Sunday Times Freight Logistics & Warehousing 2021 (May 2021)

Page 53

Bordering on SMART

South Africa’s current border post infrastructure is under growing pressure to get smart. THANDO PATO speaks to the various stakeholders

T

he current infrastructure and processing procedures at South Africa’s land borders are resulting in higher freight costs says Gavin Kelly, CEO of the Road Freight Association. Kelly says the biggest challenge the industry faces is the inability to move goods seamlessly and efficiently. “This results in the costs of transport being higher than they should be because the delays and processes need to be included into the trip to ensure the transporter can cover all the costs. “This can be up to R5 000 a day when factoring wages, parking, financing and other operational expenses,” he explains.

LE FRENCH SMART BORDER

IMAGES: SUPPLIED

IMAGES: SUPPLIED

BORDERS

With Brexit completed, the French government has plans to introduce a smart border between the UK and France by 2022. Currently, 10 000 trucks move between the UK and France daily. The new SMART border was devised to keep goods moving smoothly along the world’s busiest shipping route. Trucks leaving the UK will present customs officials with customs documents containing a barcode, which the agents can scan and forward, along with the truck’s registration number, to officials on the other side of the channel. The barcode will allow French authorities to identify the truck’s contents and quickly determine, before the driver arrives in France, whether or not the vehicle needs to be inspected upon arrival. France is estimated to be spending R684-million and hiring 700 extra customs, immigration and veterinary staff to staff the border. Source: www.thelocal.fr

• Sibulele Dyodo

Kelly says delays and procedures that need to be factored in include the waiting time around customs, immigration, cargo health requirements, anti-smuggling activities, theft control, possible security issues relating to protests or unrest, COVID-19 procedures and, of course, corruption by some of the authorities who make processes inconsistent.

What is a SMART border? “The concept of Secure, Measurable, Automated, Risk Management-based and Technology-driven (SMART) borders holds the promise to transform border environments, and unlock regional and intra-Africa trade flow – particularly for landlocked countries reliant on cross-border road transport for trade and access to international markets,” says Sibulele Dyodo, executive manager of stakeholder engagements at the Cross-Border Road Transport Agency. “This is one intervention which will have a significant contribution towards the achievement of the objectives of the African Continental Free Trade Area, the Tripartite Free Trade Area and many regional trade and transport related protocols, agreements and memoranda of understanding.”

No silver bullet Areta Holdings CEO Zane Cleophas is cautious about the introduction of SMART borders. “There is no silver bullet when it comes to cross-border Zane movement of people Cleophas and goods, as a solution is made up by people, technology and processes.” SMART border systems for ports of entry can definitely assist with an overburdened environment, but they need clearly defined processes supported by the correct physical infrastructure and a trained staff complement, he says. “The only way to attain this ideal end state would be collaboration between government and the private sector, especially the defence industry as first consideration, as both the expertise and technology exist within their realm.”

“The concept of SMART borders holds the promise to transform border ENVIRONMENTS, AND unlock regional and intra-Africa trade flow.” – Sibulele Dyodo 51

Freight_Borders.indd 51

Dyodo says that the advantages of SMART borders include: Simplified, standardised and harmonised border procedures that bring predictability to traders and transport operators. Ultimately, this will reduce transit time and eliminate delays and congestion. Optimising technology and big data to improve effectiveness and efficiency, which improves productivity. The deployment of effective systems and business processes that reduce risks associated with cross-border movements. Improved internal controls, risk identification and mitigation strategies by and between border management stakeholders. Improved coordination and transparency, and reduction of human intervention in the cross-border value chain.

F R E I G H T, L O G I S T I C S & W A R E H O U S I N G

2021/05/20 10:13 AM


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