TWA Aug/Sep 2012

ENDORSED BY

Intraregional supply chain soluĆ&#x;ons from producer to consumer

Tripoli-Cape Town corridor Linking to Luanda

Supply chain logistics How green is your supply chain?

Locomotic frenzy Railing

through Africa

Mercedes-Benz Axor COMPANY EVENT C SCANIA's Driver of the S Year Competition 2012 P8 Y ISSN 1684-7946 Aug/Sep 2012 Vol. 10 No. 4 / R35.00 incl. VAT

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Intraregional supply chain solutions from producer to consumer consum mer

COVER STORY ORY Y Mercedes-Benzz Axor

INSIDE

A truck that is custom-built lt and tested to ensure that it is tough enough ough to handle African conditions. P4 4

THIS ISSUE FESARTA

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Barney’s comment

INSIGHT 20

Fracking in the Karoo

COMMERCIAL VEHICLES C COMPANY O EVENT SCANIA's Driver of the S Year Y e Competition 2012 8

A bullish outlook Crossroads’ healthyw long distance relationship Understanding the customer’s needs Low cost of ownership Ensuring a smooth ride for in-town workhorses Ford Transit drives into SA

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REGIONAL CORRIDOR FOCUS 32

The Cape to Luanda road corridor

PANEL DISCUSSION Fleet management and tracking | How crucial is it to a business?

John Edmeston, Cartrack South Africa

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Hein Jordt, Ctrack Fleet Management

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SUPPLY CHAIN LOGISTICS A holistic route optimisation solution How green is your supply chain?

Railing through Africa High transport costs worry East Africa shippers

PUBLIC INFRASTRUCTURE The eThekwini public transport tip-top Index to advertisers

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Publisher Elizabeth Shorten Associate publisher Ferdie Pieterse Head of design Frédérick Danton Senior designer Hayley Moore Mendelow Contributors Brenda Watson, Barney Curtis, Blake Wilkins, John Batwell, Russell Bennett

by Barney Curtis, chief executive officer, FESARTA

Sustainable corridor

Senior sub-editor Claire Nozaic Sub-editor Patience Gumbo Production manager Antois-Leigh Botma Production coordinator Jacqueline Modise Distribution manager Nomsa Masina Distribution coordinator Asha Pursotham Financial manager Andrew Lobban Administrator Tonya Hebenton Printers United Litho JHB • t +27 (0)11 402 0571 Advertising sales Hanlie Fintelman • h.fintelman@lantic.net t +27 (0)12 543 2564

MEDIA No. 4, 5th Avenue Rivonia

PO Box 92026, Norwood 2117 t: +27 (0)11 233 2600 f: +27 (0)11 234 7274

www.3smedia.co.za Annual subscription: R270 (incl VAT) subs@3smedia.co.za 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

A report on the Sustainable Corridor Management Institutions workshop, held in Walvis Bay from 2 to 4 July 2012

• 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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TWA | Aug/Sep 2012

T

he sustainability of corridor management institutions (CMIs) in East and Southern Africa has always been difficult to achieve. Some years ago, an agreement was reached to set up a forum where these institutions and regional associations could share experiences and develop best practices for corridors in the region. A workshop was subsequently arranged by the Walvis Bay Corridor Group (WBCG) from 2 to 4 July 2012 to discuss various sustainability models and determine the best way forward.

Funded by the United Nations Commission for Africa and hosted by the Namibian Ministry of Works and Transport, the workshop drew more than 30 delegates from the region.

The workshop occurred in a context where despite Africa’s positive export growth rate, its share of world trade remained at a gloomy 3%. Although high transaction costs and unfair world trade policies obviously have a negative impact, the reason is more often than not as a result of logistical constraints.

(Above) There In terms of the functions of the CMIs and the ports, Fesarta’s position is that the were only a few of these signs on CMIs’ sole purpose is to improve efficiencies along the corridors. As consumers are ultimately the beneficiaries of these improvements, the funding of the CMIs the corridor

The cost of border-crossing delays continues to constitute the biggest expense to logistics on the continent

FESARTA COMMENT

management in focus

should be through levies on the goods, paid at the ports.

Transport companies already pay road-use charges along the corridors and, as such, should not be required to pay additional levies to fund the CMIs. Fesarta also maintains that the size of each CMI should reflect traffic flow along a specific corridor. A corridor with low traffic volumes should not have a large CMI, thus keeping the user-pay levy lower so as not to impact on the cost of goods to the consumer. It was also suggested that the user-pay fee currently levied on goods being handled by Walvis Bay be used to support the CMIs on the transKalahari, trans-Caprivi and trans-Cunene corridors and not utilised to fund the offices of the WBCG. Furthermore, we believe that the ports are responsible for marketing their competiveness along the corridors and that they should fund these activities.

Finally, a pan-African corridor management institution, an idea originally suggested in 2005 and subsequently investigated by a consultant of the World Bank sub-Saharan Africa Transport Policy Programme was discussed at the workshop. The Port Management Association of Eastern and Southern Africa recently decided to revive this concept. However, we are of the opinion that there is not much support for another such institution and an agreement was reached that CMIs and regional organisations should continue to network for the development of best practices.

Moving towards one-stop border posts The cost of border-crossing delays continues to constitute the biggest expense to logistics on the continent.

The creation of one-stop border posts will go a long way in alleviating this situation. At present, both the transKalahari/Mamuno and Lebombo/Ressano Garcia are on track to becoming one-stop border posts. With regards to Lebombo/Ressano Garcia border post, the Maputo Corridor Logistics Initiative has been calling for the implementation of a 24-hour one-stop facility since its inception.

Mozambique has already ratified the bilateral agreement and it is currently in the process being ratified by the South African parliament.

(Above from left) The toll fees at the Swartruggens toll plaza; the famous Swakop dunes; an unusual sign in Namibia; the proposed drive-through at Skilpadshek border post

FESARTA’S POINT OF VIEW In terms of the functions of the CMIs and the ports, FESARTA believes that: • The ports were responsible for the marketing along the corridors. Ports needed to market their competitiveness and fund these activities.

• The CMIs’ sole purpose was to improve the efficiencies along the corridors. As the consumers of the goods moved along the corridors were the beneficiaries of the improvements, the funding of the CMIs should be through levies on the goods, paid at the ports.

• The size of the CMI should be commensurate with the traffic flow along a corridor. A low traffic corridor should not have a large CMI. Thus, the user-pay levy should be kept low and not impact on the cost of the goods to the consumer.

• Transporters pay road user charges for the use of the roads along the corridors. They should not be required to pay additional levies to fund the CMIs. • Fesarta believes that the user-pay fee currently being levied on goods handled by Walvis Bay should be used to support the CMIs on the Trans-Kalahari, Trans-Caprivi and Trans-Cunene corridors. They should not be used to fund the offices of the WBCG. • It believed that the WBCG was, in fact, a misnomer; it should have been called the Walvis Bay Marketing Company and be the marketing arm of the port.

• SADC noted that corridors were being clustered, i.e. the eastern (Lobito, Walvis Bay), north-south and western (Dar, Mtwara, Nacala, Beira, Maputo) clusters.

TWA | Aug/Sep 2012

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COVER STORY

MERCEDES-BENZ AXOR

BUILT

for Africa

It is not every day that a truck is custom-built and tested to neardestruction to ensure that it is tough enough to handle African conditions.

No surprise then that the Axor is such a popular choice among operators in the region.

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TWA | Aug/Sep 2012

COVER STORY

T

he Axor was designed and manufactured by Mercedes-Benz to fill the gap between the premium Actros tractors and the mostly rigid Atego trucks. It was first introduced in South Africa in 2003 and has since recorded sales of more than 9 000 units, with the 3340S/33 model proving to be one of the most popular.

“The Axor was originally developed for agricultural purposes in Brazil and later customised for the African market in terms of fuel compatibility, carrying capacity, suspension, axle mass, cab design and model range. This truck represents a successful global collaboration between Daimler AG in Germany, the development centres in Brazil and Turkey, and our local engineers in East London,” says Christo Kleynhans, product manager at MercedesBenz Trucks.

To ensure that the Axor is tough enough for Africa, test rigs are subjected to conditions several times more extreme than they will ever encounter on the road.

“Axor engines have to survive temperature, partial-load, full-load and endurance tests equivalent to some 3.6 million kilometres of driving. For the cab, the simulated crash test results are confirmed in real-life pendulum impact tests on the front end, roof-load and rear-panel pressure tests.

Even the seats have to be able to withstand extremely high G-forces without being torn from their mountings during a crash,” Kleynhans continues.

engine management system, and you have a vehicle that maintains power, while using less fuel and reducing the amount of nitrogen oxide and particulate emissions.

“It constantly calculates the correct injection timing, the

To ensure that the Axor is tough enough for Africa, test rigs are subjected to conditions several times more extreme than they will ever encounter on the road optimal injection metering and the precise injection period for a current driving situation at lightning speed, based on the continuous input of relevant data such as air and boost

Going the extra mile, cleanly and cost-effectively With 15 truck tractor and freight carrier models in the Axor stable, the range offers versatility to African operators and is currently used in many industries, ranging from agriculture, construction and building, timber and mining, to professional haulage.

Kleynhans adds that the Axor’s robust design is another ‘plus’ for the African market. The truck delivers impressive performance in terms of reliability and longevity, displaying an extraordinary ability to clock up the miles.

“The Axor has been designed to ensure that repairs can be carried out as quickly as possible, so it spends less time in the workshop and more on the road. Additional benefits are the long service life of all major components and operating fluids that do not need changing during the vehicle lifetime. A range of parts, such as the rubber molecular bearings, are now also completely maintenance-free,” he says.

With its durable, economical and powerful six-cylinder engine and special powertrain configuration, the Axor is regarded as a very efficient truck. Add to this the Telligent TWA offers advertisers an ideal platform to ensure maximum exposure of their brand. Companies are afforded the opportunity of publishing a two-page cover story and a cover picture to promote their products to an appropriate audience.

Please call Hanlie Fintelman on +27(0)12 463 2564 or e-mail her at h.fintelman@lantic.net to secure your booking.

TWA | Aug/Sep 2012

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COVER STORY

At the hear heart rt of the Axor’s ssafety extremely lies an extr remely brake powerful br rake system fitted tte ed standard as standar d

pressure as well as engine, fuel and charge air temperature.

Outstanding efficiency is assured thanks to pumpline-nozzle technology, the fiveor six-hole injection nozzles and an extremely high injection pressure of up to 1 800 bar,” says Kleynhans.

Less weight, more payload A host of measures have been implemented on the Axor 4x2 truck tractors to reduce the weight wherever possible and achieve the perfect balance between robust design and high payload. Vehicle weight has been reduced through, among others, the new direct-drive transmission, the two-bellows air suspension and the front-spoiler bumpers, which are made from weightsaving plastic.

