corporation will hold the world premiere of the allnew Mazda CX-5 compact crossover SUV at the 2011 Frankfurt Motor Show (13 to 25 September 2011). The CX-5 is the first of a new generation of Mazda products that will adopt the full range of Mazda’s breakthrough SKYACTIV TECHNOLOGY and new design theme, KODO - Soul of Motion.
Petrol category winner
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t may be the smallest model in Toyota’s local line-up, but the diminutive Aygo – introduced to South Africa less than six months ago – has already proven it is up for any big challenge. With its cheeky attitude, depicted by its youthful styling, it has won over the hearts of hundreds of South Africans and more than 1 000 Aygos have found owners,
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Eddie Bielfeld said: “It was a great experience to drive the Golf BlueMotion. Its overall package in terms of the power, low resistance tyres, aerodynamic kit and stop-start system contributed to our achievement as the overall winners in both our class and the diesel category.” The other Volkswagen entry was the Polo 1.2 TDI BlueMotion, which won in its class of diesel engines up to 1400 cc with fuel consumption of 4.44 ℓ/100km. Natie Ferreira and his co-driver Christo Ferreira also came in second overall in the diesel category.
making it one of the most popular entrylevel vehicles in South Africa. Now the Aygo has proven its frugality and fuel efficiency again by claiming the overall petrol category victory in the 2011 TOTAL Economy Run, the 35th running of the event, staged in and around Thaba ‘Nchu in the Free State. Toyota’s Aygo Frugal
T ECHNICAL C ORNER GASKETS
Designed to handle pressure
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he process of developing new head gasket technology for both original equipment (OE) and aftermarket involves hundreds of hours of research. Extensive customer input and electronic analyses, to identify the unique characteristics and operating demands of a wide range of engines, helped Federal Mogul’s coordinated team of engineers piece together the complex puzzle that ultimately becomes a Payen® head gasket. “Very few engines are truly alike. Each application represents an array of unique operating and design parameters that place corresponding demands on the head gasket,” says Paul Saunders, director of aftermarket engineering in Europe. “For an OE gasket, the customer has identified the specific levels of performance expected of the engine and is looking to us for the most reliable, long-lasting and competitively priced gasket possible. For a Payen® replacement head gasket, our engineers are often challenged to solve difficult issues unique to a repaired engine and increase sealing strength and reliability.” The design process begins with an intense focus on the gasket’s operating environment – the engine’s physical design (head and block material, displacement, fuel type, injection method, use of a turbo or supercharger, cooling system design, number of head bolts, target clamp loads, etc.), key operating parameters (maximum power and torque, peak firing pressure
and temperature, amount of head lift and bore distortion), required gasket thickness; head and block surface finishes (including casting waviness, flatness and porosity and other factors. “There are dozens of considerations that go into every head gasket. These include engine
Payen® gaskets bring sealing solutions to an increasingly environmentally conscious consumer – offering durable, efficiencyenabling technologies from Federal Mogul
architecture, clamp load ratio, combustion pressure limitations, the amount of surface area at our disposal, thermal stresses and the degree of deformation that takes place within the engine during normal and peak operation,” explains Saunders. “Once we understand the true nature of the sealing challenge, we can begin to apply a variety of gasket materials and construction features to the job at hand.” The majority of head gaskets for the automotive OE market feature multi-layer-steel construction, combined with several design features that address the engine’s precise operating characteristics. Federal Mogul engineers determine how many functional layers of full-hard stainless steel are needed
to provide the desired compressed thickness (key to ensuring correct compression ratio), as well as the necessary ’spring’ action to accommodate head lift. Other key decisions include the configuration and thickness of the combustion ‘stopper’ layer – which prevents gasses from escaping the combustion chamber and damaging other areas of the gasket body – and which types of coatings will be used on each gasket layer to ensure trouble-free combustion and fluid sealing. Engineers must also determine how to apply embossments, elastomeric beads and other features to seal engine oil at high and low pressures, as well as coolant. “Each of these decisions is based on highly detailed analysis of the engine’s operating characteristics,” says Saunders. “If it is a new engine, we work very closely with the OEM to identify the thermal stresses and joint deformations that occur under various loads.” He further explains: “For an aftermarket application, the OE head gasket technology is only a starting point. We collect extensive data on the performance and durability of the original part, and in many cases develop a more robust solution that better addresses the needs of the service environment, including less-than-optimal casting surfaces.” Behind each gasket – regardless of its intended market – is the most extensive testing in the sealing industry. Federal Mogul’s global network of advanced technology facilities include dozens of engine dynamometer labs and other highly sophisticated engineering tools necessary to prove that each head gasket “performs under pressure”. TWA 09/10 | 2011 – 43
T HE T AIL E ND
A taxing problem Authorities in South Africa have lost the plot. They are killing the goose that lays the golden egg.
