Transport World Africa July/August 2013

ENDORSED BY

Intraregional supply chain solutions from producer to consumer

ROAD Reinhardt Transport dominates

SEA

Freight forwarders‘ role in ports

AIR

LOGISTICS

Growth in Africa's freight cargo

Design for change in the Vested model

Worldwide range IN T THE HOT SEAT

Cargo Carriers’ Andre Jansen van Vuuren

Organic sustainable growth P8

ISSN 1684-7946 ISSN July/Aug 2013 Vol. 11 No.4 / R40.00 incl.

VAT 1684-7946 Mar/Apr 2013 Vol. 11 No. 2 / R40.00 incl. VAT

ENDORSED BY

Intraregional

ROAD

Reinhardt Transport dominates

SEA

Freight forwarders‘ role in port s

AIR

Growth in Africa's freight carg o

Intraregional supply chain solutions from producer to consumer onsumee r

supply chain

soluƟons from

producer to

consumer

LOGISTICS

Design for change in the Vested mod el

COVER STORY TOR RY MAN TGS World Wide range ange

INSIDE

P4 P 4

World range wide IN TH T E HO T SEAT

Ca

rgo Carrie Organic su rs’ Andre Jansen van stainable growth P8 Vuuren

THIS ISSUE E

ISSN 1684-7

946 ISSN July/Au 1684-7 g 2013 946Vol. Mar/Ap 11 No.4 r 2013 / R40.00 Vol. 11 incl.

VAT No. 2 / R40.00

REGULARS

Reinhardt Transport - Dominant transport operator

2 3 4

Editor’s word – Trucking into the future FESARTA – Barney’s comment Cover story – MAN TGS WW range

IN THE HE

8 HOT T P8 SEAT T

C Cargo Carg Carriers’ Andre Jansen van Andr A Vuuren on organic Vuur V sustainable growth susta s

Paramount Trailers continuously expanding Namibia to become a logistics hub Eastern Cape ports to boost industry Ports – the international forwarder’s role

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The strategic role of supply chains

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SUPPLY CHAIN LOGISTICS SAPICS – Design for change

FEATURE

In Africa, cash is king?

36 38 41 42 44 46 48

AIR CARGO

COMMERCIAL VEHICLES 16 20 22

Smarter trucking Epic journey for ultra-size bodies In-house financing – the advantages

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NAMPO - Growing arena to showcase product

Avoiding the pitfalls of short-term insurance

10

Regional news

MBSA - Improved fuel efficiency

incl. VAT

50

Africa freight growth

DRIVER OF THE YEAR 52

Engen drivers compete

14 20

42

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TWA | Jul/Aug 2013

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EDITOR’S COMMENT

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ATTENDED THE annual conventions of both the Road Freight Association (RFA) and SAPICS and it was great hearing how both the trucking industry and the logistics sector are continuously looking for ways to improve productivity, bring down costs and ensure sustainable business models moving forward.

Delegates at the RFA convention were under no illusion about the effects of the fuel prices and pending e-tolls – and yes the latter is an emotive issue for everyone. At the end of the day we are all going to have to pay in one form or another.

How this extra cost will affect households will only be felt once tolling is implemented, and my view is that everyone will feel the pinch in their pocket, irrespective of what Sanral has been telling the mass media. Transport operators are going to have to pass on the extra costs to the consumer.

It will be interesting to see whether freight operators will change their business models and start delivering goods outside of peak times (thereby benefiting from the reduced e-toll tariffs). This will mean a change in mindset among the workforce who will have to work at night instead of during the day.

I remember when Fast ‘n Fresh (before it was incorporated into Imperial Logistics Refrigerated Services) was delivering produce to Woolworths at night. It made perfect sense to me, but the workforce need to see the benefits in order for it to work efficiently. Yes, the company will have to provide transport to ferry the workforce to work, but the long-term benefits far outweigh the cost. Benefits could include a more efficient productivity and an improved fuel efficiency, due to less congestion on the roads.

Let us see what the future has in store for the trucking industry as and when toll roads start being implemented, not only in Gauteng but in other parts of the country as well.

When toll roads were first mentioned over 10 years ago the then minister of transport, Mac Maharaj, said it would start in Gauteng and then be introduced to other parts of the country.

Interesting times ahead!

In this issue we look at MAN’s TGS WW range, feature Reinhardt Transport to get an overview of the successful transport operator, speak to those who attended NAMPO, touch on what was discussed at both the RFA and SAPICS conventions and look at what happened at the inaugural Eastern Cape Port & Maritime conference as well as the role of freight forwarders in South Africa’s ports.

As always, a varied read – enjoy!

Trucking into the future

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Publisher Elizabeth Shorten Editor Simon Foulds • simon@3smedia.co.za Head of design Frédérick Danton Senior designer Hayley Mendelow Designer Kirsty Galloway Contributors Barney Curtis Chief sub-editor Claire Nozaïc 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

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

www.3smedia.co.za Annual subscription: R290 (incl VAT) subs@3smedia.co.za ISSN 1684-7946 © Copyright. All rights reserved.

All articles herein Transport World Africa are copyrightprotected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the publishers.

FESARTA COMMENT

by Barney Curtis, chief executive officer, FESARTA

Concerned about state of affairs

I

am seriously concerned about the slow progress being made with respect to the road transport harmonisation and standardisation projects at the COMESA/EAC/SADC Tripartite level.

The Tripartite Alliance has a Comprehensive Tripartite Trade and Transport Facilitation Programme (CTTTFP), which directs the Regional Economic Communities (RECs) through their implementing partners, e.g. the TradeMarks, on what projects to carry out.

The outcomes of these projects become the recommendations to member states with the understanding that the member states will incorporate the recommendations into their national legislations.

The CTTTFP includes the harmonisation of third-party insurance, road user charges, vehicle standards, vehicle fitness, abnormal loads and dangerous goods, as well as customs transit bond, load limits and overloading control.

It also includes transport liberalisation (or market access), integrated border management and self-regulation.

Meetings are held each year with the relevant stakeholders – FESARTA, regional associations, government representatives, donors, etc. – to thrash out the recommendations.

Several of the items listed above, e.g. road user charges, have been debated for years and we are desperately in need of finalisation.

If the projects do not proceed fast enough and produce outcomes, member states are left in the dark as to how to update and upgrade their legislations to best facilitate intraregional trade in East and Southern Africa. And, as we all know, if there is no clear direction, some undesirable national legislation is likely to be introduced.

Such legislation, if not conducive to facilitating intraregional trade, will create even more obstacles to transporters moving goods along our corridors. Such obstacles result in poor and costly transit times and increase costs to the consumers in landlocked countries.

The result is more non-tariff barriers into the Tripartite system. The situation at present is not good and very few meetings to agree on regional recommendations are being held.

It is true that there is no point in holding a meeting if no progress is made between the meetings. This progress normally requires that the representatives of member states do work in their own countries and provide the outcomes

of this work to the REC secretariats. Or requires contracted consultants to do the work on behalf of either the national governments or the regional secretariats.

We have found though that if the RECs do not continually apply pressure to the member states’ representatives, then productivity is low.

FESARTA believes that the problem lies both with the capacity of the RECs to carry out the work and the funding from the donors for the meetings. The final analysis shows that it is the lack of funding from the donors that is the most problematic.

We know that with the 2008 crash and the precarious financial situation prevailing throughout the Western world, the donors are tightening their belts.

FESARTA will continue to lobby for a speedier process.

Overloading affects road conditions

Barney Curtis.

TWA | Jul/Aug 2013

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COVER STORY

FUEL SAVINGS

MAN TGS WW range Vehicles of the TGS Worldwide (WW) range represent the consistent, ongoing development of the range and are famous for their toughness and reliability. They are designed for the toughest of operations as a semi-trailer tractor, chassis and tipper in the African, Russian and the Middle and Far East markets.

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COVER STORY

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REMIUM TRUCKS OF the proven Trucknology Generation provide the basis for economic and safe transportation with a gross weight of 18 to 41 tonnes.

Consistently efficient drive The efficient and economical common rail engines from the D20 to the D26 ranges in the exhaust-gas emission classifications of Euro 2 and 3 deliver ample power ranging from 360 up to 480 HP. All engines from this range are ideally suited for operation in extreme climatic zones. The TGS WW is particularly impressive in high ambient air temperatures thanks to its large radiator concealed behind the newly designed cab front.

Durable, heavy-duty and rugged The tough, heavy-duty suspension and frame components on the TGS WW, proven by its predecessor, the TGA Worldwide, fulfil the hardest requirements. Whatever the transport task in short- and long-haul transport or cross-country, the TGS WW has just the right vehicle with two, three or four axles.

Ergonomic and sturdy cabs for daily use MAN offers three different-sized cabs for the TGS WW range: the day (M) cab for tasks on building sites or in short-haul and distribution transport, the L cab is 400 mm longer with a single sleeper bunk for spending the occasional night or resting in the truck, and the spacious LX cab is fitted with double sleeper bunks for longer tours.

The ergonomically sophisticated arrangement of controls in the cabs makes driving safe and stress-free. Last, but not least, the cabs’ new design and improved aerodynamics reduce fuel consumption and sink carbon dioxide emissions.

Safety for drivers and business operators The modern electronics structure of the TGS WW makes it possible to introduce innovative driver assistance and safety systems. Shorter downtimes and less damage give operators the opportunity to complete their transport contracts efficiently and reliably.

Range for South Africa Livingstone Mulaudzi, senior product manager at MAN Truck

& Bus, tells Transport World Africa why the MAN TGS WW range is ideal for the African market.

How has this range of extra-heavy-duty trucks been designed and priced specifically for African countries?

The TGS WW series is equipped with cooling and air intake systems that are specifically designed for extreme terrain and harsh climatic conditions. The engines are based on the latest technology but have been designed to be tolerant of diesel with a high sulphur content.

How does this range of trucks ensure optimum performance in diverse local applications?

There are a wide range of variants available to suit different operations from on-highway applicationss a alll the wa w wayy to extreme off-road ad all-wheel drive applications.

What type of conossifiguration possihere bilities are there GS within the TGS WW range?

There are a wide range of possissibilities, including ding 4x2, 6x2, 6x4, 6x6, 8x4 and 8x8 drive TGS 26.440 specs A lighter 7.5 tonne capacity front axle and spring combination is fitted.

This reduces the weight by 65 kg.

Low weight aluminium rims will also reduce weight by a further 200 kg.

These are optional extras on the TGS 26.440 6x4 BLS - LX.

TWA | Jul/Aug 2013

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COVER STORY configurations. In each of these there are further options for type of cabin (day, single and double sleeper), wheelbase, tyre configurations (single wheel vs dual wheel) and chassis ride heights. In each of these variants there are options that can be selected to make the vehicle suitable to a specific application, such as dropped front axles, hypoid drive axles, air suspension and plastic front bumpers being suited to on-road long distance vs a straight front axle, hub reduction drive axles, steel suspension and steel front bumper, which is suitable for an arduous application. Examples of arduous applications would include timber, mining, waste management, construction and firefighting.

What types of extra-heavy-duty vehicles are available within the TGS WW range?

Standard in the range are the TGS 33 tonne off-road oriented vehicles. These range from 360 hp to 480 hp with straight front axles and hub reduction drive axles. We are also able to supply heavier vehicles in the 40 and 41 tonne ranges, with 6x4, 6x6, 8x4 and 8x8 configurations. These vehicles are designed and manufactured to also pull higher gross combination mass. Our abnormal load vehicle is rated for 160 tonne GCM. Most of our vehicles are fitted standard with a heavy-duty power take off suitable for prolonged operation.

How has the new range been fine-tuned to reduce fuel consumption?

The range makes use of latest generation common-rail diesel injection engines with wide torque and power bands coupled to the MAN TipMatic automated manual gearbox and a choice of hypoid and hub reduction axles with tailored axle ratios. Locally, we offer two options of MAN TipMatic functionalities: the Off-Road and Profi options, which respectively offer distinct advantages for driving in off- or on-road conditions. This, in turn, influences the fuel efficiency.

How user-friendly is the redesigned cab for the driver and wha what elements are incorporate rated to ensure driver comfort and safety?

The cabs are extremely user-friendly!

All controls co fall within easy reach of the driver, information displays are large drive and clear, c the drivers’ seats are all air suspended and in certain long-haul susp oriented models the cabin is air susorien

Fuel economy, driver comfort and peace of mind from the classleading warranty are just a few of the benefits pended to give a more comfortable ride. Features include the TipMatic Gearbox, which handles all the gear change duties, and

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TWA | Jul/Aug 2013

MAN BrakeMatic, which integrates all braking systems through blending and re-blending, allowing the driver to concentrate on the job of driving the vehicle. From a safety perspective, certain models are fitted with ESP (electronic stability programme) and ASR (anti-spin regulation) as standard. Optional features such as LGS (lane guard system) and ACC (adaptive cruise control) also add to the drivers comfort and safety levels.