No compromise on safety Safety features are designed to protect both the driver and the vehicle. In addition to offering comfortable custom-designed cabs for long-distance and distribution applications, the cab is constructed to offer maximum protection. For instance, only flame-retardant, splinter-proof materials with rounded corners and edges are used in the interior and seatbelt tensioners come as standard. Visibility is enhanced through clearAXOR 2628/45 USED FOR ROAD REHABILITATION glass headlamps that illun 20 July 2012, Mercedes-Benz South Africa minate a wide area of the our plans to expand the company into neighbouring road, heated exterior mirrors delivered a fleet of five Axor 2628/45 trucks countries, the overriding factor that we considered was and wide-angle rear-view to Velocity Road Rehabilitation South Africa, a the support available from Mercedes-Benz,” said Frank mirrors mounted below the subsidiary of Mvelaserve. The trucks have a very Cattich, MD of Velocity SA. main mirrors. The curved sophisticated application designed to fix potholes on “The Axor is a comprehensible choice for Velocity design of the mirror glass the country’s roads.

SA’s requirements, with its all-round features, including and the new front bumper The Velocity will be introduced in Gauteng, robust design and long service intervals,” says view mirrors further reduce Mpumalanga, the North West and the Free State, Cornel Oelofse, general manager of new commercial blind spots. with plans to expand to the rest of the country and vehicle sales at John William’s Commercial Vehicles At the heart of the Axor’s into Africa.

Bloemfontein. “The Axor qualifies as the best-fit safety lies an extremely “When we made the comparisons, we unanimously transport solution for the Velocity road repair machine – powerful brake system fitagreed on a Mercedes-Benz truck. Because of a fully, self-contained unit that’s used to repair potholes ted as standard. Certain and road surface defects instantly and effectively.” models with an output of The trucks have been fitted with high-velocity 260 kW/354 hp are fitted technology that will change the face of road with the Turbobrake, which maintenance in Southern Africa. The cutting-edge improves braking considtechnology, which has been developed since 1985 erably when driving down and implemented over nearly two decades in various steep hills. The Axor fitcountries – including the UK with its severe winters ted with a 295 kW/401 hp and wet conditions – has proven its worth as the fast, engine comes standard with economic alternative to conventional a Voith retarder instead of road patching. a Turbobrake.

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TWA | Aug/Sep 2012

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INTERNATIONAL MINING, INDUSTRIAL, CONSTRUCTION AND POWER GENERATION EXHIBITION SHOWCASES NEW INNOVATIONS, PRODUCTS, SERVICES AND TECHNOLOGIES

co-locating in hall 9

Pre-registration is now open for Electra Mining Africa, the ultimate market place for all stakeholders involved in the mining, construction, industrial and power generation industries.

Visitors can expect to see leading local and international industry players in the packed halls and outside precincts. It’s the ideal place to view the latest in technology and equipment, innovative products and new supplies and services.

Tr a n s p o r t f o r t h e M i n i n g I n d u s t r y

Experts will be on hand to give advice, live demonstrations will be happening daily and co-located conferences and workshops will add even greater value.

Electra Mining Africa is recognized as the second largest mining show in the world and the biggest trade exhibition in southern Africa with global recognition for its broad reach across mining, construction, industrial and power generation industries.

Electra Mining Africa and co-located Elenex Africa, Machine Tools Africa and Transport Expo runs from 10-14 September 2012 at the Expo Centre, Nasrec, Johannesburg, South Africa.

Contact the Marketing Director at Specialised Exhibitions Leatitia van Straten leatitiavs@specialised.com +27 (0) 11 835 1565 www.electramining.co.za

PRE-REGISTER NOW FOR FREE ENTRY It’s simple – just complete the registration form at www.electramining.co.za R15 per vehicle, per day for secure parking

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COMMER CIAL VEHICLE S • Heavy

SCANI A

Driver of the Year Competition 2012

Thirty-two bus and truck drivers from across South Africa recently showed off their skills to try claim the title and trophy of ‘Driver of the Year’.

final round. This process starts again straight after the event and runs for the next two years. The event is supported by the Road Traffic Management Corporation with sponsorships from Avis and Pick n Pay, ensuring the winners do not only walk away with the title and trophy, but also with prizes worth thousands of rand.

The first two days of the competition constituted a 50/50 split between training and evaluation and consist of three modules: • first aid • pre-trip inspection • handling track.

For the pre-trip inspection module, a vehicle with various ‘faults’ is provided and drivers have to identify and rectify these ‘faults’ before setting off. The challenging handling track, with steep inclines, negative camber roads, undulating surfaces, etc., was also tackled.

D

riving any heavy commercial vehicle demands a high level of skill, regardless of its load. The average road user does not give this much

thought when encountering such typical largescale vehicles. But with so many critical factors at stake, driver training is crucially important, and in this area, Scania is ahead of the rest, thanks to its biennual ‘Driver of the Year Competition’.

Skills shown by the Ànalists were nothing short of amazing

Held at the Gerotek Vehicle Testing Facility close to Hartbeestpoort Dam from 25 to 27 July,

the event pitted the top 32 Scania drivers from all over South Africa against each other. The drivers were selected from a total pool of 1 630 (new Scania vehicles purchased in the preceding time frame) and consisted of 18 bus and 14 truck drivers competing in their separate categories.

With each new vehicle purchased, Scania provides training to the driver, which is then followed by testing and evaluation.

Regional qualifying rounds are then held, culminating in the

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TWA | Aug/Sep 2012

TWA | Aug/Sep 2012

The drivers start off with 100 points in each module and lose points for faults and errors along the way. The top 10 drivers – five truck and five bus drivers – were then selected to compete in the finals, held on the last day, which involved a demanding track set up to test low-speed manoeuvring skills.

Nine different challenges were laid out for the competing drivers to be completed within a specific time limit. Watching these drivers guiding their massive vehicles through the various challenges with inch-perfect precision is a sight to behold.

The skills shown by the finalists were nothing short of amazing.

Internationally, Scania also leads the way with the biennial European Young Driver competition, which takes place in Sweden this year. Further involvement from Scania this year will be at the World Driver’s Championship, to be hosted at Sun City in August, as sponsor and vehicle supplier. It has also entered an African team of Scania drivers selected from Tanzania, Lesotho, Botswana, Namibia and Malawi.

Congratulations have to go out to the winners of each category at the Gerotek competition, with a huge ‘congratulations’ for Scania, leading the way in promoting safe transportation of goods and people.

ults Final res BUS

nus k Herma Frederic Villiers Hanlo de tgieter Jaco Po nguni Nathi M ne Mokonya Hendrik

Aligning to petrol pump

TRUCK

Ryno Leibrand

MOST IMPROVED

Ebrahim Mathobela

BUS – Tsakane Nurcleu

Charles Leibrandt

TRUCK Abraham Steenkamp

Steven Stroebel Martin Barnard

precision driving challenges

Wheels in the rings

Height and width challenge

Park on target Watch the gates!

Roll the ball into the hole

COMMERCIAL VEHICLES • Heavy

A BULLISH OUTLOOK...

... For the rest of Commentators in the heavy vehicle sector in South Africa are bullish about prospects for the remainder of 2012, although there are some reservations about the rate of growth in 2013.

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TWA | Aug/Sep 2012

2012 at least T he positive stance comes on the back of figures released by the National Association of Automobile Manufacturers of South Africa (NAAMSA), which indicate a cumulative yearto-date (to the end of July) market growth of 6% in sales of heavy vehicles with gross vehicle mass ratings of more than 3 500 kg.

Bruce Dickson, deputy CEO of Man South Africa, says the sales figures indicate that “the market is not only resilient but growing”. The market remains fiercely competitive and extremely margin-sensitive. Vehicle suppliers that can offer lower life cycle costs are gaining market share, both locally and in sub-Saharan Africa, which buys much of its capital equipment from South Africa.

“Direct foreign investment north of our borders is driving the sales of new trucks assembled in South Africa to service mining, agriculture and construction projects in many sub-Saharan countries. While premium-class long-haul truck tractors are popular in Africa, we are seeing the rise in popularity of robust, easy-to-repair workhorses in various SADC countries.

“Locally, the road freight industry is maturing at a rapid rate, driven by its ongoing integration into multinational supply chains. Truck fleet operators in South Africa are therefore deploying trucks that not only comply with international safety and environmental protection codes, but also boost

operator profitability by effectively lowering total cost of ownership,” Dickson remarks.

Nico Vermeulen of NAAMSA says that the heavy truck sector is in good shape “at least for the next six months.

Sales of [heavy] trucks are aligned with economic development and if the government goes ahead with spending on infrastructure, this sector will continue growing into 2013.”

Dr Casper Kruger, vice president of Hino South Africa, takes the view that improved sales of heavy vehicles are likely to continue through to December with unit sales reaching the 27 500 to 28 000 mark.

Sales figures in 2013 should continue the pattern of growth if the current level of GDP growth is maintained at 2 to 2.5% in 2013.

“In that light, the forecast of 28 000 units for the year to the end of December shows this is a significant market. I don’t think we will see that level of growth next year and the heavy vehicle market sector will be impacted if the government does not proceed with infrastructural development.”

He points out that vehicles bought during the halcyon days of 2008, when sales of 34 659 were achieved, are now coming up for replacement five years down the line.

“If prospects for growth are not good then operators could wait another year before replacing these vehicles.”

Turning to the factors that impacted on heavy vehicles sales to date this year, Kruger

Improved sales of heavy vehicles are likely to continue through to December mentions that road tanker companies have experienced a fall-off in business as a result of Transnet’s improved oil pipeline capacity.

“If Transnet manages to improve its freight rail service, we could see a drop in demand for heavy vehicles carrying freight. But the demand for vehicles to undertake secondary distribution will continue. However, the big logistics companies have become reliant on the predictability of the service provided by truck operators. The model works for them and they can control it.”

Hino, at 12.2%, is the second largest player in the local market behind the range of brands supplied and marketed by Mercedes-Benz.

TWA | Aug/Sep 2012

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PANEL DISCUSSION

FLEET MANAGEMENT AND TRACKING

How crucial is it to a business?

A focus on technology available, including unique systems and solutions available; aftersales support, the importance of an integrated solutions, and the overall view on fleet management and tracking in relation to transportation and logistics.

CARTRACK SOUTH AFRICA John Edmeston, MD, Cartrack South Africa

W

hat is your view on fleet management and tracking in relation to the South African and African context? Why is it considered a crucial aspect in relation to vehicle/fleet maintenance? JE Rising transport

and fuel costs, toll fees, vehicle maintenance costs, hijackings and the challenges around managing driver behaviour are placing enormous pressure on fleet owners and companies to find effective and sustainable ways of managing fleets, driv-

channels, while the empty trucks are then usually headed for the likes of Swaziland, Mozambique and Malawi. The most popular loads are consumer electronics, IT equipment, alcohol, cigarettes and groceries. The trailers are removed from the horse and the load can be offloaded into nearby warehouses and ‘dodgy’ resale outlets in an alarmingly short time. As we start heading towards the end of the year, we expect this trend to increase as greater volumes of vehicles and stock are on the road in preparation for the festive season and syndicates take advantage of the uptick in the movement of goods.

