twa jan/feb 2013

Logistics Optimising transport routing and scheduling

Corridor Improving logistics between Durban and Gauteng

Commercial Vehicles The road ahead in 2013

“Scania Trucks have been developed for use in the most demanding market” Steve Wager, MD, Scania SA P16

ISSN 1684-7946 Jan/Feb 2013 Vol. 11 No. 1 / R40.00 incl. VAT

IN THE HOT SEAT

Appropriate technology for Southern Africa

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1TWA | Jan/Feb 2013 1TWA | Jan/Feb 2013

Intraregional supply chain solutions from producer to consumer

INSIDETHIS ISSUE

COVER STORYUD Trucks

Fuel is playing an increasingly vital role

P4

onsumer

ORYucks g an role

P44

REGULARSEditor’s word – Eternal optimist in 2013 2FESARTA – Barney’s comment 3Cover story – UD Trucks 4Hot seat – Scania’s Steve Wager 6FESARTA news 8News desk 10

COMPANY PROFILENgululu Carriers – Expanding into Africa 12

COMMERCIAL VEHICLESThe road ahead in 2013 16MAN – Optimistic about 2013 for both truck & bus 18Scania – Ensuring efficient reliable transport solutions 22

TRAILERSTrailers deliver optimum performance 20

LIGHT COMMERCIALSA’s manufacturers remain buoyant 24

SUPPLY CHAIN LOGISTICSOptimising transport routing and scheduling 26Tracking into the future 28

MARITIMEUnlocking the great potential in Africa 30

REGIONAL CORRIDOR FOCUSImproving logistics between Durban and Gauteng 32

RAILThe role of rail in intra-Africa trade 36Transnet branch lines critical in stimulating economy 38

16 18

22

24 32 38

1TWA | Jan/Feb 2013

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The road ahead might be tough in 2013 but, as they say, without chal-lenges there would be no opportunities!

Am I optimistic about the road ahead? Yes, I am. But I have always been an eternal optimist irrespective of the challenges I am experiencing at the time.

Here is hoping you are able to change all your challenges into opportunities and you have a safe and productive 2013!

In this issue, UD Trucks outlines its commitment to leading fuel efficiency, because as we all know fuel forms a major part of the costs involved in operating a truck.

The chairman of Ngululu Bulk Carriers tells us how the company became a true BEE transport company and its future plans of expanding its footprint.

We have Scania’s MD Steve Wager in the Hot Seat answering our questions. We also speak to some of the OEMs in both the heavy and light commercial vehicle sectors to find out what we can expect from them during the year.

At the same time, MAN outlines its optimism about 2013 for both its truck and bus sectors and Scania tells us how the company is ensuring efficient reliable transport solutions for its customers.

If you would like to find out how trailers can deliver an optimum performance, carrying loads on the roads then turn to the trailer section and find out what the specialised manufacturers have to say.

Optimising transport routing and scheduling is key and crucial to any operation nowadays, especially with the spiralling fuel costs and, in this issue, we look at how operators get the best value out of their fleet.

An important aspect of any fleet operation is how operators can track the move-ments of their valuable cargo 24 hours a day and key players in this field outline tracking solutions available for fleet owners.

We take a look at the Durban-Free State-Gauteng corridor, which forms part of government’s 2050 vision and is the backbone of South Africa’s freight transporta-tion network, vital in facilitating economic growth for the country and the Southern African region.

We also look at the role of rail in intra-Africa trade and how Transnet Freight Rail is revitalising and reopening branch lines in order to improve access to markets as well as increase overall freight volumes.

As always, a varied read – enjoy!

Eternal optimist in 2013

ED’S WORD

Publisher Elizabeth ShortenEditor Simon Foulds • [email protected] of design Frédérick DantonSenior designer Hayley Moore MendelowChief sub-editor Claire Nozaïc Sub-editor Patience GumboContributors Barney Curtis, Allen Jorgenson Glen TancottProduction manager Antois-Leigh BotmaProduction coordinator Jacqueline ModiseDistribution manager Nomsa MasinaDistribution coordinator Asha Pursotham

Financial manager Andrew LobbanAdministrator Tonya HebentonPrinters United Litho JHB • t +27 (0)11 402 0571Advertising sales

Hanlie Fintelman • [email protected] +27 (0)12 543 2564

MEDIA No. 4, 5th Avenue RivoniaPO Box 92026, Norwood 2117t: +27 (0)11 233 2600 f: +27 (0)11 234 7274www.3smedia.co.za

Annual subscription: R290 (incl VAT)[email protected] 1684-7946 © Copyright. All rights reserved.

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

2 TWA | Jan/Feb 2013


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by Barney Curtis, chief executive offi cer, FESARTA

FESARTA COMMENT

vehicle dimensions, harmonisation of road

user charges, driver immigration require-

ments, corridor monitoring and the introduc-

tion of self-regulation.

The objective of the 2012 Truckers’ Forum,

organised by FESARTA and 3S Media, was

to identify the leading problems along the

corridors in East and Southern Africa, and to

workshop the best solutions for them. And,

it was important that the outcomes from the

forum be integrated into the CTTTFP, so that

there could be support for implementing

the solutions.

Fortunately, the main outcomes, i.e. border

delays, load limits and overloading control,

arbitrary and excessive charges, road safety

FOR THIS RELATIONSHIP to con-

tinue effectively, FESARTA must align

its activities with the Comprehensive

Tripartite Trade and Transport Facilitation

Programme (CTTTFP).

This programme has been developed

over recent years by the three Regional

Economic Communities – COMESA, EAC

and SADC – and the two TradeMarks (TMSA

and TradeMark East Africa (TMEA).

It covers items such as customs docu-

ments and procedures, regional customs

bond, efficient management of border posts,

harmonisation of third-party motor vehi-

cle insurance, harmonisation of load limits

and overloading control, standardisation of

FESARTA and TradeMark Southern Africa (TMSA) have a close working relationship.

and self-regulation, could all be linked to the

items in the CTTTFP.

It has therefore been possible for FESARTA

and TMSA to develop a work programme

for FESARTA, which will have the objective

of implementing the solutions agreed at

the forum.

The next forum (renamed the Africa Road

Transport Forum), will assess what has been

achieved since the Truckers’ Forum and

workshop a revised way forward.

This process, started with the Truckers’

Forum, is a long one.

Problems have been on the table for

many years, and we would be naïve to

think they can all be solved in a few

months. But, with the determination and

commitment of all the stakeholders, there

is sure to be significant progress before the

2013 forum, which will be held on the 17 and

18 April, in Johannesburg.

4 TWA | Jan/Feb 20134444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444 TWATWATWAWWTWATWATWATWATWATWATWATWATWATTWATWATWATWATWATWATWATWATWTWATWATWATWATWATWATWATWAWTWATWATWATWATWTWATWATWWATWAWATWAWAAATWAAATWATWAAAAWATWAWAAAAAAAATWAATWWAWTWATWAATWATWAWAWAAWAATWATWAAAAWAWAWATWAWAWATWAWWTWATWATWATWAWATWAAWATWAAAAAAAATTWWWAWWAWWAWAWAAAAWAWAWAWAAAAAWWTWAWAWWWWWWWWAAAWAAAAAAAATWAWAWAWAWAWWTWWWTWTWWWAWAAAAWATTWATTTWWWWTWWWWWAWWATWAAATWATWATWATWWWWWTWAAAAAAWAWATWAWAWATTWATTTTTWTWWWWTWWATTTTTWWTTTWWWWWWAWWWWWWWAW |||||||||||||||||||||||||||||||||||||||||||||| nJanJannnJJJanJannJanJannJanJanJanJanJJJJJJJJJJJJanJanJanJanJanJanJanJanJananJanJJJJJJJJJJJJannJanJanJanJJJJJJJJJJJJ nnJanJanJananJanJananannanaaJanJanJanJannannJannnJJJJananJannJ nnnJannnJJ nn/Fe/Fe/Fe/Fe/Fe/FeF/F/Fe/Fe/Fe/Fe/Fe/Fe/Fe/F/Fe/Fe/Fe/Fe/Fe/Fe/Fe/FFe/F/FeF/FeFe/FeF/FeFeFeFe/FeFe/F/Fe//Fe/Fe/Fe/F/F/Fe///Fe/FeFFeee/Fe/Fe/FF/Fe/FeeFee/FeF/FeFeFeFFFF/FFFF/FFee/Fe/Fe/Fe/FFFF/Fe///FFF/Fe/Fe/Fe////Fe/FeFFeee/Fe/FeFe/FeeFeeeee/F/FeeFeeeeeeeFF/FeeeeFee/FeeeFeeeee/F/FFFFFeeFeeFeeeeeeFeeeFFFFFFFFFFFFee/FeeFee//FFFFFFFFFFF/FeFe//Fe//////FFFFF/FFFF/FF/F////////////// bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb 20202220222020000202020202220202000202002020202200020200000000200202022220002000200020002020202022222222222200020202020202020222222222202000000202222222222000000002020202022202020000202020220200002202202020020222000020020022220000000020113131311113313333333111313133133333331111333313331113313133133111113331313131311111113313133131333111113131131333333111131113131333313111111313131331131311313131313131333313131313131131311313133333131311331331313313113331313333333

COVER STORY

Fuel is playing an increasingly vital role in the Fuel is playing an increasingly vital role in the

transport industry, as it forms a major part of transport industry, as it forms a major part of

the costs involved in operating a truck.the costs involved in operating a truck.

IT IS BECOMING all the more important for

customers to carefully consider the fuel consumption

statistics of a vehicle before purchasing a truck,” says

Rory Schulz, UD Trucks Southern Africa’s general man-

ager of corporate planning and marketing. “In addition, one

also needs to look at aspects like driver training in order to

ensure the most efficient operation of a vehicle, careful route

planning and optimal load maximisation.”

If one makes a case study of some typical rigid vehi-

cle applications with typical annual mileage, operating at

an all-up mass of 7, 15 and 26 t respectively, the fuel

cost will constitute between 25 and 27% of a fleet owner’s

annual operating costs. In a typical truck tractor and inter-

link application, the fuel constitute around 50 to 56% of the

operating cost.

Schulz points out that a number of factors come into

play when a fleet owner needs to calculate the pos-

sible fuel consumption of a truck.

“Environmental factors, such as temperature

and wind, as well as road surface type

and operating conditions,

UD TRUCKS

always warrant strong consideration when factoring fuel

consumption figures,” he says. “The truck’s body type and

overall frontal area, the specific tuning of the engine and

driveline components, tyre choice, tyre pressure and wheel

alignment, as well as the load or all-up operating mass of the

vehicle should be on the list of aspects that need constant

monitoring and attention.”

Over the years, UD Trucks has continually invested in

researching the best fuel consumption practices and appli-

cations for its local product range. The company therefore

believes in only introducing trucks that employ appropriate

technology for the demanding road and operating conditions

of the African continent.

“The quality and hygiene of fuel available in many places in

the Southern African region often leaves a lot to be desired,”

adds Schulz. “Furthermore, it is imperative that one uses the

appropriate fuel for the specific design of the fuel system of

any particular vehicle; in other words, ultra-low sulphur diesel

or 10 ppm for Euro 4 and upwards. Driver training also plays

an increasingly important role, as the correct driving tech-

niques can save operators a lot of money on the long run.”


Appropriate technology for

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COVER STORY

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

Over the years technology has made many advances

to increase fuel efficiency. Initially, mechanical advances

came by the way of improvement in volumetric efficiency

and combustion chamber design and shapes. Fuel

measurement and metering, as well as tuning, have

also improved the efficiency of trucks through the years.

These also include advancements in fuel technology.

“Materials and manufacturing processes are enhanced

to allow for greater compression ratios and tolerances

in order to increase injection pressures. The advent of

forward induction systems such as turbocharging also

contribute greatly to the advancement in fuel efficiency,

while engine cooling improves dramatically as the

industry evolves and become more sophisticated,” explains

Schulz. However, the most significant improvement came

in the form of electronic control units, which has allowed

manufacturers to control the exact amount of fuel that is

injected at a specific pressure with precision timing. This

vital development results in overall combustion efficiency

and also helps operators achieve lower emissions, which

ultimately leads to improved fuel economy.

Schulz reiterates

that there are now

engines available

that are especially

fuel efficient at a

particular rev range

and engine load. To

enable operators

to keep the vehicle

operating in this

ideal range, multi-

speed transmissions have been introduced and further

developments with electronics allow the vehicle to func-

tion in an optimum fashion with automated manual trans-

missions and electronic vehicle management systems.