What makes the TGS WW range the extraheavy-duty truck of choice?

Fuel economy, driver comfort, peace of mind from the classleading warranty, and the repair and maintenance contract rates are just a few of the benefits. The fuel efficiency and warranty of the TGS WW drives the operating cost down.

What type of transport operators would benefit from utilising the TGS WW range?

All operators of extra-heavy vehicles will be able to benefit from one of the many configurations of MAN vehicles. The class-leading fuel efficiency makes TGS WW an ideal longhaul truck, while the robust chassis, axles and medium build height construction makes the TGS WW suitable for on- or off-road conditions.

Why was the recent deal with the Reinhardt Transport Group described as being a landmark deal?

It was the largest single order placed with MAN and was due to the massive savings that can be achieved by an operator when using the highly fuel efficient TGS.

What makes the MAN TGS 27.440 BBS 6x4 truck tractor the perfect vehicle for operations at Chrome Carriers, part of the Reinhardt Transport Group?

The D26 Common Rail 440HP engine is ideally suited to the application in terms of power, torque and fuel economy where chrome loads of between 33 and 34 tonnes are being transported over long distances. The combination of MAN TipMatic automated manual gearbox with Intarder and single reduction drive axles makes for a very efficient drive-line when used in long distance transport, both in terms of fuel efficiency and driver comfort. The TGS 27.440 BBS is equipped with parabolic steel suspension, which makes the vehicle versatile in terms of road conditions. These vehicles were also fitted with a heavy-duty clutch dependent PTO rated of continuous operation. The model ordered by Reinhardt also has a steel front bumper, which increases the approach angle of the vehicle when being used on mines; this reduces the risk of damage to the front bumper, which adds to maintenance cost savings

How optimistic is MAN regarding the future growth of sales of the TGS WW ranges of vehicles in both South Africa and Africa?

Very optimistic. This is due to our very good record for low fuel consumption and the increased focus in the industry on reducing costs and lowering the carbon footprint, which MAN can positively contribute toward.

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.

HOT SEAT

CARGO CARRIERS

Cargo Carriers’ transformation into a logistics and supply chain management specialist has resulted not only in renewed and expanded contracts with its existing clients, but also a high growth rate in new clients. Customised solutions have ensured the company maintains its excellent relationships.

Organic, sustainable

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TWA | Jul/Aug 2013

HOT SEAT

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ARGO CARRIERS HAS been in business since 1956 and has made a name for itself as a reliable, efficient and ethical haulier. When the company listed on the JSE in 1987, it was one of the largest privately owned transport operations in Southern Africa. In 2002, after more than 40 years in the transport industry, Cargo Carriers began a complete overhaul of its business operations, becoming a client and industry-centred specialist in logistics and supply chain management.

growth A decade later, the business is experiencing real turnover growth domestically and has added another 20% to its top line in SADC business.

The marketing director of Cargo Carriers, Andre Jansen van Vuuren, attributes the high growth rate to Cargo Carriers’ ability not just to attract new clients, but to service existing clients to such a degree of satisfaction that they expand their contracts. “You have to be doing something right to realise this type of growth,” he says.

He lists a number of the factors that contribute to ‘the Cargo Way’: upgrading and expanding its fleet with vehicles so that they are not only more fuel-efficient, but also create lower carbon emissions; improving Cargo Carriers’ BBBEE rating from a level 7 to a level 4 in 10 years, which gives access to a broader client base; innovative programmes such as the owner-driver initiative; capital investment in regional, industry based and high-level BBBEE subsidiaries; and the achievement and maintenance of stringent safety, health, environment and quality (SHEQ) standards. “But the biggest single driver of growth,” he maintains, “has been Cargo Carriers’ ability to maintain excellent relationships with existing clients, some in excess of 40 years, by delivering custom-tailored logistics and outstanding service levels.”

logistics software allows the tracking and tracing of all loads throughout their journeys and driver performance is monitored closely by on-board technology. Backloading is essential in ensuring an optimised supply chain. Innovations in both technology and operations are the key to client-centred value creation.

In 2013, ArcelorMittal South Africa awarded Cargo Carriers an additional contract to transport its pitch and tar – a fuelsource produced at Vanderbijlpark that has to retain a constant temperature of 200°C while it is transported to furnaces in Richards Bay, Mpumalanga and Zimbabwe.

The company also holds contracts for bulk-haulage of cement with two leading industry manufacturers, both of which have expanded their business with Cargo Carriers – a sign of increasing activity in infrastructure development, but also of the confidence they have in their logistics provider.

Various contracts within the fuel, chemicals and gas markets have also been secured.

Expanding footprint Cargo Carriers’ capital investment in BHL, a transportbased logistics operation in Zambia, mbia, has allowed that business to increase its fleet by 40% and take advantage of increased demand for mining, industrial and agricultural chemicals in the region. More importantly for the logistics group, up, it has allowed them to offer a comprehensive and d integrated service to clients who are increasingly gly describing their marketplace as SADC, or even en beyond.

A history of steady growth A demand of this transition has been the establishment and adherence to industryleading SHEQ protocols These improvements have resulted in improved d service levels to clients and a significant increase in capability and capacity.

When asked to sum up what hat the business does, Jansen van Vuuren n replies: “We are in the business of value creation reation – of creating advantage from the waste in

Renewed and expanded contracts Since February 2012, the company has grown its traditional steel business with ArcelorMittal South Africa.

This contract has a dedicated fleet moving steel to and fro the Vanderbijlpark and Saldanha plants. Each plant produces different grades of steel and a certain Andre volume of the metal produced in Saldanha is sent Jansen van Vuuren, marketing director, Cargo Carriers to Vanderbijlpark for further processing. Much of the steel finished in Vanderbijlpark is, in turn, destined for the export market via Saldanha. Cargo Carriers keeps the existing supply chains.” He sounds ds more like supply moving in both directions. an alchemist than a supply chain specialist. pecialist.

The Cargo Carriers fleet includes trailers specifically designed It seems that Cargo Carriers is creating eating its to carry steel coils to maximum capacity. World-class own brand of ‘magic’ with its clients. ts.

“We are in the business of value creation – of creating advantage from the waste in existing supply chains.”

TWA | Jul/Aug 2013

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REGIONAL NEWS

SUB-SAHARAN AFRICA

A mega move for Barloworld Transport Solutions IN A MOVE to expand its services within the specialised transport solutions sector, Barloworld Transport Solutions (BWTS) has acquired TCS Logistics, a transport company that moves abnormal loads for clients into and around sub-Saharan Africa.

Neil Henderson, CEO of BWTS, says: “The acquisition is a good fit.

It aligns with our strategy to offer clients a wide range of smart, reputable and reliable transport solutions in Southern Africa. It expands our services and capabilities in this specialised area. There are many synergies within our businesses and we look forward to leveraging these to enhance our services to clients into Africa.’’

TCS will fall under the specialised business unit of BWTS, which is led by Andrew Nicholson. Rogan Brent, the MD of TCS, and Jason Christie, the operations director of TCS, will continue to head up this business. TCS was formed 16 years ago and has the skills, experience, regulatory requirements and a large fleet configuration with the capacity to move a maximum payload of 90 t. TCS has depots in Durban, Johannesburg, Harare and Lusaka.

BWTS incorporates the Manline, Manline Energy and Timber24 brands and is part of Barloworld Logistics. It has a fleet of over 800 vehicles, employs 1 700 people and has more than 30 depots across Southern Africa. TCS will be rebranded Manline Mega to build on the strong cross-border footprint, expertise and brand presence that Manline already has in the market.

Brent says: “Our team is highly experienced in planning, loading and delivering machinery, specialised equipment and project cargo. This is a competitive space with great growth opportunities for us. Joining the BWTS group is an exciting development for our business and our client base. We From left Rogan Brent, MD of Manline look forward to Mega, and Neil Henderson, CEO of Barloworld Transport Solutions, shake hands working and sharafter signing the deal ing best practices with our new colleagues to create more flexible, optimised and sustainable transport solutions for a wide variety of customers and sectors.”

SOUTH AFRICA

Pedal safe branded trucks ANDERSON TRANSPORT is taking the Safe Cycling campaign – a safe passing distance of 1.5 m between vehicles and cyclists – quite literally on the road. The company has branded three trucks with the safe cycling campaign to increase public awareness.

Heimer Anderson, managing director of Anderson Transport, says: “We support this campaign launched by the Pedal Power Association, and as a cyclist myself, I hope this campaign will contribute to safer roads for all cyclists.”

The three branded trucks will annually cover a combined distance of approximately 600 000 km throughout Southern Africa.

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TWA | Jul/Aug 2013

SOUTH AFRICA

A million kilometres and still going strong

OPERATING A successful transport operation is never easy. It takes a cunning business sense, careful planning and a keen eye for opportunities to make a success of any transport business. And Honey Lotus Farms, a transport operator situated just outside of Nigel in Gauteng, is certainly such a business.

Operating mainly as a commodity transporter, Honey Lotus Farms is owned by Richard Burns. The company currently has a fleet of 40 trucks, with ambitious plans to expand its operations exponentially over the medium term.

One of the stalwarts of the company’s fleet, a 2008 UD Trucks 440 6x4 truck tractor recently crossed the million kilometre mark without experiencing any major problems.

Burns says: “The truck still has all its original parts and it simply keeps on going. During this time the truck has moved over 92 000 t of freight and generated more than R10.3 million in revenue. This UD

certainly keeps on producing a great return on investment.”

Burns’ partner in the business is Elfie Mgidi, who was also coincidentally the vehicle’s first driver.

Mgidi adds: “According to our company’s replacement policy, we should already have replaced this UD 440 some time ago, but it just keeps going without giving any real problems.”

The company’s vehicles that are still under warranty are serviced by UD Trucks Middelburg, while the older vehicles are serviced on-site at the company’s workshop.

Willie Linde, dealer principal at UD Trucks Middelburg, states: “It is just a pleasure to work with a company like Honey Lotus Farms, which has such a high level of professionalism and expertise.

“We are very proud to be associated with a company of Honey Lotus Farms’ calibre and are looking forward to maintaining a long and successful partnership with them.”

Liz Robbins, projects and marketingg officer for the Pedal Power Association, says: “I would like to thank Anderson Transport for its support of our 1.5 m campaign. We posted a photograph of the truck with the branding on our Facebook page and received a great response.

We really do need more companies like this to increase safety awareness of cyclists, which can ultimately save lives.”

REGIONAL NEWS SOUTH AFRICA

Maritime industry must increase black participation THERE HAS to be a significant increase in black participation through ownership, management and employment in companies throughout the industry value chain in the maritime industry. This is according to the deputy minister of Trade and Industry, Elizabeth Thabethe, speaking at the Women in Shipping Industry workshop held recently in Durban.

The purpose of the workshop was to enlighten women about the shipping industry, the skills needed and the opportunities that are available for women in this industry.

Thabethe said: “The maritime industry must pursue a growth strategy that prioritises the retention and creation of quality jobs, most of which are on landside operations. In order to make this a reality, the industry must develop a deliberate strategy to increase

access to skills, capital and economic opportunities and therefore raise the economic value add of every employee and enterprise in the industry.

“The industry must commit to embark on a major communication and marketing campaign, which will take its BBBEE Charter to every company within the industry to ensure maximum participation by all stakeholders. This will require all stakeholders to recruit new black people into the industry and increase their skills and those of existing employees to best-practice international levels, while creating a supportive culture for their talents to thrive.”

In terms of the Maritime BEE Service Strategy, the overarching long-term vision is to develop South Africa to become one of the world’s top 35 maritime nations by the year 2014.

IVORY COAST

Negotiations enter final phase A CONSORTIUM, made up of Bolloré Africa Logistics, APMT and Bouygues, has signed the concession agreement for Abidjan’s second container terminal. This follows several weeks of negotiation with the Port Authority, overseen by the Ivory Coast’s Ministry of Transport.

The completion of these negotiations paves the way for the formal signature of the public-private partnership.

In March 2013, the consortium won the international call for bids for the second container terminal, following an open, strictly regulated and transparent bidding process, which, as along with the subsequent negotiations, was directed by two specialised international consultancies.

