TWA June JUly 2012

ENDORSED BY

Intraregional supply chain solutions from producer to consumer

In the year 2045 oil may have run out

Trans-Kalahari Corridor A viable alternative

Commuter rail In for an overhaul

Emirates Skycargo

Safe, efficient air cargo transport built on exacting standards

HOT SEAT

"Truckers and supply chain logistics service providers want more than a truck. They want added value" Bruce Dickson, Deputy CEO, MAN Truck & Bus SA P14 ISSN 1684-7946 Jun/Jul 2012 Vol. 10 No. 3 / R35.00 incl. VAT

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Volkswagen Commercial Vehicles are always right for the job. From the Caddy to the Amarok and Crafter, they’re ready to partner your business and help it succeed. And with optimised fuel consumption, advanced but robust engines, low maintenance costs, increased load capacity and incredible safety standards, they work better. So visit your nearest Volkswagen Dealer, get behind the wheel and get to work. Let’s Work.

Intraregional supply chain solutions from producer to consumer

COVER STORY ORY Whether it is for air freight ight or passenger transport, air safety fety is absolutely critical for the economic nomic development and well-being of Africa, its people and its visitors P4 4

INSIDE FESARTA Barney’s comment FESARTA News

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HOT SEAT

FREIGHT RAIL

Not just a customer

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INSIGHT 12

In the year 2045

COMMERCIAL VEHICLES 16 17 18

Custom built Trucking with natural gas technology Hino expands into Africa

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Tracks may never meet

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SEA FREIGHT Productivity gains at Durban’s DCT Pier 2 Lawhill Maritime Centre wins award

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Surviving a rollover

REGIONAL FOCUS SUPPLY CHAIN LOGISTICS Growth, competitiveness and the Africa question SCL industry needs a makeover

A critical aspect in safe transportation

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TECHNICAL CORNER Carbon emissions an ongoing challenge

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REGULARS

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Editorial Comment News Desk The Tail End

ROAD FREIGHT

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PARTS & MAINTENANCE Saving money, saving time

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Walvis Bay, a viable alternative

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PUBLIC TRANSPORT Local commuter rail system in for a major overhaul

ROAD TRANSPORT

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Demystifying Transnet’s ‘Back to Rail’ strategy

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33 12 30

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TWA | Jun/Jul 2012

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EDITOR’S WORD

Publisher Elizabeth Shorten Associate Publisher Ferdie Pieterse

Africa rising!

Editor Tony Stone • tony@3smedia.co.za Head of design Frédérick Danton Senior designer Hayley Moore Mendelow Contributors AIDC, Barloworld Logistics, Barney Curtis, IATA, John Batwell, Paul Hoben, PwC

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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 • h.fintelman@lantic.net 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) subs@3smedia.co.za 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.

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TWA | Jun/Jul 2012

Siyabonga Gama

t is quite amazing how the SADC, COMESA and EAC Tripartite member states differ in legislation. Who would have thought that bullbars would be an issue? In this issue FESARTA looks into the issue.

Disregarding what appears to be trivia, but isn’t, and despite the doom and gloom in the United States of America and Europe, the exciting thing about Africa is its economic growth rate. If we carry on with our sensible, pragmatic approaches to economic development we will sustain the boom and realise the projected GDP contributions the experts are talking about. Let’s build on it, I say.

Nonetheless, in taking lessons from the first world economic downswing, customers are becoming a little more discerning. Not just willing to spend money, they are looking for value, and sustainability. MAN Truck & Bus SA has certainly twigged onto this little gem.

And, looking to the future, to 2045 specifically, it is projected that we will be running out of oil. That will be a real problem. So, what’s the alternative? That is the question. Perhaps natural gas technology is the answer. However, there are other more sustainable solutions.One of the solutions or rather part of a solution will be getting freight rail back on track. This in fact is Transnet’s strategy, as was outlined at the FACE2FACE business breakfast where Siyabonga Gama, CEO of Transnet Freight Rail, was the keynote speaker. But, there are challenges as we discovered when we looked into bulk maize transport.

With the wide range of trucks available to transport we need to be selective.

To assist you Transport World Africa (TWA) talks about a few of them, leaving you as always to make the choice. Whatever you decide it will not be your only decision. Which routes to take in transporting goods within the supply chain are equally critical! To this end TWA considers the Trans-Kalahari Corridor. And, talking about supply chain logistics, the latest TransportLogisticsForesight 2012 report is out, and is filled with useful business intelligence. Added to which is another, future oriented report that looks at the skills issue within the supply chain logistics industry, with some alarming findings.

PRASA, South Africa’s commuter rail service company, is in for a major overhaul.

TWA looks at some of the ideas, plans and issues involved.

Not to be outdone, Transnet National Ports Authority, is not only embarking on a huge infrastructure upgrade but is also focusing on some of the soft issues such as productivity – very much needed if we are to retain our status as the gateway to Africa.

Then, coming to the end of the magazine, TWA takes a look at a few technical issues – hydraulics and carbon emissions, with both proving to be interesting reads.

Enjoy.

FESARTA COMMENT

by Barney Curtis, chief executive officer, FESARTA

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t is traditional, in many parts of East and Southern Africa, for transporters to fit “bullbars” onto the front of their trucks. As you know, this is also common practice in Australia, where they are referred to as “rooguards”, to fend off Kangaroos in the outback.

However, there are some issues that need to be understood and put to use as input in our decisions.

Bullbars have been fitted to protect the front end of the truck against damage caused to the vehicle by a collision with an animal. This happens when trucks are driven over long distances, in rural areas, at night. Such transporters are adamant that fitting a bullbar makes economic and safety sense. A collision with a large animal will destroy a very expensive front end of the truck and, because the headlamps are likely to be destroyed, will make the vehicle unsafe to drive.

However, bullbars are seen as a bad safety issue by authorities, as they are not pedestrian-friendly. To an increasing extent, trucks are being designed and constructed to be pedestrian-friendly, that is, they have crumple zones to protect the pedestrian in case of a collision.

Fitting a bullbar removes that protection for the pedestrian.

In some Southern African countries, the regulations allow an extra 300 mm to the overall truck length limits , that is, if an interlink or a truck and trailer is fitted with a bullbar, its overall length limit is 22.3 m and not 22. SADC’s recommendations also include this provision.

The University of Dar es Salaam is carrying out a project on behalf of the EAC, to determine the dimensional limits for the East African Community. (Last year, FESARTA

was involved in a similar project to determine the load limits). When this project is completed and the limits agreed, the outcomes may well influence what is already in SADC’s document; since the three RECs work together on such matters.

Below is input from the Botswana Hauliers Association:

Where to “We have fought from here? this before, for our own fleets, As the road transport industry: Do we agree with the fitting of just a few years bullbars? If so, do we ask for an ago, and ended extra 300 mm for them (as per SADC’s recommendations)? up having to Do we disagree and FESARTA remove our bullproceeds to have their provision removed from regional recombars - which are mendations? now not encouraged because of the negated benefit of manufacturer crumple zones, an added safety precaution for pedestrians. The use of bullbars puts one at a higher legal risk with respect to culpable homicide charges should a pedestrian be run over and killed. Toyota is now only prepared to fit a small central bullbar protecting the radiator on a 4x4 and not one that covers the crumple zones. It is understood that the legal and insurance fraternities are also in sympathy with this approach and is therefore only a matter of time before it is challenged in the courts. All major fuel companies now disallow the fitment of bullbars, and this is a clear indication of the associated legal and financial risks.”

