twa aug/sep 2012
DESCRIPTION
TWA Aug/Sep 2012 editionTRANSCRIPT
Intraregional supply chain solu ons from producer to consumerIntraregional supply chain solu ons from producer to consumer
ENDORSED BY
Tripoli-Cape Town corridorLinking to Luanda
Supply chain logistics How green is your supply chain?
Locomotic frenzy Railing through Africa
Mercedes-Benz Axor
SCANIA's Driver of the Year Competition 2012 P8
ISSN 1684-7946 Aug/Sep 2012 Vol. 10 No. 4 / R35.00 incl. VAT
COMPANY EVENTSY
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
Product shown in photograph is for illustration purposes only, and is subject to stock availability.
Professional, Passionate, Dependable
24 Hour Roadside Assist 0800 008 800www.udtrucks.co.za
MSS
UD
WC
03
Trucks so dependablewe’ve had to extend our warranties
Fifty years in South Africa
Road to Your Success
Apart from saving money kilometre for kilometre, customers can also expect to increase their productivity and profi tability along the way.
For more information on the new warranty conditions, kindly visit www.udtrucks.co.za
Applicable to certain application and model variants, normal warranty conditions apply.
Intraregional supply chain solutions from producer to consumer
INSIDETHIS ISSUE
COVER STORYMercedes-Benz Axor
A truck that is custom-built and tested to ensure that it is tough enough
to handle African conditions. P4
consummeeerrrr
ORYYz Axor lt and ough P4P444
FESARTABarney’s comment 2
INSIGHTFracking in the Karoo 20
COMMERCIAL VEHICLESA bullish outlook 10Crossroads’ healthyw long distance relationship 16Understanding the customer’s needs 24Low cost of ownership 26Ensuring a smooth ride for in-town workhorses 28Ford Transit drives into SA 30
REGIONAL CORRIDOR FOCUSThe Cape to Luanda road corridor 32
SUPPLY CHAIN LOGISTICSA holistic route optimisation solution 36How green is your supply chain? 41Railing through Africa 44High transport costs worry East Africa shippers 47
PUBLIC INFRASTRUCTUREThe eThekwini public transport tip-top 48Index to advertisers 48
02 16 26
30 32 44
1TWA | Aug/Sep 2012
SCANIA's Driver of the Year Competition 2012 8
COMPANY EVENTSSSSSSSSSSSSSSSSSSSSSYYYYYYYYYYYYYYYYYYYYYYYYe
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCO
PANEL DISCUSSIONFleet management and tracking | How crucial is it to a business?
John Edmeston, Cartrack South Africa 12
Hein Jordt, Ctrack Fleet Management 14
Publisher Elizabeth Shorten
Associate publisher Ferdie Pieterse
Head of design Frédérick Danton
Senior designer Hayley Moore Mendelow
Contributors Brenda Watson, Barney Curtis,
Blake Wilkins, John Batwell, Russell Bennett
Senior sub-editor Claire Nozaic
Sub-editor Patience Gumbo
Production manager Antois-Leigh Botma
Production coordinator Jacqueline Modise
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
MEDIA 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: R270 (incl VAT)
ISSN 1684-7946 © Copyright. All rights reserved.
Editorial advisory board
• Barney Curtis, executive officer of FESARTA
• Garry Marshall, CEO, SA Express Parcel
Association
• Bill Cameron, director, Transport Research
Consultancy
• Graham Ross, retired road engineer
• Dr Andrew Shaw, principal transport analyst for
Development Bank of South Africa
• Captain Colin Jordaan, CEO and commissioner of
the Civil Aviation Authority
• Prof. Leon Raath, board member, Chartered
Institute of Logistics and Transport, South Africa
• Barlow Manilal, CEO, Automotive Industry
Development Centre and National President of
The Chartered Institute of Logistics & Transport
(CILTSA)
• Anthony Cole, COD, Concorde Maritime Academy.
All articles herein TWA are copyright-protected and may
not be reproduced either in whole or in part without
the prior written permission of the publisher. The views
of contributors do not necessarily reflect those of the
publishers.
The sustainability of corridor management institutions (CMIs) in East
and Southern Africa has always been difficult to achieve. Some years
ago, an agreement was reached to set up a forum where these institu-
tions and regional associations could share experiences and develop
best practices for corridors in the region. A workshop was subsequently arranged
by the Walvis Bay Corridor Group
(WBCG) from 2 to 4 July 2012 to dis-
cuss various sustainability models
and determine the best way forward.
Funded by the United Nations
Commission for Africa and hosted
by the Namibian Ministry of Works
and Transport, the workshop drew more than 30 delegates from the region.
The workshop occurred in a context where despite Africa’s positive export
growth rate, its share of world trade remained at a gloomy 3%. Although high
transaction costs and unfair world trade policies obviously have a negative
impact, the reason is more often than not as a result of logistical constraints.
In terms of the functions of the CMIs and the ports, Fesarta’s position is that the
CMIs’ sole purpose is to improve efficiencies along the corridors. As consumers
are ultimately the beneficiaries of these improvements, the funding of the CMIs
2 TWA | Aug/Sep 2012
by Barney Curtis, chief executive offi cer, FESARTA
A report on the Sustainable Corridor Management Institutions workshop, held in Walvis Bay from 2 to 4 July 2012
Sustainable corridor
The cost of border-crossing delays continues to constitute the biggest expense to logistics on the continent
(Above) There were only a few of these signs on the corridor
3
FESARTA COMMENT
management in focus
TWA | Aug/Sep 2012
should be through levies on the goods, paid at the ports.
Transport companies already pay road-use charges along
the corridors and, as such, should not be required to pay
additional levies to fund the CMIs.
Fesarta also maintains that the size of each CMI should
reflect traffic flow along a specific corridor. A corridor with
low traffic volumes should not have a large CMI, thus keep-
ing the user-pay levy lower so as not to impact on the cost
of goods to the consumer. It was also suggested that the
user-pay fee currently levied on goods being handled by
Walvis Bay be used to support the CMIs on the trans-
Kalahari, trans-Caprivi and trans-Cunene corridors and not
utilised to fund the offices of the WBCG.
Furthermore, we believe that the ports are responsible for
marketing their competiveness along the corridors and that
they should fund these activities.
Finally, a pan-African corridor management institution, an
idea originally suggested in 2005 and subsequently inves-
tigated by a consultant of the World Bank sub-Saharan
Africa Transport Policy Programme was discussed at the
workshop. The Port Management Association of Eastern
and Southern Africa recently decided to revive this con-
cept. However, we are of the opinion that there is not much
support for another such institution and an agreement
was reached that CMIs and regional organisations should
continue to network for the development of best practices.
Moving towards one-stop border postsThe cost of border-crossing delays continues to consti-
tute the biggest expense to logistics on the continent.
The creation of one-stop border posts will go a long way
in alleviating this situation. At present, both the trans-
Kalahari/Mamuno and Lebombo/Ressano Garcia are on
track to becoming one-stop border posts. With regards
to Lebombo/Ressano Garcia border post, the Maputo
Corridor Logistics Initiative has been calling for the imple-
mentation of a 24-hour one-stop facility since its inception.
Mozambique has already ratified the bilateral agreement
and it is currently in the process being ratified by the South
African parliament.
FESARTA’S POINT OF VIEWIn terms of the functions of the CMIs and the ports, FESARTA believes that:
• The ports were responsible for the marketing along the corridors. Ports needed to
market their competitiveness and fund these activities.
• The CMIs’ sole purpose was to improve the effi ciencies along the corridors. As the
consumers of the goods moved along the corridors were the benefi ciaries of the
improvements, the funding of the CMIs should be through levies on the goods, paid
at the ports.
• The size of the CMI should be commensurate with the traffi c fl ow along a corridor. A
low traffi c corridor should not have a large CMI. Thus, the user-pay levy should be kept
low and not impact on the cost of the goods to the consumer.
• Transporters pay road user charges for the use of the roads along the corridors. They
should not be required to pay additional levies to fund the CMIs.
• Fesarta believes that the user-pay fee currently being levied on goods handled by
Walvis Bay should be used to support the CMIs on the Trans-Kalahari, Trans-Caprivi
and Trans-Cunene corridors. They should not be used to fund the offi ces of the WBCG.
• It believed that the WBCG was, in fact, a misnomer; it should have been called the
Walvis Bay Marketing Company and be the marketing arm of the port.
• SADC noted that corridors were being clustered, i.e. the eastern (Lobito, Walvis Bay),
north-south and western (Dar, Mtwara, Nacala, Beira, Maputo) clusters.
(Above from left) The toll fees at the Swartruggens toll plaza; the famous Swakop dunes; an unusual sign in Namibia; the proposed drive-through at Skilpadshek border post
COVER STORY
It is not every day that a truck is It is not every day that a truck is custom-built and tested to near-custom-built and tested to near-
destruction to ensure that it is tough destruction to ensure that it is tough enough to handle African conditions. enough to handle African conditions.
No surprise then that the Axor No surprise then that the Axor is such a popular choice among is such a popular choice among
operators in the region.operators in the region.
BUILT for Africa
MERCEDES-BENZ AXOR
4 TWA | Aug/Sep 2012
The Axor was designed and manufactured by
Mercedes-Benz to fill the gap between the pre-
mium Actros tractors and the mostly rigid Atego
trucks. It was first introduced in South Africa in
2003 and has since recorded sales of more than 9 000
units, with the 3340S/33 model proving to be one of the
most popular.
“The Axor was originally developed for agricultural pur-
poses in Brazil and later customised for the African mar-
ket in terms of fuel compatibility, carrying capacity, sus-
pension, axle mass, cab design and model range. This
truck represents a successful global collaboration between
Daimler AG in Germany, the development centres in Brazil
and Turkey, and our local engineers in East London,”
says Christo Kleynhans, product manager at Mercedes-
Benz Trucks.
To ensure that the Axor is tough enough for Africa, test
rigs are subjected to conditions several times more extreme
than they will ever encounter on the road.
“Axor engines have to survive temperature, partial-load,
full-load and endurance tests equivalent to some 3.6 mil-
lion kilometres of driving. For the cab, the simulated crash
test results are confirmed in real-life pendulum impact tests
on the front end, roof-load and rear-panel pressure tests.
Even the seats have to be able to withstand extremely high
G-forces without being torn from their mountings during a
crash,” Kleynhans continues.
Going the extra mile, cleanly and cost-effectively With 15 truck tractor and freight carrier models in the Axor
stable, the range offers versatility to African operators and is
currently used in many industries, ranging from agriculture,
construction and building, timber and mining, to profes-
sional haulage.
Kleynhans adds that the Axor’s robust design is another
‘plus’ for the African market. The truck delivers impressive
performance in terms of reliability and longevity, displaying
an extraordinary ability to clock up the miles.
“The Axor has been designed to ensure that repairs can
be carried out as quickly as possible, so it spends less
time in the workshop and more on the road. Additional
benefits are the long service life of all major components
and operating fluids that do not need changing during
the vehicle lifetime. A range of parts, such as the rubber
molecular bearings, are now also completely mainte-
nance-free,” he says.
With its durable, economical and powerful six-cylinder
engine and special powertrain configuration, the Axor is
regarded as a very efficient truck. Add to this the Telligent
COVER STORY
TWA offers advertisers an ideal platform to ensure maximum exposure of their brand. Companies are afforded the opportunity of publishing a two-page cover story and a cover picture to promote their products to an appropriate audience. Please call Hanlie Fintelman on +27(0)12 463 2564 or e-mail her at [email protected] to secure your booking. 5TWA | Aug/Sep 2012
To ensure that the Axor is tough enough for Africa, test rigs are subjected to conditions several times more extreme than they will ever encounter on the road
engine management system, and you have a vehicle that
maintains power, while using less fuel and reducing the
amount of nitrogen oxide and particulate emissions.
“It constantly calculates the correct injection timing, the
optimal injection metering and the precise injection period
for a current driving situation at lightning speed, based on
the continuous input of relevant data such as air and boost
At the heart of the Axor’s safety lies an extremely powerful brake system fi tted as standard
AXOR 2628/45 USED FOR ROAD REHABILITATION
COVER STORY
rt of safety remely rake ed d
At the hearthe Axor’s slies an extrpowerful brsystem fi tteas standar
pressure as well
as engine, fuel
and charge air
t e m p e r a t u r e .
Outstanding effi-
ciency is assured
thanks to pump-
line-nozzle tech-
nology, the five-
or six-hole injec-
tion nozzles and an extremely high
injection pressure of up to 1 800 bar,”
says Kleynhans.
