transport world africa mar/apr 2013

ENDORSED BYENDDORRSED BBYY

CorridorSARS perspective on border crossing

LogisticsThe non-tariff

barriers

CommercialVehicles Marginal

growth in 2013

Intraregional supply chain solu ons from producer to consumer

Cobus Rossouw sets sights on Africa

ISSN 1684-7946 Mar/Apr 2013 Vol. 11 No. 2 / R40.00 incl. VAT ISSN 1684-7946 Mar/Apr 2013 Vol. 11 No. 2 / R40.00 incl. VAT

IN THE HOT SEATIN THE

SCANIA’s David Barclay speaks about the company’s expansion drive P6

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Intraregional supply chain solutions from producer to consumer

INSIDETHIS ISSUE

COVER STORYImperial Logistics

leveraging Africa’s infinite opportunities

P4

onsummeeer

RYistics rica’s nitiesPP444

12 16

24

28 30 36

1TWA | Mar/Apr 2013

REGULARSEditor’s word – Make a difference 2FESARTA – Barney’s comment 3Cover story – Imperial Logistics 4

SUPPLY CHAIN LOGISTICS

Transport dynamics in sub-Saharan Africa 22Non-tarriff barriers 24SARS perspective on border crossing 28Optimising operational costs 30Supply chain solutions for a dynamic world 34

REGIONAL CORRIDOR FOCUSMCLI corridor update 36

AIR TRANSPORTExpanding the industry 38

TECHNOLOGY

Delivering 98% recovery rate 39Protecting critical data 40

Scania expanding its footprint into Africa

IN THE HOT SEAT

Imperial Logisti

SE TT P6

Regional news 8

COMMERCIAL VEHICLESUD Trucks: Local industry set for marginal growth 12First impressions 14Scania’s Top Team 2013 16The importance of driver training 18BHL expands Zambian fleet with FAW 20

2 TWA | Mar/Apr 2013

TRANSPORTERS ARE BEING squeezed at every

turn as operational costs increase with alarming

regularity. The fluctuating fuel prices are a case in

point and now, with the looming toll fees in Gauteng adding

additional monthly costs it will affect the whole supply chain,

the overall cost are going to increase even further.

Companies involved in moving goods outside South

Africa’s borders face further unnecessary costs in the form

of non-tariff barriers. I remember when I started writing about

this industry 12 years ago how transporters would say that

they always had to provide their drivers with US dollars to

pay bribes and so forth along the routes their trucks travelled

once they left South Africa’s borders.

The system has not changed, though it appears nowadays

there are even more non-tariff barriers that transporters have

to face on the African continent.

Most feel they have no say in how to solve this or, at the

same time, curb additional costs. We might feel powerless as

the new e-tolls are rammed through the system, but we can make a difference in addressing the scourge of non-tariff barriers.

One of the issues being addressed at this year’s Road Transport Forum, taking place between 17 and 18 April in Johannesburg, is how

we can all make a difference in solving the issue of these non-tariff barriers in a sensible manner. At this forum, you will be able to have your

say and make a difference within our industry.

Now is not the time to sit back, shrug your shoulders and think “it’s been the norm for so long and no matter what I do it will not change”.

On the contrary, it can and will change. As long as we have associations like Fesarta and its affiliates we can make a positive difference,

which will have ripple effects for the industry way into the future.

Make a difference and join us at our Road Transport Forum.

In this issue, Imperial Logistics leverages Africa’s infinite opportunities and we look at how fleets can optimise operational costs, We also

touch on non-tariff barriers, obtaining comment from operators in Kenya and the DRC.

Scania chooses its top team to represent the country, and we also talk to Scania’s export manager about its expanding footprint in Africa.

UD Trucks outlines its plans for 2013, we hear from SARS about the one-stop border posts and also get an update on the Maputo Corridor

Logistics Initiative.

As always, a varied read – enjoy!

Make a difference! ED’S WORD

Publisher Elizabeth ShortenEditor Simon Foulds • [email protected] of design Frédérick DantonSenior designer Hayley MendelowDesigner Kirsty GallowayContributors Barney Curtis, Dinesh KumarChief sub-editor Claire Nozaïc Sub-editor Patience GumboProduction manager Antois-Leigh BotmaProduction coordinator Jacqueline ModiseDistribution manager Nomsa MasinaDistribution coordinator Asha Pursotham

Financial manager Andrew Lobban

Administrator Tonya Hebenton

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All articles herein Transport World Africa are copyright-protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the publishers.

by Barney Curtis, chief executive offi cer, FESARTA

FESARTA COMMENT

and the Tripartite Non-Tariff Barrier system (NTB).

The CTTTFP is a programme set up by the

COMESA/EAC/SADC Tripartite alliance and

includes all the major issues that need to be har-

monised or standardised across the region. They

include customs and borders, third-party insur-

ance, load limits and overloading control, road

user charges, corridor management institutions,

corridor monitoring, driver immigration, vehicle

equipment and dimensions, market liberalisation

and self-regulation. There are projects in place

to take all of these issues forward and Fesarta

participates in all of them.

MANY OF THE PROBLEMSthat transporters face along

the corridors are well-known

and have been on the table for

many years.

So why have they not been solved and what can

we do about the situation? One of the reasons

Fesarta initiated the 2012 Truckers’ Forum – now

the 2013 Road Transport Forum – is to encour-

age industry players to be part of the process in

solving these problems. The process includes

working with the Comprehensive Tripartite Trade

and Transport Facilitation Programme (CTTTFP)

Fesarta also works closely with the NTB

system, which is housed in the Tripartite and

receives, manages and strives to resolve all the

complaints registered on the system.

If there are such good systems in place, why

aren’t the problems resolved?

Consider a complaint, such as a municipality

in a country introducing a levy to transporters.

Fesarta will register this as an NTB. Contact is

then made with the offending country and a

justification of this levy is requested.

The country in question could respond to the

effect that the levy is in terms of legislation of

the country and so therefore justified. The NTB

system may well accept this and consider the

problem resolved.

But as far as the road transporters are con-

cerned, the problem is not resolved. This is why

Fesarta will be taking up such issues at the 2013

Road Transport Forum, to be held on 17 and

18 April, and seeking the next steps forward in

resolving such problems.

To make a positive difference in doing busi-

ness the right way in Africa, come to the Road

Transport Forum in April and help find solutions

to the problems!

Solving the problems along our corridors

2. PCC and tablets1. PRINT 3. Smartphones

TO RECEIVE

T kiTrucking economy across SA

RFA's Gavin Kelly speaks about abnormal challenges ahead P

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XPERT OPINION

MAMAMAMAMMMM NNNNNNNN

EX

P166946 Oct/Nov 209446 Occtt/Nooov 220

Heavy vehicle drivers take top honours

Road chaos to come?

Investigating the Brazilian connection

T kiTrucking economy across SA

RFA's Gavin Kelly speaks aboutabnormal challenges ahead P16

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XPERRT OPINION

MAMAMAMAAMM NNNNNN

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Optimising transport routing and scheduling

logDu

The road ahead in 2013

f“Scania Trucks have been developed for “S i T k h b d l d fuse in the most demanding market”Steve Wager, MD, Scania SA P16

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THE HOT SEAT

Appropriate technologyAppropriate technology for Southern Africa

UUUDDD TTRRRRRUUUUCCCCCCKKKKKKKSSSSS

IN IIIIIII

D BY

COVER STORY

Leveraging Africa’s infinite

“Imperial Logistics has an unrivalled understanding of the dynamic and growing consumer demand in Africa.” Cobus Rossouw, chief integration

offi cer, Imperial Logistics


It is for these reasons that companies are increas-

ingly setting their sights on Africa. Among them is global

logistics and supply chain leader Imperial Logistics. The

company’s chief integration officer, Cobus Rossouw,

stresses that what sets the group apart is its commitment

to work with – and for – Africa, rather than “parachuting in”

and expecting a “one-size fits all” strategy to unlock the

continent’s potential.

Three-pronged approachA three-pronged approach

to expansion in Africa will see

Imperial Logistics investing heavily

in developing corridors between

neighbouring countries in Southern

Africa, Rossouw explains, in order

to facilitate the efficient flow of

product between countries. A key

focus is the Walvis Bay-Zambia

corridor, he notes. “A current chal-

lenge is that everything that goes into Southern Africa comes

through South Africa. To address this, we aim to develop

the Walvis Bay-Zambia cor-

ridor. Imperial Logistics obvi-

ously isn’t in the business of

building the actual roads and

infrastructure, but we can play a

role in creating demand for these –

creating the ‘pull’ that will necessitate

infrastructure development.” One way in

which the group is doing this is by work-

ing with partners like Savino Del Bene, a global logistics and

freight forwarding company and leader in the shipping world.

Rossouw elaborates: “Our goal is to get more sea freight into

Walvis Bay and therefore more traffic onto this corridor.”

The second prong in Imperial Logistics’ Africa strategy is

to assist clients in benefiting from the mass consumerisa-

tion of Africa. “We will achieve this through our integrated

value offering in the fast moving consumer goods (FMCG)

and pharmaceutical space,” he explains. “Two years ago,

we moved into Africa’s consumer market with the acquisition

of CIC Holdings. CIC, which was listed in Namibia, operates

within the FMCG industry through distributor agreements

with blue-chip manufacturers, both local and international.

Its service offerings include distributorships, merchandising,

warehousing, distribution, debtors’ administration and staff-

ing solutions. The group has facilities in the main centres

throughout Namibia, Botswana, Swaziland, Mozambique

and South Africa.” In September 2012, Imperial Logistics

acquired RTT Health Sciences, “which is one of Africa’s

leading pharmaceutical and healthcare supply chain ser-

vice providers,” Rossouw adds. RTT specialises in multi-

channel solutions for delivering essential medicines and

The International Monetary Fund predicts that Africa will be the fastest The International Monetary Fund predicts that Africa will be the fastest growgrowreveals that Africa has the fastest growing and youngest population.reveals that Africa has the fastest growing and youngest population.vvvv ..rr eeee ..vvrreveConsumer-facing industries are expected to grow by over US$400Consumer-facing industries are expected to grow by over US$400billion by 2020.billion by 2020.

IMPERIAL LOGISTICS

opportunities

COVER STORY

5TWA | Mar/Apr 2013

consumer health products in South

Africa and to Namibia, Botswana,

Mozambique, Zambia, Kenya,

Tanzania, Malawi, Uganda, Ethiopia,

Rwanda, Zimbabwe, Ghana, Ivory

Coast and Nigeria.

