TWA November/December 2014

Commercial Vehicles Law and Accidents

Supply Chain Logistics Peak Transport Operations

Logistics Non-Tariff Barriers

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

Colette Wessels, Imperial Logistics Training and Development – Reducing the logistics skills gap P10

ISSN 1684-7946 November/December 2014 Vol. 12 No. 6 / R50.00 incl. VAT

CC llCCoollDDeevv

Supporting a 116 year success story

FAW Trucks

Intraregional supply chain solu ons from producer to consumer

ENDORSED BY

IN THE HOT SEAT

www.transportworldafrica.co.za

Get your costs in perspective.Over time, the speed of response and proficiency of your finance and insurance providers can have a big impact on your bottom line. So isn’t it better to use a specialist partner who from the moment you pick up the phone, understands that lost time equals lost revenue? There is a better way.

Intraregional supply chain solutions from producer to consumer

INSIDETHIS ISSUEE

COVER STORYFAW Trucks

– Supporting a 116-year

success storyP6

onsumeerr

ORYYcks ing ear ory

P66

Commercial Vehicles Law and Accidents Supply Chain Logistics Peak Transport Operations Logistics Non-Tariff Barriers

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

Colette Wessels, Imperial Logistics Training and Development – Reducing the logistics skills gap P10ISSN 1684-7946 November/December 2014 Vol. 12 No. 6 / R50.00 incl. VAT

C lColDev

Supporting a 116 year success story

FAW Trucks

Intraregional supply chain solu ons from producer to consumer

ENDORSED BY

IN THE HOT SEAT

www.transportworldafrica.co.za

12 1925

REGULARSEditor’s Comment Go back to basics and save lives 2FESARTA Closer cooperation is needed for overloading 5Cover Story FAW – Ross Demolition’s 116-year success 6Regional News 8

LAWLegal implications of a truck accident 12

FLEET MANAGEMENTRoad Transport Management System 14Real-time communication 15Finance company established 16Putting driver’s health fi rst 17

COMMERCIAL VEHICLESFuture Truck launched 18Assembly plant opens 18Refurbished Kempston Road plant revealed 19

INSURANCETransporter insurance – the hazard warnings 20

FUELGame-changing innovation in the fuel industry 21

LOGISTICSFMCG transport 22

Recognising SA’s Truck Driver of the Year 23

Dealing with peak transport operations 25

Future of connected fl eets 29

Challenges and opportunities 30

CORRIDORSNTBs still a big problem 32

PORTS

Terminal plays pivotal role in Cape economy 34

R650 million fuel storage facility 36

GOODS IN TRANSIT Cargo insurance vital 37

TRAININGStrategic logistics investment 38

DRUGSTesting drivers for drugs 39

AIR CARGO Air freight recovery strengthens 40

1TWA | Nov/Dec 2014

Colette Wessels Imperial Logistics Training and Development executive P10

IN THE HOT SEAT

INHS

2 TWA | Nov/Dec 2014

EDITOR’S COMMENT

Hopefully the recent tragic accident on the N12

near Alberton will make everyone sit up and start

acting positively.

Over the years there have been many studies to

ascertain how and why we have so much carnage on our roads.

But not much seems to come from them.

In an ideal world

all drivers and oper-

ators need to go

back to basics and

stick to the rules of

the road. That is my

theory, but we all

know that it is not

going to happen.

It is scary how

many car drivers

do not realise that

a fully laden truck

needs more dis-

tance to slow down. Maybe one aspect that needs to be driven

home to car drivers is that every time they cut in front of a truck

they are literally playing Russian roulette with not only their lives

but also those around them.

The law needs to hold companies liable as well. After all, it is

they who place that driver behind the wheel of the truck.

Both driver and owner should ensure the truck is roadworthy

before leaving the yard. This needs to be drilled into every driver

and operator. If not then the full wrath of the law should take

its course. Courtesy, politeness and respect for the law of the

roads will ensure we cut the carnage down.

It is up to everyone to play their part. If we do, the roads will be

a safer, more enjoyable place to drive.

In this issue we find out what the law says about who should be

held responsible in the event of an unroadworthy truck causing

an accident. We look at considering implementing the RTMS eth-

ics into your transport operation and at improving FMCG delivery

operations. Find out more about the terminal port at Cape Town,

the new fuel terminal there, and what Africa should be doing to

grow its economy and on the logistics side when dealing with

peak transport operations in the fourth quarter.

As always, a varied read. Enjoy!

Simon Foulds

Publisher Elizabeth Shorten

Editor Simon Foulds • [email protected]

Head of design Hayley Mendelow

Senior designer Frédérick Danton

Designer Kirsty Galloway

Contributors Barney Curtis, Andrew Evans, Rhys Evans

& Mario Landman

Chief sub-editor Tristan Snijders

Sub-editor Beatrix Knopjes

Client services & production manager Antois-Leigh Botma

Production coordinator Jacqueline Modise

Marketing manager Hestelle Robinson

Digital manager Esther Louw

Distribution manager Nomsa Masina

Distribution coordinator Asha Pursotham

Financial manager Andrew Lobban

Administrator Tonya Hebenton

Printers United Litho JHB • t +27 (0)11 402 0571

Advertising sales

Hanlie Fintelman • [email protected]

t +27 (0)12 543 2564

No. 4, 5th Avenue Rivonia

PO Box 92026, Norwood 2117

t: +27 (0)11 233 2600 f: +27 (0)11 234 7274

www.3smedia.co.za

Annual subscription: R300 (incl VAT)

[email protected]

ISSN 1684-7946 © Copyright. All rights reserved.

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

Editor in action

Go back to basics and save lives

SHELL SPIRAX S6 AXME 75W-90 CONVERTS INVESTMENT TO CASH

The Shell Spirax S6 AXME gives fl eet owners everywhere a glimpse of the future savings that converts their investments in the correct oil to cash for their companies.

Benefi ts of Spirax S6 AXME:

Reduced friction for improved fuel effi ciency Exceptional wear, pitting and corrosion protection for longer transmission life Longer oil-drain interval for reduced maintenance costs and better value All-climate, year-round performance

TGT00038

The premium Spirax S6 AXME has been developed to enable drivers and fl eet owners to reduce their overheads by switching to a synthetic formulation to enhance wear protection, long oil life and effi ciency, thus saving your company a signifi cant amount of money. Globally, companies have reported on the benefi ts of using the Spirax S6 AXME, citing doubling oil-drainage intervals, reduction of lubricant consumption, fuel consumption and maintenance costs.

Shell Lubricants Fleets

Email address: [email protected]: www.shell.comSA relevant material: http://www.shell.com/zaf/products-services.html Contact No: 0800 027 027

1101538 SPIRAX DVR Fleet Ad_A4_B.indd 1 2014/10/17 12:33 PM

PAGE STRAP

5TWA | Nov/Dec 2014

FESARTA COMMENT

by Barney Curtis, chief executive offi cer, FESARTA

It was also suggested that transporters who signed the

Vehicle Load Control Charter should be members of a rel-

evant transport association within their country.

Uganda is also looking at adopting this particular charter

and discussions have started with the country’s government

in this regard.

Standard in East AfricaThe relevant national road transport associations in the

region have also called on the East African countries to

adopt this charter.

It is my understanding that all the relevant transport asso-

ciations are studying the contents in order to discuss it with

their relevant members.

For this to be possible it will have to be overseen by the

Trade and Transport Authority of the Northern Corridor.

FESARTA recommended that there also be closer coop-

eration between the developers of the charter and the RTMS

going forward because both systems can benefit from con-

structive feedback and dialogue.

OUR REQUEST WAS to include a discus-

sion on the self-regulation system (RTMS) as

adopted in South Africa, plus other outstanding

issues in load limits and load control within the

East and Southern African regions.

This was agreed upon and I attended this event host-

ed by the Trade and Transport Authority of the Northern

Corridor courtesy of the sub-Saharan Africa Transport

Policy Programme.

The Vehicle Load Control CharterThe contents of this charter were predominantly focused on

the Kenyan transport sector. In Kenya, 95% of all goods are

moved by road. It was accepted by all the relevant parties

in Kenya.

Unfortunately no fruitful discussions were held with the

developers of this charter regarding the RTMS in South

Africa. This is, in my opinion, a missed opportunity. This is not

to say the charter is inferior to the RTMS, but I believe there

should have been closer cooperation between the two sys-

tems to agree on the best options applicable to both regions.

Unlike the RTMS, this load charter did not include:

• standards to which consignors, transporters and consign-

ees had to comply

• compulsory auditing of transporters by professional audi-

tors (at accreditation and on an annual basis)

• a national steering committee.

Closer cooperation is needed for overloadingPrior to the load charter for operators along the Northern Corridor being launched at a workshop on load limits and overloading control in Kampala, Uganda, FESARTA requested the scope of discussions to be expanded.


FAW TRUCKS

Ross Demolition’s 116-year success

COVER STORY

7TWA | Nov/Dec 2014TWA 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.

COVER STORY

OPPOSITE AND ABOVE The proven and robust 28.280FD tippers

material recycling business done by

Ross Demolition. “In every site we clear,

we recycle 98% of all the materials used

– bricks, wood, windows, steel, glass,

roof trusses – you name it, we recover

it and resell this to the ‘secondary’

construction tier who are desperate for

affordable, good second-hand material.

We have five depots from where this

recycled material is sold. It’s great to

know we are contributing to preserving

resources and the environment, and

helping other entrepreneurs make a

decent living in the construction indus-

try,” says Robert.

Robert Ross recalls some of the

most amazing projects undertaken by

Ross Demolition. “We’ve imploded the

Athlone Cooling Towers, as well as the

largest building ever in Cape Town,

which always has great spectator value.

One of the most challenging projects

was working against the clock when

we had to demolish the Valkenburg

Bridge within a total time frame of only

eight hours. Beginning at midnight, by

08:00 we had completely dismantled

the bridge, removed all the debris and cleared the site so that

traffic on the N2 route could resume in the morning.

“Another remarkable project was the Portside 101 Project;

the deepest excavation project ever undertaken in Cape

Town. The Portside 101 Project covered a full city block on

the foreshore and required 90 000 cubic metres of rock to be

blasted out and removed from the site. The site was commis-

sioned for a 32-storey building, 142 metres high, which today

stands proudly as the tallest building in the Cape Town CBD.”

“Our fleet of FAW trucks is efficient, robust and reliable. Our

drivers are well trained. We employ sound fleet management

systems, like trackers, and so on, to monitor and ensure we

get the necessary performance to maintain our margins,”

explains John.

“With the recessionary times and the pressures prevailing

in the construction industry, competition is fierce and margins

are tight. We need our fleet to run at the highest uptime rate

possible with the minimum of problems in vehicle mainte-

nance and service requirements. Our FAW fleet stays on the

road, is not demanding in its simplicity of operation and is

particularly great for our bottom line with its low maintenance

costs and minimum downtime. These benefits are crucial to

our profit margins,” concludes Robert.

THIS IS THE message from a company that has

been going strong for 116 years.

Ross Demolition, headquartered in Cape Town,

has prospered and survived many tough econom-

ic times spanning four generations of a family of engineers.

All of them have been dedicated businessmen with not only

a belief in inspirational leadership, but also in strong fiscal

discipline, commitment and honesty.

Since it was established in 1898 by Henry T Ross, the Ross

Demolition group has followed a consistent motto: ‘On time,

every time’. They also don’t shy away from any opportunity,

as they maintain that no job is too big or too small.

At present, Robert Ross and his son, John Ross, man-

age the family-owned business, which engages in contract

demolition work across the whole of South Africa and sub-

Saharan Africa, on a contract basis.

While this is only one of six ‘arms’ of their business opera-

tions, it – like the other five divisions – depends heavily on a

competent and efficient fleet of trucks to ensure all projects

remain profitable, and continue to uphold their irrefutable

reputation for delivering on their promises.

This is why their fleet of FAW vehicles, mainly extra-heavy

tipper trucks, is integral to their success. The FAW reputation

for durability and efficiency matches that of Ross Demolition.

“Our first FAW trucks to join the RD fleet were purchased to

specifically service contracts in Africa where uncomplicated,

easy-to-drive/maintain trucks were the main criteria for get-

ting our excavation contracts done with minimum downtime,”

explains Robert.

“At present, we operate 28 FAW units, mostly the proven

and robust 28.280FD tippers. I am very happy with the

operational efficiencies that we are getting. In most cases,

we are realising superb fuel consumption at 2.3 litres to 2.8

litres per kilometre.

“Working in difficult and dusty uneven terrain, steep gradi-

ents on- and off-site, and moving heavy payloads, we opted

for a shorter wheelbase configuration and a 400 litre fuel

tank adjustment. The Euro II Weichai WD 615.50 engines

give us a respectable 206 Kw with an effective torque of

1 160 Nm to pull payloads, some beyond the prescribed

12-tonne parameter.

“The FAW trucks have succeeded admirably in all our initial

trials. The first units coped beyond our expectations and, as

a result, we’ve deployed them on all our operations locally

and cross border, from confined inner-city projects to distant

mass excavation sites.”