Less weight, more payloadA host of measures have been imple-
mented on the Axor 4x2 truck tractors
to reduce the weight wherever possible and
achieve the perfect balance between robust
design and high payload. Vehicle weight has
been reduced through, among others, the
new direct-drive transmission, the two-bel-
lows air suspension and the front-spoiler
bumpers, which are made from weight-
saving plastic.
No compromise on safety Safety features are designed to protect
both the driver and the vehicle. In addition
to offering comfortable custom-designed
cabs for long-distance and distribution
applications, the cab is constructed to offer
maximum protection. For instance, only flame-retard-
ant, splinter-proof materials with rounded corners and
edges are used in the interior and seatbelt tensioners
come as standard. Visibility
is enhanced through clear-
glass headlamps that illu-
minate a wide area of the
road, heated exterior mirrors
and wide-angle rear-view
mirrors mounted below the
main mirrors. The curved
design of the mirror glass
and the new front bumper
view mirrors further reduce
blind spots.
At the heart of the Axor’s
safety lies an extremely
powerful brake system fit-
ted as standard. Certain
models with an output of
260 kW/354 hp are fitted
with the Turbobrake, which
improves braking consid-
erably when driving down
steep hills. The Axor fit-
ted with a 295 kW/401 hp
engine comes standard with
a Voith retarder instead of
a Turbobrake.
On 20 July 2012, Mercedes-Benz South Africa
delivered a fl eet of fi ve Axor 2628/45 trucks
to Velocity Road Rehabilitation South Africa, a
subsidiary of Mvelaserve. The trucks have a very
sophisticated application designed to fi x potholes on
the country’s roads.
The Velocity will be introduced in Gauteng,
Mpumalanga, the North West and the Free State,
with plans to expand to the rest of the country and
into Africa.
“When we made the comparisons, we unanimously
agreed on a Mercedes-Benz truck. Because of
our plans to expand the company into neighbouring
countries, the overriding factor that we considered was
the support available from Mercedes-Benz,” said Frank
Cattich, MD of Velocity SA.
“The Axor is a comprehensible choice for Velocity
SA’s requirements, with its all-round features, including
robust design and long service intervals,” says
Cornel Oelofse, general manager of new commercial
vehicle sales at John William’s Commercial Vehicles
Bloemfontein. “The Axor qualifi es as the best-fi t
transport solution for the Velocity road repair machine –
a fully, self-contained unit that’s used to repair potholes
and road surface defects instantly and effectively.”
The trucks have been fi tted with high-velocity
technology that will change the face of road
maintenance in Southern Africa. The cutting-edge
technology, which has been developed since 1985
and implemented over nearly two decades in various
countries – including the UK with its severe winters
and wet conditions – has proven its worth as the fast,
economic alternative to conventional
road patching.
6 TWA | Aug/Sep 2012
Pre-registration is now open for Electra Mining Africa, the ultimate market place for all stakeholders involved in the mining, construction, industrial and power generation industries.
Visitors can expect to see leading local and international industry players in the packed halls and outside precincts. It’s the ideal place to view the latest in technology and equipment, innovative products and new supplies and services.
Experts will be on hand to give advice, live demonstrations will be happening daily and co-located conferences and workshops will add even greater value.
Electra Mining Africa is recognized as the second largest mining show in the world and the biggest trade exhibition in southern Africa with global recognition for its broad reach across mining, construction, industrial and power generation industries.
Electra Mining Africa and co-located Elenex Africa, Machine Tools Africa and Transport Expo runs from 10-14 September 2012 at the Expo Centre, Nasrec, Johannesburg, South Africa.
INTERNATIONAL MINING, INDUSTRIAL, CONSTRUCTION AND POWER GENERATION EXHIBITION SHOWCASES NEW INNOVATIONS, PRODUCTS,
SERVICES AND TECHNOLOGIES
T r a n s p o r t f o r t h e M i n i n g I n d u s t r y
THE BIGGEST M
ININ
G,
INDUSTRIA
L, MACHIN
E
TOOLS A
ND ELECTRICAL
TRADE SHOW IN
SOUTHERN AFRICA
co-locating in hall 9
10 - 1
4 September 2
012
9am - 5
pm daily
Sket
ch 4
691/
12
PRE-REGISTER NOW FOR FREE ENTRYIt’s simple – just complete the registration form at www.electramining.co.za
R15 per vehicle, per day for secure parking
Contact the Marketing Director at Specialised Exhibitions
Leatitia van [email protected]
+27 (0) 11 835 1565www.electramining.co.za
COMMERCIAL VEHICLES • Heavy
SCANIA
Driving any heavy commercial vehicle demands a high level of skill, regardless of its load. The average road user does not give this much thought when encountering such typical large-
scale vehicles. But with so many critical factors at stake, driver training is crucially important, and in this area, Scania is ahead of the rest, thanks to its biennual ‘Driver of the Year Competition’.
Held at the Gerotek Vehicle Testing Facility close to Hartbeestpoort Dam from 25 to 27 July, the event pitted the top 32 Scania drivers from
all over South Africa against each other. The drivers were selected from a total pool of 1 630 (new Scania vehicles pur-chased in the preceding time frame) and consisted of 18 bus and 14 truck drivers competing in their separate categories. With each new vehicle purchased, Scania provides training to the driver, which is then followed by testing and evaluation. Regional qualifying rounds are then held, culminating in the
final round. This process starts again straight after the event and runs for the next two years. The event is supported by the Road Traffic Management Corporation with sponsorships from Avis and Pick n Pay, ensuring the winners do not only walk away with the title and trophy, but also with prizes worth thousands of rand.
The first two days of the competition constituted a 50/50 split between training and evaluation and consist of three modules:• first aid• pre-trip inspection• handling track.
For the pre-trip inspection module, a vehicle with various ‘faults’ is provided and drivers have to identify and rectify these ‘faults’ before setting off. The challenging handling track, with steep inclines, negative camber roads, undulating surfaces, etc., was also tackled.
The drivers start off with 100 points in each module and lose points for faults and errors along the way. The top 10 drivers – five truck and five bus drivers – were then selected to compete in the finals, held on the last day, which involved a demanding track set up to test low-speed manoeuvring skills.
Nine different challenges were laid out for the competing drivers to be completed within a specific time limit. Watching these drivers guiding their massive vehicles through the vari-ous challenges with inch-perfect precision is a sight to behold. The skills shown by the finalists were nothing short of amazing.
Internationally, Scania also leads the way with the bien-nial European Young Driver competition, which takes place in Sweden this year. Further involvement from Scania this year will be at the World Driver’s Championship, to be hosted at Sun City in August, as sponsor and vehicle supplier. It has also entered an African team of Scania drivers selected from Tanzania, Lesotho, Botswana, Namibia and Malawi.
Congratulations have to go out to the winners of each cat-egory at the Gerotek competition, with a huge ‘congratulations’ for Scania, leading the way in promoting safe transportation of goods and people.
Skills shown by the nalists were nothing
short of amazing
12 TWA | Aug/Sep 2012
Thirty-two bus and truck drivers from across South Africa recently showed off their skills to try claim the title and trophy of ‘Driver of the Year’.
SCANIA Driver of the Year Competition 2012
8 TWA | Aug/Sep 2012
BUSBUSFrederick Hermanus
Hanlo de Villiers
Jaco Potgieter
Nathi Mnguni
Hendrik Mokonyane
TRUCKTRUCKRyno LeibrandSteven StroebelEbrahim MathobelaMartin BarnardCharles Leibrandt
MOST IMPROVEDMOST IMPROVED
BUSBUS – Tsakane Nurcleu
TRUCKTRUCK Abraham Steenkamp
Final results
Wheels in the rings
Roll the ball into the hole
pprreecciissiioonnpppp nn nn
ddrriivviinnggg
hhaalllleennggeecccchh eesssseess
Watch the gates!
Park on target
Height and width challenge
Aligning to petrol pump
A BULLISH OUTLOOK...
... For the rest of Commentators in the heavy vehicle sector in South Africa are bullish about prospects for the remainder of 2012, although there are some reservations about the rate of growth in 2013.
10 TWA | Aug/Sep 2012
COMMERCIAL VEHICLES • Heavy
2012 at leastoperator profitability by effectively lowering total cost of
ownership,” Dickson remarks.
Nico Vermeulen of NAAMSA says that the heavy truck
sector is in good shape “at least for the next six months.
Sales of [heavy] trucks are aligned with economic develop-
ment and if the government goes ahead with spending on
infrastructure, this sector will continue growing into 2013.”
Dr Casper Kruger, vice president of Hino South Africa,
takes the view that improved sales of heavy vehicles are
likely to continue through to December with unit sales
reaching the 27 500 to 28 000 mark.
Sales figures in 2013 should continue the pattern of
growth if the current level of GDP growth is maintained at 2
to 2.5% in 2013.
“In that light, the forecast of 28 000 units for the year to the
end of December shows this is a significant market. I don’t
think we will see that level of growth next year and the heavy
vehicle market sector will be impacted if the government
does not proceed with infrastructural development.”
He points out that vehicles bought during the halcyon
days of 2008, when sales of 34 659 were achieved, are now
coming up for replacement five years down the line.
“If prospects for growth are not good then operators could
wait another year before replacing these vehicles.”
Turning to the factors that impacted on heavy vehi-
cles sales to date this year, Kruger
mentions that road tanker companies
have experienced a fall-off in business
as a result of Transnet’s improved oil
pipeline capacity.
“If Transnet manages to improve its freight
rail service, we could see a drop in demand
for heavy vehicles carrying freight. But the
demand for vehicles to undertake second-
ary distribution will continue. However, the
big logistics companies have become reliant
on the predictability of the service provided by
truck operators. The model works for them and
they can control it.”
Hino, at 12.2%, is the second largest player
in the local market behind the range of brands
supplied and marketed by Mercedes-Benz.
The positive stance comes on the back of
figures released by the National Association
of Automobile Manufacturers of South Africa
(NAAMSA), which indicate a cumulative year-
to-date (to the end of July) market growth of 6% in sales
of heavy vehicles with gross vehicle mass ratings of more
than 3 500 kg.
Bruce Dickson, deputy CEO of Man South Africa, says the
sales figures indicate that “the market is not only resilient
but growing”. The market remains fiercely competitive and
extremely margin-sensitive. Vehicle suppliers that can offer
lower life cycle costs are gaining market share, both locally
and in sub-Saharan Africa, which buys much of its capital
equipment from South Africa.
“Direct foreign investment north of our borders is driving the
sales of new trucks assembled in South Africa to service min-
ing, agriculture and construction projects in many sub-Saha-
ran countries. While premium-class long-haul truck tractors
are popular in Africa, we are seeing the rise in popularity of
robust, easy-to-repair workhorses in various SADC countries.
“Locally, the road freight industry is maturing at a rapid
rate, driven by its ongoing integration into multinational sup-
ply chains. Truck fleet operators in South Africa are therefore
deploying trucks that not only comply with international
safety and environmental protection codes, but also boost
11TWA | Aug/Sep 2012
Improved sales of heavy vehicles are likely to continue through to December
What is your view on fleet manage-ment and track-
ing in relation to the South African and African con-text? Why is it considered a crucial aspect in relation to vehicle/fleet mainte-nance? JE Rising transport
and fuel costs, toll fees, vehicle
maintenance costs, hijackings
and the challenges around
managing driver behaviour are
placing enormous pressure on
fleet owners and companies to
find effective and sustainable
ways of managing fleets, driv-
ers and their driving habits, as
well as time management, risk
and variable maintenance, and
operating costs. Vehicle track-
ing with full telematics features
is an essential requirement to
achieve optimum fleet perfor-
mance. Truck hijackings and
the subsequent loss of valuable
cargos cost the economy and
insurance industry billions of rand
each year. Commercial trucks
and trailers are being hard hit
with their loads being quickly
redistributed into suspect retail
channels, while the empty trucks
are then usually headed for the
likes of Swaziland, Mozambique
and Malawi. The most popular
loads are consumer electronics,
IT equipment, alcohol, cigarettes
and groceries. The trailers are
removed from the horse and
the load can be offloaded into
nearby warehouses and ‘dodgy’
resale outlets in an alarmingly
short time. As we start heading
towards the end of the year, we
expect this trend to increase as
greater volumes of vehicles and
stock are on the road in prepara-
tion for the festive season and
syndicates take advantage of the
uptick in the movement of goods.