While the scenarios in Africa and South Africa are very similar, they can be even more challenging

reporting and control of costs, allowing fleet owners to manage driver behaviour as well as draw accurate, real-time data for analysis and improvement planning.

Cartrack’s fleet management systems provide the answers to the ‘how’ and ‘why’ questions that allow for proactive planning and intervention, rather than simply monitoring distances travelled.

Cartrack also offers the option of stolen vehicle recovery. With our audited 95% stolen vehicle recovery rate, we provide clients with a unique recovery warranty, giving cash back to clients in the unlikely event of non-recovery. Vehicle telematics, driver management, speed management, fleet tracking, fuel management, driver profiling, route planning and geofencing are all readily available. And with a host of optional extras, there’s no limit to the cost saving and productivity benefits for clients. Aftersales services include a fleet management call centre for first line training and user support plus continual monitoring of unit functionality to ensure tracking devices are operating at all times.

A bureau service is also available to provide a 24/7 monitoring and reporting service.

“Cartrack’s comprehensive range of web-based fleet management solutions provide for efficient and accurate reporting and control of costs” ers and their driving habits, as well as time management, risk and variable maintenance, and operating costs. Vehicle tracking with full telematics features is an essential requirement to achieve optimum fleet performance. Truck hijackings and the subsequent loss of valuable cargos cost the economy and insurance industry billions of rand each year. Commercial trucks and trailers are being hard hit with their loads being quickly redistributed into suspect retail

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TWA | Aug/Sep 2012

across our borders given that the cost of vehicle maintenance is even higher and the road infrastructures poorer.

What fleet management and/or tracking technology can you offer the transport industry, and what advice and aftersales support do you offer clients? Cartrack’s comprehensive range of web-based fleet management solutions provide for efficient and accurate

What are the benefits in offering clients an integrated/holistic solution? Clients generally want a one-stop solution to their fleet management and vehicle recovery services. In many instances, large transport companies will have existing

systems supporting their logistics such as mapping and route planning. In such cases, the ability to integrate the tracking system data into the clients systems is important and to provide a single holistic solution. Cartrack’s range of fleet extras includes: • Communicator: provides instantaneous communication between management and driver.

• Mi Fleet: a web-based software application for consolidating all your fleet management data, including operating costs from date of purchase up to termination, complying with government and SARS requirements.

• CAN bus: a multiplexed wiring system used to transfer onboard vehicle information.

• Driver ID: necessary to place responsibility on a driver for fines, accidents, etc.

• Fuel monitoring: a hardwired connection to the vehicle’s fuel sender unit provides fuel reading levels in real time and can be used to detect fuel theft.

We also advise clients of the vital importance of having realtime tracking and response so that any illegal activity, whether as a result of driver behaviour or criminal activity, can be picked up immediately and acted upon.

Telematics is proving to be an essential weapon in the fight against hijackings, theft and non-approved driver behaviour – from digressions off approved routes or speeding to extended periods of standing still for no valid reason.

Cartrack SA is a market-leading stolen vehicle recovery, fleet management and telematics service provider.

PANEL DISCUSSION

FLEET MANAGEMENT AND TRACKING

How crucial is it to a business?

CTRACK – a DigiCore Company Hein Jordt, MD, Ctrack Fleet Management

W

hat is your view on fleet management and tracking in relation to the South African and African context? Why is it considered a crucial aspect in relation to vehicle/fleet maintenance?

HJ Ctrack’s fleet management solutions provide information for key management areas such as security, HSE (health, safety and environment), productivity, operational management and control, and asset management. Transportation and logistics require control over costs, including reduction in operational costs through change in driver behaviour (less abusive driving resulting in less speeding, idling or unproductive kilometres), improvement in productivity through better planning resulting in improved routes, quicker turnaround times, more loads and increased profits. Driving behaviour has a very direct impact on operational costs and impact on vehicle/ fleet maintenance and repairs.

Fleet management and tracking is crucial to transportation and logistics because there is no other way to measure what the driver is doing, how he is doing it and what impact it will have on the business. Fleet management and tracking in South Africa is in a mature state and the various industries understand and realise that it has become an integral part of transportation and logistics. Although many African countries have fleet management and tracking solutions available, they do still face certain challenges with regard to

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TWA | Aug/Sep 2012

GSM coverage, sourcing skilled employees to implement, use and benefit from the information available from fleet management and tracking solutions.

What fleet management and/or tracking technology can you offer the transport industry, and what advice and aftersales support do you offer clients? Ctrack provides various fleet management and tracking solutions from our Ctrack ICE (In Case of Emergency) personal tracking device, Ctrack Insure basic SVR (Stolen Vehicle Recovery) unit and Ctrack Secure advanced SVR unit including business and private kilometres recording accepted by SARS. Ctrack Fleet Lite offers basic fleet management and monitoring functionality, while Ctrack Assist offers cost-effective comprehensive fleet monitoring functionalities including driver identification.

Ctrack’s Solo optimum GPS/GSM fleet solution is full featured, scalable and not only provides the most comprehensive Ctrack information, but also allows for the integration with other third-party solutions such as on-board weighing systems, temperature monitoring solutions, collision avoidance systems and driver fatigue monitoring solutions. It also offers multiple data transmission

options such as GSM (2G and 3G), Wi-Fi, satellite and Tetra.

Ctrack’s telematics technology incorporates information received from a 3-axis accelerometer such as harsh braking, harsh acceleration, harsh bumps and harsh cornering. Ctrack’s DBI (Driver Behaviour Interface) is an in-vehicle display unit that provides real-time driver behaviour feedback on driving style in the form of green, amber and red lights. In the event that driving parameters are exceeded, the lights change from green to amber and eventually red, and only by changing the driving behaviour positively will the DBI return to green. Ctrack’s FleetConnect solution is a management information system software package that consolidates all costing aspects of your fleet, highlighting any variances from personal, manufacturer and industry norms, and provides visibility and control on vehicle asset expenses.

Ctrack offers options for recording of business and private kilometres in an electronic format acceptable to SARS

What are the benefits in offering clients an integrated/holistic solution?

DigiCore owns the entire supply chain from research and development, assembly and manufacturing, sales and support of all Ctrack product solutions.

Extensive industry knowledge and expertise allows Ctrack to provide customer-focused solutions. As a result of owning the Ctrack product life cycle,

DigiCore can increase product production as and when required. Providing an integrated/holistic solution affords clients the time to focus on the benefits that can be realised from the Ctrack management information because they do not have to manage different solutions providers. The customers’ energy and focus can now be on reducing costs, improving operational efficiencies and productivity/utilisation – thereby maintaining and adhering to customers’ service levels and expectations. Many companies have different systems to manage and track vehicles, manage drivers, manage costs such as fuel, tyres, batteries, toll, licensing and traffic offense management. Through Ctrack’s integrated solutions, clients can monitor and track vehicles and drivers, make more informed operational and financial decisions, and view the impact of vehicle and driver usage through FleetConnect. Having one integrated/holistic fleet management and tracking solution allows customers to focus on their core business and have one less thing to worry about.

Ctrack offers a variety of telematics solutions for both the consumer and fleet industries.

Ctrack offers GPS/GSM stolen vehicle recovery products for the individual, including options for recording of business and private kilometres in an electronic format acceptable to SARS to sophisticated fleet monitoring and management solutions incorporating in-vehicle integration with navigation modules allowing for tasking of mobile personnel, voice and text communication. Ctrack offers flexible management software options from server-based administrative software to zero footprint internet-based software, as well as mobile software for smart phones and tablets.

COMMERCIAL VEHICLES • Heavy

FUEL SUPPLY

Crossroads’ healthy long-distance relationship

Crossroads covers over 1.3 million kilometres per year distributing fuel for Engen East London.

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rossroads, a prominent logistics solutions provider, has won the tender to distribute fuel from Engen East London to its constituents across the Eastern Cape, Northern Cape and

of fuel to retailers (garages), generally in and around the Transkei area.

When it comes to distributing fuel, there can be no shortcomings when standards are involved. The dedicated fleet, containing nine vehicles, is regularly assessed to conform to the highest safety standards. It is also absolutely imperative that all drivers transporting fuel be accredited with dangerous goods training and that trucks be equipped with the right technology to handle such long distances.

“We conduct SHEQ audits quarterly through internal committees,” says Jeanne Kruger, contract manager of fuel distribution at Crossroads. “Twice a year, external audits are performed on management and operational systems, vehicles and equipment.

These audits ensure that we maintain our high standards to comply with the sustainability requirements of our customers.”

Crossroads has a well-established relationship with Engen, having been previously contracted to bring fuel from Engen’s Durban depot.

“Our standards in the fuel sector are second to none,” says Kruger. “Our safety, driver training and track record in previous contracts with Engen all played a big role in winning the tender.”

When it comes to distributing fuel, there can be no shortcomings when standards are involved

Transkei. This contract involves the transporting of over 70 Ml of fuel per annum, traversing a distance of more than 1.3 million kilometres.

Around 60% of this three-year contract involves bridging fuel from Engen to its constituents in the Northern Cape, while the rest of the contract pertains to the distribution

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TWA | Aug/Sep 2012

ELECTION TENDER

SkyNet to take on elections again

SkyNet Worldwide Express has once again won the courier and express parcel tender for the IEC.

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kyNet, which has been the courier behind election logistics since the first democratic election in 1994, has been re-awarded the Independent Electoral Commission (IEC) distribution contract through a conventional open-tender process. The courier won the tender due to its extensive national infrastructure, its proven track record and, of course, its value offering.

There are an estimated 26 million eligible voters in South Africa living in 23 000 different voting districts with 260 municipal electoral offices. During high-peak periods, such as the national elections, IEC logistics demands thousands of tonnes of voting materials and months of man-hours. And, in some instances, it also involves overseas voting.

This is a mammoth task as failure can have a detrimental impact on the country. It requires a courier with a reputation for reliability across the length and breadth of the land. With demand patterns becoming increasingly volatile, the distribution systems of companies like SkyNet become more and more critical to customer and channel partner satisfaction. And while the stakes may be higher if something should go wrong at election time, every brand owner faces the same challenges.

Many major courier and logistics companies competed for the tender when the IEC put it out to the public. Important variables like BBBEE scores, reputation for reliability, network strength and the value proposition were all put to test.

“We have always been considered a tough match to our competition,” says Richard Ngubane of SkyNet. “We are really happy to be able to serve the country again through the IEC tender. Our robust network and vast infrastructure, is a perfect fit to their needs.”

And with overseas voting, being the world’s largest independently owned distribution network means SkyNet reaches 1 115 hubs through over 200 gateway cities.

The courier remains a responsible corporate citizen, strictly adhering to the Labour Relations Act and the Administrative Adjudication of Road Traffic Offences Act. Ensuring that all vehicles are loaded correctly with the proper accreditation is crucial as “it would be inconceivable to have IEC materials detained by the authorities because of any non-compliance with road regulations or accidents,” says Ngubane.