“With these systems of course comes much driver

orientation and ongoing training to improve their skills to

maximise these benefits. Into the future, emission levels

will call for further developments, but alternative fuels to

current fossil fuels, such as diesel, are most likely going

to be the way to go,” concludes Schulz.

5TWA | Jan/Feb 2013

Southern Africa


In this issue’s hot seat we put Scania’s MD, Steve Wager, on the In this issue’s hot seat we put Scania’s MD, Steve Wager, on the

spot asking him key questions about the company and why fl eet spot asking him key questions about the company and why fl eet

operators should be utilising Scania’s range of commercial vehicles.operators should be utilising Scania’s range of commercial vehicles.

HOT SEAT

SCANIA

“By understanding the whole chain, we can not only improve our customers’ transport effi ciency, but the effi ciencyof the whole chain”

Why should fleet operators consider purchasing Scania trucks for their operations in both South Africa and

the Southern African region?Scania trucks have been developed for use in the most

demanding markets with high technological content, high

performance and outstanding fuel consumption backed by

24/7 service and parts backup.

How is Scania ensuring it not only understands its customers but also the customer’s custom-ers, so you can ensure you have the best trans-port solutions for them?It is key to understand the customer’s customer – let us call

it the industry. Our customers are normally the link between

ourselves and the industry. By understanding the whole chain,

we can not only improve our customers’ transport efficiency,

but the efficiency of the whole chain. All parties will benefit

from it. Around the world, Scania is conducting field tests

within different industries to evaluate how to optimise trans-

port solutions for the future. That includes higher payloads,

increased efficiency, less environmental impacts, lower

operational costs, etc. These tests are conducted with the

participation of the whole chain so that all parties can ben-

efit from the knowledge that we get.

What makes Scania’s trucks different from its competitors?Our trucks are unique but our outstanding transport solu-

tions package makes the real difference. These include:

1. Driver comfort and safety – Our cabs offer a high

degree of safety features to protect the driver in case of

an accident and conforms to the Swedish crash test.

Comfortable sleeper bunks designed by a leading mat-

tress manufacturer ensure a good night’s rest.

2. In-house insurance – As part of our one-stop-shop policy

we offer in-house insurance to our customers.

it

s

s-

s,

er

e

-

f

y

3. In-house financing – Scania Finance, our in-house finance

company, offers financial packages to suit customer

needs and speed up transactions.

4. Wholly owned dealer network – Our dealer network is

wholly owned giving us direct control over sales, services,

pricing, deliveries and customers.

5. Driver academy – Our driver academy offers driver train-

ing packages to ensure trucks are operated within design

parameters ensuring best returns on investment for

the customer.

6. Operating economy – When operated within legal limits

like loads and speed driven by a trained driver, our trucks

deliver outstanding results.

7. A 24/7 call centre – Our call centre is manned by

top technicians and services sub-Saharan Africa to

attend to unlikely breakdowns. Scania parts are available

from our dealer network with back up from our central

parts warehouse.

Developed for the most demanding markets

7TWA | Jan/Feb 2013

HOT SEAT

at the huge number of people liv-

ing here, consuming goods, need-

ing transport, the possibilities for

Scania as a provider of transport

solutions is great. There is a clear

connection between GDP and the

need of transport. When the world

moves out of this recession, we

will have a very positive growth in

our industry.

Bringing your wealth of experience from having worked in both the UK and Europe, how is the South African truck market faring compared to the UK and European markets?The European transport industry is generally far more

mature than in Southern Africa, but nevertheless customers’

demands from their transport solution providers are largely

the same. Operators are seeking maximum uptime to sup-

port the ever-increasing demands of their customers and

of course they are looking for the lowest possible total cost

of ownership. Excellent customer service and a wide range

of service offerings are thus essential ingredients for a suc-

cessful operation here. Scania is thus able, from its European

market experience, to offer extensive transport solutions

including truck rental, repair and maintenance contracts,

financing and insurance, workshop takeovers – the list is

almost endless.

“Our customers are buying a premium product at a premium price and they expect a premium return on their investment”

How important is continuous driver training by Scania to those fleet owners who have purchased and are purchasing your vehicles, especially with the technology now available in your trucks?Very important! The role the driver plays is critical to the suc-

cess of any transport company. The better trained the driver

is, the more economical the operation of the fleet will be. But

it is not only economic factors such as fuel consumption,

lower maintenance and residual values that are positively

affected by driver training, the range is much wider than that.

Safety, environmental factors, improved employee satisfac-

tion and retention, the list continues… Our customers are

buying a premium product at a premium price and they

expect a premium return on their investment. Driver training

is the key to utilising the vehicle to its full potential.

Looking at the economic and political land-scape in South Africa, are you optimistic about the future of Scania and Southern

Africa, and why? Yes I am. South Africa has its

internal challenges, but the

majority of the problems that

we see today are caused by

external factors, very much

connected to the downturn

in the global economy. Looking


FESARTA NEWS

THE EAST AFRICAN COMMUNITY in

partnership with the United

States Agency for Internation-

al Development has launched

the Revenue Authorities Digi-

tal Data Exchange platform

in Tanzania.

The Revenue Digital Data

Exchange is a software plat-

form for customs and transit

data exchange, manage-

ment and reporting. It allows for near real-

time transmission of customs documentation

to authorised public and private sector users

at key border posts and cities across the fi ve

countries within the East African Community

(EAC) – Burundi, Kenya, Rwanda, Tanzania

and Uganda.

The software saves time and money by

shortening cargo processing times and

reducing the number of offi cials needed to

process cargo as some of the largest non-

tariff barriers to trade and cost to businesses

in East Africa are delays at border crossings.

FIVE SOUTHERN AFRICAN COUNTRIES

plan to coordinate their rail services to bolster

trade through Africa’s largest port in Durban.

The deal will do away with bilateral agree-

ments, which complicate the export of copper,

grain and containers across fi ve countries

through South Africa.

“The main objective is to align the fi ve railway

lines towards a unifi ed railway system on the

North-South Corridor by establishing a Joint

Operating Centre in Bulawayo,” says Nyameka

Madikizela, head of international business at

Transnet Freight Rail.

EAST AFRICA

New software platform developed by theregion saves time and money

SOUTHERN AFRICA

Rail link to streamline Southern African trade

Effi ciencies at borders are now achieved

through advanced notifi cation of shipments

and completion of documentation before

goods arrive. Advanced completion of cus-

toms declarations can save up to 12 hours in

transit time at border crossings.

The Revenue Digital Data Exchange is

owned, operated and maintained by the

revenue authorities of East Africa and was

developed by the EAC along with the national

revenue authorities with support from the US-

AID East Africa-funded Competitiveness and

Trade Expansion (COMPETE) programme.

Railway companies in the Democratic

Republic of the Congo and landlocked Zambia,

Zimbabwe and Botswana will streamline their

existing rail infrastructure to facilitate transport

to South Africa’s Indian Ocean port.

The lack of a regional deal causes many

delays in exports and imports. Increased

outside trade with the continent has seen a

greater need for intra-regional cooperation to

get important resources across vast areas to

ocean ports.

“The opportunities exist in copper, chrome

ore, etc., where the mines need some con-

fi dence in rail and, by cooperating

through this agreement, we can devel-

op a strategy that will provide capacity

immediately,” explains Madikizela.

The deal will see rail take over vol-

umes that the region’s roads mostly

carry at the moment, she adds.

It will also bolster Durban’s competi-

tiveness against ports in Tanzania on

the Indian Ocean and Angola on the

Atlantic. The rail centre, run from Zim-

babwe, is due to launch this year.

SUB-SAHARAN AFRICA

Poor maintenance “threatens roads in sub-Saharan Africa”ROAD TRANSPORT IS ONE of the focal

sectors for the European Development Fund

cooperation strategy with most sub-Saharan

African countries.

Financially, it is by far the most important

cooperation sector, with approximately

€7.4 billion (R86.61 billion) in European De-

velopment Fund (EDF) commitments made

in this region between 1995 and 2011.

However, improper road maintenance and

vehicle overloading is putting the sustainabil-

ity of sub-Saharan road network into danger.

In sub-Saharan Africa, roads are the domi-

nant mode of freight transport, accounting

for more than 80% of total movements of

goods and services and transport needs are

growing rapidly.

The aid-recipient countries visited by the

European Union (EU) do not do enough to

ensure the sustainability of road infrastruc-

ture. In all partner countries visited, roads

are affected to varying degrees by premature

deterioration. Most of these countries have

adopted institutional reforms, notably entail-

ing the creation of road funds and road agen-

cies, and made signifi cant progress on road

maintenance. However, many challenges re-

main to be addressed in all of them to ensure

appropriate maintenance. Although spending

on road maintenance has increased over time

it remains insuffi cient to cover the needs.

“In Europe, we are used to several options

for our transport. In sub-Saharan Africa, if it

is a question of transport, that means roads.

Unless the EU Commission and its partners

in sub-Saharan Africa start taking sustain-

ability of the roads very seriously, they will be

in danger of losing what we’ve built togeth-

er,” says Szabolcs Fazakas, the Economic

Commission for Africa member responsible

for the report. “They [African leaders] need

to take responsibility for enforcing load limits

and to maintain the roads properly.”

9TWA | Jan/Feb 2013

FESARTA NEWS

THE THREE EAST AFRICA GOVERNMENTS

of Tanzania, Rwanda and Burundi have reiter-

ated their political will and commitment to

hasten the proposed Isaka-Kigali-Musongati

construction project of a railway line, which has

been in discussion for 10 years without formal

implementation.

Transport ministers of the three countries:

Dr Harrison Mwakyembe (Tanzania), Alexis

Nzahabwanimana (Rwanda) and engineer Moise

Bucumi (Burundi) have also agreed to sign a

Memorandum of Understanding, binding the

countries to results of studies and agreements

on how to go about implementing the project.

EAST AFRICA

Transport ministers discuss Isaka-Kigali-Musongati rail project study

EAST AFRICA

The highest amount of bribes from transporters and drivers along the transport routes

The fi ndings of the completed phase one

feasibility studies were conducted by DB

International of Germany in 2009 and

Burlington northern Santa Fe (BNSF) of the

United States. The two fi rms then considered

the project to be economically viable and

fi nancially feasible.

Current project coordinator Josephine

Uweneza of Rwanda, in her presentation to

members of a Joint Technical Monitoring

Committee of the three countries, highlighted

this study in her report adding that a detailed

study would be completed by the end of

March 2013.

EAST AFRICA

Free trade has a way to go as non-tariff barriers push up cost of doing business in the regionBUSINESSES IN EAST AFRICA will

have to wait longer to reap the fruits of free

trade, thanks to non-tariff barriers.

According to a report by the East African

Community (EAC) Secretariat, rather than

doing away with non-tariff barriers (NTBs)

by December 2012 in accordance with

the EAC plans, some countries have even

introduced fresh ones – about 10 – while

35 remain unresolved. Only 36 have been

resolved.

The Secretariat also found that differ-

ences over elimination of the barriers

had deepened, denying the region larger

markets, economies of scale and promotion

of local, regional, and global trade — the

benefi ts envisaged with free trade among

the nations.

This means businesses will have to con-

tinue incurring huge costs arising from the

NTBs – mainly weighbridges, roadblocks,

poor infrastructure, unnecessary delays

at border posts and lack of harmonised

import and export standards, procedures

and documentation.

The sad state of affairs is blamed on the

absence of a legally binding framework

that has left businesses at the mercy of

individual countries. A draft law meant to

punish countries that fail to implement

agreed upon mechanisms to eliminate

trade barriers was submitted to the regional

parliament in November 2012.

EAC secretary-general Dr Richard

Sezibera says a legal framework has been

developed and is awaiting comments from

member states.

A SURVEY BY TRANSPARENCY INTERNA-TIONAL KENYA and TradeMark East Africa

has revealed that regulatory authorities in East

Africa demand the highest amount of bribes

from transporters and drivers along the trans-

port corridors.

According to the report, titled Bribery as a non-tariff barrier to trade: a case study of East African trade corridors, Tanzania’s regulatory

authorities rank worst at US$12.64 (R110.76)

followed by Kenya at US$6.72, then Uganda at

US$3.67, while Rwanda ranked fourth

at US$0.679 with Burundi being the

lowest at US$0.293.

The survey, conducted in col-

laboration with Transparency

International chapters in

Burundi, Rwanda, Uganda

and the Transparency

forum in Tanzania,

further indicates that bribery costs in Tanza-

nia per year consisted of about 18.6% of the

value of goods transported.