Ross Demolition also provides the construction industry

with mine rehabilitation, plant hire, tricky asbestos removal

and earthmoving services. However, one of the most reward-

ing undertakings to have emerged over the last years, is the

”Survival of the fi ttest through business acumen, keeping ”Survival of the fi ttest through business acumen, keeping

your promises and a resilient attitude manifested by every your promises and a resilient attitude manifested by every

employee – that’s the recipe for success.“employee – that’s the recipe for success.“


REGIONAL NEWS Read more on www.transportworldafrica.co.za

A 10-YEAR CONTRACT for transporting coal on rail

has been signed between Transnet and the South African

coal unit of mining company BHP Billiton. This agreement

makes the Australia-based miner the fi rst major cus-

tomer to commit to a long-term take-or-pay contract with

the South African state-owned freight transport company.

It is also a massive boost for certainty around

Transnet’s capacity expansion programmes on the

export coal line. Transnet is adding close to 10 million

tonnes in capacity on the line from the current 73 million

to 81 million tonnes, over the next seven years. The

agreement with BHP equates to a contract value of ap-

proximately R2.4 billion per annum and R24 billion over

the 10-year period.

Take or pay contracts are crucial to Transnet’s capital

investment programme as they provide revenue certainty

– a key consideration for raising funds in the capital

markets. Take or pay contracts mean that Transnet com-

mits to providing trains and a customer is obliged to pay

whether they have product or not.

Crucially, the long-term contracts provide a massive

boost to South Africa’s credentials as an investment des-

tination, as they confi rm the mining sector’s confi dence

in the country. For Transnet, this is an indication of

strengthening relations with customers, particularly with

regards to partnering on future plans.

BHP is one of Transnet’s and South Africa’s largest

coal exporters. Transnet is confi dent that agreements

with the remaining 28 customers will be formalised by

the end of November this year. Transnet has been in ne-

gotiations with the industry over the last 20 months and

most customers have agreed to the terms. All exporters

moving through the Richards Bay Coal Terminal (RBCT)

will sign individual contracts of 10 contract years, com-

mencing on 1 April 2014 and terminating on 31 March

2024. Transnet Freight Rail has committed to moving

810 million tonnes of coal over the period, including a

performance guarantee.

SOUTH AFRICA

R24 billion 10-year deal signed with Transnet THE MAPUTO CORRIDOR Joint Operating Centre (JOC) has been offi cially

launched by Transnet and port and rail operators in Swaziland and Mozambique.

The centre is a major milestone for the

three countries in their drive to pro-

vide a seamless fl ow of cargo services

to their customers.

The JOC enables Transnet, through

its rail freight division, Transnet Freight

Rail, Mozambique rail and port opera-

tors respectively, Caminhos de Ferro

de Moçambique and Maputo Port De-

velopment Corporation and Swaziland

Railway to establish common operating

and maintenance philosophies.

These efforts are aimed at enhancing operational effi ciencies on the freight cor-

ridor, which runs from Mpumalanga in South Africa through Swaziland to the Port

of Richard’s Bay and the Port of Maputo in Mozambique.

The JOC houses representatives from all four partners under one roof, focusing

on the integration of planning and operations, and managing all cross-border

operations and stakeholders. The JOC has already realised signifi cant effi ciency

gains. These include an impressive 24% reduction in dwell time at Komatiepoort,

and an unprecedented 57% reduction in dwell time at the ports in Maputo.

In the JOC’s fi rst year of operation, Freight Rail’s volumes to Mozambique grew

from 2.6 mtpa to 4.5 mtpa.

SOUTHERN AFRICA

Smooth fl ow of cargo

THE EXPORT PROCESSING Zone (EPZ) in Tanzania continues generating

revenue and creating jobs for the region with another 13 new local and

foreign companies being allowed to start businesses within its Special

Economic Zones.

Dr Adelhelm Meru, the Economic Processing Zone Authority director-gener-

al, says: “Once these new companies start operations, about 2 346 jobs will

be created and $78.35 million will be generated in the fi rst year.”

Over the last fi ve years, the country has generated $450 million net profi t

from goods exported from the country’s EPZ. Since these were established

within Tanzania, over $700 million has been invested in the country in the

process creating 14 000 direct jobs.

The EPZ scheme became operational in 2002 when Tanzania set aside

16 150 hectares of land for the development of Special Economic Zones in

three of its cities in an attempt to attract foreign investment.

EAST AFRICA

Creating 2 346 jobs and generating $78.38 million in fi rst year

9TWA | Nov/Dec 2014

REGIONAL NEWS

THE LATEST PHASE in an innovative scheme giving drivers owner-

ship of a business, while realising a company’s enterprise develop-

ment objectives, is bearing fruit.

Adcock Ingram Critical Care recently handed owner-drivers the keys

to their vehicles enabling them to distribute Adcock Ingram products

along allocated territories. The company has empowered the drivers

through training in various standard operating procedures, new logis-

tics technologies and business management skills, to ensure these

new entrepreneurs get the best shot at business success.

Adcock Ingram Critical Care is a major supplier of life-saving

medicines to hospitals and all the vehicles are branded with mes-

sages and images relating to the Critical Care mission and range

of products.

Tobie Krige, head: Logistics at Adcock Ingram says: “Due to the

nature of the products produced by the Critical Care facility, distribu-

tion takes place directly from the Aeroton site. I am passionate about

this programme and have seen how it changes the lives of the new

business owners.”

The launch of this Critical Care fl eet of 17 vehicles augments an

existing fl eet of 25 vehicles, with owner-drivers already delivering the

Adcock Ingram range of products from the main distribution points in

Midrand, Cape Town and Bloemfontein.

Meshack Matswi, one of the fi rst-phase and now established

owner-drivers, talks about his experiences and the value of being a

director: “This is a serious business and the opportunity to be a busi-

ness owner and employer most certainly has its rewards. I have been

able to grant my youngest son his greatest wish and that is to train

as a professional soccer player through the Brazilian Soccer School

Academy. Without this opportunity offered by Adcock Ingram, I would

not have been in the fi nancial position to do this.”

Krige states “We believe in adding value to life and are committed

to helping combat unemployment. There is a great entrepreneurial

spirit shared by our owner-drivers and it is amazing to see how much

dedication and effort people can put into something when given

the chance.”

SOUTH AFRICA

Accelerating owner-driver projects

IN SPEARHEADING trade integration across East

Africa, Trademark East Africa has invested $100 mil-

lion in upgrading the one-stop border posts within

the region.

This will ease cross-border trade and improve busi-

ness competitiveness by reducing the time spent to

clear cargo in transit.

So far, construction at the Holili-Taveta one-stop bor-

der post at the Kenya-Tanzania border is complete, pav-

ing the way for controls that will save time and money

for traders ferrying goods into northern Tanzania. It is

expected to be offi cially opened in 2015.

States Frank Matsaert, CEO at Trademark East Africa:

“We are already working on the Busia and Malaba bor-

der posts to upgrade the facilities, as well as working

towards improving the management of work processes

and eventually easing transit times in East Africa.”

EAST AFRICA

$100 million invested in upgrading one-stop border postsTHE CARGO PROCESSING

capacity at the Port of Maputo

will increase from 40 million to

50 million tonnes by 2020.

This is according to Osorio

Sales Lucas, president of the

Maputo Port Development Com-

pany (MPDC), who was speaking

at the launch of the Joint Opera-

tion Centre (JOC) of the Maputo

Corridor.

Three new docks will also be constructed along with dredging to increase the

depth of the port from its current 11 m to 14 m, enabling larger draft vessels to

moor at the port.

Lucas says: “A tender will be announced in the coming months to ensure that

new dredging operations are carried out by a company with capacity to carry out

the work. Meanwhile Italeni, Transnet Freight and Rail’s new dredger, is due to

arrive in Maputo for maintenance dredging.

“Portos e Caminhos de Ferro de Moçambique also plans to invest $1 million

in infrastructure and rolling stock to allow most of the cargo sent to the Port of

Maputo to arrive by rail, rather than by road as is currently the case.”

The MPDC, a partnership that includes South Africa’s Grindrod and DP World of

the United Arab Emirates as its main shareholders, handled 17 million tonnes of

cargo in 2013 and is expected to increase this to 19 million tonnes this year.

The JOC – which has been in operation since 2013 – coordinates the operations

of Transnet Freight Rail, CFM, Swaziland Railway and the MPDC.

SOUTHERN AFRICA

Processing 50 million tonnes of cargo by 2020


HOT SEAT

In your experience, has the skills gap broadened? Research and experience

indicates that it has not changed

much, entry/operational level

skills are relatively easy to obtain,

however the talent challenge

remains at senior and executive

management level.

This is due to technical com-

petence being relatively easy to

attain, and a number of managers

lack the leadership and strategic

ability for transition to senior/

executive level.

Transformation remains a chal-

lenge in the traditional ‘crucial and

scarce’ skills categories, such as

engineering and IT programming/

architecture development.

The well-published problem

within the education system in

South Africa does not help in

alleviating the skills problem. The

bureaucracy and other challeng-

es, such as resources, entrenched

in the processes of sector educa-

tion and training authorities often

limit the efficiency of these bodies

in addressing skills development

in certain sectors.

What measurements are taken to minimise the skills gap? Industry level:

bursary schemes are available in

the fields of logistics and supply

chain management together

with selected commercial

Skills training is an important aspect of growth within a company, as well Skills training is an important aspect of growth within a company, as well

as for growing the economy. In this issue’s Hot Seat, we put Imperial as for growing the economy. In this issue’s Hot Seat, we put Imperial

Logistics Training and Development executive Logistics Training and Development executive Colette WesselsColette Wessels on the spot on the spot

about the importance of skills development and the initiatives being taken about the importance of skills development and the initiatives being taken

at Imperial Logistics.at Imperial Logistics.

disciplines. Workplace experience

programmes are available to

young graduates. A partnership

with educational institutions and

professional bodies supports staff

in promoting their careers.

Company level: we have devel-

oped numerous customised

leadership programmes to build

technical and general managerial

competence. Internal and external

short courses are facilitated for

professional development.

Are there sufficient industry training options and how does the company take advantage of these? Over and beyond

our internal programmes, we have

partnered with numerous private

and public education institutions

and training providers. These

include universities, FET colleges,

professional bodies such as

SAPICS, ECSA and CIMA, as

well as other private providers.

Additionally, we leverage grants

to fund skills development in

maintaining close relations with

the relevant sectors in education

and training authorities.

Are there any current opportunities in pursuing a career in transport? Opportunities have grown

remarkably in this industry. Our

assistance in offering tertiary

Reducing the logistics skills gap

educational promotes added

opportunities. It is important

that both the private sector and

industry partners do more to

profile logistics and transport

sectors at school level. An

initiative such as the Road

Freight Bargaining Council is

an informative and valuable

expedition. The Transport

Education and Training Authority

drafted a career guide for

the sector.

How has training and development evolved at Imperial Logistics? When

we recognised the need to move

to the next level and establish

an accredited in-house training

facility to upskill our people, the

Imperial Logistics Academy was

born. The academy provides

customised, integrated training

and development programmes

that are aligned with national

qualifications, as well as practical

short courses to address specific

skills development and career

advancement needs.

What about training in the rest of Africa? In line

with Imperial Logistics’ vision to

expand its African footprint, the

Imperial Logistics Academy is

affiliated with the Imperial Health

Sciences Supply Chain Academy,

one of Africa’s leading providers

of training and development for

people working in the continent’s

public health supply chain. As

Imperial Academy’s African

partner, it offers training and

skills development beyond South

Africa’s borders, to health and

logistics practitioners in public

health facilities, government

health departments and private

logistics companies.

IMPERIAL LOGISTICS

11TWA | Nov/Dec 2014

HOT SEAT

THE ACADEMY IS THE natural next step in

the evolution of the group’s education and

development efforts, comments chief executive

officer Marius Swanepoel. “Imperial has always

strived to be an employer of choice as well as a learning

organisation, so we’re not new to training. Our multifac-

eted learning and development framework has garnered

numerous accolades and awards over the years, including

the SAPICS Corporate Educator of the Year award and the

South African Graduate Recruiters Association’s Graduate

Employer of Choice award. We recognised the need to

move to the next level and establish an accredited in-

house training facility to upskill our people, so the Imperial

Logistics Academy was born,” he explains.

The academy provides customised, integrated train-

ing and development programmes aligned with nation-

al qualifications, as well as practical short cours-

es to address specific skills development and career

advancement needs.

“In addition, the academy enables graduates to enter

the supply chain and logistics industry through graduate

development and learnership programmes,” Swanepoel

expands. “A dedicated graduate development manager

engages with further and higher education institutions on

a continuous basis to reach graduates around the country.

Guest lecturing is offered, and the academy also partici-

pates in career days, to maintain a close relationship with

higher and further education institutions. A key strategy is

Academy boosts supply chain skills

to build a pipeline of graduates, to feed

into the Imperial Logistics internships

and bursary schemes,” he states.

All training is customised to reflect

the Imperial approach and encom-

pass Imperial Logistics’ best practice.

“Subject matter expertise drawn from

within the organisation enhances the

training programmes,” Swanepoel notes.

“Skilled Imperial Logistics people con-

tribute to content development and offer

guest lecturing and mentorship. This

means that skills are transferred both

internally within the group and externally, to develop the

broader supply chain industry.”

