The Transporter Issue 22 Volume 4

ISSUE 022

OCTOBER-DECEMBER 2013

A PUBLICATION OF THE KENYA TRANSPORTERS ASSOCIATION LIMITED

Kenya’s

Road Safety

RELOADED Speeding, overloading and dangerous driving among key causes of road accidents Driving schools across the country will be vetted to weed out fake trainers All drivers and motor cycle operators to be retrained using modern technology Matatu Welfare Association welcomes move and asks the government to register enough agents countrywide to distribute new GPRS speed governors

The Transporter

Profile

The secret behind Rongai Transport’s success pg. 20

ISSUE 22 VOL. 4

ISSUE 22 VOL. 4

The Transporter

Content

R COVE STORY

Transporter

The

ISSUE 022

Oct - Dec 2013

IN THIS ISSUE KTA News

4

REGIONAL

Kenya’s Road Safety

20

RELOADED TRADE

Failed South Sudan coup slows down trade in Juba

6

Government mulls establishment of logistics, transport board

6

Cargo crisis at port of Mombasa

6

Repairs on Narok-Mai Mahiu road begin

6

East African Community states sign monetary union protocol

8

Rwanda launches sms facility to enhance efficiency

8

RAILWAY

40 TMEA grants private sector

Sh45 MILLION

34

12 14

PIRACY

LAUNCHED

Attacks drop but region still a high risk

16

ROAD SAFETY

ON THE WAY

32

INTEGRATION

Questions raised over

SINGLE CUSTOMS

TERRITORY

New traffic rules

24

Updates

26

HEALTH AND SAFETY Lessons from Japan

33

TECHNOLOGY Uganda upgrades cargo clearance system

34

INFRASTRUCTURE Rwanda joins war against overloading

36

FINANCE Uganda cracks whip on tax cheats

37

REGULATION

44 now a must for freighters

EACFFPC

The Transporter

In Bits Single Window System now live

Rest Stations

28

10

FREIGHT

Financial facility to reduce costs

INFRASTRUCTURE

46 38

Kenyatta breaks ground for Standard Gauge Railway

The secret behind Rongai Transport’s

SUCCESS

New laws reduce insurance claim payment time

38

Know the law

38

TRADE AU adopts global accounting standards

45

REGULARS Truck World

52

Truck & Trailer

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Transporter

The

From the CEO’s Desk

A publication of the Kenya Transporters Association Limited

BOARD OF DIRECTORS

Paul Maiyo Kiprop Bundotich Hassan Bayusuf Gulam Yusuf Iqbal A. Bayusuf Salad Awale Imran Pasta Zahir Kara Shakil Khan ACTING CEO

Willington Kiverenge LAYOUT, DESIGN & EDITORIAL CONSULTANTS

Efman Communications info@efmancommunications.com

All inquiries: Tel: +254 41 231 19 58 Fax: +254 41 231 20 15 Mobile: +254 786 366 538, 734 619 494

+254 715 679 263 Email: thetransporter@kta.co.ke The Transporter is published quaterly by the Kenya Transporters Association Limited (KTA Ltd).

The views expressed are those of the authors and do not represent the official view of the Kenya Transporters Association Limited (KTA Ltd). Neither KTA Ltd nor Efman Communications, or any other person acting on their behalf, may be held responsible for the use to which information contained in this publication may be put, or any errors, which, despite careful preparation and checking, may appear.

Individual advertisers are solely responsible for the content of advertising material which they submit to us, including ensuring that it complies with relevant legislation. We accept no responsibility for the content of advertising material, including, without limitation, any error, omission or inaccuracy therein.

ISSUE 22 VOL. 4

A

s we welcome the New Year 2014, let’s take stock of important sector achievements that happened during 2013, a year that was quite eventful for the transport sector. Overall, businesses did not fair well in the face of a slowed and weaker global economic growth especially in the Eurozone - a key trading partner for Kenya. The uncertainties in the electoral and budgeting periods also saw reduced cargo volumes coupled with increasing operational costs which lead to transport companies to either reduce operations or close shop altogether.

Towards mid-year, the government took bold steps aimed at trade facilitation. President Uhuru Kenyatta directed that all operations at the port be streamlined and that agencies operating at the port have a central command - under the leadership of KPA, among a raft of other measures meant to improve efficiency at the port and smooth movement of trucks along the Northern Corridor.

Additionally, new vehicle load control regulations were gazetted in line with the East African Community Vehicle Load Control Act, 2013. These measures have improved efficiency at the port and reduced transit time to the key border points to between 3-4 days.

This implies that truckers have been able to make more roundtrips - a welcome reprieve.

Despite these efforts, operational costs – fuel, electricity, spare parts and taxes – have remained high while transport rates have declined, further diminishing profits. If the transport sector hopes to survive, the government and other stakeholders should look into ways of reducing the high costs.

Last year, the National Transport and Safety Authority which has been tasked with ensuring safe, reliable and efficient road transport services became operational.

The NTSA is steadily progressing towards rationalising driver training.

To this end, KTA’s East Africa Heavy Commercial Driver Development Institute is strategically positioned to spearhead this drive with a partnership deal between KTA and NTSA in the offing.

I also wish to appreciate the efforts of all Northern Corridor operators and port stakeholders for their efforts in enhancing efficiency, and hope that this spirit will be maintained in the coming year.

I wish to take this opportunity to express our sincere condolences to the family of the late H.E. Nelson Mandela and people of the Republic of South Africa. As the world mourns the passing on of this global icon, it’s only befitting that we emulate his qualities of seeking for a more inclusive and just society.

In conclusion, I extend my unreserved gratitude to the Board of Directors and all members of KTA for their continued support to the Association and in particular, the Secretariat. Going forward, I urge that we consolidate efforts in harnessing our common interests and building on our gains as we strive for a more perfect Association.

I wish you all a happy and prosperous New Year.

Thank you.

Willington Kiverenge Acting CEO - KTA The Transporter

The Transporter

ISSUE 22 VOL. 4

Updates KTA BRIEFS

Members’ Meeting

Mr Ibrahim Pasta of Roadtainers Transport Company addresses Kenya Transporters Association members during a past meeting at the Royal Castle hotel. In early January, KTA members formed a taskforce committee to look into issues regarding implementation of the Electronic Cargo Tracking System (ECTS) rule introduced by the Kenya Revenue Authority.

Kenya Transporters Association Limited @KTALtd1 COVER

PHOTO

Traffic lights on a city street.

HAVE YOUR SAY

If you have any comments about The Transporter Magazine, then please send them to: thetransporter@kta.co.ke or The Transporter Magazine, Sea View Plaza, Mama Ngina Drive. P.O Box 88502-80100 Mombasa.

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ISSUE 22 VOL. 4

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Catch up with what’s been happening within the transport and logistics industry around the Eastern Africa region Your favourite and authoritative magazine The Trans¬porter has over the past three years maintained its presence as the only industry publication. Listen to what Mr Bernard Osero, Kenya Ports Authority corporate affairs manager had to say: I acknowledge receipt of The Transporter magazine in which KPA had advertised. I must honestly say that the printing quality is world class, the stories are professionally written and the general design and layout reader friendly. Without bias, KPA advert came out distinctly clear. Thanks for a good job.

We would like to thank our readers and advertisers for your support and wish you a Happy and Prosperous New Year…

ON THE DRIVING SEAT: Safe Way Right Way CEO, Mr. Joseph Adewa going through a driving test on the simulator.

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ISSUE 22 VOL. 4

KTA News NTSA visits KTA’s Driver Training Institute

KTA to Launch an Information e-Portal

T

he Kenya Transporters Association (KTA) with support of Trademark East Africa (TMEA), has developed an e-portal system for collection and dissemination of information on policies, regulations and procedures for trade, with main focus on road transport.

KTA e-portal will provide an online system for accessing and sharing of relevant documents and crucial information in the heavy commercial transport sub-sector.

The main focus is to improve professionalism in the transport sector, ease access to information for transporters - hence improving the performance in the northern corridor. The portal will also act as single window for accessing relevant documents and information from other relevant bodies in the sector by providing direct access to the respective sites.

In October last year, KTA organized a workshop to sensitize members on the yet to be launched portal and joins a league of organizations which have adopted service delivery through online platforms.

The workshop offered members an opportunity to interrogate the contents of the e-Portal and make recommendations on possible areas of improvement. Addressing participants at the workshop, KTA Chairman Mr. Paul Maiyo observed that the dynamism of the transport industry meant that only those companies that adopt and employ best global practices would survive.

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“We now have well informed clients and in order to keep them, transporters will have to adopt effective and efficient service delivery,” he said, noting that ICT has become an effective tool in customer service. The e-portal puts KTA on a strong pedestal to enhance member services - a key pillar of the Association’s strategic plan.

“We are enhancing service delivery by digitizing trade documents and processes and making them accessible to our members at the click of a button.

This is an additional component besides the website and we expect that going forward our members will start to reap the benefits,” said Mr. Willington Kiverenge, the Association’s acting Chief Executive Officer.

The e-Portal has been designed to ensure that transporters and other industry stakeholders easily access documents required to register and operate as a transporter, procedures for application and rules and regulations governing transport in Kenya.

The portal also establishes among others; an online application and approval for KTA Membership, online membership renewal an online interactive forum for members. The portal will facilitate dissemination of transport related information and offer an integration platform with GPS tracking. The Secretariat also used the occassion of the workshop to sensitize members on the new VAT Act.

The National Transport and Safety Authority (NTSA) has said it will be mandatory for commercial and public service vehicle drivers to have a medical test before they acquire driving licenses.

NTSA Chairman Mr Lee Kinyanjui said driving schools in the country have not been enforcing medical tests for drivers, adding that this has allowed drunkards and people who are on drugs on our roads thereby increasing the risk of accidents.

“We have agreed on having medical tests for truck, commercial and PSV drivers. It will be mandatory for them to have this test so that we have sober motorists on our roads,” he said.

The new smart driving license that is in the offing will be able to indicate the number of accidents a driver has been involved in, which he said would make it easier to withdraw licenses of rouge drivers.

He spoke when he and his board of directors paid a courtesy call at the KTA’s East Africa Driver Development Institute where they were taken through a tour of the facility and simulator training. The NTSA is keen to use the institute to carry out driver re-certification scheduled to be rolled out this year. Mr Kinyanjui commended KTA for the foresight and contribution to road safety.

He said that the authority has come up with measures that will review road safety policies and drivers with old licenses will have to take fresh tests before their licenses are renewed, a process they will have to undergo every three years.

Mr Kinyanjui said driving schools will also be regulated since they were on the increase and there was need to ensure that the curriculum taught was up-todate, adding that it was important to incorporate road safety in schools.

“We are reviewing regulations regarding how we license our driving schools since currently they are too.

While the instructors are doing a good job, there is need for regulation so that we also ensure that what they teach reflect the conditions on Kenyan roads and more importantly how to respond to emergencies,” Mr Kinyanjui said.

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The Transporter

ISSUE 22 VOL. 4

Regional Government mulls establishment of logistics, transport board

Failed South Sudan coup slows down trade in Juba The attempted coup in South Sudan has burst the bubble that has been Juba as an investment frontier.

Kenyan businesses in Juba are battered following the clashes that erupted early this week.

The chaos are expected to slow down the traffic between Kenya and South Sudan, which will be costly to both businesses as well as the South Sudanese market that might see a surge in prices of goods due to the breakdown in the supply chain.

“At the moment, we may not be able to quantify the losses that transporters are likely to incur but it is going to be substantial. If there is no movement, the cargo, the crew and the trucks will all be in danger,” said Willington Kiverenge, acting chief executive officer Kenya Transport Association.

“If delivery is not on time, the owner of the cargo may suffer losses,” he added.

He said the delays and the longer turnaround times would also be more costly for transporters, noting that December is usually a busy month for transporters in the region, partly fuelled by high spending over the holidays as well as the start of the year as companies resume operations.

“The delays will affect the turnaround time, which could be quite costly given that we are almost at the peak season,” said Mr Kiverenge.

Trade between the two countries has grown steadily in the recent year and currently the volume of Kenyan exports to South Sudan stood at Sh24.6 billion last year, according to the Export Promotion Council.

Several other Kenyan firms including KCB and Equity Bank have big operations in South Sudan, which could be affected by the violence there.

CARGO CRISIS AT THE PORT OF MOMBASA A cargo crisis is building up in Mombasa, East Africa’s most strategic port, following the crisis in South Sudan. Importers are counting the cost after the conflict in Africa’s youngest country saw their goods and the trucks hired to transport them marooned at the port. www.standardmedia.co.ke

The Tanzanian government intends to establish a National Logistics and Transport Board to oversee and regulate professional standards for transporters.

This follows increased road accidents and inefficient contribution of the sector to the country’s economy, the Minister for Transport, Dr Harrison Mwakyembe, told a press conference in Dar es Salaam recently.

He was briefing the press shortly after he received an honorary International Ambassador Award of Chartered Institute of Logistics and Transport (CILT) International.

He said Tanzania’s transport and logistics sector is currently dominated by unprofessional personnel.

This contributes to major organisational challenges, he explained, asserting: “We intend to make changes to this sector.

The government is working on this important matter and the results will be made public in due course.

“I totally agree with the principle stated by Newton (the Secretary General of CILT International) that professionalism breeds efficiency and effectiveness in any field, be it engineering, law, medicine and any other field. Without professionalism any good results would just be coincidental.”

Dr Mwakyembe said there is need for transport and logistics education institutions in the country to produce more experts in the sector.

He said soon there will be no room for a person to manage transport and logistics issues without the institution’s approval. www.ippmedia.com

Repairs on Narok-Mai Mahiu road begin The Ministry of Transport and Infrastructure will repair damaged sections of the Mai Mahiu-Narok road. Heavy rains have washed away parts of the busy road leading to damages worth millions of shillings.

During a tour to inspect the road, Transport PS John Mosonik said all the road will be repaired. Mosonik, who was accompanied by senior government officers, expressed concern over the extent of the damage.