Bullbars Hitting a 600 kg cow, a horse or even an antelope at night at a sedate 60 km/h is a frightening experience. Drivers and passengers have been killed. FIT A BULLBAR?

TWA | Jun/Jul 2012

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COVER STORY

AIR SAFETY

Safety in African skies Air safety f t in Africa f is a concern. Coordinating d t the various programmes currently being put in place will be key to improving the continent’s safety record.

A (Above) A Dana Air flight similar to the aircraft (shown below) crashed into a densely populated Lagos suburb killing everybody aboard

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ir travel is essential to the African economies but, to exploit aviation’s full potential, it must be safe for everybody. Many African carriers have exemplary safety records and those that have completed the IATA Operational Safety Audit (IOSA) have safety records 46% better than non-IOSA members. Nevertheless, the region as a whole has been at the bottom of the safety statistics for too long.

Figures improved in 2010. Africa had an accident rate of 7.41 Western-built jet hull losses per million sectors flown, an improvement of 25% compared with 2009. But this was still more than 12 times the world average. Such statistics are doubtless hurting the African carriers and, by extension, the African economy. Passenger numbers fall after an accident, particularly in the high-yield international sector, insurance premiums soar higher, and codeshare agreements grow in complexity and fall in number.

TWA | Jun/Jul 2012

Raising the bar There is no single solution to the African safety issue because there is no single problem. “The poor safety record results from a combination of factors,” explains Guenther Matschnigg, International Air Transport Association (IATA) senior vice president, Safety Operations and Infrastructure.

“It is about the safety culture, a lack of resources, the need for skilled personnel, poor infrastructure, and inadequate safety oversight.

“Some carriers do have modern aircraft and there are experienced pilots,” he continues. “But this is not the whole story. To buy a good aircraft you just need a friendly bank manager. To run a safe, reliable operation is something else again, and requires all of the factors mentioned above to be beyond reproach.”

A closer look at the data provides clues about potential safety improvements. For example, runway excursions are particularly high in Africa. Two initiatives should prove particularly useful. In 2009, in conjunction with Flight Safety Foundation, IATA released a Runway Excursion Risk Reduction toolkit. More than 8 000 copies have been delivered to airlines worldwide and the information was backed up by 12 global workshops in 2010. As a result, IATA members have reduced their runway excursion accidents by 43% since 2008. A revised version of the toolkit, produced in conjunction with the International Civil Aviation Organisation (ICAO) will be released in May at a Global Runway Safety Symposium hosted by IATA and ICAO. In 2009, IATA also launched the Implementation Programme for Safe Operations in Africa (IPSOA). This is an IATA-funded Flight Data Analysis (FDA) scheme for IATA member airlines in Africa. IPSOA provides carriers with a data-driven safety

COVER STORY

management system essential for ICAO compliance. As of August 2010, all of IATA’s African members had FDA programmes in place.

A recent review of IPSOA carriers indicated a nearly 40% reduction in events. Unstable approaches – where the aircraft is flying too high or too fast – are a precursor to runway excursions.

Thanks to the FDA program, an airline’s safety team can focus on the precise details of an event, allowing the airline to change its training programs and operations to eliminate the problems. Identifying specific answers can go a long way to improving overall safety, with more than 100 different flight safety events tracked in the FDA program.

Workshops to review IPSOA and FDA performance are ongoing. It has already been noted that the airports with the least number of unstable approaches are those that had implemented Continuous Descent Approaches, or similar precision techniques, as recommended by IATA through its environmental campaign. These improvements marry safety with efficiency. The next steps involve working with the airports and air navigation service providers to tackle all contributing factors to unstable approaches.

“We are also looking more carefully at safety management systems,” says Matschnigg. “Safety Management System (SMS) has now been added to IOSA, which has been a condition of IATA membership for a while. But more can be done to help carriers in the SMS implementation phase and ensure that they fully understand the capabilities of the system.”

All of this follows on from the improvements resulting from IOSA. “Clearly, such comprehensive safety programs form part of the solution,” Matschnigg notes. “Governments must make use of IOSA to boost the region’s performance.”

United approach Despite these efforts Matschnigg believes there is still more work to do. The main focus, he insists, has to be coordination and reaching out to those airlines not currently covered

by IOSA. The United States Department of Transport has had a Safe Skies for Africa programme in place for a number of years. IATA itself has done a lot of work, as has ICAO and the European Union. And there is a plethora of organisations in Africa working on a country, regional, or pan-continental basis. “The programmes are usually good but it obviously presents a very complex picture to an African carrier,” says Matschnigg. “Whose guidance should they follow? Where do the programs overlap?”

Africa needs one action plan and a strong commitment from all parties, including African carriers. They must get involved and buy in to the one action plan concept. African governments and service providers must also be proactive in forming a single coherent safety strategy and following it through on an agreed timescale.

Cobus Toerien, Manager Flight Safety for South African Airways, agrees there needs to be greater transparency.

“Safety issues involve all the carriers operating in the same airspace,” he notes. “IATA has helped enormously but we must continue to emphasise a safety reporting culture.”

One action plan doesn’t mean one size fits all. Rather, Matschnigg suggests there could be a modular approach, allowing the strategy to be tailored to individual needs.

The fact that the overall scheme is coordinated will ensure any work dovetails perfectly within the carrier itself and in a broader context.

“IATA is serious about safety in the region,” concludes Giovanni Bisignani, IATA director general and CEO. “We are also constantly improving IOSA, raising the bar for safety. We have many programmes to assist our members in meeting all IOSA standards, including a new set of SMS requirements.

Flying must be safe everywhere – including Africa.”

SA Airlink crash in Durban was the first of two. A similar aircraft crashed on landing at George

Skills shortage Africa is facing a shortfall in pilots and skilled staff as traffic increases.

Africa produces plenty of highly skilled pilots and aircraft engineers but market forces have pushed many trained personnel towards other regions, such as the Gulf States, where better rewards and perhaps greater career opportunities, such as the potential to fly bigger aircraft, are on offer.

Although this has to be acknowledged as a problem, it is by no means insurmountable. Making African aviation attractive would certainly stem the flow. “And that starts by making it even safer,” says Matschnigg.

“The region would then be seen for its many advantages, not only its faults. Africa is a fascinating part of the world and aviation is crucial to its development. Presented in the right way it could attract the best people in the industry.

DEADLY STATS year

No of accidents

deaths

2011

117

828

2010

130

1,115

2009

122

1,103

2008

156

884

2007

147

971

2006

166

1,294

2005

185

1,459

2004

172

771

2003

199

1,230

2002

185

1,413

2001

200

4,140

2000

189

1,582

1999

211

1,138

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TWA | Jun/Jul 2012

5

FESARTA NEWS ZIMBABWE

Business to form Customs Forum

THE ZIMBABWE Revenue Authority (ZIMRA) is working in partnership with business associations to craft a Memorandum of Understanding (MOU) to create the Zimbabwe Customs to Business Forum.

Addressing delegates at the Shipping and Forwarding Agents’ Association of Zimbabwe’s 8th annual conference in Beitbridge, ZIMRA’s

commissioner for Customs and Excise, Happias Kuzvinzwa said the interim steering committee was finalising the draft MOU and terms of reference.