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outh Africa has a total of 5.9 million taxpayers. This unhappy group of workers provides the finance that this country depends on, and the 50.5 million people who live here. They also provide the R104 billion that funds 16 million people (32% of the population) living off social grants. Of these taxpayers, 24% carry 64% of the personal income tax burden, while 50% of the tax payers only contribute 3.1% in personal income tax. And the 40% top marginal personal income tax rate for
because they need the money. As several traffic officials agreed, “This is a subversion of our mandate.” So, the purpose of policing has gone and making money is the new priority. With AARTO coming in, 12 fines and you’re no longer driving, corruption will become even more prevalent than it already is – and along with this, police brutality. An evil that is marked by the intentional use of excessive force, usually physical, but also in the form of verbal attacks and psychologi-
fee of R2/km, this will lead to the demise of a substantial number of already struggling small businesses. Small businesses can often not leverage the bargaining power of larger operators and, if they are unable to transfer these costs [to their customers], the resultant effect will be the closure of small operators. The courier industry will also be hugely affected by the rollout of e-tolling in Gauteng. On average, a courier vehicle, typically a bakkie, travelling from Isando to areas in and around Johannesburg travels 150 km a day on the e-toll network. Average toll costs will amount to R60 a day, which is equivalent to a 17% increase in costs. For an operator with a fleet of 100 bakkies, this will cost approximately R100 000 per month, which is a huge cash outlay for any business. It is a serious error in judgement to believe that the savings in maintenance costs, as a result of using the GFIP network, would offset or negate the costs of the e-tolls. We need to build South Africa’s economy, and build as many sustainable businesses as possible, to alleviate poverty. However, it would appear that the authorities, while saying the same thing, are determined to kill the goose that lays the golden egg.
Police brutality is an evil marked by the intentional use of excessive force, verbal attacks and psychological intimidation cal intimidation, including false arrest, racial profiling, surveillance abuse, sexual abuse and police corruption – as reported widely in the press, and as personally witnessed by the writer. South African taxpayers is considerably higher than the global average of approximately 29%. Now, Archbishop Desmond Tutu, who has long been a voice of reason, suggests that white people be taxed even more – as if the discrimination and demands of BEE are not enough to contend with. Not to forget, white people already paid a punitive onceoff RDP levy back in the 90s. Is this the economic revolution?! Every which way we turn more taxes pile up, in one guise or another. Every government department and/or municipality which is given the opportunity to raise taxes, or implement a levy (tax), will do so or has already done so.
JMPD madness On Saturday, 13 August 2011, The Star reported that the Johannesburg Metropolitan Police Department has been instructed by its city masters to write 100 000 traffic fines per month
44 – TWA 09/10 | 2011
Gauteng toll roads To make matters worse, after the first uproar about Gauteng’s proposed e-toll fees, the South African Road Freight Association and the AA and the RMI have once again strongly criticised the revised e-toll fees. To back up their position, using real-life examples, the association said that medium- and large-sized trucks would still incur an 11% increase in costs for deliveries made in Gauteng. The effect of e-tolling on small and medium operators is viewed as being even more problematic. A truck operator picking up a container at City Deep and delivering it in Kya Sands would travel 73 km – including the return leg – on the Gauteng Freeway Improvement Project (GFIP) network. These operators are typically small and medium operators earning R1 800 per pickup. With the profit margin being as low as 2% (75c/km), and with the proposed toll
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6 & 31 19 7 36 IBC 43 3 14 38 24 OFC 41 22 18 29 16 31 8 OBC IFC
Swaziland Railway is a parastatal organization that provides transport services for import and export commodities as well as transit cargo. It is rated one of the best railways in the SADC region in terms of transit time, reliability and predictability, linking Swaziland’s main industrial centres with the railway systems of South Africa, Mozambique and other SADC countries to the North. SR owns and maintains the infrastructure and rolling stock and operates a 300km network. A diversity of cargo is transported, including the country’s major exports of sugar, canned fruit, coal and timber, while fuel, wheat and cement are imported in large quantities. Loads range from 2000 to 6400 tonnes per train. The network extends east to west (111km) from Matsapha Industrial Site to Goba in Mozambique while
the 189km north to south line runs from Mananga to Golela, where it links h to the South African ports of Durban and Richards Bay. The Mananga link provides access to Johannesburg and Zimbabwe via Komatipoort while the Siweni line connects with Maputo in Mozambique. Traflc between Durban and the northern countries is economically routed along the North-South line cutting the distance through Gauteng by 270km and reducing the transit time by up to three days. The rehabilitation of the line to Maputo benelts customers with faster transit times and also provides clients with increased security of cargo. Swaziland Railway is committed to providing 24 hour technical and operational support to ensure the safe passage and transit of all commodities. Cargo is constantly monitored to ensure it reaches its lnal destination safely and on time.
Swaziland Railway Building, Dzeliwe Street, Mbabane • PO Box 475 Mbabane, Swaziland Tel: (+268) 404 2486/7/8/9 • Fax: (+268) 404 5009/7210 E-mail: info@swazirail.co.sz • www.swazirail.co.sz