“Majority of the sections have been destroyed by heavy rains which have been pounding parts of the country for the last two weeks,” he said. Mosonik assured motorists

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Source: www.the-star.co.ke

using the road that it is safe. He said the repairs will be completed by early next year.

Mosonik called on drivers to be cautious while using the road especially during the festive season. “We have seen an increase in the number of accidents on this road,” he said. Rift Valley traffic boss Mary Omari said a speed gun has been re-introduced on the road.

She said the speed gun will speeding, which is the leading cause of accidents. “We have reintroduced the speed gun on this road and we are warning speeding drivers that their days are numbered,” Omari said.

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The Transporter

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ISSUE 22 VOL. 4

Regional

East African Community states sign

MONETARY UNION PROTOCOL

T

he five East African Community states in November last year signed the East African Community Monetary Union Protocol, starting on a journey that will eventually see them operate a single currency, transforming them into a strong single market.

Under the Protocol, whose signing ends nearly four years of haggling, Tanzania, Rwanda, Uganda, Burundi and Kenya will harmonise their economic and monetary policies for longterm growth.

Among the key indicators that the member countries must harmonise are inflation rates, the tax to GDP ratio, debt to GDP ratio and fiscal deficits. In addition, the Protocol, to be rolled out over 10 years as the region undertakes the requisite institutional and economic reforms to support it, provides for the establishment of a regional central bank.

It is expected to progressively trim the monopoly of the national banking systems in charting monetary and fiscal policy, with most of the economic decisions currently being made at the national level

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by central banks being taken over by regional institutions.

Under Article 5 of the Protocol, member states will first have to fully implement the Customs Union and the Common Market Protocol before they can implement the Monetary Union.

They will also have to first harmonise and co-ordinate their fiscal, monetary and exchange policies, as well as phase out any outstanding central bank lending to their governments and public entities.

The member states must also first attain the set macroeconomic criteria and maintain them for at least three consecutive years before embarking on the monetary union. This entails: Capping core inflation at five per cent; fiscal deficits, excluding grants, of no more than six per cent of GDP and a minimum tax-to-GDP ratio of 25 per cent.

Once the prerequisites have been met, the member states must also meet the macroeconomic convergence criteria which involve maintaining a ceiling on headline inflation of eight per cent.

Rwanda launches SMS facility to enhance efficiency Traders will now find it easy to raise their concerns about barriers that affect crossborder trade and regional integration after the Ministry of East African Community Affairs launched an SMS mobile information sharing platform to facilitate the process.

According to the ministry, the facility will help stakeholders, especially the business community, in reporting all the challenges that affect cross-border trade, including delays, corruption, new taxes or police roadblocks, and then get feedback from government bodies concerned.

Theadore Murenzi, the chairman of the Rwanda Long Distance Truck Drivers Association, said this system will force border and customs officials to work hard, be accountable and responsible.

“The delays and other problems we have been experiencing at customs, including indifferent officials, will hopefully cease since we now have a platform where we can raise our views and concerns,” Murenzi said after the facility was launched by the EAC ministry permanent secretary, Innocent Safari, at Gatuna border late last year.

Fred Seka, the Clearing and Freight Forwarders boss, said elimination of trade barriers will enhance the country’s economic development.

He noted that the facility will ease the flow of right information between the business community and the authorities. “This will ultimately improve on the way we have been conducting business,” he said, adding: “We want to increase cross-border business by eliminating trade barriers which increase the cost of doing business. Therefore, engaging stakeholders through the SMS facility will make it possible.”

Amili Mugarura, the boss of HeHe Limited, the company that developed the system, said the reports would go directly to respective focal points and will be responded to in about five minutes. These include the EAC ministry, Rwanda Revenue Authority, Private Sector Federation, Rwanda National Police, immigration department, Ministry of trade and industry and Rwanda Bureau of Standards.

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The Transporter

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11

Railway Kenyatta breaks ground for STANDARD GAUGE RAILWAY IN FIGURES

60%

of cargo transport costs will be reduced once the railway is operational

4 hrs

T

he race for economic dominance within the East African Community appeared to be taking shape as Kenya launched the first major project under the Coalition of the Willing — the standard gauge railway — while Tanzania announced a new economic partnership with Burundi and the Democratic Republic of Congo anchored in joint infrastructure projects.

In Mombasa, President Uhuru Kenyatta launched the first phase of the construction of a nearly 500-kilometre standard gauge railway, the first in the region, signalling a departure from the slower and ageing of metre gauge railway.

The project is the first to be executed under the tripartite coalition bringing together Kenya, Uganda and Rwanda (which has since brought in South Sudan), in what has been widely interpreted by two other EAC partners Tanzania and Burundi as a snub.

Interestingly, the two, together with the DRC, chose to announce

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is the time it will take a passanger train to travel from Nairobi to Mombasa

their co-operation on the same day, in a move seen as a reaction to the snub by the CoW. As the two coalitions pull farther apart, a battle for economic pre-eminence in the region appears imminent.

Representatives of Tanzania, Burundi and DRC met in Bujumbura, Burundi and agreed to jointly develop road, rail, air and water transportation infrastructure. Competition between the two coalitions in the region could be a blessing in disguise — a trigger

for faster development of roads, railways, ports and other key projects needed to reduce the cost of doing business in the region and improve movement of goods and people.

When completed, the SGR is expected to lower transport costs in the region by more than 60 per cent.

“This dividend is the prize we seek for East Africa. This is the reason why we must view the substantial investment in the railway as a worthy investment to underpin the regional economic agenda. An economy only ever thrives on the foundation of proper infrastructure,” said President Kenyatta.

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in bits...

Mandatory driving re-testing good says Kamwaro

Alcoblow is back on Nairobi roads Alcoblow is back on the roads after the Ministry of Transport announced its reintroduction with immediate effect, starting in Nairobi, to curb rising road accidents.

Motorists are required to blow into the gadget to test whether they have consumed more than the requisite pints of alcohol.

Transport and Infrastructure Cabinet Secretary Michael Kamau said from now on, any motorist caught drunk while driving will attract a fine of Sh100,000, two years in jail or both.

Those found guilty, will also be arrested and prosecuted and their vehicles impounded and towed to the nearest police station and detained.

Port tractors banned from Mombasa roads The county government plans to ban terminal tractors from operating outside the Port of Mombasa. The terminal tractors, which ferry containers from the port to container freight stations, have been blamed for the rising road carnage and congestion in the town.

Regional traffic enforcement officer Martin Kariuki said the tractors are solely allowed to operate within the port to enhance efficiency but not outside the port. Kariuki said they are not allowed to operate on main highways as they do not meet the required safety standards.

Kariuki said the tractors have become a menace and must be regulated. The tractors are used to move 20 and 40 feet containers from the port to container stations in different parts of the town, especially the industrial Changamwe area where most CFSs are located.

Kariuki said the operators do not adhere to traffic regulation especially at night when they drive without reflectors, side mirrors and with worn out tires.

Transport and Safety Authority to vet all driving schools The National Transport and Safety Authority will vet all driving colleges between January and March. NTSA chairperson Lee Kinyanjui said many driving schools lack qualified personnel and vehicles.

Speaking in Mombasa recently, Kinyanjui said the driving schools will be categorised according to the training they offer.

NTSA said after the vetting, all the colleges will be licensed according to type of courses offered. Passengers Service Vehicles colleges will be different from commercial and heavy driving ones.

All colleges offering PSV courses will have a new standardised curriculum that will incorporate discipline and customer relations units. The two units will help ensure drivers are disciplined and qualified.

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Governors’ bid to control roads budget hits a snag Governors have suffered a major blow in their push to control the crucial Transport and Infrastructure docket after the Commission for Revenue Allocation (CRA) proposed that 78 per cent of the total budget for the ministry be retained at the national government. The governors have been pressing to have total control of the roads within their counties but the latest move by CRA to allocate the devolved units 22 per cent of the Transport and Infrastructure budget means the Government will continue to manage roads in the country.

Former Traffic and Licensing Board Chairman Hassan ole Kamwaro has supported the move to introduce mandatory driving re-testing for all drivers.

Kamwaro said many drivers have never attended any driving school but have driving licenses.

“About 85 percent of the accidents that occur are caused by human error and only competent drivers should be allowed in our roads,” Kamwaro said.

He said mandatory re-testing will eliminate drivers who got licenses illegaly. He said the reforms will rid the transport sector of rogue drivers.

Structures on road reserves face demolition The Ministry of Transport and Infrastructure has directed roads authorities to immediately issue notices to those encroaching on road reserves to remove all illegal structures.

Infrastructure Principal Secretary Engineer John Mosonik says those who fail or ignore to vacate will not be spared from demolition or face prosecution.

He said the ministry plans to ensure that all road reserve boundaries are clearly marked to deter future encroachment.

Some of the semi-permanent structures which are on the increase along the roads include shops, storage facilities, parking lots, car bazaars and car washes.

“These structures are hindering proper drainage of storm waters and therefore causing severe damage to roads,” the PS told journalists recently.

He lamented that the menace has not only made it hard to guarantee road maintenance but also undermined efforts to improve road safety especially for pedestrians.

“In upper Eastern, over 200 illegal billboards, farming activities and several temporary structures have been noted. Fifteen and 35 spots containing temporary illegal structures where encroachers are edging towards permanent construction have been noted in North Eastern and North Rift valley respectively,” Mosonik said.

Source: www.capitalfm.co.ke

Minister raises alarm over guard rail vandalism The Ministry of Transport and Infrastructure has raised alarm over the increase of road furniture vandalism especially metallic road signage and guardrails which it said are mostly sold to scrap metal dealers.

“This is depriving roads of critical warning signs and safety facilities and is significantly contributing to road accidents, besides the high cost of maintenance,” Infrastructure Principal Secretary Engineer John Mosonik complained.

He mentioned that the ministry is spending on average Sh1.2million per month for patrol and maintenance on Mombasa Road alone after all the guard rails separating carriageways between Miritini and Mazeras were vandalised.

Thika Superhighway, Kisumu Busia highway and the Meru Isiolo roads, he said, have not been spared from the menace.

Going forward, the ministry now plans to hasten the public private partnership to enhance not only maintenance but management and operations of toll stations.

“In the next one year, we are planning to start with Thika Superhighway and the Nairobi Southern by-pass. To address capacity constraints, the ministry is collaborating with institutions of high learning and other development partners to train more engineers.”

Source: www.capitalfm.co.ke The Transporter

The Transporter

ISSUE 22 VOL. 4

Freight

ACROSS THE BORDER: Trucks on transit line up at a border post. The electronic Single Window System is expected to reduce cargo dwell time for transit trade.

Single Window System now LIVE “At the border posts the system is expected to reduce cargo dwell time for both transit and intra-regional trade consignments to a maximum of one hour…”

Alex Kabuga, CEO-KenTrade

A

t the stroke of midnight, October 31 2013, Kenya joined global economies that have automated and integrated their clearance of air, land and sea cargo through a portal known as Kenya TradeNet. The Kenya National Electronic Single Window System now officially known as Kenya TradeNet was rolled out simultaneously with the National Gateway Payment System, also an integrated electronic platform for payments of permits and other related trade transactions by authorized economic operators.

Kenya’s Single Window System is being implemented by state agency, KenTrade with technical assistance from Crimson Logic of Singapore, one of the successful economies with experience on paperless trade.

KenTrade chief executive officer Alex Kabuga led the staff in cutting of the cake and toast for the historic moment. President Uhuru Kenyatta had issued the December 31 deadline for KenTrade to deliver on its core mandate.

The agency together with Joint Stakeholder’s Technical Team adopted a soft launch approach in the form of a phase roll out of various modules after the System Go–Live as opposed to the Big bang

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approach.

“This approach was necessitated by the cross-cutting nature and size of the system transactions and also borrowing from experiences in the implementation and roll out of Single Window Systems in other countries,” Mr Kabuga explained.

The launch of Kenya TradeNet is an important milestone as it marks the beginning of automation of cargo documentation processes by integrating systems of all key stakeholders involved in cargo clearance such as Kenya Revenue Authority and Kenya Ports Authority among others. In total, 24 government agencies will be brought on board.

The pilot stage will involve 10 out of 24 government agencies and 40 private sector companies involved in cargo clearance processes at the Port of Mombasa, JKIA and land border posts.

Kenya TradeNet will also integrate with the National Payments System (NPS) via a National Payment Gateway to ensure an end to end electronic solution in trade logistics.

This will enable exporters and importers to apply for import and export permits online and pay for the same electronically through the Payment Gateway. The System is a web based portal and is accessible

24/7 nation-wide to stakeholders in logistics industry players to facilitate the flow of goods in and out of the country.

Other modules to be implemented in Phase two will include integration with weighbridges and other government agencies.

The objective of the system, according to Mr Kabuga, is to reduce cargo dwell time at the port of Mombasa to a maximum three days and a maximum of one day at the Jomo Kenyatta International Airport over a period of two years when the system is fully operational.

“At the border posts the electronic Single Window System is expected to reduce cargo dwell time for both transit and intra-regional trade consignments to a maximum of one hour,” Mr Kabuga added.

Arising from a survey conducted recently, the savings to the economy would be between US$ 150m and US$ 250m per annum in the first three years of implementation and thereafter between US$ 300m to US$ 450m per year.

This will be achieved by implementing an electronic Single Window platform for submission, receipt and processing of trade related cargo clearance documentation. The electronic platform will be the sole entry point for lodgement of trade transaction documentation.

Since the documentation lodged will be electronic, this means that the shipper will lodge the documents only once. The single window platform will in turn electronically disseminate copies to the government regulatory agencies and other relevant stakeholders for processing and will be accessible nation-wide to facilitate flow of goods in and out of Kenya’s borders.

Trade procedures in Kenya have been blamed for raising the cost of doing business, an aspect which has led to a negative impact on the economy. It is estimated that logistic costs in the region constitute 42 percent of the total costs of production, one of the highest in the world.

In a report in 2011: Running on One Engine: Kenya’s uneven economic performance with a special focus on Mombasa port, the World Bank warned that cargo clearing procedures were open to corrupt activities, hindering smooth clearance of goods.