In line with Imperial Logistics’ vision to expand its African

footprint, the Imperial Logistics Academy is affiliated with

the Imperial Health Sciences Supply Chain Academy,

which is one of Africa’s leading providers of training and

development for people working in the continent’s public

health supply chain. “As the Imperial Logistics Academy’s

African partner, it offers training and skills development

beyond South Africa’s borders, to health and logis-

tics practitioners in public health facilities, government

health departments and private logistics companies,”

says Swanepoel.

Also complementing the Imperial Logistics Academy’s

offerings is its collaboration with Ikaheng HR Services,

a group company that focuses on operator and legal

compliance training.

The Imperial Logistics Academy also aims to drive indus-

try cooperation, partnerships and knowledge sharing. The

Academy is closely affiliated with the Transport Education

and Training Authority, as well as other leading industry

associations, such as the Road Freight Association,

SAPICS and CIMA.

“At Imperial Logistics, we believe that the right solutions

and services are meaningless without skilled people to

adopt, implement and support them. Through the Imperial

Logistics Academy, we aim to get the best from our people

and help them get ahead, as well as advancing the supply

chain and logistics industry as a whole,” he concludes.

Refl ecting its commitment to addressing South Africa’s critical skills shortage, logistics Refl ecting its commitment to addressing South Africa’s critical skills shortage, logistics

and supply chain leader Imperial has launched the Imperial Logistics Academy.and supply chain leader Imperial has launched the Imperial Logistics Academy.

IMPERIAL LOGISTICS


LAW

The horrifi c accident on the N12 near Alberton in October was described The horrifi c accident on the N12 near Alberton in October was described

by Ismail Vadi, MEC for Transport in Gauteng, as looking like the by Ismail Vadi, MEC for Transport in Gauteng, as looking like the

aftermath of a bomb explosion.aftermath of a bomb explosion.

THE DRIVER WAS arrested shortly after the acci-

dent and Minister of Transport Dipuo Peters also

called for the truck owner to be arrested. This has

raised questions about what the law says about

who should ultimately be held responsible and prosecuted:

the driver or the owner of the vehicle? At the same time what

should a driver do if he realises the vehicle is unroadworthy?

TWA speaks to Alta Swanepoel, from Alta Swanepoel

and Associates, who specialises in the field of road traffic

and transport legislation and does training for both traffic

officials and the transport industry.

Swanepoel says: “The Act makes both the driver and

operator (owner of certain vehicles) responsible. This is

explained in Section 45, Regulation 265 and Section 49.

“Section 50 of the Act gives the MEC for Transport power

to suspend vehicles and Section 51 places a burden of

proof on the operator to show he has done everything rea-

sonable to comply with legislation.”

Should a driver realise the vehicle is unroadworthy during

a pre-trip inspection, what can he do, especially if he fears

losing his job?

“He should inform the operator immediately because if the

driver causes an accident in the unroadworthy vehicle, he is

considered guilty. An employer may not force an employee

to do something criminal.

“A driver cannot be technically fired for refusing to drive an

unroadworthy vehicle because he is not doing something

that warrants a dismissal.

Legal implications of a truck accident

“It is very risky for truck operators who do not maintain

their vehicles, as they are ultimately responsible both crimi-

nally and civilly. Section 89 of the Act makes it an offence to

not comply with the law regarding unroadworthy vehicles.”

What follows are some of the relevant sections from the

National Road Traffic Act 93 of 1996 operators and CEOs

should take note of:

Section 49: Duties of the operatorThe operator of a motor vehicle shall:

(C) Exercise proper control over the driver of such motor

vehicle to ensure the compliance by such driver with

all the relevant provisions of this Act, in particular the

provisions regarding:

(i) the requirements in respect of the professional driving

permit referred to in Section 32

(ii) the loading of such vehicle as prescribed by or under

this Act.

(D) Ensure that such motor vehicle complies with the fitness

requirements contemplated in Chapter V.

(E) Conduct his or her operations with due care to the safety

of the public.

(F) If dangerous goods or substances are conveyed, ensure

that all requirements for the conveyance of such goods

or substances, as prescribed in:

(i) any other law in relation to such goods or

substances; and

(ii) this Act.

(G) Take all reasonable measures to ensure that such motor

vehicle is operated on a public road in compliance with

the provisions for the loading and transportation of

goods as prescribed by or under this Act.

Section 50: Power of CEO in respect of motor vehicles, drivers and activities of operators1. The chief executive officer concerned may, on account

of any evidence regarding the state of fitness of a motor

vehicle in respect of which an operator is registered,

produced to him or her in accordance with Subsection

(4), by written notice:

(A) Notify such operator that such motor vehicle is suspect-

ed of being unroadworthy and that the operator should

forthwith take adequate steps to ensure its continued

roadworthiness in accordance with Chapter V.

Alta Swanepoel, manager at Alta Swanepoel and Associates


LAW

• that no further operator card shall be issued to him or her

for such period as the chief executive officer may specify

in the notice

• that the operator card or cards relating to such motor

vehicle or vehicles as the chief executive officer may

determine in respect of which he or she is registered as

the operator is or are suspended until that chief executive

officer is satisfied that the grounds for the suspension

have lapsed. Provided that:

(AA) The period of any suspension under subparagraph (iii)

shall not exceed 12 months.

(BB) Any decision by the chief executive officer under this

paragraph shall only be taken on the basis of a recom-

mendation by a person appointed under paragraph (B).

(CC) The chief executive officer shall, within 21 days after

the date of the notice, in writing furnish such operator

with the reasons for his or her decision.

Section 51: Act or omission of manager, agent or employee of operator1. Whenever any manager, agent or employee of an opera-

tor commits or omits an Act which would have constituted

an offence in terms of this Act if the operator had com-

mitted or omitted such Act, that operator shall, in the

absence of evidence that:

(A) He or she did not connive at or permit such Act

or omission.

(B) He or she took all reasonable measures to prevent an

Act or omission of the nature concerned.

(C) That an Act or omission of the nature of the Act or omis-

sion charged did not fall within the scope of the authority

of or the course of the employment as such manager,

agent or employee, be deemed himself or herself to

have committed or omitted that Act and be liable to be

convicted and sentenced in respect thereof.

2. Whenever any manager, agent or employee of an opera-

tor commits or omits any Act which would have con-

stituted an offence in terms of this Act if such operator

had committed or omitted it, such manager, agent or

employee shall be liable to be convicted and sentenced

in respect thereof as if he or she were such operator. The

Adjustment of Fines Act equals one year imprisonment to

R40 000 = Max fine therefore 6 x R40 000 = R240 000.

(B) Require from such operator to indicate in writing what

precautions he or she has taken to ensure the continued

roadworthiness of such motor vehicle in accordance with

Chapter V.

(C) Direct such operator to produce such motor vehicle for

inspection, examination or testing at a time and place

specified in such notice.

(D) Suspend the operator card issued in respect of such

motor vehicle, if such motor vehicle has been examined

or tested under paragraph (c) and found to be unroad-

worthy in terms of Chapter V, for such period as such

motor vehicle is so unroadworthy.

2. The chief executive officer concerned may, on account

of the record of a driver of a motor vehicle in respect of

which an operator is registered, by written notice:

(A) Inform such operator that it is suspected that he or she

does not exercise proper control over the driver under

his or her authority as required by Section 49.

(B) Require such operator to indicate in writing what pre-

cautions he or she has taken in order to ensure proper

control over drivers under his or her authority.

(C) Require such operator to produce for examination the

records regarding drivers which an operator is required

to keep in terms of this Act.

(D) Direct that the driver concerned be retested in terms of

Section 25.

3. The chief executive officer concerned may, if the record of

an operator indicates that such operator does not comply

with the provisions of this Act, by written notice:

(A) Direct such operator to carry out his or her duties in

terms of Section 49 properly.

(B) Appoint a person whom he or she deems fit, to investi-

gate the activities or specific activities of such operator

and direct the person so appointed to make a written

recommendation to him or her regarding what measures

should be taken in respect of such operator.

(C) Direct such operator to appear before him or her or

before any other person appointed by him or her, in order

to furnish reasons for his or her failure to carry out his or

her duties in terms of Section 49 (D) notify such operator:

• that an operator card shall only be issued to him or her

on such conditions as the chief executive officer may

deem fit

One of the countless accidents on our highways


RTMS IS AN industry-led, voluntary self-reg-

ulation scheme that encourages consignees,

consignors and transport operators engaged

in the road logistics value chain to implement

a vehicle management system that preserves road infra-

structure, improves road safety and increases the produc-

tivity of the logistics value chain.

In practice, there are two arms to the RTMS initiative,

namely: industry participation and specific operator par-

ticipation. Industry participation includes proactive indus-

tries such as the South African sugar industry, which has

embraced the RTMS principles and diligently managed

their logistics with some really impressive results for over

seven years now. The South African Sugar Association has

seen an 86% reduction in incidence of overloads across a

massive 20 million tonnes of product moved per annum.

Van Tonder says, “It would be so good to see more indus-

tries embracing this approach. Operator participation is

voluntary and any transporter, consignee or consignor can

elect to implement the RTMS standards within their organi-

sation and be independently audited to gain and maintain

their RTMS certification. To date, over 116 organisations

have been accredited.

“The RTMS standards are available from SABS and are

specific for transporters, consignees, consignors. RTMS is

a management system which insures that all your transport

activities comply to all the required regulations. The RTMS

initiative is gaining more and more support, for example

in 2012 the project was awarded platinum at the National

Logistics Achiever Awards. In KZN the local Department of

Transport is in fact an active steering committee member

and even sponsors some of the project giving it the much-

needed means to operate.”

Benefits of accreditationVan Tonder adds, “Other than the obvious advantage

that it assists operators in doing the right thing, RTMS

also assists industries and operators to be recognised as

being committed to responsible business. Other exam-

ples of advantages are the that RTMS certified opera-

tors become eligible to apply to operate smart trucks

Road Transport Management SystemFollowing the recent truck accident on the N12 near Alberton, Following the recent truck accident on the N12 near Alberton, Simon FouldsSimon Foulds speaks to speaks to

Road Transport Management System chairman Adrian van Tonder to fi nd out why it Road Transport Management System chairman Adrian van Tonder to fi nd out why it

is important for transport companies, irrespective of size, to implement the system.is important for transport companies, irrespective of size, to implement the system.

(performance-based standards trucks) and even certain

insurance premium concessions have been applied. Any

transport company can join irrespective of its size.”

ProcessThere are basically two routes an operator can follow:

First: the operator buys the standard from SANS

(ARP067-1) and works through it alone until all require-

ments are met.

Second: done through a company called Crickmay which

provides a consulting service in order to get an operator

ready for a RTMS audit. Once the transporter is ready, an

independent external RTMS auditor can be booked for a

RTMS audit for certification.

CostsIf an operator wants to go it alone, the costs are R335

for the standard plus the cost of the audit, which is in the

region of R10 000.

Van Tonder states, “This process typically takes anything

from 6 to 12 months and in some cases is abandoned

all together.

“Otherwise, through using the Crickmay Consulting

Model, it will cost an operator approximately R16 000. This

typically shortens the time to get accredited to between

three and five months and takes a load off of the operator.”

Small operations accreditationStates Van Tonder: “Small operators can become very

competitive due to an increasing number of contracts

being awarded to RTMS certified operators.

“Bigger operators often prioritise the use of a RTMS certi-

fied operator to subcontract work so as much of the respon-

sibility as possible is already taken by the subcontractor.”

Van Tonder concludes: “RTMS gives the operator better

control over fleet and management of staff (maintenance,

driver training and fatigue management). It creates a paper

trail for complete business operations (e.g. accident inves-

tigation and court cases).

“It proves they do what they say they do (no overloading,

good maintenance, good working conditions).”

FLEET MANAGEMENT

Adrian van Tonder, chairman of RTMS


FLEET MANAGEMENT

Real-time communication

THIS DEVICE collects pertinent data from the truck

as it is driven and transmits it to an interface, which

then evaluates the data. Hereafter, an easy-to-under-

stand spreadsheet is received weekly by the operator

who knows at a glance which of his trucks is being driven and

operated efficiently. Those vehicles not operating efficiently are

flagged and from the report the operator knows exactly which

areas need to be investigated.

The operator can know in real time a range of information

including whether the vehicle has a serious engine fault, worn

brake linings, low oil and tyre pressure, whether there has been

a change of driver and also if the vehicle has deviated from its

designated route.

AdvantagesWhen purchasing a Scania truck, the Scania Communicator

is installed free of charge and operators have a choice of two

packages. The first is the monitoring package, which provides

full fleet data on each vehicle and it is free to owners. The

second is the control package, which, for a monthly fee, also

includes map functionality in real time. The latter also includes

international roaming for cross-border operations at no addi-

tional cost.

With both packages, tools are provided to the operator for

both driver and vehicle data analysis. This enables operators

to get more skilled drivers because they can isolate bad driv-

ing habits and then provide drivers with the relevant training. At

the same time, it also enables you to lower fuel costs and the

truck’s environmental footprint.

Because the hardware is fully integrated into the vehicle,

operators are connected to their vehicles and are able to track

and trace in real time.

MonitoringThis package is easy to operate and no prior knowledge of

fleet management is required. Scania will email the operator a

weekly report on the previous seven days’ data of each truck

to the operator on a Monday morning. A monthly report is also

received showing a monthly overview and then at the end of

the year an overview report is received. Operators receive 65

reports on their Scania vehicles each year.