African footprintThrough CIC Holdings and RTT,

Imperial Logistics is expanding its

already substantial African footprint

and strengthening its current expo-

sure to high-growth African econo-

mies, states Rossouw. “Our focus

in Africa will be in the pharmaceu-

tical and FMCG space, where we

see enormous potential. Africa is no

longer all about resources.” Citing a

McKinsey & Company research, he

notes that wholesale and retail was the

second-largest growth driver in Africa

and that consumer-facing industries

accounted for a third of growth. Africa’s rapidly growing

young population (about 570 million) is the fastest growing

and youngest population in the world – a major factor driving

the continent’s consumerisation.

Rossouw cautions, however, that any company aiming to

successfully expand into Africa needs to understand that

there is not a single, standard approach that can be applied

to the whole continent. “Distinct consumer segments exist,

with significant variation by country. Imperial Logistics’ goal

is to be smart about Africa, while working with Africa,”

he stresses.

Supply chain partnershipsOne way in which this will be achieved is through part-

nerships, which fall into the third component of Imperial

Logistics’ African expansion strategy. “We aim to grow our

presence in Africa through acquisitions and to partner with

local players wherever possible, rather than cutting them out

of the picture. We will also explore supply chain partnerships

and advisory opportunities with both existing and potential

clients, to identify solutions that can be offered to these clients

in Africa.”

One client that Imperial Logistics is already working closely

with in Africa is Tiger Brands, which has a strong presence

in Nigeria. It is through this partnership that Nigeria has

become a focus area for Imperial Logistics. The country is

expected to boast Africa’s largest economy before 2020,

so Rossouw stresses that it would naturally be part of the

group’s future plans. Outlining other countries that form part

of Imperial’s African expansion, he says that in East Africa –

particularly Ethiopia, Tanzania and Kenya – large supply chain

opportunities are being pursued. “In Southern Africa, we will

continue to grow our outsourced sales, which are substantial

in Namibia and growing in Malawi and Mozambique. We

will reinvest in Zimbabwe and we aim to build Zambia as a

transport base.”

The advisory side of the group’s approach to Africa will

include Africa-China partnerships, which Imperial Logistics

has the ability to facilitate, for the benefit of its clients,

Rossouw states.

Push and pullIn addition to this, Imperial Logistics’ business model in

emerging markets is to get involved not just in bringing

product in, but in “pulling” it through to market, since the

biggest opportunities in Africa’s largely informal markets lie

in getting products to consumers through outsourced sales

and distribution, Rossouw notes. The key to successful

African expansion, he contends, is a holistic approach, that

encompasses both “push” and “pull” activities. To this end,

Imperial Logistics’ strategy includes not only delivery of prod-

uct, but activating demand for clients’ products

in African markets, thereby generating the “pull”.

Achieving this will include becoming

involved in point of sale marketing and

merchandising activities, among others.

“A beneficial spin-off of this, and adding

value for our clients, will be the data that

comes back to us from the point of sale,

which is invaluable in helping our clients

to build their brands,” he adds.

Differentiating factorsDifferentiating Imperial Logistics from other sup-

ply chain and logistics operators with African

expansion plans is a track record of more than 40

years of moving business and industry in Africa.

“We are better placed because we are closer to

it,” Rossouw explains.

“Imperial Logistics has an unrivalled under-

standing of the dynamic and growing consumer

demand in Africa, as well as the continent’s unique challeng-

es, which require innovative and sustainable solutions. Our

extensive and long-standing local expertise and experience,

as well as knowledge built up over the years through our

hands-on approach, enable us to competently configure cli-

ents’ route to market strategies,” he explains. With an expand-

ed service offering that goes beyond traditional logistics into

all aspects of business operations, Rossouw says that in

today’s competitive market, Imperial Logistics is increasingly

a “co-collaborator” – working with its clients to unlock the

competitive advantage contained in complex environments.

“We understand the testing African marketplace, where

agility and flexibility are critical. It is our already expansive

geographic footprint in the region that we are able to leverage

to drive our clients’ competitiveness.” Recognising that every

client’s requirements are unique and customising service

offerings accordingly will continue to be Imperial’s approach

to leveraging experience to the benefit of each client. “This

partnership approach will be key to our ongoing success in

Africa,” Rossouw concludes.

IMPERIAL Logistics was established. One of three divisions of the IMPERIAL Group is a global logistics and supply chain leader that delivers excellence in end-to-end logistics and supply chain management. This enables its customers to grow in an effi cient, proactive and cost-effective manner.

1975

TWA offers advertisers an ideal platform to ensure maximum exposure of their brand. Companies are afforded the opportunity of publishing a two-page cover story and a cover picture to promote their products to an appropriate audience. Please call Hanlie Fintelman on +27(0)12 463 2564 or e-mail her at [email protected] to secure your booking.

HOT SEAT


Barclay joined Scania in 2003 as sales man-

ager for the export regions and, after working his

way through the company, was appointed to his

current position in August 2011.

Established marketsScania SA has established markets in Botswana, Namibia,

Zimbabwe, Zambia, Malawi and Tanzania. Operations in

Botswana, Namibia and Tanzania are wholly owned by

Scania SA, with the other three markets operating indepen-

dently from the company.

“Times are tough in some of these markets, especially in

Zimbabwe, Zambia and Malawi, but despite this I find opera-

tors and owners generally humble and a pleasure to deal

with. At times getting vehicles and parts through to some of

these regions can be a major challenge for us, yet we are

doing really well in all regions.

“While they may complain when they do not receive their

parts on time, they are a bit more tolerant because they

understand the frustration everyone endures when bring-

ing goods into their respective countries. They know the

procedures that have to be adhered to and the frustrations

Expanding its footprint SCANIA EXPORT

of dealing with relevant customs

and government officials in their

respective countries.”

Scania trucksTrucks with nine-litre engines through to

the new generation 13-litre engines are

the drive-trains of choice among operators

in the aforementioned regions.

“There are not many V8s in operation because operators

there believe that because of the extra cylinders the engines

use more fuel. However, in certain applications the V8 is the

right choice and this is one of our challenges in educating

operators and fleet owners,” says Barclay.

“Many operators utilise our old 380 and 420 horse power

vehicles, which are ideal for the commodities delivered by

operators and, given the road conditions, have been the

most economical vehicles to run in terms of tyre life and

engine wear. For many this is proven technology and it is

difficult to change their mindset.”

During the middle of 2012, Scania launched its 13-litre

engine, which has a reduced horse power but similar torque

as the previous engine generation. “As our vehicles are

designed to operate under extreme conditions in Africa this

will not be a problem at all for operators.” he adds.

“Competition in Africa is tough and staying ahead of the

competition means we have to ensure our service levels and

after-sales service are up to speed, along with having the cor-

rect parts and vehicles available at the right price. It is a tough

market, especially with alternative mod-

els from Asia entering the fray, meaning

apart from convincing the market place

to purchase quality products, we also

have to be price competitive.

“The lack of forex is problematic in

Zimbabwe, Zambia and Malawi, but

we are able to offer customers access

to Scania Finance, which has had a

Simon FouldsSimon Foulds speaks to David Barclay, export director at Scania SA, about the company’s expanding footprint into Africa.

“We are in a fortunate position because Scania produces robust vehicles, ideal for the African market with proven technology.” David Barclay, export director,

Scania SA

AFRICAN PRESSENCEScania SA has establiishedmarkets in:• Botswana• Namibia• Zimbabwe• Zambia• Malawi• Tanzaniazania

HOT SEAT

7TWA | Mar/Apr 2013

into Africapositive impact. On top of this, we also offer customers our

driver training programmes and after-sales services as a total

solutions sales package.

“It is about doing it right from the outset,” Barclay says.

Advantages“We are in a fortunate position because Scania produces

robust vehicles with proven technology, ideal for the African

market,” explains Barclay.

“Tanzania is one country where they are now opting to drive

6x4s as opposed to the 6x2s. One of the reasons why this

is happening there is because of the types of loads being

transported through Tanzania to landlocked Malawi and

Zambia. Also, because of the weighbridges being set up in

these countries, operators cannot afford to be caught driving

vehicles that are not up to spec as per the regional laws.

“We see this as a great opportunity for us, especially in

the second-hand trucking market, because

we have access to good-quality

second-hand trucks suitable

for the African market.”

Optimistic about the futureBarclay says he is extremely optimistic about the future.

“Scania has made concrete inroads into these key African

markets and our expertise in operating in these regions will

pay dividends, moving forward. Apart from having good qual-

ity vehicles available, we also have a great support team in

Southern Africa. Over the next 12 to 24 months we will con-

tinue improving the skill levels of those involved with Scania in

these countries – from upskilling mechanics to regular driver

training sessions.”

He concludes: “I have been in this position for a year and

a half, and during this time we have had record sales of our

vehicles, along with our after-sales market, during a time

when the company was being restructured. Elections over

the next year in these regions could impact on our busi-

ness model, but we will carry on doing what we are good

at doing.”

Scania SA has established markets in Botswana, Namibia, Zimbabwe, Zambia, Malawi and Tanzania

REGIONAL NEWS

A FEASIBILITY STUDY to determine the

viability of the upcoming construction and

tolling of the Harare-Beitbridge road is being

undertaken by Royal HaskoningDHV.

Phil Hasluck, project manager at Royal

HaskoningDHV, says the study will be carried

out in association with fi ve Zimbabwean partner

fi rms and will involve traffi c studies, develop-

ment of a toll strategy, engineering analysis and

concept design, environmental impact scoping,

economic feasibility study, fi nancial modelling

and preparation of draft project information

memorandum for investors.

The Harare-Beitbridge road is part of the trunk

road network of Zimbabwe, which is a part of the

ZIMBABWE

Major road upgrade and tolling study

North-South Corridor – one of the major arterial

links in the regional road network. The road is

the most direct link between the capital cities

of Harare and Pretoria and provides landlocked

Zambia with access to the Indian Ocean ports of

Durban and Richards Bay in South Africa.

“The road carries between 1 000 and 5 000

vehicles per day, with the heavier fl ows in the

proximity of Harare. Of signifi cance is the fact

that a high proportion of this traffi c is trucks car-

rying goods, equipment and machinery needed

to support the Zimbabwean economic recovery,”

says Hasluck.

The road project is approximately 580 km long,

starting just outside Harare and ending at the

SEVERAL YEARS AGO, Chirundu was

identifi ed by the World Bank’s sub-Saha-

ran Africa Transport Policy REC Transport

Coordination Committee SSATP REC-TCC

as the border in Southern Africa to be

piloted as a one-stop border.

After many deliberations and infrastruc-

ture upgrades, it was made into a one-stop

border post (OSBP) three years ago.


ZAMBIA

Statistics show that Chirundu OSBP is successful

Since that time, there have

been continuing interven-

tions to sort out the many

problems in converting to

an OSBP.

