Transport World Africa Oct/Nov 2012

ENDORSED BY

Intraregional supply chain solutions from producer to consumer

Team SA

Heavy vehicle drivers take top honours

Truckers Forum

Road chaos to come?

Walvis Bay

Investigating the Brazilian connection

Trucking economy across SA EX EXPERT OPINION

RFA's Gavin Kelly speaks about

abnormal challenges ahead P16 ISSN 1684-7946 Oct/Nov 2012 Vol. 10 No. 5 / R35.00 incl. VAT

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Mercedes-Benz South Africa (Pty) Ltd. is an authorised distributor of FUSO trucks.

Intraregional supply chain solutions from producer to consumer onsum mer

COVER STORY RY MAN Truck & Bus us SA embarked on the 16-day 6-day 4 200 km Consistently tently Efficient Tour 2012.

INSIDE THIS ISSUE

P4 P 4

REGULARS

COMPANY PROFILE 2 3 4 8 10

Editor’s Word – On the road again!

FESARTA – Barney’s comment COVER STORY FESARTA news News Desk

REGIONAL CORRIDOR FOCUS The Walvis Bay Corridor: investigating the Brazilian connection

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INDUSTRY INSIGHT

COMMERCIAL VEHICLES Team SA heavy vehicle drivers take top honours Abnormal challenges ahead Transporting dangerous goods FAW: increasing capacity to deliver ITSA maintains momentum NAAMSA: growth despite slowdown MBSA opens TruckStore in Centurion

12 16 17 18 20 20 21

TRAILERS Mix Telematics: trailer tracking solution Paramount Trailers: new manufacturing plant on schedule Serco’s new freight body: improved payload

22 22 23

A unique opportunity in African logistics

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and supply chains

SUPPLY CHAIN LOGISTICS Road chaos to come?

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Africa’s aviation potential

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Ports must become shipping logistics hubs

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Digicore: revenue growth for financial year

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Imperial Logistics: moving into pharmaceutical supply chain

24 25

Fuelling your logistics success First AA-grade tyre showcased

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Transporting valuable cargo: more stringent measures needed

PARTS & MAINTENANCE

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26

Imperial Logistics

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South Africa’s transport industry: changes and challenges

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TWA | Oct/Nov 2012

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ED’S WORD

On the road again!

I

During the past 16 years, SIMON has worked as assistant editor of Transport Management, Commercial Transport, South African Transport and Logistics News. He has also been the editor at Light Utility Vehicles and more recently Export & Import SA.

Publisher Elizabeth Shorten Associate publisher Ferdie Pieterse Editor Simon Foulds • simon@3smedia.co.za Contributing editor Chantelle Mattheus • chantelle@3smedia.co.za Head of design Frédérick Danton Senior designer Hayley Moore Mendelow Contributors Yanna Erasmus, Barney Curtis, IATA, Chris Barry Chief sub-editor Claire Nozaïc Sub-editor Patience Gumbo Production manager Antois-Leigh Botma

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TWA | Oct/Nov 2012

T’S A GREAT FEELING to be back in the transport and logistics sector, and I must confess that the playing field has changed dramatically since I was last in the industry.

I do, however, look forward to the challenge of liaising with all stakeholders in this complex and dynamic industry, and bringing relevant and informative editorial to you, our reader. Should you have any news that you feel would be of interest, please feel free to contact me.

In this issue, we join MAN on its final leg of the 16-day Consistently Efficient Tour, as the company showcases the financial and environmental benefits of the new MAN TGS EfficientLine range of longhaul trucks.

We also feature the 28th Union Des Chauffeurs Routiers World Drivers’ Championships, where the South African team was crowned world champions, and we sit down with RFA’s Gavin Kelly to talk about challenges facing abnormal load operators. And if you have never been concerned about tracking your trailer once it leaves the yard, but are thinking that perhaps you should, then read Gert Pretorius’ comments in Trailer Tracking Solution.

On the international front, the Walvis Bay Corridor Group has been active in Brazil, promoting the use of the Walvis Bay harbour as an alternate choice to South African ports. We speak to the group about this initiative and why they are promoting this harbour and corridor so aggressively in Brazil.

We also look at the unique opportunities that African markets hold for logistics and supply chain management following a recent report by Deloitte Consulting, which showed how emerging markets are becoming the drivers of global economic growth.

We also talk about how the Johannesburg Transport Forum tackled the topic of ‘Transport Infrastructure: then and now’, and chat to Nico Walters, general manager: Strategy at Transnet National Ports Authority, as he outlines how ports must become shipping logistical hubs.

As always a varied read – enjoy!

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FESARTA COMMENT

by Barney Curtis, chief executive officer, FESARTA

Municipalities in the various countries have become very successful at generating revenue from vehicles passing through their areas of jurisdiction.

I

N FESARTA’S OPINION, this practice is not in accordance with the SADC Protocol, nor with any other regional agreement.

Chililabombwe in the Zambian Copperbelt and Siavonga in the southern Zambian province, were the first to introduce the charges.

Now the Chobe District Council in northern Botswana is following suit.

Transporters have voiced their opposition to this practice, since the municipalities give no services to the trucks passing through their areas on the national roads. These

main roads through the areas are national roads and are maintained by the national roads authorities. The municipalities provide no services.

Furthermore, foreign transporters pay road user charges for the maintenance of the roads.

It is an example of authorities using their ability to refuse transit of vehicles, unless they pay the charges; a captive market to earn revenue with no justification.

The Regional Economic Communities (RECs) have declared that transporters

should pay road user charges for the wear and tear they do to the roads when operating in foreign countries.

The transporters are quite happy to pay such charges. But, they are not happy when more and more government authorities see them as ‘cash cows’ and think of as many devious ways as possible to extract funds.

The Environmental Management Agency and Port Health in Zimbabwe are other examples. FESARTA has to look after the interests of the transporters in the East and Southern African regions and therefore is taking the matter up at the highest level. The charges have been registered with the RECs as Nontariff Barriers and FESARTA will lobby to see them removed.

Transporters are tired of being “milked” at every opportunity and FESARTA will do its level best to see reason prevail.

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MEDIA

COVER STORY

FUEL SAVINGS

MAN proves consistently efficient MAN Truck & Bus SA embarked on the 16-day 4 200 km Consistently Efficient Tour 2012 – travelling through Bloemfontein, Cape Town, Port Elizabeth, Pinetown, Nelspruit and Centurion – to showcase the financial and environmental benefits of the new MAN TGS EfficientLine range of long-haul trucks. Chantelle Mattheus joined the company on its final leg from Nelspruit to Centurion.

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TWA | Oct/Nov 2012

COVER STORY

A

‘TRUCK ECONOMY RUN’ with the objective of matching – and hopefully surpassing – the three-litre fuel savings achieved by MAN during its European tour in 2011, the South African tour’s primary mission was to compare the fuel consumption performance of the new 6x4 TGS 26.440 EfficientLine against that of the standard 6x4 TGS 26.440 in order to prove that truck-trailer combinations equipped with cost-effective streamlining accessories can substantially reduce fuel consumption.

“We also wanted to highlight/emphasise to the transport industry that for every litre of diesel saved, a corresponding 2.63 kg saving in carbon dioxide is achieved,” said Bruce Dickson, deputy CEO, MAN Truck & Bus SA. The South African tour featured three new TGS EfficientLine derivatives, a standard TGS reference Truck and a Euro 5 TGS EfficientLine exhibition truck. All trucks – except the exhibition truck – were loaded to the maximum permissible legal mass and were run on standard 500 ppm diesel.

The results are in “The trucking industry in South Africa is under immense pressure to limit its fuel expenses, which typically constitute over 40% of fleet operating costs. There is an additional imperative of limiting fleet carbon emissions in order to secure haulage contracts with large organisations. The new TGS EfficientLine range is a viable and cost-effective solution, designed to address these challenges right now,” said Dickson at the announcement of the final results at a gala event in Centurion on the 31 August.

The final figures proved far better than expected for the test-versus-control TGS 26.440 trucks. The total fuel saved on the 4 200 km trip when comparing consumption between the TGS 26.440 EfficientLine test truck with the standard TGS 26.440 reference vehicle was 198 ℓ. “This equates to 4.7 ℓ/100 km or a 7.8% improvement over the reference vehicle. Importantly this means too that 520.74 kg of carbon dioxide was prevented from being released into the atmosphere by the test truck alone,” said Dickson.

Local transport efficiency expert Fritz Hellberg served as independent auditor of the fuel consumption figures and was present throughout the tour. He reported that the TGS 26.440 reference vehicle achieved an overall fuel consumption figure of 60.8 ℓ/100 km and that the TGS 26.440 and 26.480 EfficientLine vehicles achieved 56.1 ℓ/100 km and 58.3 ℓ/100 km respectively.

“Based on fuel prices during the tour, a long-haul fleet operator averaging 200 000 km per annum would save

approximately R96 500 per annum per vehicle. This would mean that for every 15 new TGS 26.440 EfficientLine vehicles bought, a customer could effectively get another truck free every year,” said Dickson.

Driver low-down All five vehicles were piloted by professional driver-trainers from MAN and a customer fleet. Driving time with the vehicles in motion amounted to approximately 66 hours, with a final

A long-haul fleet operator averaging 200 000 km per annum would save Top The MAN approximately R96 500 per Efficient Line Fleet on tour annum per vehicle average speed for the tour around the 63 km/h mark.

Driving the Schoemanskloof route from Nelspruit to Centurion with MAN senior driver trainer, Blackie Swart in the new 6x4 TGS 26.440 EfficientLine, many more variables become apparent, such as the increased driver comfort, which ensures driver workplace satisfaction and increased safety on the roads.

“Little things like the fact that the sleeping bunks are wider, making it more comfortable to sleep in, also make for better driver comfort,” stated Swart, adding that although he has been away from his family for 16 days, because of the comfort of the vehicle he has actually enjoyed the driving.

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to prove fuel efficiency

Below The MAN Driver Trainer Team that proved that pronominal results are achievable with EfficentLine technology. Front left: Roland Marais, right: Blackie Swart.

Back left: Dennis Flowers, right: Andre Nel

TWA | Oct/Nov 2012

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COVER STORY

STREAMLINED EFFICIENCY

T

he EfficientLine’s remarkable fuel efficiency is achieved via the fitment of a comprehensive aerodynamic package to reduce the aerodynamic drag effects;

energy-saving tyres to reduce the rolling resistance; improved management of auxiliary power demand from selected components via an air-pressure management unit, which automatically cuts out the compressor when it is not in use; lightweight aluminium rims; as well as lighter front axles and suspension to reduce vehicle deadweight,” Dickson said at the launch of the Nelspruit leg of the tour.

MAN Truck & Bus South Africa approached Aero Truck to design, manufacture and fit a local aerodynamic kit for the new EfficientLine in order to be in line with South Africa’s unique truck size specifications. “For Aero Truck, the aim of

A key player in ensuring the success of the tour, Blackie said that with the models currently entering the local market, “there is no such thing as a bad vehicles, only bad drivers.”

His strategy in ensuring the vehicles optimum efficiency with regards to fuel consumption was to remain attentive throughout his time on the road. “It is important to take into account things like reading the road, weather conditions, wind from passing vehicles, maintaining speed and also watching the revs.” He aimed for a speed of between 83 and 85 km/h, as a constant speed of about 80 km/h significantly reduces the drag – however the terrain does not always allow this.

Blackie added that, it is important to change to manual and average around 1 500 RPMs when going uphill to ensure fuel is being saved, especially in the KwaZulu-Natal mountainous stretch as well as the last final mountains between Nelspruit and Centurion.

MAN driver training is a standard offering with the new MAN TGS EfficientLine. “Our driver training is based on MAN’s European driving methodologies to ensure all MAN drivers have the necessary knowledge and skill to leverage the fuel-saving, productivity and safety technologies on all MAN vehicles. The Consistently Efficient Tour 2012 will prove that MAN not only has the best equipment, but also the best drivers,” said Dickson.

the EfficientLine Tour – and we think that of MAN itself – is to create a greater awareness within the South African trucking industry of the fuel efficiencies that

Confident performance

can be obtained with technology and the correct specking and fitting of vehicles

The new TGS EfficientLine range, including 6x4 and 4x2 options with 440 and 480 horsepower ratings, is due for release mid-2013. Backed by a MAN four-year/600 000 km OEM driveline warranty and boasting a 40 000 km service interval, Dickson concluded that he is confident that MAN Truck & Bus SA’s transparency in conducting the tour prior to the official launch of the new EfficientLine range next year “will will inspire new truck buy buyers to take a closer look at how MAN and our new pearl-white beauties can assist them in lowerin lowering their total cost-of ownership”.

and air management kits.

