focus march 2015
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FOCUS on Transport and Logistics is the only magazine that is truly part of the industry. It features key themes within the transport industry, with viewpoints form experts in various fields. Pertinent issues are also covered throughout the year, from changes in labour legislation and cross-border policy to fleet optimisation through logistics, warehousing and distribution. Operational issues such as vehicle security, tyre maintenance and fleet management are also covered regularly. If there’s a story to be told, you can guarantee FOCUS will publish it first! So be in the know and focus on some transport.TRANSCRIPT
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On TranspOrT and LOgisTicsfocusontransport.co.za
Fixing Africa’s borders a group effort
Coping with congestion in Cape Town
No getting away from the skills shortage?
Global Focus turns 100!
Using the sUn to bUild yoUr
Man
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JOIN THE JOURNEY | www.redisa.org.za | /wasteintoworth | @wasteintoworth
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For a look at our latest achievements, statistics and positive stories worth celebrating, please visit our website.
Megan – Transporter, PE
Midrand Depot
Vissershok Depot
Vissershok Depot
Johanna – Depot Manager, Mossel Bay
Pieter – Recycler, PTA
Durban Depot
Midrand Depot Johanna – Depot Manager, Mossel Bay Midrand Depot
Megan – Transporter, PE
Midrand Depot Pieter – Recycler, PTA
Vissershok Depot
Vissershok Depot
Johanna – Depot Manager, Mossel Bay Johanna Baleng – Depot Manager, Mossel Bay
Midrand DepotMidrand Depot
Megan – Transporter, PEMegan – Transporter, PE
Vissershok DepotDurban DepotWendell Harts – National Depot
Pieter – Recycler, PTA
Pieter Buckle – Recycler, PTA
Midrand DepotMidrand Depot
Vissershok Depot
40877-REDISA AD RESIZE.indd 1 2015/03/06 4:47 PM
March 2015 |FOCUS| 3
cOnTenTs
Follow us facebook.com/focus_mag twitter @FOCUSmagSA
2014
On TranspOrT and LOgisTics
MAN has been assembling trucks and buses at its Pinetown Assembly Plant since 1962. Today the plant is 100-percent carbon neutral. Find out how the company has achieved this on page 10.
COveR
Published monthly by Charmont GlobalUnit 17, Northcliff Office Park, 203 Beyers Naude Drive,
Northcliff, 2195. P O Box 957, Fontainebleau, 2032, South AfricaTel: 011 782 1070 Fax: 011 782 1073 /0360
eDITORCharleen Clarke
Cell: 083 601 0568email: [email protected]
ASSISTAnT eDITORGavin Myers
Cell: 072 877 1605 email: [email protected]
SUB-eDITORJeanette Lamont
Cell: 083 447 3616email: [email protected]
JOURnALISTSJaco de Klerk
Cell: 079 781 6479email: [email protected]
Claire RenckenCell: 082 559 8417
email: [email protected]
InDUSTRY CORReSPOnDenTFrank Beeton
Tel: 011 483 1421Cell: 082 602 1004
email: [email protected]
TeCHnICAL CORReSPOnDenTVic Oliver
Cell: 083 267 8437email: [email protected]
PUBLISHeRTina Monteiro
Cell: 082 568 3181email: [email protected]
ADveRTISInG SALeSMargaret PhillipsonCell: 083 263 0451
email: [email protected]
Megan du ToitCell: 060 503 3092
email: [email protected]
CIRCULATIOn MAnAGeRBev Rogers
Cell: 078 230 5063email: [email protected]
DeSIGn AnD LAYOUTNelio da Silva
email: [email protected]
PRInTInGCamera Press
© Copyright. No articles or photographs may be reproduced, in whole or in part, without specific written permission from
the editor.
4 Steering Column 6 Wheel Nut 8 Vic’s View46 Global Focus52 Short Hauls56 Subscription form58 Naamsa figures59 FOCUS on Bus and Coach62 Global bus64 Hopping off
ReGULARS
24 BURnInG BORDeRS?
Road transport within Africa is no doubt a risky business. With wasted time, incidents of
corruption and lost loads and vehicles, it’s expensive, too. One of the ways we can begin
fighting this is to sort out the situation at the continent’s many borders. How can this be
achieved?
34 WAnTeD: MORe SKILLeD PeRSOnneL
Skills shortages continue to bedevil the logistics and supply chain industry. MARIO
LANDMAN, head of the Institute of Logistics and Supply Chain Management, elaborates.
42 THe THRILLS AnD SPILLS OF DAKAR 2015
GIANENRICO GRIFFINI brings us an exclusive interview with Ayrat Mardeev of the Kamaz
Master Team – winners of Dakar 2015.
44 BUSIneSS AnD PLeASURe
Chinese Manufacturer Great Wall Motors (GWM) is set to create a stir in the much-loved
South African bakkie segment with the new Steed 5E. We take it for a spin.
60 CHAnGInG TIMeS
With increased congestion levels and heightened commuter needs, Cape Town is
certainly in the transport spotlight. We speak to one of the city’s most prominent
operators, to see how it is handling the scenario.
MARCH
c h a r m o n tm e d i a g l o b a l
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I know what you’re thinking: the population
of New Zealand – at 4,5 million – is far lower.
Spot on right. We have 53 million people
living here. So, multiply the New Zealand
death toll by 11,7 … and we still shouldn’t be
killing more than 199 people. Our situation is
totally unacceptable!
Hot on the heels of the e-mail from
New Zealand came another one from the
United Kingdom, which also got me thinking.
The United Kingdom is home to around 64
million people. The Department of Transport
over there recently released its annual road
safety statistics … and there were 1 711
deaths in the year ending September 2014,
a four percent increase compared with the
previous year.
The e-mail came from the Institute of
Advanced Motorists (IAM), which described
the figures as “hugely disappointing”. The
charity blames many years of government
cutbacks and the resulting drop in visible
policing for the increase in figures.
“It is disappointing that, after many years
of solid falls in the numbers of people killed
and injured on our roads, the government has
taken its eye off the ball. These figures reflect
our view that cuts in visible policing and road
safety spending has had an impact, with a
third successive quarter of increases. While
these new figures can in no way be regarded
as a trend, they are a big concern,” noted Neil
Greig, IAM director of policy and research.
“Recent transport ministers have been
lucky. The recession had slowed traffic
growth. New car technology has delivered
safer roads year on year, and most accident
black spots have now been engineered out of
existence,” he added.
Neil stressed that a change in driver
attitude had to happen. “This is an opportunity
for us to prove the key underlying part that
driver skills and behaviour play in road safety.
Most crashes are caused by human error,
i recently received a somewhat
fascinating e-mail from New Zealand.
It came from John de Pont, president
of the International Forum for Road
Transport Technology. He was commenting
on the road fatalities in that country over the
2014 festive season.
A total of 17 people were killed in that
country over the Christmas season – and
he was aghast, because it was more than
double that of the previous year (when seven
people died). “Something is going badly wrong
with road safety,” he reported.
The e-mail really got me thinking. Compare
these figures to South Africa. A total of
1 368 people were killed here over the same
period last year. I think we should be aghast
too, but I’m not seeing too many aghast
people running around and fixing this sorry
situation.
and technology can only deliver so much. If
we don’t change policy we will still be killing
1 000 people a year in 2030 – that is
unacceptable. Driver behaviour, skills and
training will be the key focus for our future
research and policy work.”
It was the annual figure of 1 000 that
really hit home. We kill more than 1 000 a
month. And that’s a slow month … |FOCUS
This country’s claims to fame
are somewhat alarming. We
seem to have mastered the art
of destroying our country and its
people …
STeeRInGCOLUMn
And so
continUes …The kiLLing
DOWnLOAD OUR FAB neW APP!
FOCUS has an utterly marvellous,
truly brilliant, mind-blowingly terrific
new app! (Yes, you get it, I am rather
proud of it.) It is ever so easy to
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We have received stunning
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it! E-mail charleen@
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Charleen Clarke
March 2015 |FOCUS| 5
STeeRInGCOLUMn
The kiLLing
Filename 113942 Scania SA You're Not Buying This_Truck Ad v7
www.rla.co.ukSize (hxw) 297x210 Operator RobPage No. 1 Modified 19 December 2014 11:26 AM
What you’re buying is so much more than a truck. It’s a
commitment. A partnership.
A whole system designed and built around the working life
of a vehicle. Founded on the principle that Total Operating
Costs are more important than initial purchase costs.
Fuel, as we all know, is the big one. A significant part of the
Total Operating Cost over a truck’s lifetime. So it makes
more sense to buy an economical truck than a cheap one.
Which is why we make economical trucks. Not cheap ones.
Reliability is a huge deal as well. So you won’t be surprised
to hear that Scania trucks deliver the highest levels of
uptime in Southern Africa, and our wholly-owned dealer
network focuses all its energy on minimising downtime.
Driver capability is another big cost area, which our driver
training programmes are tailored to help you manage
and develop. The same goes for our finance and
insurance approach. We believe in understanding the
daily needs of your business, rather than just looking
at the risk.
Also our new Fleet Management System is the perfect
embodiment of our partnership attitude, giving you access
to amazing detail on everything from coasting to heavy
braking, and then the coaching support you need to help
manage not just your fleet, but your entire cost base.
So if you’re just buying trucks, we’re probably not the
supplier for you. But if you believe what you’re actually
buying is a partnership, a commitment, a total transport
solution, then we should talk.
There is a better way.
You’re not buying this.
6 |FOCUS| March 2015
WHeeLnUT
administrative procedure”, either. Unless, that is,
they work for everyone’s favourite bureaucratic
institution – the South African Revenue Service
(SARS).
So, why this little rant-cum-English-cum-
politics lesson? Regular readers will remember
my December column, in which I detailed the
demise of my three personal vehicles. Well, I
bought a new one at the beginning of this year –
which resulted in one of the most stressful two
weeks I’ve had in a long time.
“Mr Myers, we can’t get the vehicle
registered in your name, because of outstanding
vehicle licence fees.” Well, that was a shock –
with one car traded in, one sold and the last
written off, how could this be?
It turned out that the chap who bought
the one I sold had not filled in the change of
ownership papers and registered it in his name
(important lesson there for prospective sellers –
always make sure that YOU do this).
A week-long scramble ensued to get
everything sorted out, only to be told that I
couldn’t do much because the car that had
been written off, three months earlier, had
not yet been deregistered from my name by
the insurance company (which had long since
received the original licence certificate).
Four visits to the bureaucrats at
Johannesburg’s Marlborough and Sandton
licensing departments (who each kindly filled
in the pieces of information that the other
had neglected to mention …) and many a
call through the various bureaucratic levels of
my insurance company later, and I was well
and truly stuck … The morning my 21-day
temporary permit was to expire arrived, and I
had got nowhere.
In a desperate bid to get my new steed
“road legal” I begrudgingly paid the outstanding
amounts and the penalty fees, and now sit with
two gleaming licence disks for two vehicles
I no longer own … Phase two of my battle
commences.
Bureaucracy: great by definition, but a
real pain for the masses; especially when the
bureaucrats who drive it don’t do their jobs
properly. |FOCUS
Does anyone enjoy dealing with
government institutions or their
corporate brethren? I can’t
imagine so …
the perils of
bureaucracy
Gavin Myers
We’ve all watched some or
other TV show in which
someone in high office, or
a similar organisation, is
accused of being “a spineless bureaucrat” or “a
bureaucratic fool”.
But, what is a bureaucrat? Should we be
bureaucratic? Do we need bureaucracy? Here’s
a short English-cum-politics lesson …
By Wikipedia’s definition, a bureaucracy
was historically a government administration
managed by departments staffed with officials
who have not been elected. Today, bureaucracy
is the administrative system governing any large
institution. Likewise, a bureaucrat is defined as
an official who is rigidly devoted to the details of
administrative procedure.
The thing is, though, bureaucracies tend
to become too complex and then inefficient
or inflexible – hence the slurs directed
towards those poor chaps in the TV shows
… Unfortunately, that’s the nature of the
bureaucratic beast – it’s certainly nothing South
Africans are unused to.
Pick any vehicle licensing centre, for instance.
Heck, in the modern sense of the word, pick
a large non-governmental institution, like an
insurance company, and see if you have much
more luck … The bureaucrats themselves are
not exactly “rigidly devoted to the details of
MORe ROAD SAFeTY BILLBOARDSFollowing last month’s Wheel Nut – in
which I spoke about a Department of
Transport billboard that warns against
texting and driving – I noticed yet another
effort on Johannesburg’s Beyers Naude
drive, just down the road from our office.
Its message? “Thank you for not
drinking and driving – love Grandma &
Grandpa”.
As opposed to playing at one’s ego
(like the texting and driving message), this
one pulls at the (presumably younger)
motorist’s heart strings. Short of being
read by someone who has lost a loved
one to drinking and driving, I’m not so sure
of the effectiveness of the message …
Unfortunately, that blinding, consequence-
free “it’ll never happen to me” attitude is
seemingly set as the default within the
general South African driver’s psyche.
What do you think? Have you seen any
similar billboards around Johannesburg
(or the country)? We all have family,
friends and colleagues, not necessarily
involved in the transport industry, who
use our roads every day; so, do send us
pics and your comments about this road
safety campaign.
We know it takes a lot more than wheels and a chassis to keep things moving forward.
It takes a clear understanding of how your business operates. It takes expertly trained
people who care about providing the best advice and the best service possible.
Hino prides itself on delivering cost-effectiveness and operational effi ciency. It’s why
every Hino is built for your business.
– SO NO MATTER WHAT YOUR BUSINESS, YOU CAN KEEP ON TRUCKING.
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March 2015 |FOCUS| 7
We know it takes a lot more than wheels and a chassis to keep things moving forward.
It takes a clear understanding of how your business operates. It takes expertly trained
people who care about providing the best advice and the best service possible.
Hino prides itself on delivering cost-effectiveness and operational effi ciency. It’s why
every Hino is built for your business.
– SO NO MATTER WHAT YOUR BUSINESS, YOU CAN KEEP ON TRUCKING.
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8 |FOCUS| March 2015
vIC’SvIeW
With a sluggish world
economy, that is showing
no positive signs of
recovery in the short
term, truck and bus operators are facing
tough times and reduced operating profits.
Optimising the fuel consumption of your fleet
is one way to reduce operating costs and
increase fuel economy.
A small reduction in fuel consumption
results in a big financial saving in the fuel bill.
In addition to savings achieved by managing
your vehicles’ fuel consumption, other variable
operating costs will automatically also be
reduced – as optimum fuel consumption
cannot be achieved without driving the vehicle
in a proper, professional manner. The gain is
further reflected in reduced maintenance and
tyre costs.
Good driving techniques are one of the
main means of lowering the fuel consumption
of vehicles. It is important, therefore, to include
drivers in the management of fuel.
One of the best ways to motivate and
encourage drivers, to achieve good fuel
consumption results, is to give them an
incentive based on the savings achieved
against a set fuel consumption target.
To set a realistic and fair target, get the
average expected fuel consumption figure
from your vehicle supplier for your particular
vehicle. Then, measure the fuel consumption
that the vehicle is currently achieving by
running it on the normal route that it travels
and accurately record the consumption. On
this test run make sure that an independent
and honest person accompanies the driver to
ensure that the information is correct.
Now, set a realistic and achievable fuel
consumption target for your driver and offer
some reward based on the savings that are
made.
To assist drivers to obtain good fuel
consumption, make them aware of the
main driving style factors that affect fuel
consumption.
SPeeD
Travelling in excess of the current speed
limit drastically increases fuel usage of
trucks and buses. To illustrate the increase
in fuel consumption at higher speeds, the
following consumption figures for a 357 kW
(480 hp) truck tractor coupled to a set
of interlink trailers and carrying a load of
34 t, both ways, between Johannesburg
and Durban, were supplied courtesy of
TransSolve:
• At 80 km/h the fuel consumption would be
57,5 l/100 km
• At 100 km/h the fuel consumption would be
61,1 l/100 km.
exCeSSIve IDLInG Many vehicles that are used in a distribution
type of operation, where fleet management is
often not well controlled, idle for long periods.
This poor practice is bad for the engine, and
causes fuel wastage.
A poorly maintained brake system, where
air is lost via faulty brake valves, is sometimes
the reason that drivers do not switch off
their engines while stopping to offload. This is
because they know that on start-up they will
have to run the engine for a while to build up
air brake pressure again.
DRIvInG OUTSIDe THe GReen BAnD
Most trucks are fitted with a rev counter
that is marked with a green band, indicating
the most economical rev range. Driving
Even with the fuel prices trending downwards, there is still more that vehicle owners can do to reduce
fuel consumption and increase their profit margin
twelve tAnked-Up
Tips
March 2015 |FOCUS| 9
VIC’SVIEWvIC’SvIeW
within this green band produces the best
fuel consumption and helps the driver obtain
optimum performance from the engine.
SMOOTH DRIvInG Gentle acceleration and smooth driving is a
key factor in reducing fuel usage. Anticipation
of stopping distances and letting the truck roll
towards a stop avoids harsh brake applications
and also helps save fuel.
OveRLOADInG
Overloading is illegal and also increases fuel
consumption. Assist your drivers by teaching
them the correct load that their vehicle can
legally carry, and the importance of placing the
load in the correct position on the truck.
TYReS Underinflated tyres cause an increase in
rolling resistance, which, in turn, affects the
fuel consumption of the vehicle. As a rule of
thumb, a ten percent under-inflation in tyre
pressure results in a one percent increase in
fuel consumption.
POOR veHICLe MAInTenAnCe Poor vehicle maintenance is a major cause of
high fuel consumption.
TARPAULInS Loose and badly secured loads and tarpaulin
covers cause extra air resistance, which, in
turn, burns more fuel.