Lisa Karanja, director of Private Sector

and Civil Society, from TradeMark East

Africa (TMEA), which funded the study, says:

“Regional integration is gaining pace but ex-

istence of non-tariff barriers continues to be

a deterrent in the full implementation of the

various protocols. TMEA commissioned this

study with a view to enhance the advocacy

for the elimination of non-tariff barriers.

“We expect a comprehensive dialogue

between state and non-state actors to

address the key issue highlighted by this

report.

“A resolution of the identifi ed issue will

lead to a more competitive business environ-

ment that will result in increased trade and

ultimately prosperity for East Africans.”


A R140 MILLIONgeneral bulk ship-

loader is the latest

addition in Transnet

Port Terminal’s

R33 billion Market

Demand Strategy in-

vestment programme.

Custom-built to complement the terminal’s

operational envelope, the loader was de-

signed in Austria and built in China; however,

South African engineering company Sandvik

has managed its entire procurement. Its capacity is a guaranteed

2 500 tph at a bulk density of 1.9 t/m3. The linear travelling loader will

be suitable for all export commodities the terminal handles including

coal, magnetite, chrome and chloride. Just over 70% of the terminal’s to-

tal commercial trade is export. The addition of equipment is aimed at the

Market Demand Strategy’s promise of facilitating unconstrained growth,

unlocking demand and

creating world-class

port operations through

improved effi ciencies.

A skills transfer

opportunity has also

been created through

Sandvik where Transnet

Port Terminal operators and the

technical team will be trained

for sustainable operations. The

pre-assembled loader will be of-

fl oaded and installed upon arrival

to undergo commissioning.

The machine is scheduled to be

fully operational by April 2013.

NEWS DESK

MOZAMBIQUE

MCLI AGM Corridor update eventTHE MAPUTO CORRIDOR LOGISTICS Initiative is hosting its Cor-

ridor Update event on 21 February 2013 at the Kambaku Golf Club

in Komatipoort, which overlooks the confl uence of the Nkomati and

Crocodile Rivers with breathtaking views of the Kruger National Park.

Maputo Corridor Logistics Initiative (MCLI) members and corridor

stakeholders across the logistics supply chain will attend the meeting,

which takes place during a gala dinner in the evening.

There will be a short programme of AGM proceedings and a report

from the two MCLI chairmen. The Corridor Update will then focus

on progress on the 24-hour one-stop border post at Lebombo/Res-

sano Garcia with the keynote address being shared by the South

African Revenue Service and Alfandegas Moçambique. In addition,

Transnet Freight Rail, Swaziland Railway and CFM will give an update

on developments regarding the rail service to the Corridor and the

new services into Maputo via the Goba line in Swaziland. TransAfrica

Concessions, the N4 road concessionaire, will also provide insight

into the developments and upgrades planned on the Johannesburg to

Maputo route.

The Maputo Port Development Company will also present an update

on the port’s growth trajectory and its investment roll-out in line with its

2033 master plan. A bus tour to the Port of Maputo will take place on

22 February before returning to Johannesburg late that same evening.

Before the gala evening on 21 February, a Golf Day has been planned

with golfers taking to the fi eld in a Four Ball Alliance (2 Scores to Count)

competition. This presents a wonderful networking opportunity while

playing a round of golf on one of the Lowveld’s beautiful golf courses.

For non golfers a number of local excursions including game drives

into the Kruger, a luxury day spa experience, aerial game viewing and

the possibility of visiting a rhino and rare antelope breeding programme

are being planned.

For more information about the Corridor Update please contact admin@mcli.

co.za or call +27 (0)13 755 6025.

RICHARDS BAY TERMINAL

Equipment boost still tracking according to plan

SOUTH AFRICA

ATNS hosts Benin minister of transport

A BENIN GOVERNMENT DELEGATION led by its

minister of Public Works and

Transport, Lambert Koty, visited the Air Traffi c and Navigation

Services’ Aviation Training Academy in Bonaero Park, near the OR

Tambo International Airport.

“We are very impressed at the level of competency, knowledge and

skill in this organisation. The same can also be said with regards to

infrastructure and technology deployment. We should have been here

some time ago” said Koty.

The Air Traffi c and Navigation Services (ATNS) board chairman,

Mpho Mamashela, addressing the Benin delegation said: “Air trans-

port is a major contributor to global economic prosperity. Aviation

provides the only rapid worldwide transportation network, which

makes it essential for global business and tourism. It plays a vital role

in facilitating economic growth.

“Aviation safety is important for international trade and economic

development. Our work to promote safety through continuous training

also strengthens the global economy, because the two are deeply

intertwined. South Africa’s economic future is directly linked to reach-

ing beyond our borders for new trade and investment opportunities.

Our aim is to deepen ties with large, dynamic and high-growth mar-

kets around the continent.”

Rushj Lehutso, ATNS executive: Commercial Services, added: “The

global aviation supply chain’s link must be strong for the entire

system to function. ATNS is proud to have initiatives in place, aimed

at working closely with Benin’s aviation department to maintain and

enhance the integrity of the global aviation system. Together we will

improve the conditions for cross-border trade, economic growth and

long-term prosperity for generations to come.”

Celebrating the arrival of the Richards Bay Terminal’s new R140 million ship loader were (from left): chief maintenance offi cer, Shane Narainsamy; project managers Alec Schemel and Kris Naidoo; terminal manager, Victor Mkhize and general manager: Capital Projects and Maintenance, Logan Naidoo

The red ship loader pictured in the Port of Richards Bay after its arrival on 16 January

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THE SELF-REGULATION SYSTEM, as stipulated in the Road Trans-

port Management System (RTMS), is proving to be a very effective tool

for South African truck and bus operators in managing fl eets effi ciently

and cost-effectively, with many case studies to back up the success of

the roll-out. “The RTMS, which has been in operation since 2003 and

is fi nding growing support among fl eet operators, continues to show

outstanding results since implementation and supports the Department

of Transport’s National Road Freight Strategy as the fourth pillar in the

action plans,” comments the chairman of the RTMS national committee,

Adrian van Tonder of Barloworld Logistics.

“Currently there are 2 674 trucks and 395 buses (the Buscor fl eet)

from 68 company depots carrying the RTMS accreditation logo, with a

quantum leap in participation having occurred in the past 24 months,”

adds Van Tonder.

RTMS is an industry-led, government supported, voluntary self-

regulation scheme that encourages consignees and road transport

operators to implement a management system – a set of standards –

that demonstrates compliance with the Road Traffi c Regulations. It also

contributes to preserving the road infrastructure, improving road safety,

ensuring driver health and wellness as well as improving productivity.

Hino, one of South Africa’s leading truck manufacturers, is giving its full

support to assisting with the roll-out of RTMS. Hino uses its nationwide

dealer network as an important catalyst to spread the good news and

benefi ts of using the system to its customers and then assisting them

with the implementation. “We at Hino see the RTMS as a very important

SOUTH AFRICA

Self-regulation working well for SA transport industry

NEWS DESK

initiative in creating responsible truck operators who show concern for

the roads and environment while focusing strongly on fuel saving,” says

Hino South Africa’s vice president, Dr Casper Kruger. “Our support for

the RTMS has already extended to our dealers and we are sponsoring

a series of successful and well-attended information-sharing sessions

throughout the country to promote this programme. “We then encour-

age our dealers to keep up the momentum by following up with the

transport operators who are not on the system to take up the challenge

and assist them in developing a strategy to meet all the requirements,”

adds Kruger.

“The development of the RTMS fl owed over from initiatives by the

timber industry in KwaZulu-Natal at the beginning of the 21st century

to combat overloading, which causes damage to roads, while also con-

tributing to cutting the number of accidents involving trucks,” explains

Van Tonder. “The KwaZulu-Natal project was known as LAP (the Load

Accreditation Programme) and was also self-regulatory. This concept was

expanded with the addition of driver health, compliance with road traffi c

regulations and all aspects of road safety to establish the basis for RTMS

standards.” Driving forces in those early days included Paul Nordegen,

Oliver Naidoo and Andrew Kriek, and they formed a steering commit-

tee in 2006 to give momentum to the initiative. There is now a more

formalised RTMS national committee made up of representatives of a

host of stakeholder organisations and associations that is now driving

the project forward. Current chairman, Van Tonder, came aboard in 2009

and is extremely enthusiastic about this initiative.


PROFILE


Ngululu Bulk Carriers has a rich history dating back to the 1980s. Since then, the company has grown to become the dominant transporter in the ferrochrome sector and an extremely successful BEE owned and operated company. It is a shining example of how historically disadvantaged persons moved from a minority shareholding to take control between 2003 and 2009.

SUCCESSFUL BLACK EMPOWERMENT TRANSPORT COMPANY

Established in SA and expanding into Africa



By the end of July 2004, both Luvhani and the current CEO Freddy Sinthumule had literally fallen in love with the company and decided to increase their stake to 26%

CHRIS LUVHANI, CHAIRMAN of Ngululu

Bulk Carriers, says prior to 2003 his invest-

ment company had no interest in expanding

into the transport and logistics sector.

BEE partner wantedIn the late 1990s, Lukas Potgieter, who founded the com-

pany in the 1980s, was under pressure from his mining

clients to become more BEE compliant as per the mining

charter.

“Prior to our introduction, Potgieter had tried a few

empowerment models, which were not successful, and

he almost got his fingers burnt in the process of trying

to find the right BEE partner. It was, however, through an

acquaintance that I was introduced to him and his com-

pany, Lukas Potgieter Vervoer.

“When I first met Potgieter in 2003, I told him that I did

not know anything about the transport industry and could

not buy a 26% stake in order for him to be compliant

according to the mining BEE requirements and therefore

appease his clients. However, I told him that I would be

interested in taking an initial 10% investment stake in the

company and if he was serious about having a true black

empowerment partner actively involved in his business, as

opposed to simple window dressing, then I would increase

my investment.”

Another condition Luvhani had when purchasing the

10% was that should he want to increase his stake in the

company both parties had to agree how much he could

increase his stake to. When Luvhani’s company purchased

the first 10% stake it was therefore agreed that if Potgieter

was genuine and wanted a proper empowerment partner

Luvhani would then take a controlling stake in the com-

pany within five years.

The deal was signed in December 2003 and was to take

effect in April 2004. By the end of July 2004, both Luvhani

and the current CEO Freddy Sinthumule had literally fallen

in love with the company and decided to increase their

stake to 26%. By 2008, Luvhani wanted to take control

of the company, allowing the owner to retire. In 2009,

he purchased a further 25% enabling Ngululu group to

take control. By the end of that year, a share buyback of

Potgieter’s remaining 9% saw Ngululu increasing its stake

to 56% of the issued shares in the company.

Name changeIt was at this time that Luvhani realised they had to look at

changing the name of the company to reflect the owners,

at the same time sending out a strong message to the

market that there had indeed been a serious empower-

ment deal within Lukas Potgieter Vervoer.

“Some of our major clients had been pushing for a name

change. I am a sensitive man and knowing the dynamics

of the industry I did not want to dent Potgieter’s image

because he had spent many years building up and estab-

lishing a credible company. But one day after we had seen

a client, Potgieter turned round and said that “some major

clients are complaining about the company’s name and it

is time to change the name to reposition the company in

the prevailing dispensation”.

Following Lukas Potgieter’s

retirement in May 2009, the

company was rebranded as

Ngululu Bulk Carriers and

rebranding of the assets was

completed by the end of

December in the same year.

Successful operations“I am extremely proud of

where the company stands


The team from Mercedes-Benz Commercial Vehicles Centurian with the management of Ngululu Bulk Carriers following the recent delivery of the last of 80 Mercedes-Benz trucks purchased in a deal worth R160 million

today as a black-

owned company

employing about

650 people with

400 drivers. Our

business dominates the Eastern limb of the Bushveld –

the Mpumalanga area – with our operations going as far

as Francistown in Botswana, Maputo in Mozambique, and

Richards Bay and Durban.”

Ngululu Bulk Carriers’ clients are bluechip companies

and the company’s key operations involve transporting

chrome ore, ferro-chrome, nickel and platinum concen-

trates, reductants as well as energy coal.

“Key to the success of our operations is the high rate of

return cargo our trucks bring back. We believe in being

open and honest with our clients and when we quote we

tell our clients how much it costs if the truck has a return

cargo and the rate if the truck does not have a return

cargo. When the client arranges a return cargo we then

pass the full benefit on to them within the costing.”

One of the key drivers of this business is tracking the

vehicles carrying precious cargo over vast distances. “You

need to know where the trucks are

24/7 because carrying platinum and

nickel concentrate from the mines

means they are targets of criminal

elements.”

