Borders

Bordering on SMART

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

The 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 effi ciently. “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, fi nancing and other operational expenses,” he explains.

LE FRENCH SMART BORDER

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 offi cials with customs documents containing a barcode, which the agents can scan and forward, along with the truck’s registration number, to offi cials 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 fl ow – 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 signifi cant 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.”

Dyodo says that the advantages of SMART borders include: • Simplifi ed, 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 effi ciency, which improves productivity. • The deployment of effective systems and business processes that reduce risks associated with cross-border movements. • Improved internal controls, risk identifi cation and mitigation strategies by and between border management stakeholders. • Improved coordination and transparency, and reduction of human intervention in the cross-border value chain.

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 movement of people Zane Cleophas and goods, as a solution is made up by people, technology and processes.”

SMART border systems for ports of entry can defi nitely assist with an overburdened environment, but they need clearly defi ned 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 fi rst 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

EFFICIENCY IS EVERYTHING

Effi ciency is the single most important factor in achieving operational success for suppliers of material handling and industrial equipment. “One of the greatest challenges in our industry is equipment fl ow,” says Chantell Malherbe. “By adopting a logistics management system – in our case, the Toyota Lean Logistics Management system – the fl ow of equipment can be streamlined from 60-plus days to a maximum of 21 days.

PAPERLESS PROCESSES

Introducing paperless processes in the business helps to streamline operations. This allows everything to be driven via apps – from Capex approval and human capital appointments to procurement. Requests can be uploaded to the apps and run by the executive team for approval.

The apps can also be used in conjunction with a business information (BI) tool to generate statistics and information, which can be stored in the cloud, allowing for easier, more accurate audits and more informed decision-making.

“Choosing the paperless route means reducing the number of fi les and documents of the past, cutting down on printing and saving time – all important considerations in a world where we need to be spending less time in the offi ce and more time with our customers to help their businesses become more effi cient,” adds Malherbe.

Chantell Malherbe

IN PURSUIT OF OPERATIONAL SUCCESS

Chantell Malherbe, operations director for EIE Group, identifi es several trends that players in the material handling and industrial equipment industry should consider embracing if they want to remain relevant in an increasingly competitive 21st century

CUSTOMER CARE

The longer it takes to get equipment from the port (with its shipping and customs delays) to the distribution facility for the predelivery inspection, the longer and more frustrating the wait for the customer.

“The focus on customers should never wane. When customers need new machines, they don’t want to wait several months for a new machine to be delivered,” says Malherbe.

RELIABLE EQUIPMENT

Effi cient warehouses are hubs of high productivity. “The reliability of equipment plays a critical role in ensuring effi ciencies in these types of operations. Good material handling equipment allows the user to move more stock around faster and with a greater degree of accuracy,” Malherbe explains.“

Choosing to partner with suppliers who manufacture state-of-the-art and reliable equipment means less risk of downtime and greater safety for our customers. It also means less risk for us because we know we have supplied a quality product that will operate optimally, ensure the safety of users and require less maintenance,” she adds.

DIGITAL TRANSFORMATION

The introduction of apps to help manage administrative tasks and enable customers to book services or report breakdowns, as well as BI tools to optimise data, are some of the ways material handling and industrial equipment can innovate.

Malherbe says another way is by introducing bespoke fl eet management systems. “All of our forklifts are equipped with Toyota’s patented I-site Fleet Management System, which enables fl eet managers to optimise overall productivity by monitoring parameters such as truck performance, truck and driver utilisation and battery status.

“Other features include pre-operational checks, which ensure the truck is reliable and safe to use. Notably, fl eet managers have access to the Toyota I-Site from anywhere, via a mobile app and web portal.”

ENHANCE OFFERINGS

Providing clients with a one-stop shop for material handling and industrial equipment means they don’t have to look to several different providers to meet their needs.

Malherbe says EIE Group’s acquisition of Uni-Cape Equipment allows the business to bolster its offerings with cranes, lifts, docking equipment and pallet trucks in the Western Cape. “We are no longer merely a forklift supplier, we are becoming warehousing and logistics specialists in the industrial space too.”

EMBRACE INNOVATION

Today, most operators in the industry have introduced lithium-ion batteries, which are rechargeable and offer better power effi ciency. “However, other possibilities such as solar battery charging and hydrogen fuel engines are being explored. These are important developments to follow as operations around the world focus on reducing their carbon footprints. Toyota SA and Sasol have collaborated to establish a hydrogen mobility corridor as hydrogen fuel cell vehicles gain traction globally,” adds Malherbe.

THE RIGHT PEOPLE

An operation’s success is underpinned by a dedicated and focused workforce. “In our industry, teamwork, strong leadership and an engaged workforce are key to operational success. When everyone focuses on the same vision, everything else follows,” Malherbe concludes.

For more information:

011 395 0600 info@eiegroup.co.za www.eiegroup.co.za