FUeL THeFT Fuel theft is taking place in many operations. In
those where fuel consumption is well monitored
it is very difficult for this to occur undetected.
AIR ReSISTAnCe
Air resistance is an important factor.
Endeavour to keep frontal areas of trailers
and bodies as small as possible.
CORReCT veHICLe SeLeCTIOn The truck must be correctly engineered, have
sufficient power and the right drivetrain to
ensure the best possible productivity and fuel
consumption.
ROUTe PLAnnInGPlan your route carefully to achieve optimum
vehicle productivity and fuel consumption.
With the high cost of operating trucks and
buses, in a highly competitive market, fuel costs
are one of the major costs incurred in the
running of your vehicle. In some long-distance
operations the cost of fuel exceeds other fixed
and variable costs. A good operator cannot
afford to neglect the management and control
of this important cost element. |FOCUS
One of this country’s most respected commercial vehicle industry authorities, VIC OLIVER has been in this industry for over 50 years. Before joining the FOCUS team, he spent 15 years with Nissan Diesel (now UD Trucks), 11 years with Busaf and seven years with International. Do you have a comment or thought you would like to share based on this column? Visit www.focusontransport.co.za and have your say!
Venue: Automechanika, Nasrec, JohannesburgTime: 10.30 for 11:00Price: R1 400 per person including lunch, or pay
R10 000 for a table for eightTRUCK TEST2015
ON TRANSPORT AND LOGISTICS
The potholed path to the future: how can transport operators survive?
New legislation is in place: how can transport operators avoid jail time?
Join the FOCUS Conference and Truck Test Lunch on
Friday, May 8, and get the answers to these questions!
We have a line-up of utterly exceptional speakers,
including: Riaz Haffejee, CEO of Sumitomo Rubber SA;
Paul Nordengen, Research Group Leader, Network
Asset Management Systems, CSIR Built Environment;
Adrian van Tonder, Senior Manager, RTMS and PBS,
Barloworld Transport; and Loan Sharp, economist,
Free Market Foundation (FMF).
10 |FOCUS| March 2015
COveRSTORY
any reputable company will tell
you that, to be taken seriously
and be able to offer consistent
levels of service and quality, all
aspects of the organisation must be aligned
to the same level of consciousness. This
is especially so, in these times of ultra-
competitive marketplaces and the raised
importance of safety, health, environmental
and quality (SHEQ) issues.
It’s for this reason that the MAN Truck &
Bus South Africa Pinetown Assembly Plant
has become the most recent of the company’s
global plants to take the lead and improve its
environmental situation. It is now 100-percent
energy independent and 100-percent CO2
neutral.
How has MAN managed such a feat with
the 53-year-old facility? It has been achieved by
installing photovoltaic (PV) solar panels.
Heiko Kayser, plant manager and
vice president of truck and bus chassis
production at MAN Truck & Bus SA, explains
the concept: “We are part of the MAN
worldwide production network, so we need
to align our processes to other plants and
follow worldwide standards. The PV solar
panels are part of our Green Production
initiative, to reduce energy consumption and
CO2 emissions.”
“One of the MAN Climate Strategy
objectives is to reduce the company’s
carbon footprint by 25 percent by 2020. The
successful implementation of the PV solar
project is a reflection of MAN’s commitment
to environmental responsibility,” adds Lynette
Kühn, quality assurance manager, MAN Truck
& Bus SA.
Kayser continues: “The different solutions
are tailored to the areas in which the plants
are located. In South Africa, for example,
there is a lot of wind and sun, so the PV solar
system is the most efficient for us.”
MAN decided on this system following a
feasibility study conducted in 2013, which
included a market analysis and business case.
The energy generated by the PV solar panels
is used to drive all production processes and
electrical equipment such as computers and
lights.
With current production volumes being
ten units on the single shift being run at the
moment (the plant’s installed capacity over
two shifts is 6 600 units per annum), there is
the guarantee of a surplus.
Kayser and Kühn explain: “We generate
810 000 kWh per annum, and our current
consumption is only 790 000 kWh. The PV
installation is an embedded installation –
linked to the grid – so anything we produce
over and above our needs is fed back into
the grid. The system prioritises the use of
the available renewable energy provided by
the PV system at all times; should additional
capacity be required, this energy will then be
drawn from the grid.”
While the PV installation might be the
biggest news at the moment, it’s not the
end of the environmentally friendly, quality-
focussed story from whence your locally built
MAN comes …
The building’s old asbestos roofing has
been removed and replaced with inverted box
rib (IBR) sheeting, which also incorporates
more transparent sheets to improve natural
light in the working environment resulting in
less energy usage for lighting.
A new wash bay has been built that
incorporates a water recycling facility to
reduce water consumption, and a new
worker-friendly finishing spray booth was
installed during December 2014, to ensure
controlled levels of paint emissions into the
atmosphere.
As Keiser is keen to point out, though, it’s
not all about impressive technical solutions.
“As management we try to lead by example,
educating staff and increasing their awareness
to reduce energy usage.
“Do you need a light on? Have you switched
off your tools when you’re done using them?
It’s about understanding. It is the responsibility
of MAN as well as all of its employees. We
have to start now in order to support our next
generation.”
In this world of smoggy cities, sky-
rocketing prices and dwindling resources,
we couldn’t have said it any better
ourselves. |FOCUS
The MAN Pinetown assembly plant produces variants of the company’s low, medium and heavy range
truck and bus chassis to global standards. It now also leads the way as one of the company’s most
energy-efficient plants in the world
MiniMUM energy, MAxiMUM
prOducTiOn
March 2015 |FOCUS| 11
Bridgestone South Africa announces changes to its commercial tyre operations.
Sales and distribution of all new and retreaded truck, bus and earth
mover tyres will be spearheaded by a newly- formed company within
the Bridgestone Group, Bridgestone South Africa Commercial (Pty)
Ltd. Part of the change is the introduction of accrediting selected
Supa Quick branches as Bridgestone Commercial accredited
dealers. Allowing customers to access Bridgestone Commercial
products through Bridgestone Commercial service centres or
accredited Supa Quick dealers.
Available at selected Supa Quick outlets
Tel: 011 387 2000 www.bridgestone.co.za
Sales and distribution of all new and retreaded truck, bus and earth
mover tyres will be spearheaded by a newly- formed company within
the Bridgestone Group, Bridgestone South Africa Commercial (Pty)
Ltd. Part of the change is the introduction of accrediting selected
Supa Quick branches as Bridgestone Commercial accredited
dealers. Allowing customers to access Bridgestone Commercial
products through Bridgestone Commercial service centres or
DWFC
OL 51
8530
12 |FOCUS| March 2015
TRUCK TEST2015
hino has been involved with
each of the Truck Test events
to date. “We have learned
many valuable lessons and
gained lots of experience in the process. We
are now even more positive about the event
than we were in 2012, when it was held for
the first time,” says Gert Agenbag, product
planning and development manager at Hino
South Africa.
Adrian van Tonder, a senior manager
at Barloworld Transport, has also been
involved with the event since its inception.
He has the following to say: “Over the years
we have never had any major hiccups, but
we have learnt a lot about putting together a
truck test that has credibility. Every time we
start planning the next test, we immediately
apply what we have learnt from the previous
year, and we try to keep it as simple as
possible.
“This year we are going to be testing
extra-heavy truck tractors and that’s
always exciting. We have some great
vehicles participating and we have
managed to standardise all the trailing
equipment for both categories this year.
This will, therefore, be the first time that
it will be a true performance test of the
truck tractors.
“Extra-heavy commercial vehicles are
the lifeline of road transport between all the
major hubs in South Africa. Understanding
the performance of these vehicles and the
cost of ownership numbers are key factors
in ensuring that the correct vehicles are
selected for the correct applications.”
For others, this year’s event is a first.
This is the case for Alcoa South Africa.
it’s the finAl
cOunTdOWn
With Truck Test
2015 little more than a
month away, the excitement
is palpable. CLAIRE RENCKEN
talks to some of the participants and
suppliers about what lies ahead
ONBOARD TYRE INFLATION
On TranspOrT and LOgisTics
March 2015 |FOCUS| 13
MD, John Jewiss, says: “For Alcoa, this
is a great platform to give fleets and
original equipment manufacturers (OEMs)
a true, unbiased reflection of day-to-day
measurable aspects that impact the
transport industry.
“Alcoa wheels can save up to
255 kg on an extra-heavy truck (just over
23,5 kg per wheel compared to steel)
so on a full rig of 26 wheels, you can,
theoretically, increase your payload by
611 kg. Since the extra-heavy commercial
vehicle segment is the only one we sell
into in South Africa, this year’s event is of
paramount importance to us.”
Hino will be entering two vehicles in the
test this year. Agenbag explains: “First, the
Hino 700 Pro 229 2845 steel suspension
with single sleeper cab will be combined
with the three-axle trailer at a 49-t gross
combination mass (GCM). Our goal is to
achieve good fuel consumption with this
combination.
“Second, the Hino 700 Pro 229 2848
air suspension with double sleeper cab will
tow the interlink combination trailer at a
56-t GCM rating. With this combination,
we hope to achieve a good productivity
figure.”
Van Tonder concludes: “This year
we have selected a very interesting and
challenging route, so I cannot wait to see
how the trucks perform. It’s also great to
be part of the team spirit that comes to
the fore between all the participants at
Truck Test. For the rest of the year they are
fierce competitors in the marketplace, but,
at Truck Test, the guys work well together
and have some fun while doing it.” |FOCUS
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The first Truck Test, in 2012, featured extra-heavy vehicles – which make a triumphant return this year.
14 |FOCUS| March 2015
TRUCK TeST2015
according to Enoch Silcock, MD
of WABCO Automotive South
Africa, around 40 percent of
the braking systems supplied
by the company go to original equipment
manufacturers of trailers, meaning the
company has a very good relationship with
its industry counterparts. It is, therefore,
supplying braking systems to GRW for the
trailers being built for Truck Test 2015.
“We’ve dealt with GRW right from the
beginning,” he says, explaining that WABCO
has been participating in the South African
market for more than 45 years. “We’ve
always had a very good relationship. GRW’s
customers look for high-spec, world-class
brake systems, so we offer them the
technology they’re looking for.”
In the case of the trailers being built
for Truck Test 2015, Silcock explains that
the company’s standard anti-lock braking
system (ABS) drum brake system has
been chosen for the task. “Only around
ten percent of the market currently
has disk brakes, so GRW has chosen
the most widely used system, as these
trailers are being built for benchmarking
purposes. This is our base braking system.
It meets South African Bureau of Standards
(SABS) and international standards for
braking, aiding stability and shortening
stopping distances by preventing lock-ups.”
Currently, the law states that all new
trucks and trailers have to be equipped with
ABS.
The ABS does offer some very important
benefits, even though it may not be the most
sophisticated offering in WABCO’s portfolio
(for that you’d have to look to the company’s
configurable Electronic Braking System (EBS),
which is rapidly gaining market share thanks
to the slew of advanced safety adaptations it
offers).
The ABS has been kept basic so that
nothing can confuse a maintenance team,
yet the solenoid technology used in the
system gives faster braking response. One
can run diagnostics on the system to check
The Truck Test series wouldn’t be possible without the support of all those involved – including the
individual component suppliers, such as WABCO, which is supplying GRW with trailer braking systems.
GAVIN MYERS reports
the MoUldbraking
March 2015 |FOCUS| 15
TRUCK TeST2015
information such as the ABS function and
system component integrity, but additional
functions, such as a configurable input output
(I/O) plug, have been removed.
“WABCO has actually designed this
particular system around third-world markets,
such as South Africa and Brazil. We’ve been
running this technology locally for over a year
now; overseas they’ve had it for over ten years.
This system is tried and tested,” says Silcock.
As this is WABCO’s first association with
the Truck Test series, Silcock is keen to use
the opportunity to demonstrate the company’s
involvement and interest in the event. A
WABCO support team will run with the trucks
to Komatipoort and back, and the company’s
Middleburg and Nelspruit distributors will also
be on standby if needed. “Ultimately there’s
GRW’s backup as well, but I’m confident there
will be no problems,” he says with intent.
Generally speaking, the company
undertakes a more technical support role,
rather than field support. “We’ll recommend
one of our 41 sub-Saharan African
distributors or service centres – which are
graded according to their capabilities. We
focus our support mainly on the trailer side
of the industry, because that seems to be
where the skills are lacking.”
While the company will be interested to
see how well its systems perform on the
road, Silcock explains that to really test a
braking system there needs to be sustained
testing with a fleet. He says that the company
has done this numerous times in the past,
demonstrating differences in the frequency of
breakdowns and lining life, for example.
“If we can guarantee such high-quality
systems, our clients see that it is worth
paying a bit more initially, rather than replacing
systems three or four times in the same
timeframe.
“We’ve had very few comebacks with our
ABS units. In South Africa, systems come back
as a result of bad maintenance, not factory
faults … We offer a one-year warranty on all
our systems, and on the ABS used in Truck
Test 2015. We are happy to give extended
warranties on the components, because we
know they work,” he enthuses.
In this vein, Silcock explains that operators
are becoming more savvy: “We have to change
as the market develops, but ten years from
now the whole market will probably be running
EBS. Operators are looking beyond the initial
cost of a vehicle to the full cost of ownership.”
Happily, the industry’s savvy operators will
also be looking at Truck Test 2015, and will no
doubt be impressed by WABCO’s enthusiastic
involvement. |FOCUS
Left: The ABS unit is one of WABCO’s most tried and tested offerings.
16 |FOCUS| March 2015
TRUCK TeST2015
competitively light. The air suspensions are
lightweight, but we’ve brought the heaviest
version of them here to South Africa, in order
to compensate for the local road conditions.
Our products are tried and tested. They have
been on the market for ten years with slight
upgrades (all for the better) here and there.
Most importantly, they have been adapted to
suit South African conditions.”
He adds that BPW is selective about
which new products it brings in to South
Africa, as ours is a market that is traditionally
resistant to change.
“This year’s Truck Test is of huge interest
to us, because it targets the extra-heavy
commercial vehicle segment of the market,
which is where we sell most of our products.
We know that the 16 trailers that have been
fitted with BPW axles and suspensions will
be sold after the event. We intend to keep
track of who buys each trailer, and cultivate
relationships with those transporters, in
order to provide them with the best after-
sales support possible.
“We strive to be system partners with
trailer builders, as well as being mobility
partners with our end users. That is why
our company slogan is ‘We think transport’,”
Cilliers concludes.
One thing is for sure, BPW is here to stay.
The company has managed to steadily grow
its market share over the past 15 years, even
during the economic crisis. Clearly, it intends
to continue doing so – the company’s new
interactive website is just one example of how
it is staying ahead of the game. |FOCUS
This year, BPW has jumped in axles and all, as one of the Truck Test suppliers to nine Afrit and seven
GRW trailers. CLAIRE RENCKEN gets the inside track from BPW managing director, André Cilliers
bpw thinks
TranspOrT
“We strive to be system partners with trailer builders, as well as being mobility partners
with our end users. That is why our company slogan is ‘We think transport’.”
“The Truck Test is a good
marketing opportunity
for us. It also gives us
the chance to show
the industry our intent to support the
market with our product,” begins Cilliers.
“BPW has been in the country since 1945
– we are not a fly-by-night company. We
focus heavily on after-sales service and
product support.
“In addition, one of our biggest selling
points is low cost of ownership, because,
even though our products may cost a little
more initially, they last longer and result in
lower maintenance costs in the long run.
We need to communicate this philosophy
to our end users – the transporters. Truck
Test provides us with an ideal platform to do
just that.”
The products that will be used on certain
trailers during the test are from BPW’s
standard product line – the ECO Plus
range of rigid axles and the Airlight II air
suspensions.
Cilliers explains: “The rigid axles are rugged,
have an extremely high load capacity and are
??????????????
March 2015 |FOCUS| 17
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18 |FOCUS| March 2015
TRUCK TeST2015
says Meyer: “This is the first
Truck Test event in which
Freightliner will partake. Other
Daimler truck brands have
entered into other past events, however, and
performed very well.” He adds that Daimler
Trucks takes each and every opportunity
to demonstrate why it is one of the world’s
leading truck manufacturers.
“In order to do this, we participate in
events such as FOCUS on Transport’s
Truck Test,” Meyer points out. “This is where
commercial vehicles, such as our Freightliner
Argosy Cummins 500, are tested under
genuine road conditions that they have to
endure on a regular basis.”
This is the vehicle (Freightliner’s best-
selling model) which will be put through
its paces in this year’s event. Truck Test
2015 features extra-heavy commercial
vehicles and this is the only segment
in which the brand competes. “We are
very eager to demonstrate the abilities
of our product,” says Meyer. “This is
also a chance for us to publicise our
value-chain offerings, namely; FleetBoard,
CharterWay, Mercedes-Benz Financial
Services and TruckStore.”
FleetBoard is Daimler’s well-known
telematics service that increases fleet
efficiency. With a FleetBoard unit onboard,
one can monitor the performance of both
truck and driver from wherever you are, at
any time.
Available remotely on a PC, smartphone
or tablet, this data can be used to analyse
and optimise the efficiency of an entire fleet.
“The savings are dramatic as a fleet’s fuel bill
and maintenance costs can be reduced by
15 percent,” says Meyer.
“Truck Test 2015 is the perfect platform
for us to showcase the benefits of our
FleetBoard Professional Driver Training
programme,” Meyer points out. “A thoroughly
trained driver can mean an increased bottom
line for an operator, and, more importantly,
safer roads for all users.”
He adds that driver training and skills
development play critical roles in the effective
management of any fleet. “FleetBoard offers
tailored courses and training to achieve this
goal, resulting in the optimal utilisation of the
vehicle and improved efficiency.”