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ISSUE 22 VOL. 4

Piracy Attacks drop but region still a

HIGH RISK Although no comprehensive study has been carried out to assess the impact of armed guards aboard commercial ships, it is believed that their presence has significantly reduced the number of successful attacks.

T

he benefit of the successful repression of pirates off Somali coast is yet to trickle down to importers who are now incurring huge associate costs.

Ocean carriers are charging traders a Piracy Risk Surcharge (PRS) to cater for the extra cost of hiring private guards, a sector that maritime expert’s rate as the fastest growing in the industry.

The cost normally depends on the size of the consignment and destination. For instance, cargo from Mombasa to Durban can attract up to US$ 230 per 20ft container.

For cargo from Mombasa to New York, a piracy surcharge of up to US$ 125 is levied for a 20 ft container and US$ 250 for a 40ft container, according to information obtained from a ship agent.

“In addition to the above, I have also dealt with a shipping line that charges a fee of US$ 210 per 20 ft container and US$ 420 for a 40 ft container from NINGBO to Mombasa,” the source said.

The Kenya Ships Agents Association (KSAA) chief executive officer Juma Tellah confirmed that lines do not have any other way of recovering the extra costs incurred due to piracy except by levying a piracy surcharge. “This differs from ship to ship and can be dropped when the cost is not there,” he said.

The cost of armed guards has become the most pronounced increase in the cost of piracy and a permanent feature, according to Ocean Beyond Piracy, a project of One Earth Foundation, which

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carries annual assessments of global cost of Somali pirate attacks.

Shipping lines incurred costs of between US$1.15 and US$1.53 billion on armed guards in 2012 while in 2011 that figure was $530.6 million, OBP says in its 2012 report released recently.

Without a stable Somalia yet, Mr Tellah says, shipping lines still consider the region a high risk.

“Due to this, lines will continue to employ costly deterrent measures at a cost,” he said.

The concept of armed private guards aboard commercial ships was embraced a few years ago when the number of successful attacks reached worrying trends. Western countries flexed their maritime laws allowing commercial ships to hire private armed guards.

This move has opened a huge business opportunity for private guard companies in Europe that are supplying ships plying to East and West Africa with guards.

Although no study has been done to assess the impact of the armed guards aboard commercial ships, it is believed that their presence has significantly reduced the number of successful attacks.

Somalia and the Gulf of Aden have seen a dramatic decrease in piracy attacks, dropping from 237 in 2011 to 75 in 2012, with hijackings also reducing by half, falling from 28 in 2011 to 14 in 2012, according to the International Maritime Bureau (IBM).

The increase in the cost of armed guards, according to OBP, came as a result of an increased

proportion of ships employing armed guards as well as a revised estimate of the number of commercial transits through the high risk areas.

In 2011, it estimated that around 30 per cent of ships employed private armed security while in 2012 that percentage was revised upwards to 50. Statistics show that in 2011, approximately 99.5 per cent of the total cost of piracy was spent on the recurring costs of vessel protection.

Moreover, due to a higher number of expensive vessels transiting the Suez Canal in 2012, the costs associated with War Risk premiums rose slightly.

While 2011 was characterized by a sharp drop in Somalia-based piracy attacks and hijackings at mid-year, 2012 was marked by the continuation of consistent policies to successfully repress piracy at sea.

These policies include a largely stable naval presence, supported by the continuation of existing political mandates from the coalition forces. A more aggressive posture was adopted by the coalition navies, including the first strike on land.

In 2012, OBP estimates that US$31.75 million in ransoms were paid to Somali pirates, representing an 80.1 per cent decline in ransoms paid in 2011, when the industry forked out US$159.62 million.

The reduction in ransoms is due to the lower number of vessels captured and released in 2012, as well as a lower average ransom than the previous year.

Change of GUARD

The European Union will assume the chairmanship of the Contact Group on Piracy off the Coast of Somalia (CGPCS) for a year from the 1st of January 2014, it has been announced.

An EU statement announcing the development said the Contact Group will be chaired on behalf of the European bloc by Maciej Popowski, Deputy Secretary General of the European External Action Service (EEAS).

The chairmanship of the Contact Group is a joint endeavor of the EEAS and the European Commission and will continue the work carried out in 2013 under the chairmanship of the United States.

The Transporter

The Transporter

ISSUE 22 VOL. 4

Standards

A paper analytical device or PAD being used to detect counterfeit drugs. PHOTO: ZARA OSTERMAN/ SAINT MARY’S COLLEGE

Burundi steps up war AGAINST COUNTERFEITS

T

he Burundi Bureau of Standards (BBN) has acquired laboratory equipment intended to block entry of counterfeit goods which according to the private sector costs the country’s economy over US$1 million every year.

The admission of Burundi into the East African Community (EAC) has accentuated the need for its products to meet quality standards so as to be more competitive nationally, regionally and internationally.

“Export promotion and rationalization of imports require establishment of testing facilities, implementation of management systems for food safety according to

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international standards, supervision of enterprises and protection of consumers,” said Burundi Minister of Trade, Tourism, Post and Industry Victoire Ndikumana.

Speaking during the TradeMark East Africa’s official handover ceremony of the equipment, the minister stressed that the BBN objectives cannot be achieved without strengthening the monitoring and analysis infrastructure, the capacity of laboratories and analysts.

“All can only be possible with the combined efforts of the government and the development partners,” she added.

Mr Leonidas Runyutu, President of the Burundi Association of Industries said

All can only be possible with the combined efforts of the government and the development partners.

Victoire Ndikumana Burundi Minister of Trade, Tourism, Post and Industry

that the private sector loses at least US$ 1Million every year due to sub-standard products that invade the national market.

He made a call for special assistance to the BBN to enable it contribute to the wellbeing of consumers, protect investors and meet the East African Community (EAC) partner states’ expectations.

The equipment provided will allow the BBN chemical lab to reliably Contd. from Page 32

The Transporter

The Transporter

ISSUE 22 VOL. 4

Cover Story

Kenya’s Road Safety

RELOADED

The new speed governors are expected to utilize GPRS technology which will help in establishing the causes of accidents that happen in places where police do not immediately get access to…”

Lee Kinyanjui, chairman National Transport and Safety Authority

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The Transporter

T

he National Transport and Safety Authority (NTSA) is implementing comprehensive measures intended to tame rising number of fatal road accidents in the country that have reached unprecedented and worrying levels, killing over 3,000 people in the country last year alone.

The measures largely focus on eliminating human error, which the agency says is responsible for over 80 percent of accidents on Kenyan roads.

Created last year, the agency, in conjunction with other key stakeholders, has developed a curriculum that

The Transporter

will see all drivers and motor cycle operators go back to class for more lessons on safety. The retraining will utilize modern technology.

“The curriculum also incorporates training of motor bike riders. Despite the critical role they are now playing in the country’s transport sector, most of them lack basic road use skills,” Cosmas Ngeso, acting head of road safety department at NTSA told The Transporter in an interview in early January. “NTSA is emphasizing on use of simulators as a key component to be adopted by driving schools in the country.”

The agency says it will now vet all driving schools in the country starting this year to weed out fake trainers who are blamed for a significant share of accidents.

NTSA has also introduced retraining exercise for trainers and drivers, which is scheduled to begin in March this year and will start with heavy commercial vehicle drivers and public service

vehicles (PSVs), according to a recent statement by Lee Kinyanjui, NTSA chairman.

The regulations require driving schools to use a common, approved syllabus to ensure drivers are well trained and operate under the NTSA approved curriculum.

The institutions have in the past been accused of colluding with police department that run driving tests to give unqualified drivers a nod to obtain driving licenses.

“All the driving schools in the country must meet some minimum standards before being licensed to offer training,” Mr Ngeso added.

Formed through the National Transport and Safety Authority Act No. 33 of 2012, the agency brings under one roof the functions of Motor Vehicle Registration, Transport Licensing and Motor Vehicle Inspection, Road Safety, Driver Testing and to some extent Traffic Law enhancement.

The objective of forming the Authority was to harmonize ISSUE ISSUE22 22 VOL. VOL. 44

21

Cover Story operations of key road transport departments and help in effectively managing the road transport subsector and minimizing loss of lives through road accidents.

Besides claiming over 3,000 lives annually, road accidents leave 6,000 people maimed. East Africa alone looses an estimated five per cent of her GDP to road injuries and fatalities according to statistics, besides the obvious emotional trauma and financial strain on families.

In a press statement last year, Nduva Muli, the principal secretary department of transport identified a number of factors that contributed to road accidents, which the new agency is expected to address by converging all aspects of road transport operations and control.

Disregard of traffic laws, speeding, overloading and dangerous driving was cited as among key causes of road accidents. Other causes include compromise in enforcing traffic laws, corruption in issuance of fake documents and lack of adequate infrastructure for pedestrians and bicycle taxis, commonly referred to as boda bodas.

Apart from working with driving schools, NTSA, says Mr Ngeso, will partner with National Youth Service (NYS) and Kenya Transporters Association (KTA)

to roll out the overwhelming retraining of drivers.

KTA runs a state-of-the-art drivers’ training institute for its members – the first of its kind in East Africa – which will be used to train heavy commercial vehicle drivers in the country. The institute has been in operation for over one year now.

Addressing the media during a familiarization tour of the facility, Mr Kinyanjui, accompanied by other members of the Board: “I wish to commend KTA for this very noble initiative. I urge public service and commercial vehicle transporters to use this facility to train and re-train their drivers in order to ensure that their skills are at par with current demands.”

(Read related story on page 4).

The institute, aptly named the East Africa Heavy Commercial Vehicle Driver Development Institute, is a joint effort of KTA and East Africa Trade Hub (EATH), formerly known as USAIDCOMPETE. The Institute is designed to offer practical driving sessions using installed modern truck simulators considered to be the safer mode for training Heavy Commercial Vehicle drivers.

“We also educate drivers on critical aspects of road safety including vehicle maintenance, national and regional highway

Michael Kamau Transport Cabinet Secretary

Lee Kinyanjui Chairman, NTSA

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codes and psycho-social skills,” said KTA acting chief executive officer Willington Kiverenge.

To control over-speeding, another major cause of accidents, all Matatu and commercial vehicle owners will be required to fit them with new and modern speed governors, NTSA regulations say.

“Kenya Bureau of Standards (KEBS) has developed guidelines for new speed governors that will have capacity to trace the speed of a vehicle even after 14 days. The ones that were in place before were highly compromised,” Mr Ngeso explained.

According to a notice by NTSA, all vehicles will be issued with an interim inspection certificate based on the old speed governors until the end of February and a threemonth temporary TLB license.

Thereafter, they will be required to present the vehicles fitted with the new devices for inspection by the end of March at no extra fee.

“These speed governors will be using GPRS technology and it will help the authorities in establishing the causes of accidents that happen in places where police do not immediately get access to,” said Mr Kinyanjui.

The new governors will also have the capacity to record and track the speed and events as they unfold, crucial data which the Motor Vehicle Inspector will be able to retrieve. The current gadgets used

by PSVs are not tamper-proof and Matatu drivers, especially, have been accused of using concealed switches to deactivate them when there are no traffic officers in sight.

Welcoming the move, Matatu Welfare Association asked the government to register enough agents countrywide to distribute the gadgets faster to minimize delays. “We have more than 80,000 public service vehicles on the roads and we would like enough dealers to be registered to hasten the process,” said welfare chairman Dickson Mbugua while addressing the press recently.

In a drastic move that generated controversy last December The Transporter

Kenya Bureau of Standards (KEBS) has developed guidelines for new speed governors that will have capacity to trace the speed of a vehicle even after 14 days. following a spate of fatal accidents, Transport Cabinet Secretary Michael Kamau published traffic regulations banning night travel for PSVs. The new regulations also require operators of PSVs to have fleet management system to monitor the speed and location of the vehicles.

“The operators must subscribe to a data storage system, which is capable of storing data on vehicle speed, location and operation for a period of 30 days and when required by the authority, provide the data before expiry of the prescribed time,” reads part of the regulations.

The new rules also banned the vehicles from operating commercial cargo services and demanded that operators keep a passenger manifest.

“Ensure that except for courier services, the long distance PSV vehicle does not operate as a commercial cargo carrier and does not have a cargo carrier mounted on the top,” they read.

“Speeding is the major cause of accidents in our roads and we have to look for all possible ways of curbing this menace,” Mr Kamau said, noting that the government will not relent in its efforts to ensure road safety.

Mr Kinyanjui said the ban would remain in force, pointing out that the number of accidents has so far reduced since the regulation was enforced on December 24. The government has also reintroduced The Transporter

breathalysers, commonly known as Alcoblow to reduce the number of accidents caused through drunkdriving.

The World Bank and ICT Board are supporting the implementation of Transport Integrated Management System (TIMS) which brings together road transport data and enables proactive interaction between institutions responsible for registration and licensing, insurance, legal compliance and enforcement, road safety and crime control.

Integration of the various domains involved in road transport in the TIMS will enable access to comprehensive information about road transport entities, supporting transaction processing and decision making.

NTSA, according to Mr Ngeso, is consulting with other agencies to specially train a pool of police officers who will lead in the fight against corruption, another factor that contributes to compromise in enforcing traffic rules.

ISSUE 22 VOL. 4

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Road Safety NEW TRAFFIC RULES Here are the new Traffic Rules signed into law by the President.

NUMBER PLATES: When you sell your vehicle, you should surrender the number plates to the registrar of motor vehicles and when you fail to renew the insurance, remember to surrender the number plates to the registrar otherwise you risk being arrested and fined.

OVERLAPPING, OBSTRUCTION, DRIVING ON PAVEMENT OR THROUGH A PETROL STATION TO AVOID TRAFFIC: You risk a fine of Sh100, 000 - Sh300, 000 or One year in jail or BOTH.

ROAD BLOCKS are to be gazetted prior to being mounted by the police.

CARELESS DRIVING CAUSING DEATH: Life Imprisonment. This is being treated like murder.