“Chassis panels were fitted to both the truck tractors and to the trailers. It is anticipated that these air management kits will result in significantly reduced fuel consumption on these high volume vehicles,” said Aero Truck MD, Cameron Dudley-Owen.

LESS AERODYNAMIC DRAG Aerodynamic package without external sun visor for the cab. Constant speed of 80km/h reduces drag. (Electronically limited to 85km/h)

LESS AUXILIARY POWER REQUIRED The MAN TipMatic® automated manual transmission with the new Eco Intarder are already standard features on the TGS range. Their fuel saving efficiencies contribute to the EfficientLine® package.

LESS AUXILLIARY POWER REQUIRED Daytime driving lights need just 42 instead of 300 watts.

ENERGY SA AVING TYRES Energy-saviing tyres reduce rolling resisstance through their special treaad and compound.

LESS AEROD DYNAMIC DRAG Aerodynamicc chassis panelling.

LIGHTWEIGHT CONSTRUCTION A lighter 7.5 ton capacity front axle and spring combination is fitted. This reduces the weight by 65kg.

Low weight aluminium rims will also reduce weight by a further 200kg*. These are optional extras on the TGS 26.440 6x4 BLS - LX. *6x4 only

DRIVER TRAINING The aim is to drive economically and arrive safely at the destination. When it comes to economy training, driving style and vehicle fuel saving techniques are of utmost importance and is the focus of professional MAN training.

Professional driver training has shown to provide fuel savings of up to 10 percent.

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TWA | Oct/Nov 2012

* For illustration purposes only

LESS AUXILLIARY POWER REQUIRED MAN Air Pressure Management (APM): The compressor cuts in only when needed. It thus remains disengaged for up to 90 percent of the time, during which it requires no power.

Alternator with four percent increased efficiency and ten Amperes higher power delivery.

DRAFTFCB CAPE TOWN 10001522CT/E

Truck drivers spend a lot of time on the road, which makes it hard for them to focus on their health.

With free medical screening and medication at selected Engen TruckStops across South Africa, Engen is making it more convenient for truck drivers to be healthy so that they can keep giving their best while on the job.

FESARTA NEWS MOZAMBIQUE

Border operations assessment (BOA) undertaken at Ressano Garcia border

SOUTHERN AFRICA

The KTA HCV drivers training institute THE OFFICIAL LAUNCH of the first

AS PART OF ITS Coordinated Border Management (CBM) programme, Southern Africa Trade Hub (SATH) undertook a BOA at Ressano Garcia along the Mozambique/ South Africa border. The objective of the assessment was to establish processes used by the different agencies to clear goods, identify challenges and recommend mechanisms to addresses obstacles. The assessment also entailed establishing the time it took for trucks to cross the border by physically recording arrival and departure times at points where the clearance of goods was undertaken.

SATH held discussions with both public and private agencies operating at the border: customs, immigration, health, agriculture, police, traders association, clearing and forwarding agents and insurance companies. The

SOUTH AFRICA STRIKES

2013 Road freight industry negotiations, threeyear deal signed

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TWA | Oct/Nov 2012

agencies explained their roles and mandates, how they carry out their day-to-day operations at the border, their working relations with other agencies at the border and the challenges they face in carrying out their duties.

SATH also had discussions with the One Stop Border Post (OSBP) project team to assess progress on the initiative. The OSBP is at an advanced stage and only awaits the adoption of the legal framework by South Africa, which is anticipated by the end of 2012.

Findings of the BOA and recommendations will be disseminated through a national and border workshops to which senior officials of agencies operating at the border and border officials will be invited. At these workshops Joint Border Committees will be established to take the recommendations forward to streamline border management.

AFTER A TOTAL of 19 days of strike action and over four months of negotiations, parties finally managed to settle the dispute with a three-year deal, which will be implemented on 1 March 2013, subject to the Minister of Labour promulgating and extending same to non-parties. The strike is therefore called off and employees are expected to return to duty with immediate effect.

The three-year deal indeed comes at a premium but the Road Freight Association (RFA) believes that under the circumstances and in the long term it is the best possible agreement.

The ATB has been agreed at 10% for 2013, 8% +0.25% six months later in 2014 and 9% in 2015. The total package cost calculates to an average of 8.7% per annum.

The RFA wishes to thank its members and the RFA Board for their continued support during these very difficult negotiations.

heavy commercial vehicle (HCV) drivers’ training institute are in top gear after the Kenya Transporters Association (KTA) completed the installation of three stateof-the-art truck simulators recently procured from France with assistance from USAID-COMPETE. The simulators include real truck driving cabs with motion platforms and a monitoring work station. The Truck Simulator technology is designed to offer real-time driving experience in a virtual 3D environment. It reproduces real driving conditions and hence offers the trainee variety of options from basic to extreme conditions. It therefore makes it possible for a driver to anticipate different circumstances and prepare to handle them accordingly without risking lives and damaging trucks.

This institute will give fresh impetus to road safety programmes currently implemented across the country. It’s envisaged that within the first year of operation, the institute will have undertaken education, training and (re)certification of over 6 400 drivers with an estimated annual growth of 20%. Buoyed by this positive forecast, which is in line with the Associations’ core objective of enhancing road safety and awareness through mitigation of road carnage, the KTA management is already scouting for the best brains in the drivertraining field, who will be charged with ensuring the highest possible standards of training and education. In seeking to provide a one-stop solution to the training and education needs of HCV Drivers, the centre shall run two programmes, namely HCV-Driver education and training, and HCV-Driver Certification. Plans are also under way for a comprehensive training curriculum – the result of broad consultations and research.

Upon receipt of the simulators, the KTA CEO noted: “Our past efforts on road safety have yielded substantial positive results but much needs to be done to effectively mitigate road carnage, thus the need for an integrated approach to driver training. This is conclusively articulated in the Institutes’ plan.”

FESARTA NEWS SOUTHERN AFRICA

SA welcomes SADC infrastructure plan MAPUTO — SOUTH AFRICA has welcomed the adoption of a regional infrastructure master plan by SADC leaders who met in Maputo at the weekend. The SADC heads of state approved the plan, which is expected to boost regional trade, following their two-day summit in the Mozambican capital.

The plan, to be implemented over a 15-year period beginning from next year, will serve as a key strategy to guide setting up of efficient and cost-effective trans-boundary infrastructure connecting all SADC member states in areas of energy, water, ICT and transport.

The region’s infrastructure in critical sectors is said to be so poor that a deficit was estimated to be to be about US$100 billion (R867.64 billion).

Speaking to SAnews in Maputo, the Trade and Industry minister, Rob Davies, noted that the new plan will put emphasis on the cross border infrastructure that South Africa identifies in its own Strategic Infrastructure Plan adopted by government recently.

“Our own infrastructure programme, particularly the 17 SIPs, will be strongly supporting the SADC plan and we have already identified a few projects that we are highlighting and the SADC plan will help us to get a bigger

broader picture,” Davies said. He welcomed the fact that a connected SADC infrastructure would strengthen regional integration and add meaning to the free-trade area agreement that many countries in the region are battling to implement.

“As South Africa we have always argued that the biggest barriers to promoting a more equitable pattern of interregional trade, which is what everybody else wanted to see, has always been a lack of a common plan that links all of us.

“We think that the way forward now is to address the supply capacity issues as well as infrastructure challenges that are blocking inter-regional trade.”

It’s still not clear how funding for the infrastructure plan will be structured considering that countries are still battling to put together even the Regional Development Fund (RDF) that was agreed to in previous summits. Last week, the African Development Bank proposed that a funding mechanism in the form of an infrastructure bond be established to speed up the plan, asking SADC countries to put 5% of their foreign reserves, estimated at US$22 billion, towards the establishment of initiative.

MOZAMBIQUE

New bridge planned for the North-South Corridor over the Zambezi, at Tete THE MOZAMBIQUE deputy minister of Public Works, Francisco Pereira, declared that the government intends to divert heavy traffic to a second bridge at Tete, over the Zambezi, that will be built six kilometres downstream from the Samora Machel bridge. Pereira said that work on the new bridge has started, and should take between three and four years.

The cost is estimated at over €70 million (R785.85 million).

This bridge will be about two kilometres long, and will link Tete city to the town of Moatize, which is about to become the centre of the country’s coal mining industry. The Brazilian mining giant Vale and Riversdale Mining of

Australia have mining concessions in Moatize and expect to start producing and exporting coal later this year.

In addition to the bridge, 16 km of new roads will be built on both banks of the river, and a protective dike will be built around the opencast coal mines.

“When the construction of the new bridge is completed, all trucks will use it and the Samora Machel bridge will be restricted to use by light vehicles and pedestrians,” said Pereira.

The company granted the concession to build the new bridge will be expected to maintain it and the approach roads for 30 years, recovering its costs through a toll gate.

AFRICA

Africa trade bloc plans on course PLANS TO CREATE a 26-nation free trade area by integrating three existing African trade blocs by July 2014 are on track and the only major sticking point is likely to be harmonising rules of origin, the three blocs have said. In recent interviews with Reuters news agency, the East African Community, the Common Market for Eastern and Southern Africa, and the Southern African Development Community said they aim to create a free market of 525 million people with an output of US$1 trillion (R8.68 trillion) when they unite.

Although African economies are growing fast — second only to Asia — the continent has attracted criticism over its slow pace of integration. The delay is viewed as driving up the cost of doing business in the region.

COMESA secretary-general Sindiso Ngwenya said tough negotiations on rules aimed at making cross-border trade easy for firms and small traders lie ahead. “The major challenge for the tripartite FTA negotiations will be rules of origin,” he said. “Whereas COMESA COMESA and the secretary-general, EAC have identical Sindiso Ngwenya rules of origin, SADC has different rules of origin. So, we have to engage them.” The World Bank said in a report in February that red tape and trade barriers were costing Africa billions of dollars and depriving the region of new sources of economic growth. But Ngwenya said the process would move quickly because of the experience gained in building the existing trade blocs. “For us, there is nothing new in this FTA (free trade area) because it is something that is already there,” he said. “The timetable agreed upon is not only realistic but also feasible. Some of us can even argue that we could even move the process faster in terms of launching that FTA.” Many of the countries in the three blocs are members of more than one trade area. Zimbabwe and Zambia, for example, are members of SADC and COMESA while Kenya has membership in EAC and COMESA.

TWA | Oct/Nov 2012

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NEWS DESK BORDER POST

Work on one stop border post set to begin LOCAL AND REGIONAL traders using the Rusumo border post along the Rwanda-Tanzania border will no longer spend much time once the construction of the one-stop border post (OSBP) is complete.

According to the permanent secretary in the Ministry of the East African Community (EAC), Ambassador William Kayonga, construction work is due to begin anytime as all equipment is already in place.

The OSBP consists of three phases, namely the construction of Rusumo international bridge, building of a new twokilometre road between the border facilities and putting up the actual OSBP facilities.

The project is The current bridge funded by Japan at Rusumo between International Cooperation Agency (JICA).

Tanzania and Rwanda It is expected to be completed in November 2014 at a cost of about 29.7 billion Rwandan francs (R404.89 million).

Under the OSBP, services will be harmonised, with incoming traffic jointly cleared by officers from both countries from one side of the border and vice-versa for the outgoing ones. The move is also expected to ease the movement of people.

Kayonga observed that the construction of the one border post is a means to address the issue of trade barriers and facilitate free movement of people as stipulated in the EAC treaty.

“It will benefit the EAC in trade facilitation with less border procedures and faster clearance by better border facilities for trucks and travellers from both countries,” Kayonga pointed out.

One of the challenges facing regional traders is the issue of delays at border posts as government agencies work autonomously, hence the need for harmonisation of their operations.

Some of the state agencies normally based at border posts are immigration, Rwanda Revenue Authority, the police and Rwanda Bureau of Standards, among others.

The director of infrastructure in the EAC ministry, Jean de Dieu Ndacyayisenga, pointed out that Rusumo OSBP is the only border facility constructed under the EAC framework, adding that similar projects would be undertaken at Kagitumba, Gatuna and Cyanika border posts,which border Uganda.

Recently in Kigali, Theo Lyimo, TradeMark East Africa’s director of Integrated Border Management and One Stop Border Post, advised member countries to employ a single border management system to reduce delays.

“The integrated border management should have a system of controlling all the agencies at the borders. This will help eliminate trade challenges affecting the region, including high prices of products, high costs of transport and others,” he noted.