Ngululu Group also has a controlling

interest in a commercial tracking com-

pany – ITA Goup – based in Century

City, Cape Town, which provides the

monitoring services.

Apart from tracking commercial

vehicles across Southern Africa the

company also monitors all fuelling stops undertaken by

any of the trucks within the Ngululu Bulk Carriers stable.

“People can be quite innovative when it comes to stealing

fuel, which is a serious business and if not kept in check

can ruin a company. To keep this in check, all our vehi-

cles are refuelled at our depots or at predesignated truck

stops. When drivers want to refuel they have to first contact

us via an 086 number where we can ascertain if the par-

ticular vehicle being refuelled is scheduled for a refuelling

or not. Through this system we have successfully been

able to curb major fuel thefts from occurring.”

Diversifying and expanding“Where are we going? We intend both diversifying and

expanding our transport business not only in South Africa

but beyond our borders.

“Countries up north are growing at a faster GDP pace

than in South Africa and a lot of these are landlocked,

which creates great opportunities for us. This is why we

are expanding into the ports of Beira in Mozambique, Dar

es Salaam in Tanzania and Mombasa in Kenya. The beauty

about this East African link is that it is an economically

growing region and, because of the political stability in

those areas, there is no reason why a South African com-

pany should not expand into these regions. We are keenly

looking at the Caprivi Corridor as well and have advanced

plans to establish presence in Walvis Bay, Namibia. The

target areas there are Angola, Zambia and the DRC.

“Other expansion projects include providing technical

support for transport and logistics to mines in Zimbabwe

leveraging our vast expertise. We can both assist and prop

up companies in Zimbabwe, Malawi and neighbouring

states. So it is a win-win situation for everyone.”

Ngululu Bulk Carriers is striving to have 50% of its income

generated from outside South Africa’s borders by 2017.

“We are establishing a strong pan-African presence

and yes there are challenges, but I am a great believer

that where there are challenges you will also find vast

opportunities!”

Current operationsNgululu Bulk Carriers is a black-controlled company oper-

ating 262 tipper trucks, i.e, tractor and trailer combina-

tions, with a turnover of just under one billion rand.

The company has a robust truck replacement policy and

trucks are replaced at either 600 000 km or every three

years, whichever occurs first. Luvhani does not believe in

keeping trucks in the maintenance bay.

“Yes, new trucks are expensive but maintaining older

trucks is even more expensive. This strategy will not

change and because our trucks are properly maintained

we do not suffer major breakdowns, to the satisfaction

of our customers.” The fleet being operated comprises a

mixture of UD, MAN and Mercedes-Benz heavy commer-

cial vehicles. “We like to have a balance in our fleet and

have found these three OEMS to have trucks best suited

for our operations.”

The company is currently the only operation in South

Africa to have its entire fleet accredited with the Road

Traffic Management System (RTMS) – evidence that it

takes quality management seriously in its company.

All maintenance of its fleets is handled by the OEMS on-

site at its Steelpoort depot in Limpopo, which allows the

company to concentrate on its core business of transport-

ing various bulk commodities for its customers.

“I am extremely proud of where the company stands today as a black-owned company employing about 650 people with 400 drivers”

PROFILE

15TWA | Jan/Feb 2013

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COMMERCIAL VEHICLES

Iveco’s sales & marketing manager, Christophe

Longuet, says: “We are optimistic and foresee a growth

in sales, especially within the Southern African coun-

tries. Iveco recently signed a joint venture agreement

to manufacture the Eurocargo, Stralis and Trakker model

range in South Africa.We will be adapting the trucks for the

specific application required by the operators.”

MAN’s deputy CEO, Bruce Dickson, adds: “2013

will be a tough year, but the South African heavy

truck market has proved its mettle in recent reces-

sionary conditions. Direct foreign investment both in

South Africa and countries north of our borders, along

with government spending on infrastructure develop-

ment, continues to spur economic growth and a grow-

ing need for trucks. “MAN has the right products, ser-

vices and people to deliver added value

to our customers. By making enhanced

customer proximity a strategic direction

within the company, MAN has significantly

differentiated itself from other heavy-duty

truck suppliers in South Africa over the past

three years. Next year will see MAN contin-

ue this programme of enhanced customer

orientation to increase our market share.”

John Barnett, dealer operations

manager for International Trucks, is

also optimistic about the year ahead

What can fl eet operators expect from some key heavy commercial vehicle manufacturers during 2013? Simon FouldsSimon Foulds speaks to UD Trucks, Iveco, MAN and International Trucks to fi nd out.

stating: “The extra heavy commercial

vehicle sector should remain buoyant

for 2013 and increased volumes could

be expected when the government’s

proposed infrastructure project is

introduced. At International Trucks,

there are exciting plans to grow

our dealer network in Southern and

sub-Saharan Africa.”

Rory Schulz, gen-

eral manager: corporate planning

& marketing at UD Trucks Southern Africa, mentions:

“We believe the market will stabilise in the latter half of

2013, but the first six months could be tough. However,

we anticipate volumes to be similar to 2012.”

“At International Trucks, there are exciting plans to grow our dealer network in Southern and sub-Saharan Africa.” John Barnett, dealer operations manager from International Trucks

“The major focus remains on fuel consumption and it is perhaps too early to mention what will be introduced in 2014 onwards. We are, however, striving to be class leading. ” Rory Schulz, general manager: corporate planning & marketing, UD Trucks Southern Africa

The road ahead in 2013


COMMERCIAL VEHICLES COM

New productsUD Trucks Southern Africa will not be launching new mod-

els in 2013, but in early 2014 it will launch a new concept

vehicle range for Southern Africa.

At International Trucks, there are continuous product

improvements on various models to enhance the suitability

of the vehicles for operations in Southern and sub-Saharan

Africa. In 2013, MAN Truck & Bus SA will launch its MAN TGS

EfficientLine range of long-haul truck-tractors. The range

is based on the proven MAN TGS WW, which has estab-

lished a solid reputation in the long-haul market for its

fuel efficiency, excellent power-to-weight ratio and reli-

ability. The comfort and safety features, along with smart

technologies to further reduce fuel consumption, make

the TGS EfficientLine the ideal long-haul truck for

African operators.

Iveco will introduce the Daily 55S15W 4x4 in single and

crew cab to its medium range in January, with Euro 3

engine technology that is well-suited for the South African

market. The Daily 4x4 is equipped with front and rear

diff locks as standard that make it capable to take on any

road or obstacle.

In the extra-heavy commercial market, Iveco will launch

the new Stralis Hi-Way, which has just been awarded the

2013 International Truck of the year trophy. The Stralis

Hi-Way will be introduced in the second semester of 2013

and will be the company’s flagship model, equipped with

the Cursor13 Euro 3 engine capable of between 480 and

560 hp.

The cab design has been reviewed to improve the aero-

dynamics and keep a modern and appealing look. The

interior has been completely redesigned to ensure maxi-

mum driver comfort and ergonomics. The overall safety

features, like Adaptive cruise control, DAS (driver attention

support), Bi-Xenon headlights and drivetime running lights;

ESP and Hill holder will be standard. Iveco will also intro-

duce a facelift for the Eurocargo.

Carbon footprintDickson says: “The deployment

of trucks that limit carbon dioxide

emissions has become impera-

tive for fleet operators servicing

multinational supply chains.

While corporations are cur-

rently driving ‘green’ compliance

among their logistics service

providers, it is just a matter of

time before carbon

taxes become a

reality for truck fleet

operators in Africa.

“As such, lead-

ing fleet opera-

tors now consider

‘reduced carbon

footprint’ as a key

criterion when purchasing a new truck. The

route to achieving this is to supply extremely

fuel efficient vehicles. Diesel and carbon diox-

ide have a directly proportional relationship

– the less diesel burned by the truck, the lower

its carbon footprint.”

Schulz concurs: “Carbon footprint is often confused with

emission standards; in reality it relates directly to fuel con-

sumption. For every litre of diesel used, 2 664 kg of carbon

is produced. Thus the key remains in lowering fuel consump-

tion and looking towards alternative technology or hybrids

to improve the situation. The major focus remains on fuel

consumption and it is perhaps too early to mention what will

be introduced in 2014 onwards. We are, however, striving to

be class leading.”

Longuet concludes: “It is very important for our country to

have a greener carbon footprint. We are testing several Euro5

emission trucks with different fleet operators with positive

results. We find, however, that only a selected few fleet opera-

tors have a greener carbon footprint as a requirement when

purchasing trucks. This is mainly because of the condition of

our current fuel in the country. We are all moving in the right

direction and by 2014 I am optimistic more fleet operators

will start changing their fleets in order to ensure they have an

improved carbon footprint.”

“We are optimistic and foresee a growth in sales, especially within the Southern African countries.”Christophe Longuet, Iveco’s sales & marketing manager


COMMERCIAL VEHICLES

MAN Truck & Bus is not only happy with how 2012 fared, but is also optimistic about the future. At the end of 2012 it was announced that Bruce Dickenson and Ray Karshagen had been appointed as joint CEOs. By Simon FouldsBy Simon Foulds

THE CHAIRMAN, MARCUS GEYER, says he is

going to step back and hand over the day-to-day

responsibilities to Dickenson and Karshagen as

the company aligns its sales with its Middle East

operations. Following the announcement, Dickenson says it

is a great honour and privilege to be appointed joint CEO

with his esteemed colleague, who is known as ‘Mr Bus’ in

the South African market place.

“Though we are happy with how 2012 fared, it was never-

theless a tough year. But being a positive individual I saw

opportunities and we continued our strategy of breaking

into new fleets.”

New markets“Over the past 18 months, we have been on a drive to

break into new markets where competitor fleets were

FUTURE OUTLOOK

Optimistic about 2013

for both truck & bus


COMMERCIAL VEHICLES

being operated and we are pleased that our strategy is

paying dividends. As a result, we have built a really strong

foundation from which to capitalise on as we continue

our growth.”

During this time, MAN made inroads into SAB and SAPPI,

where it dominated the market in the wood sector and deliv-

ered 74 vehicles to Unitrans across its various divisions.

Other companies using MAN trucks include Afrox, PEG

Logistics and Fairlands Dairy.

“We are very excited about 2013 and I believe it is going to

be another good year for the company. Though we predict

that the overall market will be flat, we still believe we will

have a good year. This is because we have the product and

our next step is to continuously improve on our service level

to continue satisfying our customers.”

Up Time PrincipleOne concept that MAN has been implementing is its Up

Time Principle, which is similar to that at a passenger car

dealership where after the vehicle is serviced the owners

receive their invoice.

“It has not always been this easy in the trucking sector, but

since we implemented this system we have made tremen-

dous progress that when a truck leaves our workshops it

takes the invoice for the work done as opposed to receiving

it at a later stage.”

The company has also aligned itself with Ipsos. “What is

very exciting about this whole concept is that we are not

only measuring the standards of the KPI for customer satis-

faction, but we are also on our brand and company values

along with our customer promises programme.”

TelematicsIn February 2013 the company will be launching its first

phase of fleet telematics specific to the MAN brand.

“We made a concerted effort of not delivering a generic

concept and spent considerable time with key customers to

understand their needs. We envisage the full implementa-

tion of this system in the third quarter of this year. It is a very

exciting project for the company.”

Trucks To GoAnother new concept being introduced by MAN Truck &

Bus is its ‘MAN Trucks To Go’, which, states Dickenson, is

a very exciting project for the company. It is based around

the company’s heavy commercial vehicle category where

trucks with predesigned bodies are placed on the floor.

Typically, the salesperson would secure an order for a

chassis and then the customer would buy the particular

body he required and would then approach the body

manufacturers and order accordingly or place an order for

the body with MAN Truck & Bus, which would then send the

chassis across to the body builder.

“We have now taken the initiative

where we have placed a number of

bodies on our trucks, which when sold

can simply be driven off the floor and

start operations immediately. We have

a stock holding of 50 such trucks and

we basically sell them off the shelf. In

our particular market, this is crucial

especially when a client requires a

truck right away and does not have the

time to wait for a body to be designed.

It is a very exciting project for us and

we believe it will pay dividends for

the company.”

ExportsGeyer, adds that the company is also

going to be focusing on its export busi-

ness into East Africa. “We have a com-

petent partner in Kenya catering for

this sector and we have built a plant in

the country capable of assembling the

knock down units imported into the region. We sent employ-

ees to the region to assist our Kenyan partner to establish

and grow the business in East Africa. At the same time, the

company has also expanded its network in Mozambique,

Zimbabwe, Zambia and Botswana.”