TWA | Aug/Sep 2012

17

Engen Dieselube 700 Super – a high-performance lubricant for turbocharged diesel engines operating under high load

Engen Lubricants recently embarked on a mission to

When subjected to rigorous field testing against previous-

prove the effectiveness of its leading diesel engine oil,

generation products, Dieselube 700 Super emerged

Dieselube 700 Super, by asking some of our key fleet

with flying colours – showing improvements over its

customers to tell us of their experiences using our

predecessors and competitors in all key areas.

products as well as feedback on their supply relationship with Engen.

The result is a powerful set of testimonials that prove how important Engen is as a business partner to our key customers and the quality and dependability of our products to the fleet industry.

Dieselube 700 Super has proved itself over the years to be one of the fastest-growing lubricants brands within the fleet sector. Rugged, dependable and capable, Engen Dieselube 700 Super is a high-performance lubricant for

The result is a lubricant fully capable of handling whatever

turbocharged diesel engines operating under high load.

today’s heavy commercial industry can throw at it –

It is trusted by operators across the country for either

a lubricant that is in for the long haul.

long-haul or off-road applications and is the number one diesel engine crankcase oil in the heavy-duty market.

Dieselube 700 Super has achieved this remarkable achievement, because of its innovative technology.

This technology exceeds industry requirements of leading North American, European and Japanese vehicle manufacturers, which allows Dieselube 700 Super to meet the needs of the most modern diesel engines. This unique technology provides superior soot-control, which reduces occurrences of both engine wear and oil viscosity increase.

It also provides excellent engine cleanliness.

Engen has many reports from the field of vehicles completing distances in excess of 1 600 000km before the engines are first opened whilst running on Dieselube 700 Super.

Dieselube 700 Super.

For the long haul.

DRAFTFCB CAPE TOWN 100001075CT/E

“With over 3 500 wheels on the road and a footprint that stretches from Durban to the DRC, our industry is a tough environment. Take sugar for instance.

It’s a dusty operation. Then there’s gas, fuel, steel, chemicals – each one has its own set of unique requirements. Service is downtime, so to speak.

Dieselube 700 Super delivers.”

Dieselube 700 Super.

For the long haul.

“We are happy with what we look at when we open our engines.”

Piet Potgieter Technical Manager Cargo Carriers

INSIGHT

FRACKING IN THE KAROO

A viable alternative to oil?

Shell’s proposal for hydraulic fracturing or ‘fracking’ in the Karoo has evoked an angry response from local communities.

Considering the demand for greener fuel technologies, the issue demands a rational and objective evaluation.

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TWA | Aug/Sep 2012

INSIGHT

Economic impact In South Africa, 95% of cargo is transported by truck.

South Africa’s energy minister, Dipuo Peters, recently ntly stated that the country has a crude oil reserve of just two wo weeks and announced plans to increase the reserve, ve, which could become a priority.

The United States (US) and the European Union are demanding an embargo of oil from Iran, which happens to be South Africa’s primary supplier. If enforced, South Africa could be facing a serious, two-fold problem: World oil source compositions differ. If forced to comply with the sanctions call, South Africa’s oil refineries may have to carry out reconfigurations costing millions to wean themselves off Iranian crude oil.

With Sasol only producing 28% of South Africa’s daily fuel needs, this would lead to a fuel shortage. Running out of fuel raises all sorts of problems and will have huge economic implications for South Africa should it become a reality.

“The environmental risks of hydraulic fracturing for shale gas can be safely managed.”

Prof Robert Mair from Cambridge University and in South Africa, mines cause far greater seismic disturbances than fracking could.

“The environmental risks of hydraulic fracturing for shale gas can be safely managed, provided best practice is observed and provided it is enforced through strong regulation,” says the report’s chair, Prof Robert Mair from Cambridge University.

A solution is needed If load shedding continues to be a possible reality, and our natural energy resources continue to deplete, alternative oil sources need to be considered – and soon. From a more sustainable point of view, biofuels and natural gases are the most viable options, and Shell is already considering the possibilities.

Fracking in the Karoo Fracking has become a dirty word in South Africa’s semiarid heartland – the Karoo. It involves pumping water and chemicals into shale rock at enormous pressure to ‘crack’ open the shale and allow trapped gas to escape. Shell’s proposal to develop a series of natural gas wells is being opposed by an unprecedented public outcry. This culminated in the government placing a moratorium on shale gas fracturing until a final decision is made.

What are the key concerns with fracking? In the US, where 450 000 fracking wells have been sunk – and upon which the South African anti-fracking lobby is basing its arguments – the biggest problem has been the lack of transparency. Another is unprofessional drilling methods and the lack of adherence to legislated standards. Other concerns raised include geological instability resulting in seismic activity, groundwater pollution and fire hazards due to leaking gas.

A recent report from the Royal Society and the Royal Academy of Engineering says the technique is safe if firms follow best practice and rules are enforced.

Tremors caused by the fracking process, such as the event in Blackpool last year, measure a fairly minor 2.3 in magnitude. The British Geological Survey can’t measure below a magnitude of 2 in towns because of the traffic,

An extensive collection of research reports and documentation regarding Shell’s proposal to frack the Karoo are available on the company’s website.

Geology In 2004, as part of an academic geophysical study to understand the origins of the Karoo Basin and the Cape mountains, researchers located the Karoo shale layer using magnetotelluric (MT) imaging. This technique places a few electrodes in the ground and measures the interference of electric currents through different rocks induced by natural electric charges in the atmosphere.

To corroborate the MT findings, a second method, using sound waves generated by small artificial explosions (charges of 15 kg per site buried 12 m below the surface), was used. This method monitors how fast the waves pass through the rocks by using seismometers. The MT and seismic experiments provided similar results, painting a detailed picture and showing the depth variations in the shale in a section that traverses the Karoo from the

DIAGRAM 1 HydroMorphotectonic Model of a Ring Complex (Chevalier et al, 2001)

(Opposite page) Fracking in the US is common practice in some areas, but in some instances has compromised safety

TWA | Aug/Sep 2012

21

INSIGHT “Gas or chemical contamination should not be a problem. The risk is very low, provided fracking takes place at a depth of many hundreds of metres below the level of aquifers and that the wells are properly constructed,” Mair says.

Technology

DIAGRAM 2 Shale gas extraction

Drakensberg to the Western Cape, and in the region where the shale gas extraction licences are pending.

It was established that Karoo shale is found at a depth of 2 000 m in the east and up to 4 500 m in the west – a perfect depth for tapping tight gas should it be present in sufficient quantity.

Groundwater In a study carried out by consulting engineers SRK and consulting hydrogeologists GWA, it was found that the shallow groundwater layer, generally at depths of less than 300 m, was well understood and documented. However, the deeper geological/hydrogeological layers are less understood and further work, such as land and airborne geophysics and exploration drilling would be required to obtain a better understanding of this environment.

Nonetheless, some groundwater is found at depths of up to 1 000 m, significantly more shallow than where the shale gas would be sourced.

Chemicals used in the fracking Depleting natural resources process included here are seven billion people on planet Earth. By 2040, just 28 hydrochloric acid, years from now, the population is expected to be nine billion, biocides, fricor more. It is inevitable that there will be a substantial increase in demand for the world’s natural resources. tion reducers, The BP Statistical Review of World Energy in June 2011 meascorrosion inhibiured total global oil at 188.8 Mt, from proved oil resources at tors and gelling the end of 2010. This is only enough oil for the next 46.2 years, should global production remain at the current rate, which it agents. However, will not. Some experts predict that the oil price will escalate to the percentage of US$225 (R1 848.31) per barrel by 2045, but given the simple rule of supply and demand, it could escalate from today’s US$98 chemicals in the per barrel to as much as US$687 per barrel. volume of water is A similar picture exists for natural gas, with 2010 measurements showing enough gas in proven reserves to meet 58.6 years 1%. With suitable of global production. management and Of all the natural resources, coal as a fossil fuel has the largest necessary care, reserves, but as China, India and other developing countries continue to increase their appetite for coal, demand could finally problems can outstrip supply. be avoided.

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TWA | Aug/Sep 2012

The drilling of a gas well consists of several cycles running casing (steel pipe for well construction) and cementing the casing in place to ensure isolation. In each cycle, steel casing is installed in sequentially smaller sizes inside the previous installed casing string. The last cycle of the well construction is well completion, which includes perforating the hydraulic fracturing section.

While drilling, fluid is circulated down the drill string and up the space between the drill string and hole. This drilling fluid serves to lubricate the drilling assembly, remove the formation cuttings drilled, maintain pressure control of the well and stabilise the hole being drilled. Drilling fluid is generally a mixture of water, clays, fluid loss control additives, density control additives and viscosifiers. Drilling fluid is a carefully monitored and controlled mixture designed to achieve best drilling results.

In total, 4 Mℓ of brackish, grey or saline water is used to drill one well.

The first hole to be drilled (see Diagram 1) is for installing the conductor pipe. This is followed by the sequentially deeper holes drilled to install the surface casing, intermediate casing (if necessary) and the production casing. It is important to note that the shallow portions of the well have multiple concentric strings of steel casing installed.

Horizontal wells are drilled vertically to a point and then redirected to run horizontally within the shale layer. The horizontal portion of the hole is usually drilled with a downhole motor. While drilling the horizontal section, the downhole motor, which operates using the hydraulic pressure of the drilling fluid, turns the drill bit. Down-hole motors are steerable, meaning they can be controlled from the surface to stay within the shale.

Once the wellbore is ready, 10 Mℓ of water is pumped down the well at high pressure. Exiting out the perforations at the end of the well pipe, the water fractures the shale, thereby releasing any gas in the fractured area. This gas flows up the well to be stored in tanks and is then transported for further processing.

Given the looming fuel energy crisis, fracking is something that should at least be considered

Summing up Shell has stated that it wishes the Karoo fracking project to be an ecological example of how to do hydraulic fracturing properly and safely. And it can be done, according to Mair.

Given the looming fuel energy crisis, fracking is something that should at least be considered and properly determined whether or not it is a viable, environment-friendly oil alternative.

Designed for extra kilometres* SHELL DIESEL EXTRA CAN HELP YOU:

1 2 3 4 5

Save fuel by up to 3%* Reduce fall-off in engine performance Prevent fuel system corrosion Reduce foaming when refuelling Lower CO2 emissions and smoke * Compared to regular diesel without fuel economy formula.

Savings may vary per truck/vehicle.

COMMERCIAL VEHICLES • Heavy

TIP TOP TRAILERS

Understanding the customer’s needs A crucial requirement in selecting a manufacturer of commercial trailers is to identify one that takes time to understand a potential customer’s needs, and has the knowledge and experience to provide sound technical solutions.

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his is the view of 1 Warren Marques, company spokesman for leading commercial trailer manufacturer Paramount Trailers.

1 A step “What makes the selection prodeck trailer cess even more important is the manufactured fact that the building of a comby Paramount 2 mercial trailer is a significant Trailers investment. As with the purchase 2 A simplified of any product, it is important to schematic of a bulk road check variables such as quality, tanker designed warranties and after-sales service. and built by But additional key factors are the Paramount reputation and track record of Trailers 3 A bulk tanker the manufacturer and the efforts manufactured taken by staff to build trust with the

by Paramount potential customer.”