Source: www.twa.co.za/2012/10/11/work-on-one-stop-border-post-set-to-begin

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TWA | Oct/Nov 2012

AFRICA’S PORTS FORUM

Reducing shipping costs WITHOUT SIGNIFICANT development of seaports and harbours, economic activity across the entire continent could be stunted by lack of capacity and cargo congestion. The forum is the maritime industry’s response to growing trade volumes, reports Maritime Executive.

Soren Du Preez, programme director for the African Ports Evolution 2012 Forum, stated that port engineers, terminal directors, harbour masters, shipping lines, importers and exporters from all over Africa will have the opportunity to “share their experiences and successes in modernising commercial seaports and harbours for increased cargo handling capacity”.

The forum will take place from 20 to 22 November 2012.

Source: www.twa.co.za

MACHIPANDA RAILROAD

Back in action THE 317 KM LONG Machipanda railroad is once again operational, linking Zimbabwe to Mozambique.

The railroad is being used again after the Beira railway system returned to the management of state company, Ferro de Moçambique in December 2011.

The Beira railway system, which includes the Sena line linking the city of Beira to the Moatize coal basin in Tete Province and the Machipanda line connecting Beira and Zimbabwe, had been awarded as a concession to the Beira railroad company, Companhia Caminhos de Ferro da Beira (CCFB) – a consortium made up of Ricon, Rites (a consortium of state Indian companies) and Ircon Internacional with 51%, and the Mozambican state rail and port company, Portos e Caminhos de Ferro de Moçambique (CFM), with the remaining 49%. The trains travel on a route from the port of Beira to Zimbabwe carrying cargo of mainly fertilisers and wheat, and return with granite and container cargo. Since renovations and upgrades were made to the line, the number of derailments has dropped from around 60 to two or three a month. Since December 2011, CFM has increased the number of people involved in the work to repair the line and has been able to refurbish some railway stations, reopen crossings, replace rails and sleepers, replace ballast, reinstate drainage ditches, cut back grass, as well as implement new level crossings.

CFM has leased trucks from National Railways of Zimbabwe to ensure that an average of three trains per day travel along the Machipanda line and the time it takes to travel along its length has already been reduced from 24 to 12 hours.

Source: www.twa.co.za

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WORLD DRIVER’S CHAMPIONSHIPS

Team SA heavy vehicle drivers take top honours Team SA has won 10 medals and the country was named overall winner of the 28th Union Des Chauffeurs Routiers World Drivers’ Championships, hosted at Sun City.

“T

HE HEAVY TRANSPORT sector is a critical and integral part of the regional economy. The safe, affordable and accessible provision of transport is vital in ensuring that this important lifeblood sustains the growth and development of our young democracy.

Crashes involving heavy goods vehicles are costly in terms of loss of life, damage to property and reduced

The practical driving competition was designed to assess each driver’s ability to manoeuvre a vehicle

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TWA | Oct/Nov 2012

productivity. South Africa’s participation and excellent results demonstrate conclusively that investment in effective and efficient training not only produces world-beating results, but will also have a positive impact on an operator’s bottom line,” says the acting CEO of the Road Traffic Management Corporation (RTMC), Collins Letsoalo.

The championship aims to promote road safety and improve the knowledge, skills and attitudes of heavy vehicle professional drivers by benchmarking their performance with world-class competitors and it is hoped that in this way the standards of heavy vehicle driving within South Africa will be improved and the occurrence of road

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SOUTH AFRICAN TEAM Category

Participant

Bus

LM Mokutswane S Motsepe SB Qongqo

Rigid

V Naidoo A Naidoo ME Mosia

Rigid 4-wheel trailer

W Ngwenya I Khan S Bunsee

Articulated

P Mananyetjo J Rossouw J Schreiber

Delivery Vehicle

Category A Rigid Drivers

Rolling out the results The championship consisted of a practical driving competition, a theoretical assessment, a pre-trip/ load inspection assessment and an economical driving assessment. The participants competed for top honours in five categories, namely light delivery vehicle, rigid trucks over 12 t, bus, semitruck and trailer, and articulated truck.

The practical driving competition included 15 individual tests, designed to assess each driver’s ability to manoeuvre a vehicle as precisely as possible over, through and around a number of challenging obstacles.

The competitors came from 15 European countries, including France, Holland, Germany, Finland, Switzerland and Belgium, as well as other Southern African participants, which included Zimbabwe, Namibia, Botswana and

Vishnu Naidoo (South Africa)

2

Jens Marmann (Germany)

3

Harry Winqvist (Finland) Championship team

S Ntuli L Mtshali E Motswai

offences and casualties reduced. Through the competition, companies are also encouraged to promote safe, competent and economical driving and thereby become road safety ambassadors in their sector.

The Union Des Chauffeurs Routiers (UICR), of which South Africa is a member, was founded in 1957 and serves as the umbrella association for all drivers’ associations internationally. The championship takes place every two years. The first Africa-based world championship was hosted by RTMC in conjunction with the Department of Transport and the North West Department of Human Settlements, Safety and Liaison.

The event was co-sponsored by Engen, Scania (which provided the vehicles used in the competition), and Eskom, and as part of a legacy project, a special Junior Traffic Training Centre was established by Syntell in the neighbouring village of Ledig, which falls under the jurisdiction of the Moses Kotane Local Municipality in the Bojanala District.

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Tanzania, among others. The 15 participants in the South African team were selected from South Africa’s own Professional Driver of the Year competition, which is coordinated by the RTMC. Although Toni Kuosmanen of Finland was crowned the overall individual champion, South African drivers obtained medals in the categories of rigid (1st), Bus (1st and 3rd), Rigid Truck and Trailer (3rd), Light Delivery Vehicle (1st) and Articulated Economical Driving (3rd). All in all, this resulted in the South African team being crowned overall country champions. Germany came second in the overall team championships, with Finland coming third.

Third place in the bus category was taken by female driver Lettah Mokutswane from Putco, who was elated with her win. “I was very nervous thinking about participating with all these men from overseas countries. I never thought I would stand a chance, but as I progressed through the contest I became confident. This means a lot to me, my company and most of all to the women of South Africa during Women’s Month.

It proves that we do not have to stand back for anything – if you can dream it, you can do it,” said Mokutswane.

Following the event the winning South African team took an open bus tour of the surrounding Rustenburg community and Mogwase.

2

Germany

3

Netherlands

Category B Bus Drivers 1

Simon Motsepe (South Africa)

2

Pentti Havi (Finland)

3

Lettah Mokutswane (South Africa) Championship team

1

South Africa

2

Finland

3

Germany

Category C Articulated Drivers 1

Toni Kuosmanen (Finland)

2

Andrea Amato (Italy)

3

Kris Agten (Belgium) Championship team

1

Finland

2

Germany

3

Switzerland

Category D Rigid truck & 4-wheel trailer Drivers 1

Ralf Ruscher (Germany)

2

Janne Hotti (Finland)

3

Ismail Khan (South Africa) Championship team

1

Germany

2

South Africa

3

Poland 2014 UICR president, Ludwig Buchel, was thrilled at South Africa’s high standard of hosting the contest. “The next competition will be hosted

by Poland in 2014 and South Africa has really raised the bar. It is going to be extremely difficult for Poland and others to maintain the standard of the competition, the awards’ function and the related events that are truly memorable,” concluded Buchel.

South Africa

Finland

Category E Light delivery vehicle Drivers 1

Solomon Ntuli (South Africa)

2

Peter Wotzel (Germany)

3

Albert Lippuner (Liechtenstein) Championship team

1

South Africa

2

Germany

TWA | Oct/Nov 2012

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ABNORMAL LOAD OPERATORS

Abnormal challenges ahead Operators in the abnormal loads environment continuously face challenges in their day-to-day operations; however, administrative and legislative challenges have become more frequent in the past few months. Chantelle Mattheus speaks to Gavin Kelly, RFA technical and operations manager, about these operating constraints.

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HE NATIONAL ROAD TRAFFIC Regulations (NRTR) prescribes limitations on vehicle dimensions, and when a vehicle or load can’t be dismantled without disproportionate effort, expense or risk of damage to units, it’s classified as an ‘abnormal load’.

Vehicles are abnormal if of atypical length, width, height, overhang, load projections and wheelbase, as regulated by the National Road Traffic Act (NRTA).

Seemingly fairly simple and easy to classify, this becomes somewhat compounded for the abnormal load operator when facing differing sets of rules between provinces and even traffic departments or local authorities within a province, as well as a total disregard by government authorities of their own policies and procedures, and an inability by traffic officials or police to provide proper escorts, according to Kelly.

Further challenges that are currently facing the abnormal freight industry include increasing costs for services, “out of relation to inflationary pressures or indices”, and key decisions being taken without the relevant industry role players being present.

“Not a single official works in the industry or has practical experience in abnormal loads,” explains Kelly.

Gavin Kelly, According to him, the technical and operations manager, RFA lack of any technical expertise on the issue at national department level remains a huge stumbling block to doing business.

“Pressure is on the minister of Transport regarding the TRH11 and the norms for transporting loads.”

Business negatively affected He highlights that abnormal load operators are severely affected by these challenges, which can in turn result in

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TWA | Oct/Nov 2012

delays that incur penalties from customers, uncertainty in the operation of a load and place signed agreements in jeopardy.

“New vehicles take months to be approved before construction can begin,” explains Kelly.

Most destructively for the industry as a whole is that these ‘administrative’ challenges, which can also include corrupt practices, have a negative impact on the operators’ cash flow and financial security, resulting in “unstable employment and lay-off of drivers and technicians”, according to Kelly.

Otherwise operators end up closing down or changing their industry focus to standard loads or the like. The Road Freight Association (RFA), according to Kelly, has undertaken a number of focused initiatives in this respect, which include lobbying the authorities, the exposure of corruption and corrupt practices, various research projects to determine scientific basis for standards and practices, as well as the tracking of individuals involved in corruption or non-performance, and ultimately the civil litigation of these individuals for costs incurred to operators. Additionally, the RFA has created a dedicated resource for abnormal load matters and is in the process of setting up a section on its website dealing specifically with abnormal load matters Kelly adds that pressure is also being placed on the minister of Transport regarding the TRH11 and the norms for transporting loads.

Licensing investigated Most noticeably, in recent months, licence exemptions have been removed so that abnormal load operators need to pay the same licence fees as standard freight operators, which has huge cost implications for the abnormal load operators, warns Kelly.

“The exemption in licence fees was due to abnormal operators not being able to utilise or access the road network like

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all other full licence payees,” explains Kelly, adding that the expenses to a company have not been planned or budgeted for currently, which can result in the operations no longer being financially viable, leading to a number of operators closing their businesses.

As an example of the potential cost to the abnormal load operators, Kelly explains that licence fees increase from R250 000 to R2.5 million per year. “These costs then also need to be recovered from clients,” he says.

The bigger picture Although, as Kelly points out, only about 10% of the road freight transport sector is “abnormal”, i.e. outside the parameters set by the Act, their role in the larger economic growth and development of the country cannot be underestimated.

“Without abnormal load operators there would be no power stations, no petroleum and mine refineries, and many other industries that require ready-made components or parts of the manufacturing

Transporting dangerous goods

A

Only about 10% of the road freight transport sector is ‘abnormal’ processes to be delivered to site. The mining industry uses this industry to bring vehicles and parts of draglines to the various mines, and there would be no Gautrain as well, as this was brought up by road. Technologically and scientifically South Africa would still be in the 1930s,” states Kelly.

An ideal world “The exemptions should remain given the access to the road network and the permit fees paid to use the road network,” says Kelly, adding that if licences are changed then the prohibitions on night and weekend use should be withdrawn and own escorts allowed as this would reduce costs considerably and remove huge opportunities for corruption.

This is what the RFA is lobbying for, as well as changes to the prescripts of the TRH11, including the need for original documentation on the vehicles. “Most of the cost drivers lie in the administrative functions of the authorities as noted in the TRH11,” says Kelly.

The proposed changes from the industry would, if implemented, make operations far easier and significantly drive down costs.

“What the authorities want to maintain will just entrench corruption, costs and inefficiencies.”

“We will engage as required and in the format necessary to protect the interests of the industry,” states Kelly, concluding that the aforementioned may have raised more questions than answers – for now.

S PART OF its mandate, Responsible Care holds regular transport workshops with the most recent one entitled ‘Best practice when transporting dangerous goods – is your company on board?’ The workshop was attended by 138 delegates, representing 60 companies, comprising mostly hauliers and logistics service provider companies.

Keynote speaker, Craig Warr, operations director of Manline, a diversified logistics firm based in Pietermaritzburg, stated that his company has become an employer of choice for heavy-duty truck drivers due to a number of effective campaigns that put drivers at the centre of its trucking business.