These reports are a basic fleet overview showing performance

indicators and trends. Therefore it is easy for operators to find

the right details so that they can start seeing which vehicles

and drivers are using the most fuel and which are not. It thus

If you are serious about monitoring your fl eet while ensuring operating costs are kept at If you are serious about monitoring your fl eet while ensuring operating costs are kept at

a minimum, then, as a Scania owner, the answer lies with the Scania Communicator.a minimum, then, as a Scania owner, the answer lies with the Scania Communicator.

becomes easier to spot any deviations over a weekly or monthly

period. The reports show specific vehicles’ performance broken

down into key categories like idling and coasting.

ControlIf more detail is required, then the control package can be

implemented. With this package, Scania operators can keep

track of their vehicles 24/7. This also enables operators to verify

what you are invoicing and to also prove to customers that you

did make their deliveries on time.

Drivers can be monitored so they do not exceed allowed driv-

ing time and you can get instant updates on vehicle location.

Operators can analyse the routes taken by the

drivers as well as set geographical zones. Should

the vehicle then deviate from this geographical

zone, the operator is notified immediately.

The vehicle reports are also more detailed for

each vehicle, ranging from fuel consumption

to idling times per trip, whether the driver has

exceeded the speeding limit, including harsh

accelerations and harsh braking actions – which

both increase fuel consumption. The report also rates the driv-

er’s performance for that week giving them a score out of 100.

Through this report, you can see whether driver targets are

duly met and it is a great way to indicate details that matter.

Often, details that matter when operating trucks are deviations

from the normal. With the exceptions report – which is part of

this package – operators are given the details quickly so these

deviations can be dealt with almost immediately.

Trucks positionThanks to the map functionality, you can be in control of your

fleet regarding driver usage. You also have an exact overview of

your fleet’s position and each vehicle’s current status irrespec-

tive of whether it is driving, resting or loading.

Another great feature of this package is that operators can

click on the truck’s position on the map and get its GPS posi-

tioning, fuel level in percentage, odometer reading and so

much more.

Operators are now in complete control of their Scania, irre-

spective of whether it is in South Africa, Namibia, Zimbabwe or

Mozambique – in real time via their PC or tablet and also receive

all the relevant data weekly, monthly as well as an annual report.

At any given stage, key pertinent data is literally at the opera-

tor’s finger tips.

Scania operators can keep track of their vehicles 24/7

FLEET MANAGEMENT


WILNA STEYN, CEO of Babcock Africa’s

Transport Solutions division, says, “This

development has been long in the planning

and the offer of financing will significantly

boost sales of DAF trucks in the South African market.

“This development will give us the competitive advantage of

a full product offering against certain brands in this market –

and allow us to compete on the same level with others.

“When we took on the DAF brand four years ago, we became

aware of the importance finance plays in the extra-heavy truck

market. To address this issue, we initially entered into various

joint ventures and partnerships with local banks to offer a

solution to our customer base. However, these solutions did

not fully meet all the requirements of our customers looking for

an in-house finance solution. The establishment of Babcock

Financial Services will now meet this need.”

Steyn adds that, in addition to the recent renewal of

Babcock’s DAF distribution contract for a further five years,

this milestone development also demonstrated Babcock’s

commitment to servicing and growing the DAF brand in

this country.

Within a very short period of time, Babcock finance has

already enjoyed a huge take-up from customers from all parts

of South Africa and Steyn predicts that this would grow very

rapidly over the next 12 months. Babcock Financial Services

currently has sufficient finance to cover more than a year’s

sales and this will be steadily increased.

Finance company establishedBabcock Financial Services has Babcock Financial Services has

been established to provide fi nance been established to provide fi nance

for the purchase of DAF Trucks.for the purchase of DAF Trucks.

Wilna Steyn, CEO of Babcock’s Transport Solutions division


FLEET MANAGEMENT

THE MORE GOODS that are moved, the more our

economy thrives. The opposite is also true – when

goods are not transported, our economy suffers.

Long-distance truck drivers lead a hard life, with

prolonged periods of absence from home. Drivers lead a sed-

entary lifestyle, travelling for hours on end, and often exposed

to high-risk behaviour and poor nutritional options.

The nomadic lifestyle of a truck driver also means that it is

very difficult for them to access conventional medical services

in order to take care of their health. With the above in mind, it

is important to ensure that the health and well-being of truck

drivers is a priority for us as an industry.

Healthy driverSays Ströh, “Driving a truck is a highly demanding job with

long hours and tight deadlines. It is also a highly responsible

job as often cargo worth large sums of money is transported.

Quick reflex action is also essential as anything can hap-

pen on the road and drivers need to be able to protect both

themselves and other drivers on the road. Lastly, if drivers are

not well and cannot transport goods around the country, our

economy suffers.

Improvement“In order to ensure the well-being of our truck drivers, as well

as South Africa’s economy, the National Bargaining Council for

the Road Freight Industry launched Trucking Wellness in 1999.

“Trucking Wellness (previously known as Trucking Against

Aids) was launched to create awareness

around HIV/Aids and sexually transmit-

ted infections among long-distance

truck drivers, commercial sex workers

and those at risk such as driver spouses

and partners. Over the years, the pro-

gramme has evolved into providing a

holistic approach to health and wellness,

encompassing a wide range of free pri-

mary health-care services.

Education and training“The highly trained Trucking Wellness

nurses and counsellors provide

With more than 80% of the country’s goods being transported via road, South Africa’s With more than 80% of the country’s goods being transported via road, South Africa’s

trucking industry currently forms the backbone of our economy. trucking industry currently forms the backbone of our economy. Simon FouldsSimon Foulds sits down sits down

with Tersia Ströh, COO at the National Bargaining Council for the Road Freight and Logistics with Tersia Ströh, COO at the National Bargaining Council for the Road Freight and Logistics

Industry (NBCRFLI) to fi nd out how critical driver wellness is within the industry.Industry (NBCRFLI) to fi nd out how critical driver wellness is within the industry.

Putting drivers’ health first

education and training to drivers regarding HIV/Aids and sexu-

ally transmitted infections. Where necessary, they also provide

counselling and emotional support.

“Education and training is an effective tool to influence the

health and wellness attitudes and behaviour of truck drivers.

It equips drivers with the necessary information for them to

make responsible decisions. The training is available to drivers

whenever they visit a Trucking Wellness Clinic, a mobile clinic

and at the Wellness Days.

“It is important for transport operators to consider their

employees’ health at all times and to communicate with their

employees about the benefits of leading a healthy lifestyle, not

only for themselves and their families, but for the economy too.

A large part of this includes pointing their drivers to the tools

available to them – the Wellness Centres and the Wellness

Fund Health Plan.

Own wellness programmes“Truck operators can also look into introducing their own

Wellness Programmes and Wellness Days within their organi-

sations, encouraging their drivers to maintain healthy life-

styles. Should an operator wish the council to be present at

their Wellness Day to inform employees about the various

wellness services available to them, they should please

contact us so that we can send our mobile office to the

Wellness Day.

“By building a health-conscious trucking industry, we help

transport companies to operate at their optimum while

also contribut-

ing to the overall

safety on South

African roads.”

The NBCRFLI

The NBCRFLI strives to combat the spread of HIV/Aids effectively:• by encouraging those who test HIV-

negative to remain negative• by keeping those who test HIV-positive

healthy and productive for as long as possible

• by positively infl uencing attitudes to break down stigma surrounding the disease.

Tersia Ströh, COO at NBCRFLI


COMMERCIAL VEHICLES

STEEPED IN A rich 52-year-old heritage associ-

ated with reliability and performance, the new

Canter Lift continues to apply FUSO’s long-

standing global branding to the future of trans-

port technology in South Africa.

Since its international launch, the latest FUSO Canter

Lift made history by being the first commercial vehicle

to receive the Automotive Researchers and Journalists

Conference’s Car of the Year Special Award 2013. This was

followed in Ireland by the accolade of Best Energy Efficient

Product Award being bestowed on this

impressive vehicle.

Godfrey Hani, divisional manager

for FUSO, speaking at the launch in

Johannesburg, said, “Lift stands for

‘light-duty international future truck’

and this is indicative of our pioneer-

ing spirit of always moving forward

for our customers and society. As we

continuously refine the Canter so that

it remains at the forefront of the truck

FOLLOWING A MULTIMILLION rand invest-

ment in its Commercial Vehicles division, Hyundai

Automotive South Africa officially opened its com-

mercial vehicle assembly plant on the East Rand.

Wade Griffin, director: Commercial Vehicles at Hyundai

Automotive SA, says, “The opening of this assembly plant

forms an ideal platform from which to strengthen our busi-

ness strategy, both in terms of commercial market growth

and sustainability, as well as an increasing commitment and

investment in the South African economy.

“We believe that there are strong opportunities through

investment and local assembly to capitalise on for our busi-

ness. This substantial investment will also

help to improve local skills and create jobs

in an economy that is in dire need of such

opportunities.”

The rationale behind the semi knocked

down (SKD) assembly plant in Apex, the

industrial area of Benoni, was largely driven

by a long-term strategy to grow Hyundai’s

share in the South African commercial vehi-

cle market, to be more competitive and

to increase Hyundai’s investment in the

Future truck launchedindustry, we ensure that we do this with all our stakehold-

ers. As the most extensively updated brand yet, the Canter

offers newly developed drivetrains. Our FUSO designers

and engineers put everything they know about powertrain

technology and efficiency into the new Canter Lift.

“This has resulted not only in a vast improvement on

our previous models, but a vehicle that represents a new

approach to the technology of transporting goods by truck.”

FUSO’s new 4P10 twin-camshaft engine with four valves

per cylinder, turbocharged and intercooled four-cylinder die-

sel engine is coupled to an advanced DUONIC six-speed,

dual-clutch automated manual transmission – the only dual-

clutch transmission available in a commercial truck.

“Wherever the new Canter Lift will be utilised – refrigerated

delivery, bakery applications, butchery, general distribution,

courier logistics or any other operation – this vehicle has

been designed to provide tailor-made solutions.”

Hani concludes: “Our new Canter Lift offering reflects the

philosophy of our product values; very low operating costs,

reliability and functionality, which emphasise that trucks

should be built for maximum profitability potential.”

Assembly plant openscountry’s economy. The initial aim is to produce 50 units

a month, focusing specifically on the Hyundai HD65 and

HD72 trucks. At this stage, most of the trucks produced in

the plant will be distributed in the South African market, but

Hyundai Automotive SA is investigating options to export to

markets in the sub-Saharan region of Africa. Of the vehicles

assembled in the Benoni plant, 20% will be exported to neigh-

bouring Southern African countries such as Botswana and

Namibia as part of the immediate plans. Hyundai Automotive

SA established the factory by buying an existing plant from

Imperial Holdings as part of a R110 million investment in the

Commercial Vehicles division of Hyundai in South Africa.

Griffen concludes, “We are obviously at an early stage in the

development of the local operation, but we are already exam-

ining the expansion of locally produced parts for our assembly

line. We chose the premises in Benoni for two reasons: there

was an existing infrastructure and suitable buildings and

storage areas to run such a plant, and it is situated in the

economical hub of South Africa, Gauteng, where there is a big

demand for products such as our HD65 and HD72 trucks.”

An increase in local content of the vehicles that are assem-

bled in the plant will bring further savings, a more competitive

business model and create jobs in the local economy.


THE ASSEMBLY PLANT is ideally situated as

Isuzu Trucks’ business focus includes the SADC

region, and the other sub-Saharan regions of Africa.

Craig Uren, Isuzu Trucks South Africa chief opera-

tions officer says: “With our current plant location we have

access to a port, which makes transporting vehicles to the

regions we view as key growth nodes much easier.

“Our plant has undergone some radical changes in line

with our global leadership philosophies, which are intrinsic

to not only our brand but our heritage, too. One philosophy

that has been used successfully in the plant in establishing

optimal productivity is the use of Kaizen principles, which

have increased the capacity of our workforce. The truck plant

has undergone further changes since 2013 and Isuzu Trucks

South Africa has taken responsibility for the truck assembly

operation at Kempston Road.”

While productivity has been optimised, the labour force has

not been affected and no loss of employment has occurred.

Uren adds, “What we have managed to achieve at the

plant is decrease wasted time by increasing optimal working

conditions, which benefits our employees. The plant currently

employs 110 people, and with outputs increasing, this num-

ber is set to expand in the future. Our presence additionally

enhances the local economy by employing people from the

Eastern Cape; this trickle-down economic effect supple-

ments the local economy by creating more business and

job opportunities.”

Uren concludes: “As a business, Isuzu Trucks contributes

to the downstream activities within the economy as well as

the local economy, which forms a large base of our workforce

at the plant. This means that although Isuzu Trucks may be

in the vehicle industry, we contribute greatly to society. The

main mode of transport in South Africa is road freight, and

by ensuring that companies that purchase our vehicles are

sustainable we ensure that people are employed throughout

the supply chain, ranging from drivers to merchandisers, store

controllers, distributors, etc.”

The Kempston Road plant is over 44 000 m² and adheres to

the standards ISO 9001 and ISO 14000; it assembles the N,

F and FX series trucks and boasts an impressive safety and

assembly record.

Isuzu Trucks has its roots in Japan and dates back to the

early 1900s. The Kempston Road plant opened in 1929 and

currently has an output of 4 500 vehicles per annum, produc-

ing 20 units per day.