Kuzvinzwa, said the forum was a platform for his organisation and business to collaborate on issues of compliance, policy, capacity building, and integrity and technical engagements.

He added that in line with the SAFE framework of standards, ZIMRA would soon be plotting the authorised economic operators.

Kuzvinzwa explained that the scheme sought to reward all compliant operators in the supply chain who meet the set criteria, adding that the groundwork had been done and teams would be conducting stakeholder consultations and awareness workshops in July.

“I would also want to urge the freight industry to embrace as a culture and operation ethos integrity, voluntary compliance, relevant competencies, and information technology.

“Missing these industry risks is being packed into the dustbin of history as you become irrelevant and classified as non-tariff barriers.” he said. Kuzvinzwa added that ZIMRA was also in the process of putting in place a border agency single window through ASYCUDA world. He said all border agencies would be connected to the workflow process through ASYCUDA world to ensure that respective mandates are coordinated and streamlined.

“Discussions are at an advanced stage with other border agencies on the implementation of the single window and Beitbridge has been selected to pilot the programme with ZIMRA providing computer workstations at their respective offices,” he concluded.

SOUTH AFRICA

Road Transport Market Liberalisation workshop

A WORKSHOP to deal with matters pertaining to Phase 2 of the Road Transport Market Liberalisation project to harmonise market access in the East and Southern African region has been held in Johannesburg .

The workshop was funded by TradeMark Southern Africa (TMSA) and chaired by the host country, South Africa. Around 60 delegates attended. The project covered freight and passenger transport. Nick Poree tabled the phase 2 report, which was for the Development of Harmonisation Proposals for Road Transport Market Access.

The effect on trade facilitation of customs procedures and documentation, road user charges, insurances, customs bonds, other levies and charges, drivers’ visas and work permits, were not covered in this project. The three main regulatory models which controlled regional road transport were: Southern African Customs Union (SACU) MOU, SADC bi-lateral agreements and COMESA-EAC treaties.

The overlap of member states’ memberships to RECs, affected the implementation of these agreements. The general objective of the three

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TWA | Jun/Jul 2012

REC’s was to progressively liberalise market access. This was clear in the SADC Protocol on Transport Communications and Meteorology.

Generally, national road Economic traffic regulations were liberalisation means freeing of not aligned with regional prices, trade and agreements. The applicaentry to markets from state control tion of cross-border regulations was completely while stabilising the economy arbitrary across the East and Southern African region.

Benefits of Quality Control • Concurred with the requirement of the SADC Protocol.

• Transporters who complied with certain quality standards would be allowed to do crossborder transport with much less restriction.

• Transporters would be required to comply with increased quality controls and so improve road safety.

• Quantity regulation required member states to control the granting of permits and this was not being done efficiently.

• Any charges and levies applied to the transporter, added to the cost of the goods to the end-user and did not add to the fiscus of a country (the costs were tax-deductible).

Against Quality Control A country would lose revenue from the sale of cross-border permits.

Small transporters could be compromised, though the consultant disagreed with this, noting that in a country such as Australia, most of the transporters were owner-drivers.

South Africa had a different set of road transport circumstances, in that only 10% of its road transport originated from the ports and was destined for other countries, whereas in other coastal countries, most of the traffic was crossborder; that is, from port to inland destinations.

Mutual recognition was vitally important for trade facilitation within the region. If a transporter was registered or licensed in his own country (with customs and/or transport) then his company should not have to be registered or licensed in a foreign country. Similarly, a certificate issued in one country should be accepted in another country.

Questionnaires were completed on barriers to liberalisation. The most important barriers, as listed by the delegates, were: • the requirement for permits • duplicate documentation at borders • bribery and corruption

Quality management included • register transporter with a number • firm details with competent persons, drivers (PrDPs), vehicles • performance monitored – vehicle condition, overloads, records, etc • note changes to company details • standard rating applied to the transporter – A, B, C etc •abnormal, dangerous goods etc The issue of quantity control versus quality control needed further deliberation and member states were requested to submit their input.

FESARTA NEWS

RFA CONFERENCE 2012

Without trucks SA stops This year’s Road Freight Association Conference was held at the Zimbali Coastal Resort in KwaZulu-Natal from 20 to 22 May.

T

ransport World Africa’s roving editor, Tony Stone, attended the conference Conference and sent these “hot off the press” news items: TATA, the main sponsors for the Conference, launched two new long haul trucks – the Novus and the Prima.

Sharmini Naidoo, CEO of the Road Freight Association (RFA), berated the ill-considered introduction of carbon taxes, e-tolls, added fuel levies, increased cross-border permit fees as costs which threaten truckers’ profitability.

These costs will have to be passed on, ultimately to the consumer, or truckers will have to close their doors. A huge concern is government’s lack of due and proper consultation with the trucking industry in these matters. Having seen “people power” in action.

The government should take note. “Without trucks, South Africa stops,” she said.

Garth Bolton, joint CEO of Cargo Carriers, raised the trucking industry’s deep concern, and ire, that it (the trucking industry) was simply seen as a soft target for raising taxes. “This was not acceptable,” he said.

Justice Mahlala, polical analyst, predicted a Zuma second term if he does not create yet another scandal.

Mahlala also said corruption, greed and elitism will see the demise of the ANC by 2024 and warned that the recent e-toll court decision could produce undesirable consequences, one of which is an indecisive government that will affect business efficiency rebudgeting and forecasting.

MEC for Transport, Community Safety and Liaison in KwaZulu-Natal, Thembinkosi Willies Mchunu, says (truck) overloading remains a huge problem with as much as 25% of trucks in South Africa being caught overloaded.

Damage to roads is estimated to be R750 million.

Mike Schussler, noted economist, says that truckers and cities can save between 15 and 30% of fuel costs by implementing “green wave technology”, but it needs government to embrace this technology and implement it.

“This would result in massive fuel savings,” he said.

Sean Nel, executive of the Industry Task Team on Climate Change, said that the introduction of carbon tax will have a negative impact on industry and economic growth just as the shortage of electricity has and does negatively impact the country at the moment. Mawethu Vilana,

deputy director-general of the Department of Transport (DOT) acknowledged this saying that motorists were a quick and easy target, which in terms of the government’s socio-political objectives will remain in force as it is a reliable and sustainable means of taxation.

Marise Moore speaking on behalf of the National Treasury said that, as of 2010, the national road maintenance backlog was R149 billion. It is now 2012.

Peter Mountford, programme director at the RFA conference, in providing feedback from the meeting of the RFA and DOT a year ago, said that the deputy minister of the DOT, Jeremy Cronin, promised to shut down the Cross Border Agency if it remained inefSharmini ficient. After a Naidoo, CEO, RFA 600% increase in fees the agency remains inefficient despite all the black BMWs lined up in front of the agency. It’s now a year later.

Will Cronin shut down the agency?

Mike Schussler, noted economist, in commenting on alternate funding for road development and maintenance said that, over a two year period, saving the difference between the bloated public sector salaries and the private sectors salaries, there would be enough money to pay for seven GFIP projects and one power station project.

Molatwane Likhethe, executive manager at Transnet Freight Rail (TFR), in explaining Transnet’s “Back to Rail” strategy affirmed that their strategy is to be driven by market demand with a focus on bulk products. Hubs would be created along major transport corridors in various locations across South Africa and there would be opportunities for collaboration with private road transporters.