According to Warr, key for his company is ensuring the business revolves around the driver and journey management. “Take the time to recruit the right driver and train him to the requisite standard in order to create a safety-focused working environment. It is also critical to structure an effective driver wellness campaign wh while establishing a non-compromising world class op operating system and procedure. The later should fo focus on continually improving these standards, en ensuring the driver is efficient enough in identifying and managing unsafe behaviour.”

“If transport companies can create a safety-focused operating environment, where drivers have a genuine and sustainable commitment to working safely and understand the implications of not doing so, then I believe it will drastically cut the amount of truck-related accidents.”

Today, Responsible Care is Craig Warr, operations practiced in 55 countries. South director, Manline Africa has 144 companies that implement the initiative, with an additional 17 consultant members in the country. Member companies that are signatories to Responsible Care are required to ensure that their transport providers comply with the South African Safety and Quality Assessment System (SQAS).

SQAS is accepted as third-party verification of Responsible Care for haulier members.

“The business revolves around the driver and journey management.”

TWA | Oct/Nov 2012

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COMMERCIAL VEHICLE

FAW

Increasing capacity to deliver

FAW South Africa has reaffirmed its drive to increase local capacity to deliver through its investment at Coega IDZ. Chantelle Mattheus discusses the new plant.

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HE OFFICIAL sod turning ceremony took place in February of this year at Coega and our R700 million investment will see FAW South Africa develop a state-of-the-art production facility for trucks and cars in the expanding economy in this powerhouse of the continent,” said FAW South Africa MD, Richard Leiter, at the recent launch of the J6 6x4 truck-tractor in Johannesburg.

“FAW has a history of nearly 20 years in South Africa. As such, the FAW group has decided to invest in the Coega Industrial Development Zone (IDZ) with plans to build a 5 000 truck production base, an important measure for the FAW Groups International strategy. The Coega plant will become our most important overseas production base; its products not only meeting the market demand in South Africa, but also meet African export requirements,” said Dong Chunbo, vice president of China FAW Group.

Production at the facility is set to commence at the end of 2013. From COEGA, Christopher Mashigo, executive manager, expressed his delight in the official launch of the J6, as it repFAW South resents the final stage in the journey to Africa MD, Richard Leiter construct the FAW factory in COEGA. “I and my colleagues here celebrate that the land has been secured, financial closures reached and the appointment of WBHO Construction to design and

“It has been one of FAW’s most successful models worldwide.”

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TWA | Oct/Nov 2012

construct the assembly plant in Zone 2 of the COEGA IDZ is finalised,” he said.

“The R200 million construction investment will see over 1 000 jobs being created during the construction phase, scheduled for completion in December 2013. With its planned expansions, FAW will invest R600 million into COEGA IDZ, through joint funding provided by FAW and ChinaAfrica Fund.

“The launch is no doubt one of the carefully planned stepping stones of the FAW Group into South Africa and should be seen as a confirmation of its belief in the potential offered by our country.”

J6 truck-tractor launched

The J6 truck-tractor, which has a gross combination mass of 56 000 kg, is powered by a 12 ℓ six-cylinder in-line engine, which provides 338 kW power at 1 900 rpm and a 16-speed range change gearbox, “benchmarking itself against the best in the industry.”

“It has been one of FAW’s most successful models worldwide and I have no doubt it will be just as successful over here. The J6 is a perfect example of the company’s ability to produce state-of-the-art trucks to suit every customer’s need and we have no doubt that it will play it’s part in transforming the long-haul segment in South Africa, while helping to increase our footprint in the country and the African continent,” said Leiter at the launch.

The model also has a geared road speed of 120 km @ 1 900 rpm, with gradeability (at V) being 30.4% @ 56 000 kg. The gearbox can also be ordered with or without Intarder. “This cutting-edge series represents the company’s long line of commercial vehicle expertise and incorporates high levels of innovation, reliability, comfort and driveability that have made FAW a brand leader around the world. Leading global suppliers to the US$1.6 billion (R13.1 billion) J6 programme are Bosch, ContiTech, Eaton, Hankook, Jost, Man Hummel, Sachs, Spiralock, TRW, Wabco and ZF.” Other FAW commercial models available locally in the heavy and medium commercial vehicle sector include the 8 t 4x2 freight carrier and the 7 t 4x2 freight carrier, as well as 5 and 4 t versions. “The transportation industry is a tough, competitive business, requiring maximum efficiency. The FAW J6 tractor-truck represents a steadfast continuation of the company’s commitment to meeting the evolving needs of our customers’ operations with world-class heavy trucks that offer industry leading value,” concluded Leiter.

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TSUNAMI DISRUPTIONS

ITSA maintains momentum Isuzu Trucks SA has recovered from the effects of the earthquake that hit Japan in 2010, wreaking havoc with worldwide supply chains.

W ITSA CCO, Craig Uren

E HAVE FULLY recovered from the effects of the tsunami, with production at 100% since November last year,” said CCO, Craig Uren, at the company’s recent mid-year review for the media, hosted in Midrand on 7 August 2012.

He added that despite the natural disaster, and the continuing challenges posed by the recent economic recession experienced globally, the local truck market has grown 6% in the first six months of 2012.

In discussing the market view, Uren maintained that the success of the market this year could be clearly viewed as a function of all the replacements as corporate businesses simply replaced their

existing fleets. “Replacements are, however, fundamental in running effective and efficient fleets,” said Uren, adding that the replacement cycle also contained a fair amount of right-sizing capacities for actual purpose.

According to Uren, truck rentals had also recovered prior to tsunami numbers; however, nobody was being too bold in growth plans and planning for supply.

Increasing share According to Uren, Isuzu Trucks had also made gains in all segments of the truck market, despite a relatively close competitive environment. Year to end in June market share in medium commercial vehicles stood at 19.5%, 3.3% higher than the 2011 market share of 16.2%. In the heavy truck category market share remained flat at 22.3%; however, in the extra-heavy segment the company held 3.3% of the market – up from last year’s 2.8%.

Uren concluded that he expected the truck market in 2012 to reach around 28 000 units, mostly based on the replacement market from what he termed the boom cycle of four or five years ago. “A truck market of between 25 000 and 30 000 is a fair truck market for South Africa.”

TRUCK SALES

Growth despite slowdown Sales results in the commercial vehicle industry took a slight downturn during August 2012. Compared to sales in August 2011, sales decreased by 1.76% to reach 2 271 units.

T

UD Trucks Southern Africa’s MD, Jacques Carelse

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HIS IS ACCORDING to the latest combined results released by the National Association of Automobile Manufacturers of South Africa (NAAMSA), Associated Motor Holdings (AMH) and Amalgamated Automobile Distributors (AAD).

Looking at the individual market segments, medium commercials increased by 11.8% compared to the same month last year, totalling 815 units. Sales in the heavy commercial vehicle segment however decreased by 16% to 353 units, while the extra heavies also saw a decline in sales of 3.8%, to reach 1 040 units during August. Bus sales continued their downward trend, declining by 22.2% to 63 units.

According the UD Trucks Southern Africa’s MD, Jacques Carelse, the market is continuing to perform slightly below the

TWA | Oct/Nov 2012

anticipated rate. “The market has grown steadily by 4.8% during 2012 with 18 566 units sold, and even though it is below our forecasted growth rate of 12%, we are still very positive about the market’s performance so far this year,” explains Carelse. “We are anticipating the market to reach between 27 500 and 28 000 units, bar any major upset as a result of, for instance, the Euro zone crisis.”

Carelse says sales to the FMCG and construction industries are continuing on a growth path, while the long-haul segment has slowed down slightly due to issues like the new fuel pipeline and some seasonality where fleets replace vehicles during the third quarter of the year. “We are therefore expecting sales to pick up again from September through to December,” said Carelse.

He continued to say that government’s new preferential tendering policy for trucks made in South Africa is expected to impact the market over the medium to long term. “The industry is also keenly awaiting the announcement of the new APDP (Automotive Production and Development Programme) guidelines for the truck and bus sector, as this will not only support the future of the industry, but also assist companies in making long-term investments in the country.”

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USED COMMERCIAL STOCK

TruckStore in Centurion opens The used commercial vehicle specialist, TruckStore from Daimler, was launched on 6 September 2012 by Mercedes-Benz South Africa in Centurion, Gauteng, amid great anticipation and enthusiasm.

A

CCORDING TO Mercedes-Benz South Africa (MBSA), it is the first market performance centre in the world to bring TruckStore outside of Europe, this ensures that it is set to become one of the largest used commercial vehicles dealers selling used trucks, vans, buses and trailers.

“TruckStore is a Daimler initiative that began operations in 2002. This very strong model concept has been adapted to suit the Southern African market,” says Martin Zimmermann, president and CEO of MBSA. He adds that TruckStore Centurion will be operated by MBSA’s own retail arm and headed up by an experienced TruckStore man Oliver Marte.

“TruckStore sells vehicles of all brands, body configurations and ages. Conveniently situated off the N1, on 30 000 m2 of prime real estate, the facility will have ample parking for large vehicles and is well-situated in Gauteng,” says Marte.

Dedicated reconditioning centre TruckStore will have a dedicated reconditioning centre at Zandfontein, which will also serve as the national return centre for its finance house – Mercedes-Benz Financial Services. According to MBSA, the preparation of the used commercial vehicles by dedicated technicians and service staff to bring them up to set TruckStore benchmark standards will be undertaken at the Zandfontein facility.

“As part of the significant growth in the used commercial vehicle segments and the close collaboration, the MBSA dealer network will be strengthened.”

Trade-ins welcome TruckStore also accepts commercial vehicles of any vehicle type or brand in part exchange (trade-ins). The condition

of every vehicle is thoroughly checked and assessed on the basis of uniform standards.

Vehicles are then subdivided into the product categories gold, silver and bronze. This ensures that every vehicle delivers what is promised.

Customers can search for vehicles online at www.truckstore.co.za. Vehicles are stored with photographs, the key technical data and offer prices.

Martin Zimmermann, president and CEO of MBSA

Conscientious construction Construction work on the R20 million office building, which will house offices and display facilities, started in February following the official sod-turning ceremony. Consideration has been taken into the design of the building, which will be functional and environmentally friendly. Certain eco-friendly measures have been put in place such as solar geysers.

Going for gold?

On the shop floor, vehicles are classified as gold, silver or bronze depending on their priceperformance ratio.

GOLD • vehicle max. 4 years’ old • warranty/manufacturer warranty • technical inspection in line with TruckStore standards • all necessary repairs and services carried out • roadworthy certificate • fully refurbished • tyre tread at least 6 mm

SILVER • vehicle max. 6 years’ old • warranty optional • technical inspection in line with TruckStore standards • roadworthy certificate • refurbished • tyre tread at least 3 mm

BRONZE • technical inspection • roadworthy • basic cleaning

TWA | Oct/Nov 2012

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COMMERCIAL VEHICLE • Trailers

MIX TELEMATICS

Trailer tracking solution The importance of tracking trailers transporting high-value or high-risk loads, is becoming a critical factor for fleet managers.

U

NTIL RECENTLY, it was adequate to simply ensure the truck could be tracked and fleet managers were happy. This is no longer the case, especially with the movement of goods north of South Africa’s borders.

MiX Telematics MD for Africa – Fleet Solutions, Gert Pretorius, says: “For the first time, fleet managers can have full control of their trailers’ locations and activities, efficiency can be improved dramatically, and instances of lost trailers reduced, irrespective of whether they are coupled with or detached from the horse or truck tractor.”

The MiX Telematics Trailer Tracking solution caters for both trailers with or without a permanent power source. Through using GPS and GPRS technology, the wired Trailer Tra a Tracking on your mobile

T

railer tracking is accessible via MiX Fleet Mobile, giving fleet managers flexible control over their most valuable assets. Users can view their trailers’ locations on a map and get quick views of their trailers’ statuses. They can also check speed and positioning details, start and end points, and their trailers’ locations in the yard using the Augmented Reality feature (iPhone and iPad only). Trip reports for up to 48 hours prior are also available.

or wireless trailer tracking units can be tracked independently. Being in a position to manage trailers independently from the truck tractors is also hugely empowering for those organisations relying on outsourced or subcontracted truck tractor companies for information on their trailers and loads.

Other critical information at the fleet manager’s disposal include distance travelled, routes taken, as well as servicing and licence reminders, meaning operators are in the position to have more control over their trailers than ever before. Fleet managers can also track their trailers positions and statuses via their smartphones or tablets, using MiX Telematics’ Android or Apple iOS compatible mobile application.

“Trailers are an integral part of freight movement in Africa, and using technology to enhance productivity, security and utilisation of these mobile assets, which haul the bulk of the country’s industrial and consumer goods, is of paramount importance to fleet managers.