The ambitious project, in which the consortium is investing over €400 million (R5.29 billion), aims to endow the Abidjan port complex with a new deep-water container terminal capable of accommodating high-capacity ships (carrying 8 000 TEUs instead of the standard 3 500). All the leading shipping companies, notably those from Asia, will now be able to call at the port of Abidjan, making the facility more competitive and attractive, in keeping with the goals set out by the Ivory Coast authorities.

Bolloré Africa Logistics is impressed by the quality of the process as a whole and honoured by the renewed trust shown by the nation’s authorities. A leader in the port sector in Africa, Bolloré Africa Logistics is restating its commitment to supporting the economic and social development of the Ivory Coast by investing not only in its port capability but also in the sectors of logistics, rail transport, shipbuilding and energy innovation.

MOZAMBIQUE

Second-hand diesels head for CDN, Mozambique A NUMBER OF former Transnet Freight Rail class 33 (General Electric U20C type) locomotives were at Maydon Wharf, Durban, at the beginning of June awaiting shipping to Mozambique for use by Corredor de Desenvolvimento do Norte (CDN), the northern rail link across the country linking up with Malawi.

Ten class 33 locomotives and 21 passenger coaches were sold for US$20 million (R197.53 million).

The now aged General Electric U20C diesels are a reliable product utilised by various other companies in Africa, including RRL Grindrod (a South African company offering integrated rail and logistics solutions in the whole of Africa and beyond) and Sheltam (specialists in the maintenance of and repairs to all types of diesel and electric locomotives and rolling stock), as well as remaining the backbone of TransNamib railway (the national surface carrier of Namibia, which provides rail and road transport solutions within and across the borders of Namibia).

Aged South African diesel units have been shopped for deployment to CDN, Mozambique

TWA | Jul/Aug 2013

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REGIONAL NEWS

ZIMBABWE

Zimbabwe still weak in terms of logistics

AN IMPORTANT indicator of the quality of trade and transport facilitation in a country is the ease of moving goods and services across borders.

A World Bank report states that Zimbabwe is weak in this aspect, putting the country at 172 out of 183 countries in its latest World Bank Global Trading Across Borders list. Mozambique is the best performing SADC member state on that list at 132, followed by South Africa at 144, Botswana at 150, Zambia at 153 and Malawi at 164.

Zimbabwe has also featured poorly on Logistics Performance Index of the World Bank, scoring 2.25 out of a possible score of 5 based on six key trade dimensions, which include efficiency of the clearing process by border control agencies and customs, quality of trade and transport related infrastructure, ease of arranging competitively priced shipments, competence and quality of logistics services, and ability to track and trace consignments.

Speaking at the launch of the of the Trade and Transport Facilitation Assessment (TTFA) report at the beginning of June, Tadeus Chifamba, permanent secretary of Zimbabwe’s Ministry of Regional Integration and International Cooperation, said he was hopeful the country’s Logistics Performance Index will improve with the introduction of the ASYCUDA (Automated System for Customs Data) and

pre-clearance, which would see an efficient movement of cargo at the border posts.

Chifamba said: “Measures are under way to further expand the Beitbridge border post as well as develop the Beira-Limpopo transport corridors in a bid to make Zimbabwe the transport hub for the region.

At the same time, negotiations are under way to establish more onestop border posts and computerisation of trade licences and permits in order to address the problem of border delays.”

In terms of infrastructure projects, he said the government, through a public-private partnership, had completed the feasibility study on the Harare-Beitbridge road in February this year.

According to the TTFA report funded by the World Bank, improving transport infrastructure should be one of the key government priorities. The report said based on the current budget, it will take more than 112 years to rehabilitate all the roads as envisaged by the Zimbabwean government given that a total US$2 billion (R20.47 billion) is required.

The report suggested that the short-term strategy should focus on low-cost interventions with high economic impact. The interventions should be implemented within the next year or two and should include, according to priority, repairing the regional corridors, which have a total length of 2 307 km, about 5% of which is in poor condition. About 10% is in fair condition, giving a total length of 345 km of regional corridors that need repair. The repair work includes pothole patching, filling of cracks, edge repairs and replacement of road signs. The second intervention would be to repair urban roads as 25% of the network is in poor condition. The government should also repair paved primary and secondary roads as well as maintain the unpaved secondary roads.

The report said in the medium to long term, government should speed up the dualisation of major truck roads to ensure that road expansion keeps pace with increasing traffic density.

The World Bank said that almost 70 000 km of roads, equivalent to about 80% of the total network, is in need of rehabilitation.

Zimbabwe has a total road network of 88 100 km. At an average rehabilitation cost of US$350 000 per kilometre lane, a total of US$24.5 billion would be needed.

MOZAMBIQUE

Landmark MOU paves way for Maputo-SA port cooperation PORT AUTHORITIES in South Africa and Mozambique have signed a memorandum of understanding (MOU) that will see Transnet National Ports Authority (TNPA) and the Maputo Ports Development Company (MPDC) cooperating.

Tau Morwe, TNPA’s chief executive says: “The MOU opens up collaboration on matters of common interest in areas of infrastructure development, engineering, training and marine services. Contrary to popular belief, TNPA and the MPDC are not competitors and the agreement will open up opportunities for a closer working relationship and sharing of knowledge.”

Osorio Lucas, chief executive at MPDC, adds: “Through this cooperation, the intention of fostering competitiveness and growth fulfils the realisation of the MPDC’s vision of propelling the region forward. It is an important step

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TWA | Jul/Aug 2013

toward fostering greater intra-regional cooperation, which is a key priority of the Southern African Development Community (SADC) and the Common Market of Eastern and Southern Africa (Comesa).”

Regional integration is in line with Transnet’s Market Demand Strategy that, among its imperatives, calls for a review of the state-owned entity’s role in the development of the northsouth logistics corridor.

Morwe states: “We believe that in a spirit of cooperation we can be exponentially more efficient and play a key role in lifting intra-regional trade within the SADC region from its current level of 12%. What we can achieve remains to be seen, but we should aspire to achieve the figures of other leading regional economic communities such as those of Asia and Europe where intraregional trade is in the region of 60%.”

The signing of the MOU is the formalisation of discussions that have been developed through extensive bilateral talks and visits over an extended period of time. Other areas of collaboration include assistance with the unbundling of the MPDC into Port Authority and Port Operations, the transition of cargo from road to rail and nautical matters.

Morwe concludes: “In reality, it means that the MPDC can access the capacity and expertise of TNPA at a lower cost than that of European or Eastern ports. For example, the TNPA dredging services are ready to provide maintenance and capital dredging of the Port of Maputo.

The Maritime School of Excellence, a leader in marine training on the continent, is available for technical and maritime training, as is our port planning, engineering expertise and safety, health and quality (SHEQ) expertise.”

REGIONAL NEWS SOUTH AFRICA

Engen funds Durban Prosperator BUSINESS INCUBATOR boosts supply chain capacity, local economy and sectorial transformation.

Continuing its strategy of business-aligned transformation, Engen Petroleum is funding a Durban South incubation centre in partnership with South African incubator group Raizcorp.

This is one of eight centres of its kind established in South Africa by Raizcorp and is known as the ‘Engen Prosperator’. The facility focuses on supporting the growth of black-owned small businesses under Raizcorp’s Arize programme for historically disadvantaged entrepreneurs.

Allon Raiz, founder and CEO of Raizcorp, says: “Arize offers companies an enterprise development investment solution without the need to invest in the relevant capacity. Investment in enterprise development can boost companies’ BBBEE rating. However, most companies do not have the capacity to identify, set up and support effective and sustainable enterprise development initiatives.

“We build sustainable and prosperous businesses, which is why we use the term Prosperator. Each enterprise that finds its feet and goes on to thrive on its own, will create jobs, enhance skills acquisition and contribute to the prosperity of the community.”

Through this programme, Engen will commit a significant investment in enterprise development over a three-year period.

Unathi Njokweni-Magida, Engen Group’s transformation manager, says: “Over the years, Engen has contributed to the economy of the country by providing fuel. Now we have taken this a step further. We are contributing to the transformation of the nation by equipping entrepreneurs with better capabilities to grow their businesses.”

Tasneem Sulaiman-Bray, Engen’s general manager of corporate affairs, adds: “Engen is proud to be associated with Raizcorp through the centre’s Comprehensive Enterprise Development Programme.”

The centre offers learning modules accredited by the Council of Higher Education (NQF Level 5 or diploma-equivalent) and world-class entrepreneurial guidance. Through the Prosperator, the programme also offers all the necessary systems and resources in terms of office equipment, infrastructure, bookkeeping and more, to assist entrepreneurial companies to grow into thriving businesses.

Under the initiative, training will be given to 20 SMMEs in the first year, 20 in the second year, and another 10 during the third year.

Sixteen beneficiary companies are already undergoing entrepreneurial development, with more in the pipeline.

Sulaiman-Bray concludes: “In times of ever scarcer resources, Engen seeks out the most deserving investments with the greatest and most widespread benefit. Not only does this bring about much-needed transformation in the industry, the Engen Prosperator will also grow the local economy and small business capacity.”

From left Engen CEO Nizaam Shalle, Raizcorp CEO Allon Raiz, Minister of Energy Dipuo Peters, and Ethekwini Deputy Mayor Nomvuso Shabalala unveiling the plaque declaring Raizcorp Prosperator Durban as the Centre of Excellence

SOUTH AFRICA

Green-thinking Imperial CEO wins award AT THE ANNUAL Nedbank Sustainable Business Awards, the Sustainability Leadership Award was presented to Imperial Logistics’ CEO, Marius Swanepoel, in recognition of his success in greening African supply chains.

At the event, Swanepoel was honoured for his commitment to, and significant achievements in, driving effective emission reductions – both within his own organisation and across Imperial Logistics’ entire supplier and value chains.

On receiving the award, Swanepoel said: “Transformation to greener business starts in the supply chain. There are opportunities to reduce emissions through route optimisation and greater fuel

efficiency, as well as energy, water and waste management, among other initiatives. For sustainability strategies, the supply chain is the ‘make or break’ zone.

“Sustainability is an economic imperative that is playing an increasingly significant role in the long-term success, leadership and social and economic relevance of businesses.”

The Nedbank Capital Sustainable Business Awards aim to showcase and promote best practice in sustainability. The inclusion of the Sustainability in Leadership Award is intended to recognise and ultimately encourage sustainability leadership practices of individuals in executive management positions, which Nedbank believes will assist in raising the benchmark.

ZIMBABWE

Public-private partnership invitation in Zimbabwe REVITALISING ITS infrastructure is imperative for the National Railways of Zimbabwe (NRZ), which is inviting companies to engage with it in public-private partnerships (PPPs).

This is due to the fact that the parastatal has not yet received the US$9 million (R92.55 million) it was allocated under the Public Sector Investment Programme (PSIP) in the last budget.

However, the parastatal requires about US$2 billion to implement its long-term strategy, with US$400 million required in the short term to restore infrastructure. Revitalising the railway services provider would allow the parastatal to recapture lost traffic and win new customers.

Last year, 3.7 million tonnes of goods were moved on rail through Zimbabwe, against a target of six million tonnes.

During May, the Minister of Transport, Communications and Infrastructure Development, Nicholas Goche, announced he was confident that the NRZ would rebound following an injection of fresh capital by an undisclosed foreign investor. The debt-ridden NRZ has been ailing for over a decade due to under capitalisation, ageing equipment and a decline in business since 2000. Several manufacturing companies in Zimbabwe, the backbone of the NRZ’s business, have closed and the shipment of coal from Hwange Colliery Company, which sustained NRZ, has declined significantly by going over to road transport.

In June, the parastatal announced to the local media that it was leasing out its properties countrywide in a bid to generate revenue and to turn around its fortunes.

TWA | Jul/Aug 2013

13

FEATURE

IMPERIAL LOGISTICS

The strategic role of With the development and advancement of integrated supply chain techniques and frameworks, there is untapped potential for supply chain management to provide a platform for integration within a South African organisation’s strategic operating plan.

10 years Over the last decade, Integrated Supply Chain Management (ISCM) has been recognised as an essential driver for business success and increased competitive advantage within South African organisations.

C

OBUS ROSSOUW, CHIEF integration officer at Imperial Logistics, and Nicole Binnekade from Volition Consulting Services outline the results from their investigation into the current status of integrated supply

chain management.

This investigation provides insight into the current status and role of integrated supply chain management within South African organisations. It also identifies the major gaps between the current status of integrated supply chain management and the prescribed best practices.

The 31 organisations participating in the investigation were classified into groups for analysis purposes. The allocation of groups was based on the role the organisations play in industry and the type of products they produce. The three roles are manufacturing, retail and mining, and the three types of products are consumables, industrial products/feed stock and semi-durables/durables.