These interventions seem

to have been successful,

since there has been a 36%

reduction in transit times over

the past two years,

In roughly the same period,

the truck fl ow has increased

by 65%.

This is a very good result

and shows that the move to

one-stop is most benefi cial.

Beitbridge border post. It is a single carriage-

way two-lane road with numerous bridges,

some of substantial size. Although well

maintained in the past, the road is now over

40 years old, bumpy and dangerous in some

places, and is rapidly deteriorating under the

increased heavy vehicle traffi c. Alternatives to

improve it as a single carriageway road or to

add certain sections as dual carriageway will

be assessed.

The anticipated cost of rehabilitating and

improving the road is in excess of US$600 mil-

lion (R5.34 billion), some of which will be

funded as a loan against revenue from

the tolls.

REGIONAL NEWS

9TWA | Mar/Apr 2013

THIS YEAR, FINX-ZIMRA will introduce

vehicle registration at ports of entry to en-

able the public to leave the border posts with

number plates.

In his keynote address at the International

Customs day commemorations, held under

the theme ‘Innovation for customs progress

yesterday’, commissioner-general Gershem

Pasi said the move is meant to ensure the

decongestion of Zimra’s inland offi ces and

bring one-shop clearance for imported motor

vehicles. However, Pasi said the use of bank

cards at border posts and airports

still needed to be looked into, as

moving around with huge amounts of

cash inconveniences travellers and

puts them at risk.

“Let me take this opportunity to

reiterate that as Zimra, we will do

everything within our means to play

our part at the ports of entry and exit

diligently in order to portray a positive

image of Zimbabwe,” said Pasi.

Pasi, however, said this would

only be achieved if the border infrastructure

is rehabilitated, particularly at the Beitbridge

Border Post.

“If infrastructural challenges at the border

post are addressed, our strategies as Zimra

to facilitate smooth trade and travel will bear

more fruits.”

According to the African Development

Bank, the Zimbabwe government loses

between US$30 million (R266.25 million)

and US$35 million (R313.25 million) annu-

ally in waiting time and transaction costs, as

congestion and cumbersome customs proce-

dures take their toll on trade.

Beitbridge Border Post is largely regarded the

busiest inland point of entry in the SADC region

as it is the gateway to Africa’s largest economy,

South Africa.

Pasi also noted that Zimra was working on

forming partnerships with the business world

and a memorandum of understanding was

being worked on, which would include differ-

ent sectors in the business world. He said by

2014 the authority and the sectors would have

reached a consensus.

It was mentioned during last year’s Inter-

national Customs Day Commemorations that

Zimra would like to introduce a canine unit and

Pasi said he was pleased that the organisation

had managed to meet this goal with the assis-

tance of the Zimbabwe Defence Forces and the

Air Force of Zimbabwe.

He said the canine unit was a necessity as

it will aid in safeguarding civil society from

dangerous substances like drugs, which could

harm them or the environment.

ZIMBABWE

Zimra to introduce vehicle registration at border posts

ZIMBABWE

Zimbabwe driver’s licenceTHE RUMOURS THAT South Africa

requires all drivers from Zimbabwe to hold

an International Driver’s Licence has been

answered by Gavin Kelly, technical and

operations manager at the Road Freight As-

sociation of South Africa, who states:

Regarding the requirement for Zimba-

bwean drivers to hold an International

Driver’s Licence, the National Road Traf-

fi c Act (NRTA), Act 93 of 1996 (as

amended) states the following in terms of

PRESCRIBED territory:

Section 1 defi nitions

‘Prescribed territory’ refers to the Kingdom

of Lesotho, the Kingdom of Swaziland, the

Republic of Angola, the Republic of Bot-

swana, the Republic of Malawi, the Republic

of Mozambique, the Republic of Namibia,

the Republic of Zambia and the Republic

of Zimbabwe. Regulation 110: Conditions for

acknowledgement and exchange of driving

licence not issued in terms of the Act, and

international driving permit:

1) Subject to sub-regulation (1A) and

(3), a driving licence referred to in section

23(1) (a) of the Act, issued while its holder

was not permanently or ordinarily resident in

South Africa shall, for the period, and subject

to the conditions under which it was issued, be

deemed to be a valid licence for the purposes of

Chapter IV of the Act, if:

a) i) the licence has been issued in an offi cial

language of South Africa, or

ii) a certifi cate of authenticity or validity

relating to the licence issued in an

offi cial South African language by a

competent authority, or a translation of

that licence in such offi cial language, is

attached to it

b) such licence contains or has attached to

it, a photograph and the signature of the

licence holder.

The regulation refers to a driver’s licence

and an international driving permit – you will

note the wording “driving licence” and not

“international permit” is used when validity

is determined.

STABLE GROWTH WITHIN the air cargo industry in Africa is likely to

be recorded in 2013, despite the current global economic uncertainty,

says Charles Brewer at DHL Express.

Brewer believes single digit volume growth in the short term will be as a

result of the traditional oil and energy sector, increased consumer spend-

ing and economic activity, which remains the main driver of air cargo

traffi c on the continent.

“Within the sub-Saharan region, routes between Nigeria, Ivory Coast,

Ghana, Kenya, South Africa, Tanzania, Mozambique, Ethiopia and

Uganda will grow as a result of major investment into those markets and

their positive economic indicators, as well as other factors, including oil

and gas fi nds, or regulatory changes.

“In 2013, according to our own data and volume trends, we predict

that South Africa’s main trading partner within Africa will be Nigeria due

to the high volume of technology and electronic goods shipped into that

country. From a global perspective, sub-Saharan Africa’s fastest growing

partner will be the Asia-Pacifi c region, which has recently instituted new

ties with Africa as it looks to secure sources of raw materials to fuel the

future expansion of the region.”

Brewer adds that one of the major challenges South Africa could face is

in the labour sector.

“We saw a major strike in 2012 that crippled most of the transport

industry. While we were still operating, this had a signifi cant impact on

our business – the labour environment is a challenging one in Africa, and

South Africa is no different.”

MOZAMBIQUE

Vanguard moves 130 t trans-former in record time

SOUTH AFRICA

DHL optimistic for the African air cargo industry in 2013


SOUTH AFRICA

Barloworld logistics acquires a controlling stake in ManlineBARLOWORLD LOGISTICS’ DEDICATED Transport Services

division has merged with Manline, the diversifi ed logistics provider

specialising in transport and other logistics solutions.

The merged business will become Barloworld Transport Solutions,

a 50.1%-held subsidiary of Barloworld Logistics. The transaction

involved the disposal of Dedicated Transport Services, together with

a R40 million cash contribution, in exchange for shares in Manline.

Martin Laubscher, CEO of Barloworld Automotive and Logistics,

says: “This transaction is an exciting development that provides Bar-

loworld Logistics with an expanded platform for growing the transport

business across Southern Africa. It forms an important part of our

overall strategy to build a leading integrated logistics business.”

VANGUARD, A COMPANY specialising in complex relocations, has

transported a 130 t transformer in record time over a distance of

2 300 km on roads with poor infrastructure as well as over a steep

mountain pass.

An emergency replacement transformer was required at the Cahora

Bassa power station in north-western Mozambique and would have

taken three months to both plan and deliver.

Vanguard, however, managed to plan and execute the move from

Johannesburg to the power station in three weeks.

To move the 130 t transformer, Vanguard confi gured an 18-axle

trailer to a Mercedes-Benz 4150 Actros with a gooseneck, which was

ideal for crossing the majority of 27 en-route bridges.

“For bridges not rigid enough to support the transformer’s 130 t

load, we worked with BKS and WBHO to construct temporary

low-lying bypasses from sand and gravel,” says Vanguard’s MD,

Bryan Hodgkinson.

The last stretch of the journey took the cargo up the Serra Songa

mountain pass, which features a 35% gradient in certain places and

sharp S-bends.

“The 49 m trailer and prime mover combination was too long to

get around the bends, so we transloaded the transformer at the

base of the pass, reconfi gured the trailer into a more manoeuvrable

seven axles and hauled the load cautiously up the fi nal climb,”

describes Hodgkinson.

A number of contractors were hired by the project’s main con-

sultancy fi rm, BKS Group Mozambique, to complete the relocation

before the start of the rainy season, which would have severely

impacted on the construction of the temporary bypasses. Subcon-

tractors included WBHO, which assisted with the civil construction

of the bypasses; Calmark Solutions, which handled the border

crossings from South Africa to Zimbabwe and from Zimbabwe into

Mozambique; and ALC, which handled the route survey.

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WE ARE VERY pleased with the growth in

the export market during 2012, as it is evi-

dence of the great potential still lingering

in the Southern African truck market,” says

Carelse. “It is, by now, well-known that many of Africa’s econ-

omies are consistently growing faster than those of almost

any other region in the world. With that comes aspects such

as increased infrastructural development, which subsequent-

ly leads to a greater need for trucks.”

Since taking on increased responsibilities

for the region, UD Trucks Southern Africa

has expanded its footprint to include more

than 60 dealers in the Southern African

region, including Botswana, Burundi, the

Democratic Republic of the Congo, Kenya,

Lesotho, Madagascar, Malawi, Mauritius,

Mozambique, Namibia,

Rwanda, Seychelles,

Swaziland, Tanzania,

Uganda, Zambia

and Zimbabwe.

“We believe our

strength lies in the fact

that we are able to offer

Southern African fleets

the support they need wherever they are in the region. In

addition, we are focused on balancing the cost involved in

Local industry set for marginal growth in 2013Jacques Carelse, MD of UD Trucks Southern Africa, outlines to Simon FouldsSimon Foulds what the company has been doing to ensure it continues delivering transport solutions to its customers.

operating a fleet, with the products and service efficiency we

offer,” he adds.

Marginal growth in 2013“Even though the market finished 2012 in the black, it was

certainly a year filled with many challenges, which placed

a damper on domestic truck sales,” continues Carelse.

“Macroeconomic factors like the ongoing eurozone debt

crisis and lower business confidence levels, as well as wide-

spread labour unrest throughout the year, saw truck sales fall

around 400 units short of the industry forecasts made at the

beginning of 2012.”

According to Carelse, total truck sales are expected to con-

tinue to grow in 2013, albeit at a low rate of around 3.78%,

to 28 114 units.

“We expect the market to be down during the first six

months of the year, with a recovery forecasted for the lat-

ter half of 2013 due to the delayed positive effect of the

re-election of President Obama in the US and an increased

local understanding of the eurozone debt crisis,” explains

Carelse. “By July, business confidence should settle down

once again, if the various countrywide labour disputes are

effectively addressed.”