“Operational efficiency is improved, resulting in a reduction of operating costs, and risk mitigation improves as the trailer is just as traceable as the truck tractor, providing a recovery alternative in cases where the asset is detached from the truck trailer as is often the case.”

According to Pretorius, research has determined that for every truck tractor on the road there is an average of eight trailers, reflecting both the size and potential of this market.

“There is a huge need for a product focusing on monitoring the movement of trailers due to the size of the market and the fact that it is a sector that has been ignored.

“Because it is cloud-based, we are able to leverage off our existing infrastructure, which already supports a globally accepted fleet management solution. Trailers are one of the most critical pieces of equipment within the logistics supply chain. With 99% of all goods being delivered throughout Africa on the back of a truck, the impact for the industry of monitoring the trailer, is going to have a positive impact throughout the whole logistics supply chain.”

W New manufacturing PARAMOUNT TRAILERS

plant on schedule

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TWA | Oct/Nov 2012

E ARE extremely pleased with the progress we have made over the past few months on the development of our new manufacturing plant,” says Warren Marques, MD for Paramount Trailers, one of South Africa’s leading and established commercial trailer manufacturers. “The development is running on schedule and we are excited at the prospect of relocating in 2013 and being able to expand our operations.”

Warren says that the new facilities will be well worth the investment. The new plant is state of the art and will be equipped with the very latest equipment, enabling the company to improve its efficiency and increase production.

Having said that, Warren says that the company will never forget where it came from.

The 57 000 m2 of prime real estate on the R59 (south of Johannesburg) is a bold statement, says CEO and founder, Fernando Marques, proudly. “I believe that it is the right time for us to be taking this step forward and it will play an important role in allowing us to continue to differentiate ourselves from our competitors.”

COMMERCIAL VEHICLE • Trailers

SERCO’S NEW FREIGHT BODY

Improved payload A new design truck body allows companies to explore the benefits of a sturdy GRP construction.

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HIS IS ACCORDING to Serco MD, Clinton Holcroft, who says the weight characteristics are an improvement of over 10% when compared with the existing fibreglass construction. This equates to a 250 kg saving in body weight for a 7.3 m body.

Holcroft states that design features include a one piece, profiled, galvanised internal scuff, which is secured directly to the sub frame allowing for a lightweight yet strong panel securing platform and heavy-duty protection to the side walls from pallet loading. The curved translucent roof panel allows natural light into the load area for improved visibility. The

rear bumper has been reinforced and is removable for quick repair turnaround if required. The rear frame is galvanised and does not require painting.

“An aesthetic feature is the smooth one-piece side panel incorporating glass reinforced plastic (GRP) seamless skins for added strength and are also perfect for signage. The GRP skins are UV protected and rivetless for better leak prevention,” explains Holcroft “Serco’s new design caters for the serious dry freight transporters looking for a body that will deliver improved payload and will be long-lasting despite South Africa’s demanding loading conditions.”

From left to right Bryan James, Scania sales representative, Lynn Vergos, Serco sales representative and Clinton Holcroft, MD, Serco

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PARTS & MAINTENANCE • Fuel

SHELL

Fuelling your logistics success Yanna Erasmus sits down with Raymond Abraham, Shell South

Africa’s commercial technical manager, to talk about fuels and their impact on logistics, vehicle performance and maintenance.

Raymond Abraham

C

an the choice of fuel have an impact on vehicle performance? New engine

designs demand the use of fuels that give improved fuel economy and improved reliability so that there are no roadside break downs; the vehicle always starts; the engine runs smoothly irrespective of the weather; the fuel does not damage the engine; and the filter does not become blocked with sludge but delivers sufficient power so the vehicle can pull heavy loads with reasonable performance.

What should the vehicle owner look for in a fuel?

When buying fuel, owners of heavy-duty vehicles should look for: fuel economy, reliability, power, and compliance with emissions legislation. Owners of

today. Original equipment manufacturers (OEMs) especially are thus being forced to look at engine design as well as the performance of the fuel and lubricant in use, to identify ways to reduce the overall emissions of their vehicles and equipment, comply with regulations and avoid significant taxes in some cases.

Are we at that level in South Africa yet? Generally, the current fuels manufactured in South Africa are regulated to closely match the requirements of local car parks. Our diesel fuel for example, meets the SABS 342 specification, which is about three to five years behind European specifications.

Imported vehicle technologies and locally manufactured ones (typically for export) are increasingly being driven by

into 2020. In parallel, we should see an increase in alternative technologies such as first and second generation biofuels, gas engines and hybrid electric vehicles. Additionally, car manufacturers have developed several new technologies with different ways of reducing emissions, both in terms of better controlled combustion and sophisticated aftertreatment devices.

The oil industry in South Africa will need to invest about R3.7 billion) to develop “cleaner” conventional diesel and gasoline fuels that can help to reduce exhaust emissions. In this regard, South African fuel manufacturers will need to comply with the manufacture of 10 ppm sulphur diesel and petrol by 2017. Some of the latest vehicle emissions’ reduction systems can only work effectively with low or ultra-low sulphur fuels.

It is necessary to emphasise that the oil industry’s ability to provide clean fuels varies widely globally due to crude oil quality, refinery sophistication and necessary investment in new processes. Moreover, the level of vehicle technology in the market will determine whether benefits from improved fuel quality will be fully realised and, as customers are rarely prepared to pay more for cleaner fuels, government fiscal policies should be the driving force.

Fuel purchased from a reputable supplier will generally meet the national specification for diesel light-duty vehicles, on the other hand, should focus on performance, fuel economy, reliability and overall environmental acceptability. That being said, diesel represents a significant running cost for users. The environmental concerns and stringent carbon dioxide (CO2) emissions regulations are also placing tremendous pressure on fleet operators

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TWA | Oct/Nov 2012

European engine designs in a quest for improved fuel economy and reduced emissions.

Where is the current market focus? Reduced fuel consumption and controlling CO2 emissions are the main drivers for engine designers today and will remain the main focus well

Do you think operators and owners have been educated enough on the possible impact of choice of fuels? OEMs normally specify the type of fuel to be used in their engines, especially in modern vehicles with emission control devices and engine management systems, where misfueling can cause damage to these engines.

Fuel purchased from a reputable supplier will generally meet the national specification for diesel. Most of the problems encountered with contaminated fuel arise from poor handling at customers’ sites.

Water, for example, can easily find its way into diesel fuel and cannot be entirely eliminated.

Another problem encountered is the sediment. Sediment causes filters to block in the vehicle and sometimes in the distribution network. It can also cause corrosion and wear in the fuel injection system and in the engine itself.

A third source of diesel contamination is when microbes from the air enter the fuel during storage and handling. While these can survive in the fuel, they can only multiply if water is present.

The most common problem caused by microbes is blocked or partially blocked filters, which make engines, run at low power or even stall.

Once diesel fuel has been contaminated by microbes, it can only be made fit for purpose if it is treated with biocides. The fuel must then be separated from the water and dead microbes.

PARTS & MAINTENANCE • Tyres

GOODYEAR

First AA-grade tyre showcased According to Goodyear, the tyre is developed to meet the highest fuel efficiency and wet grip standards set out by the new European Union tyre labelling scheme.

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HE COMPANY ANNOUNCED that the AA-labelled truck tyre will be available on the market soon. A first concept of the tyre was displayed at the 2012 IAA Commercial Vehicle Show, which took place in Hanover, Germany any from 20 to 27 September, to illustrate te the progress on the AA tyre, which is currently undergoing further develelopment and testing to ensure it meets all the ambitious goalss set for it by the Goodyear engineering team.

The development of an AA tyre is a major jump in technology, delivering tyres that get an ‘A’ in both wet grip p and fuel efficiency as set out byy the European tyre label regulation, which will become compulsory as of 1 November. The European tyre label looks similar to existing energy efficiency labels (such as on household appliances), with A being the highest performing tyre in its category and G the least performing. The label will inform tyre buyers of three key tyre performance attributes: fuel efficiency, wet grip performance and exterior rolling noise.

The concept tyre uses proprietary technology developed

by Goodyear at its Innovations Centre in Luxembourg.

This includes the development of new compound technology, an improved tread structure and an adapted manufacturing technique. The concept tyre shown is in size 385/55R22.5.

Goodyear has decided not to unveil the actual tread design at this stage. Instead, the concept tyre shows a creative tread design highlighting the tyre’s label

performance by displaying two label abel icons: a fuel pump on one side and a cloud and rain icon on the other side, accompanied by two A-letters.

“We are proud to announce that Goodyear will soon laun launch its first AA truck tyre,” said Henkvan Tuy Tuyl, director Tyre Technology Commercial Ty Tyres Europe, Middle East & Africa. “The ne new tyre is a technological breakth through that will deliver improved llevels of wet grip performance and fuel efficiency to fleets. To give some concrete examples, the difference between a complete set of new A-graded and F-graded tyres could reduce a ttruck’s fuel consumption by up to 1 15%, which represent around €7 000 per year.

R Regarding wet grip, in tthe case of full braking, the difference between A-graded and F-graded tyres could be up to 30% shorter braking distance. This means for a typical truck driving at 80 km/h up to 25 m shorter braking distance.”

A-grade tyres are not new to Goodyear.

The Goodyear LHT II trailer tyre boasts a European Union label A-class in fuel efficiency in two sizes, and has been on the market since 2010. Currently, around 50% of current Goodyear truck tyres score a C/C or better, which is impressive proof of the superb performance characteristics of Goodyear premium products. The Association of the German Rubber Industry describes tyres with C/C and higher as very good and tyres with A/C to A/A and C/A to A/A as extraordinary tyres of very high quality.

The concept tyre uses proprietary technology developed

by Goodyear

TWA | Oct/Nov 2012

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COMPANY PROFILE • Imperial Logistics

NEW BUSINESS MODEL OPTIMISES EFFICIENCY

Boosting competitiveness Improved tools to plan more optimally, manage costs, measure efficiencies and track benefits are just some of the rewards being reaped by Woolworths since transforming its supply chain, with assistance from Imperial Logistics group companies Volition Consulting Services and Imperial Logistics Refrigerated Services.

The challenge demands sophisticated planning

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HIS TRANSFORMATION process began when Woolworths identified a need to vertically integrate its supply chain beyond the traditional operations of warehousing and distribution, in order to achieve improved

service levels, competitive advantage and supply chain sustainability, explains Dean Tebbutt, managing director at Volition Consulting Services. As a starting point, Woolworths, with assistance from Volition and Imperial Logistics Refrigerated Services,

quantified the current logistics costs being paid by suppliers.

The result of the modelling culminated in a business case for Woolworths to optimise distribution by offering transport services to its suppliers. Current logistics assets would need to be sweated considerably if the proposed business model was to become viable, says Tebbutt.

Sophisticated planning, visibility and reporting tools would also be called for, in order to ensure the solution would not only be costeffective, but would also achieve strategic growth objectives. Tebbutt elaborates on the hurdles that needed to be overcome: “The service offered allows for improved reliability and sustainability of transportation. There was scope to improve inbound/outbound integration while the current planning of transport required sophistication to support the strategy. It was also necessary to achieve improved visibility of the operations and implement the reporting capabilities required to manage the process,” he adds.

A case for integrating distribution The project team’s next step was to model tactical scenarios to find ways to achieve the necessary efficiencies. The most promising scenario identified involved integrating distribution across business units, as well as across inbound and outbound distribution.

“Woolworths had been offering transportation services to their suppliers for some time, but on a smaller scale,” he notes. The strategy also included improving tactical and operational planning and execution management.

“It was agreed that a Logistics Integration Centre (LIC) was the way forward, and should

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COMPANY PROFILE • Imperial Logistics

and sustainability be established to house the required planning and reporting capabilities, to support performance improvement and to provide granular visibility of operations. This Logistics Integration Centre would therefore become a key enabler for Woolworths to offer a competitive service to suppliers.”

The project team started by developing a data repository and dashboard reports (on a proof of concept basis at first) to leverage existing IT systems and report on operational performance. “The dashboard reports provide a single-version of the truth and can be accessed remotely by stakeholders within Woolworths as well as their transport service providers,” Tebbutt explains.

“They provide key insights into transport efficiency, service levels and costs, and allow users to compare performance year-on-year, year to date and month-on-month. The end result is well supported measurement of operations and a tool that allows ad-hoc analysis to support decision making.” He adds that this capability has been instrumental in driving many continuous improvement initiatives.

Operational efficiency improved Through the reporting capabilities of the Logistics Integration Centre, it was shown that the operational efficiency of transport has improved year-on-year. Tebbutt elaborates: “Woolworths has achieved improved internal operational efficiency, despite increased volumes and distances travelled.”