Eighteen trucks, towing various trailer designs and cargo loads, took part in the 2012 “down run” truck test. While the test produced some interesting results, the need to have equal standards of comparison were highlighted.

O verall, the RFA 2012 was a very successful conference.

(Below, from the top) Sharmini Naidoo, CEO, RFA Justice Mahlala, political commentator Nazir Ali, CEO, SANRAL Mike Schussler, economist

“A huge concern is government’s lack of due and proper consultation with the trucking industry.”

TWA | Jun/Jul 2012

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NEWS DESK

SEA FREIGHT

Safmarine welcomes new WAFMAX vessel SAFMARINE CHACHAI, a new 4 500 teu (twenty-foot equivalent unit), Safmarinebranded WAFMAX containership was delivered to Safmarine on 21 May 2012.

The ship, which features Safmarine’s distinctive bright white hull, joins her sister ships, the Safmarine Chilka and Safmarine Chambal, in the AP Moller-Maersk fleet.

“Not only has this modern new vessel been purpose-built for the growing trade with Africa, but it is yet another example of the AP Moller-Maersk Group’s commitment to investing in modern, more environmentally friendly vessels and

AIRBUS

Extended cooperation for humanitarian relief

THE AIRBUS CORPORATE Foundation and the

International Federation of Red Cross and Red Crescent Societies (IFRC) have signed a cooperation agreement for future humanitarian logistics collaboration. The agreement was signed at the Airbus Signing IFRC headquarters in Geneva, Switzerland, by Bekele agreement with Geleta, IFRC secretary-general and Tom Enders, chairRed Cross in man of the Board of Directors of the Airbus Corporate Geneva Foundation and Airbus president and CEO, in the presence of Birgitte Stadler-Olsen, IFRC head of Logistics and Andrea Debbane, executive director of the Airbus Corporate Foundation.

The agreement strengthens the existing cooperation between both partners by building on the following pillars: • Transportation: Airbus will facilitate transportation of Emergency Response Units, supplies and IFRC associated staff. This includes the provision of Airbus test aircraft, its pilots and crew, as well as logistics and ground handling staff.

• Training: Both partners will establish exchange and training of staff in the fields of logistics management, procurement and optimisation.

• Community Relations: The partnership will extend to national Red Cross and Red Crescent Societies to generate opportunities for local collaboration such as joint volunteer initiatives.

This partnership marks one of only 11 global private sector partnerships of the IFRC, which has been a partner of the Airbus Corporate Foundation since 2011. Both have collaborated in two flights to Somalia with an Airbus A340 test flight aircraft transporting over 100 tonnes of food destined for the Horn of Africa, a region afflicted by a severe drought and facing one of the worst humanitarian food insecurity crises in years.

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TWA | Jun/Jul 2012

in growing and strengthening the Safmarine brand,” said Safmarine CEO, Grant Daly.

The Safmarine Chachai and her sister ships were built by Hyundai Heavy Industries and are fitted with super-long-stroke main engines and a waste heat recovery system to reduce emissions and save fuel.

FUEL SUPPLY

Collaborative exchange allowed

THE COMPETITION Commission of South Africa has granted the petroleum and refinery industry an exemption following an application by the South African Petroleum Industry Association (SAPIA) in April 2010. The exemption enables the participants in the various stages of the supply chain to enter into the collaborative exchange of information necessary to ensure the stability of supply, as well as the efficient use of the supply chain facilities.

The application, which asks for exemption until December 2015, was granted on a short-term basis in 2010 and covers a wide range of agreements and practices in the petroleum and refinery industry, in the midst of an ongoing investigation into alleged anti-competitive conduct in the petroleum value chain.

“The exemption will go a long way in ensuring the continuity and stability of liquid fuel supply to the various sectors and geographical locations of the South African economy,” says Avhapfani Tshifularo, executive director of SAPIA. “We are pleased that the exemption has been Bulk fuel granted as it has been almost 18 months since the supply under the spotlight exemption application was submitted and, as the process is long, frustrating and expensive, we would not like to start it again.”

As set out in the short-term exemption, it does not extend to the wholesale, commercial and retail trade of liquid fuels supply, but rather involves the arrangements to ensure logistics and bulk supply.

“We look forward to the implementation of the exemption as it will enable the petroleum and refinery industry to ensure consistent delivery of much-needed liquid fuels to South African industries,” concludes Tshifularo.

NEWS DESK

BOOK REVIEW

Steam Encounters

TAX BREAKS

Retirement and retrenchment

by Paul Hloben I REMEMBER being gob-smacked years ago by the most stunning black and white steam photography taken by Canada’s Nils Huxtable.

Not too many coffee table books come out in black and white – mostly colour these days. However, there is just something wonderful about viewing steam pictures in the black and white medium and it was this same sentiment that has prompted Hloben to put out a new book in this very medium.

A follow-up to his colour presentation Steam Passion, Hloben’s 176-page, hard cover Steam Encounters is in a landscape format. His photographic coverage - on glossy paper - embraces steam locomotives in a variety of contexts; from attendant personnel in the lonely dead of night minding the newly-lit fire for a steam run the next day to the glitz, glamour and clamour of such day-time steam operations and the myriad photographing paparazzi taking up various vantage points for that potential “great shot”.

The capturing in black and white of the contemporary steam scene has been afforded primarily by the clubs Reefsteamers and Friends of The Rail. These two clubs’ locomotives are caught through Hloben’s, and others’ lenses on atmospheric sheds and sunrise and sunset line operations. The Reefsteamers’ operations have afforded photos to be taken on one of South Africa’s most scenic lines, the Bethlehem-Bloemfontein section. Hloben has pulled in veteran South African photographer Mike Wright to supply a wealth of steam shots from decades back before the word “preservation” was even banded around and such a thought was seriously contemplated as yet.

Paul Hloben has captured not only the steam engines in all their glory, but as I said the personalities who undertake the hard physical work of preparing their steeds – greasing, watering, fire-lighting, cleaning fire, polishing and shoveling, not just the glitterati of driving them on the day and waving to the plethora of camera-clicking aficionados.

Steam Encounters is indeed a novel, worthy addition to one’s “railway library” by virtue of its Steam Encounters – Lingering broad content undertaken Whispers of The South African in a medium of yesteryear Locomotive’s Story – black-and-white images ISBN 978-0-620-50286-3 bringing out the very best First Edition 2011 – 30 cm x 22 cm of South Africa’s diverse Published by Rexxon Publishing classes of steam locomoBryanston, South Africa tives. t +27 (0) 83 269 0667

THOSE FACING retrenchment or retirement can look

Finance Minister, Pravin Gordhan during this year’s budget speech

forward to better tax breaks from this year, with retrenchment or retirement tax-free payments increasing from R30 000 in a lifetime to R315 000, effective from the 2012 tax year.

This is according the Ron Warren, executive chairman of payroll software company NuQ, who says that, prior to March 2011, if an employee was retrenched or put on retirement, the extra payments made to the employee because of the retirement or retrenchment were tax-free up to a specified limit of R30 000. Anything in excess of this limit was taxed at the employee’s average rate of tax for that year.

He notes that it was only the additional payments due to such an employee that were tax-free, and not the normal salary and leave pay due to the employee up to the date of retirement/retrenchment.