All segments are expected to grow during 2013, with medi-

um commercial vehicles forecasted to retail around 10 100

units, a 7.8% growth on 2012’s results; heavy commercial

vehicles by 6.1% to 5 250 units; extra-heavy commercial

“


UD TRUCKS

“We believe our strength lies in the fact that we are able to offer Southern African fl eets the support they need wherever they are in the region.” Jacques

Carelse, MD, UD Trucks

13TWA | Mar/Apr 2013

COMMERCIAL VEHICLES

vehicles by a slight 1.2% to 11 614 units; and bus sales by

5.3% to 1 150 units. AMH is excluded in this forecast as it

does not report segment details.

UD Trucks in 2013 and beyondIn 2013, UD Trucks Southern Africa will continue its drive to

offer customers trucking solutions that suit their specific busi-

ness and operating conditions. For this reason, the company

is currently planning, researching and testing a new range of

vehicles that are set to change the way Southern African fleet

owners think about trucks.

“To us, trucking is so much more than just owning a truck. It

is about being there when our customers need it most. About

not compromising on the essentials, and offering products

and services that potentially generate the most profit for our

customers,” states Carelse.

Part of the world’s second largest trucking company, UD

Trucks Southern Africa is able to offer customers the best of

three worlds.

“By combining the power of our Japanese heritage of qual-

ity engineering and manufacturing with the global strength,

modernity and resources of the Volvo Group, and adding our

local expertise, skills and support, we are in a very unique

position to offer customers the transport solutions they

need,” said Carelse.

As part of this commitment to its customers, UD Trucks’

extensive dealer network has invested more than R100 million

in the upgrade and establishment of facilities around the

Southern African region and new key dealerships will be

opening in Rustenburg and Pretoria during 2013.

A focus on trainingOver the past three years, UD Trucks Southern Africa has

invested more than

R9 million in the train-

ing of staff and mem-

bers of the commu-

nity. The company is

currently training 180

students in a variety

of fields, including diesel mechanics, sales and parts con-

sultants, service advisors, industrial and mechanical engi-

neering, as well as a number of experiential learners in HR,

marketing, finance and IT.

UD Trucks also offers a unique training initiative for disabled

learners, with the new graduates gaining a National Certificate

in Manufacturing, Engineering and related industries.

“We believe in the vital importance of training and investing

in the future of our employees and surrounding community,”

says Carelse. “We aim to provide ongoing developmental

opportunities that not only allow us as a company to achieve

our business objectives, but also reduce the unemployment

rate in the country and close the skills gap in South Africa and

within the company itself.”

“To us, trucking is so much more than just owning a truck.

It is about being there when our customers need it most”


COMMERCIAL VEHICLES

SITTING IN THE CAB of the Quon GW26

410 TT towing a 34 tonne payload and a GCM at

49 tonnes along an established test route, taking

in the highways and byways of northern Pretoria

in normal traffic conditions, is a breeze. As you effortlessly

traverse the winding roads and hilly terrain of the

country roads, you realise that this is what truck-

ing is all about.

At all times you have great visibility all round,

which is critical when driving on

South Africa’s roads. This truck

tractor 6x4 extra-heavy vehicle

is capable of handling your typi-

cal South African road condition

with ease, when towing a full load.

The UD Trucks’ GH13 engine is a 13-litre

in-line 6-cylinder turbo-intercooled engine. This

is a Euro 3 engine that offers a more environmen-

tally friendly option as it

decreases an operator’s

carbon footprint.

The automatic gearbox

effortlessly ensures the

terrain is tackled

UD TRUCKS’ QUON GW26 410

with ease. These automatic derivatives have innovative fea-

tures like Easy Hill Start.

The Voith retarder, which has a braking torque of 3 250 Nm,

slows the vehicle with ease, maintaining a steady speed

on the decline without the vehicles running away from you,

especially with a full load on the back of the horse. It offers a

range of speeds for peak deceleration torque.

The ability to freewheel on a decline and be in control of

the truck is great and to engage the gears while freewheeling

takes a slight touch of the automatic gear lever.

The seats are firm and ergonomically designed to ensure

both driver and co-driver are comfortable and able to see

what is happening in their immediate vicinity.

The cabin itself is available in two variants, depending on

what your business needs are and the height of the load box

on the horse.

All new Quon trucks are accompanied by UD Trucks’

Managed Maintenance initiative. Through Managed

Maintenance, UD Trucks provides the company’s complete

management and overseeing of all repairs and service costs

on behalf of its customers.

Tailor-made for South African road and operating condi-

tions, the vehicle is a culmination of extensive customer feed-

back and local engineering trials. The Quon also adheres to

stringent local requirements

Standard features on this model, with a standard roof, is

seating for two, one bunk, air conditioning, radio/CD, on-

board computer with multi-display function and a speed

limiter at 90 km/h.

This is the fi rst of a series of articles where Simon Foulds intends being in the cab of a truck, experiencing what it is like keeping the wheels of the economy turning.

traverse the windin

country roads,

ing is all abou

At all times

wh

w

The UD

in-line 6-cylind

First impressions

At all times you have great visibility all round, which is critical when driving on South Africa’s roads

We’ve been supplying fire and rescue vehicles to governments for over a century and today we’re proud to be trusted in everyday life-saving situations in over a hundred countries.

In 1912, this specialised Scania was one of the very first motorised fire engines.

16

SCANIA

There was an air of nervous excitement at Scania’s Aeroton premises as the top six teams in the country gathered for the Top Team challenge of 2013. Not only were the reputations and bragging rights at stake, but so was the opportunity of representing Scania Southern Africa at the semi-fi nals in Brazil.

Top Team 2013

DE A L I N G with technical

issues from customer vehicles on a daily basis

and delivering an efficient service day after day

means nothing if you crack under the pressure of working

with a team of colleagues in a completion environment.

But this is what Scania’s Top Team

competition is all about. Pitting its ser-

vice teams from across the Southern

African region against one another in a

fun-filled yet educational event where

service-related problems are given to

each team to compete successfully in

the shortest possible time.

Teams from South Africa, Zimbabwe,

Botswana, Namibia and Tanzania all

competed at the forth national Top

Team event.

Nineteen teams participated in the

first two rounds, which consisted of

two questionnaires comprising 60

technical and safety questions. From

these rounds, the top six teams were

chosen to vie for the title of Scania’s

Top Team 2013 in Southern Africa.

The six teams each consisted of three

to five members and were made up

from the workshop and parts person-

nel from the respective dealerships.

At this year’s regional

finals the six teams com-

peting were:

1.The Welwitchais from

Namibia

2. Bulawayo Five from

Zimbabwe

3. Harare Eagles from

Zimbabwe

4. Rosslyn Boys from

Rosslyn

5. Team High Range from

Rosslyn

6. Cheetah’s from

Bloemfontein.

The winning team will

compete against five other

teams from Argentina,

Brazil, Peru, Uruguay and

Dubai. The top two teams

from this event will proceed

to Scania’s world final, tak-

ing place in Sweden in

November this year.

The practical on-site sec-

tion of the competition took place in February, and the win-

ners were announced and given their respective prizes at a

gala dinner that same night.

Other than the opportunity of representing the region in

Above Toivo Tangeni Shiimi, Lohmeier Angula Shipiki, Iipumba Junias Shiningayamwe, Josua Gawanab

COMMERCIAL VEHICLES

TWA | Mar/Apr 2013

RESULTS

1st Place: Welwitschias (Namibia)

• Toivo Tangeni Shiimi• Lohmeier Angula Shipiki• Iipumba Junias Shiningayamwe• Josua Gawanab

2nd Place: Team High Range (Rosslyn)

• Lawrence Nkanyani• Tjaart Van Der Walt• Lionel Ferreira• Thokozani Msweli• Pierre Grobler

3rd Place: Rosslyn Boys (Rosslyn)

• Casper Yssel• Mohamed Saleem• Gerald Dube• Thomas Mapasha• Calvin Ngomane

4th Place: Harare Eagles (Zimbabwe)

• Sympathy Chikukwa• Gift Guri• Tafadzwa Mapunga• Thomas Mugwagwa

5th Place: Cheetahs (Bloemfontein)

• Van Zyl Bruwer• Johannes de Jager• Derick Patricio•Elias Rakauoane

6th Place: Bulawayo Five (Zimbabwe)

• Blessmore Mukize• Moses Mbofana• Miracle Nyathi• Tongai Chinhamo• Patrick Gowara

Brazil, the following prizes were on offer in the Southern

African leg:

• 1st Prize – R7 500, a gold medal and a team trophy

• 2nd Prize – R5 000, a silver medal and a team trophy

• 3rd Prize – R2 500, a bronze medal and a team trophy

• 4th Prize – promotional gifts and a medal

• 5th Prize – promotional gifts and a medal

• 6th Prize – promotional gifts and a medal.

The concept behind the Top Team event is for Scania’s

service staff to develop their skills by combining training

and teamwork within a competition environment. In the long

run, this is beneficial to Scania customers as it expands

the scope of the participating employees as knowledge is

shared among the team members, inspiring them all to be

an integral part of the Scania business, thus increasing the

competence level of the service personnel and strengthening

the brand among them.

Congratulations to the team from Namibia, which travel to

Brazil in June.

Left Scania’s Gideon De Swardt explaining the purpose of this exercise Above Team members analysing a problem

COMMERCIAL VEHICLES

COMMERCIAL VEHICLES


“This is only one reason why driver training in South

Africa should be regarded as a very important con-

tributor to a company’s overall CSR (corporate social

responsibility) strategy.”

Properly trained drivers are also more adaptable to certain

road conditions and varying circumstances, which greatly

reduces their risk of causing or avoiding an accident. Through

driver training programme, a driver is exposed to the potential

dangers experienced while driving and informed of poten-

tial hazards that they may face. Drivers are taught to take

note of various road, weather and visibility conditions, and

adjust their speeds and driving technique accordingly to suit

each situation.

Gavin Kelly, the Road Freight Association’s technical and

operations manager, adds: “The training of drivers, irrespective

of current road conditions, is always an important facet in the

efficient and safe transportation of freight through our country

and the rest of the continent. Drivers are faced with a greater

challenge than bad road conditions every day – and that is the

behaviour of light motor vehicles in and around the traffic that

freight vehicles find themselves in.”

Vehicle technology and vehicles themselves are always pro-

gressing and drivers should be regularly trained to keep up to

date with this. Vehicle technology is progressing rapidly and the

modern vehicle offers the driver many aides and assistance.

According to Gary Clackworthy, operations director of the

Advanced Driving Institute: “If the driver does not understand

these systems, they cannot be expected to use the new

technology successfully. Modern collision avoidance systems

(CAS) and other technology sometimes lull drivers into a false

sense of security. Regular training is essential where drivers

are exposed to and understand all modern features of vehicles

along with their limitations.”