Refurbished Kempston Road plant revealedThe Eastern Cape is the home of Isuzu Trucks. The Eastern Cape is the home of Isuzu Trucks.

And journalists visiting the company’s Kempston And journalists visiting the company’s Kempston

Road plant in Port Elizabeth recently were Road plant in Port Elizabeth recently were

shown how, following a facelift, the plant has shown how, following a facelift, the plant has

both increased production and boosted morale both increased production and boosted morale

among employees.among employees.

COMMERCIAL VEHICLES

TOP The NPR being assembled at the refurbished at the Kempston Road plant in Port Elizabeth


INSURANCE

Transporter insurance – the hazard warnings

Being able to deliver high-quality logistic and supply chain solutions requires having more than just a one-size-fits-all approach. At Cargo Carriers we pride ourselves on being customer centric and while vertical specific we are always looking for challenges and opportunities in new industries and regions. We strive for the highest levels of reliability in all that we move. With each customer comes an individual set of safety, health, environmental and quality requirements, and our innovative and service orientated offering means that we are consistently able to provide for your specific needs.

Call us. We go the extra mile

We don’t talk logistics solutions, we walk it

Innovative supply chain solutions

T025

74

Logistics Achiever Awards 2013

TRANSPORTING GOODS throughout Africa is a mas-

sive industry – an indus-

try that has very specific

insurance requirements. All too often

transporters are unaware of the pit-

falls that could lead to their claims

being repudiated.

A recent study showed that in excess

of 60% of trucks are not roadwor-

thy – that translates into over 60% of

claims relating to these trucks being

repudiated or partial settlements being

made. For any transporter, that fig-

ure should be a massive wake-up

call. Road transporters and those who

utilise their services must take responsibility for the issues

that plague the industry, such as late loading and overload-

ing. Late loading puts the drivers under pressure, forcing

them to travel during unsafe hours (23:00 to 04:00) while

overloading causes inconvenient delays at the weighbridge

as goods are unpacked and repacked.

Incentivising drivers to arrive at destinations earlier than

scheduled encourages them to skip the necessary rest

breaks and drive faster to make up time. It is not uncommon

for drivers to work a straight 24-hour shift and the conse-

quences can be catastrophic.

No transporter can afford to be complacent when it comes

to insurance. Buying insurance based purely on lower pre-

miums or lower excess structures is the equivalent of tunnel

vision. Don’t take chances when it comes to having the right

insurance – there is simply too much riding on it.

By Steve CorneliusBy Steve Cornelius


FUEL

IN THE FUEL transport industry, conventional thinking

is that the only way innovation can ignite performance

is through SHEQ and high safety standards; tankers

can’t go faster and the cost of transport is what it

is. Sitanani Carriers rose to the challenge with two first-to-

market innovations.

The Sitanani fleet comprises newly designed, specialised

trailing equipment. The tankers each have six compart-

ments, each carrying a different type of fuel. Each compart-

ment is fitted with its own electronic dipstick measuring

system, which also includes a temperature compensation

function. This gives Sitanani Carriers the flexibility to use the

vehicle as a standard direct discharge vehicle or a metered

vehicle. It also combines the various advantages of sealed

parcel delivery (SPD) vehicles with the accuracy and security

of a metered unit. These advantages include an increased

flow rate of ±1 000 ℓ/min compared to conventional metered

flow rates of between 300 ℓ/min and 500 ℓ/min, reduced

probabilities of contaminations, reduced chance of overfills

(which pose a very large safety hazard) and discharge

flexibility. Because the tanker can discharge three compart-

ments simultaneously, each at higher flow rates, delivery

times are greatly improved, which in turn improves delivery

performance and capital utilisation.

Sitanani Carriers enquired with their tanker manufacturer

(GRW Engineering) for a tanker that would suit the needs

of the company in terms of improved theft monitoring,

reduced turnaround time, improved load factor, reduced

product contamination risk, improved

delivery quantity measurement accu-

racy and improved safety. GRW pro-

posed a solution that they believed

would address the various challenges

that Sitanani have encountered in their

operation. This technology is new to

South Africa and Sitanani was eager

to be part of the trials for these vehi-

cles and to be the first to test the new

tanker. To arrive at this solution, GRW

investigated and assessed all the vari-

ous types of equipment and measuring

and monitoring solutions available in

the global market and concluded that

the electronic dipstick system provided

Game-changing innovation in the fuel industry

the most visibility in terms of the fuel transport process. This

relates directly to better control over the integrity of the load.

GRW has partnered with BARTEC, who has developed this

dipstick measurement technology, and now have a sole sup-

ply agreement to distribute this technology locally.

With this new technology, every litre of fuel that is loaded

into each of the tanker compartments is measured by

temperature-compensated electronic dipstick meters on the

tanker itself during the loading process and can be com-

pared to the meter reading from the loading gantry to ensure

complete accuracy and verification.

The metering system on the tanker is also linked to a

GPRS modem that sends all the data concerned with load-

ing events, discharge events and valve position monitoring

to the administration office for processing and monitoring

by management personnel. Before this technology was

installed, the only proof of actual product volume loaded was

the load sheet provided by the third-party depot operator.

In the absence of a second independent verification, it was

very difficult to pinpoint a reason for loss of product.

“This is new technology on the market, and Sitanani

Carriers are the first to equip their vehicles with this tech-

nology locally,” says Piet Potgieter, technical manager at

Cargo Carriers. “This, along with the SPD tankers, means

that we can increase flexibility, decrease delivery time, and

reduce loss of product due to theft or fraud, increasing our

productivity,” says Tom le Roux, managing director of Caltex

Mpumalanga North Marketers.

Sitanani Carriers, an empowered joint venture of Cargo Carriers and Sitanani Carriers, an empowered joint venture of Cargo Carriers and

Caltex Mpumalanga North Marketers, is leading the fi eld and driven by Caltex Mpumalanga North Marketers, is leading the fi eld and driven by

technology allowing for higher levels of safety and productivity.technology allowing for higher levels of safety and productivity.

Cargo Carriers provides innovative fuel supply chain solutions

LOGISTICS

www.transportworldafrica.co.za www.3smags.co.za

African Borders HandbookEssential border information and country profiles covering 10 African countries and

46 border posts

Visit our online store: www.3smags.co.za to purchase a copy, or for more information contact Esther Le Roux on +27 (0)11 233 2600

The African Borders Handbook contains up-to-date, essential

information about the main border crossings in Africa.

The book is devided into 10 sections: Angola, Namibia,

Lesotho, Swaziland, Mozambique, Botswana, Zimbabwe,

Zambia, Malawi and Tanzania.

Each section contains a country profile with the major

macroeconomic indicators, strengths and weaknesses and

a risk assesment. There is a short transport profile of the

country, and then a page dedicated to each of the major

border posts containing information on opening and closing

times, accepted payment methods, contact details, travelling

information, compulsory vaccinations, required documents

and costs.

Get all the information you need for your cross border operations in one handy pdf e-book.

THE CONSTANT evolution of distribution chan-

nels and the sheer speed of change are forc-

ing companies to rethink their operating and

business models. It is imperative to be able to

provide distribution solutions that are agile, flexible and

responsive to counter such uncertainty and volatility. This

often entails thinking outside the box and engaging with

players across the supply chain. With the cost of trans-

portation making up over 60% of the total logistics cost in

South Africa, driven largely by the long distances travelled,

rising fuel and labour costs, deteriorating conditions of

road infrastructure and increasing congestion in major cit-

ies, transportation costs and cost-to-serve are focus areas

for all businesses.

However, the integration of the following elements is also

key to providing FMCG companies with the right transport

solution – planning, visibility, reliability, flexibility, safety and

environmental sustainability. With retailers also moving

towards a ‘less, more often’ approach, constant evaluation

of the distribution network, different transport modes and

equipment are important.

An example of equipment developed to specifically

optimise distribution for the FMCG and retail industry is

Volumax. Volumax is a smart solution that was designed

based on the Manhattan Skyline principle, which assists in

optimising payloads and space, reducing goods-in-transit

damages and enabling the transportation of a variety of

products on one vehicle.

FMCG transportFrancois van Rensburg from Barloworld Transport tells Francois van Rensburg from Barloworld Transport tells Simon FouldsSimon Foulds what what

FMCG operators should be doing to optimise their business operations.FMCG operators should be doing to optimise their business operations.



LOGISTICS

ANDREW EVANS, commercial marketing man-

ager at Shell, says: “Safety is at the core of eve-

rything we do at Shell. This competition is a great

way to recognise good drivers, help improve skills

across the industry and address road safety concerns on

South Africa’s roads.”

He adds that, when compared with other countries, there

is far less emphasis on the training and support of drivers in

South Africa. Shell endorses driver training and education to

raise their profile as an integral part of the transport business.

“At Shell, truck drivers are referred to as bulk vehicle opera-

tors for the simple fact that they are professionals and make

a huge contribution to the economy. When it comes to fleet

management, there tends to be a focus on vehicles and

technology, but less emphasis on the important role that

drivers play.”

The perception of drivers needs to change. Not only do

they represent a company’s brand to an external audience,

interact with customers and are central to road safety, they

also impact the bottom line when it comes to fuel economy.

“Fuel accounts for between 30% to 40% of a vehicle’s

operating expense, so drivers play a central role in managing

costs in the transport sector. Poor driving behaviour, such as

braking or accelerating abruptly, uses more fuel and drives

up costs.”

Shell estimates that a poorly trained driver can influence

operating costs by up to 60%. Passionate about innovation,

Shell also provides products such as Shell Diesel Extra, help-

ing customers to improve their efficiency. Shell Diesel Extra

contains a unique formulation designed to provide cleaner fuel

and extra kilometres at no extra cost. This means less energy

is used to run vehicles over their lifetime. Shell Diesel Extra also

contains an anti-foam component for easier and cleaner fill-up.

Tests conducted by Shell have also shown the fuel’s ability to

improve fuel economy up to 3% versus non-additised fuel.

Lubricants also contribute to fuel efficiency. They are in

contact with – and critical to – the effective operation and

longevity of almost all engine parts.

Long-standing technical relationships with engine manufac-

turers have also enabled Shell to assist key vehicle manufac-

turers to set new world records in truck fuel efficiency using

Shell Diesel Extra and Rimula R6 LME.

Shell Rimula R6 LME delivers exceptional wear protection

and engine piston cleanliness in the latest engines. It has

Recognising SA’s Truck Driver of the Year

been tested to help ensure long engine life and protection

throughout the oil maintenance interval.

Shell Rimula heavy-duty diesel engine oils provide protec-

tion in three critical areas: acid control, deposit control and

wear control. Its adaptive technology also provides reduced

viscosity for improved fuel economy.

“When drivers understand how using the right fuel and

lubricants can affect the performance of their vehicle, they are

better equipped to enhance fuel economy.”

A 360-degree approach is necessary when evaluating driv-

ers – annual evaluations of drivers should be conducted to

ensure their competency and their overall wellness, including

their ability and preparedness on the day of their journey.

Other factors fleet managers and transport owners should

consider include ensuring drivers have the correct information

about the route. This includes any potential risks that may

be faced, teaching drivers how to conduct thorough pre-trip

inspections, handling specific cargo, as well as interacting

with customers.

“While a company can have the best vehicles available on

the market in its fleet, the driver is central to how these are

driven and maintained as well as perceived by other road

users,” explains Evans.

During this competition, competitors will need to complete

an obstacle course that involves precision vehicle manoeu-

vres while in reverse and in forward motion. The competition

is governed by numerous safety rules both on and off the

circuit, and drivers are penalised accordingly for ignoring any

of these rules.

Leading fuel, oil and lubricants manufacturer and supplier Shell will this year co-sponsor Leading fuel, oil and lubricants manufacturer and supplier Shell will this year co-sponsor

the Scania Truck Driver of the Year competition. The competition is run every alternate the Scania Truck Driver of the Year competition. The competition is run every alternate

year to promote a professional driving culture in the transport sector.year to promote a professional driving culture in the transport sector.

It is about smart and safe driving in the competition


Dealing with peak transport Dealing with peak transport

operations in the fourth quarter from operations in the fourth quarter from

a logistics point of view is critical. a logistics point of view is critical.

Simon FouldsSimon Foulds speaks to American speaks to American

expert Carol Ptak, tapping into her expert Carol Ptak, tapping into her

international experience on dealing international experience on dealing

with this topic.with this topic.

THE MOST ESSENTIAL success factor is

to correctly position inventory in the supply

chain as well as understand how the speed in

manufacturing can be leveraged to respond

quickly to increased demand in the fourth quarter. This is

a critical part of the demand planning process. Successful

companies need to establish a complete supply chain

strategy that allows them to successfully sense and adapt

to changes in customer demand.

Ensuring forecast is accurateBy definition, forecasts are always in error. This is why fore-

casts typically are given with a range of error. Unfortunately,

planning systems cannot calculate a net requirements plan

Peak transport operations

LOGISTICS

Carol Ptak, management consultant


given a range. A specific number is required as demand.

Therefore detailed item level forecasts are irrelevant for

execution level planning.

It is more important to understand customer tolerance

time, market potential lead time, demand and supply varia-

bility, inventory leverage and flexibility, and critical resource

protection to establish a demand-driven supply chain.

