18 minute read
Safety and security
Warehouse security needs to be updated to counter increasingly sophisticated syndicates.
safe as warehouses?
Logistics companies need to adapt to increased warehouse thefts, as DALE HES discovers
Recent research by transport and logistics insurer TT Club and business standards company BSI found a signifi cant shift in the risks posed to logistics companies in 2020. While theft of in-transit cargo is still the biggest threat to businesses, the research showed a decrease in this sort of crime.
Instead, due to stockpiling of goods and restriction of movement, there has been a concomitant increase in theft from storage facilities such as warehouses, which are now targets of highly sophisticated criminal syndicates. The BSI and TT Club Cargo Theft Report 2021 found that, globally, theft from facilities doubled in 2020 compared to 2019, making up 24 per cent of all cargo theft. This trend has forced logistics and warehousing companies to increase their levels of security. “Crime syndicates have become increasingly sophisticated and we’ve seen a lot more in-warehouse incidents in the sector, which means that the industry has to keep adapting,” says Bridgewater Logistics general manager Richard Venter. Venter says that syndicates target IT systems, plant informants within businesses and even use “military-grade jamming systems”, which shut down companies’ communication systems. “This means that we constantly need to upgrade our systems and procedures. Over and above strong security systems including cameras, secure IT systems, facial recognition software, alarms and anti-jamming systems, staff training is very important. They are our eyes and ears on the ground,” Venter explains.
Warehouse security systems need to incorporate highly secure IT systems.
CRITICAL EMPLOYEE CHECKS
The following should be probed when vetting new employees, says Bridgewater Logistics general manager Richard Venter: • Past employment history going back 10 or 15 years. Research into why an employee left a company or whether they were engaged in any bad behaviour. • A full criminal history check on any prospective employee. • For large and long-established companies, a check should be done on whether the company is rehiring a previous staff member, establishing the reasons for originally leaving the company.
bridgewater is affiliated to the transport asset Protection association (taPa), which provides certifications to help protect against theft at warehouses and distribution centres. “We are a level a certified facility and have invested hundreds of thousands of rands in state-of-the-art equipment to protect clients’ assets in our control,” says Venter. “being certified by taPa also means that we have to follow very strict standards and procedures. if any of the stipulated procedures are not followed, then an alarm will immediately go off. this helps to keep our security protocols extremely well managed.”
a layered approach
supply chain Junction founder michael badwi says that a multi-pronged, layered security approach – whereby security is implemented at all levels of the organisation – is essential to prevent theft. “there’s no single, simple solution to prevent warehouse theft. it takes a combination of strong processes, security systems, warehouse management software and excellent hiring criteria to reduce theft in your business.” badwi adds that the best way to identify theft in the first place is to conduct regular stock takes. “the more accurate your inventory data, the faster you’ll pick up on theft. Without regular stock takes, you may not even notice that inventory levels are shrinking until months down the line – by which time you’ll be haemorrhaging cash.” small inventory shrinkage is normal within certain limits due to stock being destroyed, damaged, expired or recalled, says badwi. although it’s very difficult to prove that someone is guilty of warehouse theft without catching the person red-handed, there are several warning signs. “if your stock levels don’t match your sales records, sales seem to dip when
In-transit cargo remains the biggest target for theft.
particular staff members are on duty, there are staff rumours that theft is taking place, invoices are missing or stock is constantly found near exits or loading bays, then these could all be possible indications of theft.”
airport cargo security
Recent incidents of personal protective equipment theft at OR Tambo have highlighted the security concerns around our airports, writes
Puseletso MoMPei
The transported asset Protection association has warned that the transportation of coViD-19 PPe, and vaccines in particular, presents the “biggest security challenge for a generation” in supply chains. the south african civil aviation authority’s spokesperson kabelo Ledwaba says freight security is a shared responsibility. “cargo operators wishing to participate in the secure supply chain have to apply to the south african civil aviation authority for approval as regulated agents.” one of the requirements is to develop a security manual detailing the security measures they plan to implement in terms of the protection of cargo. With regard to those agents at the airport, this is a shared responsibility between airlines, the regulated agents and the airport.
tt cLub anD bsi screen (Fight crime in south aFrican suPPLy chains)
targeting of virus-related cargo
according to cargonet, there was a 300 per cent increase in cargo theft in april 2020, compared to 2019 figures. an incident at or tambo made headlines in July 2020 when the south african Police services arrested seven suspects following a shoot-out after criminals tried to make off with scores of PPe.