States Kelly:

“The RFA has an

approved driver

training provider

programme aimed

solely at ensuring

that good basic

driving skills are

covered. In addi-

tion, the RFA

requires that train-

ing is done on

modern vehicles

(many driving

The importance of driver trainingTRUCKERS

institutions use outdated vehicles) and that driving is done

under different load and weather conditions. This has always

been an issue – that drivers are trained on systems that have

long been phased out and that the learner-driver never gets

to experience the difference between an empty, half-loaded

and fully loaded vehicle where the manner in which a vehicle

performs is drastically changed.”

The RFA also requires its approved driver training centres to

offer additional skills such as loading and off loading vehicles

as well as being educated on delivery scheduling, learning

some basic customer skills and other tasks related to being

involved in a freight and logistics operation.

There is, however, a shortage of skilled and trained drivers in

South Africa with less than 1% of South African drivers attend-

ing post-license training every year, which means that 98%

of South African drivers are under-skilled. There are several

reasons why there is a general shortage of drivers, let alone

skilled drivers, including extremely challenging working condi-

tions – especially long distance and cross-border, and the easy

targeting of trucks by criminal elements makes for an unsafe

working environment. Another factor is the stress of getting

through severe traffic conditions in peak hour transport and

the continual negative pressure from the general public against

trucks has its own psychological impact on those who would

want to try to get into the road freight industry.

The need for skilled drivers in South Africa and the rest of

Africa is crucial but there are many challenges to overcome.

Handfield-Jones says: “In the real world, probably 40% of all

drivers have irregular licences, meaning bought, forged or ille-

gal. As a country, our first priority should be to get those people

up to licence standard before we even start thinking about

post-licence training or refreshers. The solution is to overhaul

the licence curriculum to include more defensive skills and

make the five-yearly licence renewal contingent on an actual

driving skills test. The infrastructure to do this exists; what is

lacking is the managerial competence within the Road Traffic

Management Corporation (RTMC) and the political will from the

minister of Transport.”

Kelly concludes: “The RFA has communicated the need for

driver training to be done by a professional system under the

auspices of the association (as is done in the UK and the US)

as well as allowing the industry to manage and monitor the

efficiencies of driver training programme as implemented by

the industry. Numerous workshops within the industry, includ-

ing related stakeholders, have arrived at the same conclusion:

training needs to be relevant and managed by the industry

where the correct approach and processes can be followed.”

The need for skilled drivers in South Africa and the rest of Africa is crucial but there are many challenges to overcome

”The average South African road user is 32 times more likely to die in a traffi c crash than the average United Kingdom citizen,“ says Rob Handfi eld-Jones, MD of driving.co.za.

COMMERCIAL VEHICLES


BHL expands Zambian fleet with FAW

STREAMLINING OPERATIONS

CARGO CARRIERS’ SUBSIDIARY BHL has

expanded its fleet with the purchase of 80 FAW

trucks from China.

BHL’s MD, Buks van Rensburg, says: “The

new FAW trucks from China are considerably cheaper than

equivalent alternatives.”

Going directly to the source has enabled BHL to reduce

its costs structures, giving it a competitive edge in Zambia’s

logistics industry.

“After testing the FAW trucks in Zambian conditions, we

found they are suited to the African terrain and have far better

fuel consumption (about 8%) than their nearest competitors.

It’s a big win all round given the rate at which input costs are

rising and the state of the world economy.”

BHL provides logistical solutions for the mining, manu-

facturing and agricultural sectors in Zambia, and operates

in Zambia, Namibia, the DRC and Mozambique. Cargo

Carriers acquired a 55% stake in BHL in June last year

and the new partnership is well on its way to achieving its

immediate goals.

Cargo Carriers is enabling BHL’s rapid expansion, while

BHL gives Cargo Carriers a broader footprint in sub-Saharan

Africa and the chance to take advantage of the boom in the

Zambian mining industry.

The purchase of the FAW trucks is an important sign of both

Cargo Carriers’ and BHL’s intent. It allows BHL to replace

ageing vehicles and increase its fleet from 75 to 126 trucks

while boosting the company’s business by 60%.

The savings achieved by the direct-from-source purchase

will add further value to the partnership and have significant

impact for the Zambian job market (160 new jobs have already

been created by BHL’s expansion). Efficient cross-country

and cross-regional transportation will encourage Zambian

businesses to seek new opportunities both inside and out-

side the country, stimulating local business expansion.

The expansion of Cargo Carriers and BHL bodes well for

current and future customers, as well as for international

companies seeking to take advantage of the high growth

opportunities that Africa offers. They will now be able to rely

on global best practice logistics partners that have the exper-

tise, the local knowledge and the access to capital to partner

them strategically in Central and Southern Africa.

Below (left to right) Tom Mennie (Cargo Carriers); Murray Bolton (Cargo Carriers); Buks van Rensburg (BHL); Elrick de Klerk (BHL); Garth Bolton (Cargo Carriers)

www.volvotrucks.co.za

volvo TRUCKS. driving PROGRESS


THE INTERNATIONAL MONETARY FUND(IMF) recognised the BRICS (Brazil, Russia, India,

China and South Africa) nations as the only

nations to maintain growth during the financial

crisis of 2008. The intra-trade between the BRICS nations

has made its mark in global trade. South Africa also enjoys

successful trade with SADC countries. With these potential

opportunities for trade, we need to scrutinise the effective-

ness and efficiency of the South African logistics and trans-

port sector.

In 2012, the World Bank ranked South Africa 24th out of

150 countries on the international logistics competitive-

ness index, which is

much higher than the

other BRICS nations

(with China being

the closest at 30th

place). While this is

positive news, when

the domestic logistics

costs were compared,

South Africa was

ranked 124th – the lowest among the BRICS nations. Two

major causes of such high costs were non-existent multi-

modal transport setup and fragmented transport industry in

terms of geographic footprint.

The function of the transport sector to tackle such diversi-

fied requirements, locally and regionally in Southern Africa,

is imperative. The most frequent mode of transport used

is road (between 80 and 90% on average in sub-Saharan

Africa), thereby creating additional pressure on the economy

to invest further in such infrastructure.

Road density is low and is an indicator of connectivity with-

in a country. Typical road density is just 9.9 km/1 000 km2 for

low-income group countries and more than 52 km/1 000 km2

for middle-income countries. This affects the state of the

roads, as more vehicles are forced to use the same roads,

with no alternative routes available. The deteriorating road

Transport dynamics in sub-Saharan Africa

quality in South Africa can have a negative effect on logistics

activities with an emphasis on vehicle operating costs.

Road density and logistical performance are relatively low

in sub-Saharan Africa, contributing to the higher cost of

exporting goods from sub-Saharan African countries com-

pared to other countries – US$1 974 (R17 371) per container,

compared to a median estimate of US$732 for Asian coun-

tries. Lead time in comparison is 30 days for South Africa

and 13 days on average for developed nations.

Rail, on the other hand, is not geared to support local and

regional economic growth. Rail structures are more than 100

years old and are undermaintained. This is not adequate

when competing against the modern road networks that are

increasingly being built in major corridors. When compared

with other BRICS nations, South Africa stands the lowest in

the usage of the rail networks.

The other two modes of transport – ports and airports – are

not adding to the success of the economy. African ports are

characterised by old equipment, which negatively influences

the cargo processing time. Cargo transhipment sometimes

adds to increased delivery times because it lengthens transit

time and adds to inventory costs.

Countries in sub-Saharan Africa are under-endowed with

passenger and freight terminals, airports and runways. The

airline industry, particularly in Africa, is overtaxed, mak-

ing it difficult to establish cheaper fares and constraining

the development of the low-cost airline phenomena. Most

of the airports are not suited to cater to the new gen-

eration aircrafts, which creates constraints in global and

regional freight.

South Africa has to groom the local and the regional trans-

port industry to deal with these challenges. The technology

barriers and the skills shortage will add more to its worries.

South Africa has to ascertain the short- and the long-term

goals and the journey ahead quickly from the dynamics of

such industry within BRICS nations and embrace improve-

ment guidelines in a short time frame before losing its

marked stand in global trade.

“Countries of sub-Saharan Africa are underendowed with passenger and freight terminals, airports and runways.” Dr Dinesh Kumar, Associate

Director and Head, Supply Chain & Procurement

Management Consulting

Supply chains are becoming global and complex. The logistics, especially the transport functions, are equally becoming convoluted. The logistics, being one of the biggest contributors of a nation’s GDP (12.7% in South Africa) in developing countries and its management, are vital for a growing economy. By Dinesh Kumar




The total number of non-tariff barriers aff ecting business within the Comesa, EAC and SADC regions is 566. Sixty of these are dealt with by Fesarta (Federation of East and Southern Africa Road Transport Associations), as they aff ect road transport.

The non-tariff barriers

What are the most com-mon non- tariff barriers that affect your company moving freight through Southern and Eastern Africa?

Jane Njeru, CEO of Kenya Transport Association

Jane Njeru, CEO of the Kenya

Transport Association – The most

common non-tariff barriers are

related to the management of

border processes. The processes

are characterised by numerous

duplications of procedures. There

is little, if any, cross-border coop-

eration between authorities of the

various countries that our trucks

transverse. Others barriers include

corruption, mismanagement of

weighbridges, too many road

blocks and excessive charges.”

adopting the ‘system’ of corrup-

tion just to keep on moving. It

always seems the long winding

queues at border posts never

end as the procedures and con-

trols are just too much.”

As an example, there are

three main check points from

the border of Kasumbalesa to

Lubumbashi (border, Whisky

and Kisanga), giving the impres-

sion of three borders within a

90 km distance, and every truck

has to pay fees at each check

point. The toll fees are the high-

est in the region and a round

Lambert Tshisueka, director, Hermis Transport Logistics

Lambert Tshisueka, a director

at Hermis Transport Logistics,

which operates a fleet of 140

Superlink trucks from the DRC –

“In the DRC, high levels of cor-

ruption are seen as the norm as

it happens blatantly. The pro-

cedures at the border take too

long, which results in operators

NON-TARIFF BARRIERS

Though Fesarta only became involved in resolving non-tariff barriers in 2012, it has managed to resolve a few: the 40 km/h speed limit in the DRC has been lifted, the hijacking of trucks in the Tete Corridor is being dealt

with, Mozambique now allows 56 t GCM and Tanzania no longer charges Kenyan trucks a US$200 (R1 767.52) entry fee.

Fesarta also circulates a schedule, on a regular basis, showing which non-tariff barriers are prevalent in which regions and what is being done to solve the various issues.Simon Foulds speaks to members of Fesarta to ascertain what issues affect transport operations in Kenya, the DRC and South Africa.