Trailers Marques advises potential customers to avoid ‘fly-by-night’ trailer builders that are sure to renege on commitments should problems arise with the product.

“We believe it is important to build a relationship with the customer. There should be a willingness and ability to trust the people with whom you are engaging. At Paramount Trailers, the MD and CEO make every effort to know and meet every customer. Paramount Trailers is now 15 years old and the company’s first customers are still purchasing from it today.”

Turning to customer needs, Marques says Paramount Trailers takes into consideraWarren Marques, tion a number of factors company spokesman, Paramount Trailers

“At Paramount Trailers, the MD and CEO make every effort to know and meet every customer.”

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TWA | Aug/Sep 2012

when designing and customising a trailer. Base information includes determining what the customer intends transporting in or on the trailer.

“Important variables include the need to establish where the customer will be operating the trailer – both the starting point and the point of delivery – as well as identifying the standard of the road infrastructure over which the trailer will be operating. All this data plays a role in the design process and finalising the running gear that will be specified for the trailer.

“A customer who orders the manufacture of a trailer for use outside South Africa may indicate he wishes to save costs by having a standard as opposed to an ABS fitted. This is not an option for trailers that are registered in South Africa and will be used within the country’s borders as the fitting of ABS is a legal requirement.”

Marques indicates that although transport operators have the primary responsibility of ensuring that their drivers receive training of an international standard, Paramount Trailers ensures that both the customer and their drivers are properly trained to operate more complex trailers.

“We manufacture more complex trailers such as link side tippers and feed bulkers. Additional training is required to ensure the efficient operation of this more specialised equipment. We introduced feed bulkers into our trailer range last year and have been satisfied with their acceptance in the market.

3 “Our trailer designs are constantly being updated to ensure that the trailers we build are lighter while maintaining their overall strength and robustness.”

Turning to challenges being faced by local manufacturers of commercial trailers, he says the recruiting of qualified, highquality staff remains an issue in the industry as it does in most sectors of the South Africa economy.

Attempts to grow business into Africa are being hampered by the strong rand/dollar exchange rate. South African products are viewed as being relatively expensive, despite their better quality, when compared with products manufactured elsewhere, especially products from China.

The Alrode-based company manufactures a range of trailers including, but not limited to, superlink (flat deck and tautliner), tri-axles and double axles (flat deck, skeletal and tautliner), tippers (side and rear end), as well as step decks, sugar cane and slopers.

COMMERCIAL VEHICLES • Heavy

LOW COST OF OWNERSHIP

A key element in successful market penetration Offering a three-year unlimited kilometre warranty, covering bearings and grease, has helped BPW Axles to substantially increase its market volume.

L

Andre Cilliers, MD of BPW Axles, in the factory south of Johannesburg, where the company operates an assembly line

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ow cost of ownership logged by hundreds of heavy transport operators in harsh Southern Africa conditions has resulted in BPW Axles growing at a rate faster than that recorded by the generic heavy-duty trailer market in South Africa.

Andre Cilliers, MD of BPW Axles says the company’s total market share is now 30% by volume, a substantial increase from the 5%, 14 years ago.

Although the company’s axles and air suspension products are premium priced, relative to the majority of such products in the market, they are covered by a three-year unlimited kilometre warranty that includes bearings on the hub.

“The warranty is one of the major points of difference between our products and those offered by other companies. Even so, in the European market our parent company in Germany provides a five-year warranty on these products.”

Cilliers points out that harsher conditions in Africa, coupled with often poor conditions of the road network in Southern Africa, resulted in the African market being classified as ‘off-road’ territory by the holding company.

“Our more robust designs carry a weight penalty because we source product capable of handling the road conditions

TWA | Aug/Sep 2012

and dealing with maintenance issues. There are transport fleets with maintenance at world-class levels and there are fleets that are poorly maintained.

“The longevity of axle bearings is directly related to the preload on the bearing. The nut on a BPW Axles unit has a built in torque limiter to ensure that it can’t be over-tightened and therefore the bearing always runs at optimum load. Our warranty includes the bearing and grease, and is made possible by the fitting of the unique ECO unit, which comprises superior seals, BPW long-life Eco-Li grease and the torque limiter.”

He states that design is a key element in enabling the achievement of the warranty in the local market.

The axle beams offered locally are a strengthened version of the European equivalent and are therefore thicker. The suspension trailing arm is the heavy-duty version Drum and and the lightweight air suspension disc brake is a heavier alternative. In addition, spring seats are welded in place of U-bolts to accommodate maintenance oversights.

“Although our products are heavier than the BPW Axles equivalent in Europe, they are still lighter than the local equivalent given that the majority of locally assembled axles and air suspensions are sourced from China.”

Apart from attempting to eliminate the need to replace certain parts, other elements of the BPW Axles approach are the combination of advanced design and use of high-quality materials to extend the lifespan of products as far as possible, as well as the incorporation of product designs that make the process of part replacement as quick as possible.

“We convert what are traditionally regarded as wearing parts and develop them to the point where they are non-wearing parts. This development has been achieved with the S camshaft on our braking system, which has been designed to last the life of a vehicle.

Our brake drums are designed to have a long life while our brake linings last longer and have been designed for quick replacement.”

The Johannesburg-based company imports axles and suspension parts from parent company BPW Bergische Achsen Kommanditgesellschaft in Germany. Fabrication and assembly to customer order are undertaken at the company’s factory on the Reef.

ge tru

BPW Axles (Pty) Ltd • PO Box 82545 • Southdale 2135 • Johannesburg Tel (011) 681-3300 • (011) 680-1443 • Fax (011) 680-1829 E-mail: sales@bpw.co.za • Website: www.bpw.co.za

BPW • THE QUALITY FACTOR

COMMERCIAL VEHICLES • Light

AUTOMATED MANUAL TRANSMISSION

Ensuring a smooth ride for in-town workhorses Three years ago, Isuzu Trucks was the first OEM to introduce automated manual transmission to selected N-Series models.

Since then, its proven performance, durability and fuel economy, as well as significant cost savings on parts and maintenance have led to many fleets standardising on the AMT offering.

No driver operated clutch

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TWA | Aug/Sep 2012

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he success of Isuzu’s automated manual transmission (AMT) has been so well received that fleet owners with heavy commercial vehicle needs are now able to choose from four F-Series AMT model derivatives.

With AMT, Isuzu Trucks have brought to market a truck that retains performance, durability and a fuel economy usually associated with manual transmission. This easy-to-drive truck ensures that the driver is able to focus completely on the road.

Based on a manual transmission, AMT models have no clutch pedal in the cab and only the gearshift lever, accelerator pedal and brake pedal are used. The trucks offer advanced technologies as wet-type multiple-disc clutch and fluid coupling, which have been introduced to achieve an easy-drive system suitable for commercial vehicles. In addition, use of an electromagnetic solenoid valve-type gear shift unit enables both computer-controlled automated mode and manual mode of transmission.

“This feature allows the driver to drive the truck in automated or manual mode without having to operate a clutch. Over the course of a manual transmission truck’s life, especially in high-traffic inner-city delivery applications, the clutch may need to be replaced between five to eight times, depending on the model and operating conditions. This comes at a substantial cost; with the AMT option this cost is saved,” explains Anton du Plessis, Isuzu Truck South Africa’s national sales and distribution manager.

Conservative value estimates showed a cost saving of more than R40 000 in parts and labour for lifetime clutch replacements over 500 000 km in stop-go metro distribution operations. This amount does not include opportunity costs for vehicle downtime, which is estimated at 10 days over the total distance, or towing and replacement trucks.

The total potential savings over four to five years is in excess of R60 000.

“Since we’ve introduced the AMT offering, many fleets have standardised on these models. Sales figures support this trend, with more than 50% of models (where both manual and AMT are available) being sold with the AMT option,” he says.

AMT is now also available in selected Isuzu F-Series models, giving fleet owners the same advantages and benefits of the N-Series range.

The F-Series AMT has a six-speed transmission, with features such as hillside assist for pull-off on a steep gradient when the truck is at full GVM. This feature is available in the FRR 500, FSR 800, FTR 850 and the FSR 750 AMT Crew Cab, which seats seven passengers in the spacious cab, making it ideal for applications that require crew to accompany the load.

COMMERCIAL VEHICLES • Light

TAKING ON COMPETITIVE MARKETS

In Europe, the Ford Transit light commercial vehicle has become a staple in its market segment and is set to become a new benchmark in South Africa early in 2013.

Ford Transit drives into SA

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irst introduced in 1965, the Ford Transit van has been the best-selling light-commercial vehicle in the European market for 40 years.

According to Ford, the Transit has become known for certain characteristics, including an ‘impressive’ load capacity and cost-effective maintenance and running costs.

With the intention of starting off on the right foot, the South African arm of this American automotive giant will not be importing original, older Transit models. Instead, the company will introduce its new seventh generation 1 t Transit Custom and Tourneo Custom, which were first unveiled at the 2012 Commercial Vehicle Show in Birmingham, UK. With features based on the original, highly successful

The latest, modern versions offer all-new, efficient drive trains 30

TWA | Aug/Sep 2012

‘tried-and-trusted design recipe’, the latest, modern versions offer all-new, efficient drive trains, a further driver-optimised interior and styling cues from the pervading Kinect Design styling philosophy.

The Transit Custom delivers a multi-faceted workhorse, while the Tourneo is suited to the transportation of people and can seat up to eight passengers.

While the Transit Custom’s 1 t cargo capacity is easily accessible through the double rear doors, it is also far more secure than the typical bakkie load bed, making it ideal for professionals needing to transport their equipment.

The car-like driving experience makes the vehicle easy to operate and ideal for the cut-and-thrust of city environments, while the cockpit clearly takes its inspiration from the latestgeneration Ford Focus, ensuring that occupants are comfortable and alert. It also offers a variety of safety features.

The model is likely to face a difficult time entering the South African environment as it will be competing directly with established rivals from VW (Transporter) and Mercedes

COMMERCIAL VEHICLES • Light

(Vito), among others, as well as challenging the South African multi-purpose bakkie. Although Ford products continue to be perceived as both reliable and affordable, the brand will need to prove these strengths quickly if the Transit is to become an African success story in an environment that is traditionally much more challenging than Europe or the US. An aggressive pricing strategy, which Ford is normally quite adept at, could also help, as there is space in the market for a sound product that undercuts certain competitors by a noticeable margin. If the company strikes the right price/performance balance with its new Transit, the local industry can expect to see this well-established brand name and its light vehicle Despite being a European sales range becoming a reguleader for four lar sight on South Africa’s decades, the city streets.

Transit faces a The new Transit Custom battle entering South Africa with and Tourneo Custom for the market’s South Africa will be built penchant for at the Ford Otosan plant more versatile in Kocaeli, Turkey.