CharterWay – a set of vehicle leasing,
maintenance and servicing products modelled
specifically for the fleet owner – enables
the company to combine Mercedes-Benz
Financial Services and fleet management
products.
TruckStore, the specialist
used commercial vehicle
concept launched by Mercedes-
Benz South Africa in 2012,
is based on the European
model. In Europe, TruckStore
is the number-one address
for buying and selling used
commercial vehicles. Locally,
it is one of the biggest used
commercial vehicle outlets
in the southern hemisphere.
TruckStore offers a
selection of brands, ages
and types of vehicles – all
classified as Gold, Silver or
Bronze according to clearly
defined TruckStore standards.
This classification serves as
a reliable confirmation of the
age, condition, mileage and
service component of the
vehicle. The company also
offers an extensive range of
services for used commercial
Truck Test 2015 is nearly upon us. The vehicles will set off on April 15 for the fourth instalment of this
informative event. We talk to Dirk Meyer, brand leader Freightliner Trucks South Africa, for the scoop on
the goals and expectations of this newcomer to Truck Test
pUt to the
TesT
March 2015 |FOCUS| 19
TRUCK TeST2015
vehicles such as finance, insurance and
warranties.
The most important part of Truck
Test 2015, however, is the opportunity it
presents to demonstrate the performance
of the Freightliner Argosy in a real-life and
standardised environment – Meyer points
out. “The results will assist truck operators
when making critical buying decisions.”
He continues: “We are very close to our
existing customers and constantly work on
improving the performance of their vehicles.
This test will allow us the opportunity to
evaluate these improvements.”
Meyer tells FOCUS that Truck Test is
also an opportunity for the company to get
feedback about the conditions in which its
drivers operate, as they spend a lot of time
behind the wheel. “As comfortable and user-
friendly as our cabs are, we are always
looking for other ways to innovate further and
to continue to be leaders.”
He adds that the test will also demonstrate
just how frugal the brand’s engines are, while
providing the necessary power for varying
loads and distances. “Apart from achieving
exceptional fuel consumption, we are certain
that the low tare weight of our product will
help to achieve a high productivity factor,”
says Meyer.
“Venturing into the unknown is what
we are most excited about, however, as
this is the first time that Freightliner will be
competing in the Truck Test event,” Meyer
tells FOCUS. “The trucking industry is a
competitive one, where the demands and
requirements are often highly complex and
require solutions that are geared towards
vastly improving efficiency, while reducing
costs …
“Freightliner has a proven product
in the market, but it will be very
interesting to see how the results
compare to the performance
figures we have built up over the
years.” |FOCUS
20 |FOCUS| March 2015
What sort of participation
will Engen have in the
test this year and which
Engen garages will be
used?
At the moment we will sponsor the fuel. The
test is planned to start from Super Park (the
head office of Super Group) in Isando. We’ll
use the Belfast One Stop on the N4 (on both
legs) for brunch, with Lebombo Truck Stop
at Komatipoort being used as the overnight
parking facility and for refuelling between the
two legs of the trip.
What are the Truck Stop/One Stop
managers’ thoughts regarding the test?
Retail highway sites, such as Belfast Engen
1 Stop and Lebombo Engen Truck Stop,
rely heavily on the service levels that they
provide (including secure parking facilities,
food offerings, competitive fuel pricing,
and so on) to attract business on to their
forecourts. “Word of mouth” references
are very important in their endeavours and
Truck Test 2015 allows these Engen sites
to showcase their hospitality and facilities to
the transport industry.
Their prompt and positive responses when
we approached them to become involved,
clearly demonstrates their commitment to
the truckers travelling on the N4.
What value does Engen see in the Truck
Test programme?
By far the biggest value that Truck Test
offers is the information, which appears
when the results are published. This affords
transport companies a clearer picture of the
performance of the tested vehicles, under
controlled conditions, but on public roads.
This can assist them to make more informed
buying choices.
This year’s test, which will include identical
trailers and loads behind the participating
truck tractors, will provide an even more
relevant comparison of performance. It is
extremely important for Engen to be able
to demonstrate our commitment to the
transport industry (one in which Engen is the
largest supplier of fuel), by partnering with
Truck Test 2015.
What has Engen learned from its participation
in the Truck Test series over the years?
Engen has been an organising partner behind the Truck Test series since its inception. GAVIN MYERS
engages in some questions and answers with Lindsay Bassett, Engen Commercial Fuels key account
manager: transport, to understand why participation in the test is so important to the company
benefitpriceLess
TRUCK TeST2015
March 2015 |FOCUS| 21
TRUCK TeST2015
The camaraderie between truckers and
the dedication of the original equipment
manufacturers to produce the best, safest
and most fuel-efficient vehicles possible, stand
out as features. In addition, the recognition
that Engen receives from stakeholders within
the transport industry, has confirmed how
valuable Engen’s support of the Truck Test
programme is.
Have any of your clients ever commented on
Truck Test and/or your involvement in it?
Each year, since 2012 when the Truck
Test series began, we have received
numerous positive comments from many
of our transport customers. Generally, the
sentiment is one of appreciation for Engen’s
support of what is seen by many transporters
as a true “value-add” to their businesses …
the ability to make better-informed choices
on vehicles for specific applications, due to
information gathered during the Truck Test
programme.
What do you think of the new route this
year?
The Johannesburg to Komatipoort route
is ideal for this year’s test of 6x4 truck
tractors, because of the length of the route
and the fact that it includes a variety of
road conditions, with plenty of significant
gradients. It is a route that accurately
and realistically represents typical routes
plied by 6x4 combinations, and will provide
valuable information on comparative vehicle
performance.
Engen is well represented along the N4
route and is proud to be able to showcase
two of our trucker-friendly sites.
How do you think this year’s test will differ
from the last running of 6x4s in 2012?
The slightly shorter duration and the fact that
Truck Test 2015 will not form part of another
event, such as the Road Freight Association
(RFA) Convention back in 2012, will keep the
focus very much on the performance of the
various trucks taking part.
Hopefully, the experience gained by the
organisers since 2012 will ensure an even
smoother and more enjoyable two days for
all those involved.
In addition, the planned “group braai”, at
the Komatipoort Golf Club, between the two
legs, should be a good opportunity for all the
drivers, support crews and organisers to
relax and network. Finally, the use of identical
trailers on his year’s test will, no doubt, make
the comparative performance information
even more relevant. |FOCUS Above and below: The last running of 6x4 truck tractors was in 2012, at the inaugural Truck Test series event.
??????????
22 |FOCUS| March 2015
TRUCK TeST2015
With over 80 percent of the
players in South Africa’s
extra-heavy commercial
vehicle segment (EHCV)
taking part in Truck Test 2015 – entering
some 16 vehicles – this will be one of the
most representative tests, ever, of what is
currently available to the market.
According to Dammann, it should also
return some neck-and-neck results. “In 2012,
we had fuel consumption and productivity
differences of up to 15 percent. This year, I
expect a difference of less than five percent
between the vehicles. The overall performance
of all the vehicles should be far more similar
than the last time we ran 6x4s in 2012.”
There are numerous reasons for this.
Dammann highlights the fact that each year
the original equipment manufacturers (OEMs)
are better prepared, as well as a unique point
relating to Truck Test 2015 – the fact that
all the gross vehicle mass (GVM) ratings and
trailers used will be identical.
“The idea of having the same trailers
and GVMs for the two categories will level
the playing field considerably. In this regard,
it’s great having AfriSam, Afrit and GRW on
board, making it much easier for the OEMs to
participate, as trailers and loads are not their
core business.
“OEMs will be making far more use of the
live tracking information provided by Ctrack,
mainly to monitor each other’s progress.
With speed playing such an important role
in the overall results, they’ll want to make
sure they’re making the right decisions,” he
continues.
This time round, the 6x4s will run from
Super Park in Jet Park, on Gauteng’s East
Rand, to Komatipoort near the Mozambique
border. The route starts at 1 700 m above
sea level, going all the way up to around
1 900 m at Belfast and then down to
160 m (almost sea level) at
Komatipoort.
“There’s also a mountain pass at
Schoemanskloof, after Machadodorp,
which will challenge even the
most experienced drivers,” adds
Dammann. “The route is also about
150 km shorter each way than
the route between Johannesburg
and Durban. This means it will
be far more manageable to do
all the travelling and refuelling
in daylight, making it less
stressful overall,” he says,
noting that the current road
works on the route should
be complete by the time the
test happens; allowing for a
clean run.
Operationally, Dammann says that
vehicles will be weighed on the TRAC N4
weighbridge near Middelburg, to double-
check the weights taken when loading them
at AfriSam. The truck tractors will also
be weighed empty so that tare masses can
be compared to the manufacturers’ specs …
“quite often a controversial point,” he says.
As is standard practice in the Truck Test
series, HTM’s TransSolve software will provide
simulations of expected vehicle performance
before the test, as well as corroborating
the final results. “We’ll probably simulate at
different speeds to see how driving technique
will affect overall performance. We want to
improve even more on our accuracy, and this
time we’d like to add in vehicle specs as well,”
notes Dammann.
In conclusion, he says: “This test is really
relevant to the local market – we’re only
testing equipment that is readily available
to customers in South Africa. There’s
nothing special that will optimise a vehicle’s
performance in the test.” |FOCUS
Martin Dammann, MD of Hellberg Transport Management
(HTM), one of organising partners of the Truck Test series,
goes through the finer details of Truck Test 2015 and
gives us his expectations for this year’s event
expectAtionsgreaT
Vic Oliver (left) and Adrian van Tonder watch closely as Dammann (right) checks the fuel level of a vehicle during Truck Test 2014.
??????????????
March 2015 |FOCUS| 23
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CROSSBORDeR
africa is known for its many
intriguing cultures, mysteries
and legends; untamed jungles,
wildlife and waters; searing
heat; bloody conflicts; and relentless health
epidemics … And, among those in the
transport industry, for the overall shocking
road network and poor border operations
across its many states.
Thanks to much foreign investment, the
road infrastructure is slowly being improved
(we won’t go into the politics underlying the
subject).
Namibia’s north-south B1 highway, for
instance, has recently been in the news for
a N$ 239-million (R238,7 million) contract
awarded to Aveng Grinaker-LTA to upgrade the
stretch between Windhoek and Okahandja.
It is said to be one of the most dangerous
roads in that country and is being upgraded
to a dual carriageway. There will be two
interchanges; each with a north- and south-
bound bridge, and a service road is also being
constructed.
That’s the roads taken care of (at least
in theory), but a much bigger problem is
the border-crossing situation. It’s long been
said, by many industry players and experts,
that Africans are making cross-border trade
and growth more difficult for themselves. As
a result of the administrative, bureaucratic
and/or corruption-based red tape, it takes
far too long for vehicles to make their
way through the various checkpoints and
“roadblocks”.
This was highlighted, in November 2014,
by a tragic incident at the Kasumbalesa
border crossing, between Zambia and the
Democratic Republic of Congo (DRC). A fire
broke out when two tankers collided on the
DRC side of the border post. Gasoline from
one tanker leaked out and caught fire when it
made contact with a wood stove in a nearby
kitchen. Over 200 trucks were parked in
the area at the time, 48 of which were
subsequently burnt out. Four people died.
“It has been stated on many occasions,
that vehicles carrying dangerous goods,
when parked in congested areas at the
borders, are an accident waiting to happen.
This was referenced mainly to Beitbridge,
between South Africa and Zimbabwe.
Beitbridge has been temporarily spared
such an event, and Kasumbalesa was the
recipient instead,” said Barney Curtis, of the
Federation of East and Southern African
Road Transport Associations (Fesarta), at
the time.
“The problem remains and something has
to be done about it – either give dangerous-
goods vehicles fast clearance, or give them a
special parking area. We know that borders
are congested and space is at a premium,
but the stakes are too high to not make some
concessions,” he continued.
Following the incident, numerous
transport bodies added their opinions.
“The scale of this disaster is a wake-up call
for all of us involved in moving freight across
borders, whatever our role, and I believe
that the implications must be dealt with at
all levels. In my view, it warrants a special
Road transport within Africa is no doubt a risky business. With wasted time, incidents of corruption and
lost loads and vehicles, it’s expensive, too. One of the ways we can begin fighting this is to sort out the
situation at the continent’s many borders. GAVIN MYERS asks how this can be achieved
bUrning
bOrders?
March 2015 |FOCUS| 25
CROSSBORDeR
meeting of corridor institutions, transporters
and border agencies, among others, to put
urgent measure in place to minimise the
risk of this kind of situation being repeated,”
notes Barbara Mommen, CEO of the Maputo
Corridor Logistics Initiative.
“The idea would be to pressure our
respective governments to stick to relevant
agreements pertaining to the transport of
dangerous goods, and to ensure proper
implementation of these agreements and
relevant legislation.
“In addition, to implement, as a matter of
urgency, special measures for the handling
of dangerous-goods vehicles at our border
posts. It is imperative, too, that the ministers of
transport of the region provide the necessary
political support to ensure that this is not
repeated ever again,” she continues.
Harold Reed, executive member of
the Transport Operators Association of
Zimbabwe, says that the streamlining of
the logistics chain needs urgent attention
by African governments. “I have made this
clear at every Southern African Development
Community (SADC) and regional meeting that
I have attended. Maybe it takes a disaster like
this, which could have been avoided, to make
governments sit up and take notice. It will be
interesting to see the outcome.”
Reed outlines some practical steps to
improve the situation: “The bottom line is that
vehicles should not stand at any place, being
a border post or a dry dock. Vehicles should
arrive and depart.
“Standing time costs money, increases
the opportunity for theft and hijacking, and,
therefore, inflates transport costs, not to
mention the lack of facilities that lead to
major health hazards for drivers and related
people.
“Border posts and dry docks should be
operated on a risk-management basis only,
not as a holding pen. There should be no
reason, whatsoever, why a vehicle departing
South Africa for the northern territories
cannot proceed directly to the offloading
point, with minimum delay, when it arrives
in that territory. With today’s modern
technology, the duties, and any other
requirements, should already be in place and
the loads pre-cleared.
“The question that should be raised is:
Are the respective clients not using the
transporters at the border posts and dry
docks as convenient mobile warehouses?
Once the goods are sold or required for
delivery, they are conveniently released. The
distributer is thus not out of pocket as far
as duties are concerned. The money is
already in the respective distributers’ bank
accounts – at the cost of the transporter
…” he notes
Both parties aim to promote dialogue and
support regarding these key issues, but red
tape is again getting in the way. Following
the fire incident, Curtis stated that an official
investigation was to be set up, and that
Fesarta would follow the matter closely and
work together with its member national road
transport associations to determine the best
way to avoid similar occurrences.
At the time of writing, the Federation
had not received any feedback. FOCUS
also approached the Cross-Border Road
Transport Association (CBRTA) for comment,
but at the time of writing had received only
promises of feedback.
We look forward to hearing back from
all parties concerned, and bringing you an
update. Our region depends on it. |FOCUS
26 |FOCUS| March 2015
BUDGeTRevIeW
as it does every year, Econometrix
held its 30th annual budget
conference, in Sandton, the day
after the speech was delivered.
This year’s conference was sponsored by
Business Report.
The figures that are sticking in everyone’s
minds are a one percent tax hike for all, an
overall 80,5 cents increase in fuel levies (the
general fuel levy will increase by 30,5 cents
per litre and the Road Accident Fund levy by
50 cents per litre), and an overall growth
forecast of two percent for 2015 (revised
down from an expected 2,5 percent in October
last year), which will hopefully rise gradually to
three percent by 2017.
What does all this mean? Is our country
doomed, or is there a dim light flickering at the
end of the tunnel? “The economic situation in
which South Africa finds itself is not entirely
of the country’s own making. Our economy
is very closely linked to the world economy.
With commodity prices being depressed, our
exports have been negatively affected, and,
therefore, so has the government’s revenue.
“However, what is cause for concern is that
our country’s trend of rising debt is worse than
those of other emerging economies. About 60
percent of our problems can be attributed to
domestic factors,” says Jammine.
He continues: “Even though there has been
a bit of an economic recovery after last year’s
debilitating strikes, what is worrying is that
private sector capital investment has turned
negative over the last year, due to a lack of
confidence in our economy.”
Then, there is of course the fear that
electricity outages will damage our growth
going forward. “I don’t want to overstate the
effects of load shedding. I think the government
has been realistic in its forecast, and has
factored the effects of load shedding into its
calculations. However, some businesses in
the private sector believe that if load shedding
intensifies, economic growth will be even
lower than two percent, and have, therefore,
predicted their growth to be a more modest
one to 1,5 percent,” explains Jammine.
“Another area of concern, is that, while
Nene spoke about the funds that will be
allocated to education, healthcare and safety
and security, what is often overlooked is that
more and more of the government’s budget is
actually being devoted to serving the country’s
debt, and proportionately less is being spent
on these basic social services,” he points out.
So, what might the future hold? “Make
no mistake; things are going to be tight for a
good few years. Fiscal austerity is going to be
needed if the government is to stop its debt
levels from rising. Over the next few years,
we may see the introduction of wealth taxes
(which will be based on assets rather than on
income), and value-added tax (VAT) will go up.
“In terms of the cost of fuel, even with the
increase in the fuel levies and the imminent
increase in the fuel price, we should still be
paying less per litre than we were this time
last year,” Jammine reckons.
As for the currency, he predicts that
we’ll be looking at much the same trend as
the last few years, with the rand continuing
to gradually depreciate, without any major
collapses in currency.
“It’s hard to draw an overall conclusion
about the budget speech,” says Jammine.