“We are heading in the right direction as we have the right

elements in place ensuring we grow MAN’s presence not

only in South Africa but into our neighbouring countries and

up through East Africa,” he concludes.

“Another new concept being introduced by MAN Truck & Bus is its ‘MAN Trucks To Go’, which, states Dickenson, is a very exciting project for the company”

Bruce Dickson, MAN’s deputy CEO

● Truck sales in 2012 were 1 900 units compared to 1 912 in 2011

● Bus sales in 2012 were 500 units compared to 459 in 2011

● Used vehicle sales were 600 in 2012 compared to 551 in 2011

● Parts sales also increased in 2012, where 760 570 parts were sold com-pared to 703 289 in 2011.

MAN Truck & Bus 2012 figures


TRAILERS

Most cargo is transported by road throughout Africa. Having a state-of-the-art truck is rather meaningless if the trailer being towed with the load is not as effi cient or aero-dynamic as the horse. Simon Foulds Simon Foulds speaks to key players in the industry.

THE TRAILER IS an important piece of equip-

ment and is probably underestimated by the

general public. Fleet operators on the other hand

know the importance of having the correct trailer

behind the horse ensuring the load being delivered reaches

the destination undamaged and on time.

Paulo Ribeiro, financial manager at Paramount Trailers,

offers advice for operators transporting freight through

Africa. “As with most things, the importance lies in the plan-

ning process and understanding what tools will be most

appropriate for the conditions. We have to know where the

trailer will be operating so as to ensure that the product

manufactured will be able to handle the conditions. A

trailer that will be used in Africa is built differently to a trail-

er solely oper-

ating in South

Africa. Trailers

into Africa are

usually more

robust with addi-

tional strength-

ening being

incorporated into the trailer chassis. Furthermore, the

majority of trailers operating in Africa have a diesel tank

so that they can carry additional diesel for longer trips.

Another noticeable difference is that ABS brakes are not

a requirement for trailers operating in Africa but are are a

requirement in South Africa. Constant maintenance and

repairs of the trailers will go a long way in ensuring the

lifespan of the trailer is extended.”

Rynhardt Steenkamp, marketing manager at Afrit Trailers,

also says that the key to ensuring the efficiency of your

trailer is driver education. “This is critical because once a

product is operated and maintained correctly, maximum

utilisation should almost be guaranteed. We have found that

there is a perception in the industry that only trucks need

to be serviced and not trailers. This is not the case, and in

order to obtain the desired efficiency both truck and trailer

need to be serviced at the same intervals.”

In ensuring trailers continuously evolve so as to remain

efficient to operate, manufacturers are regularly modifying

their products to incorporate the latest trends so fleet own-

ers can continue enjoying the benefits of an efficient trailer.

Some of the trends being incorporated into the design of

OPERATIONS

Delivering optimum performance


“As with most things, the importance lies in the planning process and understanding what tools will be most appropriate for the conditions”


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TRAILERS

the trailers range from disc braked axles and electronic

suspensions to roll stability, customised bodies for fuel effi-

ciency, lighter trailers, improved safety features and greater

flexibility, enabling different types of loads to be transported.

The bottom line, according to the trailer manufacturers, is

that clients want a trailer that burns less fuel but carries

greater loads.

“One of the trends we currently find in the market is

that our customers are looking for customised products,”

states Steenkamp. “Fuel efficiency is also important and

customers believe that the more the fuel efficiency the bet-

ter the trailers are for the environment due to less carbon

dioxide emissions.”

WABCO Automotive’s Enoch Silcock expands: “Disc-

braked axles and EBS braked systems with electronic

suspensions and roll stability are some of the latest trends

we are introducing to our trailers. Especially requested on

the upper market are higher value trailers for fuel tankers

and refrigeration units. The reason for this is because safety

is seen as a high priority and the operators tend to value

the long-term safety and operational efficiencies that come

from using the latest in brake technology.”

Ribeiro states: “Because transporting freight into Africa is

both time consuming and expensive, our clients are looking

for ways to arrange loads for both the away and return trips.

Therefore, trailer designs are being looked at to create flex-

ibility around a trailer so it is able to transport more than one

type of product or goods for both journeys, making it more

profitable for operators.”

Travis Piek, technical manager at Serco, says because

of the competitiveness of the transport industry, operators

are pushing the manufacturers for lighter, more fuel efficient

– aerodynamic

– solutions.

“This has a

twofold effect on

the transporter,

because they

want to be able

to carry a bigger

load yet be able

to burn less fuel

thereby increasing their overall profit margin. This is the

challenge for trailer manufacturers.”

“Because transporting freight into Africa is both time consuming and expensive, our clients are looking for ways to arrange loads for both the away and return trips”


Scania continually delivers outstanding Scania continually delivers outstanding

service to its customers. MD Steve Wager service to its customers. MD Steve Wager

speaks to speaks to Simon Foulds.Simon Foulds.

COMMERCIAL VEHICLES

Ensuring efficient reliable transport solutions

STREAMLINING OPERATIONS

DURING THE SECOND QUARTER of 2012,

Steve Wager took over the helm of Scania South

Africa as MD and during his first seven months

at the company, he began introducing a new

method of managing and operating the business in a more

streamlined manner. He also spent time visiting

customers as well as understanding Scania’s

strengths within the South African market.

Structural change“From the beginning of January, one of the

positive changes being implemented within

the company is a structural change where

we have reorganised our retail operations

into five distinct regions and appointed

a regional director to manage and steer

each region. Their task will be to bring

the operations together in each region

and work in a more cross functional way

so that all the areas of business come

together effectively.

“This will create even greater team work

ensuring the five regions – Gauteng,

Western and Northern Cape, Free State,

KwaZulu-Natal and Eastern Cape – will

service our clients even more efficiently.

The intention is to get our peo-

ple to work more closely togeth-

er in finding customer solutions,

giving quicker response times

to customers as well as shorten the decision-

making process. We are creating more responsi-

bility within the regions in order to serve the customers

more efficiently.”

The solely owned operations in Namibia, Botswana and

Tanzania remain unchanged along with the independent

dealers in Malawi, Zimbabwe and Zambia.

The R460 gives drivers the optimum range of cabs for long distance haulage and other transport duties with few stops. Spacious, comfortable and powerful, these top-of-the-line trucks are meant to take on the most demanding jobs and the most challenging routes

customers as well as understanding Scania’s

strengths within the South African market.

Structural change“From the beginning of January, one of the

positive changes being implemented within

the company is a structural change where

we have reorganised our retail operations

into five distinct regions and appointed

a regional director to manage and steer

each region. Their task will be to bring

the operations together in each region

and work in a more cross functional way

so that all the areas of business come

together effectively.

“This will create even greater team work

ensuring the five regions – Gauteng,

Western and Northern Cape, Free State,

KwaZulu-Natal and Eastern Cape – will

service our clients even more efficiently.

The intention is to get our peo-

ple to work more closely togeth-

er in finding customer solutions,

giving quicker response times

to customers as well as shorten the decision-

making process. We are creating more responsi-

bility within the regions in order to serve the customers

more efficiently ”The R460 gives drivers the optimum range of cabs for


COMMERCIAL VEHICLES

MatrixThe new operational restructure is based on a similar matrix

structure operating throughout Scania globally and, accord-

ing to Wager, it is a proven method and brings the South

African operations in line with operations around the world.

“The regional directors report directly to me but still retain

their functional roles, so they wear two hats within the matrix

structure. This will bring us not only closer to our custom-

ers in understanding how their businesses are operated,

but also in understanding our customer’s customer as well.

This is very important because if we can understand their

needs and demands better it will shorten the decision-

making process, therefore making us both more efficient and

customer focused.”

MiningIn addition to this, during the first quarter of 2013 Scania is

opening its mining and off-road department. This depart-

ment will also operate in a cross-functional manner so

that the company will have experts who understand the

mining industry and, apart from selling vehicles into this

sector, will also be responsible for selling a whole solution

to a customer.

Scania is introducing an 8x4 heavy-duty tipper onto the

South African market. According to Scania, the vehicle will

compete extremely favourable on the market. “This particular

model is faster than our competitors’ and, though its payload

might be bit less, it is far more economical,” adds Wager.The

move into the mining sector in South Africa started earlier in

2012 and is part of a global strategy to tap into this market.

“The mining sector is not a new avenue for us as we have

been servicing vehicles that operate in that industry, but what

is new for us is selling Scania trucks designed and targeted

at the mining industry for specific use on a mine.

“It is a new opportunity for us as we define a niche product

offering we know is suited to the mining landscape and we

believe it is a winning concept as each vehicle will be modi-

fied to the customer’s specifications.”

Scania rentalFollowing a successful pilot project, the company is launch-

ing the Scania Truck Rental division. “It basically gives opera-

tors the chance to rent a vehicle from 24 hours to a year on

a short-term hire basis. Not only does it offer operators great

flexibility, it also caters for them during peak periods as

well as when they have either had a vehicle written off in an

accident or are waiting for new vehicles to roll off the produc-

tion line. This is a concept that has worked very success-

fully in Europe, particularly in the UK. It is a concept close

to my heart because when I

was based in the UK I was

responsible for Scania’s truck

rental operations. At the time,

I was responsible for 1 400

vehicles in the fleet covering

the UK market.

“Following our pilot project,

the sector is growing rapidly

and at the moment demand

is outstripping our supply. It

has really taken off among our

clients because all they have to do when collecting a vehicle

is put fuel in the tank and their own driver behind the wheel.

Everything else is catered for by Scania, including insurance,

vehicle tax, road fund licence and maintenance.”

Scania appointed a manager to grow this division on 1

November 2012 and the company is satisfied with how the

concept has been accepted among its operators. At this

stage, it is only operating in Gauteng, but will expand the

division across the rest of the country in due course. “The

greatest risk in truck rental is what they call the utilisation

risk – when there is a downturn in the economy no one

hires trucks.”

Scania used sector“We have also established a used truck operation and these

two activities will work closely together. I am also a big fan of

used trucks as this aspect was also a very successful opera-

tion in the UK when I was based there. It is a product offer-

ing we can give to our customers whether it is for a start-up

operation or for operators who want to supplement their fleet.

“Operators can lower capital costs by purchasing a used

truck through an OEM, We should be developing this sector

more over the next 12 months.”

New product offeringsApart from the heavy-duty mining tipper, Scania has also

introduced two new vehicles aimed at

the fleet operator: the G460 and the

P410. “The G460 has been well received

in the market and has been introduced

in a number of fleets with pleasing

results. The P410 is being launched into

the South African marketplace as from

January 2013.” Both vehicles share the

same driveline, gearbox and cruise system, but the G460 is

a higher specified vehicle and has a bigger cab compared

to the P410.

The road ahead“Scania is well-positioned within the marketplace and it is our

intention to carry on growing steadily as we keep on improv-

ing our products and services. I am optimistic about the road

ahead and Scania’s future growth not only in South Africa but

also through sub-Saharan Africa.”

Simosakhe Ngema, Scania production system co-ordinator for RPC MDZ

“The G460 has been well received onto the market place and has been introduced in a number of fl eets with pleasing results. The P410 is being launched into the South African market place as from January 2013”


LIGHT COMMERCIAL

What does 2013 have in store for the light commercial sector? Simon Foulds Simon Foulds speaks to the manufacturers about the year ahead in the sector, about new vehicles and models, and how important is it for operators to consider a vehicle’s carbon dioxide emissions when making the purchase decision.

AT TIME OF GOING TO PRESS, the total sales

of light commercial vehicle between January and

November 2012 was 145 040 (an increase of

8 565 vehicles for the same period in 2011).

2013 forecastMlungisi Nonkonyana, Isuzu brand manager, says: “The motor

industry has shown good growth in 2012 and remains on target

to achieve 10% growth for the year. Due to ongoing economic

pressure, the forecast for 2013 remains flat at 2012 levels.”

Toyota media spokesperson Clynton Yon adds: “Competition

will intensify but we are confident that Toyota can hold its own

with the light commercial segment. Of course the vagar-

ies of the current economic climate have to be taken into

account; however, corporate business will remain buoyant as

fleets need to be replenished.”

GWM chairman, Tony Pinfold,

states: “Like everyone in the

industry, we are cautiously

optimistic – the current eco-

nomic situation, labour unrest,

etc., is of concern. These

uncertainties influence buying

decisions and we are watch-

ing this carefully.”

EfficiencyIsuzu has developed and released low rolling resistance

tyres as standard and optional fitment to specific models.