Ledwaba says there are formal structures at the airport for the coordination of security responsibilities between the airport and government departments and agencies as well as other stakeholder representatives. “airlines, ground-handling companies and law-enforcement agencies collaborate extensively with airport managers.”
Highway Junction Truck Stop, Harrismith
Making truck stops safe and secure
Truck stops are an essential part of maintaining driver safety, but in South Africa they often present risks, says PUSELETSO MOMPEI
There is only a handful of proper truck stops in South Africa that provide adequate security. That’s according to Ben Deysel, chief executive of Highway Junction Truck Stop, who says security controls, dog handlers, armed response, serious fencing and entry/exit controls are not a given everywhere. “Over and above the security, these select stops provide diesel for refuelling at marginal tariffs, and provide an accredited retail shop such as an OK Express, where high-quality food is prepared and served in proper restaurants.” More common across the country are the so-called truck-stops as provided by the oil companies at general public retail sites. According to Deysel, in these locations there is no security, no safety standards, no control on access or exit, nor is there any control over the drivers with passengers entering to stop, eat, perhaps refuel, but mainly “rest”.
“These sites cannot be recognised as truck stops as they primarily provide fuel and food to the public in general and are earning serious money under the protection of the Regulatory Accounting System model, which regulates the retail industry, but not the truck stops,” says Deysel.
A problematic model
Most truck stops only earn income from parking fees, which is not viable nor sustainable. Deysel says the only major truck stop that provides all the necessary security and safety components is found on the intersection of the N3 and the N5, in the industrial area of Harrismith.
“This facility is accredited by the trucking industry as well as recognised as one of the three largest truck stops in the world, and certainly by far the biggest and safest in Africa,” he explains.
Ben The main obstacle in the Deysel way of developing more proper truck stops is the fact that they’re regarded as retail sites by the Department of Energy but not recognised nor regulated similarly to the general retail sites. Deysel says the main high-risk areas are near all toll gates, where vehicles park illegally. These areas are notorious for the hijacking and theft of cargo from these trucks. “If the government is serious about road safety, then they should regulate the industry to enforce strict compliance to public safety by keeping trucks out of town centres.”
“The main high-risk areas are near all toll gates where vehicles park ILLEGALY.” – Ben Deysel
Danger Zone
The transportation of dangerous goods remains a highly specialised field that should only be taken up by committed operators, says Trevor CrighTon
“A ll dangerous goods pose significant danger to people, property or the environment - and all need to be treated with extreme caution,” says Geoffrey Barlow, MD of DGM South Africa, which specialises in transporting dangerous goods.
Barlow says they are classified into three levels of packing groups. “Packing Group I materials presenting the highest level of danger.”
The National Road Traffic Act lays out strict conditions for the transportation and handling of such freight described as “any substances which may cause injury, ill health or death of a human by reason of their toxic, corrosive, irritants, strongly sensitising or flammable nature, are considered flammable goods”.
Barlow says that these goods can range from household products like aerosols, detergents and pool chemicals to laboratory chemicals and automotive parts such as airbags and batteries.
Pre-trip check before delivery of hazardous tanks to client
CLASSIFYING DANGEROUS GOODS
Dangerous goods are classified in nine classes listed in SANS 10228. Some of the categories are further subdivided based on their properties or risks that they present. Each category is clearly defined by different risk hazard diamonds for easy visual recognition.
Classification of dangerous goods according to the type of dangerous materials or items present: 1. Explosives 2. Gases 3. Flammable liquids 4. Flammable solids 5. Oxidizing substances 6. Toxic and infectious substances 7. Radioactive material 8. Corrosives 9. Miscellaneous dangerous goods
Source: Arrive Alive
An ever-changing landscape
Regan Moodley, MD of freight mover Shipping & General, says keeping abreast with ever-changing regulations around the transportation of dangerous goods is “complicated”.
“Ensuring complete compliance and training is critical to an organisation’s ability to maintain a smooth, incident-free dangerous goods supply chain,” Moodley says. “Road transportation of dangerous goods on South African roads over the past decade has not been without incident. Many innocent lives are lost on our roads annually, which can largely be attributed to non-compliance and inadequate training.”