“Some of it was good, some of it wasn’t. It was
a bit of everything. Nene was caught between
a rock and a hard place, and he did what he
could under the circumstances, but it was
nothing great. There is a lack of trust between
the government and the private sector, and
if we’re going to save this sinking ship, better
coordination and cooperation between the
two are vital.”
He adds: “What’s more, we’ll need bold,
decisive leadership going forward. Otherwise,
we’ll just continue to trudge along at two to
2,5 percent growth over the next few years,
which isn’t a disaster, but it could be so much
better.”
Jammine concludes: “On the upside,
international investors seem to be gradually
regaining a little bit of confidence in our
economy, which will help us to start
consolidating our expenses.” |FOCUS
On February 25, Minister
of Finance, Nhlanhla Nene,
delivered South Africa’s annual
budget speech to Parliament in
Cape Town. Azar Jammine, director
and chief economist of Econometrix,
offered some interesting analyses of what
was said. CLAIRE RENCKEN reports
nOT disasTrOus,bUt coUld be better
March 2015 |FOCUS| 27
BUDGeTRevIeW
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28 |FOCUS| March 2015
Some say that the world is overcoming the effects of the recent recession, while others warn that we
shouldn’t jump the gun … One thing is certain – it has changed how business is done. We take a look at
how the commercial-vehicle finance and insurance industries have been affected
triUMphing over
TOugh TiMes?
FInAnCe AnDInSURAnCe
The recession, or the general
economic decline, that hit the
world markets around the end
of the first decade of the 21st
century (its exact scale and timing is still being
debated), varied from country to country. Its
affects rocked the world, however.
In terms of overall impact, the International
Monetary Fund (IMF) concluded that it was
the worst global recession since the Second
World War.
“In general, there is always a flipside
to the coin,” says Petr Novotny, managing
director of Scania Finance and Insurance. “The
aftershock has led to a search for efficiencies
within the commercial automotive sector. This
directly influences all parts of the value chain,
to which the finance and insurance business,
undoubtedly, belongs.”
He adds that operators also became
more eager to understand the total cost of
operation and total operating economy of their
fleets. “These areas are crucial, and are the
first step in order to create sustainable, long-
lasting transport solutions.”
Novotny continues: “At the same
time, due to the perceived high risk to the
financial market, customers and banking
institutions suffered from lack of access to
financial resources and liquidity during the
crisis years.”
He emphasises that this wasn’t an
easy situation. “It created a shift, however,
where customers turned to alternative
means of finance, such as finance provided
by original equipment manufacturers,
leasing and insurance solutions,” Novotny
tells FOCUS.
“This alternative to the traditional financial
institutions helped to ease the tough market
situation and increased market liquidity in the
automotive business sector.” It also led to a
number of benefits for the commercial vehicle
market …
“Scania Finance and Insurance offers a
flexible and customer-need-based approach,”
“This emphasises some very important
parameters such as one customer one
account, dedicated customer approach
and focus on total operating economy when
offering Scania products, services and
finance/insurance. No silos, no politics, no hot
potatoes … ”
He adds that Scania believes this holistic
strategy will help its customers to become
more profitable, more efficient and spend
less time and effort on administration and
operating processes – “so that they can focus
on the core areas of their businesses”.
So the recession wasn’t all evil, necessarily,
but it did leave its mark … “The market
recovery was relatively quick in terms of
volume, but other areas took far longer to
recover,” Novotny points out. “Prices of used
vehicles, for example, remained at lower levels
for years.”
He continues: “Higher market risk had a
negative effect on the levels of lease payments
to logistics providers, and consequently, on total
March 2015 |FOCUS| 29
FInAnCe AnDInSURAnCe
cost of operations. The financial sectors are
now much better prepared to tackle financial
or operational rises, due to active involvement
with the transportation companies and better
understanding of rewards and risks in the
commercial vehicle operations.”
This is a good thing, as 2015 might have
its own challenges in store … David Molapo,
head of fleet management at Standard Bank,
says that heavy economic storm clouds lie
ahead for the South African fleet industry in
the coming year. “The good news is that many
local fleet operators have not yet begun to fully
utilise the modern tools and technologies that
can help them to weather the storm.”
He adds that those that have already
implemented precision-management tools
(not only the latest vehicular technology and
telematics, but also management systems
and services) are set to increase their
competitive edge as South Africa enters a
turbulent economic year.
“South Africa’s recent credit rating
downgrade by Moody’s, from Baa1 to Baa2,
combined with the end of quantitative easing,
and the start of rising interest rates in the
United States, is pushing down local business
confidence,” Molapo points out.
These conditions are doing no favours
to key sectors, such as manufacturing, and
2015 could possibly see South Africa lose
further vehicle production contracts, among
others, to more competitive manufacturing
economies.
“Under current economic conditions, fleet
managers are also given little time to plan for
expanding their fleets, because new contracts
tend to come in sporadically,” says Molapo. “As
a result, mistakes, such as buying the wrong
type of vehicle for the job, tend to increase.”
He adds that fleet managers need to
budget for an inflation level of at least the
current six percent. “Despite the gloomy
outlook, fleet managers can ride out the year
and emerge with a stronger, more efficient
fleet – provided they fully embrace the systems
and methods available on the market.”
One of these includes Standard Bank’s
fleet card, which is vastly underutilised. Many
fleet owners are simply “convenience users”
and implement only one of the advantages –
the fact that they no longer have to give cash
to drivers to fill up. Meanwhile, a huge amount
of information, in the form of automated
reports, is available to fleet owners who take
the time to access it.
By analysing fuel consumption and
comparing it to national averages, for example,
faults in vehicles, as well as driver behaviour,
can be picked up. The resulting incremental
savings could result in huge efficiencies, which
give the fleet a competitive edge in difficult
economic circumstances.
“The range of precision-management tools
available to fleet managers is unprecedented,”
says Molapo. “On the technological side,
telematics can now give detailed analysis of
vehicle performance and driver behaviour.”
The future also looks promising for the
finance and insurance industries. “I personally
expect further integration with the automotive
value chain, resulting in more efficient
processes and higher value offerings to end
customers,” Novotny tells FOCUS.
“I think we will see a shift towards
transporters buying transport capacity at
a fixed fee,” he continues. “In this solution
you have the whole package: full vehicle
maintenance including; parts, insurance,
finance, fleet management systems and driver
support … with a predefined uptime guarantee
at a fixed rate per kilometre or tonne.”
Novotny points out that transporters need
only add drivers’ salaries and the cost of fuel
to total cost of operation when calculating cost
per kilometre. |FOCUS
Petr Novotny, MD Scania Finance and Insurance, says that involvement with transport companies has allowed financial institutions a better understanding of operators’ risks and rewards.
30 |FOCUS| March 2015
there was ecstatic with the new set of
wheels. This haven for abandoned babies,
some of whom are HIV/Aids-infected, was
in dire need of a vehicle to ferry babies
and toddlers, particularly those who need
antiretrovirals (ARVs), to hospital.
The company has now decided that the
time has come to truly make its mark on
the commercial truck tyre market. And, on
March 2 this year, a new company was
created within the Bridgestone Group;
Bridgestone South Africa Commercial,
which will specifically handle the sales and
distribution of all new and retreaded truck,
bus and earth-mover tyres.
Bridgestone SA CEO, Mike Halforty,
is upbeat about prospects for the new
company. “Bridgestone Commercial will
ensure our customers have the peace of
mind of knowing they are dealing directly
with Bridgestone. It will also allow us to
consolidate our branding position and
provide closer customer support, as well
as position us for growth in the commercial
market,” he adds.
Halforty has announced that Bridgestone
Commercial will be led by Dries Lottering, in
his capacity as managing director. “Dries has
been with Bridgestone for many years and
has extensive experience of the challenges
faced by our commercial tyre customers,”
notes Halforty.
The launch of Bridgestone Commercial
also sees selected Supa Quick outlets offer
commercial tyres and services. Halforty
comments that this move will result in closer
ties with commercial customers, and explains
that the accredited outlets will also be able to
supply commercial retreads manufactured
according to the South African Bureau of
Standards (SABS) specifications.
Bridgestone’s commercial tyres are
already highly regarded, with the company
having won “Best Tyre Brand” at the FOCUS
ON EXCELLENCE Awards.
“The time was right to ramp up our
commercial operation to a new level,” Halforty
says. “I’m certain that Bridgestone Commercial
is going to set ever-higher standards in this
segment,” he concludes. |FOCUS
Bridgestone, a household name within the transport industry, is now focusing on the commercial tyre
business like never before – with the formation of an all-new company
bridgestone coMMerciAl
is bOrn!
FOCUS OnTYReS
The Bridgestone name is far from
new to South African truckers.
On a global front, the name
has existed since 1931, when
founder Shojiro Ishibashi established the
business. Incidentally, the company name
comes from an English translation of his
surname.
The company has been active in the South
African market since the proverbial pa fell off
the bus. It has done much more, however,
than just sell tyres.
For instance, Bridgestone was integral
to the formation and success of the Caring
Truckers Aids Drive, a charity administered
by Charmont Media Global. The Caring
Truckers Aids Drive was initiated in 2000
by FOCUS in conjunction with Bridgestone.
In fact, the charity – which has had a huge
impact on Aids orphans in South Africa –
was the brainchild of Bridgestone’s Shaun
Wustmann. Thanks to his inspiration, the
Salvation Army recently received a Mazda5.
The vehicle was handed to the Ethembeni
Babies Home in Johannesburg, and the team
??????????????
March 2015 |FOCUS| 31
Syn
c - 1
071
5 -
Focu
s
Bandag have been specialists in recycling since 1957. Bandag’s cold retreading process is not only reliable and economical, but also aids in keeping tyres out of landfills thereby protecting the planet. Combine this with Bandag’s ISO 14001 environmental accreditation, and it becomes clear why using Bandag gives fleets and the environment the advantage. That’s what we do.
RECYCLING DOWN TO AN ART
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10715 - Recycle Ad - Focus.indd 1 2011/11/08 2:06 PM
is bOrn!
32 |FOCUS| March 2015
FOCUS OnTYReS
What is being done to counteract the negative effect that used tyres have on the environment? With
different entities sharing one goal, there might be hope after all – DEON VAN DER WALT finds out more
thAt is the qUestion
TO reuse Or recycLe,
Tyres are, arguably, one of the
most crucial components of
any motor vehicle. A passenger
vehicle’s safety depends on its
tyres being in good condition, while tyres
can have a direct impact on a commercial
vehicle’s productivity.
The mid-nineteenth century was the
Genesis for the tyre as we know it today,
when Charles Goodyear invented vulcanized
rubber, which would later become the
rubber used for the earliest tyres created
by inventors with similar, yet very different,
ideas. Since then, all road transport has
become reliant on tyres.
This poses an important question in
the framework of “global warming”. What
happens to these tyres when they are no
longer usable?
Annually, South Africa adds 11 million
tyres to already problematic landfills and open
areas. Designed to be extremely durable,
tyres are notoriously difficult to recycle and
take very long periods (up to 50 years) to
biodegrade.
Instead of just discarding the bald, worn-
out rubber to disintegrate, recycling or
reusing will help save the planet – one tyre
at a time.
The Recycling and Economic Development
Initiative of South Africa (Redisa) plans to
clean the country of tyre waste. According
to Redisa, there is a growing demand for
waste tyres that can be recycled and used
to manufacture products made from the
rubber, steel and textile derived from the
processed tyres.
With 34 operational depots in all nine
provinces, Redisa created 1 617 jobs and
collected 81 542 t of waste tyres in the
period from December 2013 to December
2014.
Director Stacey Davidson says that Redisa
is not a recycler, but supports companies
that recycle and process waste tyres into
saleable products.
“Our support ranges from business plan
development, to assisting with environmental
March 2015 |FOCUS| 33
FOCUS OnTYReS
impact assessments. We offer regular
delivery of waste tyre feedstock to all recycling
companies that are registered with Redisa,”
says Davidson.
One such operation is the joint venture
between the Mathe Group, based in KwaZulu-
Natal, and PFE International. These two
organisations plan to build a multi-million
rand rubber crumb manufacturing facility in
Hammersdale.
Mehran Zarrebini, head of PFE
International, says that the new facility will be
home to the Mathe Group, and is one of only
two KwaZulu-Natal companies registered
with Redisa.
The Mathe Group, which currently
recycles tyres at an 850 m² factory, will
significantly increase productivity with
the new manufacturing facility. Due to
be commissioned in April, it consists of a
2 500 m² factory and a 1 000 m² warehouse,
and will feature modern equipment worth
R20 million.
Bandag (which has been operational in
South Africa for more than 40 years) offers
an alternative solution to cut down the ever-
increasing number of waste tyres – in the
form of retreading.
“Retreading as a discipline is the first
step in recycling efforts. With retreading
you extend the service life of tyres, thus
reducing tyres at landfills. In this way, the
legacy scrap pile of tyres can be worked
through the government’s recycling efforts,
which Bandag fully supports,” says Bandag
marketing manager Monal Naik.
Bandag has a strict set of criteria to
optimise the retreadability of truck tyre
casings. These include: the selection of
the correct tyre/casing for the desired
application, timeous tyre removal and a proper
tyre inflation maintenance programme.
“Modern premium-quality retreads are on
par with new tyres and will almost certainly
outperform budget tyres. With its multiple ISO
certifications, Bandag is making sure that the
manufactured product has the highest level of
conformity and reliability,” continues Naik.
Bandag offers a guarantee on its
products with a further guarantee against
faulty workmanship or defective materials
used; helping to reduce the impact of waste
tyres on the environment, for a sustainable
future. |FOCUS
*Deon van der Walt is the South African Guild
of Motoring Journalists’ bursar student. He
recently spent a month with FOCUS, where
he was exposed to the local commercial
vehicle industry.
34 |FOCUS| March 2015
Logistics and supply chain
management practitioners are
reporting shortages of up to
64 percent in positions that
require a bachelor’s degree. Even at
operational level, where candidates need
a grade 12, a post-school certificate
or a diploma, companies experienced a
27 percent shortage in 2013.
In South Africa today, the skills shortage
is the fourth-highest supply chain constraint.
This is according to the Council for Scientific
and Industrial Research (CSIR)’s tenth Annual
State of Logistics Survey for South Africa
(2013), which reports that the lack of skilled
personnel, at all levels, continues to be a
major concern to the performance of supply
chain management.
It is a challenge that affects virtually every
one of South Africa’s key economic drivers.
Industries such as mining, manufacturing,
retail and farming, for example, would
be incapacitated without these skills and
services.
Every year, investment in the road, rail,
port and airport infrastructures continues
to be a high priority with billions of rand
invested in various projects in these areas.
In 2013, logistics costs were estimated at
R423 billion, and have grown significantly
over the last four years, when measured
as a percentage of transportable gross
domestic product (GDP) – primarily due to
fuel increases.
Developing efficiencies within end-to-
end supply chain integration is now critical
for strong financial performance, and to
mitigate the effect of volatile fuel costs.
Thus, strategically, investment in logistics
and supply chain management skills would be
a vital contributor to a profitable bottom line.
In such a rapidly developing and changing
industry, skilled practitioners require hard
skills (traditionally taught academically)
and soft skills, but also work experience –
especially if they want to progress in their
careers, and use the benefits of the changes
in the industry to the advantage of their
organisation.
Soft skills are of such importance to
the industry that surveys, conducted by
the University of Johannesburg, found that
practitioners place these skills, particularly
customer-focused management, well ahead
of the required hard skills.
Students, however, prioritise such
skills much further down their lists. This
discrepancy could be accounted for by the
lack of real-world experience in the industry
on the on the part of the students. However,
it does create a gap between the needs of
employers and the skills pool available.
Such a gap results in many candidates,
despite having degrees, not being fully
qualified for a position – especially when
they look to move into the more tactical and
Skills shortages continue to bedevil the logistics and supply chain industry. MARIO LANDMAN, head of
the Institute of Logistics and Supply Chain Management, elaborates
More skilled personnelWanTed:
SUPPLY CHAInMAnAGeMenT
»
??????????????
March 2015 |FOCUS| 35
Future-proofing ourclients supply chains
www.barloworld-logistics.com
To see how our smart supply chain solutions can improve your triple bottom line, call Mike Fanucchi 011 445 1600.
A B
At Barloworld Logistics, we go to great lengths to design, implement, operate and manage smart supply chain solutions.
Smart stands for sustainable, measurable, adaptable, resourceful and transformational solutions.
With innovative software and cutting edge technology we’re able to track, monitor and measure the impact on the environment at every turn.
Simply put, ethical, economical and environmentally friendly solutions. Solutions that reduce costs, increase efficiencies and improve carbon footprints.
While world-class corporate governance and global best practices ensure we create a sustainable future for our clients’ businesses as well as our own.
Our culture of operational excellence enables us to find new ways to minimise waste while maximising productivity, profitability and performance.
36 |FOCUS| March 2015
SUPPLY CHAInMAnAGeMenT
strategic roles of supply chain management. It
is at this juncture that the industry runs the risk
of losing skilled candidates to other courses and
even careers.
While many industry practitioners do
recognise the need for more skills and believe
further qualifications (such as a National
Diploma or Bachelor of Business Administration
degree) could help them, very few are able to
take these traditional routes through academia,
due to financial constraints and those of their
working environment.
For instance, attending regularly scheduled
classes can be difficult for a practitioner with
the type of work schedule common in the
logistics industry. The traditional distance-
learning alternative is also not viable, as this
often does not offer appropriate support.
It is this gap that needs to be filled by
more responsive professional certifications,
graduate training programmes and vocational
associations.