“Such additional payments were tax-free up to an aggregate amount of R30 000,” Warren explains. “That was a lifetime aggregate, so that if employees were retrenched twice and used up R20 000 on the first retrenchment, they would only be entitled to R10 000 tax free on the second retrenchment or, if he was retrenched once only, on retirement.”

From March 2011, such payments are treated as though they were payments from a pension or retirement fund on death or retirement.

Warren says that this means that such payments are tax-free up to an aggregate amount of R315 000.

“In other words, all retrenchment payments, plus retirement payments, plus lump sum payments from a pension or retirement fund on retirement or death are tax-free until the combined total of such payments reaches R315 000,” he adds. “Once this limit is reached, all future payments are taxed in accordance with the rates applicable to lump sum payments from a pension or retirement fund on retirement or death. These tax rates are much more favourable than normal income tax rates.”

TWA | Jun/Jul 2012

9

HOT SEAT

MAN TRUCKS

Not just a customer…

As a transporter, sending a truck to deliver goods required by your customer’s customer can be quite nervewracking. What will it cost? Will it get there? Will it get back? What will give you peace of mind? Here is a solution.

M

AN Truck & Bus SA’s philosophy is simple. A customer is not just a customer but a partner, an important business partner whose profitability, through innovative and reliable vehicles with low operating costs and efficient service, as well as optimial driver safety and comfort is MAN Truck & Bus SA’s primary objective.

This is borne out by the acquisition of 30 x TGS WW 26.440 EfficientLine trucks by Crossmoor Transport & Plant (CTP), which has grown to become one of South Africa’s leading trucking companies, servicing a wide range of applications including long haul transport of bulk liquids, side-tipper haulage, waste removal and abnormal load transport.

“Consistently rising diesel prices have made fuel expenses the number-one operating cost for transporters, surpassing payroll, and because of this, every effort is required to reduce fuel consumption. The TGS WW 26.440 is setting new fuel consumption benchmarks for our fleet,” says Inderan Naicker, director, CTP Bulk Division.

“While traditional long haul operations often opt for maximum horsepower to overcome the challenges posed by pulling a heavy load over hilly terrain, the driveline on the TGS WW 26.440 has gear ratios optimised for Southern African road conditions, which is proving most successful in getting the most out of the 12.5 ℓ engine.” explains Bruce Dickson, Deputy CEO, MAN Truck & Bus SA. “With 440-horsepower under the hood delivering 2100 Nm of torque between 1200-1450 rpm, the TGS WW 26.440 strikes the perfect balance between power and fuel economy.”

“Our new MAN trucks come with a preferential trade-back agreement which, coupled with the warranty and service contract, covers the entire lifecycle of the vehicle in the CTP fleet, we’re looking forward to greater cost-predictability, productivity and the peace-of-mind of these fixed costs, and the reliability these trucks will bring to our operation,” says Naicker.

Just how does MAN Truck & Bus SA achieve this? The fuelefficiency package soon to be launched and offered by MAN Truck & Bus SA’s EfficientLine is planned to deliver lower fuel consumption in long-haul transport through:

“The driveline on the TGS WW 26.440 has gear ratios optimised for Southern African road conditions and is proving most successful” Bruce Dickson, Deputy CEO, MAN Truck & Bus SA

10

TWA | Jun/Jul 2012

1. Less aerodynamic drag •Aerodynamic package without external sun visor for the cab. A constant speed of 80 km/h reduces drag.

Aerodynamic chassis panelling.

2. Reduced rolling resistance

HOT SEAT

…but a business partner • Tyre pressure monitoring system (TPM) ensures that the correct tyre pressures are maintained, which prevents rolling through increased road grip and rolling resistance, and 99% of all tyre flats.

• The low weight of the rims, due to lightweight construction, fitted on the front and rear axles and of the aluminium compressed air tank has a twofold advantage: over 200 kg more payload as well as lower fuel consumption.

• Energy-saving tyres reduce rolling resistance through their special tread and compound.

4. Driver training

At the recent performance specifications for health and safety standards.

Nampo show And, as more multinational organisations operating in South in Bothaville, Africa comply with international health and safety and carFreestate bon emissions reporting processes, the TGS WW 26.440 will be a natural first choice for those companies seeking to limit their road fleet carbon footprint. This makes the MAN TGS WW 26.440 attractive to cross-border transporters who travel to Angola, Zambia, the Democratic Republic of Congo, Tanzania and beyond. With its sophisticated fuel filtration system STRONG AFRICAN the D26 engine is capable of running PRESENCE 500 ppm diesel without impacting While traveling in Africa, MAN Truck & Bus performance, or damaging sensitive sales and service centres can be found in engine components.

A driver trained by the MAN Profidrive® Economy can save up to 10% on fuel.

Quality and reliability

3. Less auxilliary power required • Air Pressure management (APM): The compressor cuts in only when needed. It thus remains disengaged for up to 90% of the time, during which it requires no power.

• Daytime driving lights need just 42 instead of 300 watts.

• Fuel-saving MAN TipMatic® automatic transmission. It’s Eco Intarder has 25% lower friction losses when switched off.

• Alternator with 4% increased efficiency and ten Amperes higher power delivery.

Supporting evidence This was confirmed by Richard Nancarrow, supply chain manager of Lafarge Gypsum SA, who said, “The MAN TGS WW 26.440 is a 6x4 440-horsepower truck-tractor with an excellent power-to-weight ratio and is ideally suited to pull our tri-axle semi and interlink tear drop tautliner and bulk cement trailers. The fuel efficiency of the MAN D26 commonrail engine is enhanced by the aerodynamics of the teardrop trailer. With comprehensive driver training from MAN Truck & Bus SA and Imperial, we are targeting a 10% -12% improvement in fuel consumption and thus, an equivalent reduction of our carbon footprint.”

What is more, in a managed assessment, South Africa’s recent Road Freight Association’s “drive test”, from Gauteng to KwaZulu-Natal’s Zimbali Resort on Durban’s north coast, confirmed the MAN TGS WW 26.440’s productivity and fuel efficiency.

Going green, going Africa Ian Carmichael, sales support services manager for MAN Truck & Bus SA, says: “The impressive features of the MAN TGS WW 26.440 with its D26 common-rail engine and excellent torque curve, and the fact that it is built for African conditions, is that it is perfectly capable of meeting international

Since MAN Truck & Bus SA introduced its 4 year, 600 000 km factory driveline warranty two years ago, no other original equipment manufacturer has matched this statement of confidence in its product. And, as of January this year, MAN Truck & Bus SA upped the standard to extend its OEM warranty from bumper to bumper for 2 years, 300 000 kms. This speaks volumes about its commitment to quality and confidence in its own product.

29 countries. There are: • 7 MAN owned dealers • 22 service providers in South Africa • 17 service providers in sub-equatorial Africa • 18 service providers in North Africa

In a nutshell MAN Truck & Bus SA, with its commitment to quality, bumper-to-bumper warranty options and dealer network in Africa, will handle your scheduled servicing needs for you wich will enable you to concentrate on running your business. That is peace of mind – built on the knowledge that you run a reliable, eco-friendly and cost efficient fleet.

TWA | Jun/Jul 2012

11

INSIGHT

FUTURE UNCERTAIN

In the year 2045 A relentless truth of life is that nothing lasts forever. Oil is no different. It is a limited resource. And besides fuel from coal, we do not have the capacity to manufacture oil.