Demand planning in the fourth quarterDemand planning is absolutely critical especially in the

higher volatility of the festive season. Demand planning is

a critical balancing act between capability and customer

demand to ensure that the company maximises its return

on capital employed.

Not having enough inventory means lost sales – pos-

sibly lost forever to a competitor. Having too much

inventory wastes critical resources, including capital. The

companies that can respond more quickly to unexpected

changes in demand are the companies that will be suc-

cessful in the long run. The issue at hand is not just one

quarter’s profits – it is the overall success of the company.

The least understood supply chain disciplineIt is the least understood because this discipline reaches

across planning, finance, sales, operations, marketing

and quality. For years, the discipline has focused on

the different objectives of these individual departments

instead of understanding that flow is the enabler of all

these primary functions.

George Plossl once said that the first law of supply chain

management is that all benefits will be directly related

to the speed of flow of materials and information. These

materials and information have to be relevant.

This discipline attempts to protect and promote flow,

which means that return on investment is maximised. All

benefits include:

• service is consistent and reliable when a system

flows well

• revenue is maximised and protected

• inventories are minimised

• expenses ancillary and/or unnecessary are minimised

• cash flow follows the rate of product flow to

market demand.

LOGISTICS


The companies that can respond more quickly to unexpected changes in demand are the companies that will be successful


LOGISTICS

Not having enough inventory means lost sales

Creating good demand plannersIt is key to develop not only the quantitative skills but also

the human resource skills necessary to work across the

enterprise. This role must be able to speak several ‘lan-

guages’ used in each of the different departments of plan-

ning, finance, sales, operations, marketing and quality.

The best demand planners have excellent intuition about

the company and its customers. This takes a high level of

education, training and experience.

Best demand forecasting methodsForecasting methods are best used for medium- and long-

range forecasting. The best methods are the ones where

the different departments collaborate to come to a consen-

sus on that strategic direction. Again, using forecasting for

execution-level requirements is the epitome of waste and

should be avoided.

Truck routes and timesTruck routes and times are a critical part of the planning

process. If the truck route allows for frequent replenish-

ment of product to the retailer then the retailer does not

need to carry extra inventory. Truck routes and times are

the enabler behind a truly demand-driven company.

A company in Columbia, USA, which manufactures

Disney merchandise, changed its truck capability to

smaller delivery vehicles and was able to better leverage

its plant’s quick response capability.

The results were:

• company cash flow before the project started was nega-

tive. It is positive now.

• sales in their retail chain increased in 12%, with over 40%

less inventory, ROI took a quantum leap

• average production lead time decreased from 45 days

to 14 days

• high movers get priority in production and are replen-

ished within days

• replenish high movers in 24 hours, starting from raw

materials, and therefore, eliminating the risk of overpro-

ducing slow movers

• sales of high movers in the December peak season of

2013 were nine times higher than the sales of high mov-

ers in the same period in 2012, due to fast replenishment

within the high season

• stock-outs in the retail shops decreased to 2%.

Involving drivers and warehouse personnelIt is critical to involve the drivers of the trucks because they

know best how to shorten response time and eliminate

waste. This is most critical in the fourth quarter for the

build-up to the festive season. There is little room for error.

Sometimes by changing something as simple as a routing

sequence or stop order, significant time can be saved.

Having an absolutely reliable delivery capability is essen-

tial for success in this highly volatile holiday season. Those

last few miles can be the most difficult and challenging.

SAVE WITH CONNECTED FLEETS

Rea lt ime connect ed f lee ts r educe overa l l runn ing costs

CAN YOU MONITOR , D IAGNOSE AND PREDICT

REALTIME MECHANICAL MALFUNCTIONS WITH YOUR

CURRENT FLEET MANAGEMENT SYSTEM?

AND

IS THIS SYSTEM SAVING YOU MONEY?

www.questektelematics.co.za

te lemat ics@questek .co .za

+27 11 706 0405

technology

Reduce fuel consumption by an average of 14%

Cut vehicle downtime by an average of 38%

Decrease the number of road accidents by up to 38%

Increase the lifetime of tyres, brake pads, clutches and gears with

savings of up to 50%

Dramatically reduce your carbon footprint


LOGISTICS

THIS PREDICTIVE diagnostic technology is

already saving commercial fleets around the world

thousands of rands per vehicle each month, and is

now available from Questek, a local leader in the

application of transport technology.

Darryl Erasmus of Questek Telematics explains, “The key to

our innovative new technology is not just the predictive ele-

ment but also the sophisticated recording and reporting ele-

ment. Telematics is only as good as its ‘back end’ and we’ve

incorporated a number of features which make it extremely

easy to use as a management tool.”

The ‘front end’ of the system is equally dynamic and effi-

cient. The key to its revolutionary nature is a driver and vehi-

cle management system which integrates seamlessly with

the CANbus network – an integral part of modern vehicles.

In a CAN (controlled area network) system, each compo-

nent in the network has its own processing and communica-

tion capabilities, with one data channel connecting all units,

instead of each component being wired directly to a central

control unit. Many sensors and actuators have their own

individual mini-control units and all the units – called nodes

– communicate with each other through a single pair of wires

known as a data bus.

This allows for the measurement and frequency of many

vehicle parameters: oil pressure and temperature, water

temperature and level, engine speed, road speed, brake

pressure and many more can be monitored in real time.

The second element is a module installed on the vehicle

and which measures GPS positioning, and also lateral and

longitudinal acceleration.

With so much information recorded and analysed using

proprietary algorithms, predictions can be made – for

example – whether a door is going to fail on a bus (based

on information such as the number of times it has opened

and closed, but also the cadence of its open/shut cycle and

any deviation from a standard cycle). It is also capable of

Future of connected fleets

recording whether a driver is freewheeling, over-revving a

cold engine, using the incorrect gear ratio, or pulling away

with too high a clutch load.

Adds Erasmus: “If it moves, we can count it. That can

include the number of rotations on the drum of a cement

mixer and the number of brake applications on a bus. As well

as predicting breakdowns, it allows for more accurate use

of resources: instead of replacing brake pads at scheduled

intervals, we can now calculate exactly when the life of the

service component will end.”

The technology of the system is constantly being devel-

oped and refined. Over 170 000 vehicles worldwide use it

and, in some case studies, fleets are saving R75 000 a year

in truck maintenance and R25 000 a year in car maintenance.

Companies are reporting a 50% reduction in accidents and

a 14% fuel saving. Arriva, the British bus company, is saving

one million litres of fuel a year.

As well as predicting a roadside breakdown (and associ-

ated delays, and issues such as reputational damage), it

can be used to alter driver behaviour. The Driver Manoeuvre

Awareness System combines visual and audible warnings

when an event (braking, turning, acceleration) exceeds a

predetermined threshold. This upskills drivers rather than

persecutes them, and is also able to prevent behaviour like

freewheeling in neutral, which is erroneously believed to be

beneficial in terms of fuel consumption.

Because the system operates live and passes information

back to a central hub via the global positioning satellites

network, the driver’s habits are equally ‘live’ and not just live

in terms of being a moving dot on a map, but giving a full

house of information. A real-time video dashboard is cre-

ated for each vehicle, which can be viewed at any time, and

sophisticated reports can be generated. The old adage that

prevention is better than cure remains as true as ever and,

with their predictive diagnostic abilities, Questek Telematics is

taking telematics where it hasn’t been before.

Darryl Erasmus of Questek Telematics

A new dimension is being added to the concept of ‘connected’ vehicles. Questek A new dimension is being added to the concept of ‘connected’ vehicles. Questek

Telematics, through its fl agship product, can warn a fl eet administrator when a vehicle is Telematics, through its fl agship product, can warn a fl eet administrator when a vehicle is

going to break down and identify why.going to break down and identify why.


LOGISTICS

GERRIE DE JONGE, executive: Africa Business

Unit, Imperial Managed Logistics, outlines to

Simon Foulds about how companies can turn

the challenges into opportunities.

Taking on this opportunity, importers and exporters are

however faced with the challenge of logistics into and out

of the regions on the relevant transport corridor, looking at

the end-to-end logistical requirements that need to be put

in place and the challenges that need to be overcome. The

successful capturing of market growth from an import and

export perspective in Africa is entirely dependent on the abil-

ity to overcome the logistical challenges on a daily basis and

creating a streamline end-to-end logistics solution.

In order to create a successful logistics solution, strategic

partnerships linked to continuous awareness of institutional

and commercial requirements are of essence. Further to this,

the respective logistics solution needs the flexibility to be able

to cater for economic-driven market fluctuations, making it

so much more exciting and challenging. Whether moving

resources out of Africa or bringing goods and services into its

Challenges and opportunities

The most exciting growth opportunity for South African manufacturers as The most exciting growth opportunity for South African manufacturers as

well as international companies importing into Africa, is the fast growth in the well as international companies importing into Africa, is the fast growth in the

African environment.African environment.

Africa’s growth depends on the quality of logistics solutions


burgeoning economies, Africa’s future growth and develop-

ment will depend on the quality of its infrastructure and the

efficiency of logistics solutions.

Some African countries are experiencing a rapid period of

growth, with imports rising to cater for the increase in the

demand for basic consumables, construction material and

industrial inputs; at the same time there is a fast-growing

demand for the vast commodities available on the African

continent. Africa has an abundance of mineral resources and

significant opportunities for agricultural expansion. Specific

countries linked to this with a direct opportunity for South

African companies to expand into are Namibia, Angola,

Zambia, the DRC, Mozambique and Tanzania.

South African growth is forecast at around 3% while the

countries mentioned above are expected to grow between

5% and 6%. The natural occurrence will be for South African

companies to look for growth opportunities in neighbouring

countries before stretching further into the rest of Africa. The

moment this happens, they are faced with the challenges of

end-to-end logistics solutions to move cargo into and out of

Southern Africa effectively.

The South African transportation and logistics industry

can play a vital role in Africa’s efforts to gear up and ensure

continuous and sustainable growth, which includes building

its infrastructure, enabling supply chains and distribution

networks, providing mobility, and ultimately helping create

jobs for its people. Each country in Southern Africa has

its own value proposition. There is a strong need for the

road, rail, air and port transport networks in some econo-

mies to be improved. Transport and logistics infrastructure

has the potential to unlock the economic growth value of

the continent.

While port, road and rail infrastructure is mostly depend-

ant on government investment, operations thereof and the

movement or cargo between critical points becomes an

opportunity for the private sector to create effective logistical

solutions that will meet the expectations of importers and

exporters. Southern Africa requires dependable logistics

services and skills, backed by established infrastructure and

world-class information technology systems, to sustain its

positive growth trajectory.

The key challenges faced by importers and exporters

requiring an effective end-to-end logistical solution are:

• numerous logistical service providers in the

end-to-end solution

• complex border- and country-specific legal requirements

• long transit times with no clear visibility of hold-ups

• language differences

• continued communication

• no integrated planning and data sharing between logisti-

cal service providers

• bi-directional flow mismatch increasing logistical costs.

Taking these challenges into account,

there is the opportunity to create

streamline end-to-end logistical solu-

tions for importers into and out of

Southern Africa, combining the roles

and critical points within the supply

chain to have one point of contact

and visibility.

In order to do this, one either has to

be able to provide services in all coun-

tries across all areas of the logistics net-

work, or partner up with suitable stra-

tegic partners in the specific countries

and area of logistical service required.

The latter being the more realistic one

at this point in time.

There is a need for an integrated,

single-point-of-contact solution with vis-

ibility and end-to-end data availability

to take the complexity away from the

customer, and hand it over to an end-

to-end logistics service provider.

Such an end-to-end solution will then

create visibility and the opportunity to

use available data to create business

intelligence platforms and continually

increase the efficiency of the logis-

tics network and lower the associated

logistics costs.

The result of such a one-point-of-

contact, end-to-end solution will be:

• full visibility over the logistics network

• single view of data available and bet-

ter decision-making

• effective combination of consolida-

tion, road transport, customs clearing

and shipping

• reduced transit time

• cost reduction

• safe and secure supply chains

• proactive management of supply

chain eventualities

• improved turnaround times through border posts.

For logistics to become a competitive weapon for South

Africa, change is required. We need to move from the mind-

set that logistics is merely the result of other market activity,

to that of giving logistics its due as a value creator. The same

can be said for logistical requirements in Southern Africa

where the time is here for more complex end-to-end supply

chains to be implemented in order to create value for industry

within Southern Africa and lower the cost of logistics, in turn

making Southern Africa more competitive.

LOGISTICS

CLOCKWISE FROM TOP LEFT The movement of cargo between critical points becomes an opportunity


THE STUDY BY the Monitoring Committee on

NTBs and the East African Community, called ‘The

Current Status of NTBs in East Africa’, states that

some partner states have not done much to elimi-

nate NTBs, which is hurting business growth.

The slow pace at which some of the member states are

removing non-tariff barriers has resulted into a profound effect,

with 39% of imports and exports paying a heavy price.

Tanzania still has the highest number of NTBs, followed by

Kenya, Uganda and Rwanda.

Traders in the region recently reported that member states

have added further NTBs, hindering regional trade, including

an increased number of police roadblocks along the Central

Corridor from Dar es Salaam to the Rusumo border.