Results • Within the survey sample, 62% of the participating organisations that operate within the consumable products industry were found to have an overall average that indicates a mature supply chain compared to organisations that operate within the non-consumables industry, such as the semi-durables and durables and industrial products/ feedstock, where only 44% were found to be mature. This reveals that the consumables industry is more likely to have a mature supply chain, than role players operating within the non-consumable industry.

• It was found that South African organisations chose to align their supply chain strategies with their overall strategy, as

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this strategy ranks the highest, considering its low standard deviation of 0.79. Of the particants, 84% indicated that they mostly or always fully implement this best practice strategy, opposed to only one of the participants stating that they implement an aligned strategy to some extent. It was also found that organisations involved in the retail sector scored a high average of 4.5 out of 5, indicating an emphasis on successfully aligning their strategies.

• Information best practices scored the lowest overall, with an overall average maturity rating of 2.90 out of 5 and a standard deviation of 0.87. Six of the eight information techniques prescribed as best practice were within the top 10 lowest ranking best practices. This reveals that information best practices are not generally held in high regard within South African supply chains. As established in the research project, many of the key frameworks available for ISCM rely heavily on the use of information best practices to monitor and successfully integrate a supply chain. Thus by not successfully implementing these information techniques, South African supply chains could be impairing their capabilities.

• The investigation revealed that South African supply chains, across all role player sectors, have chosen to design their supply chains to be customer focused. This was evident from the study in that the implementation of a customerfocused strategy ranked third overall within the study, with an average mean of 4.03 out of 5 and a standard deviation of 1.00. The large standard deviation reveals that South African organisations are attempting to design and manage their supply chains to be customer focused, but there is a large variation in the implementation and success thereof. Seventy per cent of the supply chains mostly or always fully attempted to be customer focused, while 27% of the supply chains partially implemented this strategy.

FEATURE

supply chains Customer focus is an essential driver for a successful supply chain and this is a positive indicator of supply chain best practices within South African organisations.

• It was found that the best practice strategy of aligned incentives ranked 41st overall and 46% of the participating organisations never or rarely collaborated with their supply chain partners, while 46% of South African supply chains are partially managing to successfully collaborate and fully utilise aligned incentives within their supply chains.

Aligned incentives and roles are best practices strategies that concurrently work together within a successful supply chain management strategy and it was found that both strategies ranked in the lower quartiles of the study. This indicates that there is a gap between the knowledge of supply chain management and the successful implementation of supply chain collaboration strategies within South African organisations.

• The investigation revealed that South African organisations place great emphasis on the implementation and successful management of supply chain coordination control methods, in terms of planning, forecasting and replenishment, as supply chain coordination ranked second highest overall with a mean of 4.19 and a standard deviation of 0.95. The effective use of supply chain coordination control methods can be particularly noted within the manufacturing sector participants.

• The investigation revealed that South African organisations on average are not placing emphasis on designing agility within their supply chains, as agility ranked 29th overall, with a mean of 3.32 and a standard deviation of 0.98 within the total sample. This is supported by the observation of a large distribution across the implementation ratings in the retail sector, where 50% of the participants barely or only partially implemented the best practice and 50% of the participants frequently or mostly implemented the best practice. Furthermore, it was found that 68% of the manufacturing role players barely or partially implemented the best practice.

• Minimised inventory scored very low overall throughout the investigation, ranked 43rd within the overall investigation, with a mean of 2.84 and a standard deviation of 0.86. It was found that the lack of implementation did not differ between role players, though the manufacturing and mining value chain members chose to keep buffer stock, while the retail value chain members placed very little emphasis on minimising inventory and maintaining buffer stock, which is indicated by the ranking of 46th overall.

Closing the information gap The lack of implementation of information best practices within South African supply chains is one of the barrier’s

hampering their performances. This is due to the fact that information management and integration thereof is a crucial part of the three fundamental dimensions of supply chain integration and that many of the information techniques support and promote broader best practice strategies.

This has resulted in a gap, as South African organisations are choosing to implement best practice strategies such as positioning their supply chains to be customer focused, as well as implementing collaboration strategies – yet they do not have the information structures to support, manage and control these strategies.

This can be substantiated by the fact that participants in the manufacturing of consumer goods sector have identified information management maturity as one of the greatest gaps their organisations are currently facing and have implemented a three- to five-year plan to bridge this gap.

Aligning the understanding and implementation of supply chain collaboration The successful collaboration between supply chain partners requires implementation of both aligned incentives and aligned roles within a successful supply chain management strategy, as these two best practices work concurrently together. The investigation revealed that the organisations were implementing the best practices of aligned roles and aligned incentives at different implementation levels, which indicates that there is a gap in the understanding of supply chain management and the successful implementation of supply chain collaboration strategies.

Conclusions The investigation established by means of a qualitative study that South African organisations are recognising the advantages of managing their supply chains as a competitive weapon and are positioning their supply chains as essential components within their strategic management. This can be seen by the high level of awareness and transformation initiatives being implemented by means of aligning their supply chain strategies with the broader organisational strategy, becoming more customer focused, realising the benefits of collaborating with their supply chain partners and implementing planning, forecasting and replenishment strategies.

A successful supply chain requires a holistic approach and there is no single best practice that can optimise and manage an entire supply chain.

From right Cobus Rossouw, chief integration officer at Imperial logistics, and Nicole Binnekade from Volition Consulting services

TWA | Jul/Aug 2013

15

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RFA

across SA The Road Freight Association’s annual convention is a great place for the industry to discuss relevant issues and it also provides operators and manufacturers the opportunity to interact in a relaxed atmosphere.

T

HE UNDERLYING FOCUS this year was that to function efficiently, operators have to work smartly – hence the theme of the convention, ‘Smarter Trucking’.

Simon Foulds was interested to hear about the smart technologies in trucking, which were discussed by a panel chaired by Paul Nordengen from the CSIR. Nordengen has been instrumental in driving the concept of ‘smart trucking’ in South Africa.

In other parts of the world, this concept is referred to as PerformanceB a s e d Standards Paul Nordengen, CSIR (PBS).

Currently, there are 60 smart trucks in operation in South Africa, mainly within the lumber and mining industries.

There are another 30 smart trucks in the design and approval phases and these will be implemented in transporting other commodities.

Nordengen says: “The objective of smart truck technology for heavy commercial vehicles is essentially to reduce vehicle trips and improve the safety performance

“Truck technology will improve the overall performance of the heavy commercial vehicles used in South Africa.”

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TWA | Jul/Aug 2013

of the truck when fully laden. Smart truck technology also ensures less damage is done to the road infrastructure and the improved fuel efficiency of these vehicles also ensures a reduction in the amount of carbon dioxide emissions.

This technology will improve the overall performance of the heavy commercial vehicles used in South Africa.

“At the same time, truck manufacturers along with the trailer manufacturers will start implementing the technology used in smart trucks, which are longer and heavier, within the normal trucks seen on our roads.”

All the companies using smart trucks in South Africa are also participating in the road transport management system (RTMS).

RTMS is an industry-led, voluntary self-regulation scheme that encourages consignees, consignors and transport operators engaged in the road logistics value chain to implement a vehicle management system that preserves road infrastructure, improves road safety and increases the productivity of the logistics value chain. This scheme also supports the Department of Transport’s National Freight Logistics Strategy.

Driving smart trucks Timber Logistics Services is one of the companies that has incorporated smart trucks into its fleet.

Brian Hunt, managing director, says: “It is a basic concept that makes sense for our industry. We had to modify the concept to suit our conditions, but applying the principles of smart trucking in the timber sector was quite easy.

It definitely works well under the conditions the company operates in.”

Gert Brits, general manager: mining services at Unitrans, adds: “Why should an operator implement the smart trucking technology? There are two major reasons: the

A to B whatever’s inbetween.

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improved safety handling of the vehicle and the improvement of the vehicle’s productivity. We operate on the mines and we are continually asked about the safety of the smart trucks we are using and we have proved just how safe these vehicles are. And with the improved productivity, we are able to keep our logistics costs down – especially our fuel costs.”

PerformanceBased Standards Give vehicle designers more flexibility to use innovative solutions and the latest technology to meet the required performance standards. Vehicles operated under the PBS framework carry heavier payloads on longer trailers. These vehicles are limited to travel on a certain road network to ensure the protection of the road infrastructure and also ensure adequate road safety is maintained.

Trucking smarter Nordengen says: “This project is about doing things a lot smarter than they have ever been done before. It is going to take time to influence government and make it understand what we are trying to achieve with this project. You cannot expect it to happen overnight. Getting all the provinces involved is also important, but that is also going to take time. Our goal is to achieve 100 million kilometres of data and then present it to government and say we have done extensive tests over many years with many PBS vehicles operating in many different sectors in our country and these are the results. If you do not have this kind of data to back it up, getting the government to change legislation and adopt smart trucks is going to be impossible.

So this is a journey we are going through and it is a journey in the right direction. When you have the right data and the right kilometres travelled then you start having the good argument to encourage government to make positive changes.”

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TWA | Jul/Aug 2013

Adrian van Tonder, senior manager: business development at Barloworld Logistics, states: “We do not have any smart trucks currently on the road, but are looking at implementing some in the near future. When we reached the decision to include these trucks in our fleet it was all about understanding what PBS is all about. For us, it is logical to incorporate these vehicles into our fleet because, as already stated, there is an overall improvement in safety, less wear and tear of the roads, less carbon dioxide emissions and above all an improved productivity of the vehicle. It makes perfect business sense.

“Good corporate citizens have to do something that contributes positively to the country and not just go out there simply to make money.

PBS makes a positive and significant contribution to the overall well-being of the country. It is all about being a responsible citizen.”

Nordengen concludes: “The biggest challenge with this project as we expand it is that operators using these trucks comply with their permits, ensuring they are on the right route at the right speed with the right load. This is the key to the success of this project.”

You can trust us to deliver.

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BODIES

Epic journey for ultra-size dump bodies The first two bodies for 23 large mine dump trucks ordered for the Husab uranium mine in Namibia are undertaking an epic road journey from Johannesburg to the far flung mine over 2 000 km away.

Above Transcar moving the 14.6 m long by 10.7 m wide by 5.4 m high freight by road

P

LANNING FOR THE trip was undertaken by a joint team of specialists from Komatsu and transporters Transcor, which aim to safely move the dump bodies over difficult terrain and across borders to the destination. Due to the sheer size, the team is set to surprise many who do not believe it possible to move the 14.6 m long by 10.7 m wide by 5.4 m high freight by road.

Gerhard Kloppers, sales application engineer at Komatsu, says: “For us, it proves that where others see problems, we see solutions. We are proud that no matter how big the challenge, Komatsu is able to find the right solutions for our customers.”

Locally built A total of 23 Komatsu 960E trucks will be delivered to Swakop Uranium’s Husab operation, where they will become the primary movers of waste and ore on its new mine. The dump bodies were manufactured entirely in South Africa by Efficient Engineering and their delivery on-site marks the beginning of the assembly phase.

The chassis are being manufactured in the US before being shipped to Walvis Bay for final delivery at the mine about 100 km away.

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TWA | Jul/Aug 2013

The phased delivery will coincide with the ramping up of the new mine to reach full readiness by the end of 2014.

Project freight Kloppers adds: “Moving the dump bodies requires massive coordination of all parties involved from Komatsu, the body manufacturers, transporters and road traffic authorities alike.

Every step of the journey has to be carefully measured and investigated before permission to travel can be granted.

“Even then, strict conditions apply and the vehicles need to be accompanied by at least two escorts from Transcor, as well as two road traffic authorities from South Africa at all times.

Once across the border at Nakop Border Post, the Namibian authorities require a similar arrangement.”

“Everything needs to be planned – from distance that can be covered during daylight hours to power line heights and bridge weight carrying capacities and more. Most importantly, with one of the widest consignments being carried by road in the region, hazards at the verges of the route needed to be identified and catered for.

“We are confident it will all work out and the assembly project will get under way without a glitch. We are also looking forward to the next few months when all the machines will be brought into operation.”

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9HKLFOHV The road ahead in 2013

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FINANCE

The advantages of in-house financing Dr Christian Rosswag, CEO and regional coordinator: Africa & Middle East for MAN Financial Services, tells Simon Foulds why it is advantageous for transport operators to use its captive finance when purchasing MAN trucks.

A

S A CAPTIVE finance organisation we work closely with the manufacturer. Our advantage is that we know the needs of the transport company and can offer package solutions.

This could be a repair and maintenance contract, with residual value, so that the operator does not have the hassles that come with full ownership.

