twa aug/sep 2012

52
Intraregional supply chain soluƟons from producer to consumer Intraregional supply chain soluƟons from producer to consumer ENDORSED BY Tripoli-Cape Town corridor Linking 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 EVENT S Y C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C C

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TWA Aug/Sep 2012 edition

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Page 1: TWA Aug/Sep 2012

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

Page 2: TWA Aug/Sep 2012

Product shown in photograph is for illustration purposes only, and is subject to stock availability.

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Applicable to certain application and model variants, normal warranty conditions apply.

Page 3: TWA Aug/Sep 2012

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

Page 4: TWA Aug/Sep 2012

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)

[email protected]

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

Page 5: TWA Aug/Sep 2012

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

Page 6: TWA Aug/Sep 2012

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

Page 7: 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

Page 8: TWA Aug/Sep 2012

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

Page 9: 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

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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

Page 10: TWA Aug/Sep 2012

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

Page 11: 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

Page 12: TWA Aug/Sep 2012

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

Page 13: TWA Aug/Sep 2012

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

Page 14: TWA Aug/Sep 2012

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

Page 15: TWA Aug/Sep 2012
Page 16: 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?

Page 17: TWA Aug/Sep 2012
Page 18: TWA Aug/Sep 2012

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

Page 19: TWA Aug/Sep 2012

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.

Page 20: TWA Aug/Sep 2012

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

Page 21: TWA Aug/Sep 2012

“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

Page 22: TWA Aug/Sep 2012

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?

Page 23: TWA Aug/Sep 2012

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

Page 24: TWA Aug/Sep 2012

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

Page 25: TWA Aug/Sep 2012

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

Page 26: TWA Aug/Sep 2012

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

Page 27: TWA Aug/Sep 2012
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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

Page 29: 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

Page 30: TWA Aug/Sep 2012

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

Page 31: TWA Aug/Sep 2012
Page 32: 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

Page 33: 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

Page 34: TWA Aug/Sep 2012

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

Page 35: 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

Page 36: TWA Aug/Sep 2012

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

Page 37: TWA Aug/Sep 2012
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SUPPLY CHAIN LOGISTICS

36 TWA | Aug/Sep 2012

A HOLISTIC ROUTE OPTIMISATION SOLUTION

An unquestionable

Page 39: TWA Aug/Sep 2012

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

Page 40: TWA Aug/Sep 2012

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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

Page 41: TWA Aug/Sep 2012
Page 42: TWA Aug/Sep 2012

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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

Page 44: TWA Aug/Sep 2012

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

Page 45: TWA Aug/Sep 2012

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Page 46: TWA Aug/Sep 2012

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

Page 47: 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.

Page 48: TWA Aug/Sep 2012

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• 853 million people • 6.4% GDP growth in 2012, and more beyond

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Household final consumption expenditure (PPP USD 2005 = ZERO) in Sub Saharan Africa

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Page 49: TWA Aug/Sep 2012

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

Page 50: TWA Aug/Sep 2012

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

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Pathfi nder Logistic Solutions 38

Scania 8 & 9

Shell Lubricants 23

UD Trucks IFC

Volkswagen Commercial Vehicles 39

Index to advertisers

Page 51: TWA Aug/Sep 2012

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

Page 52: TWA Aug/Sep 2012