T

he list of life changing moments, which have changed the course of human history, would probably fill just a few pages.

In the world of transport, the invention of the wheel around 8 000 BC, the discovery of oil in China in 500 BC, the invention of the first internal combustion engine in France in 1807, the drilling of the world’s first commercial oil well in Poland in 1853, Gottlieb Daimler’s invention of what is often recognised as the prototype of the modern gasoline engine in 1885 and Karl Benz’s invention of the world’s first ‘modern’ automobile in Germany, also in 1885, has brought us to the point where we find ourselves today - with the new 750 HP Volvo FH16 being the most powerful truck in the world.

Producing 2 800 Nm of torque at 900 revs/minute, after which the torque curve rises sharply and reaches its peak level of 3 550 Nm at 1 050 revs/minute, then levels out to 1 400 revs/minute, Volvo’s 750 HP engine makes it possible to maintain a high speed on even the toughest uphill climbs.

The engine is coupled to Volvo’s I-Shift automated gear changing system which has been modified to handle the engine’s high torque. The rear axle range encompasses axles for gross combination weights of up to 250 t. What a truck!

The fastest car in the world is the Bugatti Veyron Super Sport. Its top speed is 430 km/h and it does 0 to 100 km/h in 2.4 seconds. Its aluminium body, narrow angle 8 ℓ

By 2045 we could be paying as much as US$687 per barrel of crude compared to today’s US$109

(Below left) Bugatti Veyron Super Sport, the world’s fastest car, has a top speed of 430 km/hr (Below right) The 750 HP Volvo FH16 is able to tow up to 250 t

ABOVE BP’s Andrew oilrig in the North Sea BELOW BP CEO Bob Dudley

12

TWA | Jun/Jul 2012

W16 Engine with 1 200 HP comes in at a base price of R18.5 million.

Fundamentals In talking about money, the principle upon which economics is based is not difficult to understand. Price is determined by supply and demand. Look at trucks and cars for example. Differentiated by build quality and performance, there won’t be too many Volvo F16 750s or Bugatti Veyron Super Sports on the roads. The more common trucks and cars are a dime a dozen by comparison.

Inflation too is not difficult to understand. An increase in production costs will result in an increase in selling price.

Oil is no different.

According to BP’s Statistical Review of World Energy, the world’s proved oil reserves of 1 383.2 billion barrels will last for 46 years if oil production and consumption are to remain at current levels. The world’s natural gas reserves will last for 59 years - if production is to continue at the 2010 rate. However, this is unlikely given that the world’s population will grow by 1.4 billion over the next 20 years, and in the same period, there will be a 40% increase in world primary energy consumption. We could safely say that a similar increase, if not more, would apply to the following 20 years after that.

So, where does that leave us? The average annual increase per barrel of crude oil since 1861 is 5.4% per annum. If we increase our consumption at a steady 2% per annum, taking us up to the 40% we spoke of, then we will run out of oil in 2045, assuming that we don’t find any more oil. But, can we afford to assume? Even if we did find oil in the oceans, the depth at which it would be located would make it almost impossible to extract and at a cost way above what is costs today. Even so, by 2045 we could be paying as much as US$687 (R5 294.80) per barrel of crude compared to the US$109 we pay today. That is a 530% increase. But given supply and demand, it will probably be a lot more. Either way, we had better look to developing alternate fuel sources as a matter of urgency.

One indomitable fact is this: Running a transport company tomorrow will not be the same as running a transport company today! And a 25 year-old of today will be 60 years old by 2045, just 5 years away from retirement.

What then? Think about it!

T O S G U E I H N D R E TU OM DU LO GY RE MM IN CHN EN RUC C IND CH EN UCT OIL C G E E L N T RT UC C IN NO ER TU CO G T T TR E TE R T AST OI NG N R IL G H EN UC L E I O O E T I OR AS TUR E P FR RE IN N I C I R P R C NC NSP AS O NIN TEC T S ST E O M IEN AN IN TU M IEN NS INF UL R E MI E R A F A IC R IN UR C PO FR UR CH SC TR S UL CH SC TRA S R LO N H T S C N R G T I R O N E N C L S N A N ICU AR SCI RA S I CUL SEA M CE TIO GR EA ISM CE TIO HN S S Y N A A E I C I N T E R R A R N R R E S TE UR INA NIC RY R OU INA NIC ST AG RE ISM CE TIO AG Y O F U Y T T U F U T R N A G CE GY OU NA NIC RY LO Y RE MM DUS LOG GY RE MM IND N E G U O N O R U O I T FI U ST O SC Y E MM DU HN NER UCT L C G I HN NE CT C ING I E RU IL IN UR CO IN TEC T E STR O NIN TEC T M O M T I IS R AST E C IL NG E E R A R E M R O H O INI NC SPO NFR TU H NC RC I UL RC IE A M CIE AN E S R NS RIC EA SC ES T IO G ES CH R M M Y IS NCE CAT Y A Y R RIS NC I R G C RY OG U A I A N L O N N T O N RT O FI MU US OL Y T FI MU UST NO P M D N G E M D H CO IN ECH ER TUR CO IN TEC N C G G IN E T T E RU OIL IN CE N C N S T I R EN PO RAS RE M CIE AN S R NS INF LTU RCH T O F T A R S ICU EA ISM CE ATI AG R Y E Y R G S R N C R ON AG RE OU NA NI TRY LOG ER CTU U I T F M US O EN U Y RY OG GY RE OM ND HN I C C OL NER TU E • 853 million people • 6.4% GDP growth in 2012, and more beyond

AFRICA

RISING S Sub-Saharan Africa set for a boom in 2012 and beyond

COMPARING APPLES WITH APPLES, the purchasing power parity (PPP) index of final household consumption expenditure in Sub-Saharan Africa, using the average 2005 US dollar exchange rate as a constant, was last reported at $832 008 892 761.36 in 2010 - according to the World Bank. It is now 2012, and Africa has grown even more. Household final consumption expenditure is the market value of all goods and services, purchased by households, including durable products such as cars, washing machines, home computers and other items. Exports of durable products such as foodstuffs and pharmaceuticals to Africa have also increased substantially.

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

Intraregional supply chain solutions from producer to consumer

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FREIGHT RAIL

Demystifying Transnet‘s ‘Back to Rail’ strategy Transnet’s Siyabonga Gama sheds light on the ‘Back to Rail’ strategy, a much talked about concept within the transport industry, particularly the road freight industry.

T

ransport World Africa’s business breakfast was held at the Killarney Country Club on 19 April 2012 and hosted by FACE2FACE, a 3S Media interactive forum. At the event, Siyabonga Gama, CEO of Transnet Freight Rail (TFR), detailed the company’s ‘Back to Rail’ strategy. Guided by Transnet’s overriding Market-Driven Strategy , which focuses on bulk transport over distances greater than 250 km, TFR will develop its rail infrastructure along the main transport corridors and a select number of branch lines where financial viability exists – a big client with regular bulk loads. Other than this, TFR will privatise some branch lines and discontinue others. It is also envisaged that company will establish product-oriented bulk depots, e.g. manganese, iron ore, coal, chrome and bulk general goods such as grain in select locations across the country.

