transport world africa mar/apr 2013
DESCRIPTION
Transport World Africa Mar/Apr 2013 editionTRANSCRIPT
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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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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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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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
4 TWA | Mar/Apr 2013
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
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HOT SEAT
6 TWA | Mar/Apr 2013
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.
8 TWA | Mar/Apr 2013
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
10 TWA | Mar/Apr 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.
ffoorrccaarrggoo iinndduussttrryy iinn 22001133
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"Truckers and supply chain logistics service providers want more than a truck. They want added value"
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EXPERT OPINION
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COMMERCIAL VEHICLES
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
“
12 TWA | Mar/Apr 2013
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”
14 TWA | Mar/Apr 2013
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
18 TWA | Mar/Apr 2013
“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
20 TWA | Mar/Apr 2013
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
22 TWA | Mar/Apr 2013
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
SUPPLY CHAIN LOGISTICS
SUPPLY CHAIN LOGISTICS
24 TWA | Mar/Apr 2013
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.
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SUPPLY CHAIN LOGISTICS
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.
26 TWA | Mar/Apr 2013
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.
SUPPLY CHAIN LOGISTICS
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.
28 TWA | Mar/Apr 2013
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.”
SUPPLY CHAIN LOGISTICS
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
30 TWA | Mar/Apr 2013
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.
SUPPLY CHAIN LOGISTICS
FLEET MONITORING
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SUPPLY CHAIN LOGISTICS
32 TWA | Mar/Apr 2013
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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SUPPLY CHAIN LOGISTICS
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.
34 TWA | Mar/Apr 2013
Below Temitope Ogunfayo, CPIM, group manager at Procter & Gamble, Nigeria, one of the speakers at SAPICS 2012
Companies,
resources to
office for sup
numerous ev
“The SAP
for the
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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
36 TWA | Mar/Apr 2013
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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38 TWA | Mar/Apr 2013
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
40 TWA | Mar/Apr 2013
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.”
Africa Rail 33
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
Index to advertisers
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.
TRANSNET NATIONAL PORTS AUTHORITY
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