The customer operates the truck, utilises the asset and can give it back after the term of the contract has ended after three or four years. That is really the advantage of a captive finance organisation because of this closeness to the manufacturer, which banks usually do not have – they usually only have purely just the finance MAN Financial Services (SA) (Pty) but not an integrated solution.

Ltd was established and is the South “The huge advantage of having capAfrican subsidiary of MAN Finance tive finance in place in the organisaInternational GmbH tion is that our people can go out with the salesman to the customer and arrange the finance solution so the asset can be sold to the customer and delivered. The closeness and the ability to offer finance as a package with the actual truck is a huge advantage. It is also less hassle for the customer.”

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Tough financial times Rosswag adds: “In tough financial times, the advantage of having a captive finance house like us is that we can assess the risk in a different way because we know the market better and are also closer to the manufacturer. marke That is i where we usually gain most of the market share during tough economic times.” The company

can assist the customer with skip payments, restructuring of the whole debt as well as talking to their banks to get extra working capital facility approved. “There are various things we can do in order to help the customer, because we have no interest in losing the customer and we really want to help them through difficult times and we have the means of doing this.”

Contracts He says the length of the contract is determined by the industry the customer is operating in – if he has a three- or four-year contract, he does not need the asset on a longterm contract.

“It is a tailor-made solution and depends on the needs of the customer. It can be an instalment sale that he just buys the vehicle and gets ownership, it could be as a lease, but it can also be a full maintenance lease rental where he just operates the asset for a certain number of years – he has a repair maintenance and a residual value at the end, so he does not really have to worry about the asset he can just worry about his business.” The advantage is that the customer always has the latest product because the fleet is replaced every three to four years. “The customer does not have to think about selling the asset at the end of the period; he has his fixed repair maintenance costs and he has his fixed finance costs – so it is almost a hassle-free solution for the customer. “

Popular

Rosswag says that this option is becoming more popular with the bigger fleet operators. “They want the assets at the end of the day, and I think because with the big customers there is more focus on the operating costs. And they can see the advantage of this type of product.

The smaller operator maybe has the preference to own the asset and really see it on the balance sheet to build up equity in the asset.

Big corporation operators just look at their operating costs and say ‘it is not my core business, let someone else do it and we just have our running Dr Christian Rosswag, CEO and regional costs under control’.” coordinator, MAN Financial Services

“The advantage is that the customer always has the latest product because the fleet is replaced every three to four years.”

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TWA | Jul/Aug 2013

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MAN Financial Services (S.A.) (Pty) Ltd – Insurance Services Division (MFS) has a range of Comprehensive Insurance and Value Added products available to customers purchasing MAN/VW trucks or buses. Our products are ƀexible and can be offered to all MAN/VW customers, irrespective of the size or type of their business.

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COMMODITIES

Dominant transport operator The first truck drove out of the yard in 1982 and since then the Reinhardt Transport Group has become a dominant force in moving bulk commodities for the export market. Graham Gaskell, deputy CEO at Reinhardt Transport, speaks to Simon Foulds about the growth of the company and its future.

D

ERICK REINHARDT established the company, merging with Amalgamated Bulk in 1999 and purchasing Chrome Carriers in 2001. Initially, the three entities were operated separately until they were merged under the umbrella of the Reinhardt Transport Group. In 2010, Amalgamated Bulk was fully integrated into Reinhardt Transport, resulting in two transport brands operating within the group. Reinhardt Transport is based in Nigel with Chrome Carriers situated in Rustenburg.

Nigel operation there are 114 DAFs, with Volvo making up the balance and at Chrome Carriers there are 144 MANs with the rest being Scania.

“There are no bad vehicles around. Two of the distinguishing factors for us are that the back-up is an extremely important factor along with the safety features,” says Gaskell.

“One of the successes of our business has been the equity that gets created in the fleet. We like to think that at the end of our three-year, 600 000 km policy, we have a market for the vehicle when it needs to be replaced. This is an important Fleet size part of the purchase decision. Probably the most important The total fleet size comprises 489 6x4 bulk tipper and interlink aspect for us, however, is the fuel efficiency of the relevant combination, 259 of which vehicle. The cost of fuel is are at Chrome Carriers and huge for every operator and So why not then just purchase Scania?

230 at Reinhardt Transport. for us constitutes 81% of Gaskell says: “Well, we looked at various aspects and it’s best The main trailer supplier for the overall operating cost of not to have all our eggs in one basket. Back-up is important for the company is Afrit. using a vehicle over a threeus and it is good to have a bit of competition between the OEMs Chrome Carriers operate year period. This aspect is as it keeps everybody on their toes. In trying to ascertain where each of the OEMS can improve it would be rather difficult if we the MAN and Scania brands key for us in choosing a had everything with one particular brand. The company recently while DAF and Volvo trucks vehicle for our operations.” purchased 140 MAN trucks for its operations in Rustenburg. are used at Reinhardt. At the He says that late last year the

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TWA | Jul/Aug 2013

volvo TRUCKS. driving PROGRESS www.volvotrucks.co.za

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group had all of the major brands doing semi-controlled tests on the company’s routes with its cargo.

Drivers were also rotated among the different brands to ensure that there was a fair assessment from the different brands, allowing the group to find the most fuel efficient vehicle for its particular operations.

“From our internal tests, we found the most fuel efficient vehicle we had is the Scania followed very closely by MAN.” “We have got very good watertight service level agreements with the suppliers – from a technical support point of view. For service interval, they are allowed a certain time and if they exceed this time they have to supply a back-up vehicle. The OEM service agreements are analysed on a monthly basis to ensure they stick to their agreements.”

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Outsourced maintenance The company has outsourced all maintenance to the OEMs, which are expected to deliver outstanding service on a continuous basis.

“We outsourced all our maintenance facilities four years ago. Our own technical staff monitor the relevant OEMs, ensuring they continuously meet our high-standard requirements and operate according to our agreed-upon standards. All our vehicles are monitored on-site and at the monthly technical meetings we go through a variety of technical issues measured against the agreed upon KPIs. Our main workshops are in Nigel and Rustenburg.”

Driver training “A vital and important aspect is driver training. We have a very comprehensive in-house driver training programme.

We have 12 full-time driver trainers within the group, and we have our own driver academy where all our drivers undergo theoretical training as well. Here drivers are educated on health issues, driving attitudes and techniques along with basic administrative duties. Gaskell says the group has its our own in-house clinic where drivers undergo a medical examination twice a year, during which eyesight and hearing

are tested, among other things. Drivers also undergo all relevant OEM training to keep them updated on the best driving techniques for the relevant vehicle they drive.

“On top of this, we have a detailed monitoring process, particularly from a fuel point of view, but also regarding harsh braking and other relevant driving issues. So when we see that our drivers are not achieving a benchmark, we put them through a training programme. It is an ongoing process and, from a theoretical point, each driver gets retrained once a year.

“There are 600 drivers at the company and regarding the practical training aspects for each driver we focus on where he is having a problem with his driving technique as picked up through the driver monitoring process. Once the driver has been through a training session, an improvement in fuel saving and his driver habits is seen.”  Graham Gaskell, deputy CEO, Reinhardt Transport

“We have a very comprehensive in-house driver training programme.”

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Monitoring He adds that the operation centres monitor all vehicles 24/7.

Ctrack is used to monitor all the trucks within the Reinhardt Transport operations in Nigel and Net Star at the Chrome Carriers operation. This is to both monitor the routes the trucks travel along with the drivers’ driving skills. The reports are in real time and any excessive bad driving habits can be addressed immediately with the relevant driver.

We are ISO 9000 accredited and are just going through the RTMS accreditation now and these are very good things in terms of levelling the playing fields for operators “The regular driver reports are also used for rating the drivers if they drive within the green band. This forms part of a programme where drivers are incentivised on their fuel consumption and productivity.

“Twice a year in June and December, we award the best driver with a car. It is quite remarkable how much of an incentive this has become and the great impact it is having on our fuel consumption. It has been well received by all our drivers.”

The future “We are optimistic about the future growth expansion. Though we have a sizeable fleet we would still like to grow the business in a focused manner. This will probably be more of a geographical expansion as opposed to diversifying into different segments.”

Gaskell says: “We are looking at the territories north of South Africa – Zambia, Zimbabwe and Mozambique – but we would like to stick to what we know best and that is transporting bulk products.”

The company currently transports bulk produce to Maputo and Durban, and has a model that works for them. “I think we can replicate our model into operations that are similar

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to us, but that are not as large as us. Our major clients are Phalaborwa Mining Company, African Rainbow Minerals, Sasol, Samancor, Xstrata, Lances and ArcelorMittal. About 80% of our work is in the resources, 15% in coal and 5% in agriculture.

“We are ISO 9000 accredited and are just going through the RTMS accreditation now and these are very good things in terms of levelling the playing fields for operators.”

Ctrack Solo Developed for the tracking and management of professional hauliers, Ctrack Solo is perfect for Reinhardt Transport.

Hein Jordt, MD of Ctrack Fleet Management, says: “The reason we say this is because it is a full-featured, scalable, remotely upgradeable mobile solution developed for the tracking and management of professional hauliers.”

In addition to recording vehicle status, location and trip information, Ctrack Solo also proactively assists the driver with remaining within the set parameters for safe and economical vehicle use, making it a great system for transport operators.

“This is achieved by an audible pre-warning and continuous violation alarm. These exceptions are also reported to Ctrack software users and recorded for further analysis in the Ctrack management software,” says Jordt.

“A comprehensive task management system is enabled when it is integrated to a driver terminal device, which includes two-way communication, navigation and driver identification. Task or job instructions such as job number, description, job location, job to be completed and action required are received from the Ctrack software.

“For the transport manager, the system can create a wide range of reports, including tacho analysis, daily usage, graphic usage, movement, fleet emission, vehicle maintenance, fuel summary and GYR driver rating using the server-based Ctrack MaXx software. These are essential in ensuring an operator manages an efficient fleet of trucks.”

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MBSA

Improved fuel efficiency IIn test runs in the Eastern Cape, fuel savings of more than 5% have been achieved by two Mercedes-Benz Actros 6x4 truck-tractors, fitted with RT440 hypoid rear axles as standard. What makes this saving significant is that the drivers in this test run were not Mercedes-Benz MercedesB driver trainers, but normal fleet drivers.

D

URING THE FUEL consumption testing in the Eastern Cape region, the vehicles not only achieved the targeted fuel saving in comparison with the predecessor models, but already surpassed all expectations early into the trial by proving to be even more frugal than anticipated.

Each vehicle completed 9 920 km under some of the most extreme conditions on the Eastern Cape roads. The test route of 620 km started in East London and then followed the N2 over the Kei River back onto the N6 and over Penhoek Pass (1 884 m above sea level and with a maximum gradient of 10%) before returning to East London. The accumulated climbing height for the total route of 620 km is 9 389 m.

The aim was to rule out differences in driving styles and the rolling resistance of the semi-trailers, which might distort the fuel consumption measurements During the comparative drive, the test engineers monitored every diesel refuelling as well as the swapping of the drivers and semi-trailers. The aim of the latter was to rule out differences in driving styles and the rolling resistance of the semi-trailers, which might distort the fuel consumption measurements.

Fuel economy in vehicles can be improved in many ways: increasing engine efficiency, reducing aerodynamic drag, rolling friction and improving the fuel quality, among other factors.

Mercedes-Benz engineers have developed a new hypoid rear axle for the current Actros 2644LS/33 and Actros 2654LS/33 6x4 truck-tractors that were tested under everyday conditions along Mercedes-Benz South Africa’s (MBSA) well-known trial routes in the Eastern Cape. Mercedes-Benz trucks combined the OM 502LA engine with its 540 hp with

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TWA | Jul/Aug 2013

the RT440 hypoid rear axle in the Actros 2654LS/33, which replaces the other air-suspended 2650LS/33. It now has a 3.583 rear axle ratio.

Christo Kleynhans, Mercedes-Benz trucks product manager, says: “The new RT440 hypoid rear axles make for the most fuel-efficient Mercedes-Benz 6x4 truck tractors of all time. In fact, the fuel saving achieved on the 2644LS/33 was 5.67%, and 5.37% on the 2654LS/33 was.”

Kobus van Zyl, vice president of MBSA commercial vehicles, adds: “As in normal long distance operations, the drivers were allowed to travel at a max speed of 80 km/h and overrun to 87 km/h on the down hills. All four vehicles were closely monitored on FleetBoard to ensure the drivers followed the testing guidelines at all times. Physical fuel measurement and kilometre readings were also verified against the FleetBoard results.”