The company has also created a reduction of internal friction

in engines, transmission and axles by using low viscosity

synthetic oils. Changes to the turbo, charge air cooler, intake

system and EGR system on diesel models have resulted in

improved fuel economy.

Toyota has no immediate changes to the line-up in 2013,

although more efficient engine technology will filter down

to commercial vehicles as such engines become available.

Evidence of this can be seen in the new 2.5 Variable Nozzle

Turbo diesel engine (from the Fortuner) now doing service in

the latest Hilux Raider Double Cab variants.”

Regarding the Mitsubishi Colt range, even the entry level

single cab comes standard with ABS/EBD and dual airbags

for driver and passenger safety.

New vehiclesIsuzu is launching its sixth generation pickup during the first

quarter, which will be locally manufactured.

Toyota is not launching any new models, but is continuing

with its current range, though there will be running changes

and some specification upgrades that will be made known

closer to the release-to-dealer dates. GWM plans to fur-

ther expand its range with a base diesel single cab and

double cab.

Carbon footprintNonkonyana of Isuzu says: “Carbon footprint and fuel

economy will remain an important consideration for all fleet

operators and is definitely a key factor for them when making

the purchase decision.”

Toyota’s Yon adds: “Economy will always be a key factor but

it goes beyond fuel consumption. Overall cost of ownership

MOVING LIGHT LOADS

SA manufacturers remain buoyant

“The vagaries of the current economic climate have to be taken into account; however, corporate business will remain buoyant as fl eets need to be replenished”

LIGHT COMMERCIAL

and resale values also plays a part and has contributed to

Toyota’s supremacy on the sales front.”

GWM’s Pinfold adds:“We are very conscious of this but

the main problem is the quality of fuels available in South

Africa; we don’t have the best quality fuel to facilitate low

emission levels.”

Inner- and intercity deliveriesAccording to Nonkonyana, Isuzu offers a balance of econo-

my and reliability and is famous for its legendary ride com-

fort together with rugged toughness and superior off-road

ability combined with exceptional quality standards and

great heritage.

Mitsubishi believes its range of fuel efficient pickups has

proven reliability and is comfortable, safe and offers a high

ride height.

For GWM, it is the good value proposition that the com-

pany will continue to offer. It believes its load capacity is

an advantage over competitors, as is the cabin space, and

the smaller engine makes its vehicles far more fuel efficient.

The push on larger engines is not a value proposition for

the company.

Why operate your rangeAccording to Nonkonyana: “Isuzu is the best all-round com-

mercial vehicles offering a balance of economy and reliability

supported by a wide dealer network footprint in South Africa

and sub-Saharan Africa. According to the 2011 Competitive

Customer Enthusiasm results (IPSOS, formerly Synovate),

Isuzu is the top light commercial vehicle brand in South Africa.

Toyota’s Yon states that it is because of its legendary reli-

ability, largest dealership network in Southern Africa, parts

availability and affordabili-

ty (best in the latest Kinsey

Report) as well as the

best performer in the lat-

est Ipsos report (formerly

Synovate) that make Toyota the brand of choice.

Mitsubishi national marketing manager, Braam Faul, adds:

“The Mitsubishi Colt out sold Hilux in the early 2000s. Now

that we have included a single cab in the pickup line, cus-

tomers can buy their full range of light commercial vehicles

from us again.”

GWM’s Pinfold concludes: “We can offer good value for

money plus an excellent dealer footprint of 78 dealerships

throughout the country, which, with our parts supply, is

equivalent to the best in the industry.”

“Economy will always be a key factor but it goes beyond fuel consumption”

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THENEWS YOU

NEED TO KNOW


LOGISTICS

“Every company that has a warehouse problem also has a transport problem,” David Lubinsky, MD for OPSI Systems, tells Simon FouldsSimon Foulds.

HOW DO OPERATORS get

the best value out of their fleet?

According to Lubinsky, it is all

about having the correct systems

in place to aid a company’s processes, ensur-

ing a company gets the best utilisation out of

a vehicle.

Though there are a number of different levers

of transport optimisation available to the industry, Lubinsky

highlights eight he believes should be considered by both

warehouse managers and fleet operators.

Optimising within a routeHere operators have to determine the best route for deliveries

to take so they can get an optimal performance from both the

driver and truck, thereby improving efficiency. “It could be a

simple matter of rescheduling the route and taking out as

many right turns as possible along the route,” he says.

Lubinsky adds: “But

it is more complex than

that, however; by plan-

ning the best possible

route and optimising

the sequence of deliveries, taking stop starts and traffic

congestion times into account, fleet operators can save up

to 10% on fuel, tyre and maintenance bills.”

Multi-vehicle optimisation – routing and schedulingUsing this lever, operators take the orders and the trucks

at their disposal and then decide which orders go out on

which trucks and the specific route these orders take. “This

has clear benefits for operators who implement the system

properly. Firstly, operators have to ensure all product, rout-

ing and vehicle information is captured correctly through the

transport management software, including the capacity each

vehicle can carry.

“Key to this system operating efficiently is having the cor-

rect stock being transported at each point along the map

routes, so the relative loading bay information is also impor-

tant when implementing the system.

“It can be hard to set up but once operational the big ben-

efit is companies know up front what products are going on

a respective route and this system also improves warehouse

efficiencies at the same time.”

Correct fleet selection“Having the right fleet immediately gives operators a huge

cost saving. Fleet operators need to look at the products

being delivered and ascertain through the company’s route

scheduling tools the cost of each type of vehicle operating

along the routes. In essence, you create a ghost fleet and

through your operating calculations determine the best type

of vehicles for the job. This information then assists the

SUPPLY CHAIN FORESIGHT

Optimising transport routing and scheduling

“Having the right fl eet immediately gives operators a huge cost saving”


LOGISTICS

loading bay slot is allocated and ready to receive the vehicle.

“For this system to operate efficiently it is critical that the sys-

tem allocating the slots and the process your hauliers use to

manage trucks respect the allocations.

“We did a study for a large FMCG company where the slots

for the loading bays created a big bottleneck in the whole

process. This proves how important it is to view loading

bays at warehouses as an important process and resource

that needs to have an operational plan similar to that imple-

mented for operating the trucks.”

Sharing fleets between depotsThis is ideal for a company with numer-

ous factories or depots that share its

fleet as opposed to individual fleets at

each operation within the company. “By

combining a fleet, a company saves in terms of operating

costs; it can be difficult to implement from scratch but if a

company gets it right it pays tremendous dividends.”

Optimising back hauls and inbound logisticsA problem for some companies is that after making a delivery

the trucks have empty loads when they return, which inevita-

bly costs the company money. But, according to David, fleet

operators can negotiate with their clients and customers to

improve their inbound logistics by using their empty legs for

their client’s outbound logistics.

“For some of our clients we have managed to negotiate

better rates for them for their raw materials by getting them to

transport the raw product to their premises on the return trip

after delivering finished products to customers. This way you

cut on operating costs and optimise the use of your vehicles

at the same time. You do, however, need to have a good

system list in operation because you are now monitoring

your fleet for both outbound and inbound deliveries. Initially,

there might be a disruption in the overall process, but once

the kinks to your system have been ironed out the company

will definitely benefit in the long term.”

Work the system“There are a lot of levers that companies can implement, but

these are eight that I have come up with and each one of

these is a way of pushing down on your distribution costs.

Each one of these levers introduced by companies would

have a definite percentage cost saving on your fleet optimi-

sation. And some of these would be applicable and others

not. Key here is considering what a company can do to

minimise costs, especially with the price of fuel continuously

rising. What are you doing to minimise your total distribu-

tion costs?

operator in choosing the best vehicle for the fleet. “It is advis-

able to run the same exercise through the chosen vehicles to

ensure operating calculations before making that big invest-

ment, which if done incorrectly will increase operating costs

and affect the overall bottom line.”

Activity smoothing over the periodWhen making deliveries to numerous customers on a weekly

basis, how do operators balance and ensure the deliveries

are done while optimising fleet operations in such a way that

it does not upset clients?

“It is difficult to find the right patterns, but not impossible,

especially when considering an operator might have an

uneven workload. So it is important to balance the volume

delivered and the number of stops.

“What needs to be done is to capture the profile of each

delivery and then allocate the correct amount of goods

needed to be delivered to the client ensuring they always

have stock on hand – especially within the FMCG market.

Through this method and by reducing vehicle peak travel

time by at least 20%, operators can achieve a huge saving on

their overall operating costs. The more operators can push

down their peak time travel, the better it is for their overall

operating costs and ultimately the company’s bottom line.”

Master route optimisationAn operator with multiple vehicles can predetermine routes

because it usually has vehicles visiting the same customers

frequently as is the case with many FMCG deliveries. In other

words, determine which customers are on a specific route

and keep following the same route all the time, therefore

optimising the regular routes in terms of efficient deliveries.

“Through this lever we were able to save the five million kilo-

metres travel time for one of our FMCG clients in one year.”

Minimising depot queuesThis particular lever entails ensuring scheduling loading bays

efficiently so when the scheduled trucks arrive the relevant

“The more operators can push down their peak time travel the better it is for overall operating costs”


LOGISTICS

The importance of knowing exactly where your trucks and trailers are is more imperative nowadays than ithas ever been in the past, not only in South Africa but also as the fl eetleaves the country’s borders.

VEHICLE TRACKING

“Operating a multimillion rand fl eet as well as transporting goods worth millions is made all the more easy due to the latest tracking solutions”

Tracking into the future

operators need much more than just basic systems and are

focusing their efforts on a total solution now.”

Adds Pieter Coetzee, MD at Selftrack: “For our clients,

GPS live tracking combined with driver behaviour data is a

critical element.”

AdvantagesOperating a multimillion rand fleet as well as transporting

goods worth millions is made all the more easy due to the

latest tracking solutions, but what makes one solution better

than the next?

Kartun says: “I believe we have the best products on the

market place and this is backed up with our unmatched

service and installation capabilities as we literally deliver to

our clients what we say we can deliver: service – anywhere,

anytime and anyplace.”

Coetzee adds that their clients enjoy an increase in produc-

tivity, efficiency and client service, along with a decrease in

vehicle abuse, fuel use and maintenance costs.

“With effective fleet management technology installed,

transport operators are able to have direct control over

aspects like driver behaviour as well as vehicle movement

and utilisation,” states Pretorius.

“Having direct control over aspects like driver behaviour as

well as vehicle movement and utilisation means operators

can look forward to significant reductions in fuel and mainte-

nance costs, while also lowering their accident rates.”

In addition to saving an average of 10% on fuel costs, MiX

Telematics’ fleet customers report significant improvements

in vehicle utilisation and driver behaviour. For example: “A

long-term trial with Sylter Verkehrsgesellschaft (SVG) from

Germany revealed a net saving of €2 200 (R25 293) per

year per vehicle, while another customer of ours, RATP

London United, achieved a 17% reduction in its accident

rate and a 10% improvement in fuel efficiency following the

implementation of a customised risk reduction programme,”

expands Pretorius.

THERE ARE NUMEROUS tracking solutions avail-

able for fleet owners and Transport World Africa

speaks to Mix Telematics; Intelligent Transportation

Systems South Africa and Self Track to find out

how operators can track the movements of their valuable

cargo 24 hours a day.

Trends“With rising fuel prices,

the ongoing need to lower

carbon emissions and

driver safety, all being of

high importance, time is

of the essence for trans-

port operators to make

use of the fleet management technology available to them

today,” says Gert Pretorius, MD of MiX Telematics (Africa

– Fleet Solutions).

Eddie Kartun, director at Intelligent Transportation Systems

South Africa, states: “Many transporters are moving away

from the standard vehicle tracking products and moving

ahead with a more holistic and consolidated approach to

managing their fleets and drivers. Transporters and fleet

29TWA | Jan/Feb 2013 292929292292TWWWAWAWAWAAAW ||||| JJaJanJaan/Fe/Febb 2020202020202020202020013131313131313131311133

LOGISTICS

“Being at the coal face and

having dealt with numerous

unusual requests over the

years allows us to under-

stand our clients’ requests

and needs, and therefore

we can custom fit the right

technological solution for our broad range of clientele.”

Pretorius voncludes: “MiX Telematics embraces a consulta-

tive approach, working closely with partners and customers

to ensure the implementation of solutions that are world-

class and locally relevant.”

The company’s products and services are tried

and tested, strengthened by a heritage that dates

back to 1996.

MonitoringPretorius says trailer tracking has the potential to become

one of the fastest growing sectors in the local telematics mar-

ket, with South African fleet managers anxious for solutions

that will allow them to both manage and track their trailers as

well as their associated high-value or high-risk loads.