DRIVING UNDER INFLUENCE OF ALCOHOL: A fine of Sh500, 000 or ten years in jail or both.

DRIVING LICENSES of speed limit violators shall be suspended for not less than 3 years if the person has exceeded speed limit by more than 10 kph and if offence is repeated 3 or more times.

PSV OPERATORS: Should adhere to the uniforms and badges rules.

MANDATORY EYE TEST every 3 years for licensed drivers. And if you fail the test then license is withdrawn.

MOTOR CYCLE OPERATORS: ONE PASSENGER only and the passenger and rider MUST be in reflective vests and helmets- otherwise you risk a fine of Sh10, 000 and in default 12 months imprisonment.

All LAW ENFORCEMENT OFFICERS (regular police and APs) are now effectively mandated to deal with traffic issues with the abolition of the Traffic Department under the Kenya Police Service Act.

OVER SPEEDING: When you over speed- You risk a fine of Sh10, 000 or 3 months imprisonment or both.

CARELESS DRIVING: Penalty of Sh500, 000 or 10 years imprisonment or both.

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ISSUE 22 VOL. 4

23

Road Safety Mobile app for safer roads

Kenyan application is giving road users the chance to take charge of their safety through their mobiles in an attempt to tackle the high number of fatalities on the country’s roads.

NduruApp, which runs on the Android platform, allows users to flag situations that could potentially lead to an accident, by reporting traffic offences anonymously. ‘Nduru’ means ‘scream’ in Swahili.

According to the World Health Organisation (WHO), more than 3,000 people die every year in Kenya as a result of a road traffic crash, with figures from the country’s Traffic Office putting the number of road accidents

between January and October 2013 at 5,046, resulting in 2,566 deaths.

Founder and lead developer Thomas Kioko said: “Kenya is among the many developing countries that have no comprehensive and sufficient in scope safety laws relating to key risk factors. The government has tried to enforce hefty fines to try and reduce road accidents but it hasn’t worked.”

He added that NduruApp creates a platform where motorists in public service vehicles are able to monitor how fast their vehicle is moving and receive speed alerts on their mobile phones.

“Motorists will receive alerts if the vehicle they are traveling in is over-speeding,” he said.

“The speed is locally stored in the mobile phone and the user can later send the data if they do not have an internet connection. The application provides a step-by-step first aid guide. This will help in administering first aid to the injured victims before the emergency services arrive.”

Kioko said NduruApp was using mobile platform to empower road users to air their views and concerns regarding road safety. www.humanipo.com

Tough new rules for PSVs

Night travel ban not the solution

Public Service Vehicle (PSV) operators are required to fit their vehicles with tamper proof speed governors by end of March this year.

The National Transport and Safety Authority has warned that it would not renew licences for PSV and commercial operators unless their vehicles are fitted with the new speed limit devices. The new devices are expected to deter drivers from modifying them as they keep a recording of a vehicle’s speed, ensuring that the operators are within the legally required speed limits. The Transport and Infrastructure Ministry has provided a list of approved speed governors.

Banning of Public Service Vehicles (PSVs) from operating at night was not a solution to the runaway road carnage, former Transport Licensing Board (TLB) chairman Hassan Kamwaro has said.

Kamwaro said that the ban would only slow down efforts to make Kenya a 24-hour economy, and called for alternative measures to curb road accidents.

“Though the ban is supposed to be a short-term measure, a long-term remedy needs to be sought. There is urgent need to re-introduce the stringent rules that were in place when the late John Michuki was the Transport minister,” said Kamwaro.

A

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PSV night travel ban here to stay: Kimaru

T

he government has maintained that the night travel ban for Public Service Vehicle (PSV) is permanent.

Traffic Commandant Samuel Kimaru has said that the consequences of flouting this requirement would get even more dire in days to come as bus companies operating without special licences for night travel would run the additional risk of getting their Transport Licencing Board (TLB) permits revoked.

“We cannot be singing the same song every day so unless you’re licenced to work at night you should be off the road by 6pm or we’ll make sure you you’re off the road after 6am as well because you clearly have no regard for traffic regulations,” he said.

Kimaru said the decision was reached after consultations with the National Transport and Safety Authority, which has been charged with issuing the licences.

The requirement that PSVs obtain special night travel licences came into force on December 24 on the back of Legal Notice 219 of December 16 of the National Transport and Safety Authority Act. According to the regulations under Legal Notice 219 of the National Transport and Safety Authority Act, every operator of a nighttime long distance passenger service, must first ensure they employ two drivers certified by the authority.

These drivers should also not be behind the wheel for more than eight hours and get at least eight hours off thereafter.

They are also expected to ensure that they and their passengers get a half-hour break after every three to four hours on the road.

The timing of the ban on night travel, except under special licence, has came under criticism from a section of the public and PSV operators who were keen to make the most of the holiday rush.

Transport Principal Secretary Nduva Muli however maintained that the ban could not have come at a better time, “there are more people travelling long distances over the holiday season and operators looking to make hay while the sun shines are focused more on making as many trips as possible than on safety.”

The Transporter

web: www.swrw.org

twitter: @SafeWayRightWay

s t a n d a r d

c h a r t e r

The World Health Organisation estimates that every year, road crashes claim 1.24 million lives and injure 50 million people worldwide. In Kenya we lose at least 3000 lives annually.

To address this, Africa Road Safety Corridor Initiative came to being as part of the UN Decade of Action for Road Safety. This led to the establishment in 2011 of an NGO known as Safe Way Right Way whose in promoting road safety on the Northern and Central corridors.

All our activities are aligned with the W.H.O’s Safe System Approach.

All Safe Way Right Way members are committed to self regulation, road safety community action and advocacy principles. us in achieving the noble goal of reducing road carnage. For more information or to become a member, call us on;

T: +254 20 222 1271 E: info@swrw.org

Members

Part of You from the Start

Celebrating Life

Supported By

Global Road Safety Facility

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ISSUE 22 VOL. 4

Profile

The Rongai Team: (From left to right) Ms. Lydia Jean-Louis, Mr. Kiragu Kimani, Mrs. Vanessa J. Evans and Mrs. Ritu Bahal (seated).

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The Transporter

The secret behind

Rongai Transport’s

SUCCESS

“Rongai empowers people through promoting leadership skills which has helped the Company to not only withstand hard times but also to be ready for expansion opportunities...’’ – Mrs. Vanessa Evans, Rongai Workshop and Transport CEO.

R

ONGAI is a trademark that has over the past 60 years straddled the Northern Corridor like the proverbial colossus. Looking at the trucks operating between Mombasa and Malaba, some of the oldest and most familiar are emblazoned with the Rongai symbol.

Rongai Workshop and Transport Limited is one of the longest established road transport businesses in Kenya. Founded by the late Gordon Eccles, a former British army officer in 1947 in Rongai, the business originally started as an agricultural workshop supplying and servicing machinery and building trailers for the rural farming community.

Ten years later, Mr Eccles diversified into transportation of milk and farm produce before he ventured into refurbishing Leyland vehicles for pulling semi-trailers to transport sisal from the Rift Valley and tea from western Kenya to Mombasa. He recruited drivers, mechanics and body builders to assist in running the business that today employs 252 people directly.

In 2005 Mr Eccles semi-retired at the age of 80 to keep an eye solely on his workshop and after his demise in 2010, one of his daughters – Mrs. Vanessa Evans – a Cambridge University graduate who had been working as Operations Director under the mentorship of her father for 25 years, took the reins of the family business.

The Transporter caught up with her in Mombasa recently where she gave an insight into the secret behind Rongai success. “The succession planning had started many years before my father’s death,” Mrs. Evans said, recalling how she saw her father build the business he had set up 13 years before she was born.

“He had always made clear the principles on which Rongai was to be run and everyone in the family and the Company were committed to them.

Beyond that, the second generation of family and our great management team were left to chart their own way forward.”

One of the questions

that pop up in people’s minds is how the company maintains some of the oldest trucks plying the Northern Corridor. What most people don’t know is that Rongai runs over 90 articulated vehicles, maintains all of them in-house and provides haulage services for containerized import and export cargo, locally manufactured goods and various commodities.

Many of the old refurbished Leyland’s (seen below) are still in service but are no longer the backbone of the fleet, and Rongai has also added more than 50 ERF and Beiben tractors units to its fleet running under their distinctive white and green livery colours.

Today, the Company moves more than 12,000 tonnes of cargo every month to many parts of Kenya.

DO YOU KNOW...

That Rongai Workshop and Transport company has a fleet of some of the oldest trucks plying the Northern Corridor? Some of the Leyland trucks the company operates, including some Beavers, date back to the early 1960’s.

The Transporter

ISSUE 22 VOL. 4

Profile FOUNDING FATHER: Rongai Worksop and Transport Company founder the late Gordon Eccles (inset). One of the company’s modern trucks (left).

One of the distinctive features of Rongai – whose headquarters are located in Rongai near Nakuru and owns a spacious depot in Mombasa – is that it has an in-house driver training school to ensure its trucks are driven carefully on Kenya’s often dangerous roads. Here, all drivers are inculcated with a discipline, the critical component for safety and security on the roads.

Both Rongai and Mombasa sites have in-house container yards with heavy lifting equipment, wellequipped workshops and parking for all their vehicles.

Gordon Eccles’ emphasis on best practice from top notch customer service, high quality truck maintenance, a culture of compliance and a firm “No bribery” policy to disciplined and well trained drivers and mechanics has provided a solid and enduring foundation on which the company rides today.

Rongai is still largely family owned and four family members remain actively involved in the business with Mrs. Gordon Eccles the largest single shareholder.

The company has for 66 years of operation succeeded in building a workforce of dedicated people with similar value systems, recognition of the value of hard work and little tolerance for laziness even from their own relatives who form part of their workforce.

Mrs. Evans adds that strong manpower and teamwork underline the firm’s success and long serving management

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staff and workers have provided strong back bone to the company whose development is funded by ploughing back profits, but when an expansion opportunity arises the firm applies for short term asset financing.

“My father was an honest man who was keen on business ethics and whose legacy has made the Company remain relevant in the market today. He paid particular attention to customer needs,’’ she says.

Today, Mrs. Evans is a successful business woman who has competed with and outshone many in her line of business, passionate about trucking and advocating the need for improving standards of safety and ethics in the industry. At 53, she now oversees the business that her late father built on a shoestring budget nearly seven decades ago.

For the last three years, Rongai was featured among the top 100 mid-sized companies in Kenya in a survey conducted by Nation Media Group’s Business Daily, a rating that gave the enterprise a new impetus and a stronger presence in the market.

“The accolade was humbling and timely. It enforced the credibility of Rongai and gave strong affirmation of the quality of services we offer,’’ says Mrs. Evans.

Finance and Marketing Director Mrs. Ritu Bahal adds that the company has won numerous other awards, including Best Commercial Vehicle Operator, Best Tax Payer Operator in the Rift Valley region, Comprehensive Workplace Health

Programmes and the Road Safety Awards.

Mrs. Evans however laments the fact that the transport industry is a vast unlevel playing field: “Kenya has adequate regulatory framework to control the industry with regard to axle weights and road safety, but there is arbitrary and ineffective enforcement of those rules and corruption is a major problem that risks stalling attempts to improve industry safety standards and protection of our road network.”

In dealing with business challenges, Mrs. Evans says: “I have learnt to empower people through offering leadership skills. That has really helped our company to not only withstand hard times in the market but to also get ready to take up opportunities for expansion.’’

She notes that a business can never stand still or become complacent since there is a risk of stagnating. Rongai critically monitors its efficiency levels, continually evaluates its options for development and keeps a focused eye on the transport market to identify new routes and cargo, she points out.

“With the renewed impetus for closer regional co-operation in East Africa, we are optimistic that Rongai will soon be looking beyond Kenya’s borders for further business.”

Going down memory lane along those seven odd decades, it is evident that the scope and size of Rongai’s business has much changed since Gordon Eccles’ days; but the basic business model has not. What is evident is that the Company is confident to continue expanding while retaining its longestablished focus of providing true value to its customers, workers and shareholders.

The Transporter

The Transporter

ISSUE 22 VOL. 4

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Burundi steps up war against COUNTERFEITS Contd. from Page 18

run at least 34 different quality control analyses on products such as flours, oils, beverages, fruits, vegetables or water. The range of analysis was chosen to meet the needs of business and overcome public health problems such as iodine deficiency.

The new equipment was acquired following a needs assessment by BBN and a feasibility analysis of the requests, and in accordance with the intervention procedures of BBN. It is anticipated that in the near future with the collaboration of the government of Burundi, BBN and development partners will effectively fulfill its mandate and provide confidence that imported products are good for consumption.

“We hope this will improve quality and reliability levels of locally manufactured goods, reduce incidents of substandard products in the local, regional and international market and deliver good analyses to support producers, importers and exporters,” Ms Ndikumana said.

Burundi has promulgated the law on the national system of standardization, metrology, quality assurance and testing to align to the conditions and requirements adopted in global economic groupings such as the World Trade Organization (WTO) and regional trade blocs – Common Market for Eastern and Southern Africa (COMESA) and EAC, the minister noted.

The Burundi Bureau Standards and Quality Control (BBN) was established in 1992 to promote quality standards, implement metrology, quality control, inspections of food and manufactured products as well as environmental protection.

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ISSUE 22 VOL. 4

REST STATIONS on the way The main functions of RSSs will include providing secure parking yards for transit vehicles, rest facilities, restaurants, information centres and outlets for amenities needed by truck crews and long distance passengers.

T

rade Mark East Africa (TMEA) is financing a study on the establishment of Roadside Stations (RSSs) aimed at creating secure and suitable facilities to allow long distance drivers to have breaks at appropriate intervals along the Northern Corridor. The study is being implemented by the Northern Corridor Transit and Transport Coordination Authority (NCTTCA).

The outcomes of the first interim report of the study were discussed and amended during a one day meeting of regional Stakeholders’ Forum recently at Southern Sun Mayfair Hotel in Nairobi, Kenya.