Transport World Africa Online is a leading news and resource hub focusing on the transport, logistics and freight industry. The website is a leading news hub, with in-depth articles, videos and podcasts, an events calendar, and full social media functionality.

Have your say or get the conversation

started about anything and everything related to the transport and logistics management industries.

The @twaeditor tweets will keep you updated on all the latest, exciting and, of course, interesting happenings in the transport and logistics management industries.

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trip to Kolwezi, 420 km from

Kasumbalesa, can reach up

to US$900. There are also too

many controls on the roads, with

a single check point involving

as many as 10 to 12 govern-

ment departments.

In Zambia, the toll fees for

trucks from the DRC are high. In

addition, there are council levies

that are paid at every entry and

exit point of Zambia. Zimbabwe

has an environmental levy for

any truck carrying unprocessed

minerals, wood, etc.

Another issue of concern is

that in the DRC, truck docu-

mentation (licence disks and

roadworthy certificates) usually

takes time to be issued and this

is causing trucks to be penalised

heavily for not having the correct

paperwork by the other coun-

tries’ traffic police.

Gavin Kelly, technical director, Road Freight Association

Gavin Kelly, technical director

at the Road Freight Association

– The delays at borders are

caused by a myriad of authori-

ties and range from bad work

ethic, bad processes, incom-

petent officials, bad IT systems,

bad workflow processes, poor

infrastructure, inadequate infra-

structure, poor communication

systems, lack of electricity,

corrupt officials, contradicting

legislation and processes, new

processes implemented without

training/warning, vehicle break-

downs, over-zealous inspec-

tions, bribery and corruption.

How much extra do these non-tariff barriers add to your expenses and who ultimately pays for this? JN The non-tariff

barriers make the cost of doing

business twice as expensive

because of the delays. The only

way transporters make profits

is by maximising on the turna-

rounds. The delays at the bor-

ders cause a trip, which under

normal circumstances should

take two days, to take three to

four days. These extra costs

are carried by the transporter

and eat up the profit margins of

their businesses.

LT These non-tariff barriers con-

tribute to more than 50% of our

expenses and at the end of the

day these expenses are paid for

by the end user.

JK It depends on the vehicle,

cargo and contractual obliga-

tions (transporters lose money

when the wheels are not turning,

cargo owners charge demur-

rage, fines are incurred for

delays, loss of return loads,

increase in salaries and out of

town rates). In the end the con-

sumer pays – it all trickles back

to the consumer. The operator

pays upfront and many times is

put out of business.

What have you been doing in your country to ensure these non-tariff barriers are no longer impediments to ensuring your company delivers freight with no addi-tional costs? JN There

are progressive efforts towards

solving the border issues. The

implementation of one-stop bor-

der posts with formation of joint

border committees is expected

to enhance international coop-

eration. However, the implemen-

tation is rather slow and the full

effects are yet to be felt. The

implementation of the

single window system

by Kentrade is also

expected to quicken

the border processes

by increasing efficiency

in exchange of informa-

tion. There have also

been efforts towards

public-private sec-

tor partnership.


LT As a transport association,

we engaged various government

departments that fall under our

umbrella to tackle these issues,

but nothing very significant gets

resolved. Drivers had to close

the border for some days just for

some issues to be addressed.

GK Lobbying with whoever is

responsible for these issues

– from government to organisa-

tions – and having a system set

up with SADC. The problem is

that there has been very little

success in getting these barri-

ers resolved as most of them

have a financial aspect linked

to them – somebody makes

money. The only recourse left to

operators is to take the issue up

themselves (as done elsewhere

in the world), which can be any-

thing from amicable agreement

to boycotting of certain countries

or borders.

In your view, is it pos-sible to alleviate these non-tariff barriers in Africa, ensuring the flow of freight in Africa runs smoothly? JN It is

possible to alleviate non-tariff

barriers in Africa because many

have been created by difficult

government officials who render

services with self-interests rather

than the need to enhance trade

in mind.

LT It is very possible to solve

all these barriers if the SADC or

COMESA pushes the different

governments to harmonise all

the customs procedures in the

regions so that all the processes

are standardised. The ministries

of transport of the different coun-

tries should also harmonise and

respect what they agree for cor-

ruption to disappear.

GK Yes – one day. The opera-

tors (from all countries) will need

to stand together and refuse to

accept the state of affairs. The

structured process doesn’t seem

to be working (currently).

Are authorities in your country serious about tackling non-tariff bar-riers to ensure freight moves smoothly? JN

There is commendable effort,

but a lot is still left to be desired.

The Kenyan government intro-

duced weigh-in-motion (WIM)

equipment, but it is rarely cali-

brated. Transporters experience

a lot of variances in readings

from one weighbridge to another

as they traverse through the

country. There are also plans

to weigh cargo at two points

only, the point of loading and

exit, to curb unnecessary

delays. However, this has yet to

be implemented.

LT A lot has been said but no

action has followed.

GK Definitely not the C-BRTA or

the Department of Transport. Lots

of lip service is paid to this, but

very little has been achieved. If

this really is the case, then these

authorities need to state that they

cannot achieve anything, then

disband and allow operators to

solve the issues. In the end, sup-

ply and demand will prevail.

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Over a century later, Scania is one of the oldest and largest suppliers of transport solutions in the world, with a million vehicles in over a hundred countries.

Our rich heritage is still reflected in our logo today.


ONE-STOP BORDER POST

THERON OUTLINED HOW SARS is playing

a positive role in assisting in creating one-stop

border posts. “Unlocking the logistics corridor

that makes use of the Lebombo-Ressano Garcia

border crossing has been a matter of critical interest for both

South Africa and Mozambique,” said Theron.

Over the years, there have been many studies driving

home the point that delays at border posts not only increase

the cost for stakeholders, but also stifle opportunities for

growth and development. The World Bank’s Doing Business

Report 2012 estimates that reducing the days needed

to clear exports by half could enable a small to medium

enterprise to increase profitability from 1.6% to 4.5%, a

three-fold improvement.

According to Theron, the reduction of export costs by

10% through efficiencies in trade processes could increase

exports by 4.7%. It is in this context that SARS, through the

adaptation of sound risk management principles, is reinvent-

ing itself as part of an efficient supply chain, as opposed to

its perceived previous role of essentially being gatekeepers

stifling the flow of legitimate trade.

Customs modernisation journeySARS has embarked on a modernisation programme that

involves many facets. Theron stated that this programme

also aims at creating the freest possible flow of legitimate

trade, while forcing effective risk-based intervention on ille-

gitimate or perceived less compliant trade.

He added: “In benchmarking one-stop border arrange-

ments there seems to be a tendency to focus more on

infrastructural change to accommodate co-location, but

very little on efficiencies in re-engineering of

processes and capitalising on the opportunities

that modern technologies offer. It is SARS’s view

that in order to achieve the ultimate one-stop

border environment, a holistic reform methodol-

ogy is required that integrates policy, workflow

processes and technology in order to create the

much-needed facilitation benefits regional trade

so desperately need.

“SARS is actively involved in establishing

regional IT connectivity and data exchange

SARS perspective on border crossing

to the extent that formal real time exchange of data may

become a reality in the very near future, especially between

Mozambique and South Africa.”

There are currently at least four one-stop border posts

in operation in Africa with as many as 55 others in various

stages of planning as African countries seek to unlock trade.

Theron said the expected benefits of the one stop-border

post are clear: It will reduce border

crossing time, allow for shared logis-

tics costs between officials of the

countries where it is sensible to do so

and create a closer working relation-

ship coupled with integrated workflow

and data sharing.

Critical considerationsAccording to SARS, there are four

areas that are of fundamental impor-

tance for the establishment of any one-

stop border post. These are:

• The need to ensure an enabling

legal framework – aligned to interna-

tional standards – with the relevant

provisions and instruments in place

to enable and manage jurisdictions

and coordinated operations.

• The need to develop the appro-

priate infrastructure to support

the implementation, ensuring effi-

cient and seamless processing

does not get bogged down by

infrastructural models.

• To establish connected, seamless,

end-to-end work processes and

operating procedures in order to

maximise efficiency, reduce dupli-

cate and redundant processes, and

establish joint standard operating

procedures and policies.

• Ensuring interconnection of the ICT

systems in order to support a coordi-

nated risk management and realise

One-stop border posts, in particular the Lebombo-Ressano Garcia border cross-ing, were the topic in the keynote address by Beyers Theron, SARS executive: Customs Modernisation Strategy and Design, at the Maputo Corridor Logistics Initiative’s AGM.


Beyers Theron, SARS executive, Maputo Corridor Logistics Initiative AGM

seamless procession of data to improve border throughput

and intervention management.

Challenges“Why, you may ask, is it taking so long at the Lebombo-

Ressano Garcia border crossing?” asked Theron.

“The primary reason for this is the complexity of establish-

ing the international legal framework or basis that will allow

for the sovereign laws of each state to be implemented within

the other state’s territory. In terms of our legal context, this all

needs to be incorporated into applicable domestic legislation

so that officers deployed on foreign territory may lawfully act.”

He added that it is not simply a matter of placing customs

officials together in a building near the border and then pro-

cessing the movement of goods, persons and conveyances.

Each officer deployed by each administration needs to be

able to perform all functions fully and without hindrance,

regardless of whether they happen to be on “home” territory

or on foreign soil. Each decision that is made on foreign soil

to release, detain, search, inspect, arrest and/or intervene in

some other manner needs to be made as lawfully as if it were

made on own soil. The courts need to be able to adjudicate

on all matters related to a border crossing to which domestic

legislation has been applied, again without there being any

hindrance because the processing took place on foreign soil.

There are at least nine primary agencies involved in aspects

of border control management at ports on South Africa’s

side of the border alone – each with their own mandate and

legislative framework.

Theron stated: “At each port of entry, immigration proce-

dures are required for human traffic, and customs

procedures are carried out for goods

traffic. Each of these proce-

dures requires a care-

ful balancing

29TWA | Mar/Apr 2013

of the needs of security and the facilitation of the movement

of goods and people. The prevention of the illicit movement

of goods and people is carried out jointly by the Department

of Home Affairs, SARS and the South African Police Service –

with critical input from the State Security Agency.

“At the same time, the movement of both people and goods

needs to ensure that our agricultural sector and our people

are protected from harmful diseases that may be carried

over the borders. These border control functions are con-

ducted by officials from the Department of Agriculture and the

Department of Health.

“Coordinating this in one country between members of the

same administration is challenging enough. Consider another

country with a different domestic legal system, international

law and different languages, and you will have some idea of

the long road we have been travelling.

“It should also be taken into consideration that this is

completely new ground for both countries, involving a key

transport and logistics environment critical to trade. Everyone

wants to make extra sure that we are getting this right.”