While the scenarios in Africa and
South Africa are very similar, they
can be even more challenging
across our borders given that the
cost of vehicle maintenance is
even higher and the road infra-
structures poorer.
What fleet management and/or tracking technol-ogy can you offer the transport industry, and what advice and after-sales support do you offer clients? Cartrack’s compre-
hensive range of web-based
fleet management solutions
provide for efficient and accurate
PANEL DISCUSSION
John Edmeston, MD, Cartrack South Africa
systems supporting their logistics
such as mapping and route plan-
ning. In such cases, the ability
to integrate the tracking system
data into the clients systems is
important and to provide a single
holistic solution. Cartrack’s range
of fleet extras includes:
• Communicator: provides
instantaneous communication
between management and
driver.
• Mi Fleet: a web-based software
application for consolidating all
your fleet management data,
including operating costs from
date of purchase up to termi-
nation, complying with govern-
ment and SARS requirements.
• CAN bus: a multiplexed wir-
ing system used to transfer on-
board vehicle information.
• Driver ID: necessary to place
responsibility on a driver for
fines, accidents, etc.
• Fuel monitoring: a hardwired
connection to the vehicle’s fuel
sender unit provides fuel read-
ing levels in real time and can
be used to detect fuel theft.
We also advise clients of the
vital importance of having real-
time tracking and response so
that any illegal activity, whether
as a result of driver behaviour or
criminal activity, can be picked
up immediately and acted upon.
Telematics is proving to be an
essential weapon in the fight
against hijackings, theft and
non-approved driver behaviour
– from digressions off approved
routes or speeding to extended
periods of standing still for no
valid reason.
Cartrack SA is a market-lead-
ing stolen vehicle recovery, fleet
management and telematics ser-
vice provider.
FLEET MANAGEMENT AND TRACKING
A focus on technology available, including unique systems and solutions available; after-sales support, the importance of an integrated solutions, and the overall view on fl eet management and tracking in relation to transportation and logistics.
reporting and control of costs,
allowing fleet owners to manage
driver behaviour as well as draw
accurate, real-time data for analy-
sis and improvement planning.
Cartrack’s fleet management sys-
tems provide the answers to the
‘how’ and ‘why’ questions that
allow for proactive planning and
intervention, rather than simply
monitoring distances travelled.
Cartrack also offers the option of
stolen vehicle recovery. With our
audited 95% stolen vehicle recov-
ery rate, we provide clients with a
unique recovery warranty, giving
cash back to clients in the unlike-
ly event of non-recovery. Vehicle
telematics, driver management,
speed management, fleet track-
ing, fuel management, driver
profiling, route planning and
geofencing are all readily avail-
able. And with a host of optional
extras, there’s no limit to the cost
saving and pro-
ductivity benefits
for clients. After-
sales services
include a fleet
management
call centre for
first line training
and user support
plus continual monitoring of unit
functionality to ensure tracking
devices are operating at all times.
A bureau service is also available
to provide a 24/7 monitoring and
reporting service.
What are the benefits in offering clients an integrat-ed/holistic solution? Clients
generally want a one-stop solu-
tion to their fleet management
and vehicle recovery services. In
many instances, large transport
companies will have existing
CARTRACK SOUTH AFRICA
How crucial is it to a business?
“Cartrack’s comprehensive range of web-based fl eet management solutions provide for effi cient and accurate reporting and control of costs”
12 TWA | Aug/Sep 2012
14 TWA | Aug/Sep 2012
What is your view on fleet man-agement and
tracking in relation to the South African and African context? Why is it considered a crucial aspect in relation to vehi-cle/fleet maintenance? HJ Ctrack’s fleet management
solutions provide information
for key management areas
such as security, HSE (health,
safety and environment), pro-
ductivity, operational manage-
ment and control, and asset
management. Transportation
and logistics require control
over costs, including reduction
in operational costs through
change in driver behaviour (less
abusive driving resulting in less
speeding, idling or unproduc-
tive kilometres), improvement
in productivity through better
planning resulting in improved
routes, quicker turnaround times,
more loads and increased prof-
its. Driving behaviour has a very
direct impact on operational
costs and impact on vehicle/
fleet maintenance and repairs.
Fleet management and tracking
is crucial to transportation and
logistics because there is no
other way to measure what the
driver is doing, how he is doing
it and what impact it will have on
the business. Fleet management
and tracking in South Africa is
in a mature state and the vari-
ous industries understand and
realise that it has become an
integral part of transportation
and logistics. Although many
African countries have fleet
management and tracking solu-
tions available, they do still face
certain challenges with regard to
GSM coverage, sourcing skilled
employees to implement, use
and benefit from the information
available from fleet management
and tracking solutions.
What fleet management and/or tracking technol-ogy can you offer the transport industry, and what advice and after-sales support do you offer clients? Ctrack provides vari-
ous fleet management and track-
ing solutions from our Ctrack
ICE (In Case of Emergency)
personal tracking device, Ctrack
Insure basic SVR (Stolen Vehicle
Recovery)
unit and
Ctrack Secure
advanced SVR
unit including
business and
private kilome-
tres recording
accepted by
SARS. Ctrack
Fleet Lite offers
basic fleet
management
and monitoring
functionality,
while Ctrack
Assist offers
cost-effective
comprehensive
fleet monitoring
functionalities
including driver
identification.
Ctrack’s Solo
optimum GPS/GSM fleet solution
is full featured, scalable and not
only provides the most compre-
hensive Ctrack information, but
also allows for the integration
with other third-party solutions
such as on-board weighing
systems, temperature monitor-
ing solutions, collision avoid-
ance systems and driver fatigue
monitoring solutions. It also
offers multiple data transmission
Ctrack offers options for recording of business and private kilometres in an electronic format acceptable to SARS
Hein Jordt, MD, Ctrack Fleet Management
DigiCore can increase prod-
uct production as and when
required. Providing an inte-
grated/holistic solution affords
clients the time to focus on the
benefits that can be realised
from the Ctrack management
information because they do not
have to manage different solu-
tions providers. The customers’
energy and focus can now be
on reducing costs, improving
operational efficiencies and
productivity/utilisation – thereby
maintaining and adhering to
customers’ service levels and
expectations. Many companies
have different systems to man-
age and track vehicles, manage
drivers, manage costs such
as fuel, tyres, batteries, toll,
licensing and traffic offense
management. Through Ctrack’s
integrated solutions, clients can
monitor and track vehicles and
drivers, make more informed
operational and financial deci-
sions, and view the impact
of vehicle and driver usage
through FleetConnect. Having
one integrated/holistic fleet
management and tracking solu-
tion allows customers to focus
on their core business and have
one less thing to worry about.
Ctrack offers a variety of tele-
matics solutions for both the
consumer and fleet industries.
Ctrack offers GPS/GSM stolen
vehicle recovery products for the
individual, including options for
recording of business and pri-
vate kilometres in an electronic
format acceptable to SARS to
sophisticated fleet monitor-
ing and management solutions
incorporating in-vehicle integra-
tion with navigation modules
allowing for tasking of mobile
personnel, voice and text com-
munication. Ctrack offers flexible
management software options
from server-based administra-
tive software to zero footprint
internet-based software, as well
as mobile software for smart
phones and tablets.
options such as GSM (2G and
3G), Wi-Fi, satellite and Tetra.
Ctrack’s telematics technol-
ogy incorporates information
received from a 3-axis acceler-
ometer such as harsh braking,
harsh acceleration, harsh bumps
and harsh cornering. Ctrack’s
DBI (Driver Behaviour Interface)
is an in-vehicle display unit that
provides real-time driver behav-
iour feedback on driving style in
the form of green, amber and
red lights. In the event that driv-
ing parameters are exceeded,
the lights change from green
to amber and eventually red,
and only by changing the driv-
ing behaviour positively will the
DBI return to green. Ctrack’s
FleetConnect solution is a man-
agement
information
system soft-
ware package
that consoli-
dates all cost-
ing aspects
of your fleet,
highlighting
any vari-
ances from
personal,
manufacturer
and industry
norms, and
provides vis-
ibility and
control on
vehicle asset
expenses.
What are the ben-efits in
offering clients an inte-grated/holistic solution?DigiCore owns the entire supply
chain from research and devel-
opment, assembly and manu-
facturing, sales and support
of all Ctrack product solutions.
Extensive industry knowledge
and expertise allows Ctrack
to provide customer-focused
solutions. As a result of owning
the Ctrack product life cycle,
CTRACK – a DigiCore Company
PANEL DISCUSSION
FLEET MANAGEMENT AND TRACKING How crucial is it to a business?
COMMERCIAL VEHICLES • Heavy
16 TWA | Aug/Sep 2012
FUEL SUPPLY
Crossroads covers over 1.3 million kilometres per year distributing fuel for Engen East London.
Crossroads, a prominent logistics solutions
provider, has won the tender to distribute fuel
from Engen East London to its constituents
across the Eastern Cape, Northern Cape and
Transkei. This contract involves the transporting of over
70 Ml of fuel per annum, traversing a distance of more than
1.3 million kilometres.
Around 60% of this three-year contract involves bridging
fuel from Engen to its constituents in the Northern Cape,
while the rest of the contract pertains to the distribution
of fuel to retailers (garages), generally in and around the
Transkei area.
When it comes to distributing fuel, there can be no s hort-
comings when standards are involved. The dedicated fleet,
containing nine vehicles, is regularly assessed to conform
to the highest safety standards. It is also absolutely impera-
tive that all drivers transporting fuel be accredited with dan-
gerous goods training and that trucks be equipped with the
right technology to handle such long distances.
“We conduct SHEQ audits quarterly through internal com-
mittees,” says Jeanne Kruger, contract manager of fuel
distribution at Crossroads. “Twice a year, external audits are
performed on management and operational systems, vehi-
cles and equip-
ment. These
audits ensure that
we maintain our
high standards
to comply with
the sustainability
requirements of
our customers.”
Crossroads has
a well-established
relationship with Engen, having been previously contracted
to bring fuel from Engen’s Durban depot.
“Our standards in the fuel sector are second to none,”
says Kruger. “Our safety, driver training and track record in
previous contracts with Engen all played a big role in win-
ning the tender.”
Crossroads’ healthy long-distance relationship
When it comes to distributing fuel, there can be no s hortcomings when standards are involved
SkyNet, which has been the courier behind elec-
tion logistics since the first democratic election in
1994, has been re-awarded the Independent Electoral
Commission (IEC) distribution contract through a con-
ventional open-tender process. The courier won the tender due to
its extensive national infrastructure, its proven track record and, of
course, its value offering.
There are an estimated 26 million eligible voters in South Africa
living in 23 000 different voting districts with 260 municipal electoral
offices. During high-peak periods, such as the national elections,
IEC logistics demands thousands of tonnes of voting materials
and months of man-hours. And, in some instances, it also involves
overseas voting.
This is a mammoth task as failure can have a detrimental impact
on the country. It requires a courier with a reputation for reliability
across the length and breadth of the land. With demand patterns
becoming increasingly volatile, the distribution systems of compa-
nies like SkyNet become more and more critical to customer and
channel partner satisfaction. And while the stakes may be higher
if something should go wrong at election time, every brand owner
faces the same challenges.
Many major courier and logistics companies competed for the
tender when the IEC put it out to the public. Important variables
like BBBEE scores, reputation for reliability, network strength and
the value proposition were all put to test.
“We have always been considered a tough match to our competi-
tion,” says Richard Ngubane of SkyNet. “We are really happy to be
able to serve the country again through the IEC tender. Our robust
network and vast infrastructure, is a perfect fit to their needs.”
And with overseas voting, being the world’s largest independently
owned distribution network means SkyNet reaches 1 115 hubs
through over 200 gateway cities.
The courier remains a responsible corporate citizen, strictly
adhering to the Labour Relations Act and the Administrative
Adjudication of Road Traffic Offences Act. Ensuring that all vehi-
cles are loaded correctly with the proper accreditation is crucial as
“it would be inconceivable to have IEC materials detained by the
authorities because of any non-compliance with road regulations
or accidents,” says Ngubane.
(Above) t3t T34T34T t#$t #$t#$t 3$t 3
SkyNet to take on elections again
17TWA | Aug/Sep 2012
ELECTION TENDER
SkyNet Worldwide Express has once again won the courier and express parcel tender for the IEC.
Engen Lubricants recently embarked on a mission to
prove the effectiveness of its leading diesel engine oil,
Dieselube 700 Super, by asking some of our key fl eet
customers to tell us of their experiences using our
products as well as feedback on their
supply relationship with Engen.