“The RSSs long term goals

will be enhanced connectivity, road safety and health along the Northern Corridor using the RSSs as a launch pad,” said Mr Donat Bagula, Executive Secretary of the NCTTCA. “Other benefits include better wellness centres for health, fostering security as well as promotion of alternative income generation activities for communities along the Northern Corridor and enhanced environmental protection,” he added.

Mr Isaac Kamau, acting Director General of the Kenya National Transport and Safety Authority, on behalf of the Principal Secretary for Ministry of Transport and Infrastructure reminded the Northern Corridor member The Transporter

states that they had a responsibility to expand their economy and reduce poverty in their respective countries by improving not only their Transport systems’ infrastructure but also the quality of service.

“No doubt that by allowing long distance drivers to have breaks at appropriate intervals and at suitable and secure facilities, a network of well designed RSSs will eliminate driver fatigue and improve security and health for crews, long distance passengers and cargo,” said Mr Kamau.

In Kenya alone about 3,000 lives are lost every year. The study on establishment of RSSs is reinforcing other initiatives being undertaken by the Kenyan government and other development partners to enhance road safety.

The main objective of the study is to identify and appraise interventions that will facilitate investment in the The Transporter

construction of roadside stations along the Northern Corridor as a way to support cost effective, reliable and safe conveyance of freight and people in East Africa.

“Total logistics costs arising from moving one 20ft container from Mombasa range from $ 9,174 (Mombasa-Nairobi) to $28,309 (Mombasa-Juba)”, reads one of the key findings of a recent study, Analytical and Comparative Transport Cost Study along the Northern Corridor Region.

Currently there are very few rest facilities with parking space that can accommodate heavy commercial vehicles as most of the lodging facilities used by truck drivers do not meet basic sanitary and hygienic conditions, the RSSs interim report notes.

The main functions of the RSSs will include providing secure parking yards for transit vehicles as well as rest facilities, restaurants, information centres, and outlets for amenities needed by truck crews, long distance passengers and the local communities.

Hazards along the Northern Corridor as the study notes include prostitution which is rife at some places, compounded by extreme poverty in many surrounding communities. This contributes to spread of HIV/AIDS infection along the corridor.

Additionally, markets have sprung up in a disorderly fashion along the roadside with child hawkers in some trade centres dangerously approaching moving vehicles resulting in more accidents. Public agencies’ controls are not always well organized leading to traffic congestion at weighbridges, borders and police/customs check points, adding to an already long list of Non Tariff Barriers (NTBs) to trade.

“As a result, travel speeds are low, security of cargo and crews are poor, road accidents are very many, corruption is common at check points and HIV/AIDS is rampant among truck drivers and their clients at truck-stops,” the interim report reads in part.

The Roadside Stations project will be presented to an Investor Conference and will be launched by the Council of Ministers at one of its meetings.

ROADSIDE STATIONS:

Lessons from

A Roadside Station (Michi-noEki) is a government-designated rest area found along roads and highways in Japan.

In addition to providing places for travelers to rest, they are also intended to promote local tourism and trade. Shops may sell local produce, snacks, souvenirs, and other goods.

Such stations are also an expression of a region and a place for experiencing that region first-hand. Since 1993, cities and towns that represent regions have been cooperating with highway administration bodies to develop Michi-no-Eki that provide the three functions of rest area, information provision and regional linkage.

Today in Japan there are more than 700 road stations.

Their positive impact on local economies, job creation, provision of public services for the local community (such as health care, education and training, and cultural activities) and regional integration is evident throughout the country.

The World Bank has developed new guidelines for establishment of Michi-no-Eki in developing countries. The Bank has brought together more than ten years of successful Japanese experience and selected practical work in client countries in East Asia and Africa. The established guidelines discuss the Michi-no-Eki concepts adjusted to developing countries and provide specific advice on the planning, design and operations of these facilities in developing countries.

ISSUE 22 VOL. 4

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Technology

UGANDA UPGRADES CARGO CLEARANCE SYSTEM

D

oing business in Uganda is expected to improve after the country activated its latest online cargo clearance system ahead of rollout of the Single Customs Territory with partners Kenya and Rwanda this month.

In September last year, Uganda went live with the Automated System for Customs Data (Asycuda World). The system, which is an upgraded version of Asycuda++, is a web-based customs management system that supports paperless cargo submission and processing through the use of electronic documents.

Joseph Mwangala, the project manager of the Customs Business Enhancement Project at the Uganda Revenue Authority (URA), said the system is now accessible throughout the country via the Internet, after nearly 10 months of piloting in Jinja, eastern Uganda.

Asycuda World is also available at major customs

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ISSUE 22 VOL. 4

stations such as Entebbe, Malaba, Busia, Mbale, Lwakhakha, Suam River, Katuna, Mutukula, and the Kampala Customs Business Centre, Mr Mwangala said.

He said the system is ready to be linked with the Kenyan and Rwandan Customs systems once the Single Customs Territory (SCT), in which all transit cargo is cleared in Mombasa, is activated.

Three East African Community states — Uganda, Kenya and Rwanda — have agreed to implement the SCT, enabling traders from any of the countries to clear their goods at the first port of entry into the region.

URA introduced Asycuda in Uganda in 1997, starting with Asycuda 2.7, then Asycuda++ in 2004, and now the latest version Asycuda World. Unlike previous versions, Asycuda World does not require a client to install software, and is accessible anywhere there is Internet.

Clients will be required to have access to a desktop computer or laptop with

at least 50GB of hard disk and 1GB of random access memory (RAM).

The user will be required to log into the system using the credentials supplied by URA to access the system menu depending on their user profile, enabling a client to carry out the authorised activities that include monitoring the status of their declarations and receiving electronic confirmations of the processes immediately in an email or a short message via the mobile phone (SMS).

URA’s Commissioner for Customs Richard Kamajugo said the new system will hasten cargo clearance, as well as promote transparency in the Customs department.

“Since we started our pilot project in November 2012, we have seen faster clearance of goods and services. In Jinja, we have seen 60 per cent of declarations from payments to exit done within one day, and in Entebbe, 45-50 per cent,” said Mr Kamajugo.

Unlike previous versions, Asycuda World does not require a client to install software, and is accessible anywhere there is Internet.

The Transporter

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31

Infrastructure

Rwanda joins war against

OVERLOADING “The stationary weighbridges create congestion since trucks have to park and wait to be weighed, which hinders free movement of goods along the corridor. We want to facilitate traders as well as maintain our roads…”

Ben Kagarama, Commissioner General Rwanda Revenue Authority

R

wanda has introduced mobile weighbridges on its major highways to curb cases of overloading.

Rwanda Transport Development Agency (RTDA) said that two machines are now stationed at the RTDA laboratory, and according to an official, one will be deployed along the Kigali-Gatuna highway where the problem of overloading is rampant.

The other road to be monitored is the one connecting Bugarama–Rusizi which proceeds to Burundi where

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most trucks ferrying cement are said to overload.

“The mobile weighbridges are ready and we are now focusing on the roads that are most affected. We also intend to start an awareness campaign during the same week to sensitize transporters to avoid overloading,” Theophile Dusabe, acting head of maintenance division at RTDA said recently.

According to Mr Dusabe, the machine has two flat plates where a truck passes, and indicates the

weight of the vehicle within a short period of time to ensure that trucks are not delayed. The initiative will be implemented in collaboration with Rwanda Revenue Authority (RRA) and Rwanda National Police.

Due to lack of sound legal mechanisms, enforcing weight control measures will be hard since the law is yet to be revised to facilitate the implementation of the axle load set under the EAC framework.

Along the Northern Corridor, Kenya is using two stationery weighbridges The Transporter

for transit goods, at Mariakani and Malaba while Uganda has five, which have been identified as non-tariff barriers since they create congestion during the process of weighing.

Ben Kagarama, the commissioner general of RRA said that the mobile weighbridges will create efficiency in the transportation of goods and time saving.

“The current stationery weighbridges create congestion on the roads since many trucks have to park and wait to be weighed, which hinders free movement of goods along the corridor. We want to facilitate the traders as well as maintain our roads,” Mr Kagarame told the media recently.

Recently, during an Infrastructure Summit in Kigali, heads of state of three countries using the Northern Corridor signed a communiqué urging the three countries – Kenya Uganda and Rwanda – to eliminate the remaining non-tariff barriers with immediate effect.

They further agreed that transit cargo be equipped with electronic tracking devices

by January 2014, for ease of monitoring along the corridor as well as comply with the instructions that transit cargo will be weighed once at the point of entry into each member state territory.

With the implementation of harmonised axle load control, the member states are likely to save over US$1 billion each year, according to the EAC deputy secretary-general, Dr Enos Bukuku.

“By harmonising the approach to axle load control to allow for a maximum of 56 tonnes per truck, we shall remove costly logistics burden from the operators and investors and save the region over one billion dollars annually,” he said.

Rwanda has not had weighbridges before and truckers, especially those transporting transit goods from Mombasa and Dar es Salaam ports are accused of taking advantage of this to overload their vehicles.

The Transporter

UGANDA

cracks whip on

Tax Cheats

T

he Uganda Revenue Authority (URA) has streamlined procedures of clearing cargo at the borders and all customs areas which will see goods cleared within 24 hours.

Starting January 2014 importers will use their taxpayer identification number (TIN) to electronically inform URA the agent they have appointed to clear their goods.

After appointment, customs agents will be electronically linked to the respective companies.

The new measures are intended to decongest borders and speed up flow of goods to markets as well as close revenue leakages that some unscrupulous traders and clearing agents have exploited in the past.

It is only after URA receives information on the clearing agents that they will be able to make a declaration to clear the goods.

This measure is aimed at curbing self-appointed representatives of importers who commit customs offences and defraud importers.

Before, the trader would appoint a clearing agent manually by writing a letter to Customs. However, some unscrupulous agents and traders misused this avenue and used TINs of unsuspecting compliant taxpayers who were exempted from withholding tax.

“They would hence pay less tax, leading to a loss of revenue and also place a compliance burden to the exempt taxpayer,” says Dicksons Kateshumbwa, the URA Assistant Commissioner Customs Audit.

With the new measures, any clarification along the clearance process will be done electronically and responded to within 24 hours

X TA

and failure to do so, the Asycuda World system will automatically block the transaction.

Importers and exporters will be notified of the status of their declarations via an SMS on cell phone numbers they registered with URA while applying for a TIN. Furthermore, the practice of leaving goods lying idle in customs bond warehouses will be no more.

All goods imported shall either be declared for home consumption or warehousing and verified within 24 hours of their online submission.

Verification will also be done within a day to avoid congestion in the bonds.

The development in Uganda comes in the wake of revelation that the country is one of the best among East African Community (EAC) partner states in mobilizing domestic revenues, initially a preserve for Rwanda.

“URA posted the best performance in domestic revenue mobilsation registering a 107 per cent performance, followed by Kenya Revenue Authority (101 per cent), Tanzania Revenue Authority (90 per cent) and Burundi Revenue Authority (OBR) with 73 per cent,” reads a recent EAC report.

While releasing the August revenue performance report, URA commissioner for customs, Mr Richard Kamajugo, said monitoring and surveillance was heightened with a view to improve compliance, a move that has paid off.

According to analysts, Rwanda could regain its lead position as it has invested in technology that is expected to boost revenue mobilisation.

ISSUE 22 VOL. 4

37

Regulation PRESIDENTIAL ASSENT

KNOW THE LAW The newly enacted axle load control regulations took effect on January 1st 2014. The new regulations have outlawed use of ‘dummy’, ‘dead’ or ‘ineffective’ axles on trucks. However, questions have been raised over what really constitutes ‘dummy’ axles.

New law reduces insurance claim payment time COURT cases arising from motor accident insurance claims are set to reduce following the signing of the Insurance Third Party Risks amendment bill 2013 into law

by President Uhuru Kenyatta.

The law has reduced the time it takes for a claim to be paid out from the usual 90 days to 60 days and also calls for parties to commit to an arbitration process in case of any disagreements over compensation rather than sue each other.

“The claimant or judgment debtor or his representative shall upon receipt of the admission of liability shall allow the insurer a period of not more than sixty days to settle the claim or judgment out of court and both the insurer and the claimant or judgment debtor or his representative commit to arbitration or mediation during that period before resorting to court,” says a new subsection under clause 3A of the law.

Also the amendments have given the Insurance Regulatory Authority a say on how much can be paid to a victim in the event his or her injuries from a motor accident are not covered under the structured compensation schedule given under the law.

The set payments per stipulated injuries are meant to cushion insurers from hefty awards given to victims in some court cases and also expedite claims payment in the event of an accident.

Insurance companies have for a long time complained of unwarranted compensation payouts given via court rulings which they said had made financial planning impossible and also left them vulnerable to unscrupulous lawyers, victims and rogue traffic cops who exaggerate accident reports.

The insurance industry through their umbrella body, Association of Kenya Insurers (AKI) have been clamouring for the amendment of the Insurance (Motor Vehicle Third Party Risks), Act Cap 405 since the year 2008.

Kindly let us know your interpretation of the Dummy Axles ban on Kenyan roads from 1st Jan 2014. Most European trucks on the roads are 6x2 with the small lift axle being factory fitted and not an add-on axle. Would this pre-existing, factory built axle allowed on the road and relevant weight allowance given once the law is implemented in Jan 2014? Or is that considered a dummy axle?

The Traffic (Amendment) Rules 2013 defines a dummy/dead axle: “as an axle which is not fitted and certified by the vehicle manufacturer.” Such axles have been outlawed through express provisions of the Amendment Rules and the East African Community Vehicle Load Control Act. The two laws further define a lift axle as: “a non-powered axle in an axle unit, which can be lifted independently, but which by virtue of an automatic mechanism or sensor, is lowered to the road pavement when the adjacent axle in the unit is loaded beyond an automatically predetermined load limit.” This type of axle is recognized in law as a legitimate axle. The identifying factor is whether or not the axle is manufacturer-specified. In effect, a 6x2 truck (3 axle prime mover/tractor) with a lift axle that meets the above specifications ( has a manufacturer-specified dead man switch and an automatic drop-down mechanism when loaded) is allowed on the road. However, a 6x2 truck with an add-on axle not specified as manufacturer’s will not be allowed on the roads effective 1st January 2014. Such axles will not be weighed at the weighbridges and ONLY the diff will be considered legitimate in the mid-unit axle.