Clinton Savage, divisional manager for Mercedes-Benz trucks, states: “Light, economical and reliable – the range of hypoid rear axles on these trucks offer not just reliable power transmission, but also allows the most economical driveline for any operation.”

Kleynhans says: “South Africa is well known for its unique operating conditions and the trucking environment, which is spread across fleets ranging from first to third world and makes for a testing ground suitable for a wide spectrum of applications. Due to the outstanding track record of the Mercedes-Benz Testing Department, it was an obvious choice to call on its expertise to perform the comparative test between the new hypoid axles and the existing hub reduction rear axles.”

Savage adds: “The consumption figures of the two new Actros truck tractors are even more impressive in view of the guidelines for the test. Unlike normal fuel consumption tests, the comparative run were not carried out on a test circuit but under everyday conditions on busy roads and, at times, under adverse weather conditions.”

Technological advances by the MBSA holding company, Daimler AG, in Europe cannot always be implemented locally – a prime example is South Africa’s inadequate availability of cleaner fuel, which prohibits the introduction of “greener” and more fuel efficient commercial vehicles.

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NAMPO 2013

Growing arena to showcase product In 1967, the first NAMPO event attracted 200 farmers from the Free State and the old western Transvaal – a far cry from the attendance figure of 72 376 in 2013. The importance of the agricultural sector for the transport industry can be seen from the number of exhibitors who return year after year.

S

IMON FOULDS speaks to relevant transport exhibitors who attended this year’s event to find out why NAMPO is considered a platform for them to do business and build key relationships with customers. These are Scania, Hino, International Trucks, Afrit, Tubestone, Chieftain Africa, Lube Power and Diesel Guard.

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Gideon de Swardt, corporate relations manager at Scania, says: “NAMPO is the biggest privately owned agricultural show in the southern hemisphere and for us it is critical to be an exhibitor there.

“This year was a great success for us because everyone who attended had the intention of doing business. We sold one of our used trucks on the stand within the first hour of the event opening on the first day. It makes perfect sense for a farmer to purchase a good used truck because of the low frequency use.”

He adds that the visitors are knowledgeable about technical issues and farmers attend the event with a specific purchase in mind.

Kim Scott, marketing manager at International Trucks, concurs: “Many of the visitors are key decision-makers in their business and attend the event with the intention of purchasing products or getting the required information about products they intend to purchase at a later stage. We have generated a number of sales leads from NAMPO over the years, which we have converted to confirmed orders.”

Sameera Khan, marketing manager at Hino, says that NAMPO is one of the most important events on the company’s marketing calendar, as a significant number of its

TWA | Jul/Aug 2013

clientele within the agricultural sector attend the show.

“NAMPO is the ‘go-to’ show for comparing all your agricultural needs and it provides the exhibitor with a credible concentrated platform to showcase our products.”

Accessories and lubricants Rynhardt Steenkamp, Afrit’s marketing coordinator, adds: “NAMPO gives us a valuable opportunity to interact with our target market. It provides a platform for both new and existing clients to have some personal interaction with many of our sales executives while also getting a chance to view a wide display of our products.

“Taking these aspects into consideration, it is an exhibition that we cannot afford to miss; the number of clients that visited this year is truly of great value to us.”

Steenkamp adds that Afrit personnel are able to further mingle with other truck/trailer manufacturers and important delegates from the media sector within the industry.

Tubestone exhibited its range of tyres and rims for the fifth year in a row and marketing manager Yolandi Donaldson believes that, no one in the agricultural business can afford to not be at NAMPO. Nicholas Ryan, CEO of Chieftain Africa, said: “This was the first year we exhibited our Chieftain Trailers and it will not be the last.”

This year was the eighth year in which NAMPO attracted more than 600 exhibitors of outstanding quality. Interest among visitors was enormous, and exhibitors once again received numerous enquiries. Increasing interest was also shown by international exhibitors and visitors. Pierre Duvenhage, director at Lube Power, says: “This is our 14th year at NAMPO and for us it is imperative that we be there. What makes this event

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Tubestone exhibited its range of tyres and rims for the fifth year in a row

different from other shows is that we can sell directly off the stand, so we can judge immediately whether we are getting a return on monies invested in the show.”

Louis Marais, Diesel Guard MD, adds: “This is the only real show where you are exposed to the full agricultural sector in South Africa. The show has allowed us to enter the agricultural market without having to market to farmers on an individual basis.”

On exhibiting Regarding the products being exhibited, De Swardt says that this year’s stand was not just about Scania’s hardware and trucks, the company also decided to showcase their full product and services offering.

“The Scania product is something that generates income for the company. But there are also various services we can offer a customer, ranging from in-house financing and insurance

to maintenance, spares, driver training and road side assistance. The whole idea and theme with our stand was to display all the products and services Scania can offer customers and have key personal from each department on the stand discussing the products and services with the agricultural industry.”

Scania also had a fully furnished breakdown van on the stand as well as a truck driver simulator.

International Trucks displayed its 9800i 6x4 truck tractor alongside a relatively new addition to the line-up: the TranStar 6x4 truck tractor. The Cummins ISX and ISM engines, which power these two trucks respectively, were also on display.

Hino had a diverse range of products on show, including the 300 bus, 500 cattle truck, 700 2848 AMT Truck Tractor, 300 game viewer and the 300 814 LWB dropside.

Khan says: “The 700 Truck Tractor is excellent for farming applications and our 300 814 LWB dropside is great for farmers looking for a general application truck.”

On the Afrit stand, the company displayed six different trailers: a dropside side tipper, end-tipper and fridge unit, alongside three customised trailers (a Tautliner, Moving Floor and a 25 m3 side-tipper). A far cry from the company’s first stand at NAMPO six years ago, which comprised just a gazebo and boxes of brochures.

Chieftain Trailers had six products displayed, all of which related to a farmer’s needs.

Lube Power showcased its range of pneumatic and manual lubrication as well as its diesel pumps and filters.

Diesel Guard had its full range of system protection, antisiphoning units as well as its DIY Tipper Trailer on display.

Marais says: “These products are of particular interest to all transport operators, including the farming sector, due to the extent of diesel pilferage within the country.”

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De Swardt says: “With our bigger stand, we were able to really display our full range of products and services, and it was great meeting both old and new customers from around the country and from other African countries as well.

Business was good and we are really looking forward to the next one in 2014.”

Steenkamp says the highlight was the response from customers to the products on the company’s stand. “We put a lot of effort prior to the event in inviting clients and potential clients to visit us and we were impressed with the amount of farmers who visited our stand as a result.”

Scott states: “For us, it was wonderful engaging with customers – old and new – as well as reinforcing the brand’s commitment to the agricultural fraternity.”

Ryan says: “For us, it was being able to attract key potential customers to our stand and get their stamp of approval for our products as a new supplier to this market.”

Duvenhage says: “It was great simply interacting with the farming community, who are really friendly and honourable people.”

Marais concurs: “There was unbelievable hospitality from the farming community and organisers, and there was real interest expressed in our product range. We are able to offer the agricultural sector a viable and workable solution to their fuel pilferage problems.”

SUPPLY CHAIN LOGISTICS

INSURANCE

Avoiding the pitfalls of short-term insurance Steve Cornelius Cornelius,, Indwe Risk Services head: Specialist Risk – Automotive and Transportation, explains how the Road Transport Management System accreditation can assist operators.

I

NSURANCE IS A financing method used by fleet owners to protect themselves against the financial impact of unforeseen events such as accidents and theft.

By having his premiums accepted, the fleet owners are under the impression he’s covered for all insured events.

Sadly, this is not always true. The contract of insurance

contains certain warranties and conditions that need to be adhered to before the insurer will indemnify the client. This ‘small print’ is often ignored and can result in an unexpected repudiation of the claim. This can be catastrophic for smalland medium-sized fleet owners.

The following are some of the more frequent causes of claims being rejected by insurers.

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Maintenance Every policy wording has a clear condition that all vehicles must be maintained to a roadworthy condition. This includes brakes and tyres. If one has to look at the findings of the Brake and Tyre Watch, which carries out random checks of trucks using our roads, more than 60% of all trucks fail this critical check. An unroadworthy vehicle will allow the insurer to repudiate any claim where they feel the unroadworthiness contributed to the accident.

Tracking devices Where the vehicle value is over a certain amount, most insurers require an approved tracking device. They also state that this device must be operational at the time of the accident. In the event of a theft or hijacking, the insurer will certainly check to see if the unit was functional. If for any reason the unit was not working at the time of the event, the insurer is likely to repudiate the claim.

Overloading Because of the effect that overloading can have on a vehicle’s driving performance, most insurers have a zero tolerance for overloading. This is often beyond the control

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of the owner, but could still have a negative impact at the time of a claim.

There are many other warranties and conditions, but the three outlined above are the most common causes of repudiation. Others include drunken drivers, unpaid premiums, incorrect or inadequate information provided to the insurer regarding the risk, or dishonesty regarding the claim.

A very important tool to ensure that a fleet owner avoids the above pitfalls is the Road Transport Management System (RTMS). This is a self-regulating standard, similar to an ISO standard, that focuses on safety and compliance. This standard forces fleet owners to develop a set of sound operational practices that allow for the moniSteve toring and managing of Cornelius, Indwe Risk Services head: Specialist key safety and efficiency Risk – Automotive and Transportation areas – a small price to pay to avoid a crippling insurance repudiation. RTMSaccredited fleets are also likely to get better insurance rates because of the strong risk management impact that RTMS accreditation provides.

“RTMS-accredited fleets are also likely to get better insurance rates.”

SUPPLY CHAIN LOGISTICS

SAPICS

Design for change With over a thousand delegates in attendance and speakers from around the world presenting a series of workshops and papers, the 35th annual SAPICS conference at Sun City lived up to expectations. Simon Foulds was among the delegates.

T

HE THEME FOR this year’s conference and also its call to action was ‘Design for change’. Opening the event, Cobus Rossouw, SAPICS president, said: “This event will inspire you and you will leave better equipped to face the challenges and opportunities in the supply chain world out there. The new SAPICS byline is ‘your supply chain network’, which encapsulates the purpose of this event and the industry organisation that is hosting it.”

“This event is about the profession we are all passionately part of and allows everyone present the opportunity of networking and interacting in order to ensure the industry continues to showcase its achievements.

“To be a comprehensive industry association for supply chain professionals, we need deep knowledge in all areas of expertise. We need to build alliances and capabilities to include the fields of transport, distribution, materials handling, procurement and supply management, as well as deeper expertise in the process and systems enablers of supply chain integration – or even value chain integration.”

Kate Vitasek “This is the exciting challenge that faces SAPICS today.

The real purpose of an event like the 35th annual SAPICS conference is to give those willing to lead a platform to point the way. To design for change and to share supply chain solution for a dynamic world.”

“Under a Vested agreement, companies and their service providers work together to develop solutions that are aligned to their respective interests.”

Building better business relationships Kate Vitasek is an author, educator and business consultant as well as an internationally recognised innovator in the practice of supply chain management. At the conference she presented the ‘Vested’ model.

“Why do so many business relationships fail to achieve their real potential? One big reason is that

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TWA | Jul/Aug 2013

they are based on a ‘what’s in it for me’ philosophy. The Vested model of collaboration, shared value principles and trust changes all that. It encourages the parties to act for mutual benefit, to achieve a true win-win, and in the process lay the foundation for sustained success.

“Is there a secret sauce for improving your business relationship? That is the question that University of Tennessee (UT) researchers sought to answer with the support of US Air Force funding. UT researchers set out to study some of the world’s most successful business relationships to find if there was knowledge that the Air Force could apply.

A key part of the research was to study business relationships based on true collaboration that achieved real results.

Not only results, but transformational, game-changing and award-winning results.

“What the researchers found was that these companies had created a radically different type of business relationship: relationships that transcended traditional buy-sell transactions that focus on one party ‘winning’ while the other ‘loses’.

They found relationships where the parties worked together towards shared goals to drive innovation, create value and reward success. But while they seemed radical compared to most business relationships today, researchers realised that these companies were actually leveraging Nobel Prize concepts from Nash’s equilibrium theory to Williamson’s Transaction Cost Economics. This new business model was coined ‘Vested’.”

The Five Rules of Vested for achieving collaborative, outcome-based partnerships is a unique approach to outsourcing. The five rules are: • adopt an outcome-based versus transaction-based business model • focus in the what and not the how • clearly define and measure the desired outcomes • pricing model with incentives that optimise the business • governance structure should provide insight, not merely oversight.

“Under a Vested agreement, companies and their service providers work together to develop solutions that are aligned to their respective interests. Each party gets tangible benefits from the relationship.