TFR’s strategy is based on a qualified assessment of the state of South Africa’s current rail infrastructure, costs of repair and maintenance, capital requirements and future market demands.

TABLE 1 Rail transport opportunities in South Africa TFR expects the total transport demand in South Africa to grow to 2 000 Mtpa over the next 30 years, based on the following appraisal

Justifying Transnet’s ‘Back to Rail’ strategy

Commodity

Coal

• Driven by Eskom’s consumption and migration from road to rail for power stations • A sustained strong demand for South African coal with the emergence of China and India as net importers of thermal coal.

Iron ore

Domestic and regional consumption of steel will fuel demand for iron ore and new iron ore export project from Thabazimbi to Richards Bay/Maputo.

Manganese

South Africa’s share of world output is set to grow with expansion projects planned by both traditional miners and junior miners.

Containers

Rail container volumes are expected to increase in line with Freight Rail’s objective of increasing market share along key intermodal routes such as the Natcor (Gauteng to Durban main line).

Cement

Volumes are expected to increase in line with South Africa’s GDP growth (4% on average). Freight Rail is also targeting railfriendly volumes in this sector.

Magnetite

Grain, maize, wheat and foodstuffs Petroleum liquids/ products

14

Drivers

Demand mainly from China remains strong and is driven by increased steel production. Export growth indicates modest increase and domestic consumption is set to grow once local beneficiation projects are started.

The domestic harvests are approximately 10 Mtpa to 14 Mtpa.

Demand represents TFR’s increased share of total market demand as more traffic is shifted from road to rail.

Demand projections indicate increased volumes by rail in support of the New Multi Products Pipeline and increased crossborder demand from Botswana and Mozambique.

TWA | Jun/Jul 2012

Albeit being a little outdated, the table below shows South Africa’s cost of logistics, as a percentage of the GDP, relative to a selected range of countries. What is clear is that developing countries generally have higher logistics costs, with transport costs a significant component. For example, South Africa stands at 13.5% whereas Europe stands at 7.0%. This directly impacts the overall competitiveness of the country and the cost of doing business. The principle of ‘more is less’, or ‘economies of scale’, apply.

Considering modal contribution, land freight as a percentage of total tonnes per kilometre, we see that the United States’ (US) rail sector constitutes 41.5%, China 47.0%, India 36%, Brazil 21.7% and South Africa 31%. Given that the US and China are the world’s biggest economies, there is obvious logic in using rail. Also, by comparison, in eurozone countries, rail infrastructure carries a higher percentage of the overall freight transported and is well integrated with road freight services. South Africa is clearly out of sync and the case for moving more of South Africa back onto rail makes a lot of sense.

South Africa’s higher road maintenance costs bear testimony to the greater number of heavy commercial vehicles in service. As such, there is a need for greater tonnages to be transported by rail. In applicable cases, this would reduce the cost of doing business in South Africa. Together, these

FREIGHT RAIL Survey year

% of GDP

Morocco

2006

20.0%

Finland

2008

19.0%

Thailand

2007

18.9%

China

2006

18.0%

South Africa

2009

13.5%

India

2007

12.0%

Country

Brazil

2008

11.6%

Netherlands

2009

10.1%

Sweden

2005

9.1%

USA

2009

7.7%

Europe

2005

7.0%

Switzerland

2009

1.5%

TABLE 2 Total logistics costs as a percentage of GDP for selected countries (ranked

by GDP)

TABLE 3 Infrastructure spend by Transnet business divisional TABLE 4 Infrastructure spend by asset type

factors justify the ‘Back to Rail’ strategy.

Commenting further, Gama said that rail should be the backbone for long-distance (>250 km), heavy-load freight volumes. There would be many advantages of moving freight off the road and onto rail. These include: • a reduction of heavy trucks on our roads • overall transport and logistics costs will be reduced • cost of externalities – road damage, road accidents, road congestion, noise pollution, carbon emissions, etc will be reduced • the impact of rising fuel prices would be minimised.

Transnet’s planned R300 billion infrastructure spend As was announced by South Africa’s president, Jacob Zuma, earlier this year that R300 billion of the massive infrastructure development drive would be spent upgrading Transnet over the next seven years, R201 billion . The breakdown of this infrastructure spend is reflected in tables 2 to 4.

Partnering for volume growth Getting a product to depots, if a dedicated rail link is not viable (and there will be many such instances), is an opportunity for the road freight transport industry. TFR is keen to talk to the road freight industry to explore how rail and road can work together to create an integrated and efficient transport service, and create jobs.

TFR is keen to partner with the road, sea and air transport modes to provide end-to-end supply chain solutions for customers. This, according to Gama, must include alliances with logistics service providers (third- and fourth-party logistics) including road hauliers, terminals, warehousing, inland consolidation hubs, multimodal hubs providing intermodal solutions and road-rail technologies.

TFR is in the process of finalising a private sector participation (PSP) framework to guide the introduction and implementation of PSP projects and initiatives in TFR in a consistent and coherent manner. The intention is to leverage the private sector in several areas to supplement the volumes and investments in the market-driven strategy growth plan.

Identified and potential areas include: •Given that considerable growth in transportable GDP is forecast for South Africa, road and rail both have a role to play in ensuring economic growth and job creation for the country.

• TFR is determined to win back market share of rail-friendly

Transnet Division

R (billions)

%

Transnet National Ports Authority

46.9

15.6%

Transnet Port Terminals

32.9

11.0%

Transnet Rail Engineering

3.8

1.3%

Transnet Pipelines

11.4

3.8%

Transnet Freight Rail

201.0

67.0%

Other Total

This will be apportioned by type of asset as follows:

4.1

1.4%

300

100%

Asset type

R (billions)

%

Land, buildings and structures

16.5

5.5%

Pipeline

9.4

3.1% 22.1%

Port facilities

66.3

Machinery and equipment

11.8

3.9%

Perway (Railway lines)

71.1

23.7%

Locomotives

77.8

25.9%

47.2

15.7%

300

100%

Wagons Total

Product category

R (billions)

%

General freight (along main transport corridors)

142.9

47.6%

Export coal

32.1

10.7%

Bulk products

31.8

10.6%

Break-bulk

4.0

1.3%

Export iron ore

25.4

8.5%

Containers

24.5

8.2%

Piped products

9.4

3.1%

Other Total

30.0

10.0%

300

100.0%

tonnages through significant improvements in operational performance, targeted and effective capital investments, as well as partnerships to offer innovative logistics solutions to the Southern African region.

TABLE 5 Infrastructure spend by transported product category

Identified PSP

Potential PSP

Potential PSP

WAGONS

TERMINALS

INFRASTRUCTURE

• specialised wagons for customers • PSP arrangements for wagons schemes in baseload industries • bi-modal technologies • branch lines.

• inland consolidation terminals for coal, manganese, chrome • inland container and automotive terminals.

strategic corridor expansions Waterberg heavy haul rail line (new route) Swaziland rail link.

TWA | Jun/Jul 2012

15

COMMERCIAL VEHICLES

MERCEDES-BENZ

Custom Built Andre Swart drives his unique Mercedes-Benz Actros 1860 BlueTec home.

M

ercedes-Benz South Africa (MBSA) prides itself on the relationships it cultivates – and no-one symbolises this better than longterm MBSA customer and innovative product partner Andre Swart of Agritrans.