The result is a powerful set of
testimonials that prove how
important Engen is as a business
partner to our key customers and
the quality and dependability of our
products to the fl eet industry.
Dieselube 700 Super has proved
itself over the years to be one of the
fastest-growing lubricants brands
within the fl eet sector. Rugged,
dependable and capable, Engen
Dieselube 700 Super is a high-performance lubricant for
turbocharged diesel engines operating under high load.
It is trusted by operators across the country for either
long-haul or off-road applications and is the number one
diesel engine crankcase oil in the heavy-duty market.
Dieselube 700 Super has achieved this remarkable
achievement, because of its innovative technology.
This technology exceeds industry requirements of
leading North American, European and Japanese vehicle
manufacturers, which allows Dieselube 700 Super to meet
the needs of the most modern diesel engines. This unique
technology provides superior soot-control, which reduces
occurrences of both engine wear and oil viscosity increase.
It also provides excellent engine cleanliness.
Engen has many reports from the fi eld of vehicles completing
distances in excess of 1 600 000km before the engines are
fi rst opened whilst running on Dieselube 700 Super.
When subjected to rigorous fi eld testing against previous-
generation products, Dieselube 700 Super emerged
with fl ying colours – showing improvements over its
predecessors and competitors in all key areas.
The result is a lubricant fully capable of handling whatever
today’s heavy commercial industry can throw at it –
a lubricant that is in for the long haul.
Dieselube 700 Super.
For the long haul.
Engen Dieselube 700 Super – a high-performance lubricant for turbocharged diesel engines operating under high load
“With over 3 500 wheels on the road and a footprint
that stretches from Durban to the DRC, our industry
is a tough environment. Take sugar for instance.
It’s a dusty operation. Then there’s gas, fuel, steel,
chemicals – each one has its own set of unique
requirements. Service is downtime, so to speak.
Dieselube 700 Super delivers.”
Dieselube 700 Super.
For the long haul.
Piet PotgieterTechnical Manager
Cargo Carriers
“We are happy with what we look at when we open our engines.”
DRAF
TFCB
CAP
E TOW
N 10
0001
075C
T/E
INSIGHT
20 TWA | Aug/Sep 2012
FRACKING IN THE KAROO
Shell’s proposal for hydraulic fracturing or ‘fracking’ in the Karoo has evoked an angry response from local communities. Considering the demand for greener fuel technologies, the issue demands a rational and objective evaluation.
A viable alternative to oil?
INSIGHT
21TWA | Aug/Sep 2012
Economic impactIn South Africa, 95% of cargo is transported by truck.
South Africa’s energy minister, Dipuo Peters, recently
stated that the country has a crude oil reserve of just two
weeks and announced plans to increase the reserve,
which could become a priority.
The United States (US) and the European Union are
demanding an embargo of oil from Iran, which happens to
be South Africa’s primary supplier. If enforced, South Africa
could be facing a serious, two-fold problem:
World oil source compositions differ. If forced to comply
with the sanctions call, South Africa’s oil refineries may
have to carry out reconfigurations costing millions to wean
themselves off Iranian crude oil.
With Sasol only producing 28% of South Africa’s daily
fuel needs, this would lead to a fuel shortage. Running
out of fuel raises all sorts of problems and will have huge
economic implications for South Africa should it become
a reality.
A solution is neededIf load shedding continues to be a possible reality, and our
natural energy resources continue to deplete, alternative oil
sources need to be considered – and soon. From a more
sustainable point of view, biofuels and natural gases are
the most viable options, and Shell is already considering
the possibilities.
Fracking in the KarooFracking has become a dirty word in South Africa’s semi-
arid heartland – the Karoo. It involves pumping water and
chemicals into shale rock at enormous pressure to ‘crack’
open the shale and allow trapped gas to escape. Shell’s
proposal to develop a series of natural gas wells is being
opposed by an unprecedented public outcry. This culmi-
nated in the government placing a moratorium on shale
gas fracturing until a final decision is made.
What are the key concerns with fracking? In the US,
where 450 000 fracking wells have been sunk – and upon
which the South African anti-fracking lobby is basing its
arguments – the biggest problem has been the lack of
transparency. Another is unprofessional drilling methods
and the lack of adherence to legislated standards. Other
concerns raised include geological instability resulting in
seismic activity, groundwater pollution and fire hazards due
to leaking gas.
A recent report from the Royal Society and the Royal
Academy of Engineering says the technique is safe if firms
follow best practice and rules are enforced.
Tremors caused by the fracking process, such as the
event in Blackpool last year, measure a fairly minor 2.3 in
magnitude. The British Geological Survey can’t measure
below a magnitude of 2 in towns because of the traffic,
and in South Africa, mines cause far greater seismic distur-
bances than fracking could.
“The environmental risks of hydraulic fracturing for shale
gas can be safely managed, provided best practice is
observed and provided it is enforced through strong
regulation,” says the report’s chair, Prof Robert Mair from
Cambridge University.
An extensive collection of research reports and docu-
mentation regarding Shell’s proposal to frack the Karoo are
available on the company’s website.
GeologyIn 2004, as part of an academic geophysical study to
understand the origins of the Karoo Basin and the Cape
mountains, researchers located the Karoo shale layer
using magnetotelluric (MT) imaging. This technique places
a few electrodes in the ground and measures the interfer-
ence of electric currents through different rocks induced
by natural electric charges in the atmosphere.
To corroborate the MT findings, a second method, using
sound waves generated by small artificial explosions
(charges of 15 kg per site buried 12 m below the surface),
was used. This method monitors how fast the waves pass
through the rocks by using seismometers. The MT and
seismic experiments provided similar results, painting
a detailed picture and showing the depth variations in
the shale in a section that traverses the Karoo from the
DIAGRAM 1 Hydro-Morphotectonic Model of a Ring Complex (Chevalier et al, 2001)
ntly
wo
ve,
“The environmental risks of hydraulic fracturing for shale gas can be safely managed.” Prof Robert Mair from Cambridge University
(Opposite page) Fracking in the US is common practice in some areas, but in some instances has compromised safety
Drakensberg to the Western Cape, and in the region where
the shale gas extraction licences are pending.
It was established that Karoo shale is found at a depth
of 2 000 m in the east and up to 4 500 m in the west – a
perfect depth for tapping tight gas should it be present in
sufficient quantity.
GroundwaterIn a study carried out by consulting engineers SRK and con-
sulting hydrogeologists GWA, it was found that the shallow
groundwater layer, generally at depths of less than 300 m,
was well understood and documented. However, the deep-
er geological/hydrogeological layers are less understood
and further work, such as land and airborne geophysics
and exploration drilling would be required to obtain a better
understanding of
this environment.
N o n e t h e l e s s ,
some ground-
water is found at
depths of up to
1 000 m, signifi-
cantly more shal-
low than where the
shale gas would
be sourced.
Chemicals used
in the fracking
process included
hydrochloric acid,
biocides, fric-
tion reducers,
corrosion inhibi-
tors and gelling
agents. However,
the percentage of
chemicals in the
volume of water is
1%. With suitable
management and
necessary care,
problems can
be avoided.
“Gas or chemical contamination should not be a prob-
lem. The risk is very low, provided fracking takes place
at a depth of many hundreds of metres below the level
of aquifers and that the wells are properly constructed,”
Mair says.
TechnologyThe drilling of a gas well consists of several cycles running
casing (steel pipe for well construction) and cementing
the casing in place to ensure isolation. In each cycle, steel
casing is installed in sequentially smaller sizes inside the
previous installed casing string. The last cycle of the well
construction is well completion, which includes perforat-
ing the hydraulic fracturing section.
While drilling, fluid is circulated down the drill string and
up the space between the drill string and hole. This drill-
ing fluid serves to lubricate the drilling assembly, remove
the formation cuttings drilled, maintain pressure control of
the well and stabilise the hole being drilled. Drilling fluid is
generally a mixture of water, clays, fluid loss control addi-
tives, density control additives and viscosifiers. Drilling
fluid is a care-
fully monitored
and controlled
mixture designed
to achieve best
drilling results.
In total, 4 Mℓ of
brackish, grey
or saline water
is used to drill
one well.
The first hole to be drilled (see Diagram 1) is for install-
ing the conductor pipe. This is followed by the sequentially
deeper holes drilled to install the surface casing, interme-
diate casing (if necessary) and the production casing. It is
important to note that the shallow portions of the well have
multiple concentric strings of steel casing installed.
Horizontal wells are drilled vertically to a point and then
redirected to run horizontally within the shale layer. The
horizontal portion of the hole is usually drilled with a down-
hole motor. While drilling the horizontal section, the down-
hole motor, which operates using the hydraulic pressure of
the drilling fluid, turns the drill bit. Down-hole motors are
steerable, meaning they can be controlled from the surface
to stay within the shale.
Once the wellbore is ready, 10 Mℓ of water is pumped
down the well at high pressure. Exiting out the perforations
at the end of the well pipe, the water fractures the shale,
thereby releasing any gas in the fractured area. This gas
flows up the well to be stored in tanks and is then trans-
ported for further processing.
Summing upShell has stated that it wishes the Karoo fracking project to
be an ecological example of how to do hydraulic fracturing
properly and safely. And it can be done, according to Mair.
Given the looming fuel energy crisis, fracking is something
that should at least be considered and properly deter-
mined whether or not it is a viable, environment-friendly
oil alternative.
Depleting natural resources
There are seven billion people on planet Earth. By 2040, just 28 years from now, the population is expected to be nine billion,
or more. It is inevitable that there will be a substantial increase in demand for the world’s natural resources.
The BP Statistical Review of World Energy in June 2011 meas-ured total global oil at 188.8 Mt, from proved oil resources at the end of 2010. This is only enough oil for the next 46.2 years, should global production remain at the current rate, which it will not. Some experts predict that the oil price will escalate to US$225 (R1 848.31) per barrel by 2045, but given the simple rule of supply and demand, it could escalate from today’s US$98 per barrel to as much as US$687 per barrel.
A similar picture exists for natural gas, with 2010 measure-ments showing enough gas in proven reserves to meet 58.6 years of global production.
Of all the natural resources, coal as a fossil fuel has the largest reserves, but as China, India and other developing countries continue to increase their appetite for coal, demand could fi nally outstrip supply.
DIAGRAM 2 Shale gas extraction
Given the looming fuel energy crisis, fracking is something that should at least be considered
22 TWA | Aug/Sep 2012
INSIGHT
Designed for extra kilometres*
SHELL DIESEL EXTRA CAN HELP YOU:
1 Save fuel by up to 3%*
2 Reduce fall-off in engine performance
3 Prevent fuel system corrosion
4 Reduce foaming when refuelling
5 Lower CO2 emissions and smoke
* Compared to regular diesel without fuel economy formula. Savings may vary per truck/vehicle.
3644 DX Press Advert A4.indd 1 15/06/2012 10:20
when designing and customising a trailer. Base information
includes determining what the customer intends transporting
in or on the trailer.
“Important variables include the need to establish where the
customer will be operating the trailer – both the starting point
and the point of delivery – as well as identifying the standard
of the road infrastructure over which the trailer will be oper-
ating. All this data plays a role in the design process and
finalising the running gear that will be specified for the trailer.
“A customer who orders the manufacture of a trailer for use
outside South Africa may indicate he wishes to save costs by
having a standard as opposed to an ABS fitted. This is not
an option for trailers that are registered in South Africa and
will be used within the country’s borders as the fitting of ABS
is a legal requirement.”
Marques indicates that although transport operators have
the primary responsibility of ensuring that their drivers receive
training of an international standard, Paramount Trailers
ensures that both the customer and their drivers are properly
trained to operate more
complex trailers.
“We manufacture more
complex trailers such as
link side tippers and feed
bulkers. Additional train-
ing is required to ensure
the efficient operation
of this more specialised
equipment. We intro-
duced feed bulkers into
our trailer range last year
and have been satisfied
with their acceptance in
the market.
“Our trailer designs
are constantly being
updated to ensure that
the trailers we build are
lighter while maintain-
ing their overall strength
and robustness.”
Turning to challenges
being faced by local
manufacturers of com-
mercial trailers, he says the recruiting of qualified, high-
quality staff remains an issue in the industry as it does in
most sectors of the South Africa economy.
Attempts to grow business into Africa are being hampered
by the strong rand/dollar exchange rate. South African prod-
ucts are viewed as being relatively expensive, despite their
better quality, when compared with products manufactured
elsewhere, especially products from China.