1 t bakkies

REGIONAL CORRIDOR FOCUS

THE CAPE TO LUANDA ROAD CORRIDOR

Direct link to The need to upgrade and develop the many transAfrican highways for interregional trade across Africa remains a necessity for the economic growth of the continent. In many instances, they are in such terrible states of disrepair that they cannot be used.

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he Tripoli-Cape Town corridor is one such example and today remains far from finished.

This is rather surprising considering the project was first started by the United Nations Economic Commission for Africa during the apartheid era.

It is largely the critical sections extending above the Republic of Congo that remain problematic – primarily due to the lack of any road at all.

The southern section of the corridor, detailed below, links Cape Town to Luanda, on Angola’s northern coastline, and equates to almost 3 000 km of mostly useable tarmac. This portion of the corridor is an essential link for the continent’s SADC region in particular, and has received considerable attention in recent years.

The route • Cape Province Beginning on the N7 leading out of Cape Town, the road passes through the high-density hub in

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TWA | Aug/Sep 2012

REGIONAL CORRIDOR FOCUS

Luanda Malmesbury, the heart of the Swartland grain-belt, before proceeding in a northerly direction through Clanwilliam and Springbok, and ultimately culminating at the Vioolsdrift border crossing into Namibia.

Between Melkbos on the outskirts of Cape Town and Piekenierskloof Pass, completed in 1958, the road is generally in good condition and consists of a single carriageway with a paved hard shoulder in case of emergencies.

From this point to the first Namibian border crossing, the shoulder becomes gravel. A manual stop-go section was in effect on the N7 due to roadworks on the Piekenierskloof Pass itself, although these were scheduled to be completed by the end of June 2012.

• Namibia This border post is very efficient, open 24 hours a day and generally features a waiting time of no more than a day.

Thanks to the critical nature of this road artery for crossborder trade, there is a strong focus on efficiency at the border post. Both the towns of Vioolsdrif and Noordoewer on the Namibian side of the crossing are tiny, despite the importance of this corridor for African trade. Sufficient petrol and diesel are available in both towns to serve the significant

volumes of transport operators plying this corridor, and there are numerous camps provided near the border post for drivers to rest while the paperwork is processed.

The B1 route across Namibia is some 1 541 km in total and is paved for the entire length. There are numerous filling stations and rest stops along the way, the highlight of which might be the enormous B1 City Mall development just outside Windhoek, almost exactly halfway through the Namibian section of the route.

“The road in Namibia, and the border crossing at Vioolsdrif, has come a long way over the past two or three years. Today you can travel this corridor without compromising drivers’ safety, even in the rainy seasons. The border generally clears the freight very quickly with minimal corruption problems. The B1 fulfils all the fuel and rest-stop requirements drivers might need,” says Toelie Coetzee, Kamsberg Transport MD. The company provides refrigerated transport services in Southern Africa, including South Africa, Namibia, Angola, Botswana and Zambia.

Between Windhoek and the border post at Oshikango, the superior road quality of the B1 continues, with the corridor turning north-east at Otjiwarongo to skirt the Etosha National Park before heading north-west once more on the final run

TWA | Aug/Sep 2012

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REGIONAL CORRIDOR FOCUS

towards the Oshikango border post. Although driving at night can be hazardous due to roaming nocturnal wildlife, there are very few other dangers that may cause any delays.

• Angola The crossing at Oshikango (the border post between Namibia and Angola) will take another two or three days.

Hopefully, the recent Angola-South Africa development agreement will lead to improving this time delay. The route remains fair up till Xangongo, where drivers will have to negotiate a low bridge over the Kunene River that floods regularly in the rainy season. A new bridge is currently under construction to alleviate this potential delay.

Over the next 100 km, to Chitembo, the road surface is very poor and is usually impassable in rainy conditions. Speed on this section needs to be reduced to no more than 20 km/h to negotiate it safely. Beyond Chitembo, the tarred surface resumes once more and continues all the way to Cacula.

Past Quilengues there is a treacherous mountain pass that

The road surface is very poor and is usually impassable in rainy conditions

(Below) Kunene river bridge

34

TWA | Aug/Sep 2012

is too dangerous for truck drivers to navigate in wet conditions. Beyond this, the road surface reverts once more to dirt, until approximately 100 km outside of Benguela, where the tarred surface resumes.

Radio communication links with supervisors are essential during the journey between the border post and Benguela, as there is only occasional cellular reception, mostly at major centres. Satellite tracking is also not entirely reliable through the region, increasing the risk of loads being lost forever to criminal activity.

Finally, just before Sumbe, there is another slippery mountain pass to delay drivers and their loads. This is the last environmental barrier before finally rolling into Luanda to unload cargo. This portion of the corridor, as with Angola’s northern links, desperately needs infrastructure attention for this trade corridor to flourish.

Angola – a growing concern Coetzee is cautionary: “To be honest, we don’t run any freight as far as Angola anymore. I won’t even send my contractors into the region at the moment, due to increasing instances of corruption, which make journeys in the country unfeasible.

Locals team up with law-enforcement officials against foreign haulage operations. One favourite scam involves a local essentially parking an old banger in front of the large trucks and then claiming the trucker drove into them. The police will invariably be called and the upshot will be a US$1 000 (about R 8 215) spot fine, payable to the police and then shared with the so-called claimant – else the driver faces the threat of jail time, with the load then open to looting while the operator is incarcerated. This thinly disguised bribery is not covered by any insurance policy either, so these illicit costs come straight out of the profit the trip should generate.”

He continues: “We’ve also had all sorts of trouble at the actual point of delivery in Angola, because there’s often no admin on that side. The owner of the business simply claims that the load is ‘bad’, meaning it is often scrapped. To combat this, we need agents present or it is a costly trip for me to go and check the load personally to refute incorrect claims. Over and above this, the rates we are being offered along this corridor have decreased recently, delivering much smaller profits, meaning even one such incident decreases our profits even further, making the road corridor wholly unsuitable to sustainable freight business models.”

SUPPLY CHAIN LOGISTICS

A HOLISTIC ROUTE OPTIMISATION SOLUTION

An unquestionable

36

TWA | Aug/Sep 2012

SUPPLY CHAIN LOGISTICS

The necessity to tighten logistics operation costs has always been a key pillar of any successful transport business. Today it isn’t a competitive edge – it is an essential survival tool.

necessity

T

he solution or method to increase profits and boost growth is not to increase customer service rates, but rather invest in increased operational efficiency, which in turn drives down other associated costs.

With the additional post-financial crisis survival weight, it has become critical to deliver a lean business model.

Thanks to the continued evolution of technology, levels of operational efficiency have been unlocked, as has the opportunity to optimise the supply chain – an affordable and viable investment.

Continuous monitoring Tracy Cheetham, business development manager at Pathfinder Solutions, references Israeli physicist-turnedbusiness-management guru, Eliyahu M Goldratt: “People have a tendency to think that the more complex a problem, the more complex the solution should be to resolve it – when in fact the opposite is true. And I think in this industry that goes hand-in-hand with a mindset about the expense of a solution, when often it is not the case,” says Cheetham.

The late Goldratt was the originator of critical chain project management (CCPM), a process that has been proven since its introduction in 1997 to achieve the completion of projects 10 to 50% faster and/ or more cost-effectively than more dated best-practices such as CPM or Programme Evaluation and Review Technique. Much of the success of the model is attributed to the final stage of CCPM, namely continued monitoring of results, which delivers subWith additional poststantial optimisation benefits. financial crisis survival Cheetham continues: “It is weight, it is critical to deliver difficult to achieve a positive a lean business model outcome on costs and address customer service requirements at the same time, but software that allows you to configure your business rules into optimisation and route planning applications enables organisations to achieve this.”

Route optimisation software In the LogiX Fleet Management environment that Pathfinder builds its solutions on, the customer sets weightings for the variables involved. So for instance, customer service can be weighted higher than shortest distance, or the requirement for a full truck load before setting off. The system then runs the scenario and within seconds presents the bottom-line result of the route plan generated, which is then further tweaked and optimised until the required balance is achieved.

“There is no guess-work involved and you can run a variety of scenarios extremely rapidly. But this is only the start

TWA | Aug/Sep 2012

37

SUPPLY CHAIN LOGISTICS

It is one thing to have these systems in place, and another to make them applicable

of the process. Once you’ve established the business rules based on these priorities, your daily schedules are run accordingly; as business evolves and changes your customer profiles might also change. With these applications you should never be stuck to a single set of business rules. It is wise to re-evaluate periodically, and run a few more scenarios to see whether your business rules need to be tweaked. It is with this flexible mode that the real long-term advantages of route planning and optimisation are realised.”

Working together Marius Maré, director of consulting services at Ovation, looks even more holistically at the elements of the supply chain. “To give an example, if I plan and optimise a route, then I may use my own fleet to do that or I may want to use external logistics agents to handle some of the transport for me. Such agents also look after rate management, accounts payable and receivable, and all the other back-end administration, and only then execute resultant plan. Execution against the plan is as important as plan itself.”

38

It is in this execution phase that Ovation’s PlanForge engine comes into its own. Rather than a standalone software solution installed at the customer premise, the Ovation environment is a software-as-a-service or cloud-based solution, which provides different critical information dashboards via a standard web browser to all the parties that make up the supply chain. Customers are billed per load managed, eliminating a significant upfront cost, thereby delivering savings immediately with no lengthy return on investment period.

Naturally the solution also fully integrates with installed ERP systems.

Maré continues: “However, it is one thing to have these systems in place, and yet another thing entirely to make them practically applicable, particularly in a South African context. For me, the key to genuine optimisation is to get all the participants in the supply chain to work together with a common objective – a continuous improvement approach.

If I plan a multi-drop, fully optimised route, and the vehicle arrives at the first store on this route and gets delayed due to various different issues, then the execution of that optimised plan starts falling apart right away.”

Like Cheetham, Maré is also adamant that route optimisation yields the most positive approach in the longer-term scenario.

Ultimately Technology solutions that include comprehensive route planning and optimisation elements have become essential, but having these solutions in place is no longer enough. A holistic, end-to-end optimisation solution is the real answer.

TWA | Aug/Sep 2012

Email: Vincent@pathfindersolutions.co.za Tel: 072 235 5755 www.pathfindersolutions.co.za

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SUPPLY CHAIN LOGISTICS

FUEL FOR THOUGHT

How green is your supply chain?

The transport and logistics sector is one of the most visible supplychain contributors to global climate change. In Africa, road is the dominating mode of transport, resulting in an urgent need to curb the environmental impact of this sector. But is this possible?

S

imply looking at rising fuel costs and pollution, the need to address transport issues in Africa is compelling. Because transport is the fastest growing carbon dioxide (CO2)-emitting sector, with South Africa the largest contributor on the continent, calls for significant transformation are gaining strength.

Fortunately, there is plenty of room to iron out inefficiencies and reduce waste in transport and logistics. There are a number of green logistics solutions available, some of which have already been successfully implemented by some South African operators.