For more information on the Insurance (Motor Vehicles Third Party Risks) Act CAP 405 and other Laws of the Republic of Kenya visit http://www.kenyalaw.org

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Integration HEADS OF STATE MEETING: Presidents Salva Kiir (South Sudan), Yoweri Museveni (Uganda), Paul Kagame (Rwanda) and Uhuru Kenyatta (Kenya) during a press conference in Kigali, Rwanda.

Questions raised over SINGLE CUSTOMS TERRITORY “The future success of EAC single customs territory can only be guaranteed if the region has got institutions that protect integration vision, and able to drive the territory even when political will-power fails nationally…” – Dan Ameyo, consultant.

T

he Single Customs Territory being rolled out in three of East African Community (EAC) countries continues to generate debate, with Kenyan stakeholders urging the government to be cautious on its implementation to protect the country’s business community.

President Paul Kagame in November this year welcomed to Kigali President Yoweri Museveni of Uganda, President Salva Kiir of South Sudan and President Uhuru Kenyatta of Kenya to the 3rd summit to discuss joint integration projects involving the four countries.

The four Heads of State witnessed the launch of the Single Customs Territory that is expected to reduce the transport time for goods from Mombasa port to Kigali from 21 days to eight and to Kampala from 18 to five days.

Although they welcomed the move, experts and industry stakeholders warn that sufficient measures have not yet been put in

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place to guarantee the success of the initiative as envisaged.

A report presented by the East Africa Business Council (EABC) consultant recently said that while implementation of the Protocol and its annexes has been steady over the transitional period, a Single Customs Territory in a fully fledged customs union has not been attained due to lack of strong institutional and legal framework.

Dan Ameyo, who worked with the consultant, said that East Africa should start thinking as a region and not countries since it is crucial to the attainment of a single customs territory, and is going to be crucial to the success or failure of the EAC Customs Union.

Ameyo noted that regional integration is a deeply political process and the implementation of a single customs territory has important political aspects.

“Regional integration in general and the realization of a single customs territory in particular will be achieved when the states and the elected leaders

show leadership against fierce domestic resistance,” he stressed at a two day regional private sector consultative workshop on attainment of single customs territory organized by the EABC in Arusha, Tanzania.

He noted that free circulation of goods in a single customs territory presupposes a revenue collection system that ensures reconciliation and accountability to enable goods to move from one place to the other.

Other important aspects include cessation of rules of origin, minimal or removal of internal border controls, improved information technology interconnectivity and exchange of information between agencies involved in clearance of goods and collection of taxes.

Partner states also have to shift the domestic taxation on imports at the time of entry of goods to the point of sale in the importing state and that strict bond controls are uncalled for among others.

Mr Ameyo added that free The Transporter

circulation could also overload capacities of partner states with sea ports as they would be required to clear the bulk of goods entering the Customs Union leading to the loss of import revenues.

“Partner states need to put in place payment systems to manage transfers of revenues between states and an independent audit system for early detection of deviations to the protocol,” he said, adding: “They should also put in place laws to authorize acceptance of electronic information as evidence for transactions, a centralized bond guarantee system and operational single window borders including a centralized customs administration.”

Mr. Ameyo also identified the main sources of non-tariff barriers in intra-regional trade to include disharmonized laws governing trade, non customs state agencies involved in clearance of goods, absence of a mechanism to harmonize laws and lack of an institution to sanction partner states over NTBs outside the court.

The future success of EAC single customs territory can only be guaranteed if the region has got institutions that protect integration vision, and able to drive the territory even when political willpower fails nationally, he noted.

Federation of East African Freight Forwarders Associations (FEAFFA) Executive Director John Mathenge emphasized that there was need for in-depth stakeholder involvement in all necessary preparations to provide an opportunity for all concerns to be addressed to ease implementation.

“This way,” he said, “we will be able to move together as a region and hope that all the partner states will soon be in an EAC Single Customs Territory.”

Welcoming the move, Shippers Council of East Africa (SCEA) said the licensing regime of key players in the logistics chain such as clearing agents, should be put under one jurisdiction to avoid The Transporter

unfair business practices that might lock out some players.

“The success of the common customs territory will largely depend on how it is implemented and will be important, for instance, for licensing regime to be done under one jurisdiction, be it in Kenya, Uganda or Rwanda,” said chief executive officer Gilbert Langat.

Mr Langat said that having a common custom territory will free custom bonds, which are required for transit cargo and are considered as operational costs by importers.

Some huge importers, he noted, have up to Sh2 billion tied in custom bonds.

“About 75 percent of our members have business interest in the region and payment of duty at point of entry will help in planning, which has direct cost impact,” Mr Lang’at added.

Roy Mwanthi, Kenya International Freight and Warehousing Association (KIFWA) Mombasa branch chairman shares similar sentiments, but notes that clearing agents from Rwanda and Uganda have already moved to do business in Mombasa yet there are still many administrative issues on how the common customs territory

will be implemented that are yet to be addressed.

According to Mr Lang’at, it is not yet clear whether Uganda or Rwanda importers will be required to engage only those clearing agents registered in their respective countries, a move that if adopted will see Kenyan freight forwarders lose jobs and affect other logistic businesses such as transport.

Transit traffic passing through Mombasa port increased significantly from 5,596,166 tons in 2011 to 6,625,641 tons in 2012 reflecting a notable volume growth of 1,029,475 tons or 18.4 per cent.

Uganda remains the dominant transit destination, accounting for 73.1 per cent of market share, over 30 percent of the total volume at the port, during this period.

South Sudan, emerging as a new key transit destination takes second place with 11.6 per cent share. Democratic Republic of Congo (DRC) is in third position with 7.3 per cent share followed by Rwanda with 3.9 per cent.

However, the commissioner of customs at Kenya Revenue Authority (KRA) Beatrice Memo says clearing agents are opposing common custom territory without a strong justification. Contd. Page 43

ISSUE 22 VOL. 4

41

Trade

TMEA grants private sector SH45 MILLION The Northern Corridor is the busiest and most important transport route in east and central Africa…but inefficiencies and non-tariff barriers have undermined this crucial role.

T

radeMark East Africa (TMEA) recently signed a grant worth Ksh45 million with the Kenya Private Sector Alliance (KEPSA) to improve business environment, market access and enhance trade along the Northern Corridor.

The grant from TMEA is a second installment to be given to KEPSA to be used to streamline trade environment within the East African region. KEPSA chief executive, Carole Kariuki said top on the alliance’s agenda is advocating for removal of trade barriers in the region.

As the engine of economic growth contributing about 70 per cent to Kenya’s GDP, TMEA has been keen on the creation of an enabling environment to aid trade. KEPSA has developed a structured system of engagement between various government agencies and Private Sector Organisations (PSOs) not only

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to solve specific business climate problems, but also to address policy bottlenecks.

Ms Kariuki said that KEPSA has had a productive partnership with TMEA dating back to 2011 when they partnered in their first project which sought to improve Kenyan Trade Logistics and investment climate.

The current project aims to develop and implement a National Investment Master Plan, improve efficiency and effectiveness of operations at the Mombasa Port and the persistent delays at weighbridges besides strengthening participation of Kenya’s private sector in East African regional integration.

“With the signing of this agreement, TMEA is keen to continue supporting KEPSA to build on the gains made during the first phase and sustain its efforts to improve the effective participation of Kenyan private sector in EAC integration process,” said Chris

Kiptoo, country representative.

The new funding will help KEPSA increase domestication of EAC trade policy and increase participation of its members in the EAC. The Northern Corridor is the busiest and most important transport route in east and central Africa. It connects Kenya to landlocked economies of Uganda, Rwanda, Burundi and eastern Democratic Republic of Congo and serves South Sudan.

According to KPA 2012 performance data, Uganda remains the predominant transit destination of cargo passing through the Port of Mombasa accounting for 4.85 million tonnes or 73.1 per cent of last year’s total transit traffic.

South Sudan, emerging as a new key transit destination, took second place after Uganda, with a total traffic of 766,656 tonnes or 11.6 per cent share of transit traffic followed by DR Congo with a total of 482,358 tonnes.

The Transporter

Rwanda at 260,238 tonnes, Tanzania at 186,169 tonnes and Burundi with 39,160 tonnes took the fourth, fifth and sixth positions respectively.

However, inefficiency and slow pace of moving goods on the Northern Corridor has in the past seen landlocked neighbours, especially Uganda-based shippers, threaten to dump Mombasa for the Port of Dar es Salaam.

This grant joins others that have also been channeled through TMEA by several institutions including foreign countries. Last year, the Netherlands government announced a US$27.5 million (Sh2.3 billion) grant to TMEA, most of which would be used for development of infrastructure projects at Mombasa port.

The country’s Foreign Trade and Development Cooperation minister Ms Lilianne Ploumen said the grant underlines Netherland’s commitment to infrastructural and integration efforts within East Africa.

“The synergies between trade, economic development and poverty eradication are at the heart of the new policy agenda of the Netherlands (and) Trade Mark East Africa has shown the enormous gains that can be achieved by removing barriers to trade,” she said during the signing of the agreement at the Kenya Ports Authority (KPA) headquarters. The ceremony was witnessed by a delegation of Dutch companies, some of which have been involved in carrying out development projects at the port.

In 2012, KPA completed dredging of the port channel to accommodate bigger vessels while in August last year, Presidents Uhuru Kenyatta, Paul Kagame (Rwanda) and Yuweri Museveni (Uganda) commissioned a new berth (19) at the port.

While the two projects were completed at a cost of Sh10 billion, KPA is currently constructing the second container terminal at a cost of over Sh28 billion, funded by the Japanese government.

TMEA chief executive officer Mr Frank Matsaert said they would use the money to rehabilitate 14 berths at the port including the dry dock used for repair of vessels.

TMEA targets to reduce cargo dwell time at the port from the current six days to less than two; reduce the number of days a truck takes The Transporter

to deliver goods in Kampala from Mombasa from 13 currently to less than five and cut to 24 hours vessel turnaround from 72 hours.

“Facilitating regional trade is an effective means to alleviate poverty and create welfare. This investment in supporting these projects is the catalyst needed to bring about prosperity to the region,” Mr Matsaert said.

President Kenyatta has been in the forefront in ensuring that efficiency is improved at the port and northern corridor. In July last year, he ordered all port stakeholders to seek ways of reducing the number of days it took for cargo to be transported to Kampala from Mombasa.

Consequently, all roadblocks along the corridor were removed, transit goods are now weighed only once at the point of exit and transit bonds have been abolished, resulting to reduced transit time.

Of most concern to stakeholders is the number of days it takes to clear cargo at the port and the period it takes for goods to reach neighbouring countries.

Time taken to move cargo from Mombasa to Malaba is now moving to five days compared to up to eighteen days, following Kenya’s move to reduce the number of roadblocks and weighbridges along the crucial route.

“Cargo loaded at Mombasa is weighed at Mariakani only, while goods loaded at Eldoret are weighed at Malaba only,” President Kenyatta told a Trilateral Infrastructure Summit in Kigali recently.

The president also directed immediate digitisation of the clearing process at the port of Mombasa and the modernisation of weighing of cargo at the weighbridges. He also directed all agencies under KPA to relocate and operate from the port.

The Kenya Revenue Authority (KRA), Kenya Bureau of Standards (Kebs), Kenya Plant Health Inspectorate (Kephis) and Kenya Maritime Authority (KMA) have been implementing the decrees in the past few months since the directive was issued.

“The initiative has facilitated the movement of goods, people and services and provided the impetus to create jobs and opportunities for our people as well as create greater prosperity,” the President said.

Questions raised over

SINGLE CUSTOMS TERRITORY

Contd. from Page 41

According to Mr Mwanthi, key stakeholders, including clearing agents who estimate losses of up to one million jobs if the customs territory is implemented in its current state, were not consulted.

Besides, truck transit regime is also expected to change.

Currently, transit trucks are not allowed to carry local cargo forcing transporters to keep two different fleets that cannot complement each other when there is a business boom. The free storage period for both transit and domestic cargo should also be harmonized to avoid congesting the port, Mr Langat noted.

“Currently, importers of transit cargo are allowed a free storage period of nine days while local importers are allowed only four days. The common custom territory will expose importers to a wide range of freight and forwarding firms in the region, a move that is expected to bring competition and lower the cost,” he said.

The customs territory has been compounded by the current bad blood between Tanzania and three Coalition of Willing (CoW) partners – Kenya, Uganda and Rwanda – who have entered agreements to fast-track some elements of the EAC integration process besides agreeing on some modalities of implementing major infrastructural projects including construction of a standard gauge railway from Mombasa to Kigali.

South Sudan, the newest African county which has put in her application to join the EAC, is an interested partner to the CoW. By the time of going to press, it was not clear exactly when the single customs territory would be adopted.

ISSUE 22 VOL. 4

43

Trade

Financial Facility to Help Reduce Costs

LAUNCHED

T

he Logistics Innovation for Trade (LIFT), a financial facility which aims to provide matching grants on a competitive basis to leverage substantial private sector investment was launched late last year. The facility will largely support freight and other logistics technologies and business

processes in the region.

A grant of US$16 million, which is primarily supported by United Kingdom, Belgium, Denmark, Finland, Netherlands, Sweden and the United States is expected to support the facility channeled through Trademark East Africa (TMEA), which will come up with initiatives to reduce the regions’

logistics and transport costs through innovative solutions.

Among the areas the two-year fund, which runs from 2014 to 2016 targets is cutting transit time along the main transport corridors in East Africa by 15 per cent by 2016.

“The LIFT fund will support private sector investments in freight and other logistics as well as business processes in East Africa,” said Frank Matsaert, TMEA chief executive officer. He spoke during the announcement of the signing of the grant in Arusha, Tanzania where Kenya Transporters Association was represented by acting CEO Mr Willington Kiverenge.