He notes that Woolworths’ ability to plan across the supply chain has improved, along with its sustainability and competitiveness. A further benefit is improved insights into logistics operations, he adds.

“A key learning is that ownership within the business is critical for successful, sustainable transformation,” Tebbutt stresses. “The business must subscribe to the longer term journey and must clearly understand the importance of each step in achieving strategic objectives.”

Leading supply chain innovation and excellence He says that this specific journey demonstrates Woolworths’ commitment to

remaining at the leading edge of supply chain innovation and excellence, in partnership with key service providers such as Imperial Logistics. “This mutual commitment is reflected in the recent extension of our contract, whereby Imperial Logistics Refrigerated Services remains the preferred logistics partner to Woolworths.”

Improvement initiatives are continuing within Woolworths. “Most notably, Imperial Logistics Refrigerated Services, Volition and Woolworths continue to engage to offer Woolworths’ suppliers competitively priced and value-added transport services that would not have been possible without the collaboration of all parties. The way forward includes the optimisation of the planning office, equipment centre optimisation, master data improvement and green supply chain initiatives. All parties remain engaged on initiatives to support broader supply chain improvement,” Tebbutt concludes.

Volition Consulting Services is a leading independent supply chain consulting firm in SA. It specialises in implementing sustainable and proven change, assisting leading companies to achieve supply chain integration, technology enablement and continuous management improvement.

The service offered allows for improved reliability and sustainability of transportation

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27

REGIONAL CORRIDOR FOCUS

THE WALVIS BAY CORRIDOR

Investigating the Brazilian The Walvis Bay Corridor Group recently announced its successful participation in the Intermodal South America Transport and Logistics Fair in Brazil in an effort to promote the use of the Walvis Bay harbour as an alternate choice to South African ports, ďŹ nds Yanna Erasmus.

Erasmus

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HIS IS THE SECOND visit the corridor group has made to Brazil; in January it opened an office in that country to enhance trade. The Brazilian economy is growing and is now ranked sixth in the world. The market for imports to Africa includes perishables such as chicken and meat, coffee, sugar, fruit juice, equipment and furniture, among others. The bulk of these products are currently destined for Angola, Botswana, Zambia, Zimbabwe and the Democratic Republic of the Congo (DRC).

The distinct advantage of the Walvis Port is the corridors that are a network of routes linking the port with the Trans-Kalahari, Trans-Caprivi (Walvis Bay-NdolaLubumbashi) and Trans-Cunene corridors. Regional support to ensure harmonisation of standards allowing for the smooth flow of trade between borders, has been ensured with the establishment of regional committees and partnerships with regional bodies, under which the Trans-Kalahari Corridor Management Secretariat is made up of government and private sector representatives from Namibia, Botswana and South Africa.

The Trans-Caprivi Corridor Cluster and the Walvis Bay-Ndola-Lubumbashi Corridor Management Committee, which is a partnership between the DRC, Namibia and Zambia, were also established to address problems that could impede the smooth movement of goods across the borders along the Walvis Bay-Ndola-Lubumbashi Corridor.

The deep-sea port at Walvis Bay allows for direct access to principal shipping routes, offering shippers a time saving of up to five days between the SADC region, Europe and the Americas. Fast, efficient and safe road and rail transport along all three corridors further reduces transport costs and makes the regional economy more

REGIONAL CORRIDOR FOCUS

connection attractive to global players, as envisaged under the New Partnership for Africa’s Development (NEPAD) initiatives.

The group reports that the infrastructure that particularly supports the Trans-Kalahari and Trans-Caprivi corridors has been developed steadily. It has the most efficient intermodal blueprint for the region, incorporating the ports, airways, tarred roads and rail networks, and automated border-post customs procedures.

An alternative gateway?

According to the group, with South Africa’s entry into the BRICS economic block, Namibia can serve as an alternative gateway for Gauteng due to the shorter trade route that it offers to importers and exporters between Southern Africa and Brazil.

But the port is not only strategically situated for imports from South America. During November last year, Nampak imported 600 t of paper reel from Sweden. The shipment was destined for Lusaka and was urgent as stocks had been depleted. A total of 14 days was shaved from its supply chain. It was a significant milestone for the group since it demonstrated efficiency and smooth operations due to the high level of cooperation between the relevant parties.

Currently, around 2 500 t are imported monthly to Zambia with Botswana taking some 2 000 t. The Zambian, DRC and Zimbabwean markets have experienced stronger growth compared to other sub-Saharan African countries. There has been an increase in demand for chemicals for the mining industries as well as a marked increase in the importation of fish. Zambian copper exports, on the other hand, have also grown and while it is destined for the Far East, Walvis Bay is being used because of the efficiency, low pilferage levels, and cost efficiency. Botswana also signed a cooperation framework agreement with Brazil in 2010 to strengthen economic, industrial, scientific and technological development in the SADC region. Botswana, Zambia and Zimbabwe are also in the process of completing dry ports at the Walvis Bay harbour.

The link with Brazil will certainly have an economic advantage not only to the region but also the companies operating within it. The group says that an increase in “volume growth in corridor traffic along the Walvis Bay corridors using the Port of Walvis Bay is one of the economic benefits foreseen that will contribute to the overall Gross Domestic Product of Namibia within the transport sector”. Additional benefits include a shorter transit time of goods between South America and Southern Africa via Walvis Bay and this will mean more income for the transport stakeholders and various service providers along the Walvis Bay Corridors. This route will also serve as an alternative to other routes such as Durban and other seaport along the East Coast of Southern Africa. The two biggest trading partners of Brazil are South

Africa and Angola, therefore Namibia finds itself in an ideal situation to serve both markets as well as the rest of the region.

Namibian service providers in agreement

The advantage of the Walvis Port is the corridors that are a network of routes linking the port with the Trans-Kalahari, Trans-Caprivi (Walvis BayNdola-Lubumbashi), and Trans-Cunene corridors

Logistics and supply chain service providers operating in Namibia agree. Nolito Marques, the public relations and marketing manager of Manica Namibia, says that because time is critical, the Walvis Bay port is preferred from Europe and South America. The volumes however, are not where they should be but are slowly increasing.

Etosha Transport’s Francois Bekker says the same. “In our line, which is transport, we have seen a bit of a boom. Freight is definitely increasing, but this is not only from Brazil, it is also from Europe.”

Other members of the Walvis Bay Port Users Association agree. Ockert Botha from Keuhne and Nagel states that the major transit routes are to the landlocked countries of the region. Fruit juice and chicken are preferred products. The chicken coming from Brazil is relatively inexpensive compared to South African and Namibian chicken for example, and while Namibia has protection for local industry with a 40% levy on imported chicken, South Africa has no limits to the tonnage coming into the country. Exports are also going to Angola and other countries in the region.

According to Florian Mittscher, the MD of CMACGM, a major container shipping group, he is positive about the developments at the Walvis Bay harbour and is content with the marketing done by the group. However, he adds that while this link will eventually increase trade and volumes, there is currently not sufficient traffic. Still he remains positive that this will indeed happen. In Tsumeb in northern Namibia, Logistix International is well placed for the Trans-Caprivi Corridor route and Kallie Grunschloss confirms that there is a lot of transport to countries like Zambia, Zimbabwe and the DRC. Currently, he transports furniture, meat and fruit juice into those countries.

The port is free of congestion, has competitive turnaround times and is complemented by first-class infrastructure and equipment, ensuring safe and reliable cargo handling with zero pilferage, allowing for faster processing at customs. This is complemented by its positioning.

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INDUSTRY INSIGHT

AFRICAN LOGISTICS & SUPPLY CHAINS

A unique opportunity According to analysis by Deloitte, Africa’s growth is primarily driven by the consumption of goods and services, which is contrary to perceptions it is growing on the back of mining and commodities. Chantelle Mattheus speaks to Deloitte’s Dr Jacqueline Chimhanzi and Genevieve de Carcenac on the unique opportunities that African markets hold for logistics and supply chain management.

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MERGING MARKETS differ from developed markets in two key ways: from a national culture perspective and an institutional environment perspective. Emerging markets are becoming the drivers of global economic growth. Africa is estimated to have the highest growth rate outside of Asia, with subSaharan Africa expected to grow at 5.1% over 2012 and 5.6% over 2013 in real gross domestic product terms, explains De Carcenac.

A recent report by Deloitte Consulting confirms this, with “African expansion identified as a key opportunity in terms of increasing South African companies’ existing foothold in other African countries through either growing trade, business, range or product development in the area”.

“From a supply chain point of view, goods and services need to get from their points of origin to where they are required, regardless of whether they are sourced locally or imported. Therefore supply chain plays a key role in enabling Africa’s growth,” says De Carcenac.

Challenging environment

“Good supply chain skills in South Africa are in high demand.” Genevieve de Carcenac, Deloitte consultant – Strategy and Innovation

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This does not mean that the logistics environment is without its own set of challenges in the African context.

Among these are

people, process and technological challenges, according to De Carcenac.

Process challenges include limited procurement negotiating power in the global supplier field, the coordination of complex global distribution networks across multiple regions and modes, a lack of upstream information necessary to perform adequate planning and forecasting, and ineffective processes to assess and quantify the magnitude of various risk types.

“Technology challenges relate to the use of multiple data systems per company, poor data quality and the limited ability to consolidate data, and a lack of effective analytical tools to support the modelling and evaluation of supply risk,” states De Carcenac.

Skills are always a challenge. “Good supply chain skills in South Africa are in high demand. There currently seems to be a strengthened focus on upskilling and training employees to become more scientific in the way they do their jobs.

This is particularly required due to the increasing complexity and dynamism of the global market,” she says, adding that supply chain market volatility increases the need to manage supply risk. “It is important for supply chain practitioners to understand their roles and the impact those roles have on managing increasing supply market risk.”

Further ‘people challenges’ include high turnover rates, a limited supply of skilled labour and service providers, and the logistics around attracting personnel to remote locations – which applies specifically to the mining supply chain logistics environment, in which De Carcenac specialises.

“Given the supply risk inherent to the mining industry, it is important to understand factors specific to the African continent, such as diverse national cultures and institutional environments, which make Africa different and need to be taken cognisance of when developing and executing supply chain strategies,” states De Carcenac.

She adds that operating in more developed markets requires less of a relationship with institutional structures as there are more formal rules in place and fewer informal constraints. “Institutional environments in developing economies, like African economies, are therefore sometimes affected by a lack of economic and political stability, and market-based management skills, which affect transaction costs, capital flows and competition regulation.”

INDUSTRY INSIGHT

Regional Integration

Seeking success

According to Chimhanzi, a key determinant in sustaining Africa’s growth or ‘rising’ is regional integration, which in her view is not happening fast enough and is undermining Africa’s continued competitiveness. “The African market remains highly fragmented,” she says.

Similarly, the infrastructure systems currently in place are primarily a reflection of the continent’s colonial past, facilitating the export of raw materials off the continent more than binding the territories together economically or socially.

Chimhanzi points to a 2012 World Bank report that states that African countries are losing out on billions of dollars’ worth of potential trade every year because of high trade barriers between themselves and their immediate neighbours. “It is easier for Africa to trade with the rest of the world than with itself,” she articulates.

Challenges relating specifically to trade across borders – both in the public and private sectors – are in turn associated with greater risk, be it real or perceived. The challenges referred to include, according to Deloitte: • Delays at customs in moving goods across border within and between regions. “These delays are a tremendous cost to importers and exporters, and they increase the transaction costs of trading among African countries.”

• The high volume of paperwork to be processed.

• The high cost of clearing goods at borders.

• Cumbersome visa requirements.

Understanding that emerging markets differ radically from developed countries in terms of national culture and institutional environments, and acknowledging that cultural and institutional nuances impact the global organisation’s reputation and success is important in ensuring success in the supply chain environment, according to De Carcenac.

In addition, so is understanding the context in which operations exist.

“Realise that macroeconomic forces drive the country and region, analyse the impact that each of these forces has on supply risk. Understanding Dr Jacqueline Chimhanzi, Deloitte how cost, quality, lead times and serLead: African Desk vice delivery are affected is critical,” she says.

A keener understanding of the maturity of the business unit and the understanding that a mature business unit’s strategy might not be immediately applicable at a less mature business, as well as understanding how the business unit’s strategy and purpose align to the overall company strategy and purpose are also key tools in ensuring success.

“Finally, understand the link between business unit maturity and operating context in order to focus on the key business drivers that will allow the supply chain function to optimally support the business unit in aligning with company strategy,” she explains.

Supply and demand Supply chain management is further complicated by uncertainty. “Uncertainty refers to any deviation from the unachievable ideal of completely deterministic knowledge of the relevant system. A key reason for this is the disparity between actual demand and available goods or services.