While the South African Production and
Inventory Control Society (SAPICS) Operations
Management Body of Knowledge Framework
(OMBOK) found that the quality of tertiary degrees
in the field was on par with other countries, and
adequately taught the hard skills, professional
certifications and membership of professional
associations lagged behind – and it is through
these institutions that a better understanding of
the soft skills could be developed.
In response to these insights, the Institute
of Logistics and Supply Chain Management
(ILSCM) has developed a number of accredited
qualifications that offer relevant, flexible
education solutions.
Dedicated to the industry and with a depth
of research resources, the ILSCM is able to
respond to changes and developments quickly,
to the benefit of their graduates, practitioners
and the industry as a collective whole.
Although quantitative research is yet to be
published about the impact these courses are
having on the industry, ILSCM graduates, and
companies partnering with the ILSCM, have
reported an overall improvement in relevant
skills, particularly soft skills.
Indeed, empirical evidence is showing that
partnering with education providers is a highly
effective route for companies seeking to build
their skills capacity and improve their overall
performance. |FOCUS
THe PULSe OF AFRICA’S SUPPLY CHAInS
The 37th annual SAPICS
conference and exhibition will be
held from May 31 until June 2, at
Sun City. SAPICS is the premier
educational and networking
event in Africa for supply chain
and operations management
professionals. The conference
offers practical and relevant
information through educational
presentations, case studies and
interactive workshops.
??????????????
March 2015 |FOCUS| 37
Automechanika Johannesburg represents the ideal opportunity to:
� Showcase to the automotive aftermarket in a face-to-face environment where visitors can experience your products or services first-hand.
� Generate sales leads, advance the sales cycle and close sales � Build relationships with prospects and meet new industry role players � Cross-sell existing clients by informing them of products or services they may not be aware of
� Recruit new clients and distributors � Build your brand and increase market awareness of your brand � Launch new products/services or new applications and enhancements of your existing products/services.
Exhibition Focus Areas
South Africa’s Leading International Trade Fair for the Automotive Indus-try targeting Trade Visitors from the Sub-Saharan Region
6 – 9. 5. 2015
www.automechanikasa.co.za
Automechanika Johannesburg is licensed to SA Shows Messe Frankfurt
Cement your position as an industry leader by entering the Innovation Awards staged alongside Automechanika Johannesburg.
Open to entries demonstrating the latest technological advances and innovations the Awards provide a foretaste of the automotive aftermarket of the future.
Enquiries: Wynter Murdoch – [email protected]
Register for the Truck Competence listing and display the decal on your exhibit stand to demonstrate your capabilities in the commercial vehicle sector. Covering the entire value chain of the commercial vehicle aftermarket from parts and components to specialist workshop and collision repair equipment the Truck Competence programme recognises the important role of the commercial vehicle sector.
Enquiries: Philip Otto – [email protected]
Planning of the Automechanika Academy programme is underway in consultation with industry associations and organisations. The programme of conferences, workshops and demonstrations is designed to keep you updated on the latest trends and technologies in the industry.
Enquiries: Robert Kaiser – [email protected]
Entry into the Automechanika Green Directory celebrates the contribution your company is making to safeguard the environment. Companies exhibiting technology, products and services which are environmentally friendly and sustainable appear in the special green directory listing enabling visitors to easily locate environmentally friendly products and solutions.
www.automechanikasa.co.za
Enquiries: Robert, Perusha or Tina Tel: +27 11 494 5003 | e-mail: [email protected]
38 |FOCUS| March 2015
SUPPLYCHAIn
The strength and reliability of the Unitrans
business comes from its core assets –
among them over 9 800 employees in ten
countries, 330 000 m² of warehouse space
and a total fleet of over 3 000 vehicles. These
assets are put to use on behalf of clients in
areas such as transportation, warehousing,
distribution and freight forwarding.
The business also focuses on specialised
solutions in the industries in which it
operates, where its expertise and long-term
relationships have added value to its clients
for decades.
The Unitrans commitment to business
innovation is key to adding value and
adapting to challenging circumstances in
all its core industries. The FMCG industry,
for example, is one of the most competitive
sectors in the market with regard to
transport costs. Unitrans has been
working with one of South Africa’s biggest
international retailers since 2009 and
currently fulfils the role of chief third-party
logistics provider (3PL) for its distribution
operation based in Gauteng, which also
services cross-border operations to
Botswana, Lesotho and Swaziland.
The Unitrans fleet for the retailer
stands at 241 vehicles, with around
610 drivers travelling an estimated
26 million kilometres per annum!
Adding value for the client means
thinking innovatively about the 3PL
processes in place, and making
them more efficient and effective
in the overall management of the
FMCG supply chain.
In the mining sector too, Unitrans has an
unparalleled track record of load and haul and
related services for many established clients.
Here, innovation to continuously improve
transport and supply chain operations is
extremely important to the client’s profitability.
Unitrans responds to this need by adding value
to the core supply chain function in the mining
sector’s load and haul operations.
Innovation here has been focused on
developing high-payload road trains using
Performance Based Systems (PBS) and
the Road Transport Management System
(RTMS). Unitrans is now the biggest operator
of road trains in Africa.
RAY SINGH – managing director, customer solutions development at Unitrans, talks about innovation in
the supply chain solutions industry
the byword is innovAtion
uniTrans;
The supply chain solutions industry
has grown in prominence with the
expansion in global trade over the
last 20 years. Trade flows have
lessened in the wake of the recession and the
net result has been that all major multinational
businesses now understand the importance of
an innovative supply chain strategy.
In the current climate of economic decline
and crisis, however, the supply chain business
environment, across the world, has been an
unforgiving one over the past few years. In
recent times, the dramatic drop in trade
volumes has been coupled with huge volatility
in fuel prices and increases in commodity
prices across the board. Times are tough!
In response, the realisation in most
boardrooms is that the supply chain is a key
element of business strategy and success,
and that an innovative attitude to supply chain
management is vital to the resilience and
sustainable profitability of the business.
This is where innovative supply chain
partners come into their own, and this
supply chain innovation space is the one
in which Unitrans plays. Unitrans is one of
South Africa’s largest and most successful
international companies engaged in the
design, implementation and ongoing provision
of innovative supply chain solutions.
The Unitrans business has a major
African focus, with operational presence
and thriving customer projects throughout
southern Africa, in key industry sectors
such as mining, fuel, chemicals and gas,
agriculture, construction and fast-moving
consumer goods (FMCG).
March 2015 |FOCUS| 39
SUPPLYCHAIn
The road trains operated by Unitrans
have a wide range of supply chain benefits.
They can legally and safely increase payloads
by up to 16 percent, since the trains are
over 40 m long, with a payload of up to
122 t in four side tippers.
They reduce fuel consumption per
tonne distributed, as with greater payloads
comes less need for additional fleet, and
fewer trips. As a result, the road trains
deliver better fuel efficiency than standard
56 t road legal trailer combinations.
The reduction in fuel usage, per tonne
of product transported, translates to
substantial reductions in CO2 emissions – a
factor crucial in communicating the value of
sustainability initiatives to mining company
stakeholders.
Unitrans has 30 heavy-duty road trains
in operation across southern Africa, which
include 16 new-generation road trains in the
mining sector.
An important focus for Unitrans,
currently, is the intellectual capital value
that it can add to these industry service
offerings in a challenging global market.
These include:
• Network design;
• Warehouse design and efficiency;
• Inventory optimisation;
• Distribution optimisation;
• Transportation planning and execution.
In each of these areas, Unitrans offers
its clients a dedicated consulting team,
which is involved in every phase of any
supply chain solution, from design through
to implementation, thereby ensuring
seamless integration of planning with
execution.
The business model employed by
Unitrans is one guided by the intellectual
capital and solution innovation at
work in the business. In all of these
supply chain areas – whether in networks,
the warehouse, inventory or distribution –
a solution design phase is followed
seamlessly by implementation and
management of the solution – incorporating
specialised skills, methodologies and
change management processes – to
ensure optimisation.
Unitrans continually goes beyond its
contractual obligations, in looking to add
value for its clients at every phase of
the solution process. The company’s track
record in its key industry sectors speaks to
the success of the approach – one that is
even more necessary in these challenging
economic times. |FOCUS
uniTrans;
40 |FOCUS| March 2015
RAIL
south Africa’s rail industry often
receives criticism with regard
to its operational standards
and infrastructure (which
isn’t totally unfounded). The industry does,
however, have its highs … A range of tried-
and-trusted F18 low-friction brake blocks,
which have been used on goods trains across
Africa since first being launched locally in
1967, are set to be introduced to the North
American and European markets by DCD
Metpro, a local on-tread, composite railway-
brake-block manufacturer.
“Despite the fundamental design remaining
unchanged for decades, the F18 range
continues to be the most popular solution in
Africa,” says Hlayisani Matelakengisa, DCD
business manager for the rail and industrial
division.
“The only aspect of the design that has
changed is that asbestos was removed
from the composite in 2000; for health and
safety reasons. The continued success is
testament to our capabilities, which we plan
to extend by testing for the North American
and European markets in the foreseeable
future.”
He adds that DCD Metpro has already
achieved measurable success in international
rail markets, particularly in Australia, through
its ARG range of high-friction brake blocks.
These are based on the same concept as the
F18s, but designed for use in higher speed
and friction applications (such as passenger
train and transportation motor coaches).
“The ARG range was launched in 2005,
and is designed and manufactured specifically
for the Australian market,” Matelakengisa
points out. “Since its launch, this range has
proved to be more cost-effective than any
competitor product in Australia. Bearing this
in mind, plans for expansion of the ARG
range into new regions are currently being
considered.”
DCD Metpro boasts the capacity to
manufacture up to 720 000 on-tread railway
brake blocks and 1,4-million brake-block-
backing plates per annum. The Pretoria-based
company currently manufactures 30 products
for passenger, freight, locomotive and mining
railways.
“DCD Metpro is well positioned to double
its output without further investment,” says
Matelakengisa. “In light of this, we will also
focus on long-term expansion in Brazil, Russia,
India and China (BRIC countries) – where
South Africa is a strategic trade partner.”
The rail industry isn’t only expanding abroad,
however, Plasser South Africa and Gulfstream
Energy are keeping our country’s railway
infrastructure in motion … “An essential part
of our service business is the maintenance of
railway lines across the country,” says Deon
Hellberg, financial director, Plasser South
Africa – local partner and agent for Plasser
& Theurer (a heavy, on-track maintenance
machinery designer and manufacturer).
From the manufacture and supply of
new machines and spare parts, technical
support, major component overhaul and
machine refurbishment, through to regular
maintenance, Plasser South Africa ensures
the ongoing operation of South Africa’s railway
transport system.
“It’s a challenging business and one which
demands operational efficiencies across all
stakeholders and preferred suppliers,” says
It’s said that South Africa’s rail industry is but a shadow of its former glory; volumes have remained flat
over the past 20 years and many lines are in a state of disrepair. Our country’s rail industry is, however,
not a lost cause …
bAck on the
raiLs?
March 2015 |FOCUS| 41
RAIL
Hellberg. Key to Plasser South Africa’s ability
to deliver service and maintenance, anywhere
it is required, is the guaranteed supply and
delivery of quality fuel products.
“We use, on average, about 40 000
litres of fuel per month, with each delivery
requiring anything from 10 000 to 20 000
litres,” continues Hellberg. “In addition, with no
fixed depot of our own, the supply of fuel ‘on
the move’, to whatever location we require,
is critical.” The supply of fuel is a volume-
based business, however, it is not always
economically viable for larger players to deliver
smaller quantities.
Plasser South Africa found itself in this
position with its previous supplier (a major
oil company), which was not able to supply
the required volumes to the remote areas in
which Plasser South Africa operates.
“The consequences of this are huge,”
Hellberg points out. “Reliable access to fuel
is critical to our service delivery. Without
it we are incapable of meeting our service
agreements.” Delayed deliveries result in
problematic downtime, leading to both
a loss of productivity and unnecessary
costs, due to machines and maintenance
personnel left idle for several days in remote
locations. Consequently, Plasser South Africa
began researching alternative fuel suppliers …
This led the company to the petroleum
solutions provider, Gulfstream Energy. “After
discussions with Gulfstream in 2010, we
embarked on an initial test run of a few
shipments, after which it was appointed as our
preferred fuel supplier,” explains Hellberg.
Shane Jegels, chairman and CEO of
Gulfstream Energy, adds: “We believe in
‘making business easy’. In the case of Plasser
South Africa, we understand that reliable
access to fuel is essential to the smooth
running of daily operations. To this end, we
are committed to doing everything possible
to ensure timeous delivery of fuel, thereby
avoiding unnecessary downtime and breaks
in productivity.”
Orders are placed electronically with
Gulfstream, which is currently delivering
approximately 40 000 to 50 000 litres of
fuel per month. “It’s seamless and smooth,”
continues Hellberg. “Prior to delivery,
Gulfstream requests GPS coordinates to
confirm exactly where supply is required, and
then arrives on time every time.”
He adds that there are definite advantages
to dealing with an independent wholesaler,
such as Gulfstream. “Unlike bigger corporates,
management is directly involved in daily
operational issues. We have a direct line
to any member of the team, irrespective of
seniority, whenever needed.”
“It’s a win-win relationship,” adds Jegels. “We
look forward to working with Plasser South
Africa as it services our country’s railway
infrastructure for many years to come.”
South Africa’s rail industry certainly isn’t a
lost cause. It is setting its sights on overseas
markets and is forming smart partnerships to
keep the locomotive wheels turning … but only
time will tell if it’s getting back on track, or if
there will remain reasons to rail against this
transport mode. |FOCUS
??????????
42 |FOCUS| March 2015
ITOY
GIANENRICO GRIFFINI brings us an exclusive interview with Ayrat
Mardeev of the Kamaz Master Team, winners of Dakar 2015
the thrills And spills of
dakar 2015
Three Kamaz pilots on the podium
and another Kamaz truck in fifth
position in the final ranking. Did
you expect this result before
the last Dakar?
We worked hard to get good results, but no
one imagined that we will have three places.
We never try to predict events. The most
important thing for us is stable driving.
What are the reasons for this stellar
performance? Is it mainly due to the trucks,
the team, the tactic of your team manager
Vladimir Chagin, or the reliable Liebherr
engines?
All these factors are very important. First,
we are a team. We work together as a
harmonious mechanism; our work is well
coordinated. We work for a common goal
and not for an individual result. The second
reason is very good preparation of the trucks,
but again, this is thanks to the team –
specifically our mechanics and engineers.
We also have a very nice, fast truck.
We’ve used new Liebherr engines to comply
with Dakar regulations. We do not have much
experience with these engines, but all the
improvements and modifications that have
been made by our engineers show that we
are moving in the right direction.
I should also note “the Chagin factor” in our
success. His experience and advice are crucial.
Tell us the story of your Dakar this year.
Was it easier or more difficult than the
2014 rally? What were the most difficult
and demanding stages?
I remember a marathon stage that we drove
for the first time. Eduard Nikolaev and I
already had experience of stages such as
this from when we were crew mechanics. It
was important not to break the car and still
show good results, as we had no help from
our assistance crews that day.
Dakar is always very difficult. The most
difficult part this year was the special stage
in the mountains, when we rose in height.
The special stage started at an altitude
of 3 500 m and we rose up to 4 500 m.
Breaking the engine was a big risk, so we
had to check all the parameters even more
carefully. It didn’t affect our physical state,
as we trained a lot before the rally.
The pace of this year’s rally surprised me.
From the very beginning the first 15 trucks
drove within five minutes of each other. So
any navigation mistake or breakdown throws
you off at the end, and then it becomes
difficult to win back lost time. We didn’t
expect such high-speed special stages,
where the average speed of the truck was
110 km/h – it is a furious pace for a truck,
as the maximum permitted speed for trucks
is 140 km/h. It was unusual.
Dakar 2015 became the fastest rally,
no matter whether we were off-road or not.
The difficulty was that the front cars raised
clouds of dust. It was particularly difficult
??????????????
March 2015 |FOCUS| 43
ITOY
As regular readers of FOCUS know, this magazine has been appointed an associate member of the International Truck of the Year (IToY)! FOCUS is the sole South African magazine to have joined this prestigious body. One of the advantages of this association is access to exclusive articles, specially written for FOCUS by ITOY jury members. This is one such article.
2014
where it was not possible to overtake for
better visibility. Only the vehicle that took
the lead could win at such stages. The race
was very unpredictable. The realisation that
we were the winners came to me only when
I was standing on the podium in Buenos
Aires.
The big technical issue for Kamaz trucks
this year was the Liebherr engine. How
do you judge its performance? Were you
forced to adapt your driving style to the
new powertrain?
It is the second time we’ve used the Liebherr
engine in the rally. The most difficult thing
in the beginning was to get used to the
absence of the engine sound, as the
Liebherr engine is not audible in the cabin.
It is very dynamic, and we were happy with
its technical characteristics. We had no
technical problems with the engine. Once
again, I would like to thank the engineers in
our team for the excellent revision of engine
parameters.
Who among your competitors were the
most challenging?
We are very respectful of all our
competitors. Gerard De Rooy from Iveco
and Ales Loprais from MAN are very fast
drivers and dangerous rivals. Loprais chose
our tactics – he drove stably; trying not to
make mistakes, and if we stopped or began
to “battle” within the team we had a lot of
problems. Hans Stacey (Iveco) is a driver
with a lot of experience. He’s fine on windy,
narrow routes. Martin Kolomy is a good
driver too. He had everything it took to be
on the podium – a fast truck and excellent
driving skills.
What were the major steps in your career
as a driver of rally trucks?
In 2008, I was at the wheel of a race truck for
the first time. It was a stage of the Russian
Championship. I was 21 years old. My first
victory was on the Russian Championship in
Ulyanovsk in 2011. It was a difficult race. The
next big result was a victory at the 2012 Silk
Way Rally and, of course, the second place at
the 2013 Dakar.