Route planning and biofuels Reducing so-called empty kilometres, which relates to proper transport planning, is a start. When additional and

unnecessary kilometres are ‘clocked up’, there is an economic impact as a result of additional fuel costs, as well as an environmental impact because of increased CO2 emissions. According to a CSIR study on the secondary distribution network of a South African grocery retailer, extra non-value adding kilometres accounted for more than R6.5 million in additional costs and 941 t of ‘extra’ carbon pollution.

Other opportunities to reduce waste in the logistics arena include redesigning distribution networks, optimising backhauls and routes, as well as consolidating shipments.

But complete modal shifts away from

Investing in green assets is another ‘route’ that can reduce environmental footprints

TWA | Aug/Sep 2012

41

SUPPLY CHAIN LOGISTICS

in the right direction and some companies are incorporating it in their fuel mix. However, the negative aspect to this is the possible threat to food security.

Investing in green assets Investing in green assets is another ‘route’ that can reduce environmental footprints. Acquiring vehicles to ensure minimum emission standards, such as advanced Euro 3 engines, offers a viable option to ensure green compliance. Then there are alternatives like nitrogeninflated tyres, zero-emission refrigeration equipment and responsible disposal of oil and tyres to consider.

Materials handling

Transport is the fastest growing carbon dioxideemitting sector, with South Africa the largest contributor on the continent

This industry sector is also starting to take enterprising steps towards ‘greening’ its operations by limiting energy consumption. Distribution centres are becoming more ecofriendly with solar panels being used to generate a significant portion of the power requirement, which is particularly suitable to the African climate and mitigates the power interruptions that have become part of the landscape in recent years. Furthermore, natural light is being optimised in warehouse design, motion sensors are being installed to automatically activate lights and air conditioners only when areas are in use, and conveyers are being upgraded to low-voltage options or operated based on demand. Even run-off water from warehouse roofs is stored for, among other uses, vehicle washing.

The viability?

road transport to ‘cleaner’ options are not always feasible in Africa due to infrastructure constraints. However, intermodal, collaborative logistics solutions, such as incorporating rail to move heavy-duty commodities like coal or iron-ore, should be brought back into the transport equation where possible.

As a result of soaring prices in the world oil market over the past few decades, there is a a need to move away from oil and use alternative energy sources such as biofuels, which would cut oil demand, provide energy security and prevent climate change. Biofuel is a step

42

TWA | Aug/Sep 2012

The perception persists that transforming into a green logistics operation will reduce profit margins because of the costs associated with acquiring eco-friendly technology and adopting similar processes and practices. However, research and case studies of actual business implementation are proving that by reducing energy consumption and waste, companies are increasing value and saving money, while also improving efficiency and performance.

Methods for green transport and logistics are numerous, and returns on ‘green investment’ are tangible. Additionally, Vision 2025 aims to have South Africa at a 30% clean energy level by 2025. There is a global impetus towards creating solutions to sustain business, the planet and its people, meaning greening isn’t going away.

Green logistics has become more than just another industry buzzword. It has become a business necessity, where companies that fail to implement innovative, cost-cutting, energy-saving and ultimately sustainable business practices will eventually lose their competitive edge.

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SUPPLY CHAIN LOGISTICS • Rail

RAILING THROUGH AFRICA

Locomotive frenzy Rail and logistics solutions provider RRL Grindrod is thriving on the back of growing demand for its locomotives and associated services, particularly from the mining sector, writes John Batwell.

T

he company recently acquired a combination of diesel and electric locomotives from Queensland National Railroad in Australia.

Shipped from Brisbane to Durban, they only arrived at RRL Grindrod’s Pretoria West plant in July, but have already found operating home ground. They will be mechanically reviewed before they are relocated.

New locomotives for the DRC The acquisition includes three 25 kV electric locomotives and six General Electric class 26 locomotives. The three electrics are earmarked for use on the nearly 60-year-old electrified rail section in the Democratic Republic of the Congo (DRC). Built by Comeng/Hitachi, the three locomotives look old, but they are mechanically sound. They are similar in performance to Transnet Freight Rail’s class 7E. Ten class 1720 Clyde GL18C type units from Australia, which last ran in 1995 and are also currently based at RRL Grindrod premises, are mechanically still in good order.

They will go ultimately to the DRC as well.

RRL Grindrod’s 3 000 hp locomotives also appeal to local mining companies

A General Electric U20Ctype locomotive in industrial use in the Free State

Mozambique The six class 26 locomotives (with 2 600 hp) are fitted with 7FDL-12 power units, and are designated C22-MMi 2000/2002. Some of these locomotives were transferred

to Pretoria under their own power via the Swaziland Railway system following Transnet Freight Rail’s barrier to diesel traction passing through tunnels on the main Natal corridor (Natcor).

Four of the class 26 imports will go to Mozambique to Brazilian mining giant Vale for use on the Sena line. The mining group initially deployed some of its own motive power at the Tete coalfields, but the locomotives have not proven as good as had been hoped in service.

A Mozambique refurbishment contract A second mining group in Mozambique, Rio Tinto, is moving coal out of the Moatize district to Beira harbour, and RRL Grindrod has secured a maintenance contract in Beira for the entire Rio Tinto fleet of locomotives and 200 wagons. Its 15 locomotives, which are an EMD-derivative, were supplied by the US-based National Railway Equipment Company’s Croatian assembly plant, TZV Gredelj. RRL Grindrod chooses to specialise specifically in three power packs – General Electric, EMD and Caterpillar – and can put out motive power within a 2 000 to 4 000 hp platform.

Tanzania A new contract in the pipeline is to rebuild a batch of class 64/65 Henschel-type diesel units for Tanzania’s state railway.

The generic rebuild will be undertaken at the Pretoria West workshops and then kits will be sent out to Tanzania. The project will facilitate skills transfer to Tanzanian rail personnel.

Sierra Leone RRL Grindrod recently secured a run-on order of fourteen 3 000 hp diesel locomotives for Sierra Leone, in addition to the original order of twenty S30SCC locomotives. The initial deal was financed by Standard Bank South Africa, which entered into two five-year loan deals totalling US$130 million (R1.07 billion) to help boost Sierra Leone’s economy. The banking group has backed African Minerals’ (AML) development of the first phase of the Tonkolili iron ore mining project to export ore to China.

Part of the first loan was allocated to RRL Grindrod to supply 20 locomotives on lease to AML, which are insured by the Export Credit Insurance Corporation (ECIC) of South Africa. The S30SCC units under

44

TWA | Aug/Sep 2012

SUPPLY CHAIN LOGISTICS • Rail

assembly in Pretoria are to work on a 200 km rail link from Tonkolili district to the port of Pepel. Three to four of the locomotives can be lashed together in ore haulage.

The attractive 3 000 hp locomotive Besides the Sierra Leone contract, RRL Grindrod’s 3 000 hp locomotives appeal to local mining companies, with one already built for ferrous metals miner Assmang and a second for Kumba Iron Ore. Vale’s Mozambique arm has expressed an interest in three of these units, to be used for coal haulage. CFCO (Chemin de Fer CongoOcéan), the Congo Ocean Railways linking Pointe Noire with Brazzaville in the Republic of Congo, will take delivery of the last two of a batch of four single-cab locomotives that have been fitted with EMD 645 E3B engines and frames to meet an 18.5 t axle load.

Rebuilds

Grindrod is very excited about its prototype R7I (Integrated) shunting locomotive. The prototype is fitted with a 700 hp Caterpillar engine. Valued at R7 million, two of these ‘dinky’ low-profile locomotives have three individual wheelsets instead of bogies and can be crewed or remote control operated. RRL Grindrod envisages a market for 400 or so of this smaller shunt locomotive.

Underground locomotives also feature in the company’s diverse tasks. Goodman mine locomotives were undergoing adaptation during the site visit, and a micro-turbine small mine locomotive for Zambia’s Copperbelt was present.

RRL Grindrod works with Racec in track maintenance contracts. To this end, the workshops took Transnet Freight Rail’s AY-wagon type, which is a ballast wagon, and designed 16 such units of its own, which can be transported to the particular maintenance site by road.

All in all, RRL Grindrod represents a vibrant, homegrown rail company that is not only proving essential to rail growth and development within South Africa’s borders, but is well on track with its state-of-the-art work for other rail expansion, development and progress along the length and breadth of the African continent.

Because rebuilds are expensive and require the right skills, RRL Grindrod is fortunate to have staff who have gained this experience in other South African rail companies. It is, however, aware of the need to empower new people and to this end it has developed its own training programme.

One of the four locomotive rebuilds for Richards Bay Coal Terminal was Who is RRL Grindrod? on site for maintenance during a RRL and Grindrod merged three years ago and is a 50% black-owned joint venture recent site visit by Transport World between Solethu Investments and Grindrod. The company, with a staff complement Africa. A CFM GECT/Alsthom-built today of 300, started out as a parts’ business before going into the motive power business. Today, as a leasing company, RRL Grindrod has a fleet of some 70 AD26C locomotive was being relocomotives. The RRL Grindrod label or brand can be seen in Mozambique, the engined with a 3 000 hp power unit Republic of Congo, the DRC, Sierra Leone, Ghana and Tanzania, over and above its rail service to seven mining companies in South Africa. The business provides motive as an experiment and forerunner, power leasing, rail operations, shunting, rolling stock maintenance services and which – if successful – will help rebuilding, as well as track maintenance through its subsidiary Racec. secure the remaining set-aside fleet The company‘s locomotive fleet comprises a number of former Transnet Freight Rail classes of diesel units, including 31, 33, 34, 35, 36 and regauged class in neighbouring Mozambique.

New prototype and models On the local mining front, RRL

(Clockwise from top left) The Rio Tinto GT26CU type diesel units that RRL Grindrod will maintain in Mozambique; One of the 34 S30SCC-type locomotives out shopped for Sierra Leone; Former Queensland National Railway class 26 locomotives newly arrived in July at RRL Grindrod, west Pretoria; A CFM AD26Ctype locomotive undergoing engine replacement in the RRL Grindrod workshops

91 locomotives.

RRL Grindrod has six assembly stations for building powerful locomotives for industry. The under frames are built internally, while cabs and hoods are contracted out. Atchison bogies are are fitted. Assembly is a 12-week process in all.