“At the heart of a Vested contract is an agreement on the desired outcomes that the companies want to achieve. The agreement clearly defines financial rewards for meeting or

“An An opportunity to benchmark our service offerings and introduce our solutions” - Tracey Le Roux, Group Marketing Manager: Value Logistics -

SAPICS has established itself as a respected and recognised leader in supply chain education. The annual conference attracts a broad spectrum of industry role players, affording us the opportunity to network with potential clients and introduce our range of comprehensive logistics and supply chain solutions. This enables us to enhance our knowledge, benchmark our service offerings and ensure we continue to introduce the latest technologies and increase our operating efficiencies.

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NOW

SAPICS THE TIME IS NOW Imagine discovering a supply chain network with unending capabilities for growth. At SAPICS, a professional membership-based association, our aim is to advance individuals and organisations in Supply Chain Management through participation in our educational programmes, events and our annual conference. SAPICS’ wide range of education opportunities include the world-renowned international qualifications CPIM and CSCP from APICS as well as the CPF from the Institute of Business Forecasting in the USA.

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SUPPLY CHAIN LOGISTICS

exceeding the agreed-upon outcomes and specifies the penalties for falling short. Simply stated, if the service provider attains the desired outcomes (results), it receives a bonus. It is important, however, to understand that Vested is not simply a form of gainsharing. Gainsharing is usually structured to return to the service provider a portion of cost savings that it brings to the relationship. It is based on productivity measures and on reducing the cost of service for a specified range of activities.

“Vested is much broader; it’s a busi-

From left Jonathan Sims, Sydney Ramoorthy and Glenn Lawson from Core Freight Systems

40

ness model. While it can include the cost reduction concepts of gainsharing, it also includes increases in revenue, service level improvements, process improvements and so on. Where profit-sharing is based on profitability or cost measures – or managing one’s portion of the existing pie – Vested focuses on value creation, value sharing and making the pie bigger so all parties can enjoy a larger share.

“The Vested approach challenges and encourages the service provider to apply innovative solutions and/or investments to solve a client’s problem and to create value. But in doing so, the service provider also takes on some risk, in essence putting ‘skin

TWA | Jul/Aug 2013

in the game’. The provider looks at how it can best apply world-class processes, technologies and capabilities that will drive value. This commitment shifts risk to the supplier or service provider. In exchange for achieving this incremental value, the company commits to allowing the provider to earn additional profit – above and beyond industry average profits for their service area. The result is a win-win Vested partnership.”

SUPPLY CHAIN LOGISTICS

TRAILERS

Paramount Trailers continuously expanding

As Paramount Trailers continues its expansion drive, Simon Foulds sits down with Paulo Ribeiro, ďŹ nancial manager at the company, to talk about the trailer manufacturer’s export drive and expansion plans.

How long has Paramount Trailers had a strong footprint throughout the SADC region?

Paramount Trailers has been operating in the SADC region for more than 10 years. Being a Portuguese family-owned business, the Portuguesespeaking countries of Mozambique and Angola in the SADC region were obvious targets originally. However, growth into other SADC countries quickly followed.

What types of trailers are popular in this region and why do you think these are popular with customers?

Various trailers are popular in the SADC region, depending on the application and industry in which the trailer will be operated. The tri-axles and superlinks are always popular due to their versatility for transporting and logistics, and the superlink side tippers and

rigid rear end tippers are popular within the mining industry.

What makes your trailers ideal for countries north of our border?

Paramount has built its reputation on being able to develop and manufacture trailers to meet customer requirements.

This is even more critical when manufacturing a trailer for

What advice would you give to a transport operator looking for a trailer to carry goods through the SADC regions?

It is important not to sacrifice trailer strength for payload. A lighter trailer will more than often not be able to last in tough conditions. Engage with your trailer manufacturer to ensure that the correct trailer is purchased for your operating requirements, i.e. application, road conditions, type of trailer, etc. Consider purchasing a trailer that will provide you with greater versatility in transporting different types of cargo as this will assist in having loads both to and from the SADC destination.

Are you optimistic about the growth of Paramount Trailers in Africa and why?

Road transport is the primary transport medium across Africa, and will continue to be for some time. The majority of raw materials, industrial supplies and fuels are transported by road. The reliability, convenience, security and time management of road transport continue to make it a

Paramount has built its reputation on being able to develop and manufacture trailers to meet customer requirements countries across the border. It is important to understand the conditions in which the trailer will be operating. We have developed and manufactured an export trailer that is more robust for cross-border transport. The design uses stronger materials, which allow for longer trailer life under tough road conditions while ensuring that carrying capacity is not compromised.

preferred medium. Paramount Trailers’ investment in excess of R100 million on a new trailer manufacturing facility is a clear indication of the optimism that the owners have in the growth of the company. Growth into Africa depends largely on the rand to the US dollar foreign exchange rate, and the weaker rand leads to an increase in trailers being exported as our pricing becomes more competitive.

TWA | Jul/Aug 2013

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SUPPLY CHAIN LOGISTICS

PORTS

Namibia to become a logistics hub The role of transport and logistics has become increasingly important for Namibia’s economy. With the rapid growth in cargo volumes along the Walvis Bay corridors, the Port of Walvis Bay has been identified to become the logistics hub for Southern Africa.

T

HE PORT OF Walvis Bay, with its deep water depth and stable weather conditions, is strategically located to accelerate the growth of the SADC region as a whole by providing a gateway to Southern Africa. Costs and time savings are achieved along the Walvis Bay corridors by offering the shortest possible regional route on the west coast.

accelerate growth for Namibia and the SADC region by offering Southern Africa an alternative gateway.

The Logistics Hub concept forms part of the greater efforts of the Walvis Bay Corridor Group to develop the Walvis Bay corridors as the preferred trade route for Southern Africa.

Competitive strength Strategic plan In terms of Namibia’s strategic plan, the National Development Plan 4 (NDP4) has made provision for the development of a logistics hub. Hence, the NDP4 has prioritised the creation of a logistics hub in Namibia with the aim to make the Walvis Bay corridors through the Port of Walvis Bay the preferred trade route in Southern Africa.

With the transport corridors fully established, it is now ready to be developed into economic development corridors that are ultimately a network of supply and distribution depots. Economic development in Southern African countries has accelerated.

Accelerate growth

The Logistics Hub concept forms part of the greater efforts of the Walvis Bay Corridor Group to develop the Walvis Bay corridors as the preferred trade route for Southern Africa

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TWA | Jul/Aug 2013

Ultimately, the development of the Port of Walvis Bay and the Walvis Bay corridors is clearly an advantage to

The Walvis Bay Corridor Group was created in 2000 as a service and facilitation centre to promote imports and exports via the Port of Walvis Bay. The group’s main competitive strength is its public-private partnership setup of transport and logistics stakeholders, allowing for the pooling of resources, expertise and authorities from both the regulators and operators.

The Walvis Bay corridors are a network of transport routes comprising the Trans-Kalahari Corridor, Walvis BayNdola-Lubumbashi Development Corridor (also known as the Trans-Caprivi Corridor), the Trans-Cunene Corridor and the Port of Walvis Bay. The deep-sea Port of Walvis Bay allows for direct access to principal shipping routes. The port offers shippers a time saving of up to five days between the SADC region and Europe and the Americas. Walvis Bay is a congestionfree port with competitive turnaround times, complemented by first-class infrastructure and equipment, ensuring, safe and reliable cargo handling with zero pilferage. Fast, efficient and safe road and rail transport along the Walvis Bay Corridors further reduces transport costs and makes the regional economy more attractive to global players, as envisaged under the NEPAD initiatives.

SUPPLY CHAIN LOGISTICS

SEA

Eastern Cape ports to boost industry

Some view it as a sleeping giant, but the Eastern Cape has developed its own maritime industry over the years, which is set to become an economic power. Plans are afoot to invest substantial amounts into the region so the province can leverage off its ports as drivers of economic growth.

Nelson Mandela Bay

A

T THE INAUGURAL Eastern Cape Ports & Maritime Conference in Nelson Mandela Bay, the areas port infrastructure was highlighted along with plans to invest in the three ports so the economy of the region can grow.

Strategic challenges Karl Socikwa, CEO of Transnet Port Terminals, says: “The strategic challenges that have to be overcome will entail a number of aspects being implemented and changed.

There has to be a large-scale modal shift from road to rail

“We also need to look at a low carbon freight system that will reduce vulnerability to the fluctuating international oil price.” Karl Socikwa, CEO, Transnet Port Terminals to address costs, congestion and carbon emissions. At present, both global and regional maritime connectivity is poor and we need a regionally integrated transport network, incorporating coastal transhipment.

“This will contribute to lowering supply chain costs for containerised goods and increasing regional overland and global maritime connectivity.”

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TWA | Jul/Aug 2013

He adds that the regional freight system is weakly integrated and displays poor performance, which is why an integrated and aligned infrastructure network that provides capacity ahead of demand, allowing for supply chain optimisation at the network and industry level, is needed.

“We also need to look at a low carbon freight system that will reduce vulnerability to the fluctuating international oil price and ensure long-term competitiveness and sustainability of the system. Also important is the ability of the state to retain strategic control of the network in order to lead and direct infrastructure investment and the development of the supplier industry.”

Three ports Ayanda Vilakazi, the Coega Development Corporation head of marketing and communications, says: “With three active ports in the province, the Eastern Cape is sitting on a goldmine of maritime resources and potential. The three ports – two in Nelson Mandela Bay and one in East London – play a complementary role and generally serve the hinterland.”

Vilakazi believes that ports play a central role in the economic development of the province and provide a unique platform to sell the Eastern Cape to foreign investors. Coupled with direct linkages with the Coega and East London industrial development zones (IDZs), the offering is even more attractive and the Eastern Cape

SUPPLY CHAIN LOGISTICS certainly has the ports and growing industrial prowess to fast-track development.

“Currently, Port Elizabeth centres on manganese ore exports as well as car exports and imports, containers and general cargo, and East London functions as a general port.

Ninety per cent of manganese from South African mines is exported through the Port of Port Elizabeth, which also serves as the import and export destination for original equipment manufacturers based in the city.”

The Port Elizabeth and East London ports are also positioned as automotive hubs as they service General Motors South Africa, Volkswagen South Africa (VWSA) and Mercedes-Benz.

The Port of Ngqura is a strategic transhipment hub for containers, but is now gearing up to export an initial amount of 16 million tonnes of manganese per annum in 2017 and will later ramp this figure up based on demand.

Vilakazi states: “The integration of the three ports is work in progress, although informed by specific roles for each of the three ports, with some common areas of functionality. Since they serve different purposes generally, all three ports are essential, particularly when it comes to attracting and retaining investment. Mercedes-Benz and VWSA would pull out of the cities they are based in if the ports were downgraded or closed, showing the strong linkages between economic development and access to ports.

“The whole concept of IDZs – and the emerging landscape of special economic zones (SEZs) – requires a fully integrated landside-seaside development and hence the Coega IDZ needs the Port Ngqura and vice versa; similarly, the East London IDZ needs its port. This is what is meant by the ‘full integration and co-dependence’ we are working towards in the province and at the conference as an initial start point for greater collaboration within the maritime industry.”

Ports are under pressure to keep up with the growing size of vessels, and the development of the deep-water Port of Ngqura was specifically geared to accommodate new generation container ships and large bulk carriers.

Nelson Mandela Bay is unusual in that it has two ports. The Port of Ngqura is complemented by the Port of Port Elizabeth.

“Major economic growth is derived from increased employment for the region and the fact that local manufacturers are able to export their goods through the ports,” says Vilakazi.

“As containerisation continues, so does the drive for greater efficiency. Ports will remain key nodes in global logistics chains for the foreseeable future, but seamless integration with landside operations – rail for long haul and road for short haul – is also critical. Coega is working with provincial government on roads and other infrastructure projects as an enabler for the economic development of the Eastern Cape.

“There are some major projects on the horizon and ports are key enablers in logistics chains with an increasingly global reach. Most investors interested in the Coega IDZ are interested because of the close proximity of the new deep water port.

“Without such linkages, key investments such as General Motors’ pan-African distribution centre, all the wind projects, FAW and Phyto Energy would never have taken place.

“Likewise, all the coming investments – Project Mthombo, the Ferro-manganese smelter and others – would not have been a reality had there not been the vision and will to build another provincial port that has the capacity to handle big projects. Without this push for the new Port of Ngqura, we

would not have increased trade in the province – trade that generates jobs.”