Where are we today?Theron concluded: “As stated before, the potential benefits

to a key shared trade route have been the subject of much

discussion for a very long time.

“In this endeavour, SARS will do what it can. We are, after

all, both an interested party – given our customs mandate

– as well as a facilitator that has to satisfy others given our

current role as custodian of operational coordination through

the Border Control Operation Coordinating Committee. One-

stop border posts are, after all, multidisciplinary environments

and it is through our partnership with our counterparts in

Mozambique and stakeholders such as the Maputo Corridor

Logistics Initiative that we can continue to ensure we fully

realise this potential.”


CONCERNING THE IMPORTANCE, Gert

Pretorius, MD of MiX Telematics: Africa-Fleet

Solutions says: “Implementing an effective fleet

management system is essential for fleet opera-

tors who aim to boost productivity and efficiencies, as well

as health and safety levels. However, a significant amount of

fleet operators are not fully aware of the technology available

to them, nor is it being implemented to its full potential. To stay

ahead in today’s competitive environment, it’s vital to make

use of the tools available – and know how to use them to gain

insights into your fleet operation.”

John Edmeston, MD of Cartrack South Africa adds: “Rising

transport and fuel

costs, toll fees, vehicle

maintenance costs,

hijackings and the

challenges around

managing driver

behaviour are placing

enormous pressure on

fleet owners and com-

panies to find effective

and sustainable ways

of managing fleets,

drivers and their driving habits while contending with time

management, risk and variable maintenance and operat-

ing costs. Vehicle tracking with full telematics features is an

essential requirement to achieve optimum fleet performance.

“Ensuring the safety of drivers and other road users, and

minimising losses in an industry that operates on very tight

margins is imperative and requires sophisticated fleet man-

agement and driver behaviour monitoring.”

Dean Andrews group marketing manager for Ctrack South

Africa comments: “Drivers have a direct influence on most

aspects of a fleet, i.e. productivity, client service, vehicle

economics and costs. Fleet operators therefore have to

know who, when and how their vehicles are utilised from the

moment they leave their depots. Changes in legislation such

as AARTO also put a legal obligation on fleet operators to

know and to prove who was driving a vehicle in case of a

traffic offence. Fleet operators make a living in an extremely

competitive environment – so much so that their livelihood,

growth and economic survival often depends on the cost

they control, costs they reduce or productivity they improve.

Adherence to customers’ service level agreements is part of

their daily routine and they must therefore have visibility and

control on all aspects of their fleets.”

Optimising operational costs

“Ensuring the safety of drivers and other road users, and minimising losses in an industry that operates on very tight margins is imperative and requires sophisticated fl eet management and driver behaviour monitoring.” John

Edmeston, MD, Cartrack South Africa


Fleet management and driver monitor-ing technology are important aspects in any

transport operation, no matter the size or scope. Simon FouldsSimon Foulds speaks to some of the industry’s leaders

to fi nd out how fl eet operators can benefi t from this technol-ogy, especially with ever-increasing operational costs.


FLEET MONITORING

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Benefits“Knowing where your drivers and vehicles are, coupled with

having information on how they are performing, means fleet

operators are in control of their fleet’s performance. The

technology facilitates informed decision-making in a timely

manner as well as the ability to take action and rectify issues

like poor driving behaviour,” says Pretorius.

“In-cab technology transmits data on things like trip start

and end times, trip duration, speeding, over-revving, harsh

acceleration, harsh brak-

ing and excessive idling.

Monitoring these events in

relation to the driver and/

or vehicle means operators

can improve vehicle utilisa-

tion and driver behaviour. This

data is accessible 24 hours a

day through secure web and

mobile applications.

“In addition, by being able

to identify the vehicle clos-

est to a customer site and

assign jobs accordingly, fleet

operators can accurately predict the time of arrival and better

manage routes and delivery schedules. While improving cus-

tomer service, this aspect also helps to save costs through

becoming more efficient.”

Edmeston states: “Cartrack’s comprehensive range of fleet

management solutions provide for efficient and accurate

reporting and control of costs, allowing you to manage driver

behaviour as well as draw accurate, real-time data for analy-

sis and improvement planning. Cartrack’s fleet management

systems provide the answers to the ‘how and why’ questions

that allow for proactive planning and intervention, rather than

simply monitoring distances travelled.”

Cost savingsPretorius says that on average, customers can benefit from

a sustained 10% saving on fuel costs, which represents

massive savings for many customers. “This benefit is critical

considering that the rising cost of fuel is one of the biggest

threats to fleet operations today. In Frost & Sullivan’s 2009

report, Demand for Green Telematics to Challenge Slowdown,

it was pointed out that an effective fleet management system

has the potential to influence up to 62% of operating costs.”

Andrews expands on this, saying: “Evidence suggest that

fleets can achieve up to 15% reduction in maintenance costs,

a 15% saving in fuel (via a reduction in unauthorised usage,

more sympathetic driving and

better routing), an 8% reduc-

tion in insurance premiums

and a massive 35% reduction

in accidents.”

Edmeston continues: “While

economic changes may

impact on the way we do

business, fleet management

solutions provide professional

and sustainable solutions on

how best to manage your fleet

costs, driver behaviour and

overheads. While the cost sav-

ings will vary from client to client depending on their unique

challenges and circumstances, using fleet management solu-

tions will have far-reaching benefits.”

The latest trends“It is evident that integration between various solutions is

becoming more of a requirement from customers,” says

Andrews. “Examples are the integration between telemat-

ics solutions, route planning and scheduling solutions, and

execution management solutions. In modern times, it is critical

to plan efficiently, schedule accurately, monitor in real time,

have the ability to adapt quickly by making informed decisions

and have the ability to debrief drivers quickly and effectively

after a day’s events.”

Pretorius states: “The ‘greening’ of fleets is still an important

trend, considering the environmental damage caused by the

road transport industry. As pressure

mounts for fleet operations to minimise

their carbon emissions where possible,

more companies – especially multina-

tionals – will be required to report on

their emissions.”

Edmeston concludes, saying:

“Clients generally want a one-stop

solution to their many and varied fleet

management and vehicle recovery

services and the trend is to provide a

number of customised features and

services that help optimise our servic-

es to a given client. In many instances,

large transport companies will have

existing systems supporting their

logistics, such as mapping and route

planning. In such cases the ability to

integrate the tracking system data into

the clients’ systems is important, as is

providing a single holistic solution.”

Below Important to have fl eet management options at your fi nger tips

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This year’s conference promises valuable content incorporating both global and South African-specifi c issues.

ANY COMPANY, whether in the private or pub-

lic sector, is only as good as the weakest link

in its supply chain.

From large retail chains to government

departments, meeting profit and service delivery tar-

gets is hugely influenced by the supply chain’s perfor-

mance and how effectively and rapidly it can respond to

unexpected change.

As a result, supply chain professionals are becoming

increasingly sought-after resources. This poses the chal-

lenge of keeping the skills of these professionals current

in an industry subject to continuous change.

“Supply chain departments and their staff are vital to the

day-to-day operations of any organisation – and yet they

also need to spend time on staying abreast of new tech-

nologies, standards and best practices from around the

world,” says Liezl Smith, president of SAPICS.

Companies, however, don’t always have the

resources to pay for and allow time away from the

office for supply chain professionals to attend the

numerous events needed to fulfil this requirement.

“The SAPICS annual conference offers a way

for these valuable professionals to hear

leading international experts in the field,

benefit from case studies and network

with fellow professionals – all within

a two-and-a-half-day time frame. It’s

everything a supply chain profes-

sionals need to stay on top of their

game each year,” says Smith.

Terry O’Donoghue, director of

SAPICS, explains that this year’s con-

ference is structured around the

Supply chain solutions for a dynamic world

theme ‘Design for change: Supply chain solutions for a

dynamic world’.

“The business environment itself is changing rapidly,

as is the technology that it uses – with big implications

for supply chains,” he says. “How does one build supply

chains that embrace that change and create new sources

of competitive advantage for our organisations?”

O’Donoghue says this year’s conference will cover broad

trends affecting the profession, like enterprise mobility, as

well as industry-specific issues.

There will also be a focus on peculiarly South African

issues, such as the impact of the Aids pandemic on the

logistics industry.

“Aids has decimated the most skilled cadre of drivers

on whom the industry should be relying. In this case, the

ability to get drivers trained and operational quickly is a

competitive advantage.”

SAPICS is a professional association dedicated to help-

ing organisations and individuals improve operational

performance through supply chain education, certifica-

tion and knowledge-sharing. It is closely allied with key

global supply chain organisations such as the Institute

of Business Forecasting, APICS (The Association for

Operations Management), the Supply Chain Council and

the Chartered Institute of Logistics and Transport South

Africa and the South African Shippers Council.

“We tap into the enormous body of knowledge and

expertise of our sister organisations to create an event

that truly delivers value and gets delegates up to speed on

global best practices,” concludes Smith.

The SAPICS annual conference will take place from 2 to

4 June at Sun City. Visit www.sapics.org to see the line-up

of speakers and events, and to register.


Below Temitope Ogunfayo, CPIM, group manager at Procter & Gamble, Nigeria, one of the speakers at SAPICS 2012

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THE MCLI IS very much dependent upon the

partnership of stakeholders, which stretches across

the full gamut of the logistics supply chain, public

sector and industry associations.

Much of MCLI’s operational activity was focused on support-

ing users with the implementation of key customs modernisa-

tion processes on the corridor. The implementation of Phase 3

of the SARS customs modernisation roll-out at Lebombo

and the introduction by Mozambique of the Single Electronic

Window at Ressano Garcia were both significant develop-

ments on this front.

Phosa said: “There is no doubt that the increased electronic

interface and the pre-clearance options have had a significant

benefit for truck turnaround times, despite the early teething

problems. The long-term benefits of electronic clearing far

outweigh the short-term agony of becoming accustomed to

the new procedures.”

2012 achievementsMatos added: “The success story of the previous year’s part-

nership has to be the signing of amendments to Mozambique’s

transit customs legislation, which was the result of a process

of intensive consultation by stakehold-

ers as well as the World Bank-funded

report produced by MCLI on recom-

mendations for changes to the legisla-

tion. The Ministry of Finance signed the

amendments into effect in November

last year. These amendments remove

the requirements of the application of

blanket bonds and guarantees to transit

cargo and instead applies a risk man-

agement approach, which is crucial to

facilitating the ease of transit into a third

country. This has enormous implications

for the Port of Maputo and for the corridor, as transit growth is

critical to ensuring the corridor’s cost effectiveness by facilitat-

ing bidirectional cargo flow.”