Barlow says that there is a huge amount of importing and exporting of hazardous material from South Africa. “In our position in the export logistics chain, we see a large amount of these items including paints, solvents and raw product for manufacturing, and in the last year, a large amount of hand and surface sanitisers.”
Safety tips
Aside from ensuring emergency preparedness and having a documented response plan at all times, Moodley’s tips for running a successful road transport operation that deals with dangerous goods are: • Ensure that staff at each node are trained and are part of regular refresher courses. • Always ensure that your road transporter carries sufficient goods in transit cover, public liability and, in the case of a dangerous goods transporter, a suitable environmental spillage cover. • Ensure your vehicles are suitably placarded and have all mandatory equipment.
Should your commodities be flammable, it is essential to obtain a fire permit from your local fire department, which must be displayed. The vehicle and trailer must be appropriately licensed as a category D, as should the driver. • In cases where multiple loads are transported, which are essentially various IMCO classes and UN numbers loaded on the same truck, it is critically important that load planners ensure that thorough compatibility screen checks are conducted prior to loading.
KNOW YOUR NUMBERS
The orange signs with numbers affixed to trucks are there to indicate that dangerous goods are being transported. Each of these four-digit UN Numbers – assigned by the United Nations Committee of Experts on the Transport of Dangerous Goods – refers to a list of instructions contained in resources such as the Emergency Response Guidebook of Southern Africa. There are more than 3 500 substances with UN numbers.
Source: Arrive Alive
LOCAL TRANSPORTER HOLDS STEADY
Amid the global impact of the coronavirus, Shipping & General Transport is on course to expand its offering and create opportunity for growth
The past year and a half proved to be more than challenging as logistics companies worldwide fought to hold steady amid the chaos caused by COVID-19. When the world went into lockdown, ports closed, movement was severely restricted and the exchange of goods across the world came to an abrupt halt. The transport industry was at the frontline of what can only be described as a logistical tsunami moving through the world. It took the fi rst impact before the effects reverberated through all other sectors.
Now, almost 18 months after China faced the fi rst wave, a South African transporter is defying the odds and has set course for expansion and innovation. Shipping & General Transport (SGT) has acquired a training and conference centre and 75 000m2 of adjacent land from JSE-listed Imperial Logistics. Regan Moodley, SGT’s managing director, was quick to recognise the facility’s potential when Imperial Logistics made it known that it was keen to open the way for smaller logistics companies by making a portion of its property available for purchase.
This opportunity aligns with the vision that the success of a company is based on its clients’ success, which, ultimately, leads to the success of Africa – this is a sentiment that both SGT and Imperial Logistics value.
THE HOME OF TRAINING AND CUSTOMER SERVICE
The 8 000m2 property, along with 75 000m2 of land, situated in the heart of Rand Refi nery’s’ landmark precinct, east of Johannesburg, cost SGT R26.5-million.
The purchase enables Moodley to steer the company towards fulfi lling two aspirations: offer quality training to upskill the company’s workforce and develop the adjacent land for the company’s growing depot operations.
The training centre, originally designed and built by Imperial Logistics, is one of a kind. The beautifully fi nished building is a jewel in the rugged landscape of transport businesses, emitting a feeling of peace and tranquillity. It will be an environment where SGT staff and trainees can tackle and learn the complexities of the transport business.
Just outside the centre, trainees will be exposed to one of the crucial steps in transport operations: SGT’s container depot operations. The company has already expanded its transport services to depot operations at its current location, but now, with the acquisition of the new land, it can respond to shipping lines that are increasingly showing interest in SGT’s depot operations.
A tastefully fi nished client welcome centre.
Reception area.
The purchase enables Moodley to steer the company towards fulfilling two aspirations: offer quality training to upskill SGT’s workforce and develop the adjacent land for the company’s growing depot operations.
Perfectly located with access to all arterial routes, Regan says: “We built our reputation on understanding our clients and honouring their work by providing a great service. Acquiring this property allows SGT to elevate that service by expanding our customs depot and our empty container facility. I am excited to be able to meet the needs of SGT’s clients so that their businesses can move forward too.” Regan’s plans include relocating the fi nance and marketing departments to the new facility, which will also serve as a client welcome centre. Even though the tide may not have turned in the greater context of worldwide logistics Regan Moodley since the beginning of the pandemic, SGT has shown its ability to hold steady, read the wind, and know when to set sail for the horizon.