“For the first time, fleet managers can have full control of

their trailers’ locations and activities, whether they’re station-

ary or on the move. By knowing the location of one’s trailers

at all times, fleet utilisation – and hence efficiency – can be

improved dramatically and instances of lost trailers reduced

irrespective of whether they are coupled with or detached

from the horse or truck tractor.

“Until now, fleet managers have had to rely on information

derived from their truck tractors to manage their trailers. “This

has made the separation between a truck tractor and its

trailer both unsafe and inconvenient – especially when high-

risk or high-value loads are involved.”

According to Coetzee: “Provided the SIM card used in the

systems can access the local GPRS cellular network of the

country where the truck is driving through, then the vehicle

can be monitored by Selftrack throughout Africa.”

Intelligent Transportation Systems South Africa

is largely dependent on communications

coverage within the borders of South

Africa but also has products that can

go cross border and monitor assets on

the continent.

The best operating solution “The advantage of our products is that it is self-managed,

affordable and easy to use,” explains Coetzee

According to Kartun: “The company has over 30 years’

experience in this very intricate and demanding market. We

also select the best solutions for our client’s unique needs

and deliver a great service.

“Until now, fl eet managers had to rely on information derived from their truck tractors to manage their trailers”



MARITIME

The maritime sector in Africa has great potential, yet there are many obstacles standing in the way of future growth and investment opportunities, which need to be managed and overcome.

BUKKIE ADEWUYI, senior manager of the Risk

Advisory division at Deloitte, outlines what should

be done to ensure the continent becomes a

strong economic force.

PiracyAfrican leaders may have the political will to fight piracy,

but this needs to be clearly demonstrated and entrenched

through intensified continental collaboration. African coun-

tries should formalise and implement a continental maritime

strategy for combating piracy, illegal sea trafficking and other

ills currently facing the coastal areas. To achieve this, there

needs to be maximum cooperation between African leaders.

The African Union (AU) can play a major role in the current

piracy battle collaborating

with the European Union

and the United Nations,

both of which have been

involved in fighting piracy.

Though the AU is cur-

rently driving the agenda

to have an Integrated Maritime Strategy for the continent, an

initiative that is long overdue, it has set a target of 2050 as

the deadline for ensuring that African coasts are secured. The

question is, what happens in the interim? Without a common

vision and will by African leaders to see and drive this as a

collective battle, the efforts and resolutions of the AU may

continue to be undermined.

Port operationsWith 90% of goods arriving via sea, there are a number of

issues that need to be resolved including port efficiency,

dwell time, handing costs, control procedures and manage-

ment of container traffic. The ports have become congested,

which sees cargo clearance taking longer than it should

and customs processing taking twice as long as it does on

other continents. African ports need to be expanded, with

additional terminals to handle the increasing maritime traffic

and accommodate the increased size and volume of the new

generation container vessels.

Another possible solution is the construction of additional

ports. Adding more shipping routes to the coastal areas

would also help in relieving current port capacity constraints.

Technology is the biggest factor that can assist ports

throughout Africa become more efficient. The increasing use

of technology by port authorities in Kenya and Ghana is pay-

ing dividend through more efficient flow of cargo.

However, a lot more still needs to be done across the conti-

nent to ensure technology is rolled out and utilised effectively

to reduce processing times.

Infrastructure and intra-regional tradeThe logistical infrastructure is lagging behind, with roads,

airports and railway systems in need of upgrades and refur-

bishments. According to the World Bank, Africa requires

US$93 billion (R823 billion) per year over a period of 10

years to close the infrastructure gap and it currently only has

access to US$43 billion per year. The length of time it will take

to improve infrastructure in Africa depends on the will and

efforts demonstrated by African leaders.

The world is ready to invest in Africa and assist the con-

tinent to overcome this problem, but leaders need to create

an enabling business and regulatory environment that will

assure investors that their businesses can be conducted in a

transparent, honest and efficient manner.

Africa needs to form sustainable partnerships with

foreign investors and create a framework that ensures

it can either bring back African skills or develop new

ones to ensure that in the long run, Africans can also

do things for themselves. The continent cannot continue to

rely on Western and Eastern powers for skills and develop-

ment in the long term.

IMPROVING LOGISTICS

“The continent cannot continue to rely on Western and Eastern powers for skills and development in the long term”

Unlocking thegreat potential

in Africa By Glen Tancott

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The Durban-Free State-Gauteng Corridor has been highlighted by government as one of its fi ve massive infrastructural projects planned to boost the economy. Not surprising, considering it is one of the busiest routes in the country and ferries approximately 30 million tonnes of road freight per annum.

DURING HIS BUDGET SPEECH at the begin-

ning of 2012, the then minister of transport

Sibusiso Ndebele said the revitalisation of this

transport corridor forms part of government’s

2050 vision and is the backbone of South Africa’s freight

transportation network, vital in facilitating economic growth

for the country and the Southern African region. Its major

objective, according to Ndebele, is to deal with infra-

structure and operational planning, an investment as

well as demand forecasting over a 50-year horizon.

Research by the government into the total feasibility

of the revitalisation of the Durban-Free State-Gauteng

Corridor estimates the Port Developmental precinct to

cost R100 billion, with an estimated half a trillion rand

projected for the entire corridor.

The project developmental components are the Port

of Durban, the Durban-Gauteng road corridor, the

Durban-Gauteng rail corridor (including high-speed

rail), logistics hubs and terminals within the corridor,

as well as supportive local area land-use plans. It

is envisioned that once these elements are in place and

operational, it will reduce the cost of doing business,

ensuring the country’s economy remains competitive in

global markets.

It is estimated that freight carried by roads will grow by

between 200 and 250% over the next 20 years.

Transnet is of the opinion that too much freight travels

by road instead of rail and that this needs to be reversed.

Hence, the parastatal is earmarking R200 billion (two thirds

of its capex budget) on ensuring the rail corridor between

Durban and Johannesburg is able to accommodate the

movement of freight by rail while able to accommodate

additional cargo to both the Johannesburg dry port and

City Deep areas.

Mboniso Sigonyela, spokesperson for Transnet, says:

“This corridor is the busiest freight corridor in the country

and the focus of the programme is on improving efficiency

and effectiveness of freight operations along the corridor,

ensuring that capacity is provided ahead of demand. It is

our intention to achieve these objectives in a manner that

DURBAN-FREE STATE-GAUTENG CORRIDOR

Improving logisticsbetween

Freight carried by roads will grow by between 200 and 250% over the next 20 years

REGIONAL FOCUS CORRIDOR


the Durban port is going to face over the next 20 years. It

is thus vital for Durban that the port and the logistics link to

Gauteng are as efficient as possible.”

The N4 has opened the Johannesburg to Maputo road

link and it is envisaged the rail upgrades along this route

will follow. The Trans-Kalahari rail link through Botswana to

Walvis Bay is back on the agenda and could remove the

need for Europe- and US-bound

shipping to round the Cape.

A lot of commodities are

currently brought down to

Durban from Zambia and the

Democratic Republic of the

Congo by road, and the port

developments in Tanzania

and Northern Mozambique

will offer cost-effective alter-

natives over time.

Pottas adds: “The shift from road to rail will reduce

the cost of doing business and carbon emissions, and

provide significant productivity and operational efficiency

improvements. Also, the Trade Port is set to be Southern

optimises socio-economic development along the corridor.”

Corridor revitalisation Other aspects of the proposed revitalisation programme

include creating a dry port at Cato Ridge where container

and bulk cargo can be railed from the port to reduce road

traffic congestion in both the port and CBD. Work has been

done at the port to open an additional road exit, but the

long-term solution is establishing this dry port, which would

be situated on the outskirts of the metro and is adjacent to

the N3 and Cato Ridge shunting yards for trans-shipment.

There is also the plan for the new Durban dug-out port on

the old airport site and a planned freight hub at Harrismith.

The port is also investing in additional container handling

equipment to improve the efficiency of the container ter-

minal and is converting old bulk berths that are no longer

efficiently utilised to handle additional container traffic. This

follows in the wake of the harbour having been widened so

larger vessels can dock with ease.

Sigonyela states: “There are a number of levers that we

have. Firstly, infrastructure development will create addition-

al capacity, which will reduce congestion and thus improve

reliability. Secondly, we are devel-

oping performance metrics for

the corridor, which will tell us how

the corridor is performing over-

all. Thirdly, we are building struc-

tures and forums for the various

infrastructure providers, regulatory

agencies and policy departments,

and other sector stakeholders to

collaborate and ensure an inte-

grated approach to developments

on the corridor.”

André Pottas, corporate finance

advisory leader at Deloitte in

Durban, says: “It is no surprise

that the government is starting to

place an emphasis on the revitali-

sation of this transport corridor. It

is long overdue and it is a long-

term project that is going to take

years to complete. The timing is

crucial especially if you look at the

potential threat or competition that

Durban and Gauteng


“It is no surprise that the government is starting to place emphasis on the revitalisation of this transport corridor” André Pottas, corporate fi nance advisory leader,

Deloitte, Durban,



Africa’s premier logistics platform,

given that the Port of Durban pro-

vides connectivity to 53 interna-

tional destinations and access to

local distribution networks.

This project is intended to con-

nect the major economic centres of Gauteng and Durban/

Pinetown and, at the same time, connect these centres with

improved export capacity through our sea ports.”

Harrismith hubAccording to the Free State MEC for Economic Development,

Tourism and Environmental Affairs, Mamiki Qabathe, the

province is ready to use its strategic position to boost its

profile in the logistics sector.

The Free State government is investing in the concept of

corridor development and believes the Durban-Free State-

Gauteng Corridor is intended to promote not only better

transport of goods between the end points, but will also

boost economic development in the towns and rural areas

along the way.

Harrismith, situated at

the intersection of the N3

and N5 highways is ide-

ally positioned to be turned

into a logistical hub. This

is especially pertinent con-

sidering the road between

Johannesburg and Durban

is the busiest long-haul

freight transport corri-

dor in the country and

the Harrismith Highway

Junction is the Southern

Hemisphere’s biggest

truck stop.

It is intended to create an

inland port at Harrismith

that can handle cargo

containers and, at the same time,

be able to shift cargo from road

to rail. It is envisaged this will both

reduce road congestion and costs.

It is also estimated that the vol-

ume of cargo passing through

Harrismith will increase by 25%

per annum over the next seven

years and, ultimately, the pro-

vincial government would like to

see the Harrismith Logistical Hub comprising multimodal

capabilities: air, road and rail.

Freight handling Dr Jan Havenga, director: Centre for Supply Chain

Management, Department of Logistics at Stellenbosch

University, says: “If you look at the amount of freight moving

on road and rail on the Durban-Gauteng Corridor annually

it equates to approximately 56 million tonnes of freight, of

which 85% is moved on road. About 45% of all tonnes on

this corridor is for imports and exports, and is therefore an

important corridor for international trade by sea.

“We estimate that more than five million tonnes of freight

can be easily targeted for modal shift to rail, saving the

country approximately R350 million on the freight bill and

reducing the amount of trucks on this route by 400. The

target can be increased in the medium term by a further 18

million tonnes, which would save another R1.2 billion and

take a further 1 400 trucks off this route.”

He adds that the greatest impediment to modal shift,

historically, is a lack of investment in rail and the drag


More than fi ve million tonnes of freight can be easily targeted for modal shift to rail

on rail costs caused by the maintenance of

low-density lines.

“These issues are receiving attention and a turna-

round in rail performance is already noticeable.

Transnet has embarked on a progressive investment

programme and investment in new rolling stock,

motive power and line upgrades is showing results. Rail’s

short-term plans are, however, to concentrate on bulk min-

ing products and fixing the coal supply chain. Many suc-

cesses in this regard have been noticed. The next phase

should see the development of intermodal solutions for

palletised cargo, which should see significant inroads on

the Natal and Cape corridors alleviating congestion mark-

edly and decreasing the investment pressure on roads.

The intermodal solution will require logistics hubs close

to Durban and Gauteng, and the formation of these hubs

around railheads will be an important feature over the next

two decades.”

The Durban Chamber of Commerce and Industry CEO,

Andrew Layman, states: “One has to see this as a long-

term project built up with many phases. It will include more

efficiency and a great deal more capacity in terms of rail

freight. In essence, the N3 is under undue pressure, largely

because it has to accommodate cars and trucks. The ulti-

mate vision would be for a dedicated truck road route from

the port to Gauteng via the Free State.

Sigonyela says: “We have a two-pronged

approach: first we aim to reduce road congestion

by moving a lot more cargo into and out of the

port by rail; and second, we will improve the road

network to enable more efficient and predictable

road operations.