Delays, theft at Dar es Salaam, Mombasa portsAccording to some traders, the theft of containers, especially

CORRIDORS

Truck drivers are often forced to park alongside the road

NTBs still a big problemTraders are losing money, a new survey has revealed, through non-tarrif barriers

(NTBs) along the Northern and Central corridors. ByBy Simon FouldsSimon Foulds

of minerals and fertilisers, is increasing at the Port of Dar

es Salaam.

The port is also not open 24 hours a day, contrary to what is

claimed by authorities in Tanzania, traders added.

Grace Mulinda, a clearing agent, tells TWA, “Most of the

theft takes place inside the port before containers are loaded.

So, it is important that measures are put in place to ensure

containers are sealed to minimise some of these risks. There

is also a need to increase surveillance cameras at the port.”

She added that sometimes they wait for many hours before

accessing containers, noting that there are also delays in

reimbursing container deposit fees, which is increasing the

cost of trade.

On average, a trader pays $4 000 for a 40-foot container as

container deposit.

Abdul Ndaru, managing director of TransAfrica Container

Transport, also tells TWA that port congestion is also forcing


CORRIDORS

A single customs territory should be established before the end of 2014

Northern and Central corridors. According to Hannington

Namara, the TradeMark East Africa country manager, the

introduction of an electronic single window system has

reduced the cost of doing trade in real time.

Eliminated NTBsThe report also states that the road toll in Tanzania has been

reduced from $500 to $152 per truck per trip, resulting into

a saving of up to $800 000 per year for transporters using

the Central Corridor. The report also indicated that the state

of road and ports infrastructure has significantly improved.

Weighbridges in Kenya have been reduced from six to four,

and in Tanzania from eight to seven, while police roadblocks

have been removed in Kenya and Uganda and reduced in

Tanzania, the report indicates.

truck drivers to park along the road resulting into payment of

penalties to the city council.

National park charges“Added to this, Rwandan trucks are being charged $300 for

passing through the national parks of Tanzania while our

Tanzanian counterparts only pay $50. This fee should be

harmonised to facilitate easy movement of goods and lower

the cost of doing business along the Central Corridor,”

states Ndara.

According to the EAC time-bound programme on NTBs,

lack of coordination among regional institutions involved

in the harmonisation of standards and existence of several

weighbridges along Northern (eight) and Central (seven) cor-

ridors are still hindering cross-border trade.

Efforts to address NTBs ongoingValentine Rugwabiza, the East African Community Affairs

Minister, adds that the regional common market protocol is

not yet a reality and that there are still a number of trade bar-

riers hindering free movement of labour and capital across

the region.

It is envisaged that the single customs territory along the

Central Corridor will be implemented before the end of 2014.

An SMS feedback line (2525) has been introduced in the

region so drivers can report NTBs that occur along the

PORTS

The Cape Town Container The Cape Town Container

Terminal plays a pivotal role in Terminal plays a pivotal role in

the regional economy, enjoying the regional economy, enjoying

intermodal transport networks intermodal transport networks

and situated about 20 km from and situated about 20 km from

Cape Town International Airport.Cape Town International Airport.

Terminal plays pivotal role in Cape economy

CAPE TOWN Container Terminal

(CTCT) operations

date back to 1977 –

facilitating movement of contain-

erised cargo, wine, fruit and white

goods to and from the Asian,

European, American, Australian

and growing East and West

African markets. The terminal has

since played a pivotal role for the

region and its economy as it is

now primarily viewed as a reefer

terminal, renowned for the export

of deciduous fruit, perishables

and frozen products.

Fruit and fresh produce are the

CTCT’s major export commodi-

ties and the port infrastructure

allows for this time-sensitive

cargo to leave inland termi-

nals/pack houses, and arrive

at their chosen destination in

peak condition.

The terminal is well connected

to its hinterland through extensive

rail and road networks.

Simon Foulds speaks to Velile

Dube, Transnet Port Terminals

general manager: Western Cape,

to find out more about the current

state of the CTCT.

What makes the Cape Town Terminals an asset

deciduous fruit, sub-tropical

fruit, vegetables, flora, grain

and oil seeds.

• The agricultural bulk capacity

is 400 000 tonnes, which is

double the break-bulk capacity

at 200 000 tonnes per annum.

• As a first port of call from

North America and Europe, it

has an advantage of transport-

ing high-value, time-sensitive

cargo as well as providing

just in time for export fruit

to Europe.

• The Multipurpose Terminal is

situated in the Duncan Dock

area of the harbour, and oper-

ates from E berth to K/L berth,

a quayside length of almost

1.8 km. It is directly involved in

the intermodal transfer (land to

sea and vice versa) of diverse

containerised, general and

bulk cargo as well as offering

related services.

• A recent expansion project

transformed South Africa’s

second largest container

terminal into a modern four-

berth facility that is able to

cater for larger vessels that

require deeper and wider

port entrances and berths.

Another forward-thinking fea-

ture includes high-productivity


to the South Africa itself? There are a number of reasons

that make Cape Town Terminals

stand out, including:

• Cape Town Terminals is divid-

ed into two facilities; namely:

containers and agricultural

bulk (multipurpose) facility. It

has the added advantage of a

large commodity mix, but the

terminal focuses on contain-

ers, general cargo, vehicles

and textiles, as well as meat,

fish, fruit, barley, wheat, maize,

soya, oats and fertiliser.

• The Cape Town Terminals’

geographical positioning

gives it a unique advantage

of being a first and last port

of call, which in turn allows

it to provide unique ser-

vices to the automotive and

agricultural industries.

• After Durban Container

Terminal, the Cape Town

Container Terminal is the sec-

ond largest container terminal

in South Africa.

• A major commodity of the

CTCT is fruit exports, which

constitutes 17% of the total

throughput of approximately

600 000, 20-foot equivalent

units (TEUs) per annum. These

include exotic fruit, citrus fruit,

container handling using faster

and more efficient cranes.

What are the operating hours of the port?• The port is open 24 hours a

day and operates 362 days

per year for continuous load-

ing and unloading except

for 1 January, 1 May and

25 December.

• Berthing, on the other hand,

occurs every day.

What is the size of the ships the Cape Town Terminals is able to accommodate? It has the following capacity:

• 7 500 ground slots

• key length of 1 132 m

• 15.5 m depth from 601 to 604

• can berth vessels of 14.2 m2

heavy laden

• 16.5 m depth at

entrance channel.

How many cranes are currently operational at the Cape Town Container Terminal and what types of cranes are operated in the port? Waterside Cranes:

• six super-post

Panamax Liebherr cranes

Velile Dube, Transnet Port Terminals general manager: Western Cape


• two mega-post Panamax

Liebherr cranes are sched-

uled to be in operation at the

beginning of November 2014,

therefore bringing the total

crane number up to eight.

Landside support:

• 28 RTGs (rubber-tyred

gantries)

• 12 straddle carriers

• two reach stackers

• one rail gantry

• six mt stackers.

How many movements take place per hour?• Cape Town Container Terminal

has an average 32 mph.

• Cape Town Terminal Waterfront

(MPT) has TEUs: 17.2 GCH

and Bulk: 236 TSWH.

What is the average waiting period for ships waiting to enter the port?Approximately 5.4 hours against

a target of 16 hours.

What sorts of volumes moves through the terminal annually?Approximately 800 000 TEUs

move through both the con-

tainer and break-bulk terminals

every year.

How many ships visit the port annually?Approximately 3 000 to 4 000

vessels visit the port annually.

What are the different types of cargo that move through the Cape Town Terminals? The Cape Town

Terminals handle predominantly

agricultural bulk such as fruit

and fresh produce, as well as

break-bulk commodities, which

range from chrome and steel,

to motor vehicle components,

chemicals, textiles, sugar,

fishing, bulk oil, cement, timber

and cement.

How many ships can be accommodated at any given time? Cape

Town Container Terminal

accommodates three alongside.

Cape Town Multipurpose termi-

nal has six berths available, and

the terminal can accommodate

two combi/container vessels,

two bulk vessels, and numerous

smaller foreign fishing vessels at

any one time.

What have been the latest infrastructure developments at the port?

The following are some of the

key highlights:

• The current capacity at the

Cape Town Container Terminal

is 900 000 TEUs subsequent

to an expansion project to the

value of R5.4 billion, which has

increased capacity by around

30%, from 700 000 TEUs.

• This expansion project trans-

formed South Africa’s second

largest container terminal into

a modern four-berth facility

able to cater for larger vessels

that require deeper and wider

port entrances and berths,

and high-productivity container

handling using faster and

more efficient cranes.

• It deepened all four berths

together with the Ben

Schoeman Basin to 15.5 m.

• There has been a reconfigura-

tion of the stack yard in an

effort to maximise space.

• Straddle carriers have been

replaced with 28 brand-new

Kalmar-manufactured rubber-

tyred gantry cranes that have

the capability to stack contain-

ers wider, deeper and higher.

• Refurbishment of the quay

wall to support the super-post

Panamax ship-to-shore cranes

has taken place.

• The port’s expansion project

has seen the replacement of

the previous ship-to-shore

cranes with eight Liebherr

super-post Panamax cranes

with twin-lift capability. Six of

these cranes are in place to

date with the additional two

currently being commissioned.

What future expansion plans are in the pipeline? The second phase of the

expansion project is well under

way; it will see more quay

works with the aim to increase

the terminal’s overall container

handling capacity by over 50%,

from 900 000 TEUs to 1.4 million

TEUs by 2016.

How optimistic are you about the growth of the port and why? Cape

Town port is seen as a major

economic gateway for Cape

Town as well as the rest of the

country. It is the oldest port

in South Africa, but despite

changes to its maritime culture

brought by air travel, it is still an

important point of entry. It is seen

as a key engine for economic

growth as part of the Transnet

Market Demand Strategy.

PORTS

PORTS

FOR THIS PROJECT, Burgan entered into

a joint venture with

R o t t e r d a m - b a s e d

VTTI, which operates, develops

and acquires refined petroleum

product and crude oil facilities

and energy infrastructure assets

on a global scale. Total capital

expenditure for the project is esti-

mated to be around R650 million.

What does this facility mean for the Western Cape? The project will have

many positive benefits for

South Africa, and in particular

the Western Cape. Notably,

it will significantly improve

security of fuel supply and

enhance flexibility. It will also

address transformation in the

downstream petroleum sector,

not only through HDI ownership

but providing access to storage

facilities for independent

wholesale licence holders, thus

lowering the barriers to entry and

efficiencies across the

value chain.

Who will in turn be renting space from Burgan? The

facility is open to all players

who market liquid fuels in Cape

Town. Burgan Cape Terminals

has already signed long-term

(covering a period of10 years)

contracts with both established

oil marketing companies and

independent entrants.

To date, more than 50% of

its storage capacity has been

filled. The terminal is owned and

operated by an independent

infrastructure development

company instead of a

marketing company and allows

for improved flexibility and

competition in the area.

Why did Burgan enter into a joint venture with VTTI and what are the advantages to South Africa? Besides the

Burgan Cape Terminals last year received a 20-year contract to develop and manage

fuel storage and distribution facilities at the Eastern Mole of Cape Town harbour.

Simon FouldsSimon Foulds speaks to Muziwandile Mseleku, CEO of Burgan Cape Terminals, to fi nd

out more about the development.

R650 million fuel storage facility


PORTS

fostering healthy competition

in the petroleum storage and

distribution market.

The terminal will enable

both independent and major

oil marketers to import, store

and distribute 50 ppm petrol

and 50 ppm diesel, which

are often in short supply.

The terminal will also provide

storage for clean fuel strategic

stock requirements. We

believe the import capacity is

critical considering the current

constraints in Cape Town.

In addition, a R650 million

investment was allocated for

the design and construction

of the facility over the first 18

to 22 months of development.

Approximately 110 to 130

contract jobs will be created in

the same period.

While the facility is not linked

to Chevron’s refinery in the

Western Cape, it will have the

ability to easily integrate into

the facility, thereby increasing

investment that VTTI is making

in expanding the country’s

clean fuel storage capacity,

VTTI brings exceptional skills

and its experience as a top

global storage terminal operator

to the project. VTTI operates,

develops and acquires refined

petroleum product and crude

oil facilities and related energy

infrastructure on a global

scale. We believe that this

project enables a partnership

of local knowledge and skills,

assisting transformation and

downstream expertise.

When will the fuel storage terminal be complete and who is building it? The project is currently

undergoing EIA and NERSA

permit application processes.

We anticipate the terminal to be

operational by July 2016. We

are in the process of releasing

a tender for the construction of

the project.


GOODS IN TRANSIT

GOODS IN TRANSIT ARE

highly susceptible to dam-

age by fire or storm, theft,

jettison or mishandling.

Cargo insurance is an essential means to

guard against serious financial loss and

in particular as the application of gen-

eral average losses grows and becomes

more commonplace.

A general average occurs when a vol-

untary sacrifice is made to safeguard the

vessel, cargo and/or crew from a common

peril, e.g. the jettison of cargo to lighten a

vessel in order to get to the closest port

to prevent a ship from sinking, and even

piracy. If the sacrifice is successful, all

parties contribute to the loss based on a

percentage share that their cargo value

bears to the full value of loss suffered, with

the maximum contribution not exceeding

the full value of their cargo.