In a time when the world’s transport sector seems shrouded in a veil of bleakness, SGT is a reminder that when passion meets innovation, there is the hope of a new dawn.
A fully equipped catering facility.
There are several executive boardrooms.
For more information:
011-873 4786/7/9 reganm@shippingandgeneral.co.za www.shippingandgeneral.co.za
PROTECTING HIGH-VALUE CARGO
Top tips for protecting valuable cargo in transit, from industry leaders Shipping & General Transport
In spite of COViD-19 lockdowns restricting the movement of people and vehicles for much of last year, around R2.95-billion of losses were incurred through product thefts from road, air, rail and sea freight supply chains in 46 countries in the emea region in 2020, according to the Transported Asset Protection Association’s Cargo Theft Annual Report.
Research by TT Club and Bsi revealed that although the lockdown restrictions caused cargo theft locations to diversify in the first half of last year, in-transit theft returned to pre-COViD-19 levels by the end of the year. industry gurus across all modes of transportation predict a continued increase in cargo theft as syndicates become more sophisticated in their operations. shipping & general Transport mD Regan moodley says that historically cargo thieves targeted freight such as electronics, apparel, pharmaceuticals, and other obvious high-value items. “Recently, however, truckloads of personal protective equipment and consumer packaged goods have been targeted and stolen while in transit. While these items may have not been obvious high-risk items some 18 months ago, the impact of the pandemic has increased the need for these products – as well as the risk for their theft.”
HOW TO REDUCE RISK
moodley says that to minimise disruption in the supply chain, transport operators must implement and monitor best practices at all times. “Bear in mind that there is no one-size-fits-all solution when it comes to protecting high-value loads. There are also absolutely no guarantees. at some point, your organisation or your road transporter will be targeted by organised syndicates or opportunists.”
With that in mind, moodley outlines several practical steps that one can take to reduce risks on south africa’s road network. 1. make sure that, first and foremost, you partner with a reputable company that has the resources, expertise and experience to move high-value cargo. 2. Constantly train your staff, and insist that your road transporters train and create ongoing awareness campaigns around how to react should they ever be in a compromised position. in the case of the latter, transport operators should conduct soft hijack simulation exercises, monitoring how swiftly and effectively their control rooms are notified of the distress alert signal and how fluid they are in handling the distress call. No life is worth any amount of cargo being transported, so continuous training and a culture of absolute vigilance along all supply chain touch points are key to successful loss and risk mitigation. 3. in difficult economic times, particularly as we navigate the pandemic, companies will seek to reduce transportation costs by cutting corners moodley urges companies to refrain from doing this. 4. High-end syndicates are known to deploy their own kind – and what may appear at first to be a committed, hard-working addition to your organisation may be an insider. it is, therefore, important always to ensure strict adherence to detail when vetting personnel who deal with high-value cargo. Vetting staff using merely their referrals on a CV is irresponsible and could be hugely detrimental to your business. 5. always ensure that you procure adequate insurance and that it is updated to include your specific requirements. inclusions and exclusions that are specifically noted on a policy schedule ensure clarity and eliminate misunderstandings in the case of a claim. always insist that your road transporters have reasonable first loss, all-risks goods in transit cover that adequately covers driver infidelity. You will realise the value of this in that your insurance portfolio loss ratios as a cargo owner will be somewhat reduced in the case of successful subrogation recovery. 6. Utilise technology, and collaborate with shippers, carriers, law enforcement and various forums that deal with organised crime trends and incidents in the lanes that you service. Keep your ear to the ground and share information.
“There is no one-size-fits-all solution when it comes to protecting high-value loads.At some point, your organisation or your road transporter will be targeted by organised syndicates or opportunists.” – Regan Moodley
PARTNER UP FOR SAFETY
moodley believes that you need a solutions-obsessed partner that is always one step ahead of the curve. “shipping & general’s multilayered approach ensures the safety of your high-value and high-risk shipments. Our portfolio of services is based on and considers a variety of factors, including your risk tolerance, commodities and the markets that you serve.” shipping & general offers comprehensive, customised containerised road transport solutions to local and international clearing and forwarding agencies, shipping lines, importers and exporters, with road transportation and warehousing services offered between various important seaside ports to inland Johannesburg and surrounding destinations.
For more information:
011-8734786/7/9 www.shippingandgeneral.co.za