The Alrode-based company manufactures a range of
trailers including, but not limited to, superlink (flat deck and
tautliner), tri-axles and double axles (flat deck, skeletal and
tautliner), tippers (side and rear end), as well as step decks,
sugar cane and slopers.
This is the view of
Warren Marques,
company spokes-
man for leading com-
mercial trailer manufacturer
Paramount Trailers.
“What makes the selection pro-
cess even more important is the
fact that the building of a com-
mercial trailer is a significant
investment. As with the purchase
of any product, it is important to
check variables such as quality,
warranties and after-sales service.
But additional key factors are the
reputation and track record of
the manufacturer and the efforts
taken by staff to build trust with the
potential customer.”
Marques advises potential cus-
tomers to avoid ‘fly-by-night’ trailer
builders that are sure to renege
on commitments should problems
arise with the product.
“We believe it is important to build a relationship with the
customer. There should be a willingness and ability to trust
the people with whom you are engaging. At Paramount
Trailers, the MD and CEO make every effort to know and meet
every customer. Paramount Trailers is now 15 years old and
the company’s first cus-
tomers are still purchas-
ing from it today.”
Turning to customer
needs, Marques says
Paramount Trailers
takes into considera-
tion a number of factors
Understanding the customer’s needsA crucial requirement in selecting a A crucial requirement in selecting a manufacturer of commercial trailers is to manufacturer of commercial trailers is to identify one that takes time to understand identify one that takes time to understand a potential customer’s needs, and has a potential customer’s needs, and has the knowledge and experience to provide the knowledge and experience to provide sound technical solutions.sound technical solutions.
TIP TOP TRAILERS
COMMERCIAL VEHICLES • Heavy
1 A step deck trailer manufactured by Paramount Trailers2 A simplifi ed schematic of a bulk road tanker designed and built by Paramount Trailers 3 A bulk tanker manufactured by Paramount Trailers
“At Paramount Trailers, the MD and CEO make every effort to know and meet every customer.” Warren Marques,
company spokesman, Paramount Trailers
1
2
3
24 TWA | Aug/Sep 2012
Low cost of ownership logged by hundreds of
heavy transport operators in harsh Southern Africa
conditions has resulted in BPW Axles growing
at a rate faster than that recorded by the
generic heavy-duty trailer market in South Africa.
Andre Cilliers, MD of BPW Axles says the com-
pany’s total market share is now 30% by volume,
a substantial increase from the 5%, 14 years ago.
Although the company’s axles and air suspen-
sion products are premium priced, relative to the
majority of such products in the market, they are
covered by a three-year unlimited kilometre
warranty that includes bearings on the hub.
“The warranty is one of the major points of dif-
ference between our products and those offered
by other companies. Even so, in the European
market our parent company in Germany pro-
vides a five-year warranty on these products.”
Cilliers points out that harsher conditions in
Africa, coupled with often poor conditions of the road net-
work in Southern Africa, resulted in the African market being
classified as ‘off-road’ territory by the holding company.
“Our more robust designs carry a weight penalty because
we source product capable of handling the road conditions
Off ering a three-year unlimited kilometre Off ering a three-year unlimited kilometre warranty, covering bearings and grease, warranty, covering bearings and grease, has helped BPW Axles to substantially has helped BPW Axles to substantially increase its market volume.increase its market volume.
LOW COST OF OWNERSHIP
A key element in successful market penetration
COMMERCIAL VEHICLES • Heavy
and dealing with maintenance issues. There are transport
fleets with maintenance at world-class levels and there are
fleets that are poorly maintained.
“The longevity of axle bearings is directly related to the
preload on the bearing. The nut on a BPW Axles unit has a
built in torque limiter to ensure that it can’t be over-tightened
and therefore the bearing always runs at optimum load. Our
warranty includes the bearing and grease, and is made pos-
sible by the fitting of the unique ECO unit, which comprises
superior seals, BPW long-life Eco-Li grease
and the torque limiter.”
He states that design is a key ele-
ment in enabling the achievement
of the warranty in the local market.
The axle beams offered locally
are a strengthened version of
the European equivalent and are
therefore thicker. The suspension
trailing arm is the heavy-duty version
and the lightweight air suspension
is a heavier alternative. In addi-
tion, spring seats are welded in
place of U-bolts to accommo-
date maintenance oversights.
“Although our products are
heavier than the BPW Axles
equivalent in Europe, they are still
lighter than the local equivalent given that the
majority of locally assembled axles and air suspensions are
sourced from China.”
Apart from attempting to eliminate the need to replace
certain parts, other elements of the BPW Axles approach
are the combination of advanced design and use of
high-quality materials to extend the lifespan of products
as far as possible, as well as the incorporation of prod-
uct designs that make the process of part replacement
as quick as possible.
“We convert what are traditionally regarded as wear-
ing parts and develop them to the point where they
are non-wearing parts. This development has been
achieved with the S camshaft on our braking system,
which has been designed to last the life of a vehicle.
Our brake drums are designed to have a long life while
our brake linings last longer and have been designed for
quick replacement.”
The Johannesburg-based company imports axles and
suspension parts from parent company BPW Bergische
Achsen Kommanditgesellschaft in Germany. Fabrication
and assembly to customer order are undertaken at the
company’s factory on the Reef.
Andre Cilliers, MD of BPW Axles, in the factory south of Johannesburg, where the company operates an assembly line
Drum and disc brake
26 TWA | Aug/Sep 2012
getru
BPW Axles (Pty) Ltd • PO Box 82545 • Southdale 2135 • Johannesburg Tel (011) 681-3300 • (011) 680-1443 • Fax (011) 680-1829E-mail: [email protected] • Website: www.bpw.co.za
BPW • THE QUALITY FACTOR
The success of Isuzu’s automated manual trans-
mission (AMT) has been so well received that
fleet owners with heavy commercial vehicle needs
are now able to choose from four F-Series AMT
model derivatives.
With AMT, Isuzu Trucks have brought to market a truck
that retains performance, durability and a fuel economy usu-
ally associated with manual transmission. This easy-to-drive
truck ensures that the driver is able to focus completely on
the road.
Based on a manual transmission, AMT models have no
clutch pedal in the cab and only the gearshift lever, accel-
erator pedal and brake pedal are used. The trucks offer
advanced technologies as wet-type multiple-disc clutch and
fluid coupling, which have been introduced to achieve an
easy-drive system suitable for commercial vehicles. In addi-
tion, use of an electromagnetic solenoid valve-type gear shift
unit enables both computer-controlled automated mode and
manual mode of transmission.
“This feature allows the driver to drive the truck in automated
or manual mode without having to operate a clutch. Over
the course of a manual transmission truck’s life, especially
in high-traffic inner-city delivery applications, the clutch may
need to be replaced between five to eight times, depending
on the model and operating conditions. This comes at a sub-
stantial cost; with the AMT option this cost is saved,” explains
Anton du Plessis, Isuzu Truck South Africa’s national sales
and distribution manager.
Conservative value estimates showed a cost saving of
more than R40 000 in parts and labour for lifetime clutch
replacements over 500 000 km in stop-go metro distribu-
tion operations. This amount does not include opportunity
costs for vehicle downtime, which is estimated at 10 days
over the total distance, or towing and replacement trucks.
The total potential savings over four to five years is in excess
of R60 000.
“Since we’ve introduced the AMT offering, many fleets have
standardised on these models. Sales figures support this
trend, with more than 50% of models (where both manual and
AMT are available) being sold with the AMT option,” he says.
AMT is now also available in selected Isuzu F-Series mod-
els, giving fleet owners the same advantages and benefits of
the N-Series range.
The F-Series AMT has a six-speed transmission, with fea-
tures such as hillside assist for pull-off on a steep gradient
when the truck is at full GVM. This feature is available in the
FRR 500, FSR 800, FTR 850 and the FSR 750 AMT Crew Cab,
which seats seven passengers in the spacious cab, mak-
ing it ideal for applications that require crew to accompany
the load.
Three years ago, Isuzu Trucks was the fi rst OEM to introduce automated manual transmission to selected N-Series models. Since then, its proven performance, durability and fuel economy, as well as signifi cant cost savings on parts and maintenance have led to many fl eets standardising on the AMT off ering.
AUTOMATED MANUAL TRANSMISSION
COMMERCIAL VEHICLES • Light
Ensuring a smooth ride for in-town workhorses
No driver operated clutch
28 TWA | Aug/Sep 2012
The latest, modern versions offer all-new, effi cient drive trains
In Europe, the Ford Transit light commercial vehicle has become a staple in its market segment and is set to become a new benchmark in South Africa early in 2013.
TAKING ON COMPETITIVE MARKETS
Ford Transit drives into SA
COMMERCIAL VEHICLES • Light
First introduced in 1965, the Ford Transit van has
been the best-selling light-commercial vehicle in
the European market for 40 years.
According to Ford, the Transit has become
known for certain characteristics, including an ‘impres-
sive’ load capacity and cost-effective maintenance and
running costs.
With the intention of starting off on the right foot, the South
African arm of this American automotive giant will not be
importing original, older Transit models. Instead, the company
will introduce its new seventh generation 1 t Transit Custom
and Tourneo Custom, which were first unveiled at the 2012
C o m m e r c i a l
Vehicle Show in
Birmingham, UK.
With features
based on the
original, highly
s u c c e s s f u l
‘tried-and-trusted design recipe’, the latest, modern versions
offer all-new, efficient drive trains, a further driver-optimised
interior and styling cues from the pervading Kinect Design
styling philosophy.
The Transit Custom delivers a multi-faceted workhorse,
while the Tourneo is suited to the transportation of people and
can seat up to eight passengers.
While the Transit Custom’s 1 t cargo capacity is easily
accessible through the double rear doors, it is also far more
secure than the typical bakkie load bed, making it ideal for
professionals needing to transport their equipment.
The car-like driving experience makes the vehicle easy to
operate and ideal for the cut-and-thrust of city environments,
while the cockpit clearly takes its inspiration from the latest-
generation Ford Focus, ensuring that occupants are comfort-
able and alert. It also offers a variety of safety features.
The model is likely to face a difficult time entering the
South African environment as it will be competing directly
with established rivals from VW (Transporter) and Mercedes
30 TWA | Aug/Sep 2012
COMMERCIAL VEHICLES • Light
(Vito), among others, as well as challenging the South
African multi-purpose bakkie. Although Ford products
continue to be perceived as both reliable and affordable,
the brand will need to prove these strengths quickly if
the Transit is to become an African success story in an
environment that is traditionally much more challenging
than Europe or the US.
An aggressive pricing strategy, which Ford is normal-
ly quite adept at, could also help, as there is space in
the market for a sound product that undercuts certain
competitors by a noticeable margin. If the company
strikes the right price/performance balance with its
new Transit, the local industry can expect to see
this well-established brand
name and its light vehicle
range becoming a regu-
lar sight on South Africa’s
city streets.
The new Transit Custom
and Tourneo Custom for
South Africa will be built
at the Ford Otosan plant
in Kocaeli, Turkey.
Despite being a European sales leader for four decades, the Transit faces a battle entering South Africa with the market’s penchant for more versatile 1 t bakkies
The Tripoli-Cape Town corridor is one such example and today remains far from finished.
This is rather surprising considering the project was first started by the United Nations
Economic Commission for Africa during the apartheid era.
It is largely the critical sections extending above the Republic of Congo that remain
problematic – primarily due to the lack of any road at all.
The southern section of the corridor, detailed below, links Cape Town to Luanda, on Angola’s
northern coastline, and equates to almost 3 000 km of mostly useable tarmac. This portion of the
corridor is an essential link for the continent’s SADC region in particular, and has received consider-
able attention in recent years.
The route• Cape Province
Beginning on the N7 leading out of Cape Town, the road passes through the high-density hub in
REGIONAL CORRIDOR FOCUS
Direct link to The need to upgrade and develop the many trans-African highways for interregional trade across Africa remains a necessity for the economic growth of the continent. In many instances, they are in such terrible states of disrepair that they cannot be used.
THE CAPE TO LUANDA ROAD CORRIDOR
32 TWA | Aug/Sep 2012
33TWA | Aug/Sep 2012
REGIONAL CORRIDOR FOCUS
LuandaMalmesbury, the heart of the Swartland grain-belt, before
proceeding in a northerly direction through Clanwilliam and
Springbok, and ultimately culminating at the Vioolsdrift bor-
der crossing into Namibia.