Butt explains: “Let us take an example of cargo being jet-

tisoned to prevent a ship from sinking. When general average

loss occurs, the owner of the vessel will arrange for an aver-

age adjuster to assist with the evaluations of the cargo on

board, the value of the vessel as well as potential consequen-

tial risk to lives and the environment. The average adjuster will

then provide each cargo owner with an average guarantee or

bond to be signed and returned. This confirms the commit-

ment from each cargo owner that they accept responsibility

to pay their proportionate share of the collective cost of the

cargo that was sacrificed to save the ship and all the goods

and cargo still on board. General average only applies in the

case of a successful sacrifice.”

There have been instances of general average where the

proportionate share each cargo owner had to pay was equal

to 60% of the value of their cargo on board the affected ves-

sel, however, it has become more common that open-ended

average guarantees are required to be signed and returned

to average adjusters. For example, if a particular cargo owner

had cargo to the value of R10 million on board the affected

vessel, his contribution will be R6 million up to R10 million.

For any business without adequate marine insurance cover

in place, this kind of exposure can be potentially devastating.

If the cargo is not insured, the cargo will not be released

until the cargo owner posts a guarantee in the form of a cash

deposit, bank guarantee or bond. If the cargo is insured, the

insurance company will post the general average bond and

guarantee to meet the cargo owner’s contribution and facili-

tate release of the cargo.

“Consequential losses and trade disruptions are also a

huge risk factor. Salvage operations can take weeks and

even months, leaving companies without their cargo and

no sales activity. In the case of piracy, ships and cargo can

be held for months on end before any ransom negotiations

begin. This leaves businesses massively exposed to profit

loss risks if they are not insured properly.”

Given the quantum of risks that can befall valuable cargo

while in transit, it is essential for all ship and cargo owners to

make sure that they have spoken to a specialist advisor who

understands the full set of risks facing a marine business in

order to provide a comprehensive risk assessment.

Butt concludes, “This will assist not only in identifying what

type of cover is best suited for the business but will also

save the company from suffering significant potential losses,

especially in the event of a sacrifice being made and a gen-

eral average being declared.”

Cargo insurance vitalMaritime perils represent signifi cant fi nancial losses to cargo owners, without

the requisite marine insurance to protect their cargo. Simon FouldsSimon Foulds speaks to

Jeff ry Butt, marine manager at Aon South Africa, to fi nd out what needs to

be done to ensure your cargo is insured adequately.

Cargo insurance is vital to protect businesses from crippling profi t losses


TRAINING

EVEN AT OPERATIONAL level where candi-

dates need either a matric qualification, a diplo-

ma or a certificate, companies experienced a

27% shortage in 2013. In South Africa today, the

skills shortage is the fourth highest supply chain constraint.

This is according to the CSIR’s 10th Annual State of

Logistics Survey for South Africa (2013), which reports

that the lack of skilled personnel at all levels continues to

be a major concern in the performance of supply chain

management. It is a challenge that affects virtually every

one of South Africa’s key economic drivers. Industries such

as mining, manufacturing, retail and farming, for example,

would be incapacitated without these skills and services.

Every year, investment in the road,

rail, port and airport infrastructures

continues to be a high priority with

billions of rands invested in various

projects. In 2013, logistics costs were

estimated at R423 billion and, as a

percentage of transportable GDP, have

grown significantly over the last four

years, primarily due to fuel increases.

Developing efficiencies within end-

to-end supply chain integration is

now critical for strong financial per-

formance and mitigating the effect of

volatile fuel costs. Thus strategically,

investment in logistics and supply

chain management skills would be a

vital contributor to a profitable bot-

tom line.

In such a rapidly developing and

changing industry, skilled practition-

ers need not only the required hard

skills (traditionally taught academi-

cally) and soft skills, but also the work

experience. Especially if they want

Strategic logistics investment

to progress in the industry and use the benefits of such

change to their organisation’s advantage.

Soft skills are of such importance to the industry that in

surveys conducted by the University of Johannesburg, it

was found that practitioners place these skills, particularly

customer-focused management, well ahead of the required

hard skills. Students, however, prioritise such skills much

further down their lists. This discrepancy could be account-

ed for by the lack of real-world experience in the industry

on the student’s part. The problem is that it does however

create a gap between the needs of employers and the skills

pool available.

Such a gap results in many candidates – despite having

degrees – not being fully qualified for a position; particu-

larly as they look to move into more tactical and strategic

roles of supply chain management. It is at this juncture that

the industry runs the risk of losing skilled candidates to

other courses and even careers.

While many industry practitioners do recognise the need

for more skills and believe further qualifications like a

National Diploma or Bachelor of Business Administration

degree could help them, very few are able to take these

traditional routes through academia due to financial con-

straints and those of their working environment. For

instance, attending regularly scheduled classes can be

difficult for a practitioner with the type of work schedule

common in the logistics industry. The traditional distance

learning alternative is also not viable, as this does not offer

suitable support.

It is this gap that needs to be filled by more responsive

professional certifications, graduate training programmes

and vocational associations. While APICS’ Operations

Management Body of Knowledge Framework found that

the quality of tertiary degrees in the field were on par with

other BRIC countries and adequately taught the hard skills,

professional certifications and membership of professional

associations lagged behind and it is through these institu-

tions that a better understanding of the soft skills could

be developed.

Empirical evidence is showing that partnering with edu-

cation providers is a highly effective route for companies

seeking to build their skills capacity and improve their

overall performance.

Skills shortages continue to bedevil the logistics and supply chain industry, with

practitioners reporting shortages of up to 64% in positions that require a bachelor’s

degree. By Dr Mario Landman, head of the Institute of Logistics and Supply Chain ManagementBy Dr Mario Landman, head of the Institute of Logistics and Supply Chain Management

“In South Africa the skills shortage is the fourth highest supply chain constraint.” Dr Mario Landman, head of the Institute of Logistics and Supply

Chain Management


DRUGS

IN FACT, CERTAIN drugs are now cheaper than alco-

hol, which has led to a significant uptake in the number

of users. The dangers and liabilities of employees

under the influence of drugs can be far-reaching and,

as such, mandatory drug testing is an option that more and

more organisations across industry sectors are investigating.

However, the decision of whether to implement saliva or urine

testing can be a challenge. Each technology has its own pros

and cons, which need to be weighed against the industry

an organisation operates in and its environment, in order to

ensure that the best solution is implemented.

Drug testing has traditionally been regarded as a challenge

to implement from a legal perspective. It was also regarded

as slow, expensive, an invasion of privacy, and a host of other

perceived obstacles that have limited its use. However, given

the growing problem of drug abuse in South Africa and the

dire consequences on safety, performance and efficiency,

drug testing has never been more important. Improvements

in available technology have made drug testing easier and

more affordable than ever; this can assist organisations to

save lives and improve productivity and their bottom line.

When it comes to selecting equipment, there are a number

of different solutions available, divided into two main catego-

ries of urine and saliva testing. In addition to these, test kits

are also available to test solid substances, such as powders

or tablets, for the presence of drugs. Urine testing solutions

are generally low cost per test and are highly portable, which

makes them a cost-effective option for many industries. They

are also available in several different form factors depending

on budget and requirements.

Dip tests are strips that are dipped into a urine sample and

will display either one or two red lines indicating the presence

of drugs, similar to a pregnancy test. They are available as

a single- or multi-panel test, which means that they can be

used to test for a single specific drug or a range of com-

monly abused drugs. Another form factor is the cassette test,

which is a multi-drug test that requires the operator to use a

pipette to drop a urine sample into each window for testing.

Integrated cup tests are also available, which incorporate the

test panel into the sample cup. The cup tests are extremely

popular as they have additions such as thermometer strips

built in to check the urine is at body temperature. Small addi-

tions like this are very useful as they discourage attempts

to cheat the tests. Both of these tests will also use red lines

to indicate the presence of commonly abused drugs in

the sample.

Urine testing is not suitable for all applications, as certain

considerations must be taken into account. Due to the need

for privacy, females must be tested by females and males by

males. There must also be a private bathroom available to

obtain the urine sample. This is not always possible, however,

particularly in industries such as construction where bath-

room facilities are typically provided for by portable toilets.

For applications where urine testing is not possible, saliva

testing provides a convenient alternative.

Saliva testing uses a swab to produce results in a matter

of minutes, and can be used to screen for a panel of five

common illegal substances including heroine (nyaope),

cocaine, marijuana and methamphetamines, which include

substances such as tik, ecstasy and cat. There are no privacy

concerns with such testing, and a male or female tester can

test both male and female subjects. In addition, the person

may have emptied their bladder a short while before requiring

testing for drugs; this will lead to delays that you will not have

to deal with when using a saliva test.

Some saliva testing units can be very large and heavy and

are not particularly portable, so organisations need to ensure

they select a compact and easy-to-use system. Saliva testing

can also be more expensive per test than urine testing, so is

less viable in organisations and industries with small budgets

where many tests need to be performed on a frequent basis.

While saliva testing solutions have gained popularity

because of their less intrusive nature, they can be expen-

sive, and are not always the best possible solution. Urine

testing remains a useful option.

Organisations need to consider

the nature of the testing and the

cost involved, as well as the spe-

cific circumstances of their busi-

ness and industry. Partnering

with an expert service provider

who can assist with this decision

will ensure that the most appro-

priate equipment is supplied to

maximise return on investment

and optimise safety.

Testing drivers for drugsDrug abuse is a growing problem in South Africa, as the variety of drugs

available continues to increase and the cost of purchasing these drugs

decrease. By Rhys Evans, director of ALCO-SafeBy Rhys Evans, director of ALCO-Safe

Truck after accident due to driver on drugs


AIR CARGO

ALCO-Safe 26

Babcock DAF 16

Cargo Carriers 20

CompuClearing 30

Digicore OBC

FAW Trucks OFC

Inter Africa 33

Isuzu Trucks SA 4

Questek Group Holdings 28

Renault Trucks IBC

Scania South Africa IFC

Shell SA 3

Technica Learning Services 24

Index to advertisers

MEASURED BY FREIGHT tonne kilometres (FTK), vol-

umes rose 5.1% in August,

compared to August 2013.

Capacity grew at a slower pace of 3.4% from

the previous year. This is the second strong

month for cargo volumes in a row, following

the 6.1% year-on-year rise recorded in July.

Carriers in all regions reported an expansion

in volumes. Closely following improvements

in world trade and business activity, airlines

in the Middle East, North America and Asia

reported the strongest growth in the 5%

to 8% range. By comparison, demand in

Europe and Latin America lagged in the

1% to 1.5% range as a result of Brazilian

economic weakness and EU sanctions on

business with Russia, respectively.

Tony Tyler, IATA’s director general and CEO,

says, “The outlook for air cargo is clearly

getting better. However, there are some limit-

ing factors on the extent of potential gains.

Demand for air cargo is growing more slowly

than global economic activity. Businesses

are reported to have more confidence in the

future, but the list of political and economic

risks continues to moderate how that confidence

translates into actual activity.”

Regional analysis in depthAfrican airlines report-

ed the strongest

growth of air cargo

Air freight recovery strengthensThe International Air Transport Association (IATA) announced that August 2014 data

for global air freight markets showed continued robust growth in air cargo volumes.

demand with a 9.2% year-on-year expansion. Although

this is the second consecutive month of strong growth,

the volatility of African data, coupled with the slowdown in

key African economies such as South Africa, means it is

too soon to understand the extent to which this represents

a real and sustainable acceleration. Capacity grew 4.2%.

Asia Pacific carriers grew 6.3%, continuing the accel-

eration of recent months. Emerging Asian trade volumes

have expanded volumes solidly in June and July. A nota-

ble rise in Chinese export orders bodes well for future

demand growth. Capacity expanded 4.4%.

European airlines grew 1.4%. Economic activity within

the Eurozone continues to deteriorate, although the

latest data does show a moderate pick-up in imports

and exports. EU sanctions as a result of the Russia-

Ukraine crisis also continues to affect demand. Capacity

expanded 4.8%.

North American carriers increased air freight volumes

by a solid 5.5% compared to a year ago. A rebound

in business activity following the weakness in the first

quarter and positive underlying economic growth trends

should support stronger growth in the coming months.

Capacity fell 0.4%.

Middle Eastern carriers reported cargo growth of 7.8%,

a little below the year-to-date average of 9.6%. The

Middle East continues to expand strongly on its growing

links to developing markets, as well as diversifying into

important commodities such as perishables. Capacity

was up 6.0%.

Latin American airlines saw air cargo grow by a slug-

gish 1.1% compared to August 2013. The weakness

in Latin American freight volumes reflects declines in

regional trade activity and the anaemic performance of

the Brazilian economy. Capacity expanded 7.6%.

Carriers in all regions reported an expansion in volumes

Tony Tyler, IATA’s director general and CEO

Urgent delivery for 23 New Rd

Re-route to Long Ave to pick up load

Collect parcel from 45 Hope St

Accident at corner of Church and Main St

Deliver parcel to 5 Short St

Heavy traffic on N1 outbound

Collect parcel from 8 Albert St



Introducing On-the-Road from Ctrack, a complete in-vehicle system that features everything you need to ensure a more productive and efficient fleet. On-the-Road integrates task management with advanced navigation, messaging, optimal routing, PIN enabled driver identification, voice communication, driver behaviour feedback and even a front-facing camera – keeping your drivers informed, on the move and always visible.

Documents

TWA November/December 2014