East Africa is among regions with the highest freight and transport costs in the world, eroding the competitiveness of locally produced goods in the world market, thus reducing trade, economic growth and job creation.

Transport and logistics costs are estimated at 42 per cent of the total value of imports, and as high as 75 per cent of the value of exports.

“A 10 per cent reduction in transport costs is likely to increase trade by 25 per cent worldwide.

Without addressing logistics efficiency problems, East Africa’s growth potential will seriously be constrained,’’ said Mr Matsaert.

Scaling up infrastructure investments and adopting modern methods of management have been identified as significant benchmarks in realizing potentials in the business sector to contribute immensely to economic

A ten per cent reduction in transport costs could increase trade by twenty five per cent worldwide… without addressing logistics efficiency problems, East Africa’s growth potential will seriously be constrained...

Frank Matsaert, TMEA Chief Executive Officer

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ISSUE 22 VOL. 4

The Transporter

growth of the East African Community (EAC) partner states.

“For the region to benefit from innovations in transport and logistics more investments are needed in roads, railways, ports and flyovers that would make businesses ride on much higher waves of increased productivity, efficiency and cost effectiveness,” Dr Enos Bukuku, the EAC Deputy Secretary General, Planning and Infrastructure said recently.

Speaking during the launch of the LIFT facility, Dr Bukuku said that there were areas in the region where fresh fruits and vegetables are not able to reach consumers beyond the production areas in villages and districts due to high transport costs.

He noted that the quality and cost of freight transport services play a critical role in the competitiveness of a firm and by extension a country’s economy.

The World Bank Logistics Performance Index (LPI), which is a global ranking of the logistics performance of countries along some key indicators including customs clearance efficiency, quality of trade and transport related infrastructure and the ease of arranging competitively priced shipments, ranks the region poorly.

The LPI 2012 statistics show Tanzania being ranked highest in East Africa at the 88th position out of 155 countries surveyed while Kenya is at 122, Rwanda 139 and Burundi at 155. The state of affairs confirms that unless the logistics efficiency obstacles are addressed, the region’s growth potential will be jeopardized.

According to Dr Bukuku, trading, transportation and warehousing need to be modernized by use of innovative ways that would definitely result into an investment destination by choice as well as a logistics centre for goods and services.

In order for exports to compete in the global marketplace, modern businesses are required to have reliable flows of inventories such as raw materials, intermediate, finished goods and supplies.

Without affordable logistics and transportation, businesses are forced to carry higher levels of inventory and stocks to deal with uncertainty, thus tying up capital that would be used to leverage substantial private sector investment into freight and other logistics technologies and business processes in the region.

The Transporter

AU ADOPTS

GLOBAL ACCOUNTING

STANDARDS

A

frican Union (AU) member states will adopt the International Public Sector Accounting Standards (IPSAS) as the framework for preparing financial statements and management of finances.

IPSAS is a high quality global financial reporting standard for application by public sector entities other than Government Business Enterprises. The Director of Programming, Budgeting, Finance and Accounting of the African Union Mr Thomas Asare recently told reporters in Mombasa that implementation of IPSAS was arrived at during the January 2013 AU Summit.

“We are here for a training which is part of the implementation of IPSAS. The AU took a decision to adopt this international standard as a framework of preparing and managing finances in general,” he said.

The Director said the standards were relevant to governments and inter-

governmental organizations, citing the United Nations which adopted and implemented the system in 2006.

The process required a series of training to be provided to all the organs and institutions of the AU Mr Asare said, adding that plans were underway to conduct the training and implementation in West and South African member states before converging at the Headquarters in Addis Ababa, Ethiopia.

With the AU’s limited time frame for implementation pegged at December 2014, the countries hope that by 2015 Africa will be IPSAS Compliant.

“While the benefits of implementation of IPSAS will bring a greater transparency and accountability of resources, AU will be at par with other international organizations. This will also increase the resources from donors,” he added.

Over the years, several governments in the public sector have not had a standardized way of reporting financial performance. The adoption of the IPSAS will be seen as a step towards uniform financial reporting and better communication to the public and other donor agencies.

Governments will be able to use IPSAS on disclosure of information about the General Government Sector Revenue from nonexchange transactions and presentation of budget information in the financial statement respectively to communicate issues of policy and financial performance in the Public sector.

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45

Logistics

EACFFPC now a must

FOR FREIGHTERS Developed in 2007, the course programme is being mainstreamed under the EAC Directorate of Customs and will soon be recognized as an EAC customs training programme.

T

he East Africa Customs and Freight Forwarding Practicing Certificate (EACFFPC) is set to become one of the key requirements for licensing customs agents in East Africa.

This commitment was reached by the Commissioners of Customs of the East Africa Community (EAC) Revenue Authorities and the chairpersons of the Federation

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ISSUE 22 VOL. 4

of East African Freight Forwarders Associations (FEAFFA) and affiliated National Associations at a meeting in Kampala recently.

In the last two years, FEAFFA has spearheaded the project in the five East Africa countries to ensure a substantial number of clearing agents are trained and qualified before this condition comes into force in all countries.

According to FEAFFA president

Mathieu Bizimana, each clearing and forwarding company is supposed to have at least two trained employees or directors in order to be licensed, a feat that almost all countries in the region have achieved.

Speaking during the EACFFPC Curriculum Implementation Committee meeting at Kampala Sheraton hotel recently, Mr Bizimana said: “The industry has The Transporter

accomplished its role and what was remaining was for the revenue authorities to play their part in ensuring a professional freight forwarding industry in the region.”

More than 3,000 clearing agents have already qualified with another 1,100 currently in class across the region. The number is evenly distributed in all countries according to size of the industry in each country, with Kenya and Tanzania leading the pack with more than 1000 qualified agents each.

A joint venture between the The Transporter

clearing and forwarding industry and the revenue authorities, the course was developed in 2007 and has been implemented in the region since then.

Currently, the programme is being mainstreamed under the EAC Directorate of Customs and will soon be recognized as an EAC customs training programme.

The curriculum and training materials have been reviewed by the EAC and several capacity building events held in order to make the programme’s delivery more effective.

“The EAC has so far organized two Training of Trainers courses and held several policy meetings to ensure the EACFFPC training is conducted in line with EAC standards. Once it is presented and passed by the EAC Committee on Customs, the EACFFPC will officially be adopted as a training programme in the region,” Mr Mathenge said.

The EACFFPC is one of the major programmes supported by Trademark East Africa (TMEA) under the Trade Facilitation/ Transport Directorate. TMEA started funding the programme in 2011 in order to accelerate the attainment of the critical mass of trained agents in order to deploy it as a requirement during licensing of customs agents.

TMEA Director for Trade Facilitation/Transport, Mr. Silas Kanamugire, says more than US$2 million has been invested into this programme over the past two and half years.

“The funds were used to hire training coordinators, improve the curriculum and training materials as well as establish more training centers including the recent ones at the borders of Malaba and Busia,” he added.

Capacity limitations among

clearing agents was seen as a major contributor towards inefficient transport logistics and therefore the high cost of transport in the region.

“Therefore, in addition to the various infrastructure and policy initiatives, it was vital that capacity of all clearing agents be enhanced in order to make it easy for them to deliver on their mandate. This in our view would directly impact on the freight logistics costs in the region,” said Mr Kanamugire.

Clearing agents who have undergone the training say it has impacted greatly in the way they do business. Mr Paul Mwagen of Efficient Freighters Tanzania Limited says he used to experience delays when clearing goods because he lacked certain knowledge on handling certain goods.

“Previously, I would lose customers due to mishandling but the training has enabled me to get more customers and increase the volume of business since I am able to it faster than before,” he said.

“As a result of the training, my customers express more positive experience and satisfaction when dealing with me and our customer base has since increased due to improvements in customer care and the professional manner in which they are handled,” Susan Mukankubana of Top Freight Ltd in Tanzania added.

The EACFFPC training is part of the initiatives by the Federation to professionalize clearing and forwarding in the region. Other complementary initiatives include the Regional Code of Conduct that was developed with support from USAID East Africa Trade Hub, then known as USAID COMPETE, and the Standard Trading Conditions.

“All these instruments are hoped to become part of an entire criterion that one would have to pass in order to become recognized as a full professional once the planned Regional Freight Logistics Institute kicks off,” said Mr Mathenge.

ISSUE 22 VOL. 4

47

Advertisers Features

SECURE YOUR CARGO WITH SGS OMNISTM ECTS

F

or many years organisations have used numerous different GPS technologies to try and keep a watchful eye over their vehicle’s location.

This technology was often used to capture direction of travel, speed and braking data. Although effective in their own limited way, these Fleet Management Systems are not able to monitor the status of the actual cargo be it dry bulk, liquid or petroleum that the vehicle is carrying. Whilst having visibility over the vehicle is important more often companies are more concerned about the security of their precious cargo.

Technology is only one part of the solution, which when used in isolation can only have limited success. The SGS OMNIS solution combines the latest in high end electronic seals along with sophis-

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ISSUE 22 VOL. 4

ticated electronic cargo tracking software and SGS’ own internal expertise to secure cargo providing complete end-to-end visibility with full container intrusion monitoring. SGS Electronic Cargo Tracking System (ECTS) enables automatic tracking and monitoring, reporting and protection of cargo as it is transported from origin to destination and across borders. SGS currently provides the ECTS service from major loading points in Kenya including but not limited to: Mombasa, Nairobi, Nakuru, Kisumu & Eldoret, through to the border points and onward into Uganda and Tanzania and expanding shortly to Rwanda and South Sudan. The SGS ECTS system will alert you of an irregularity with the cargo, such as for example: the trailer has been disconnected from the truck, the vehicle has deviated from the authorised

route or the container’s electronic seal has been tampered with. SGS ECTS will secure your cargo in real time when in transit and in storage curbing shrinkage, pilferage or petroleum cargo contamination.

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• KRA approved ECTS solutions provide a waiver for the TGL License fee • The solution can help to identify unaccounted fuel shortages or fuel contamination by securing & alerting hatch or valve tampering and giving you full visibility on precious and high value cargo.

The Transporter

The Transporter

ISSUE 22 VOL. 4

49

Advertisers Features

Sifa Investment Ltd

We Deliver

A

privately owned company, Sifa Investments Limited has been operating since 2008, The Management team of Sifa Investments Limited is an energetic and highly experienced group, with over 30 years of extensive transport and logistics experience.

The company started in 2008 as an off shoot of the Mother company A K Abdulgani Transporters Ltd, with 3 trucks and today has a fleet of 55 trucks and fleet of 20 – 3 and 4 axle low loaders and 3 extensible semi trailers.

The company has invested in its own property on the old Port Reitz road where the main administration building and covered workshop (fully equipped with covered service bays, trailer fabrications, electrical and paint areas) is located, plus has an additional 2 acres parking yard opposite the main office.

The company has an annual turnover of approximately Usd 6 million and employs 150 permanent staff detailed as under.

• Managers- 6 • Administration- 13 • Operations- 8 • Workshop- 35 • Drivers- 59 • Turn men/helpers- 29.

Main clients served by the company from start of business to date are:• Bollore Africa Logistics Kenya Limited.

• Damco Kenya & Uganda.

• Roadtainers Kenya Limited.

• Signon Freight Limited.

• Inchcape Shipping Kenya & Uganda Limited.

• Three ways Shipping services Kenya Limited.

• Ken Freight (EA) Ltd. • P Z Cussons Kenya Limited.

• Base Titanium Kwale.

• Kenya Marine Contractors EPZ Ltd. • Quantum Express Logistics.

MISSION STATEMENT: Sifa Investments will be the first choice of customers for all their Transport requirements from the Port of Mombasa to within Kenya or any neighbouring Comesa countries. We will grow by offering clients a superior and reliable and timely service and adapting consistently to their requirements. Each customer is treated as though they are our only client and recognition is always placed in having a satisfied clientele.

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ISSUE 22 VOL. 4

The Transporter

Focus on TRANSAFRICA MOTORS INTRODUCTION Transafrica Motors (TAM) Limited one of the leading auto dealers in East Africa region was founded in 2005. Transafrica Motors deals in leading global brands like First Automobile Works (FAW) and Dalian Forklifts. Transafrica Motors branch of networks ensures that we are able to serve our customers where they are.

We have invested in modern workshops that are fully equipped and showrooms in located strategic areas in major cities.

Transafrica Motors has invested in a highly motivated team of employees equipped with knowledge, team, expertise and enthusiasm to make a difference in the purchasing experience of our customers.

Our onsite and offsite training programmes ensure that at all times our staff are abreast with the latest industry trends.

We have established relationships with finance institutions and other lenders to facilitate innovative financing options for our customers.

TAM has grown from a single branch in Nairobi, Kampala Street in the Industrial Area, to Five branches in major towns in Kenya including two branches in Nairobi and one each in Kisumu, Mombasa and Nakuru. During this period we sold more than 3,500 vehicle which are plying on Kenyan The Transporter

road. The total staff compliment has grown to over 350 employees.

Transafrica Motors was successfully able to position FAW in the Kenyan market and also grow new brands.

SALES AND MARKETING Transafrica Motors has a very experienced and dynamic sales team that seeks to fully comprehend and meet customers’ expectations. It was through the teams’ constant strive to achieve perfection that they successfully launched the first Chinese vehicle brand in East African region.

The team is constantly scanning and analyzing the market trends aimed at understanding and anticipating the preferences of the customer.

The success of the sales and marketing team comes from years of experience backed by in house training and an environment where they are given room to be ingenious and self driven.

Our range of vehicle starts from 1ton pickup, Minivan, SIRIUS S80(SUV), CA1041(3Ton),CA1 075,CA1083,CA1081,CA1120,C A1223,CA1311,Tipper CA3223, CA3250,CA3320 Prime Mover CA4161,CA4162,CA4322,CA4250 and special purpose vehicles.

AFTER SALES SERVICE Just like the sales and marketing

team, Transafrica Motors after sales team provides 24/7 services including road rescue, vehicle recovery and a 24 hour hotline services. Transafrica Motors workshops are equipped with ultra modern and computerized diagnostic machines.