Demand uncertainty has the greatest negative impact on cost and customer satisfaction for the supply chain and increases supply risk,” explains De Carcenac.

She adds that having a “global mindset” entails having an awareness of cultural and market diversity and being able to leverage synergies across those differences.

Gearing for growth Understanding the value chain is critical for any organisation, wherever it is based; however, an understanding of context and organisational maturity is also paramount.

“Business organisations and the industries in which they operate are embedded in a broader demographic, global, political, environmental and ethical context,” explains De Carcenac, adding that business organisations are not all equally mature, which means they do not all apply best practice principles in equal measures of success.

“Understanding how mature organisations are and how the environments in which they operate influence operations is crucial in order to determine appropriate supply chain methodologies for individual operations,” says De Carcenac.

“The African market remains highly fragmented.”

Trade of tomorrow According to Chimhanzi, the primary catalyst necessary though is regional integration. If the three African trade zones – the SADC, COMESA and EAC – are fully integrated, it will go a long way towards reducing the challenges and risk of doing business across borders on the continent, allowing the relevant role players the space to capitalise on the opportunity that exists in the growing African middle classes’ growing demand for goods.

However, this would entail, among other initiatives, no restrictions on the movement of goods, persons and services, as well as simplified border procedures and the removal of a range of non-tariff barriers to trade, such as the restrictive rules of origin. In addition, this ideal would necessitate harmonised and well-coordinated trade instruments and nomenclature so that country trade laws speak to each other.

Infrastructure development therefore becomes a key starting point, according to Chimhanzi and the team at Deloitte.

“Also, based on our experience as Deloitte, it is our considered view that a relatively quick win in the process towards integration in customs modernisation is to create a onestop customs system e-border to allow for the ease of tax clearance, goods declaration and immigration processes,” concludes Chimhanzi.

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SUPPLY CHAIN LOGISTICS • Roads

AFRICAN LOGISTICS & SUPPLY CHAINS

Road chaos to come?

With a dearth of new freeway projects planned and Gauteng roads again reaching their design capacity, the current and future transport context was under discussion at the recent Transport Forum, finds Chantelle Mattheus.

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RANSPORT INFRASTRUCTURE investments, which ensure improved transport systems, result not only in direct user benefits, such as reduced travel time and lower vehicle operating costs, but also in lower logistics costs and the costs of doing business for logistics and transport operators. This is according to Prof Jackie Walters, head of the University of Johannesburg’s Department of Transport and Supply Chain Management, at the opening of the recent Johannesburg Transport Forum. The forum was held on 4 October 2012 under the title ‘Transport Infrastructure: then and now’.

The increases in efficiency would result in time and cost savings for operators, as well as gains in access and the reliability of transport systems, which in turn allow for improved productivity and distribution. “Wider access results in new business opportunities and increased competition, which in turn results in increased profitability.

“Improved transport infrastructure therefore Nazir Alli, CEO, SANRAL impacts on private capital

“What is the investment we need to make and how do we make the budget we have stretch to meet these requirements?”

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and labour productivity and therefore overall economic growth,” said Walters.

No new road projects on the cards According to Sanral CEO, Nazir Alli, the questions should be: ‘How do we realise the vision or value?’ and ‘What is the investment we need to make and how do we make the budget we have stretch to meet these requirements?’

The latest road network upgrades, which were started in 2008, have either reached completion or are almost at completion stage, with no new upgrades, projects or freeways planned currently, due in part to an issue of funding that relates back to the tolling, which at the time of the forum was still under discussion despite the courts having pronounced on the issue in government’s favour.

Alli stated that this was particularly worrying considering that infrastructure projects, especially roads projects, had a long gestation period as they had to, by necessity, take into account environmental issues, as well as public input.

“Funding is key and we need to ask ourselves how we can continue subsidising public transport and road infrastructure,” he said, adding that 603 000 km of road was funded from the fiscus and further fiscal investment would then necessitate choosing between funding new projects in public transport and/or new roads projects. Despite projects such as the Gauteng Freeway Improvement Project (GFIP)

SUPPLY CHAIN LOGISTICS • Roads

having created numerous jobs and the transfer of skills, as well as enabling the implementation of new innovations, there was currently not enough money in the budget to build new freeways, with a continued investment in maintenance being necessitated with that which was available.

“It is important to look at the long-term effects and have a broader view or perspective of where we are going,” concluded Alli.

Impact on freight logistics The investment to date and resulting improvement in traffic flows has been great news for transport, logistics and supply chain service providers, as less traffic congestion clearly benefits operations due to reduced unproductive time spent between loading and off-loading points, according to Imperial Logistics chief integration officer, Cobus Rossouw.

“More importantly, less congestion improves the predictability of transport and distribution activities. The better we can predict how long a route will take, the better we can plan for multiple sequential activities and thus increase the workload on vehicles to reduce cost,” said Rossouw.

According to him, when roads are congested, freight operators have to assume the worst to mitigate potential customer service failures and that means planning for the maximum possible wasted time. Although trucks are often to blame for this, the reality according to Rossouw is that less than 10% of urban traffic is for freight movement.

Trucks are increasingly the victims of road congestion with spiralling logistics costs of distributing consumer goods in urban areas, asserted Rossouw.

“All things considered, we are likely heading for the same chaos we experienced before the GFIP investment.

This may sound pessimistic and even alarmist, but the simple realities of economic growth and insufficient further investment predict the laws of traffic congestion,” said Rossouw, adding that one solution to the problem was to implement the much contested and highly debated tolling – but effectively.

“I am in no position to argue whether the e-tolling as proposed is the most effective toll collection system or that the proposed toll charge was correctly calculated, that is for the experts to review. It seems a real pity that the toll income needs to be used to fund law enforcement and that the user cost of administering the toll is escalated by inadequate licensing system integration.

“I do, however, believe that tolling needs to be used to collect money from the users of the road for the maintenance and upgrading of the road. More importantly, I believe that effective and intelligent tolling can shape driver behaviour, and benefit logistics and supply chain management immensely,” explained Rossouw.

Rossouw concluded that if a shift towards efficient public transport and/or higher-density private passenger transport can be achieved, congestion can be avoided and the

life of the Gauteng freeway system extended. “If not, more than 90% of freeway usage in Gauteng will be by passenger vehicles that use the national infrastructure investment without paying, only to win a few minutes of convenience Imperial Logistics chief integration officer, while they hamper Cobus Rossouw. the economy.”

“Trucks are increasingly the victims of road congestion with spiralling logistics costs of distributing consumer goods in urban areas”

DEFECTIVE ROAD MANAGEMENT OBSTRUCTS MANUEL’S ACCELERATION PLANS

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he South African Road Federation says that unless government pays urgent attention to structural defects in the management of South Africa’s total road network, Trevor Manuel’s National Development Plan for accelerated change and development will be crippled from the outset.

The South African Road Federation (SARF) operations director, Basil Jonsson, says the country’s road sector is being hampered by inappropriate road management structures, as well as a serious road engineering skills shortage.

“These constraints are closely interlinked and have been highlighted in the Department of Transport’s document, Road Infrastructure Strategic Framework for South Africa.”

“There are two crucial factors that need to be considered in this regard. First, after education, a good road network is generally regarded as the most significant catalyst for economic growth and social development in any country. Second, when viewed as capital assets, roads represent a huge investment that requires sound and effective management. South Africa’s network has an asset value in the order of R1 trillion and road authorities, such as Sanral, manage assets larger than many companies listed in Fortune Global 500.

“Unfortunately, there is abundant evidence that shows that apart from some notable exceptions, such as Sanral and some provincial and metropolitan road authorities, the majority of the road authorities are not implementing their road programmes effectively.

A lack of funds is only part of the problem. SARF believes that the deplorable, not to mention hazardous, state of the provincial road network could have easily been avoided if the funds allocated to them had been properly deployed,” Jonsson says.

SARF identifies some of the constraints in the road sector as follows: • a serious lack of experience and professional expertise in road engineering • interference and micromanagement by politicians • poor and inappropriate institutional arrangements • a lack of leadership and the consequent indecisiveness and inability to effectively implement roads programmes • a lack of good governance and unfortunately, in some instances, corruption.

“If the government is to deliver on the commendable aims of Manuel’s National Development Plan, these constraints need to be seriously addressed. Wisdom, a blend of knowledge and experience, is of paramount importance in the management of South Africa’s total road network. This wisdom is available within the country’s professional engineering bodies. Government and road authorities need only tap into it,” concludes Jonsson.

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SUPPLY CHAIN LOGISTICS • Air

Africa’s aviation potential The IATA has called on industry and government in central West Africa to work together to make aviation an even more integral part of African economic development and integration.

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AFETY, REGIONAL cooperation and global standards for infrastructure funding were highlighted as key issues that must be addressed.

“African aviation supports 6.7 million high-quality jobs and business activities totalling some US$67.8 billion (R586.1 billion). Aviation could play an even bigger role in facilitating Africa’s growth and development. To achieve this, however, we need a team effort of government and industry focused on improving safety, adopting a coordinated policy approach and implementing global standards,” said Tony Tyler, International Air Transport Association (IATA) director general and CEO, during his keynote address at the opening of IATA’s Aviation Days in Dakar, Senegal.

Aviation as an economic driver Tyler called for a coordinated regional approach to aviation. “Africa faces many common challenges. In addition to safety, these include IATA’s latest quarterly Cargo Market Analysis for the air cargo market. inadequate infrastructure, ‘brain Key factors for Africa: Growth in emerging markets continues to significantly outpace drain’ and skills Western economies, with robust expansion anticipated throughbuilding, finding out sub-Saharan Africa, Latin America, the Middle East and North Africa. sources for capiAir freight routes linking Africa with the Middle East are among tal, fleet modernithe fastest growing this year, recording the following year-on-year growth over the first half of 2012: sation, building • 0.4% January competitiveness • 17.9% February and much more.”

• 12% March • 16.8% April An example of • 2.8% May regional cooper• 10.2% June In contrast, air freight volumes between Africa and Europe proation is the multivided the following year-on-year returns: state Agency for • -4.8% January • -4.3% February Aerial Navigation • 1.9% March Safety in Africa • 2% April and Madagascar • -0.7% May • 2.7% June (ASECNA), which Data collected through IATA’s Cargo Accounts Settlement System, provides air naviwhich is the industry mechanism for settling and reconciling airlines and freight forwarders accounts, indicated the following: gation services • Africa’s outbound air cargo revenues (i.e. exports from Africa) across a vast totalled US$45.8 million in the first quarter of 2012.

• Africa’s inbound air cargo revenues (i.e. imports to Africa) section of the totalled US$333.7 million in the first quarter of 2012.

African continent.

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“We look forward to working with the agency to continually improve service levels and cost-efficiency,” said Tyler.

However, he noted that for many African governments, aviation is not a top priority. “Eliminating poverty, improving health, raising living standards, and generating jobs rank much higher. My message is not to shift priorities, but to ask governments to see aviation as an economic driver and develop policies to support that important role.”

Appropriately funded infrastructure One impediment to aviation’s ability to serve as an economic catalyst in central West Africa is the proliferation of fees and taxes to support infrastructure development. “Infrastructure is critical to aviation. And it must be paid for. But there are established principles for such funding developed through the International Civil Aviation Organisation. These include transparency, consultation with users and cost-relatedness.

To ensure that the benefits accrue to those that have paid, pre-financing is not allowed unless specific safeguards for users are met. Unfortunately, these basic principles are not being followed in the case of infrastructure development fees in Africa. This can only have an adverse effect on the growth of aviation. And if aviation is taxed too highly, its ability to be an economic catalyst is compromised,” mentioned Tyler.

Tyler noted that the Airport Development Fee in Senegal now stands at US$68 per person – the highest in Africa.

Benin, Cameroon, the DRC, Gambia, Guinea-Bissau, Mali, Niger, Sierra Leone and Togo have development charges ranging from US$9 to over US$50 per passenger. “The example of Senegal is an immediate opportunity to work together, make improvements and help states in this region develop a clearer understanding that aviation is not a cash cow to be milked. Public policies should be designed to take advantage of aviation’s unique ability to catalyse economic growth.”

Commitment to Africa Tyler noted that the 2013 IATA AGM and World Air Transport Summit will be held in Cape Town. “Africa has the greatest potential of any continent for aviation to contribute even more to its development. Supported by adequate infrastructure, the proper cost structure, and operating within a policy framework that values its contribution, aviation could play a much larger role in the African economy as a whole.