Capital investment Over the past five years, Transnet Port Terminals has invested in the port infrastructure and will continue to do so over the next few years, having set aside R6.7 billion for the Eastern Cape.

Between 2009 and 2013, R1.578 million was invested on expanding the Ngqura Container Terminal and a total of R718 million was spent on the Port Elizabeth Manganese expansion between 2009 and 2011. In 2012, R17 million was invested into the East London grain elevator and R210 million was spent on 10 haulers and trailers. In 2013, R44 million was spent on a mobile harbour crane at East London.

Over the next few years, Transnet Port Terminals plans to invest R6.7 billion on the following: • increasing the manganese throughput to 5.5 million tonnes from the current output of 4.8 million tonnes • relocating the manganese facility to the Port of Ngqura • developing a coal handling facility at the East London Terminal, which will handle 2 Mtpa of coal from 2017/18 • expanding the Ngqura Container Terminal from its current 800 000 TEU capacity to 1.5 million TEU • replacing the straddle carriers in Port Elizabeth.

Top Port of Ngqura Below MSC Sola at the Port of Ngqura

TWA | Jul/Aug 2013

45

SUPPLY CHAIN LOGISTICS

FREIGHT FORWARDERS

Ports – the international forwarder’s role Freight forwarders play an essential role in international trade. This is through their involvement in the management of transportation, customs clearing, documentation, third-party payments and other elements of international supply chains.

S

IMON FOULDS speaks to Mike Walwyn, vicechairman of the South African Association of Freight Forwarders (SAAFF), about the freight forwarder’s role in ports.

A freight forwarder is described as the architect of transport. Globalisation and the need to reduce cost over the entire supply chain have refocused the freight forwarder in ways that are innovative and functional.

the industry perceives about it. We are no longer simply export forwarding, import clearing or customs broking agents, we are also logistics service providers and supply chain managers. Because the dynamics of the industry have changed, SAAFF is getting more involved in its clients’ business operations so as to provide a service that involves the whole supply chain sector.”

Clients More involvement Walwyn, who is also the chairman of the Cape Town Port Liaison Forum and serves as Cape Town’s representative on the National Ports Consultative Committee, says: “The freight forwarding industry Mike is moving away Walwyn, vice-chairman, South African Association of from the traditionFreight Forwarders al narrow role that

“The freight forwarding industry is moving away from the traditional narrow role that the industry perceives about it.”

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TWA | Jul/Aug 2013

“Because the SAAFF’s first duty is to its clients, its business mandate is ensuring it expedites delivery at the lowest cost. One key aspect in this equation is having knowledge of how ports operate. Interestingly, a forwarder’s own charges usually constitute the smallest proportion of the overall costs, yet the forwarder’s responsibility is often the greatest.”

Walwyn says that a key aspect for everyone involved along the whole supply chain is that if freight forwarders can expedite port procedures, cost reductions and savings in time further along the route can be achieved.

SUPPLY CHAIN LOGISTICS “Forwarders have realised that what is good for their clients is ultimately good for their own business. Hence the consequent involvement on a broader front because they realise it is more than just charging agency fees and simply getting reimbursed for services.”

According to Walwyn, the freight forwarders’ industry is also pushing for more involvement in other key industry sectors, including customs and other key government departments relevant to export and import industry, such as the Department of Transport and Perishable Products Export Control Board.

“Within the port infrastructure, forwarders are also striving to be more actively involved and to have an input in the National Port Authority’s tariff process as well as with the relevant port consultative committees, harbour carriers associations, the Shipper’s Council and so forth. This is critical for our sector because all key players need to have a positive input for a more efficient logistical supply chain and so we can streamline operations and ensure costs do not escalate unnecessarily, making it too expensive for the economy to grow positively.”

goods being brought in on the ships are dispatched and on the road to the right places on time.”

The future Walwyn says that the freight forwarding industry will continue engaging with port authorities and the relevant government authorities to ensure that the necessary structures are in place so that it can best serve its clients and so that South Africa is able to do business internationally. “The industry will continue to play a positive role at our ports and, in so doing, nsure the economy continues to grow.”

All pictures Cape Town harbour

Solutions “Because of the perceived lack of coordination between departments involved in port activities, it is important that we use the National Ports Consultative Committee membership as a forum to get discussions and resolutions started. What is also critical is that the National Ports Consultative Committee plays a key role in advising the minister of Transport on port issues.

“The importance of transhipment and its impact on ports is another aspect affecting the industry, and there is a need for Transnet to review its strategy. Another important aspect is the current freight rates along with the impact of port operations.”

He believes that there needs to be more interface between road and rail. “We know rail has been dysfunctional for years and we are looking forward to Transnet’s investment and upgrades to bring it up to a level that will match port productivity.

“Then regarding the identification and elimination of bottlenecks at harbours, it is crucial that authorities get the involvement of the harbour carriers to come up with solutions. After all, it is the harbour carrier members that are responsible for ensuring the

TWA | Jul/Aug 2013

47

SUPPLY CHAIN LOGISTICS

FINANCES

In Africa, cash

is king?

The saying goes that cash is king. The perception is that if somebody or something needs to be paid, the only way to do this is by having hard cash in hand. But is this still true? Will Africa stay bound to this restricting practice?

T

HIS PERCEPTION NO longer holds true.

Business in Africa is advancing at an astonishing rate and Inter Africa Zambia is one of the leaders in the finance world, exploring new ways for more secure business practices in the transport industry.

Until recently, there was no alternative to paying cash for toll and duties at a border post

Cash at African borders

Until recently, there was no alternative to paying cash for toll and duties at a border post. This meant that your trucks travelled with a bag of cash to pay for these.

Inter Africa Zambia solved this problem by having an office at all major border posts in Southern Africa where drivers can collect the exact amount to pay duties and tolls. Inter Africa does not condone the cash practice, but will cater for it until there is an alternative.

Cash for fuel Drivers used to carry large amounts of cash to buy fuel. Inter Africa Zambia also solved this by partnering with participating filling stations along all the major transport corridors in Southern Africa, where trucks can be filled up.

Salaries Inter Africa Zambia has several debit card options available

Transport World Africa Online is a leading news and resource hub focussing on for the transport, logistics and freight industry. It is a leading news hub, with in-depth articles, videos and podcasts, an events calendar, and full social media functionality.

LIKE INF LIKE NFRA RASSST STRU RUCT CTUR UREE NE NEW WS ON FACEBO FACEBOOK Have your say or get the conversation started about anything and everything related to the transport and logistics management industries.

THE NEWS YOU NEED TO KNOW Scan here to go to website

STAY IN TOUCH A weekly newsletter keeps you up to date Sign up online for our FREE weekly newsletter and get an instant summary of the latest news, events and developments in the transport and logistics management industries.

The @twaeditor tweets will keep you updated on all the latest, exciting and, of course, interesting happenings in the transport and logistics management industries.

SUPPLY CHAIN LOGISTICS for the different regions and scenarios in Southern Africa. It recently launched the Mukuru payroll system, which caters for South African transport companies that employ foreign drivers. This is an online system and enables employers to do bulk payments into Inter Africa’s account, after which the payment is allocated to each individual’s Mukuru Money Card. Furthermore, the Mukuru Money Card allows drivers to send money to their families in Zimbabwe, Zambia and Malawi by doing a simple transaction on their cellphones.

The company is a market leader in remittances and promise quick and easy remittances to employees.

Payment of accounts Inter Africa Zambia can facilitate the payment of accounts. Same-day payments to a mechanic for repairs on a truck can be made in most of the Southern African countries; there is no need to wait for transfers to reach service providers.

All of these services can be accessed on the company’s Transport Forex system. By registering on Transport Forex, you can place orders for your trucks to collect cash or fuel in

South Africa, Namibia, Botswana, Zimbabwe, Mozambique, Zambia, the DRC and Tanzania. Once an order is placed, the driver receives an order number on his cellphone. This order number is presented at the Inter Africa office or participating filling stations where the driver needs to pick up cash or fuel, the order is verified and the driver receives his cash or fuel order. Inter Africa has replaced cash with technology.

Inter Africa Zambia

AIR CARGO

AFRICAN FREIGHT

African freight growth The positive growth in air freight demand in Africa during April bodes well for South Africa’s trade and highlights the significant growth the continent is experiencing. Hennie Heymans, MD of DHL Express South Africa, tells Simon Foulds that the figures released by the IATA concurs with DHL’s own shipment numbers.

T Hennie Heymans, MD, DHL Express South Africa

HE COMPANY’S TDI (time definite international) shipments in South Africa increased year-on-year by almost 20% in April and over 10% year to date.

The International Air Transport Association (IATA) report reveals that African freight demand grew by 1.4% in April, which is line with global freight growth. During previous months, however, African airlines’ air freight demand has performed more strongly than the global market.”

Heymans says that South Africa remains a key entry point into the continent, and these increasing figures therefore play an important part of economic growth. However, other African countries, particularly Nigeria, are also becoming an

option to foreign investors due to improved infrastructure.

“It is extremely positive that air freight demand in Africa and emerging markets is performing more strongly than other global markets,” Heymans states.

He adds that the freight growth in Africa reflects the robust expansion that the region is experiencing, due to the increased demand for oil, minerals and other commodities, as well as a result of internal structural changes. He concludes: “These positive growth figures also highlight the fact that Africa is proving to be less susceptible than other regions to the peaks and troughs in the global economy, as it increasingly looks to diversify its trading partners.”

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MEDIA

DRIVER OF THE YEAR

ENGEN

Left From left: Jeeva Chetty, national operations manager; Steven Mashala, driver of the year for articulated vehicles and Joe Mahlo, sales and marketing, Engen Bottom Godfrey Mkhombo, driver of the year for rigid trucks

Heartbeat Llewellyn Snyman, Engen’s national transport operations manager, says: “The glittering occasion is fitting recognition of the company’s operations teams, who are the heartbeat of the company.

“Our drivers put up with demanding routes, tough traffic conditions and stringent procedures. The depot, workshop and scheduling teams all work together to ensure top customer service. It takes a special person to keep up the required standards that can have a real impact on the company’s overall performance, and we do everything we can to ingrain excellence and vigilance in their professional lives, ensure their well-being and, of course, reward a job well done.

“Driver of the Year is Engen’s chance to show how proud the company is of its drivers.

They carry our collective effort with them. We want them to keep achieving their goals and to stay passionate about their jobs.”

Drivers compete Engen Petroleum dedicated its 8th annual FormulaE Awards to the operations personnel that embody its customer promise, operational excellence and leading compliance with worldclass health, safety and quality standards.

T

HE AWARDS TOOK place at the end of a two-day programme at Sun City. The Driver of the Year (DOTY) theory exam, firefighting simulation, vehicle inspection, road and fuel tests, and customer care exam took place on the first day, followed by the DOTY track event on the second day. The programme concluded with a gala ceremony in the evening where awards were handed out in the following categories: • Driver of the Year • Depot of the Year • Workshop of the Year • Scheduler of the Year • Customer Service.

Guaranteed excellence Engen’s DOTY was launched in 2005 and later became part of Engen’s larger FormulaE Operations Awards Programme, as awards for excellence in depot management, customer service, workshop management and scheduling were launched.

The qualification process is evidence of just how competitive the awards have become. DOTY participants qualify by way of automated on-board tracking and monthly appraisals.

Six perfect consecutive scores achieve Club600 status and 11 to 12 perfect scores pre-qualify drivers for the regional knock-out competitions. Winners of the regional competitions qualify for the national DOTY competition.

Snyman says: “The regional leg was introduced in 2008 due to increasing number of qualifiers. The number of drivers qualifying for the regionals increased again this year, making for an exceedingly tough competition at Sun City.”

True value He concludes: “The true value of the programme lies in the high standard of excellence it demands of participants. It is this commitment to performance and added value that will guarantee Engen’s success in years to come.”

Index to advertisers 2nd African Railway Summit AFRIT Babcock International Group Barloworld Logistics Diesel Guard Gauteng DigiCore Emirates Sky Cargo

52

TWA | Jul/Aug 2013

35 26 27 7 34 OBC IFC

Engen Automative Lubricants FAW (First Automobile Works) Hypenica (African Ports Evolution) Indwe Risk Services Inter Africa Man Financial Services Isando Man Trucks & Bus

29 33 31 37 49 23 OFC

Mercedes-Benz

IBC

Namport/Walvis Bay Corridor

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SAPICS Scania Southern Africa

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The Pallet Sock Company

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Volvo Trucks

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A Daimler Brand MBSA/105/HYP001

MBSA/101/HYP001

758&.6 /($6,1* ),1$1&,1* )/((7 62/87,216 6(59,&( 3$576

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