Between Melkbos on the outskirts of Cape Town and
Piekenierskloof Pass, completed in 1958, the road is gener-
ally in good condition and consists of a single carriageway
with a paved hard shoulder in case of emergencies.
From this point to the first Namibian border crossing, the
shoulder becomes gravel. A manual stop-go section was
in effect on the N7 due to roadworks on the Piekenierskloof
Pass itself, although these were scheduled to be completed
by the end of June 2012.
• Namibia
This border post is very efficient, open 24 hours a day and
generally features a waiting time of no more than a day.
Thanks to the critical nature of this road artery for cross-
border trade, there is a strong focus on efficiency at the
border post. Both the towns of Vioolsdrif and Noordoewer
on the Namibian side of the crossing are tiny, despite the
importance of this corridor for African trade. Sufficient petrol
and diesel are available in both towns to serve the significant
volumes of transport operators plying this corridor, and there
are numerous camps provided near the border post for driv-
ers to rest while the paperwork is processed.
The B1 route across Namibia is some 1 541 km in total
and is paved for the entire length. There are numerous filling
stations and rest stops along the way, the highlight of which
might be the enormous B1 City Mall development just outside
Windhoek, almost exactly halfway through the Namibian sec-
tion of the route.
“The road in Namibia, and the border crossing at Vioolsdrif,
has come a long way over the past two or three years. Today
you can travel this corridor without compromising drivers’
safety, even in the rainy seasons. The border generally clears
the freight very quickly with minimal corruption problems. The
B1 fulfils all the fuel and rest-stop requirements drivers might
need,” says Toelie Coetzee, Kamsberg Transport MD. The
company provides refrigerated transport services in Southern
Africa, including South Africa, Namibia, Angola, Botswana
and Zambia.
Between Windhoek and the border post at Oshikango, the
superior road quality of the B1 continues, with the corridor
turning north-east at Otjiwarongo to skirt the Etosha National
Park before heading north-west once more on the final run
34 TWA | Aug/Sep 2012
towards the Oshikango
border post. Although
driving at night can be
hazardous due to roam-
ing nocturnal wildlife,
there are very few other
dangers that may cause
any delays.
• Angola
The crossing at
Oshikango (the border
post between Namibia
and Angola) will take
another two or three days.
Hopefully, the recent
Angola-South Africa
development agreement
will lead to improving this time delay. The route remains fair
up till Xangongo, where drivers will have to negotiate a low
bridge over the Kunene River that floods regularly in the rainy
season. A new bridge is currently under construction to allevi-
ate this potential delay.
Over the next 100 km, to Chitembo, the road surface is very
poor and is usually impassable in rainy conditions. Speed on
this section needs to be reduced to no more than 20 km/h
to negotiate it safely. Beyond Chitembo, the tarred surface
resumes once more and continues all the way to Cacula.
Past Quilengues there is a treacherous mountain pass that
is too dangerous for truck drivers to navigate in wet condi-
tions. Beyond this, the road surface reverts once more to dirt,
until approximately 100 km outside of Benguela, where the
tarred surface resumes.
Radio communication links with supervisors are essential
during the journey between the border post and Benguela,
as there is only occasional cellular reception, mostly at major
centres. Satellite tracking is also not entirely reliable through
the region, increasing the risk of loads being lost forever to
criminal activity.
Finally, just before Sumbe, there is another slippery moun-
tain pass to delay drivers and their loads. This is the last envi-
ronmental barrier before finally rolling into Luanda to unload
cargo. This portion of the corridor, as with Angola’s northern
links, desperately needs infrastructure attention for this trade
corridor to flourish.
Angola – a growing concernCoetzee is cautionary: “To be honest, we don’t run any freight
as far as Angola anymore. I won’t even send my contractors
into the region at the moment, due to increasing instances of
corruption, which make journeys in the country unfeasible.
Locals team up with law-enforcement officials against foreign
haulage operations. One favourite scam involves a local
essentially parking an old banger in front of the large trucks
and then claiming the trucker drove into them. The police will
invariably be called and the upshot will be a US$1 000 (about
R 8 215) spot fine, payable to the police and then shared with
the so-called claimant – else the driver faces the threat of jail
time, with the load then open to looting while the
operator is incarcerated. This thinly disguised
bribery is not covered by any insurance policy
either, so these illicit costs come straight out of
the profit the trip should generate.”
He continues: “We’ve also had all sorts of
trouble at the actual point of delivery in Angola,
because there’s often no admin on that side. The
owner of the business simply claims that the load
is ‘bad’, meaning it is often scrapped. To combat
this, we need agents present or it is a costly trip
for me to go and check the load personally to
refute incorrect claims. Over and above this,
the rates we are being offered along this cor-
ridor have decreased recently, delivering much
smaller profits, meaning even one such incident
decreases our profits even further, making the
road corridor wholly unsuitable to sustainable
freight business models.”
The road surface is very poor and is usually impassable in rainy conditions
(Below) Kunene river bridge
REGIONAL CORRIDOR FOCUS
SUPPLY CHAIN LOGISTICS
36 TWA | Aug/Sep 2012
A HOLISTIC ROUTE OPTIMISATION SOLUTION
An unquestionable
SUPPLY CHAIN LOGISTICS
37TWA | Aug/Sep 2012
The necessity to tighten logistics operation costs has always been a key pillar of any successful transport business. Today it isn’t a competitive edge – it is an essential survival tool.
The solution or method to increase profits and
boost growth is not to increase customer service
rates, but rather invest in increased operational
efficiency, which in turn drives down other asso-
ciated costs.
With the additional post-financial crisis survival weight,
it has become critical to deliver a lean business model.
Thanks to the continued evolution of technology, levels
of operational efficiency have been unlocked, as has the
opportunity to optimise the supply chain – an affordable
and viable investment.
Continuous monitoringTracy Cheetham, business development manager at
Pathfinder Solutions, references Israeli physicist-turned-
business-management guru, Eliyahu M Goldratt: “People
have a tendency to think that the more complex a problem,
the more complex the solution should be to resolve it –
when in fact the opposite is true. And I think in this industry
that goes hand-in-hand with a mindset about the expense
of a solution, when often it is not the case,” says Cheetham.
The late Goldratt was the originator of critical chain pro-
ject management (CCPM), a
process that has been proven
since its introduction in 1997
to achieve the completion of
projects 10 to 50% faster and/
or more cost-effectively than
more dated best-practices
such as CPM or Programme
Evaluation and Review
Technique. Much of the suc-
cess of the model is attributed
to the final stage of CCPM,
namely continued monitoring
of results, which delivers sub-
stantial optimisation benefits.
Cheetham continues: “It is
difficult to achieve a positive
outcome on costs and address
customer service requirements at
the same time, but software that allows you to configure
your business rules into optimisation and route planning
applications enables organisations to achieve this.”
Route optimisation softwareIn the LogiX Fleet Management environment that
Pathfinder builds its solutions on, the customer sets
weightings for the variables involved. So for instance,
customer service can be weighted higher than shortest
distance, or the requirement for a full truck load before
setting off. The system then runs the scenario and within
seconds presents the bottom-line result of the route plan
generated, which is then further tweaked and optimised
until the required balance is achieved.
“There is no guess-work involved and you can run a vari-
ety of scenarios extremely rapidly. But this is only the start
necessity
With additional post-fi nancial crisis survival weight, it is critical to deliver a lean business model
Optimise: Route | Load | Vehicle | Customer | Fleet ProfileKnow and manage your Carbon FootPrint
Manage: Vehicles | People | Ships | Containers | Assets
Cloud based track and trace SaaS Solution
Educate: ASTL GLA | ASTL PLS | ASTL CTL | Classes | Self-Study
Transport and Logistics Certifications
| www.astl.org.za www.pathfindersolutions.co.za
Email: [email protected]
Tel: 072 235 5755
www.pathfindersolutions.co.za
of the process. Once you’ve
established the business rules
based on these priorities, your
daily schedules are run accord-
ingly; as business evolves and
changes your customer profiles
might also change. With these
applications you should never
be stuck to a single set of busi-
ness rules. It is wise to re-evaluate periodically, and run
a few more scenarios to see whether your business rules
need to be tweaked. It is with this flexible mode that the
real long-term advantages of route planning and optimisa-
tion are realised.”
Working togetherMarius Maré, director of consulting services at Ovation,
looks even more holistically at the elements of the supply
chain. “To give an example, if I plan and optimise a route,
then I may use my own fleet to do that or I may want to use
external logistics agents to handle some of the transport for
me. Such agents also look after rate management, accounts
payable and receivable, and all the other back-end admin-
istration, and only then execute resultant plan. Execution
against the plan is as important as plan itself.”
It is in this execution phase that
Ovation’s PlanForge engine comes
into its own. Rather than a stand-
alone software solution installed at
the customer premise, the Ovation
environment is a software-as-a-ser-
vice or cloud-based solution, which
provides different critical informa-
tion dashboards via a standard web
browser to all the parties that make
up the supply chain. Customers are
billed per load managed, eliminating
a significant upfront cost, thereby
delivering savings immediately with no lengthy return on
investment period.
Naturally the solution also fully integrates with installed
ERP systems.
Maré continues: “However, it is one thing to have
these systems in place, and yet another thing entirely to
make them practically applicable, particularly in a South
African context. For me, the key to genuine optimisa-
tion is to get all the participants in the supply chain to
work together with a common objective – a continuous
improvement approach.
If I plan a multi-drop, fully optimised route, and the vehi-
cle arrives at the first store on this route and gets delayed
due to various different issues, then the execution of that
optimised plan starts falling apart right away.”
Like Cheetham, Maré is also adamant that route
optimisation yields the most positive approach in the
longer-term scenario.
UltimatelyTechnology solutions that include comprehensive route
planning and optimisation elements have become essen-
tial, but having these solutions in place is no longer
enough. A holistic, end-to-end optimisation solution is the
real answer.
It is one thing to have these systems in place, and another to make them applicable
38 TWA | Aug/Sep 2012
SUPPLY CHAIN LOGISTICS
d i r e c t o r yCONFERENCESA
Surname:
Name:
Designation:
Company:
Type of business:
Address: Code:
Tel: Fax:
Cell:
E-mail:
Subscriber VAT Reg. No:
Order #:
EFT Deposit: Bank details Nedbank Branch code: 128405 Acc. number: 1284129934
Acc. type: current Acc. name: 3S MEDIA
Please use Ref: #:
Mastercard Visa
Expiry date: /
Credit Card Number
Last 3 digits on back of card:
Debit order – Please contact Accounts on 011 233 2600 to organise
I have read the terms and conditions below and I agree to abide by themAuthorizing signature: Date: Contact person for payments: E-mail:
Terms & Conditions
to follow.
subscriptions.
and cancelled if not paid by the date.
Fax or e-mail proof of payment to activate your subscription.
MEDIA
No.4 5th Avenue, Rivonia 2191 PO Box 92026, Norwood 2117
Tel: +27 (0)11 233 2600Share Call: 086 003 3300 Fax: +27 (0)11 234-7274/5www.3smedia.co.za
SUBSCRIBE
SUBSCRIPTION SALES
SUPPLY CHAIN LOGISTICS
41TWA | Aug/Sep 2012
How green is your supply chain?The transport and logistics sector is one of the most visible supply-chain contributors to global climate change. In Africa, road is the dominating mode of transport, resulting in an urgent need to curb the environmental impact of this sector. But is this possible?
FUEL FOR THOUGHT
Simply looking at rising fuel costs and pollu-
tion, the need to address transport issues in
Africa is compelling. Because transport is the
fastest growing carbon dioxide (CO2)-emitting
sector, with South Africa the largest contributor on the conti-
nent, calls for significant transformation are gaining strength.
Fortunately, there is plenty of room to iron out inefficiencies
and reduce waste in transport and logistics. There are a
number of green logistics solutions available, some of which
have already been successfully implemented by some South
African operators.
Route planning and biofuelsReducing so-called empty kilometres, which relates to
proper transport planning, is a start. When additional and
unnecessary kilometres are ‘clocked up’, there is an eco-
nomic impact as a result of additional
fuel costs, as well as an environmen-
tal impact because of increased CO2
emissions. According to a CSIR study
on the secondary distribution network
of a South African grocery retailer,
extra non-value adding kilometres
accounted for more than R6.5 million
in additional costs and 941 t of ‘extra’
carbon pollution.
Other opportunities to reduce waste in the logistics arena
include redesigning distribution networks, optimising back-
hauls and routes, as well as consolidating shipments.