According to Phosa, the MCLI has just completed an update

of a 2010 document, which pulled together a range of critical

information that strongly supports the rationale and urgency for

a 24-hour one-stop border post at Lebombo-Ressano Garcia.

This document not only provides a factual and statistical

update, but provides a matrix of actionable issues and poten-

tial solutions for the crisis at this border post. This document

will be presented to the highest levels of government as well

as the departments making up the Border Control Operational

Coordinating Committee (BCOCC). The MCLI has also com-

pleted a study on the impact of the backlogs created by the

lack of the 24-hour one-stop facility. This study, which is hard

hitting and factual as opposed to an academic analysis of the

border post, will be presented to the president of South Africa,

as well as to every ministry that forms part of the BCOCC.

24-hour border postPhosa said he cannot understand why questions have been

raised by the authorities as to the viability of operating the

Lebombo Border Post for 24 hours. “Beitbridge has been

operating a 24-hour border post for more than two years, while

the Maputo Corridor, which has the port of Maputo operating

24/7 for 365 days of the year, still does not have a 24-hour

one-stop operation. This cannot be good for trade and neither

can it be good for creating an enabling environment for trade,

deepening regional integration or pursuing the agenda of the

Tripartite Free Trade Area (FTA), which is due for implementa-

tion in 2014. The Tripartite FTA is a precursor to the continental

FTA, which is to be implemented in 2017. While both of these

are ambitious plans, the energy with which the regional eco-

nomic communities are pursing the FTA agenda is consider-

able and we cannot have a situation where we, on this corridor

where traffic and freight growth continues to outperform all

predictions, continue to muddle along for 18 hours, with back-

logs of traffic flow causing two- to four-hour delays from 06:00

when the border post reopens after a six-hour closure. The

South African government must finalise its part of the agree-

ment with urgency.”

Phosa concluded: “Strategically, MCLI will be moving

towards finalising a formalised public-private partnership with

the corridor governments and the private sector at an insti-

tutional level. This is a crucial further step towards ensuring

mutual accountability and speeding up delivery on this vital

economic node.”

MCLI corridor update


REGIONAL CORRIDOR FOCUS

At the eighth annual general meeting of the Maputo Corridor Logistics Initiative (MCLI), co-chairmen Dr Mathews Phosa and Dr Antonio Matos outlined what has been happening over the past year on this corridor and the way forward. Simon FouldsSimon Foulds looks at what they said regarding the key aspects of the MCLI.

MCLI will host a top-level conference and exhibition in

Maputo in October. This event will form the first of such

events to be held on an annual basis and MCLI will shortly

be announcing the theme for this conference.

In addition, based on the success of the direct stake-

holder engagements with customs, MCLI will be hosting

a series of sector-based meetings of member companies

and stakeholders on the corridor.

Dr Mathews Phosa and Dr Antonio Matos, co-chairmen, MCLI

TRANSPORT CORRIDOR

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AIR TRANSPORT

MENEN IS ONE of the

founder members of the

Emirates Airline and has

headed its cargo division

since its inception in October 1985.

According to him, the air cargo indus-

try in Africa faces a number of hur-

dles, of which regulatory issues is the

biggest one.

“The biggest issue is accessing the

major markets within Africa. For the industry to expand on

this continent, we need the various regulatory authorities to

open up and liberalise the air so more trade can take place,”

says Menen.

“Another problem we face is that cargo tends to be direc-

tional – going in one direction and nothing coming back, so

the cost of providing a country with that particular service

becomes extremely expensive. However, if air cargo was

given more freedom to be able to reposition flights to be

more flexible to pick up cargo, then costs would come down

due to flights having return loads.

“Our challenge is that a large part of cargo is carried under

the belly of commercial flights and because a number of

countries turn down the rights for passenger traffic in order to

protect their own national carriers, by default cargo is unable

to be delivered to that particular country. What we would like

is for countries to separate the two where airlines can main-

tain cargo rights without infringing on the passenger rights of

a country’s national airline. It is short-sighted, but this is the

way certain African countries operate.

“Every country likes to be export-driven and the very fact

that certain countries close off this

capacity defeats this object. At the

end of the day you might save a

few dollars for the national airline,

but in the long run the country loses

millions of dollars in business.”

Menen says this is just one of

the issues which The International

Air Cargo Association (TIACA)

and the International Air Transport

Association (IATA) are lobbying

governments in Africa to address.

One aspect of the industry that

Menen says he is proud of hav-

ing been associated with was the

Expanding the industryAFRICA

forming of the Global Air Cargo Advisory Group, which

has brought together the Global Shippers Forum, the

International Federation of Freight Forwarders Associations

(FIATA), IATA and TIACA, allowing them all to speak as one

voice in lobbying governments on the continent.

“Prior to this, there was a lot of animosity between freight

forwarders, airlines and shippers, but once we realised that

we all share common problems, the various industries were

able to work together as one voice in lobbying governments.”

Menen believes once African governments start opening

the airspaces there will be a marked increase in intra-Africa

trade, especially among landlocked countries. As for the

future growth of the African air cargo market into the rest

of the world, Menen believes this will come from routes

into China and India being expanded over the next five to

ten years.

Cargo at airportsAsked about the capacity for airports to expand cargo

areas, Menen states that the problem with most airports is

that they concentrate on passenger traffic more than cargo,

turning airports into shopping malls. He adds that in most

cases cargo facilities are more of an afterthought and then

the owners try and make the cargo facilities operate more

efficiently and they struggle.

“I believe if airports do not have good cargo facilities then

it restricts the growth of the city where it is situated. Also,

if you go and spend money on building airports and have

a restrictive market access policy then you do not have

aeroplanes on the ground and your infrastructure becomes

a white elephant.”

During Air Cargo Africa 2013, the second biennial international air cargo confer-ence and expo in Africa, Simon FouldsSimon Foulds had the opportunity to interview Ram Menen, the divisional senior vice president of Emirates Airlines, about the state of the air cargo industry in Africa.

Ram Menen, divisional senior vice president, Emirates Airline

TRANSPORTATION TRACKING

WITH THE CONTINUED high levels of theft

and hijacking, securing vehicles and assets

in transit has become a necessity for busi-

nesses in South Africa. Criminals are not

only after vehicles, but often are more interested in the

goods being transported, abandoning the vehicle as soon

as is convenient.

Traditional tracking technology makes use of GPS transmit-

ters hidden in the vehicle in an attempt to provide the location

of the vehicle at all times. Unfortunately, the criminal element

is aware of this and will often steal a vehicle and park it under

a roof for a few hours to prevent the owners from tracking

it via GPS. During this time, the thieves can trace the GPS

device by following the wire linking it to the vehicle’s battery.

These devices require a significant amount of power to oper-

ate and therefore need to be hooked up to the battery at all

times, making it fairly easy to find.

Transportation companies should rather consider smaller

wireless devices with internal power sources. These can be

Delivering 98% recovery rate more easily hidden, even inside packages being transported,

and remain independently active for longer, meaning they

can be reused for multiple trips and in multiple vehicles.

Mtrack is a self-contained, self-powered wireless loca-

tion unit that not only meets these criteria, but uses cel-

lular networks to determine its location. Cellular signals

are not as easily blocked in parking blocks or garages,

making it harder to hide stolen goods and vehicles.

The size of the Mtrack device also makes it easy to

hide and difficult to discover. Its minimal installation

requirements mean the unit can be fitted into most

assets quickly and covertly, and it is a fully portable

solution that can be easily moved from asset to asset.

Possibly its best feature is that its battery lasts, on aver-

age, one year.

The unit can also be set to detect movement. The move-

ment sensor capability allows the unit to go into alarm mode

if it moves when it should not – such as when it should be

spending the night in a warehouse.

Deon Bayly, MD, Electronic Tracking Systems

by Deon Bayly

TECHNOLOGY


Protecting critical data

A DIVISION OF Transnet, TNPA controls and man-

ages all commercial ports on South Africa’s

coastline. It is the largest port authority in Southern

Africa in terms of cargo volumes and is responsi-

ble for providing port infrastructure and marine services as well

as ensuring the safe, effective and efficient economic function-

ing of the national ports system.

TNPA used to rely on users man-

ually saving their data, an inefficient

practice that left the organisation

vulnerable to data loss. With an

excess of 1 800 desktop and note-

book computers across eight ports

and the TNPA head office, this

manual process relied heavily on

human compliance. This changed at the end of 2011 when it

awarded Altonet the tender to bring the whole process online.

Altonet’s CEO, Gareth Tudor, recently outlined how the com-

pany has ensured TNPA’s data is now secure.

“TNPA needed an intelligent, automated and secure backup

solution. We were awarded the tender at the end of 2011 and

we conducted due diligence in March 2012, ensuring that

all hardware and software met requirements, after which the

roll-out began. This was completed towards the end of 2012.

During this time we also provided an educational workshop for

helpdesk staff to ensure that they are able to deliver support to

users, should this be required.”

One of the most important requirements was for a fully auto-

mated solution that provided auto-scheduling of backups as

well as fixed opportunistic backup, and which would run in the

background without interrupting users.

Centralised management, strong encryption, version control

and the ability to work in a virtual machine environment were

also critical, as well as the ability to backup open files as well

as saved files. Data deduplication technology was required to

optimise storage capacity, along with support for multiple user

profiles on machines, roll-out via Active Directory and support

for both 32-bit and 64-bit Windows operating systems. “TNPA

also required the ability to lock user profiles, and specify

attributes and file types that each user or group of users are

required to backup. This helps to further optimise storage,

ensuring that only critical business-related data is stored.

Back-end reporting was also required for visibility on all users,

showing when backups occurred and how much data was

backed up each time,” Tudor adds.

He concludes: “The biggest threat to business, with all

employees working either on laptops or desktops, is a loss

of data resulting from people not backing up their work. HP

Autonomy Connected Backup minimised this risk by auto-

mating backup and ensuring that if data is lost for whatever

reason, it can be swiftly retrieved. We are confident that the

data is stored safely and that we are compliant with legislation

around data retention. We have already seen the benefits of

this by being able to quickly recover lost data and get TNPA

staff back to full productivity in short order.”

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Cargo Carriers 17

Diesel Technic AG 35

DigiCore OBC

Engen 19

Imperial Logistics OFC

Mercedes-Benz SA IBC

Mtrack 39

Paramount Trailers 23

Scania South Africa 15 & 27

UD Trucks IFC

Volvo Trucks 21

SAPICS 37

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TECHNOLOGY

“TNPA needed an intelligent, automated and secure backup solution.” Gareth Tudor,

CEO, Altonet

In a digitally driven world, Transnet National Ports Authority’s (TNPA) data is criti-cal for the state-owned entity to perform its mandated functions. Having an eff ec-tive backup and restore capability is integral in protecting this data.

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