Our team is constantly being taken through refresher in house and manufacturer training courses. The combination of a well trained and motivated team with well equipped modern workshops affirms our commitment to providing our customers with exceptional after sales services of highest quality standard.

The company has also invested in five dedicated service centers in Nairobi, Mombasa, Kisumu & Nakuru.

PARTS AND ACCESSORIES Transafrica Motors has invested in a robust parts inventory management system that ensures that customer’s parts needs are satisfied fully at all time and instances of stock-out and misbinning are totally eliminated.

The system is centralized and connected to all branches and also workshops.

FAW FAW (First Automotive Works) is a leading global manufacturer of quality passenger cars, trucks & buses.FAW group is the oldest & largest vehicle manufacturer in China was founded in 1953 and produced its first vehicle in 1956.

FAW vehicle sale in 2012 was 2,645,900. FAW’s brand value holds high rank in fortune’s global 500. Which is the ranking of top 500 corporations worldwide based on annual revenue.FAW employs 118,000 people around the world & sells product in over 70 countries. FAW has 16 wholly owned subsidiaries and controlling stake in 15 partially owned subsidiaries. FAW Group Corporation is headquartered in China’s northern city of Changchun, Jilin province.

ISSUE 22 VOL. 4

51

Truck

world

A quick look at what’s happening in the truck industry and what manufacturers are up to.

Meritor announces new European air disc brake contract with Scania

The Van Damme dividend? Volvo truck sales rise 31%

MERITOR INC. announced today it has been selected to supply its ELSA225H range of air disc brakes for Scania’s trucks and buses with production starting in 2014.

“We are investing $58 million in air disc brake capabilities at our technical center of excellence and manufacturing facility in Cwmbran, United Kingdom,” said Joe Plomin, vice president, International Operations at Meritor. This new contract with Scania exemplifies our commitment to be the recognized leader in brake engineering, testing and manufacturing.”

With Meritor’s extended family of air disc brakes, it now offers more optimized products for every vocation. More than four million ELSA air disc brakes have been manufactured with world class field reliability.

The ELSA family of brakes utilizes modular construction, which means the global standard clamping and adjuster mechanisms can be matched with a series of validated bridges and carriers to suit any wheel/axle combination.

“The ELSA family of braking products is the strongest, most robust and reliable that we’ve developed in more than 30 years that we’ve been manufacturing air disc brakes.” Plomin said.

VOLVO TRUCK continued to report healthy demand last month for its core Volvo brand of heavy vehicles Wednesday even as its other brands stagnated, but it is unclear at this point if the company’s recent round of attention-grabbing YouTube ads is having much to do with its success.

The company is in the midst of a major product assault, launching new trucks with improved technology. In addition, many truck buyers in Europe, Volvo’s biggest market, are purchasing trucks now rather than delay until 2014, when stricter European emissions laws take hold.

Volvo Truck, one of four wholly owned truck brands in the Volvo Group, delivered 31% more trucks in November than it did in the prior year, representing a sizable gain for a company selling high-dollar goods in economic times that remain challenging.

Deliveries for the group’s Mack, Renault and UD truck brands remained largely flat compared with last year.

Volvo Trucks, which accounts for about 60% of the Group’s total deliveries, launched five new Volvo-branded truck models during the last year and in midNovember it released a wildly popular advertisement on YouTube featuring actor Jean-Claude Van Damme appearing to perform a split between two moving trucks.

While the YouTube spot featuring Mr. Van Damme was by far the most popular of the firm’s Volvo creations — attracting awards and more than 60 million viewers — it was the sixth in a series of commercials meant to tout new technologies.

The first online spot showed a ballerina walking on a rope between two driving trucks. Others featured a hamster steering a truck up a hill and the CEO of Volvo Trucks standing on top of an FMX construction truck hoisted 20 meters above the water in Gothenburg harbor.

The goal was to get the general public talking about a brand that sells to a relatively narrow pocket of consumers.

Heavy-truck volumes represent only a fraction of what is sold in the automobile industry, but Volvo Trucks said truck buyers want to purchase vehicles seen as innovative.

Global truck companies Iveco, Paccar eyeing entry into India Global truck makers are targeting India’s commercial vehicle segment with Fiat Group’s IVECO and American PACCAR looking to enter the country to tap the potential of the world’s third-largest truck and bus market.

Paccar, headquartered in Bellevue, Washington, already has a component sourcing and developing technology centre at Pune for its global operations, set up three years ago in partnership with local technology solutions company KPIT Cummins Infosystems.

It had also participated in the 11th Auto Expo in Delhi and showcased its premium trucks.

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UD Trucks delivers first Quester units UD TRUCKS yesterday delivered the first units of Quester, its all-new heavy-duty truck range, designed specifically for growth markets in Asia and the rest of the world.

Asia Group, the receiver of the first units, is in the concrete pile manufacturing business that demands for especially strong heavy-duty trucks, catering the transportation of themassy products. The deal between UD Trucks and Asia Group – which comprises 15 units in total- includes the signing of a 3-year comprehensive maintenance and repair contract.

Being part of the Volvo Group since 2007, UD Trucks has recentlygeared up its manufacturing and distribution capabilities in Thailand. To achieve ‘closer to market’ status and ensure responsiveness to the demands from the Asian markets, investments over USD62 million (THB2 billion) had been made to expand the Greater Bangkok-based plant by adding a 20,000sqm facility with annual production capacity of up to 20,000 units.

Additionally, USD93.5 million (THB3 billion) had been invested to increasethe Thai dealer network.

Since its official introduction in August, the new UD Trucks rangehas received rousing support from the industry.

Commercial transport companies in Thailand, Indonesia and Malaysia have put in orders for the Quester, regarded as an industry game-changer.

Mr Christophe Martin, President, Volvo Group Trucks, Asia Oceania Sales, said: “The UD Quester is the result from years of seeking a solution to the needs of our customers in Asia and growth markets – at an affordable price. Marrying the Japanese brand’s reputation for dependability and Volvo’s global technology expertise,the Quester is designed, priced and equipped with features that cater to a multitude of different industries, from distribution to long-haul transportation, mining to construction.”

Growth is driven by high levels of Asia infrastructure spending Mr Martin continued, “Economic reports have shown that as Asia continues its fast infrastructure growth, there is high demand for the right commercial transportation.”

The Transporter

Global MINNESOTA

VICTORIA

ABU DHABI

Swoop on Trucks Reveals Hundreds of Mechanical Faults

Work Starts to Build First Green Road in Abu Dhabi

The American Trucking Associations and the Minnesota Trucking Association recently submitted a joint petition asking the Federal Motor Carrier Safety Administration to conduct a two-year pilot program to study the safety benefits and impacts of giving truck drivers more flexibility in their use of sleeper berth breaks.

“The trucking industry wants FMCSA to take its positive, laboratory-based findings on the value of split sleep and try to repeat them in a real-world field study,” ATA President and CEO Bill Graves said Dec. 16. “Doing a pilot test using professional drivers in actual trucking operations could give the Federal Motor Carrier Safety Administration even more scientific data on which to base future improvements to the sleeper berth rules.”

The two groups say although the federal hours of service rules for truckers require that they take 10 consecutive hours off after their 14-hour on-duty period, current sleep research supports shorter, more frequent rest periods. “In the case of many truck drivers, particularly those working in teams, allowing them to break up their 10-hour off-duty period into two shorter periods would be beneficial,” said John Hausladen, president of the Minnesota Trucking Association.

A swoop of more than 6,000 trucks registered in Victoria has found hundreds of faults with brakes, steering and suspension.

As tens of thousands of motorists hit the roads for the summer holidays, the truck blitz, conducted last month in NSW, found vehicles registered in Victoria were twice as likely to have defects than those registered north of the border. Victoria is home to some of the country’s largest transport companies.

The NSW Roads and Maritime Services and police joint operation issued 1170 defect notices for a range of issues including 556 brake faults and 248 steering and/or suspension faults.

The swoop has also prompted the NSW government to warn major retailers not to risk drivers’ lives by placing unreasonable deadlines on transport companies.

Several Victorian firms have been prosecuted for tampering with their trucks’ limiters, including Logistics 1, which was fined $260,000, and Damorange, forced to pay $100,000.

A number of fatal truck accidents, including one in Sydney in October involving a Victorian trucking company, have exposed unsafe practices in the trucking industry.

The Department of Transport (DoT) in Abu Dhabi is ready to start engineering design of the first green road in the Middle East.

Construction work is to begin in the first quarter of 2015 on the 5km pilot project, which will link the existing Abu Dhabi-Dubai Main Road (E11) and the new Abu DhabiDubai Main Road (E311).

The road will support the highest sustainable practices adopted worldwide such as state-of-the-art technologies and solutions to lower carbon emissions, as well as environment-friendly construction materials like recycled asphalt/concrete aggregates and scrap rubber tires.

It will use the most efficient environment-friendly solutions such as renewable energy for lighting. And materials used in constructing the road will ensure highest levels of safety and security for vehicles as well as lower maintenance and operations costs in the long run.

The location of the green road will not affect the traffic due to a number of detours, which will be set once work commences.

The DoT is working with the Urban Planning Council (UPC) Estidama Programme Team, the Environment Agency in Abu Dhabi and Masdar on the pilot project.

www.theage.com.au

www.constructionweekonline.com

www.ohsonline.com

Prayer needed for road safety – Peters JOHANNESBURG: South Africa’s Transport Minister Dipuo Peters has admitted that her government’s road safety campaigns are ineffective.

“It is common cause that Christmas and Easter seasons have the highest number of fatalities than most periods put together,” said Peters during a press briefing where she called for the nation to pray for safer roads.

She said prayer and “God’s hands of mercy” were necessary because the government’s messages were not yielding the desired results in reducing the number of accidents on the country’s roads.

“We need to reach our to our huge constituencies in every community and in every church. Through churches, temples, synagogues, mosques and other

The Transporter

places of worship where the people of God gather in prayer and supplications, messages on road safety must be propagated.

“It is of great concern to us that our education and enforcement messages fall short of reaching every road user. We believe more can and needs to be done to wrestle the monstrous carnage on our roads,” Peters said.

Road accidents are one of the main causes of death in the country and it is estimated there are 40 road-related deaths a day. “Looking at statistics from December 1... we realise that we are still seriously challenged and required to raise more voices to reach out to our South African community,” Peters told the media.

SOURCE: www.iol.co.za

ISSUE 22 VOL. 4

INDUSTRY NEWS

Trucking Groups Ask for Sleeper Berth Pilot Project

53

Truck&Trailer INOVATIONS, TRENDS

& DEVELOPMENTS

Wipers for heavy vehicles

New steel wheel

Coating ACCURIDE has introduced Steel Armor, a new advance in corrosionfighting coating technology for commercial vehicle steel wheels.

This proprietary three-phase coating process uses enhanced corrosion-fighting properties that extend steel wheel service life compared to standard coatings currently in use in the industry, according to the company. This technology will help fleets address a corrosion problem that costs the industry an estimated $4 billion a year, Accuride said, citing American Trucking Associations’ Technology and Maintenance Council figures.

The company estimates wheels protected by Steel Armor will last up to two additional years or more before they must be removed and refinished.

Some fleets will be able to avoid wheel refinishing costs entirely before trading their vehicles in, said Accuride. Others will see significant savings by delaying the average wheel refinishing time by two years at a cost of $35 per wheel or $630 per truck.

Pricing for wheels with Steel Armor will be the same as current offerings without it.

The new Steel Armor powder coating technology uses a proprietary protection process that improves the look along with the life of steel wheels, says the company. www.truckinginfo.com

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ISSUE 22 VOL.4 VOL. 4

ROBERT BOSCH has announced a new wiper-blade program for heavy-duty vehicles, comprised of 19 part numbers that offers 85% coverage of the class 3-8 commercials vehicles on the road in the U.S. and Canada.

That includes applications for widely-known domestic and import makes and models such as International, Peterbilt, Kenworth, Mack, Ford, Nissan, Volvo, Mitsubishi, and more.

Bosch Direct Connect wiper blades are available in 13- to 26-in. lengths. Bosch Evolution ‘beam’ wiper blades for driver as well as passenger sides range from 16 to 26 in.

Along with this introduction comes the comprehensive new 2014 Heavy Duty Wiper Blades Catalog.

Bosch is no stranger to wiper blades, having supplied both blades and whole systems to original equipment manufacturers and the independent aftermarket for more than 80 years now. www.todaystrucking.com

Auto-hauler tyre BRIDGESTONE says its new M749 drive tyre is the first it’s designed specifically for long- and regional-haul car carriers.

The M749 comes in a new size unique to the Bridgestone lineup, 295/60R22.5. The company says it’s built to withstand the carrying capacity demands of the auto-haul segment while also maintaining high sustained speeds on long highway stretches.

Other features of the M749 include: patented WavedBelt design to minimize belt stress at the edges, preserve casing durability, and reduce casing growth; tie bars to control movement of the shoulder tread block for low rolling resistance and long, even wear; multiple cross-rib sipes to improve traction by slicing through water for a solid grip on wet roads; and flexible groove-fence partitions in the tire groove to dampen noise production. www.todaystrucking.com

Auto-hauler tyre HANSEN INTERNATIONAL has announced its new ribbed and backlit grab handle built for the utility, trailer, and heavy-truck markets. Made of solid formed-aluminum, the handle is ribbed to assure a better grasp. It also provides bright LED lighting for additional safety This patent-pending grab handle is available in standard lengths of 14, 18, 24, and 30 in. www.todaystrucking.com

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ISSUE 22 VOL. 4

Save Millions in Fuel Costs!

Do the Math...

If 1 vehicle is siphoned 20 litres only, in a day, at Kshs 100 per litre... How much do you lose per year? Multiply with your number of vehicles.

20 x 100 x 25 x 12 x 1 = Litres

Kshs

Days

Months

Vehicle

Kshs 600,000!

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Mombasa Kisumu Meru Eldoret Embu Nakuru ISSUE 22 VOL. 4

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