My victory is devoted to my father who
died in August 2014. Everything that I have
done, my love for cars and motorsport – it’s
all thanks to him. He was my first coach. In
karting he was my mechanic, my teacher.
My father really wanted me to win. And now
there is the Mardeev name on the list of the
Dakar winners. It is a pity that he can’t share
with us this delightful event, but I think he
feels it and is happy for me. |FOCUS
44 |FOCUS| March 2015
LIGHTBRIGADe
affordability, practicality and a
taste of luxury are key elements
of GWM’s Steed 5E, as it
falls squarely between the
workhorse-orientated DNA of the Steed 5
(on our shores since 2012) and the luxury
appeal of the recently launched Steed 6.
The GWM Steed has matured rapidly
and I just couldn’t get enough of it, with
its abundance of personality and down-to-
earth good looks. The Steed 5E features an
entirely new grille and styling features that
call for a second look. What’s also new are
the side indicators mounted into the mirror
housings and the aerial now integrated in the
windscreen.
The upgraded interior, which significantly
contributes to GWM’s achievements with
the Steed 5E, has a genuine quality feel to it,
with comfortable leather seats and a modern
facia with piano-black finish throughout the
cabin.
When closing the doors of the Steed
5E, the fairly quiet thud gives a feel of
quality. Extra sound-insulation material has
been used to isolate the cabin of the Steed;
reducing vibration and road noise.
The Steed boasts a quality sound
system accessed by a new touchscreen
entertainment interface, which controls the
radio, multimedia system and Bluetooth. It
can all be controlled with relative ease, apart
from the radio, which, for me, took some
getting used to.
The steering wheel still features
remote audio controls. A small problem
that I encountered is the reflection of the
entertainment system in the back window.
This tends to be a distraction when driving
at night. A new, user-friendly climate control
interface has been installed.
GWM has extensively refined the VGT
turbodiesel power plant, which produces
105 kW at 4 000 r/min and maximum
torque of 305 Nm between 1 800 and
2 800 r/min. The reasonably powerful two-
litre engine did not really scream smooth
power delivery; there is considerable turbo
lag in the lower half of the rev spectrum. Get
the revs going, however, and the Steed could
put a smile on your face. The diesel version of
the Steed 5E has a claimed fuel consumption
of 8,9 l/100 km.
The first few gear changes in the morning
feel like what I imagine it would be like to
brawl with a medium sized boa-constrictor.
Once it has been running for some time,
though, gear-changing is surprisingly smooth.
This should improve as the mechanicals are
run in.
Now, you might ask about everyday
usability … The Steed offers plenty of
legroom in the front and back for the
taller folks among us. The steering is height
adjustable. The Steed also has revised rear
seat cushions to improve seating comfort
over long distances.
The rear leaf springs mean that the
ride quality of the Steed 5E can become
somewhat choppy on uneven roads. Still,
considering that part of its identity is that
of a hard-working brute, it is not overly
uncomfortable.
The Steed 5E Xscape features include;
a six-speed manual gearbox, 16-inch alloy
wheels, dual front airbags, height-adjustable
headlamps, and Anti-lock Braking System
(ABS) with Electronic Brakeforce Distribution
(EBD). Side steps complement the appearance
of the premium trim level Steed 5E.
GWM also offers a five-year/100 000 km
warranty.
The GWM Steed 5E 2,0 VGT Xscape,
priced at R274 900, offers exceptional value
for money to anyone looking for the best
of both worlds in the bakkie segment. If
GWM keeps going at this rate, I can’t wait
to see what it has to offer in five years’
time. |FOCUS
*Deon van der Walt is the South African Guild
of Motoring Journalists’ bursar student. He
recently spent a month with FOCUS, where
he was exposed to the local commercial
vehicle industry.
bUsiness And
pLeasure
Chinese manufacturer Great Wall Motors (GWM) is set to create
a stir in the much-loved South African bakkie segment with the new
Steed 5E. DEON VAN DER WALT takes it for a spin
??????????????
March 2015 |FOCUS| 45
Hyundai HD72. Smash through the workload.
www.hyundai.co.za/commercial-vehicles
Turbo Protector•ABS•3-Year/200 000km Warranty and 1-Year/60 000km Service Plan
TH
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ITE
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RA
WIN
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) 45
439/
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45439 Hyundai Commercial Vehicles Incredible Bulk 297x210 E.indd 1 2014/12/09 3:38 PM
46 |FOCUS| March 2015
GLOBALFOCUSGLOBALFOCUS
WeLCOMe TO GLOBAL FOCUSThis is the first in a new
series of monthly features
written exclusively for FOCUS. Our objective
will be to keep you, our reader, fully informed
on the latest developments taking place in the
fascinating transcontinental world of trucks
and buses.
The information that you can expect to
find here will cover technical developments,
emerging new propulsion technologies,
environmental legislation, new and interesting
products and components, market sizes
and participants, manufacturer groupings,
relationships and realignments, and anything
else that will help South Africans to better
understand the dynamics in the global industry
that may have an impact on local vehicle and
equipment suppliers, and users, in the future.
This is how we welcomed readers to the new
column at the beginning of 2006. Apart from
spinning off bus-related news into a separate
Global Bus feature, we’ve kept pretty close to
the objectives we set ourselves back then.
Often, we have stuck our necks out to
predict future outcomes and trends, and
have dared to comment on the wisdom,
or otherwise, of decisions taken in distant
boardrooms. Fortunately, these observations
have usually been fairly accurate, so most of
our readers are still talking to us!
PACCAR – A CHAnGe OF DIReCTIOn?During 2005, some questions emerged
relating to the future sustainability of the
“traditional” American line-haul truck with its
“conventional” bonneted cab, and preferred
selection of outsourced driveline aggregates.
In the midst of all this speculation stands
Paccar Inc.
The first clue that something was changing
was the emergence, during 2004, of DAF’s
FRANK BEETON has written about numerous important industry highlights over the past nine years. In this 100th edition of Global Focus, he recalls some of the key issues, and adds up-to-date comments on subsequent developments
globAl focUs scores A ton!!
nOT OuT! 100
March 2015 |FOCUS| 47
GLOBALFOCUSGLOBALFOCUS
new 12,9-litre engine with prominent Paccar
branding. At the RAI Show held in Amsterdam
during October, 2005, the second Paccar-
branded engine to emanate from DAF, the
9,2-litre PR series, was introduced to the public.
This Euro-5-capable, six-cylinder in-line
power unit uses the SMART high-pressure fuel
injection system, developed jointly by Paccar
and Delphi for the 12,9-litre MX unit, and
passes its exhaust gases through a DeNox
catalytic converter. Available power outputs, at
a maximum rotational speed of 2 200 r/min,
range from 183 kW (250 bhp) to 265 kW
(360 bhp), and the maximum torque rating
will be 1 450 Nm delivered between 1 000
and 1 700 r/min.
Right back in Global Focus 1 we predicted a
significant change in direction for Paccar in
terms of engine selection, and we were spot-
on. Today, Paccar’s own large-displacement
engines remain standard issue in DAF
heavyweights, and are offered as baseline
equipment to Peterbilt and Kenworth buyers.
The MX and PR engines are also
manufactured in both Europe and North
America. The trend towards “in-house”
engine fitment is now firmly entrenched in the
American premium hauler market.
CUMMInS exPAnDS COOPeRATIve BUSIneSSOne of the main questions still engaging
the minds of truck market observers and
analysts concerns the future position of
specialist driveline aggregate manufacturers,
such as Cummins, Caterpillar, Eaton, Dana
and ArvinMeritor, in an era when the major
truck manufacturing groups are working
increasingly towards sourcing the maximum
number of the components making up their
products from within their own families.
This scenario has been largely driven by the
need to comply with the increasingly stringent
and expensive environmental legislation
taking root in much of the developed and
developing world. There can be little doubt that
global players such as DaimlerChrysler and
Volvo have moved into offshore acquisitions,
particularly in the United States (US), to
expand their total volume production bases,
and that the indefinite continuation of the
traditional North American “component
truck”, offering an almost unlimited selection
of engines, gearboxes, axles and suspensions,
is not in their corporate game plans.
Clearly, the specialist aggregate suppliers
need to develop effective counter-strategies
if they are to continue to prosper in such an
environment. Cummins Inc. has entered into
cooperative ventures with Scania AB, Shaanxi
Heavy-duty Trucks, Dongfeng, Kamaz, Iveco,
New Holland, Westport Innovations and Tata
Motors.
These arrangements range from
technology sharing, to joint component
production facilities, to joint production and
marketing of engines, and provide for varying
degrees of visual Cummins identification on
the finished product. At the end of the day,
however, they all impact on Cummins’s global
bottom line results.
The flipside to the increasing adoption of
“in-house” engine fitment by premium truck
manufacturers, was the move by independent
engine builder Cummins to reduce its
dependence on the share of their business
which it had traditionally enjoyed.
As the years rolled out, Cummins
increased its focus on smaller displacement
nOT OuT!
»
GLOBALFOCUS
48 |FOCUS| March 2015
GLOBALFOCUS
engines and emission-control technologies,
and entered into numerous off-shore joint
venture relationships. It even agreed to make
Paccar-branded engines for that group’s
lighter vehicle ranges. That strategy appears
to have worked.
GM SeLLS ITS STAKe In ISUzUThe relationship between General Motors
(GM) Corporation and Isuzu Motors dates
back to 1971, when GM purchased an initial
34-percent shareholding in the Japanese
vehicle and engine manufacturer. Since then,
the arrangement has been restructured a
number of times, with GM’s participation
building up to a high point of 49 percent.
This has been mainly as a result of a number
of subsequent equity injections that were
required to support specific product and
component programmes, executed by Isuzu,
on behalf of the global GM family.
At the end of 2002, following a period
in which Isuzu had experienced substantial
financial losses, the relationship was
completely rearranged, with GM writing
off its 49-percent shareholding, and
subsequently investing US$ 80 million
for a 12-percent holding in a financially
restructured Isuzu. Several projects and
operations were then grouped together
into a joint venture named GMI Diesel
Engineering Limited, which ring-fenced
activities mainly related to the manufacture
and supply of diesel engines to GM
operations located around the world.
Now, at the end of March, 2006, comes
the news that General Motors has been
actively seeking buyers for some of its
remaining 7,9-percent stake in Isuzu. The
reports named industrial group and trading
house Mitsubishi Corporation (which already
holds 0,2 percent of Isuzu shares), trading
house Itochu Corporation (0,7-percent
shareholder) and Mizuho Corporate Bank
Limited (2,8-percent shareholder) as the
interested potential buyers.
Subsequently, the sale of GM’s entire Isuzu
shareholding to these three entities has been
confirmed, accompanied by a statement that
the two vehicle manufacturers would continue
to cooperate in the mutual supply of vehicles
to each other (Isuzu is more of a supplier to
GM than vice-versa).
GM’s exit from holding a financial stake in
Isuzu in 2006 raised many eyebrows, but
was echoed in Ford’s sale of nearly all its
Mazda shareholding in 2010. These events
were a portent of hard times ahead for the
North American giants, with both GM and
Chrysler entering Chapter 11 bankruptcy
protection in 2009.
Isuzu was obliged to re-organise its
US truck business as a result, but has
subsequently retained some ties with GM
through a light commercial product-related
joint venture.
Toyota used the opportunity to take a
5,9-percent stake in Isuzu, but has shown
little appetite to develop any product-based
relationship – seemingly to protect Hino’s
interests. Rumours of some financial
re-engagement between GM and Isuzu still
surface from time to time.
eUROPeAn vAnS ARe GOOD (SHAReD) BUSIneSSIf anybody finds the complex relationships
between vehicle manufacturers difficult to
follow, our advice is: stay well away from any
attempt to unpack the European van scene!
Integral panel vans are big business on that
continent, and, according to recent reports,
growing fast.
In the United Kingdom (UK) alone, during
2005, the van market between 2,8 and
6,5 t gross vehicle mass totalled 144 561
units, a four percent increase on the previous
year, which, in turn, was 20 percent up on the
2003 volume.
Could there be more to come from Navistar International?
GLOBALFOCUS
Global FOCUS is a monthly update of international news relating to the commercial vehicle industry. It is compiled exclusively for FOCUS by Frank Beeton of Econometrix. Do you have a comment or thought you would like to share based on this column? Visit www.focusontransport.co.za and have your say.
March 2015 |FOCUS| 49
GLOBALFOCUS
The potential confusion arises because
most of these vans tend to look very similar,
with short noses and square rears, and vehicle
manufacturers have identified this category as
a low-risk area for cooperative ventures.
Hence, we have the Mercedes-Benz
Sprinter, and Volkswagen LT with common
structures (although the engines are
different), the Sevel joint venture which
builds the front-wheel-drive Fiat Ducato,
Citroën Jumper and Peugeot Boxer models
(again with some variation in power plant
offerings), and the General Motors Europe/
Renault (and therefore, by association, Nissan)
arrangement which produces the Vivaro/
Trafic/Primastar, and Movano/Master/
Interstar ranges.
In 2006, we made the first of our many forays
into the European van community. Since then,
we have provided regular updates as new
generations of product emerged. Most of the
alliances still hold, although Mercedes-Benz
and Volkswagen are headed for “divorce” in
2016.
This may well lead to new alignments,
particularly as Daimler and Renault-Nissan
are progressively rolling out increased levels
of model-specific cooperation, and Fiat has
shown some signs of changing allegiance from
Peugeot/Citroën to Renault. The Mercedes-
Benz Citan light van has already sprung out
of the Renault Kangoo/Nissan 200 family,
and Toyota has started van collaboration
with Peugeot/Citroën. Watch this subject for
future developments.
MAn AnD SCAnIA … CAn IT HAPPen?Since the period around the advent of the new
millennium, when the final shape of the newer
major motor industry conglomerates such
as DaimlerChrysler and Renault-Nissan-Volvo
became apparent, there has been a feeling
among observers of the heavier commercial
vehicle element of the industry that at least
one more major gathering together of
manufacturers was still to take place.
Currently, there are just a few “independent”
players left in the trucking arena, including Fiat-
owned Iveco, Scania (18,7 percent owned by
Volkswagen), MAN (which has recently formed
a technological alliance with also-independent
Navistar International in the USA), Tata (which
bought bankrupt Daewoo’s truck interests),
Hino (owned by Toyota, and cooperating to a
limited extent with Scania) and Isuzu (recently
“divorced” from equity ownership by General
Motors, but with business links still retained).
On Monday, September 18, 2006, MAN
shook up the trucking world when it declared
its interest in acquiring Scania for €9,6 billion,
with the precondition that it wished to gain
control of at least 90 percent of the Swedish
truck maker’s shareholding, before executing
the buyout. Based on historic performance,
the resulting conglomerate would have
become Europe’s biggest truck maker with
roughly 28 percent of the continental market,
edging out global leaders DaimlerChrysler and
Volvo in this key geographic area.
The offer was timed for maximum impact,
with the industry gathering for the opening of
the IAA show in Hannover, arguably the most
important heavy commercial vehicle exhibition
in the world, later that same week.
Almost immediate rejection of the offer
was forthcoming from the Scania board, as
well as its major shareholders Investor AB,
and Volkswagen (which controls 34 percent
of Scania’s voting rights). The sole positive
voice was that of Renault, a five percent
shareholder, possibly as a hangover from
Volvo’s EU-blocked 1999 bid to acquire Scania.
This was only the beginning of a long and
often bitter power struggle, which involved
MAN, Scania, Volkswagen and even Porsche.
Bids and counter-bids were made, and
rejected, until Volkswagen eventually decided
it had enough of the bickering, banged heads
together, and took control of the lot!
Full control of MAN was achieved in 2012,
and Scania in 2014. The Volkswagen group
now threatens to become the world’s largest
vehicle manufacturer and a very significant
force in the commercial vehicle business.
There is still work to be done on optimising the
global footprint, however.
DAIMLeR CHRYSLeR’S GLOBAL enGIne PLATFORM BReAKS COveRDaimlerChrysler has released some
preliminary information regarding its planned
global engine platform for heavy trucks.
Intended to eventually replace the separate
ranges of engines currently manufactured by
Detroit Diesel, Mitsubishi Fuso, and Mercedes-
Benz in Germany and Brazil, the worldwide
Heavy Duty Engine will initially be built as a
14,8-litre unit by Detroit Diesel at Redford,
Michigan, for fitment in Freightliner products.
Manufacture of this version is
scheduled to start during 2007, following a
$US 275-million upgrade of the Redford plant.
This will be followed by a 12,8-litre version
for the European market, which is scheduled
to enter production three years later at
Mannheim in Germany. While manufacture
of the base engines for world markets will
continue at Redford and Mannheim, final
dressing and adaptation to local market
requirements will be carried out at Kawasaki,
Japan, and São Paulo, Brazil.
Ultimately, the six-cylinder in-line HDE family
will be extended to include 9,9, 12,8 and
15,6-litre displacement units, developing from
185 to 480 kW (248 to 644 hp), and up to
3 000 Nm of torque, and is intended to
replace eight different engine types being
produced globally by group companies.
DaimlerChrysler was subsequently dissolved,
and Mercedes-Benz, Freightliner, Fuso and
Western Star grouped together as Daimler
Trucks. The Heavy-Duty Engine Platform
(HDEP) was a very significant development, for
a number of reasons.
First, it explained the rationale behind
removing Detroit Diesel from the global “loose
engine” business to become a sole supplier
to the Daimler brands. Second, it supported
the view that global truck-making partnerships
would only work if large-scale component
rationalisation was the goal. And, third, it
reflected a strategy to break down regional
preferences which enabled the global strategy
to work.