But complete modal shifts away from
Investing in green assets is another ‘route’ that can reduce environmental footprints
road transport to ‘cleaner’ options are not always feasi-
ble in Africa due to infrastructure constraints. However,
intermodal, collaborative logistics solutions, such as
incorporating rail to move heavy-duty commodities like
coal or iron-ore, should be brought back into the transport
equation where possible.
As a result of soaring prices in the world oil market
over the past few decades, there is a a need to move
away from oil and use alternative energy sources such
as biofuels, which would cut oil demand, provide energy
security and prevent climate change. Biofuel is a step
in the right direction and some
companies are incorporating it in
their fuel mix. However, the negative
aspect to this is the possible threat
to food security.
Investing in green assetsInvesting in green assets is another
‘route’ that can reduce environmen-
tal footprints. Acquiring vehicles to
ensure minimum emission stand-
ards, such as advanced Euro 3
engines, offers a viable option to
ensure green compliance. Then
there are alternatives like nitrogen-
inflated tyres, zero-emission refrig-
eration equipment and responsible
disposal of oil and tyres to consider.
Materials handlingThis industry sector is also starting
to take enterprising steps towards
‘greening’ its operations by limiting
energy consumption. Distribution
centres are becoming more eco-
friendly with solar panels being
used to generate a significant por-
tion of the power requirement, which
is particularly suitable to the African
climate and mitigates the power
interruptions that have become part
of the landscape in recent years. Furthermore, natural
light is being optimised in warehouse design, motion sen-
sors are being installed to automatically activate lights
and air conditioners only when areas are in use, and
conveyers are being upgraded to low-voltage options
or operated based on demand. Even run-off water from
warehouse roofs is stored for, among other uses, vehicle
washing.
The viability?The perception persists that transforming into a green
logistics operation will reduce profit margins because of
the costs associated with acquiring eco-friendly technology
and adopting similar processes and practices. However,
research and case studies of actual business implementa-
tion are proving that by reducing energy consumption and
waste, companies are increasing value and saving money,
while also improving efficiency and performance.
Methods for green transport and logistics are numerous,
and returns on ‘green investment’ are tangible. Additionally,
Vision 2025 aims to have South Africa at a 30% clean energy
level by 2025. There is a global impetus towards creating
solutions to sustain business, the planet and its people,
meaning greening isn’t going away.
Green logistics has become more than just another indus-
try buzzword. It has become a business necessity, where
companies that fail to implement innovative, cost-cutting,
energy-saving and ultimately sustainable business prac-
tices will eventually lose their competitive edge.
Transport is the fastest growing carbon dioxide-emitting sector, with South Africa the largest contributor on the continent
42 TWA | Aug/Sep 2012
SUPPLY CHAIN LOGISTICS
OUR
VALU
E CH
AIN
PART
NERS
WWW.F
REIG
HTLIN
ER.C
O.Z
A
The
New
Gen
erat
ion
Frei
ghtli
ner
Argo
sy d
oesn
’t di
sapp
oint
. Whe
n it
com
es t
o m
aint
enan
ce a
nd d
urab
ility
, the
Arg
osy
ensu
res
less
dow
ntim
e. W
hich
mea
ns th
at
you
can
get b
ack
to c
onqu
erin
g an
y jo
urne
y w
ith th
e he
ro o
f lon
g ha
ul.
*
THE OLD SHANGHAI FIRECRACKER FACTORY 702711
SUPPLY CHAIN LOGISTICS • Rail
Locomotive frenzyRail and logistics solutions provider RRL Grindrod is thriving on the back of grow-ing demand for its locomotives and associated services, particularly from the mining sector, writes John Batwell.
RAILING THROUGH AFRICA
to Pretoria under their own power via the Swaziland
Railway system following Transnet Freight Rail’s barrier to
diesel traction passing through tunnels on the main Natal
corridor (Natcor).
Four of the class 26 imports will go to Mozambique to
Brazilian mining giant Vale for use on the Sena line. The
mining group initially deployed some of its own motive
power at the Tete coalfields, but the locomotives have not
proven as good as had been hoped in service.
A Mozambique refurbishment contractA second mining group in Mozambique, Rio Tinto, is mov-
ing coal out of the Moatize district to Beira harbour, and
RRL Grindrod has secured a maintenance contract in Beira
for the entire Rio Tinto fleet of locomotives and 200 wag-
ons. Its 15 locomotives, which are an EMD-derivative, were
supplied by the US-based National Railway Equipment
Company’s Croatian assembly plant, TZV Gredelj. RRL
Grindrod chooses to specialise specifically in three power
packs – General Electric, EMD and Caterpillar – and can
put out motive power within a 2 000 to 4 000 hp platform.
TanzaniaA new contract in the pipeline is to rebuild a batch of class
64/65 Henschel-type diesel units for Tanzania’s state railway.
The generic rebuild will be undertaken at the Pretoria West
workshops and then kits will be sent out to Tanzania. The
project will facilitate skills transfer to Tanzanian rail personnel.
Sierra LeoneRRL Grindrod recently secured a run-on order of fourteen
3 000 hp diesel locomotives for Sierra Leone, in addition
to the original order of twenty S30SCC locomotives. The
initial deal was financed by Standard Bank South
Africa, which entered into two five-year loan
deals totalling US$130 million (R1.07 billion)
to help boost Sierra Leone’s economy. The
banking group has backed African Minerals’
(AML) development of the first phase of the
Tonkolili iron ore mining project to export
ore to China.
Part of the first loan was allocated to
RRL Grindrod to supply 20 locomotives
on lease to AML, which are insured by the
Export Credit Insurance Corporation (ECIC)
of South Africa. The S30SCC units under
The company recently acquired a combina-
tion of diesel and electric locomotives from
Queensland National Railroad in Australia.
Shipped from Brisbane to Durban, they only
arrived at RRL Grindrod’s Pretoria West plant in July, but
have already found operating home ground. They will be
mechanically reviewed before they are relocated.
New locomotives for the DRCThe acquisition includes three 25 kV electric locomo-
tives and six General Electric class
26 locomotives. The three electrics
are earmarked for use on the nearly
60-year-old electrified rail section in
the Democratic Republic of the Congo
(DRC). Built by Comeng/Hitachi, the
three locomotives look old, but they
are mechanically sound. They are
similar in performance to Transnet
Freight Rail’s class 7E.
Ten class 1720 Clyde GL18C type units from Australia,
which last ran in 1995 and are also currently based at RRL
Grindrod premises, are mechanically still in good order.
They will go ultimately to the DRC as well.
MozambiqueThe six class 26 locomotives (with 2 600 hp) are fitted
with 7FDL-12 power units, and are designated C22-MMi
2000/2002. Some of these locomotives were transferred
A General Electric U20C-type locomotive in industrial use in the Free State
RRL Grindrod’s 3 000 hp locomotives also appeal to local mining companies
44 TWA | Aug/Sep 2012
SUPPLY CHAIN LOGISTICS • Rail
45TWA | Aug/Sep 2012
assembly in Pretoria are to work on a 200 km rail link from
Tonkolili district to the port of Pepel. Three to four of the
locomotives can be lashed together in ore haulage.
The attractive 3 000 hp locomotiveBesides the Sierra Leone contract, RRL Grindrod’s
3 000 hp locomotives appeal to local mining companies,
with one already built for ferrous metals miner Assmang
and a second for Kumba Iron Ore. Vale’s Mozambique
arm has expressed an interest in three of these units, to
be used for coal haulage. CFCO (Chemin de Fer Congo-
Océan), the Congo Ocean Railways linking Pointe Noire
with Brazzaville in the Republic of Congo, will take delivery
of the last two of a batch of four single-cab locomotives
that have been fitted with EMD 645 E3B engines and
frames to meet an 18.5 t axle load.
RebuildsBecause rebuilds are expensive and require the right skills,
RRL Grindrod is fortunate to have staff who have gained
this experience in other South African rail companies. It is,
however, aware of the need to empower new people and
to this end it has developed its own training programme.
One of the four locomotive rebuilds
for Richards Bay Coal Terminal was
on site for maintenance during a
recent site visit by Transport World
Africa. A CFM GECT/Alsthom-built
AD26C locomotive was being re-
engined with a 3 000 hp power unit
as an experiment and forerunner,
which – if successful – will help
secure the remaining set-aside fleet
in neighbouring Mozambique.
New prototype and modelsOn the local mining front, RRL
Grindrod is very excited about its prototype R7I (Integrated)
shunting locomotive. The prototype is fitted with a 700 hp
Caterpillar engine. Valued at R7 million, two of these
‘dinky’ low-profile locomotives have three individual wheel-
sets instead of bogies and can be crewed or remote con-
trol operated. RRL Grindrod envisages a market for 400 or
so of this smaller shunt locomotive.
Underground locomotives also feature in the company’s
diverse tasks. Goodman mine locomotives were undergo-
ing adaptation during the site visit, and a micro-turbine
small mine locomotive for Zambia’s Copperbelt was
present.
RRL Grindrod works with Racec in track maintenance
contracts. To this end, the workshops took Transnet
Freight Rail’s AY-wagon type, which is a ballast wagon,
and designed 16 such units of its own, which can be trans-
ported to the particular maintenance site by road.
All in all, RRL Grindrod represents a vibrant, home-
grown rail company that is not only proving essential to
rail growth and development within South Africa’s borders,
but is well on track with its state-of-the-art work for other
rail expansion, development and progress along the length
and breadth of the African continent.
(Clockwise from top left) The Rio Tinto GT26CU type diesel units that RRL Grindrod will maintain in Mozambique;
One of the 34 S30SCC-type locomotives out shopped for Sierra Leone;
Former Queensland National Railway class 26 locomotives newly arrived in July at RRL Grindrod, west Pretoria;
A CFM AD26C-type locomotive undergoing engine replacement in the RRL Grindrod workshops
Who is RRL Grindrod?
RRL and Grindrod merged three years ago and is a 50% black-owned joint venture between Solethu Investments and Grindrod. The company, with a staff complement today of 300, started out as a parts’ business before going into the motive power business. Today, as a leasing company, RRL Grindrod has a fl eet of some 70 locomotives. The RRL Grindrod label or brand can be seen in Mozambique, the Republic of Congo, the DRC, Sierra Leone, Ghana and Tanzania, over and above its rail service to seven mining companies in South Africa. The business provides motive power leasing, rail operations, shunting, rolling stock maintenance services and rebuilding, as well as track maintenance through its subsidiary Racec.
The company‘s locomotive fl eet comprises a number of former Transnet Freight Rail classes of diesel units, including 31, 33, 34, 35, 36 and regauged class 91 locomotives.
RRL Grindrod has six assembly stations for building powerful locomotives for industry. The under frames are built internally, while cabs and hoods are contracted out. Atchison bogies are are fi tted. Assembly is a 12-week process in all.
To subscribe and/or advertise please call +27 11 233 2600 or visit www.twa.co.zacribe and/or advertise please call +27 11 233 2600 or visit www.twa.co.za
• 853 million people • 6.4% GDP growth in 2012, and more beyond
AFRICA RISINGAFRICA RISING
O
NG IN
NCE T
ECHN
RANSPORT
ENE
NS IN
FRAST
RUCTURE
AGRICULT
URE OIL
COMM
GY RES
EARCH
MIN
ING IN
DUST
Y TOURIS
M SCI
ENCE
TEC
HNOLOGY
CTURE
FIN
ANCE T
RANSPORT
ENER
GY T
OIL
COMMUNIC
ATIONS
INFR
ASTRUCT
URE F
CH M
ININ
G INDUST
RY AGRIC
ULTURE
OIL
COMMU
ISM
SCIEN
CE TE
CHNOLO
GY RES
EARCH
MIN
ING I
NDU
FINANCE
TRANSP
ORT E
NERGY T
OU
ECHNO
COMMUNIC
ATIONS
INFR
ASTRUCT
URE
TEN
E
ING IINN
DDUUSTRY A
GRICULT
URE O
IL C
OMMUNICATIO
NS IN
FRAST
RUCT
ENCE
TEC
HNOLOGY R
ESEA
RCHMIN
I
COM
RANSPORT
ENER
GY TOURIS
M SCI
ENCE
TEC
HNOLOGY R
ESEA
RCH M
ININ
G INDU
ONS IN
FRAST
RUCTURE
FIN
ANC
RY AGRIC
ULTURE
OIL
COMMUNIC
OLOGY R
ESEA
RCH M
ININ
G INDUST
RY
ENER
GY TOURIS
M SC
IENCE
TEC
HN
URE F
INANCE
TRANS
COMMUNIC
ATIO
NDUSTRY A
G
OGY R
RG
AFRICA RISING
ENER TU
R CO INDU
CHNNOLO
G
ENER
GU
LEADING PRODUCT MANUFACTURERS AND SERVICE PROVIDERS doing business in Africa read and advertise in Transport World Africa - regularly. Do you? To gain an understanding of this market, and more importantly, get your product to market, subscribe to Transport World Africa. We will provide you with the business intelligence needed for your company to operate profitably in Sub-Saharan Africa.