TWA | Aug/Sep 2012

45

T O S G U E I H N D R E TU OM DU LO GY RE MM IN CHN EN RUC C IND CH EN UCT OIL C G E E L N T RT UC C IN NO ER TU CO G T T TR E TE R T AST OI NG N R IL G H EN UC L E I O O E T I OR AS TUR E P FR RE IN N I C I R P R C NC NSP AS O NIN TEC T S ST E O M IEN AN IN TU M IEN NS INF UL R E MI E R A F A IC R IN UR C PO FR UR CH SC TR S UL CH SC TRA S R LO N H T S C N R G T I R O N E N C L S N A N ICU AR SCI RA S I CUL SEA M CE TIO GR EA ISM CE TIO HN S S Y N A A E I C I N T E R R A R N R R E S TE UR INA NIC RY R OU INA NIC ST AG RE ISM CE TIO AG Y O F U Y T T U F U T R N A G CE GY OU NA NIC RY LO Y RE MM DUS LOG GY RE MM IND N E G U O N O R U O I T FI U ST O SC Y E MM DU HN NER UCT L C G I HN NE CT C ING I E RU IL IN UR CO IN TEC T E STR O NIN TEC T M O M T I IS R AST E C IL NG E E R A R E M R O H O INI NC SPO NFR TU H NC RC I UL RC IE A M CIE AN E S R NS RIC EA SC ES T IO G ES CH R M M Y IS NCE CAT Y A Y R RIS NC I R G C RY OG U A I A N L O N N T O N RT O FI MU US OL Y T FI MU UST NO P M D N G E M D H CO IN ECH ER TUR CO IN TEC N C G G IN E T T E RU OIL IN CE N C N S T I R EN PO RAS RE M CIE AN S R NS INF LTU RCH T O F T A R S ICU EA ISM CE ATI AG R Y E Y R G S R N C R ON AG RE OU NA NI TRY LOG ER CTU U I T F M US O EN U Y RY OG GY RE OM ND HN I C C OL NER TU E • 853 million people • 6.4% GDP growth in 2012, and more beyond

AFRICA

RISING S Sub-Saharan Africa set for a boom in 2012 and beyond

COMPARING APPLES WITH APPLES, the purchasing power parity (PPP) index of final household consumption expenditure in Sub-Saharan Africa, using the average 2005 US dollar exchange rate as a constant, was last reported at $832 008 892 761.36 in 2010 - according to the World Bank. It is now 2012, and Africa has grown even more. Household final consumption expenditure is the market value of all goods and services, purchased by households, including durable products such as cars, washing machines, home computers and other items. Exports of durable products such as foodstuffs and pharmaceuticals to Africa have also increased substantially.

Household final consumption expenditure (PPP USD 2005 = ZERO) in Sub Saharan Africa

Intraregional supply chain solutions from producer to consumer

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SUPPLY CHAIN LOGISTICS • Road • Air • Sea ROADS

which covers almost 1 200 km from Arusha to the Rusumo border post via Babati, Singida, Nzega, Isaka and Nyakanazi. After the inspection he commended Tanzania for rehabilitating as well as maintaining the roads on the Central Corridor.

“I am amazed that we travelled on wellmaintained tarmac roads all the way from Arusha to Rusumo border, connecting Tanzania and Rwanda, apart from small stretches that are being worked on,” he noted.

On the way to Rusumo, Sezibera met Tanzania Revenue Authority officials at the Isaka TRA checkpoint, one of the three checkpoints on the corridor, who briefed him that on average they receive 100 container trucks, about 40 fuel tankers and 35 saloon cars per day, and they take between 5 and 10 minutes to clear the vehicles.

At the Rusumo border post, the secretary general was informed that Tanzania and Rwanda

EAC chief impressed with road to Rwandan border THE EAST AFRICAN Community (EAC) secretary general, Dr Richard Sezibera, has said that he has been impressed by the progress of road works linking Arusha, Tanzania, with Rwanda, via the Rusumo border.

Sezibera, who recently undertook an on-thespot assessment of the status of the roads along the EAC Central Corridor Road Network Dr Richard Sezibera, Project, said he was secretary general, pleased with efforts by EAC the Tanzanian government in upgrading almost the entire central parts of the country to tarmac level.

Sezibera made a surprise tour along the road,

SHIPPING

factor, but those values are also 30% higher compared to, for example, Africa’s newest nation, landlocked South Sudan.

“Dar es Salaam and Mombasa ports have cumulatively experienced an annual average growth in cargo throughput of an estimated 8.8%,” Langat explained adding that the ports have failed to keep up with the rate of growth and, as a result, have experienced delays and congestion over the past decade.

The Northern Corridor, which links Mombasa to several of the East African landlocked nations, and its counterpart the Central Transport Corridor, which connects Dar es Salaam to these same countries, accounts for annual cargo volumes in excess of 10 Mt and a combined transit and trans-shipment traffic of more than 2 Mt. “Trade along these corridors has a positive impact on the region and many initiatives have been undertaken to improve efficiency,” he underscored, but noted that bureaucratic clearance and congestion consumes time and money. He said other factors limiting trade in the region are inadequate physical infrastructure and national policies that are incompatible with the EAC goals for regional integration. He emphasised the need for special attention to swiftly resolve factors undermining the shipping business or face losing business to the Port of Beira in Mozambique where, apparently, the costs are more reasonable and the services are efficient.

High transport costs worry East Africa shippers

DESPITE THE CONSIDERABLE lack of trade restrictions across borders, high transport costs are emerging as the new business hurdle for East African ventures. This was a concern raised by the CEO of the Kenya Shippers Council, Gilbert Langat, in Nairobi during the council’s meeting on Logistics Performance Index for East Africa.

Shipping is seriously hampered by the current pace and, according to the report, it is back-pedalling regional economic growth by at least 1% per annum. The most affected are EAC landlocked partners like Burundi, Rwanda and Uganda, whose development heavily depends on transit solutions from neighbouring Kenya and Tanzania.

He said the transport costs in East Africa were between 60 and 70% higher compared to the US and Europe. High level of development in those continents maybe a scapegoat

Source: The Guardian

had signed a memorandum of understanding for 15-hour operations that was being implemented by both sides.

The secretary general toured the proposed site of the Rusumo one-stop border post (OSBP) where construction work has started on the Rwandan side of the border. The EAC is adopting the use of OSBPs as a trade facilitation concept to minimise delays at cross border points on major transport corridors in the region. The delays are often a result of poor facilities, manual processes, lengthy and unintegrated procedures and poor traffic flow.

It entails combining two stops into one and consolidating functions in a single public facility for exiting one country and entering another.

The effect is reduced travel time for passengers and cargo vehicles. Sezibera urged the business community to take advantage of the good road network to expand their businesses in the region.

Source: allafrica.com

AVIATION SAFETY

Kenya Airways inks deal with US firm KENYA AIRWAYS AND US-based GHS Aviation audit safety group has signed a deal to enhance Africa’s aviation safety.

GHS will set up an International Air Transport Association (IATA) safety operation audit facility at Kenya Airways to serve the African continent.

“With the aviation safety audit office in Kenya, Africa’s aviation industry will be able,

for the first time, to access world-class safety standards within the continent,” GHS president Captain George Snyder told journalists.

The agreement came a few months after the African ministerial conference on aviation safety, held in Abuja, acknowledged the slow pace of the continent’s operational safety enhancements due to systemic deficiencies and lack of technically qualified personnel. GHS is one of few accredited organisations allowed to carry out IATA Operational Safety Audits (IOSA).

Snyder said the deal will ensure the continual safety, security and reliability of Africa’s air transportation industry as measured by global standards. Regional safety statistics of 2011 showed air transportation in Africa is almost nine times more dangerous as compared to the global industry’s average level.

Source: www.bernama.com.my

TWA | Aug/Sep 2012

47

PUBLIC INFRASTRUCTURE

CASHLESS IS KEY

The eThekwini public transport tip-top Commuter transport in eThekwini has taken a giant leap forward with the launch of the Muvo cashless card.

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fter successfully piloting the card in June 2012, the eThekwini Transport Authority is rolling out its first cashless transport smartcard to commuters using its PeopleMover buses.

The Muvo card is a key driver in the plan to improve public transport in the city. The KwaZulu-Natal Transport, Community Safety and Liaison MEC, Thembinkosi Mchunu, underlined public transport’s central role, pointing out: “Three out of four residents use public transport on a daily basis. Our services must therefore be safe, reliable, efficient, fully integrated, accessible and affordable.”

The Muvo card is a first for South Africa as it can be loaded with both cash and transport products, making transport within the city both cashless and ticketless. 50 000 cards will be KZN Transport MEC, issued to the public free of charge until Thembinkosi Mchunu 30 September and can be obtained from Muvo kiosks at bus depots, at 10 of the municipal Sizakala centres and at 14 mobile Muvo smartvans.

Powered by Standard Bank and delivered by its innovation arm, Beyond Payments, and transport IT specialist Almex, the card is an anonymous debit MasterCard. It is pre-funded and reloadable, and can be used as a standard EMV MasterCard, as well as in a contactless environment enabled though the MasterCard PayPass contactless technology.

Cardholders can load trips for journeys on Durban’s bus system as well as load a cash balance to purchase goods and services at any vendor displaying the MasterCard sign.

“Three out of four residents use public transport on a daily basis.”

Trips using the Muvo card are sold at a discount to fares charged using cash or tickets.

When using their cards, commuters pay for bus trips by tapping the card against the electronic ticketing device installed on the buses, which automatically debits the correct amount and presents the commuter with a receipt. The entire process is much faster and neither commuters nor bus drivers have to handle cash or bus tickets. This is believed to be the first time that transit tickets are hosted inside a banking application on an EMV contactless card and the first time that a card of this nature has been deployed in South Africa in full compliance with the national Department of Transport’s regulations.

Compliance with the department’s regulations also allows for the system to be adopted by any municipality.

Up to R3 000 can be loaded onto a Muvo card in one month, and it can carry a maximum balance of R1 500. The maximum payment per transaction is R200. For additional security, Muvo card owners will have to enter a PIN number when they load cash and when purchasing items other than bus trips.

No PIN is required for the ‘tap and go’ option on the buses.

Thami Manyathi, head of eThekwini Transport Authority, explained the city’s vision for an Integrated Rapid Public Transport Network (IRPTN). “Initially, the Muvo card will be used on our buses, but as the IRPTN is phased in, it will be extended to other modes of transport. To educate commuters about the Muvo cards, we have initiated an extensive publicity campaign and have deployed brand ambassadors across the city,” he said. With no monthly charges, the card offers a new level of security and convenience.

MEC Mchunu said that the introduction of the Muvo card is just a first small step in a long process. “Over the next 10 years, the province and the city of eThekwini will be working with communities to deliver a world-class integrated transport service to the entire province for the benefit of all its citizens,” he concluded.

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TWA | Aug/Sep 2012

27 IBC 31 17 13 15 7

Emirates Sky Cargo Engen Petroleum Limited Isuzu Trucks SA Mercedes Benz Freightliner Mercedes Benz SA NC2 Trucks Paramount Trailers

OBC 18 & 19 29 43 OFC 35 25

Pathfinder Logistic Solutions Scania

38 8&9

Shell Lubricants

23

UD Trucks

IFC

Volkswagen Commercial Vehicles

39

TAP AND GO! Forget the frustration of fumbling for fare.

Now your customers can Tap and Go in 3 easy steps!

1 Get the card & load it with money.

2 Tap the machine to pay.

A new ticketing system from Almex and Beyond Payments, a division of Standard Bank, allows commuters to pay for their bus, taxi or train tickets by simply tapping their EMV smartcard on a scanner– no cash needed! EMV smartcards are sold at self-service kiosks and can also be used at shops to pay for goods and services.

Super fast, safe and secure, you can get on with keeping your passengers happy while we take care of payments.

For more about our turnkey ticketing payment solution, call Mike Hughes on +27 11 489 3300

3 Be on your way.