The strategy is still rolling out, but its
success is ensured and major competitors,
such as Volvo, are following suit. »
50 |FOCUS| March 2015
GLOBALFOCUSGLOBALFOCUS
vOLvO BUYS (ALL OF) nISSAn DIeSeLIn the June 2006 Global Focus, we detailed
Volvo AB’s new shareholding arrangement
with Nissan Diesel Motor Company. In essence,
Volvo had purchased a 13-percent controlling
stake in Nissan Diesel out of the previous
Nissan Motor Company shareholding, and
had taken a four-year option to procure the
six-percent balance still remaining in Nissan’s
corporate hands.
Then, on September 25, 2006, Volvo
exercised its option to buy the balance of
the Nissan stock, and also agreed to buy
additional preferred shares in Nissan Diesel
held by Mizuho Corporate Bank, Nissan Motor,
Resona Bank, and Mizuho Trust and Banking.
Upon conversion of all these shares to
common stock, which was due to take place
between April 2008 and April 2014, Volvo’s
shareholding in Nissan Diesel would have
reached an eventual level of 47,4 percent,
making it by far the largest individual
shareholder.
It was also announced that Nissan
Diesel was to be fully integrated into the
global Volvo Truck family, although it would
retain its individual corporate and product
identity, presumably in much the same way
as Renault Trucks and Mack had done when
they had been absorbed into the Volvo Group.
Then, on February 19, 2007, came the
announcement that Volvo had decided to
expedite the process, by offering just over
$US 1 billion for all the remaining Nissan
Diesel shares.
Subsequently, Nissan Diesel’s board of
directors expressed its support of the offer,
and, subject to the necessary approvals
from the anti-trust authorities, Volvo should
secure 100 percent effective ownership of the
Japanese truck maker by the end of March,
2007.
We had long been puzzled by Volvo’s apparent
lack of interest in Nissan Diesel. It first appeared
that this relatively small, but highly competent,
Japanese truck manufacturer, had become
an orphan of the complex Renault-Nissan-
Volvo merger and reorganisation process that
started as far back as 1999.
However, all that was to change, and,
after the transaction described above,
the company was renamed UD Trucks
Corporation in 2010 (presumably to break
the previously too obvious Nissan linkage). It
has since been fully integrated into the Volvo
AB family, and commenced a progressive
process of repositioning to fit better into the
group dynamic.
FORD CARGO LIveS OnAt the beginning of the 1980s Ford was
a significant force in the South African
truck market. Its D Series cruiserweights,
built in the UK, had a loyal following in the
local distribution and public sectors, while
the Louisville heavy haulers from Kentucky,
USA, competed strongly with other brands
offering the same Cummins/Fuller/
Rockwell driveline aggregates that were
highly popular with long-haul truckers.
However, by the end of that decade,
Ford was out of the local heavy truck
business, and was only offering a badge-
engineered Mitsubishi Canter for nominal
participation in the medium commercial
segment.
Despite the sale of Ford’s European
truck interests to Iveco, and the subsequent
disposal of the Louisville Line to Daimler,
Who could forget the MAN/VW/Scania saga?
March 2015 |FOCUS| 51
GLOBALFOCUSGLOBALFOCUS
that renamed it Sterling, in 1997, the
Cargo name, and shape, has not died. It
still lives on in vehicles sold by Freightliner
in the US, that took over the Sterling
version when that brand was axed in 2009,
and Ashok Leyland in India, that obtained
rights to the design through its earlier
relationship with Iveco.
Even more surprisingly, Ford has
continued producing recognisable Cargo
products, under various nameplates, at Ford
operations in Turkey, Brazil, Argentina and
Venezuela. This information has all emerged
in research since our attention was drawn to
an announcement, in May, that a completely
new Ford Cargo series was being launched in
South America.
We still don’t know the full extent of the
importance of this thread, which first
surfaced in mid-2011. We subsequently
discovered that it had links to Ford’s truck-
related activities in Turkey and China,
and suspect that it signals a rekindling
of the manufacturer’s involvement in
the broader global truck market.
Ford has changed its global profile
substantially since adopting its “One
Ford” strategy in 2006, and has
also moved significantly forward
on the integral panel van front.
Watch this one carefully!
nAvISTAR – THe GOOD, THe BAD AnD THe UnCeRTAInLike many people in the South African truck
industry, Global Focus continues to be
puzzled by the uncertainty surrounding the
fate of International trucks in South Africa.
Navistar’s recent litany of ill fortune started
with the termination of its long-running
arrangement with the Ford Motor Company
to supply PowerStroke diesel engines for the
latter’s F-Series Super Duty pickups and van
models.
Just prior to that settlement, however,
the industry was abuzz with news that iconic
yellow metal manufacturer Caterpillar Inc.
had agreed to cooperate with Navistar on
engine platforms, and the introduction of a
Cat-branded vocational heavy-duty truck in the
North American market.
This resulted in the formation of a 50/50
joint venture, named NC², which was also
intended to pursue global commercial truck
opportunities overseas, with target markets
identified as Australia, Brazil, China, Russia,
South Africa and Turkey.
Shortly thereafter, plans also emerged
for global cooperation with Jianghuai
Automobile Company (JAC) in China,
recognising the growing importance of
China as a market and manufacturing
base for both trucks and engines, and
the consolidation and expansion of the
Mahindra Navistar Automotives Limited
joint venture in India, which had first been
established in 2005.
However, in September 2011, there was
a surprise announcement that NC² was to
become a wholly owned Navistar subsidiary,
which, presumably, ruled out subsequent
direct involvement from the Caterpillar
company, other than its continued sourcing
of the Cat-branded vocational trucks for the
North American market, and the offshore
use of “Cat” branding on certain products,
namely a series of International-built truck
tractors for the Australian market.
Subsequently, Navistar International
Corporation also announced the sale of its
shares in Mahindra Navistar Automotives
Limited, and Mahindra Navistar Engines
(Private) Limited, to its erstwhile Indian
partner, Mahindra & Mahindra Limited.
Thus, over a short period, a highly
promising global expansion strategy
seemed to have disintegrated, with only the
JAC arrangement, covering the Chinese
manufacture of Euro-5 MaxxForce engines,
still in force.
By 2014, we had become aware that
Navistar International had very serious
corporate issues related mainly to non-
compliance, by some of its engines, to US
emission requirements.
As detailed above, an ambitious earlier
strategy of global expansion through joint
ventures had unravelled, and we even lost the
iconic International brand as a supplier of new
trucks to the South African market.
We continue to be puzzled by Navistar’s
efforts to build a presence for Cat-branded
trucks in Australia, while the 100-unit per
month South African business was just
allowed to fade away. Maybe the final chapter
in this most unfortunate saga has yet to be
written! |FOCUS
There is still much to come from Ford’s ongoing truck-related activities.
Global FOCUS is a monthly update of international news relating to the commercial vehicle industry. It is compiled exclusively for FOCUS by Frank Beeton of Econometrix. Do you have a comment or thought you would like to share based on this column? Visit www.focusontransport.co.za and have your say.
52 |FOCUS| March 2015
HAULSSHORT
DOnGFenG-vOLvO Jv OFFICIAL
HALF A TOnne OF STeALTH
Dongfeng Commercial Vehicles Co., Ltd. (DFCV) was officially
established at the end of January; exactly two years after
the Dongfeng Motor Group and AB Volvo signed a master
cooperation agreement to form a 55/45 commercial-vehicle
joint venture in China.
According to DFG chairman, Xu Ping, the establishment
of the new joint venture will enhance the competitiveness
of DFCV’s core business and strengthen its research and
development expertise in complete vehicle and key powertrain
components. It will also actively expand its overseas business,
which will increase the competitiveness of the Dongfeng brand
in the global market.
Utilising the technologies and expertise of both shareholders,
DFCV will develop, manufacture and sell Dongfeng-branded
vehicles in the medium- and heavy-duty truck, bus, special-vehicle
chassis, engine and transmission sectors. The company will
serve both domestic and overseas customers and develop its
operations to meet the needs of a growing overseas customer
base.
Olof Persson, president and CEO of Volvo, says: “The
establishment of DFCV entails a fundamental change in the
Volvo Group’s opportunities in the strategically key Chinese
truck market, which is the largest in the world. Together with
Dongfeng, we will build a globally competitive company with
excellent potential for growth and profitability inside and outside
China.”
At the launch ceremony, DFCV announced its strategic vision
– From Chinese Dongfeng to global Dongfeng – with a three-
step roadmap to: remain a leading Chinese truck brand; develop
a solid presence in key growth markets; and, in due course,
enter mature markets and become a globally recognised and
respected brand.
“DFCV will cooperate based on the principles of respect,
trust and win-win. We are dedicated to strengthening our
leading position in China and making Dongfeng Trucks a well-
known global brand,” concludes Huang Gang, president of DFCV.
Nissan has launched the NP200 Stealth, which it says has “head-turning
looks” (despite the name) and will combine the practicality of the NP200 with
a unique design and luxury upgrades.
It comes standard with air-conditioning, anti-lock braking system (ABS) and
two airbags. It will also be identified by its special colour scheme, featuring
dark grey techno paint. A nudge bar with a darkened steel finish is added to
fit below the colour-coded grille frame. Nissan has further extended the gap
between the standard NP200 and the Stealth by fitting charcoal black alloy
wheels with red accents in the hubs, dark side and rear fitted Stealth decals
and dark tinted smash-and-grab protected windows.
Thoughtfulness also extends to the interior of the NP200 Stealth. Nissan
has added an Alpine radio with Bluetooth and USB connectivity. The seats are
upholstered in special eco leather with Stealth-embroidered logos.
It features a 1,6-litre petrol engine and maintains its payload of 800 kg.
The R168 000 price tag includes Nissan’s six-year/150 000 km warranty.
Rodney Selesnick has joined the team at Powerstar as senior head of sales,
bringing with him more than 15 years’ experience in the motor industry,
especially in sales, parts and services. “Powerstar has complete faith in
his abilities and leadership skills, and looks forward to a great future, with
increased growth in the business,” says Bob Wang, Powerstar CEO.
“I intend to grow and strengthen the dealer network and will also focus on
sales training, to ensure that the sales team and our dealers are up to speed
with our product offerings. This will ensure that we can offer our clients the
best possible sales and aftermarket service,” says Selesnick.
“It is going to be a challenging year, off the back of previous mine
strikes and current power shortages. However, Powerstar is extremely
optimistic about potential growth in our market segment, especially since the
introduction of the new Powerland product range, which offers both highly
affordable transport solutions, as well as aesthetically pleasing lines,” he adds.
Selesnick’s appointment came after Mark Beukes left the company. “Mark
brought about many positive changes to the business and its operations, which
are evident in his success and track record in terms of sales volumes. Mark
was always positive about the business and was a great ambassador for the
Powerstar brand,” says Wang.
Xu Ping and Olof Persson make the Dongfeng – Volvo joint venture official.
neW BLOOD AT POWeRSTAR
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March 2015 |FOCUS| 53
SHORTHAULS
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54 |FOCUS| March 2015
SHORTHAULS
FORD exPAnDS vAn RAnGe
Good news for fans of the “Blue Oval!” The Ford Motor
Company of Southern Africa (FMCSA) has extended its
popular Transit Custom and Tourneo Custom range,
adding three all-new models.
The Tourneo Custom Limited short wheelbase (SWB)
has been introduced to meet customer demand for a
high-powered and more luxurious version of this model.
It uses a more powerful 2,2-litre Duratorq TDCi engine,
rated at 114 kW of power (at 3 500 r/min) and
385 Nm of torque (at 1 600 r/min). It’s claimed to
consume 6,5 l/100 km on the combined cycle.
This model is further distinguished by its high level of
standard specification, including: full exterior colour coding,
automatic headlamps, rain-sensing windscreen wipers,
an electrochromatic rear-view mirror with integrated
camera display, leather seats and side rear window blinds.
Only available in SWB configuration, this model retails
for R485 000.
The Transit Custom Kombi Van – available in Ambiente
long-wheelbase (LWB) and Trend SWB configurations
– has been added to appease buyers that require
load-lugging ability as well as the capability to safely
accommodate passengers.
Both models can seat six people, while the
Ambiente LWB model offers 4,35 m3 of load
space. The SWB Trend model offers 3,47 m3,
accessible via dual side loading doors with running
boards.
Standard specification closely mirrors that of the
current Transit and Tourneo Custom Ambiente and
Trend models. The two models are priced at R385 000
and R397 000 respectively.
BRIGHT STAR ReveALS 2014 ReSULTS
Mercedes-Benz South Africa (MBSA) revealed its annual revenue
for the 2014 financial year at TruckStore in Centurion during
February. The MBSA group, a subsidiary of Daimler AG, reported
a five-percent increase in revenue with a total income of over
R45 billion as opposed to an income of just over R43 billion in the
2013 financial year.
“Although 2014 has seen growth, we had to prepare ourselves
for the future, which also costs money. Another factor was the
headwind we experienced in the exchange-rate situation,” explains
Herbert Werner, CFO for MBSA.
The Daimler commercial vehicle business delivered an
excellent performance during 2014. The Daimler truck division
(including Mercedes-Benz, Freightliner, Fuso and Western Star)
sold over 4 250 units during 2014, which was an increase of two
percent over the previous year. Mercedes-Benz trucks on its own
revealed an exclusive growth of 8,25 percent, outperforming the
overall market growth of 5,18 percent.
Kobus van Zyl, executive director Daimler Trucks and Buses
South Africa, adds: “With the launch of the Fuso Canter LIFT,
Daimler Trucks and Buses achieved the best sales for Fuso in
the past seven years, offering customers a truck that sets the
benchmark in safety and economy.”
Despite a two percent decline in sales during 2014 for
the Daimler bus division, it still supplied the Go George public
transport project with a total of 64 busses. All the buses feature
Euro-5 engines.
“We are delighted with the commitment to public transport
shown by government through the increased number of tenders
published over the last 12 months,” says Van Zyl. “During this year
we will commence with the delivery of compressed natural gas
(CNG) and dual-fuel buses,” he continues.
The van division also has a lot to be excited about this year,
with two new Mercedes-Benz
vans arriving on South African
shores in 2015. The V-Class
is expected to arrive in
South Africa in June, with
the new Vito following closely
in July.
“The introduction of the
V-Class is testament to our
mandate to continuously
increase functionality, comfort
and style across our range
of vehicles. Its versatility
and safety credentials will
certainly ensure that this
vehicle becomes a future icon
among South Africans,” says
Nicolette Lambrechts, vice-
president of Mercedes-Benz
Vans South Africa.
Above: Arno van der Merwe, CEO and executive director; manufacturing, for Mercedes-Benz South Africa (left) and Kobus van Zyl, executive director, Daimler Trucks and Buses South Africa, show off a special Freightliner Argosy.
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March 2015 |FOCUS| 55
SHORTHAULS
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Join us as the trucking fraternity comes together once again to discuss, debate and ponder over the challenges, opportunities and idiosyncrasies of the trucking industry. Centered on trucking and themed “Truckcentricity” - this year’s conference takes place over three days at Champagne Sports Resort situated in the tranquillity of the Central Drakensberg.
“Truckcentricity” will showcase the following:
• Practical implementation of the consignee/consignor legislation • The BBBEE Sector Code for the Road Freight & Logistics Industry • Road safety - the cause & prevention of Accidents • Greening the trucking industry - Lessons from the USA • Meeting Supply Chain Expectations • Impact of the Power Crisis in the Road Freight Industry • An analyst’s view on the bond market downgrade & stability & volatility of our labour market
For more information please contact Shantal on 011 974 4399 or email [email protected]
56 |FOCUS| March 2015
SHORTHAULS
SUBSCRIBE TO FOCUS On TRAnSPORT AnD LOGISTICS
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Vartan Vartanian (left) and Ian Cillié celebrate 100 years of SKF in South Africa.
SKF HITS 100
April 12, 1914, marked an
auspicious day on South Africa’s
mining and industrial calendar when
SKF opened its doors at number
23 Pritchard Street, Johannesburg.
This global knowledge engineering
company, then known as SKEFKO
(South Africa) Ball Bearing Company
Limited, went on to become Africa’s
market-leading specialist in the
delivery of innovative, world-class
product and service solutions.
To celebrate this 100-year
milestone, SKF South Africa
hosted a special customer day
in the Solutions Factory based at
the company’s headquarters in
Boksburg, Gauteng.
The formal proceedings included
presentations by SKF South Africa’s
managing director, Ian Cillié, who
also introduced SKF president:
industrial market regional sales and
services, Vartan Vartanian.
Special guest, economist Mike
Schussler, provided a glimpse into
the economic future of South Africa
and the rest of the African continent.
After key SKF customer,
Vesuvius, shared the company’s
SKF experience, SKF Solutions
Factory manager, Sarel Froneman,
invited guests on a guided tour
through the facility to experience
SKF’s engineering knowledge, core
technologies and capabilities – all
combined under one roof.
CROWn WORLDWIDe CeLeBRATeS 50 YeARS
In February, Crown Worldwide, the largest private
logistics company in the world, celebrated its 50th
anniversary with festivities that spanned the globe.
The company was launched by founder Jim
Thompson from a tiny cubicle in Yokohama, Japan, in
1965, but it has grown into a corporate giant with a
turnover of more than US$ 800 million (R11,5 trillion).
It now provides transportation, mobility and
relocation services, logistics and storage services in
some 60 countries. Its brands include Crown World
Mobility, Crown Relocations, Crown Fine Art, Crown
Records Management, Crown Logistics and Crown
Wine Cellars.
Thompson, an American entrepreneur, who is
based in Hong Kong, marked the anniversary on
February 4, by presenting the mayor of Yokohama,
Fumiko Hayashi, with special tributes to celebrate the
founding of his business in the Japanese city.