“This is an ongoing programme and not a

once-off initiative. Traffic volumes are forecast to

grow and logistics operations models continue

to evolve, which means that

the infrastructure and nature

of services provided must

similarly evolve. Hence, a

key focus is to create struc-

tures for collaboration and

integrated planning on an

ongoing basis.

“Increasing rail market share is a key component of the

programme. Rail has been growing market share on this

corridor and our objective is to accelerate this trend.”


“One has to see this as a long-term project built up with many phases” Andrew Layman, CEO, Durban Chamber of

Commerce and Industry



Cross-border general freight rail traffi c in the Southern African region has declined signifi cantly in the past 20 years. At the same time, long-haul road haulage has increased dramatically, in spite of border post congestion and road infrastructure deterioration.

WHY HAS THIS come about and can

the trend be reversed? The rail net-

work in Southern Africa has a com-

mon gauge and general standards,

which should allow seamless operations. But what is

hindering this ideal?

The rail network is an important element in the trans-

port infrastructure of the region and the contribution

it can make will be of vital importance to the people

of Africa.

Railway infrastructure and traffic The arterial 1 065 mm gauge rail network in Southern

Africa consists of over 33 600 route kilometres of

interconnected lines. The longest two are between

Cape Town and Dar

es Salaam, a distance

of 5 200 km, running

through four countries.

Cape Town to Lobito is

about 5 800 km, run-

ning through six coun-

tries. Taken in total, some

80 000 km of railways

operate in 30 African

countries and about half

have international connections. Of the total, nine states in the

south, occupying just 37% of the African land space, have

some 60% of total route km of track.

Rail – the downsideUnfortunately, there are still serious gaps in the rail network that

urgently need to be completed to more effectively deal with road

competition and African development requirements. Lack of

effective tracking systems and inadequate customer commu-

nications, arising from poorly coordinated cross-border mat-

ters, often relegates rail services to second place when com-

pared to road. There are too many empty rail wagon workings

(no return-leg backhaul), which increase operating costs while

road transport brokers strive successfully to obtain return-

loads – essential for economic operations and setting of

competitive rates.

In terms of infrastructure, rail operators, whether govern-

ment or private, must maintain and renew their track and this

makes them less competitive when compared to road, since

operators only pay a fraction of the cost of infrastructure pro-

vision, in spite of current charges for road use by kilometre

driven in some countries.

Road competition realityOne-stop-shop border crossing facilities speed road trans-

port operations while local agents deal with documentation

THE ROLE OF RAIL

In intra-Africa trade

“Lack of effective tracking systems and inadequate customer communications, arising from poorly coordinated cross-border matters, often relegates rail services to second place when compared to road”

TRANSPORTATION MODES

By Allen Jorgenson, media and research offi cer for the RailRoad Association of South Africa

37TWA | Jan/Feb 2013 373737373737373737373377737373737337373TWATWATWATTWATWTTWATWATWATWATWTWATTWATWTWAWTWATWATWATWAWAWATWATTWATWTWATWTWWATWATWWAWAWTWAWTWWTWWWAWATWAWWATWATWTWWT AAA |||||||||||||||||||||| JJanJanJJJJanJJJJanJJaJanJJJanJJanJanJJanJaaJJ nJ n/Fe/Fe/Fe/Fe/Fe/FeFeFeFeFe/FeFeeFe/F/FFeFFFebbbbbbbbbbb 2020202020202002020000000131313131313333313333333

to a reduction in highway infra-

structure damage and accidents,

often resulting in loss of life.

The way forwardThe use of intermodal systems and in

particular containerised traffic will lead to

greater cargo security and reduced costs.

The establishment of ‘hub’ distribution

centres will lead to many economies. The

inland container terminals established in

Botswana, Malawi and Zimbabwe have

already proven their benefits and more

such facilities should be opened. Private

sector input can lead to greater benefits

of efficiency and spread the investment

load, which will make it possible for govern-

ment to concentrate on social development matters.

Sophisticated IT-based cargo tracking systems such as

ACIS and RSIS provide valuable data for operators and

customers. Their further development and use should be

promoted across borders.

Rail development alternatives The World Bank and other international organisations pro-

posed that privatisation could be a solution. Unfortunately,

various governments set unrealistic financial targets and

performance goals, expecting the private sector to redress

the under-investment of the past.

It is thought that rail infrastructure ownership should be

retained by the state, but that operations should be freed of

government domination or interference, as is the case with

road transport.

SADC and COMESA must work closely with the private

sector to promote the interests of regional growth and devel-

opment, which will be underpinned by reducing the cost of

transport and logistics.

African countries should support the activities of the

South African Rail Association (SARA) and the RailRoad

Association of South Africa, because these associations can

provide specialised services in the interests of transport and

regional development.

matters in conjunction with transport companies and custom-

ers. Smaller truck loads (averaging 32 t) can be conveniently

redirected when required and on short notice, compared to

individual rail consignments such as containers riding on

block trains.

Rail traffic is generally cleared pre-customs so there should

be no delay in crossing borders. However, making full train

loads can delay dispatch of traffic from point of origin, while

road operations can begin before customs clearance has

been obtained and this can be completed while the goods

are in transit. Nevertheless, road loads are often delayed at

borders since the required documentation would not have

been received.

Road transport has become so much the norm for inter-

national traffic that many companies are convinced that this

is the transport mode of the future, while rail has become

outdated. With road, communication between customer and

transporter is usually carried out on a more personal basis,

whereas with rail a high turnover of marketing staff makes it

difficult to build relationships. Road transport is highly visible

while most rail operations take place out of the public view.

This creates the impression that rail is of little consequence.

The high number of road accidents and health consid-

erations regarding Aids is, however, casting a negative

perception on road transport. Road degradation and high-

way congestion – particularly at border crossing points is

prompting governments to upgrade these facilities but at

public expense.

Where to now? Both road and rail transport technology have made sig-

nificant advances in recent years. This includes operating

equipment efficiency and reliability.

Rail has an inherent advantage over road since it can

move more traffic, while consuming less fuel per tonne per

kilometre than road. In terms of the environment, rail has

many advantages, particularly when the source of energy

is electricity. Considering transport cost externalities rail has

great advantages.

Unfortunately, this advantage can be reduced when rail

distances are appreciably greater than road. For example,

for traffic between the Zambian copperbelt and Durban

the rail and road distances are similar, but for traffic from

Johannesburg to Windhoek, the rail distance is 50% greater

that road by the Trans-Kalahari Highway.

Road is considered to be more time effective than rail but

again, this depends on specific routes. For traffic between

Cape Town and Johannesburg, rail can achieve point-to-

point timings of 14 hours, while road requires at least 28

hours, even with double-manning of heavy vehicles. Road

can provide door-to-door services for general traffic but rail

requires double-handling with road pick-up and delivery in

most cases but over short distances. Greater use of underu-

tilised private sidings should be considered. Combined road

and rail transport systems for long-haul traffic will contribute


“Rail has aninherent advantage over road since it can move more traffi c, while consuming less fuel per tonne per kilometre than road”



The reopening of the Orkney-Vierfontein branch line cluster by Transnet Freight Rail will improve access to markets as well as increase overall freight volumes.

SERVING THE AGRICULTURE industry and

general freight, it will reduce the distance

between Klerksdorp and East London by 16%,

between Durban and Klerksdorp by 20%, and

between Bothaville and Randfontein by 56%.

The Vierfontein-Orkney portion of the branch line clusters

was identified as a key intervention and response to strate-

gic national, regional, provincial and Transnet’s customers’

objectives. The reopening of this line is one of a number of

branch line projects being undertaken to provide ‘respon-

sive infrastructure’ as part of the National Growth Path.

Construction on this particular 15.3 km line began in

April 2012, opening in December and was undertaken by

Transnet Freight Rail (TRF) network.

In alignment with Transnet’s Market Demand Strategy

(MDS), the revitalisation of this line will stimulate economic

activity in the region through the creation of this ‘bridge’

linking the North West and Free State to the Eastern Cape,

Gauteng and KwaZulu-Natal.

From road to railEncouraging rail friendly cargo to move from road to rail,

TFR is striving to increase existing volumes and reclaim

additional volumes across most of its business units in and

out of these regions.

TFR CEO, Siyabonga Gama, says: “We are very excited

about this achievement of constructing the line with our own

resources, within budget and on time.

“This line will contribute to increasing traffic on the routes

taking maize from North West to mills in KwaZulu-Natal and

the ports of Durban and East London, as well as maize

from the western Free State to mills in

Randfontein. At the same time, fuel will

also again be able to be distributed by

rail. The line will also create an alterna-

tive access to Durban when the line

between Klerksdorp and Vereeniging

becomes unavailable, supporting

the manganese flow and iron ore to

Newcastle and Durban.”

TFR’s branch line department is

tasked with the revitalisation of branch

lines as these play a critical role in the

movement of freight as primary feed-

ers to the broader and core network.

During 2012, TFR moved 70 000 t

of maize out of the Klerksdorp and

Coligny area to Durban for the export

market. It is envisaged that with the

opening of this line the tonnage trans-

ported could be as high as 150 000 t

per annum.

TRANSNET BRANCH LINES

Critical in stimulating economy and moving freight


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Branch lines known as secondary networks are lines that

connect two or more points of economic activity to either a

primary rail or secondary rail network. There are 33 branch

lines across South Africa, some active and some closed.

Significance of railTransnet group chief executive, Brian Molefe, says: “The

significance of rail and its

rich history in South Africa

cannot be underestimated.

Even today, rail is still prac-

tical, efficient and, in most

cases, still the most eco-

nomical way to transport

bulk loads.

He adds that with

the opening of Orkney-

V i e r f o n t e i n

branch line

TFR is ensur-

ing it is a

critical cog

within the

country’s eco-

nomic reac-

tivation and

rejuvenation.

“With the

success of this

project there

should be no

doubt about

TFR’s commit-

ment to lay a

strong founda-

tion in ensuring

that state assets are used

to the benefit of all South

Africans.

“As rail regains the promi-

nence it deserves, we will

see a reduction in air pol-

lution especially carbon

dioxide emissions – paying

handsome environmental

dividends.

TFR operates along

approximately 20 953 km of rail network of which 1 500 km

comprises heavy haul lines for export coal and export iron

ore. Included in the network is 3 928 km of branch lines.

South Africa’s rail service is connected with the railways

of the Southern African Development Community (SADC),

enabling trade with the rest of Africa. Rail’s strategic

advantage lies in the movement of heavy haul, bulk com-

modities over long distances where flow densities provide

economies of scale and thereby lower unit cost. Agricultural

products such as grain and timber are conveyed mostly

on the branch lines. Freight Rail will continue to implement

plans for growth of commodities on these lines.

Market demand strategyTransnet is implementing its MDS, which is its response to

providing infrastructure ahead of demand, to reduce the

cost of doing business in South Africa and contributing to

the objectives of the country’s developmental and transfor-

mation agenda. It is envisaged the MDS will stimulate major

activities in the country’s economy by significantly increas-

ing freight volumes

and driving a consider-

able modal shift from

road-to-rail.

The importance of

the Transnet role is evi-

dent in the Presidential

I n f r a s t r u c t u r e

C o o r d i n a t i n g

Committee and the

focused roll-out among

the state-owned com-

panies in the strategic

infrastructure pro-

jects (SIPS). Although

the MDS drives a

number of key pro-

jects, it is assigned

to drive and deliver

on the SIP known

as the Gauteng Free

State-KwaZulu-Natal

corridor development.

The branch line revi-

talisation is impor-

tant for Transnet, and

branch line teams are

engaging stakehold-

ers to develop addi-

tional business and

economic activity that

is sustainable over the

long term.

The deputy minister

for Public Enterprises,

Bulelani Gratitude

Magwanishe, says the

opening of the Orkney-

Vierfontein branch

line is important for

South Africa and the New Growth Path directs that SOCs

should play a catalytic role in reviving the growth of

the economy.

“In supporting the objectives of the developmental state,

the MDS is Transnet’s response to providing infrastructure

ahead of demand to reduce the cost of doing business and

will significantly increase freight volumes. The revitalisation

of branch lines is seen as an intention to unlock economic

potential on both a regional and national level.”

“It is important that we consider the situation of the cur-

rently closed lines and Transnet has the responsibility to

both develop and protect these lines.”

The MDS is responsible for a number of key projects, and is assigned to drive and deliver on the SIP known as the Gauteng-Free State-KwaZulu-Natal corridor development

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