Intraregional supply chain solutions from producer to consumer
COMPARING APPLES WITH APPLES, the purchasing power parity (PPP) index of final household consumption expenditure in Sub-Saharan Africa, using the average 2005 US dollar exchange rate as a constant, was last reported at $832 008 892 761.36 in 2010 - according to the World Bank. It is now 2012, and Africa has grown even more. Household final consumption expenditure is the market value of all goods and services, purchased by households, including durable products such as cars, washing machines, home computers and other items. Exports of durable products such as foodstuffs and pharmaceuticals to Africa have also increased substantially.
Household final consumption expenditure (PPP USD 2005 = ZERO) in Sub Saharan Africa
Sub-Saharan Africa set for a boom in 2012 and beyond
Magazine Website Newsletter Market alerts
TToTo subsc
LEADIin Afran unsubsneed
Ma
STRUC
URE O
IL C
SEARCH
MIN
ING
OURISM
SCIEN
CE T
EC
RREE F
INANCE
TRANSP
ORT E
COMMUNIC
ATIONS
INFR
ASTRUC
NING
INDUST
RY AGRIC
ULTURE O
IL C
O
ETE
CHNOLO
GY RES
EARCH
MIN
ING IN
DU
ORT E
NERGY T
OURISM
SCIEN
CE T
ECHN
ASTRUCT
URE FIN
ANCE T
RANSPORT
ENER
EOIL
COMMUNIC
ATIONS
INFR
ASTRUCT
U
NOLOGY R
ESEA
RCH M
ININ
G INDUST
RY AGRICULT
URE O
IL
PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOORRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT
RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIISSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMMM
SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCIIIIIIIIIIIIIIIIIIIIIIEEEEEEEEENNNNNNNN
CCCCCCCCCCCCCCEEEEEETTTTTTEEEEEEEEEEEEEEEE
CCCCCCCHHHHHHHHHHHHHNNNNNNNNNNNNOOOOOOOLLLLLLLLLOOOOOO
RGY T
UCTURE
F
S
Transport-World-Africa twaeditorwww.twa.co.za
47TWA | Aug/Sep 2012 47
THE EAST AFRICAN Community (EAC) secre-
tary general, Dr Richard Sezibera, has said that
he has been impressed by the progress of road
works linking Arusha, Tanzania, with Rwanda,
via the Rusumo border.
Sezibera, who recent-
ly undertook an on-the-
spot assessment of
the status of the roads
along the EAC Central
Corridor Road Network
Project, said he was
pleased with efforts by
the Tanzanian govern-
ment in upgrading almost the entire central
parts of the country to tarmac level.
Sezibera made a surprise tour along the road,
Dr Richard Sezibera, secretary general, EAC
which covers almost 1 200 km from
Arusha to the Rusumo border post
via Babati, Singida, Nzega, Isaka and
Nyakanazi. After the inspection he
commended Tanzania for rehabilitat-
ing as well as maintaining the roads on the
Central Corridor.
“I am amazed that we travelled on well-
maintained tarmac roads all the way from
Arusha to Rusumo border, connecting Tanzania
and Rwanda, apart from small stretches that
are being worked on,” he noted.
On the way to Rusumo, Sezibera met Tanza-
nia Revenue Authority offi cials at the Isaka TRA
checkpoint, one of the three checkpoints on
the corridor, who briefed him that on average
they receive 100 container trucks, about 40
fuel tankers and 35 saloon cars per day, and
they take between 5 and 10 minutes to clear
the vehicles.
At the Rusumo border post, the secretary gen-
eral was informed that Tanzania and Rwanda
had signed a memorandum of understanding
for 15-hour operations that was being imple-
mented by both sides.
The secretary general toured the proposed
site of the Rusumo one-stop border post
(OSBP) where construction work has started
on the Rwandan side of the border. The EAC is
adopting the use of OSBPs as a trade facilita-
tion concept to minimise delays at cross border
points on major transport corridors in the
region. The delays are often a result of poor
facilities, manual processes, lengthy and unin-
tegrated procedures and poor traffi c fl ow.
It entails combining two stops into one and
consolidating functions in a single public facility
for exiting one country and entering another.
The effect is reduced travel time for passen-
gers and cargo vehicles. Sezibera urged the
business community to take advantage of the
good road network to expand their businesses
in the region.
Source: allafrica.com
ROADS
EAC chief impressed with road to Rwandan border
DESPITE THE CONSIDERABLE lack of
trade restrictions across borders, high trans-
port costs are emerging as the new business
hurdle for East African ventures. This was
a concern raised by the CEO of the Kenya
Shippers Council, Gilbert Langat, in Nairobi
during the council’s meeting on Logistics
Performance Index for East Africa.
Shipping is seriously hampered by the
current pace and, according to the report, it
is back-pedalling regional economic growth
by at least 1% per annum. The most affected
are EAC landlocked partners like Burundi,
Rwanda and Uganda, whose development
heavily depends on transit solutions from
neighbouring Kenya and Tanzania.
He said the transport costs in East Africa
were between 60 and 70% higher compared
to the US and Europe. High level of develop-
ment in those continents maybe a scapegoat
factor, but those values are also
30% higher compared to, for
example, Africa’s newest nation,
landlocked South Sudan.
“Dar es Salaam and Mombasa
ports have cumulatively experienced an
annual average growth in cargo throughput
of an estimated 8.8%,” Langat explained
adding that the ports have failed to keep up
with the rate of growth and, as a result, have
experienced delays and congestion over the
past decade.
The Northern Corridor, which links Momba-
sa to several of the East African landlocked
nations, and its counterpart the Central
Transport Corridor, which connects Dar es
Salaam to these same countries, accounts
for annual cargo volumes in excess of 10 Mt
and a combined transit and trans-shipment
traffi c of more than 2 Mt.
“Trade along these corridors has a positive
impact on the region and many initiatives
have been undertaken to improve effi ciency,”
he underscored, but noted that bureaucratic
clearance and congestion consumes time
and money. He said other factors limiting
trade in the region are inadequate physical
infrastructure and national policies that are
incompatible with the EAC goals for regional
integration. He emphasised the need for
special attention to swiftly resolve factors
undermining the shipping business or face
losing business to the Port of Beira in Mozam-
bique where, apparently, the costs are more
reasonable and the services are effi cient.
Source: The Guardian
SHIPPING
High transport costs worry East Africa shippers
AVIATION SAFETY
Kenya Airways inks deal with US fi rmKENYA AIRWAYS AND US-based GHS Avia-
tion audit safety group has signed a deal to
enhance Africa’s aviation safety.
GHS will set up an International Air Transport
Association (IATA) safety operation audit facility
at Kenya Airways to serve the African continent.
“With the aviation safety audit offi ce in
Kenya, Africa’s aviation industry will be able,
for the fi rst time, to access world-class safety
standards within the continent,” GHS president
Captain George Snyder told journalists.
The agreement came a few months after
the African ministerial conference on aviation
safety, held in Abuja, acknowledged the slow
pace of the continent’s operational safety en-
hancements due to systemic defi ciencies and
lack of technically qualifi ed personnel. GHS is
one of few accredited organisations allowed to
carry out IATA Operational Safety Audits (IOSA).
Snyder said the deal will ensure the continual
safety, security and reliability of Africa’s air
transportation industry as measured by global
standards. Regional safety statistics of 2011
showed air transportation in Africa is almost
nine times more dangerous as compared to the
global industry’s average level.
Source: www.bernama.com.my
SUPPLY CHAIN LOGISTICS • Road • Air • Sea
48 TWA | Aug/Sep 2012
PUBLIC INFRASTRUCTURE
The eThekwini public transport tip-top
Commuter transport in eThekwini has taken a giant leap forward with the launch of the Muvo cashless card.
CASHLESS IS KEY
After successfully pilot-
ing the card in June 2012,
the eThekwini Transport
Authority is rolling out its first
cashless transport smartcard to com-
muters using its PeopleMover buses.
The Muvo card is a key driver in the
plan to improve public transport in
the city. The KwaZulu-Natal Transport,
Community Safety and Liaison MEC,
Thembinkosi Mchunu, underlined pub-
lic transport’s central role, pointing out:
“Three out of four residents use public
transport on a daily basis. Our ser-
vices must therefore be safe, reliable,
efficient, fully integrated, accessible
and affordable.”
The Muvo card is a first for South
Africa as it can be loaded with both
cash and transport products, making
transport within the city both cashless
and ticketless. 50 000 cards will be
issued to the public free of charge until
30 September and can be obtained
from Muvo kiosks at bus depots, at 10 of the municipal
Sizakala centres and at 14 mobile Muvo smartvans.
Powered by Standard Bank and delivered by its innovation
arm, Beyond Payments, and transport IT specialist Almex, the
card is an anonymous debit MasterCard. It is pre-funded and
reloadable, and can be used as a standard EMV MasterCard,
as well as in a contactless environment enabled though the
MasterCard PayPass contactless technology.
Cardholders can load trips for journeys on Durban’s bus
system as well as load a cash balance to purchase goods
and services at any vendor displaying the MasterCard sign.
Trips using the Muvo card are sold at a discount to fares
charged using cash or tickets.
When using their cards, commuters pay for bus trips by tap-
ping the card against the electronic ticketing device installed
on the buses, which automatically debits the correct amount
and presents the commuter with a receipt. The entire process
is much faster and neither commuters nor bus drivers have to
handle cash or bus tickets. This is believed to be the first time
that transit tickets are hosted inside a banking application
on an EMV contactless card and the first time that a card of
this nature has been deployed in South Africa in full compli-
ance with the national Department of Transport’s regulations.
Compliance with the department’s regulations also allows for
the system to be adopted by any municipality.
Up to R3 000 can be loaded onto a Muvo card in one month,
and it can carry a maximum balance of R1 500. The maximum
payment per transaction is R200. For additional security,
Muvo card owners will have to enter a PIN number when they
load cash and when purchasing items other than bus trips.
No PIN is required for the ‘tap and go’ option on the buses.
Thami Manyathi, head of eThekwini Transport Authority,
explained the city’s vision for an Integrated Rapid Public
Transport Network (IRPTN). “Initially, the Muvo card will be
used on our buses, but as the IRPTN is phased in, it will be
extended to other modes of transport. To educate commuters
about the Muvo cards, we have initiated an extensive public-
ity campaign and have deployed brand ambassadors across
the city,” he said. With no monthly charges, the card offers a
new level of security and convenience.
MEC Mchunu said that the introduction of the Muvo card
is just a first small step in a long process. “Over the next 10
years, the province and the city of eThekwini will be working
with communities to deliver a world-class integrated transport
service to the entire province for the benefit of all its citizens,”
he concluded.
“Three out of four residents use public transport on a daily basis.” KZN Transport MEC,
Thembinkosi Mchunu
BPW Axles 27Beyond Payments IBCCargoCarriers 31Crossroads 17Cartrack 13Ctrack a Digicore Company 15Electra Mining Africa 2012 7
Emirates Sky Cargo OBCEngen Petroleum Limited 18 & 19Isuzu Trucks SA 29Mercedes Benz Freightliner 43Mercedes Benz SA OFCNC2 Trucks 35Paramount Trailers 25
Pathfi nder Logistic Solutions 38
Scania 8 & 9
Shell Lubricants 23
UD Trucks IFC
Volkswagen Commercial Vehicles 39
Index to advertisers
A new ticketing system from Almex and Beyond Payments, a division of Standard Bank, allows commuters to pay for their bus, taxi or train tickets by simply tapping their EMV smartcard on a scanner– no cash needed! EMV smartcards are sold at self-service kiosks and can also be used at shops to pay for goods and services.
Super fast, safe and secure, you can get on with keeping your passengers happy while we take care of payments.
For more about our turnkey ticketing payment solution, call Mike Hughes on +27 11 489 3300
TAP AND GO!Forget the frustration of fumbling for fare.
Get the card & load it with money. Tap the machine to pay. Be on your way.
Now your customers can Tap and Go in 3 easy steps!
1 2 3