He said: “I started the company in 1965, from
small beginnings and with very little capital – so to see
it grow into an international global business is very
special. It’s really a huge anniversary that I didn’t think
I’d ever see. I’m very proud of all the people that helped
us to get to this point.”
Thompson’s visit was the first in a long list of
events to mark the landmark anniversary of Crown
Worldwide. Each of the company’s 265 offices across
the world celebrated in their own way, including taking
part in a “Golden Relay” of events to raise money for
charity.
March 2015 |FOCUS| 57
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nAAMSA
Light Commercial Vehicles < 3 501 kg Total: 13 460AMH 624Fiat Group 49Ford Motor Company 2 428GMSA 2 346GWM – estimate 250JMC 54Mahindra 172Mazda South Africa 87Mercedes-Benz SA – estimate 18Mitsubishi Motors SA 43Nissan 2 500Peugeot Citroën SA 13TATA 146Toyota 4 287Volkswagen SA 443
Medium Commercial Vehicles 3 501 – 8 500 kg Total: 637AMH 11Fiat Group 3Ford Motor Company 14GMSA 106Iveco 65JMC 23Mercedes-Benz SA – estimate 166Peugeot Citroën SA 2TATA 40Toyota 85Volkswagen SA 105Volvo Group Southern Africa 17
Heavy Commercial Vehicles 8 501 – 16 500 kg Total: 280FAW 39GMSA 51Iveco 4MAN 8Mercedes-Benz SA – estimate 40TATA 35Toyota 55Volvo Group Southern Africa 88
Extra-Heavy Commercial Vehicles > 16 500 kg Total: 532Babcock DAF 16FAW 9GMSA 36Iveco 62MAN 55Mercedes-Benz SA – estimate 288Powerstar 17Scania 133TATA 29Toyota 23Volvo Group Southern Africa 152
Buses > 8 500 kg Total: 72GMSA 1Iveco 2MAN 45Mercedes-Benz SA – estimate 15Scania 11TATA 7VDL Bus & Coach 2Volvo Group Southern Africa 4
*Source: National Association of Automobile Manufacturers of South Africa (Naamsa).
cOMMerciaL vehicLe saLes repOrT fOr January 2015Note: For the time being, Great Wall Motors SA (Pty) Ltd (GWMSA) and Mercedes-Benz SA (MBSA) will only report aggregated sales data. The GWMSA and MBSA commercial vehicle market split volumes are estimates based on historical trends and forecasting techniques. The totals listed below do not include MBSA figures.
On bus and cOach
Cape Town’s BRT a leader in Africa
Volvo buses are electrifying
how
helps Move cApe town
gOLden arrOW
60 |FOCUS| March 2015
BUSInDUSTRY
it was announced last year that,
despite its reputation as a mecca for
the jet set to get away from it all, Cape
Town is officially South Africa’s most
congested city. TomTom’s fourth annual
global traffic index measured over 95 000 km
of roadways in South Africa. Cape Town with a
congestion level of 27 percent, ranked 33rd
out of 138 global cities measured.
(You’re probably wondering about
Johannesburg, well it measured 25 percent
and was rated the 48th most congested
city. That’s still nowhere as bad as the most
congested city, Moscow, at 74 percent.)
Chances are that Cape Town will hold on
to its new title when the report is repeated
this year. Clearly, the city’s residents are
increasingly in need of public transport.
“The bus industry in the Cape Metropole
is undergoing significant changes at the
moment as further phases of the City’s bus
rapid transit (BRT) system are introduced.
Despite this, there is still a significant under-
provision of public transport options for
thousands of Capetonians,” says Francois
Meyer, GM for Golden Arrow Bus Services
(GABS).
GABS is Cape Town’s oldest operating
bus company. In 2013, it became an official
vehicle operating company (VOC) for the City
of Cape Town’s MyCiTi service. Through its
subsidiary, Table Bay Rapid Transit (TBRT), it
operates the trunk service along the Atlantic
corridor from Table View to the central
business district (CBD), as well as services
from the CBD to Sea Point and Camps Bay.
GABS is, however, operating at capacity,
says Meyer. With the city’s increasing
congestion and urban sprawl, adhering
to timetables is becoming an increasing
challenge, requiring more resources to
operate existing services.
“There is a dire need for additional buses.
On a national, provincial and metropolitan
level there are severe financial constraints,
which are delaying implementation of new
and additional services,” he notes.
Clearly it is now more difficult than ever
to provide the service commuters expect.
How, among obstacles like increasing
congestion levels, drivers’ strikes
and volatile fuel prices, does one offer
consistent service levels to commuters
who desperately need reliable, efficient
ways of getting from A to B?
For GABS, part of the solution is to
implement stringent cost controls and
With increased congestion levels and heightened commuter needs, Cape Town is certainly in the transport
spotlight. We speak to one of the city’s most prominent operators, to see how it is handling the scenario
tiMeschanging
March 2015 |FOCUS| 61
BUSInDUSTRY
increased internal processes of quality
management.
“Operators of public transport services
have to be extremely disciplined in every
aspect of the service and, at all times,
focus must be on the passenger and what
the passenger wants. We have learned
through our 154 years that the only way to
offer consistent, high-quality services is to
micromanage every aspect in the logistics
chain,” Meyer points out.
The need for reliable, safe, cost-effective
transport therefore drives the GABS
business. The company’s approach to change
and innovation is to balance it with the
specific needs of its passengers. That said,
in its drive for increased efficiencies, modern
technology is beginning to play an increasingly
important role.
“The current trend is to move towards
automation in terms of on-board operating
and maintenance systems. This has opened
a world of possibilities for diagnostics and
recording statistical information that can
be used to better understand our fleet.
Electronic ticketing systems are also
being investigated, and Golden Arrow is
concertedly renewing its fleet and testing
new vehicles in the process,” Meyer
remarks.
Aside from GABS, Meyer points out
that there are critical issues facing the
South African commuter bus industry, which
government needs to address.
“Changes to strategic personnel within
national government departments have led
to a loss of institutional knowledge and lack
of policy formulation. Ideally, personnel should
enjoy a longer tenure in order to ensure
continuity.
“In this vein, policy finalisation and the
implementation of long-term operating
contracts is the single most important factor
affecting bus companies in this country …
Operators desperately need security to invest
in their businesses, which these will give,”
he says.
If there is one city in the country that
currently requires its transport operators
to go above and beyond, it’s Cape Town. In
conclusion, Meyer offers some friendly advice
to local bus operators.
“First, the operator’s business has to be
on a sound footing and healthy at its core.
Operators then need to be in touch with
the environment that they serve. They need
to have good relationships with role players
in the industry, and should also play an
active role in institutions such as universities,
chambers of commerce and industry
associations in order to keep abreast of
trends.
“In addition, operators need to employ
the right kind of people with the right skills to
be able to manage new developments in the
industry,” he concludes. |FOCUS
62 |FOCUS| March 2015
GLOBALBUS
back in 2013, we reported
on Volvo Bus moving beyond
hybrid drivelines to the “plug-
in” system, where battery
recharging could take place independently
of the normal hybrid’s internal combustion
engine. By then, the concept of hybrid and
alternative driveline buses had already gained
considerable momentum.
Field tests of the new plug-in hybrid
system commenced in Volvo’s home town
of Gothenburg, Sweden, during May 2013,
using three test buses equipped with roof-
mounted collector gear.
The parallel hybrid system, carried over
from the original Volvo Hybrid design, made
it possible for the bus to operate exclusively
on electric power at lower speeds, and
progressively bring in the on-board, four-
cylinder diesel engine at higher speeds, or
for recharging the batteries.
Subsequently, the Volvo Group announced
that it was also studying inductive charging
technology, where the vehicle draws current
from under the road surface, and that it was
developing a proposal to construct a 300 to
500 m electric road to test the concept – also
in its home town of Gothenburg, during 2015.
The proposed programme was to
include the building of a section of road
equipped with wireless charging technology,
and to provide vehicles which use on-board
batteries to receive the available charge
while passing over the enabled section of
“electric road”. It has subsequently been
announced that one of the stops on this
proposed ElectriCity emission-free route is
to be placed inside a building.
Late last year, Volvo Bus signed a
global partnership agreement with ABB
Technologies of Switzerland to secure
the supply of standard-based e-bus fast
chargers for electric-hybrid and full-electric
buses. The associated automatic connection
system will be located in the bus roof,
and will connect with the fast charger at
selected charging stops.
The first joint project to be executed
under this agreement will involve the
operation, from 2015, of 12 Volvo Electric
Hybrid buses by Sales-Lentz in Luxembourg.
This operator was the first European user of
Volvo Hybrid buses in 2009, and has clearly
embraced electric buses as its intended
direction for the future.
Volvo Buses, in turn, has indicated that
it has sold almost 1 600 hybrid buses
to date, and is moving towards increased
electrification of its products, to provide
society with full electro-mobility. To this end,
it launched its 7900 Electric Hybrid bus
at last year’s IAA show in Hannover, thus
industrialising the plug-in technology that
had previously proved to be successful in the
2013 Gothenburg test.
This model differs from the earlier 7900
Hybrid low-floor bus in that it has a larger
battery package, and a collector installed in
the roof. Battery charging is carried out at
route termini, and can be completed in six to
ten minutes. Volvo claims that noise levels
of its Electric Hybrid (at some 65 decibels),
is similar to normal conversation levels.
Series production is due to commence in
early 2016.
FRANK BEETON reports that Volvo Bus is to start full production of hybrid-electric buses in 2016, and
on the progress of India’s urban bus fleet renewal programme
fUll electrificAtion for
vOLvO bus?
March 2015 |FOCUS| 63
BUSSTOPS
InDIA’S URBAn BUS FLeeT ReneWAL
In December 2005, the Indian government launched
the Jawaharlal Nehru National Urban Renewal Mission
(JNNURM), as a wide-ranging programme intended,
through a process of modernisation, to improve the
quality of life and infrastructure in the country’s major
cities.
The initial phase ran until March 31, 2014. It has
subsequently been followed by JNNURM-II, which was
initially planned to commence in the 2013/14 fiscal
year, but was deferred to the 2015/16 budget period to
accommodate the Indian general election.
Part of the scheme involves the acquisition of large
numbers of new city buses by state transport undertakings.
This has resulted in the placing of substantial orders on
India’s two major domestic bus manufacturers; Ashok
Leyland and Tata Motors.
The Ashok Leyland share of the business is made up
of some 4 000 buses at a value reportedly equivalent to
€190 million (R2,53 billion).
The vehicles to be supplied are a mix of JanBus,
JanBus Midi and Viking SLF models, which are being
delivered to 22 state transport undertakings including:
Calcutta State Transport Corporation; Bangalore
Metropolitan Transport Corporation; Andra Pradesh
State Road Transport Corporation; Jaipur City Transport;
and Pune Mahanagar Parivahan Mahamandal Limited.
Readers may recall that we reported on the launch of
the 12-m JanBus and eight-metre JanBus Midi models in
mid-2014, and noted that they provided a slightly different
perspective on front-engined bus design.
In pursuing a single-step entry and constant low
floor height of 650 mm, Ashok Leyland had opted for
a completely built-up configuration, employing integral,
chassisless construction. This eliminated the cranked
chassis frame that was traditionally used for low-floor bus
designs and the associated capacity-robbing longitudinal
seats over front and rear axles. The JanBus models are
built at Ashok Leyland plants in Ennore and Bhandara.
The Tata Motors portion of the business consists
of more than 2 700 city buses, of a type specifically
designed for the JNNURM programme. They are equipped
with locally-built 6,7-litre Cummins ISBe engines, driving
through Tata six-speed overdrive manual transmissions,
or alternatively, an Allison full-automatic.
The bodies feature an extra-wide passenger entrance,
400 mm floor height, front suspension kneeling function,
closed-circuit television cameras, and an automated
system that announces details of routes, stops and
adjacent services. These buses are being built at joint
venture Tata Marcopolo’s Dharwad and Lucknow
facilities. |FOCUS
MYCITI IS TOPS In AFRICA
Despite the seemingly endless slew of bus drivers’ strikes in South
Africa, the City of Cape Town’s MyCiTi bus rapid transit (BRT) system
has something to be proud of. In January it was recognised, by the
Siemens African Green City Index, as a leader in the field of African public
transport systems.
Cape Town is among the top cities in the Index for the length of
superior forms of transport, such as metro or BRT lines.
According to the MyCiTi website, the report makes specific mention
of the historically underserved West Coast region, the prevalence of
minibus taxis and private vehicles, as well as the poorly maintained rail
system.
“It is with these challenges in mind that the City chose to roll out the
service to the West Coast region first, particularly the previously isolated
areas of Dunoon and Atlantis. The expansion of the service between
the economic centres of Cape Town, Claremont and Wynberg, and
the informal settlements in the south east part of the metro, is also a
necessary development,” it states.
The report rates other key city domains, such as waste management
(including reducing, reusing and recycling waste), environmental
governance, air quality and water as being above average.
The City’s land use practices were also rated well above average –
making Cape Town the only African city to achieve this rating.
“The creation of an inclusive, world-class public transport system,
and of spaces for families to enjoy, or for commuters to travel through
safely en route to their destination, is part of this administration’s aim
to provide facilities, which make all of the people of Cape Town feel at
home,” notes MyCiTi.
64 |FOCUS| March 2015
HOPPInGOFF
Vaughan Mostert developed a love for public transport early in life, which led to a lifelong academic interest in the subject. He recently retired as a senior lecturer from the Department of Transport and Supply Chain Management at the University of Johannesburg. Through Hopping Off, Mostert leaves readers with some parting food for thought as he continues his push for change in the local public transport industry.
Most comments surrounding
the e-toll report have,
unsurprisingly, been
negative. One newspaper
summed it up quite neatly: “the can has just
been kicked down the road once more”. True,
but let’s cut the panel some slack. Given
the messy run-up to the crisis now facing
the South African National Roads Agency
(Sanral), did we expect anything more than
a patchwork of suggestions that satisfy no
one?
Considering the short timeframe allowed,
this report is a huge improvement on the
mechanistic, formula-based transport “studies”
that have accompanied projects like the
Gauteng Freeway Improvement Project (GFIP),
Gautrain and bus rapid transit (BRT).
The e-panellists have at least emphasised
the human impact of transport schemes – a
refreshing departure from the engineering-
based approach. Who would have expected a
quote from the Moral Regeneration Movement
as early as page three?
One of the main themes of the report is
the lack of alternatives to e-tolls. The biggest
problem, by far, is the pathetic state of public
transport throughout South Africa – the panel
was clearly stung by the condemnation of
inadequate public transport by different groups
representing civil society.
This column has repeatedly stated that
better public transport would reduce the need
for additional road space. We have been fed
the nonsense that, because traffic is growing
at seven percent a year, we need high-speed
railway lines and additional lanes on the
freeway.
We have never bothered to challenge this
myth, resulting in the crisis we now face. Why
is traffic growing at seven percent a year? Well,
as soon as people earn R6 000 a month, they
start using cars. Why? To escape our appalling
public transport. By the time people earn
R20 000 a month, almost all of them go to
work by car. That is our problem, but the report
fails to make the point …
Sadly, it shoots itself in the foot as early
as page seven when it proposes: “Complete
exemption for low-income vehicle owners … this
would cater for students at tertiary institutions
who do not have access to public transport.”
The last thing we should do is encourage
low-income people to use cars! We should
be doing everything to encourage all people,
not only those with low incomes, to use public
transport!
The reference to students is also baffling.
I’ve previously suggested that this group should
be given a discounted bus/train pass for travel
throughout the province. We can’t do that,
however, as there is no provincial network
of formal public transport in Gauteng, nor
anywhere else in South Africa.
Although it says all the right things about
the need to coordinate public transport, a
traffic authority, through ticketing, and so on,
the report is still too polite. Presumably with an
eye on its sponsor, it tells us that “the Gauteng
Provincial Government (GPG) has begun to
make progress in the long battle against
transport inefficiencies and inequalities.”
Nonsense! Let’s highlight the appalling
record of the GPG in public transport …
In 2001, a Council for Scientific and Industrial
Research (CSIR) report was sent to the GPG
recommending a new bus route pattern for
Soweto and surrounding areas. Nothing came
of the report. It needs to be revived.
In late 2007, the GPG created a body called
the Gauteng Transport Management Authority
(of which I was a member). It was disbanded in
2008. The GTMA again submitted the Soweto
report, which was again ignored.
In 2013, the GPG produced a 25-year
transport plan. The public transport component
of the plan refers to 164 bus routes that need
to be introduced. These 164 routes require
8 000 new buses costing R24 billion, plus at
least another R14 billion for bus stations on
740 km of proposed busways.
I suggest that this scheme is as bogus
as e-tolling, Gautrain, and the different BRT
schemes. We can start to achieve the same
results at far lower cost by reorganising the
2 500-odd buses that fall under the GPG’s
control.
While neglecting the basics, the GPG has
nevertheless managed to expend huge effort
and resources on giving us Gautrain, which
costs the taxpayer R77 for each passenger
trip!
Finally, we return to the dismal role of the
academic world in the area of public transport
education, which the e-toll report delicately
refers to as an “emerging field” (page 179).
That’s a nice academic way of saying that we
are clueless. Are we doing anything about it?
Let’s scrap e-tolls, but leave the gantries as a
monument to incompetence, mismanagement
and neglect. Pay off the creditors, raise the
fuel levy, “sort out public transport” (page 182)
and then see what happens. We might be
pleasantly surprised. |FOCUS
What may come of the e-toll
report?
WOrThthe pAper it’s printed on?
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March 2015 |FOCUS| 65
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