“Aviation connectivity is about people doing business, products moving to markets and new opportunities being discovered. With a few kilometres of runway, even the most remote location can be connected to the global village. This has a huge and positive impact on development. And that is the best reason for governments across Africa to care about aviation and work together to ensure its safe, efficient and sustainable progress.”

SUPPLY CHAIN LOGISTICS • Sea

AFRICAN LOGISTICS & SUPPLY CHAINS

Ports must become shipping logistics hubs ”A focus on operational efficiency, as well as continued investment in infrastructure is essential in ensuring the continued competitiveness of local ports,“ Nico Walters

T

HE GLOBAL CHALLENGES currently impacting ports as trade growth continues include the growth in the number and sizes of ports, as well as the increasing diversity in trade routes and global supply chains. This is compounded by a consolidation among carriers and physical growth in the average ship sizes, said Walters at the recent Transport Forum held at the University of Johannesburg.

Ahead of demand “We have no choice but to become infrastructure providers through the creation of appropriate port infrastructure capacity, which must work and be provided ahead of demand,” said Walters. The investment needs to be based on market demand, i.e. volume patterns and customer requirements, and take into account reduced vessel time in port, cater for increasing vessel sizes through the supply of deeper ports and berths, as well as transhipments.

According to Walters, port planning and maintenance are therefore vital, with the National Ports Authority having to align infrastructure investments, both current and upcoming, with port development framework plans. Infrastructure maintenance ensures long-term efficient and optimised utilisation of assets; however, oversight and monitoring of the maintenance, both planned and executed, is critical.

“The continued growth in volumes requires port investment in expansion of facilities.” Nico Walters, GM – Strategy, Transnet National Ports Authority

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TWA | Oct/Nov 2012

Logistics hubs “Ports must become shipping and logistics hubs,” said Walters, adding that this would be achieved through improving overall port efficiency and focusing on

Port

Expansion opportunity identified

Ngqura

• Liquid bulk terminal • Manganese terminal • General cargo terminal • Transhipment growth

Saldanha

• Liquid petroleum gas terminal • Oil and gas supply base • Rig repairs

Durban

• Passenger terminal

l o g i s t i c s / i n t e r• Passenger terminal modal networks.

Cape Town • Liquid bulk terminal Efficiency targets therefore have to be set, not only to improve terminal productivity, but also to ensure improvement in the ship turnaround time, all of which needs to be continually monitored by the relevant role players.

Additionally, with 75% of trade moves by sea, maritime connectivity was therefore dominated by competitive intermodal transport networks where keeping transport costs down is key. “We therefore need to facilitate logistics integration through ICT, through the integration of information systems via port community systems,” stated Walters.

Expansion planned According to Walters, the continued growth in volumes requires port investment in expansion of facilities, rather than replacement. “In our forecast, there are no areas where we are not seeing significant growth and, therefore, we are subscribing to an aggressive growth strategy,” he said, adding that Transnet National Ports Authority (TNPA) would be investing R46.9 billion over the next seven years, with R2.4 billion invested in expansion projects in 2012 and this investment expected to double in 2013.

New terminals In closing, Walters noted: “As a leading port authority in Africa, TNPA believes that infrastructure investment is key to growth and as such the ports authority is embarking on an aggressive infrastructure investment programme. TNPA believes that the ports make significant contribution to its customers being globally competitive, and this must be maintained and expanded, and as such the ports will see a number of new terminals.”

SUPPLY CHAIN LOGISTICS

DIGICORE

Revenue growth for financial year globally to date. During the year, it restructured its global operations into three core-owned business units – South Africa, Europe and Australia – and three regional distributor units: Asia and the Middle East, Africa, and Latin America.

Operationally, the fleet business globally had a solid year, except for the UK, which underperformed. The UK business has been stabilised and turned the corner by year end, under new leadership.

Strong growth was experienced in the mining and resource customer base with a solid pipeline of business for the new year. The fleet product and solution offering was further extended with the launching of CtrackFleetConnect, a mobile asset management solution. In Europe, Germany has seen good growth from a low base. Ctrack ANZ (Australia and New Zealand) outperformed budget and is well positioned in partnership with major telecommunication groups to grow its fleet business and launch the insurance solution during the coming year.

DigiCore Holdings Limited, the JSE listed telematics technology group, has grown its revenue by 19% to R844 million for the financial year.

T New CEO, Barney Esterhuyzen

HE FINANCIAL YEAR 2012 saw a substantial structural overhaul of the group for purposes of driving its future growth strategies under the leadership of the new CEO, Barney Esterhuyzen.

The top management team has virtually completely been restructured, a re-engineered product range was launched, and stock and debtors policies considerably tightened, which impacted the bottom line.

A once off charge of R36 million against stock and debtors was a major contributor in reducing the profit after tax from R54 million (2011) to R30 million (2012). Notably, an unrealised profit of R44 million related to the listing of 30% held by Trakker Pakistan Limited was not brought to account.

The group, under the Ctrack brand, is represented in 56 countries with approximately 650 000 systems sold

IMPERIAL LOGISTICS

Moving into pharmaceutical supply chain Imperial Logistics has announced its acquisition of the pharmaceutical and consumer healthcare supply chain services.

T Cobus Rossouw, chief integration officer of Imperial Logistics

38

HE BUSINESSES to be acquired include RTT Medical, RTT Trans Africa, RTT Consumer Health and RTT Essentials, as well as 100% of Fuel Africa Logistics, RTT Kenya and RTT Ghana.

RTT Health Sciences is one of Africa’s leading pharmaceutical and healthcare supply chain service providers, specialising in multichannel solutions for delivering essential medicines and consumer health products in South Africa, and to Namibia, Botswana, Mozambique, Zimbabwe, Zambia, Kenya, Tanzania, Malawi, Uganda, Ethiopia, Rwanda, Ghana, Ivory Coast and Nigeria.

Cobus Rossouw, chief integration officer of Imperial Logistics says: “The acquisition complements our business

TWA | Oct/Nov 2012

in that RTT Health Sciences provides logistics, supply chain and distribution solutions to the pharmaceutical and fastmoving consumer health industries. It offers exceptional growth prospects as it strengthens our current exposure to high growth African economies and provides the Imperial Group with exposure to a strongly growing pharmaceutical and healthcare industry.”

RTT Health Sciences has a quality customer base with a robust new business pipeline. Through the acquisition, Imperial Logistics has also secured a specialist management team which strengthens and complements the group’s existing skills set in the logistics industry. Rossouw adds: “We look forward to extending this expertise to new clients in new industries and unlocking the competitive advantages inherent in their supply chains.”

The acquisition, which will be funded from existing funding resources, is subject to South Africa’s Competition Commission and South African Reserve Bank approval, which has to be achieved by 20 January 2013.

SUPPLY CHAIN LOGISTICS

TRANSPORTING VALUABLE CARGO

More stringent measures needed The recent loss of two highly sensitive television sets on their way to the IFA consumer electronics fair in Berlin has highlighted the need for companies to ensure they have stringent measures in place to protect valuable goods or documents.

A

CCORDING TO THE MD of DHL Express sub-Saharan Africa, Charles Brewer, there has been a noticeable rise in criminal activity and syndicates looking to target vulnerable companies transporting sensitive goods, including in South Africa.

He says that companies often underestimate the negative implications of valuable documents or packages getting damaged or going missing. “Not only is the sender’s business reputation impacted negatively, which could result in a potential loss of business, the situation could be further exacerbated by negative publicity around the incident. If the goods are of a sensitive nature, there is a further risk of fraud or industrial espionage, as well as the significant and unnecessary cost to replace the goods.”

Brewer explains that two of the most common mistakes that companies, or individuals for that matter, make when transporting valuable goods is to choose the lowest cost operator to move goods, or not ensuring that the materials have sufficient packaging.

“Lower costs may mean that the company receives lower quality of processes followed when transporting goods, which could lead to an increased risk of damage or theft.

In terms of packaging, insufficient packaging means that the materials aren’t protected, increasing the risk of damage – valuable goods need to be well packaged to ensure that they arrive as intended.”

He states that companies should ensure that the carrier they make use of has certain key measures in place to

guarantee the goods arrive safely. These include: • security experts responsible for ensuring that its network is well protected (i.e. standard processes, building designs, security features and policies adhered to) • tracking of every parcel along the transportation chain, using checkpoints to provide visibility of progress through its network. This should also include the tracking of transportation vehicles • certification of its facilities by TAPA (Transported Asset Protection Association) • screening of all new employees to ensure they have a clean track record • CCTV cameras in facilities to monitor processes • security checks at the entrances to locations to ensure packages only taken out by authorised persons • recorded signature and printed name of recipient on handover of package to recipient • quality control centres to monitor sensitive shipments real time and highlight any potential risk of delays of these shipments in the transportation chain.

“Before shipping sensitive or valuable goods, both businesses and consumers need to seriously consider the implications that a package or document not reaching its destination can have on both the sender and the receiver,” conCharles Brewer, MD, DHL cludes Brewer.

Express sub-Saharan Africa

“Insufficient packaging means that the materials aren’t protected, increasing the risk of damage.”

TWA | Oct/Nov 2012

39

SUPPLY CHAIN LOGISTICS

SOUTH AFRICA’S TRANSPORT INDUSTRY

Changes and challenges The consequences of the increasing number of underwriters in the commercial vehicle sector have some calling for higher barriers of entry. By Chris Barry

T

HE COMMERCIAL VEHICLE sector has seen some drastic changes in the last decade with the number of underwriters operating in this space growing from nine to an estimated 26. Consequently, the market has had some interesting reactions and the following piece outlines some of the challenges and changes Heavy Commercial Vehicle Underwriting Managers (HCV), a specialist truck insurance underwriter, and its competitors are facing.

Firstly, First we are seeing the inevitable and unsustainable ‘short ‘short-term cash flow’ underwriting that appears to be a calcu calculated strategy to gain short-term market share by premium discounting.

Secondly, Se commercial vehicle insurance is seen to be Sou South Africa’s second ‘gold rush’ and premium volumes tha that clearly appear to be too good to resist have resulted in a rush of new insurance providers.

The long-term effects of these market changes will become evident at some point. Some insurers may have to subsidise poor commercial vehicle underwriting from, for example, commercial and industrial accounts.

Others may resort to more frequent repudiations of claims.

Larger organisations may write off their commercial vehicle books as ‘loss leaders’.

The real heroes in South African transport are those companies that consistently apply best practices

Chris Barry, MD, Heavy Commercial Vehicle Underwriting Managers

Unfortunately, this scenario tarnishes the reputation of underwriters who continue to make it their business mission to excel at industry best practices.

To date, there have been some casualties among underwriters, but as long as the behaviour continues, it is unlikely that we will see a real alignment and correction of premium rates to normality for some time.

Add to this is our government’s “denial” of the unbelievable contribution the road transport network makes to the functioning and economy of South Africa. The argument that continues to suggest that our rail network complements road is just not realistic.

Also, too often operators guilty of gross criminal negligence can often escape with impunity, as was the case with the Knysna bus accident last year.

The real heroes in South African transport are those companies that consistently apply best practices – that have consciences and continue to strive to be exemplary South African citizens in every sense of the word. There are some, corporate and others, but unfortunately they are increasingly in the minority.

The challenge continues to get the authorities to level the playing fields for the good guys. The best operators should be rewarded and complimented for their efforts, and the bad guys need to have barriers preventing entry into this important industry.

The landscape of this sector has and will continue to change radically in the next couple of years, and I hope all the players are up for the challenges.

Index to advertisers African Ports Evolution Forum 2012 37

Engen

7

Caltex Delo Commercial Truck

Grinrod Imperial Logistics

Digicore Emirates Sky Cargo

40

TWA | Oct/Nov 2012

11 OBC 35

MAN Trucks

Mercedes-Benz

IFC

23

Scania

14

38

UD Trucks

IBC

Volkswagen Commercial Vehicle

19

OFC

MSS UD NGQ 37

The right gear at the right time, every time ESCOT V AMT Product shown in photograph is for illustration purposes only, and is subject to stock availability.

Professional, Passionate, Dependable Fifty years in South Africa

24 Hour Roadside Assist 0800 008 800 www.udtrucks.co.za

多VKJDWH FR ]DB&7

Ctrack Long Haul offers a wealth of tools including amongst others: applications like Ctrack Mobi, Online and MaXx for real-time visibility of vehicles; Route Monitoring, Navigation and Area Management features for enhanced driver and vehicle safety; Fuel Consumption Monitoring and CO2 Reporting for better operational control as well as Driver I.D. and Speed and RPM Monitoring to assist with driver behaviour management. In summary, one complete solution that keeps your long haul operations always visible and as productive as possible.

012 450 2222 t sales@ctrack.co.za t www.ctrack.com

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