Last week, Swart handed over a fleet of Mercedes-Benz trucks to his clients, John Deere in Boksburg. “It is the partnership between Agritrans, John Deere and Mercedes-Benz that has made this memorable day a possibility,” said Swart.

The handover was the end of the journey that began on 26 April 2012, when Swart took personal possession of a highly unusual, one-of-a-kind Mercedes-Benz Actros 1860 LS/36 BlueTec Euro5 truck at MBSA’s East London plant.

Swart’s truck is so unique it had to be custom-built in Germany to meet his specific requirements.

Swart was so pleased with the delivery of the vehicle that he and his family flew to East London to personally accept the keys to his new truck – and then promptly drove the impressive, state-of-the-art new flagship of his fleet back to his Free State head office. “I have been involved in the transport business for 28 years and I used to be a truck driver,” says Swart.

“Taking delivery of my flagship is a lifelong dream come true. A very special vehicle like this really is not intended to be applied like a normal run of the mill fleet number. After waiting anxiously there was no way that I would miss out on the opportunity of driving the new truck home myself,” said Swart. Swart’s acceptance of his new Actros marked the

BlueTec Euro 5 engines emit 80% less particles and 60% less NOx gases

André Swart (far right) and team, showing off their Mercedes-Benz trucks in John Deere colours

16

TWA | Jun/Jul 2012

first time in MBSA’s history that a custom-built vehicle was driven off the plant by its owner.

Among the many detailed specification ordered by Swart was the new Actros’s eye-catching appearance. MBSA usually produces its commercial vehicles in standard white, but Swart’s new acquisition is a bright, attention-grabbing green – the exact hue of principal partner, John Deere.

“John Deere regards Agritrans as a partner and not just a supplier,” Swart says. “We in turn share this sentiment when it comes to Mercedes-Benz. The vehicle I took delivery of and its intended application symbolises these respective relationships that have been 15 years in the making. The fact that John Deere authorised Agritrans to colour and brand the new vehicle, and that Mercedes Benz went out of their way to accommodate our unusual order is testimony to that,” Swart stated.

Having now driven the impressive new vehicle a good distance across the country, Swart is equally enthusiastic about the overall performance of his new Actros.

“The first thought that crossed my mind when I saw the vehicle at the plant was that I had definitely made the right choice. I had very high expectations and I certainly was not disappointed. To then sit back and watch all the new technology at work was a real thrill,” he says.

Advanced technology Active Brake Assist is an unbelievable driver aid but the engine power and its management stole the show.”

Though the spectacular green colour might be the vehicle’s most obvious customisation, it boasts an impressive array of individual features. “The list is endless, but among the most important specifications were the 600 horsepower BlueTec Euro 5 engines and the Active Brake Assist technology. We have never been disappointed whenever advances were made with technology in the Actros and wanted to ‘go green’ for obvious reasons,” Swart says, Diesel emissions from BlueTec Euro5 engines contain 80% less particles and 60% less NOx gases (oxides of nitrogen) compared to Euro 3 engines; tests also show that with long distance travel, BlueTec can save up to 5% of the total fuel consumption.

Overall, BlueTec technology blends cleanliness with economy, reducing emissions and lowering fuel consumption, thereby complementing one another perfectly. The trucks and buses from Mercedes-Benz are all BlueTec pioneers, having successfully implemented the technology as a future-proof standard. Many of the models from these brands already comfortably undercut the Euro 5 emissions limits currently in force in Europe and fulfil the most stringent voluntary standard, EEV. On 1 June 2012, Swart introduced the rest of the Actros fleet to John Deere. Carel Theron, marketing manager of John Deere thanked Swart and Mercedes-Benz for trucks that came in John Deere colours.

COMMERCIAL VEHICLES

MERCEDES-BENZ

Trucking with natural gas technology With the demands made at Durban’s COP17 Conference for a reduction in carbon emissions, Mercedes-Benz re-emphasised its Econic 1828 NGT (natural gas technology) for city logistics applications as a suitable solution.

T

he Mercedes-Benz Econic, the advanced, environmentally-friendly, low-floor transport vehicle for municipal transportation with consolidation and short-radius distribution applications, continues to dominate in inner-city areas. The Mercedes-Benz Econic 1828 NGT chassis, with eco-friendly natural gas, is manufactured at the Mercedes-Benz plant in Wörth, Germany.

“The super-quiet and environmentally-friendly natural-gas variant of the Econic is proof in motion of how protecting the environment doesn’t have to be expensive. Natural-gas engines were introduced as an option on the Econic in 2002. To date, more than 10 000 Econic trucks have been sold and 10% of these are NGT variants, translating into approximately 1 000 units. The vehicle is ideally suited to municipal service applications and all the stop-and-go traffic that goes with it,” says Christo Kleynhans, product manager: Mercedes-Benz Trucks.

division and Daimler Trucks in the field of environmentallyfriendly drive technology.

Refrigerated transport even at night

(Above) The Econic on its South African tour

In all highly-developed industrial countries, a great deal of significance is placed on climate protection and the preservation of a habitable environment. European guidelines have been implemented with these very aims in mind and include guideline EC 2001/547, which states that between 20 and 23% of road traffic must make use of alternative fuels by the year 2020. Noise and emission limits are becoming increasingly stricter, and cities in large, densely populated areas are only granting access to specific types of vehicles.

The Mercedes-Benz Econic is one of these vehicles with its environmentally-friendly, quiet natural gas engine.

Setting standards in technology and cleanliness

Positive driver feedback on safety and ergonomics

The Econic is driven by an EEV-certified in-line six-cylinder 900-series engine in the form of a mono-fuel natural gas drive. The M906 LAG engine produces 205 kW from a displacement of 6.9 ℓ . The emissions produced by the Econic with natural gas drive do not contain any fine dust or particles. In addition, the gas drive also boasts low noise emissions. As a result, the Econic NGT has earned the right to bear the ‘Blue Angel’ seal of approval. The Blue Angel is part of the association for the ‘Global Ecolabelling Network’, comprising 26 environmental labelling organisations worldwide.

Thanks to additional in-engine measures, the use of an Allison transmission, as well as optimised soundproofing, it has been possible to achieve a further significant reduction in noise emissions (down to 72 dBA), thus enabling the Econic to receive approval for round-the-clock operation - 24 hours a day, 7 days a week. Mercedes-Benz Special Trucks highlights the special role played by the Econic as the technology platform for the product portfolio of the Mercedes-Benz Truck

The Econic has long been the benchmark for vehicles with a lowfloor cab. It features a large wraparound windshield and a co-driver’s door, which opens automatically at the push of a button. The cab has a level floor and provides plenty of headroom. The low entry is ideal for applications which involve the driver having to frequently get in and out of the vehicle. The automatic transmission, which is fitted as standard, enables the driver to concentrate fully on the traffic conditions.

“Furthermore, the driver practically sits at eye level with pedestrians and enjoys optimum visibility - features which are praised by the drivers of these unique vehicles. This is also a big advantage, as pedestrians often stand and look at the quiet trucks in amazement, given that they are so different to regular trucks,” adds Kleynhans.

The low profile of the Econic makes it suitable for a number of different applications such as airport tenders

TWA | Jun/Jul 2012

17

COMMERCIAL VEHICLES

HINO

Hino expands its footprint With Africa set for a boom, Hino sees the continent as the next growth market.

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The versatile Hino 300

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INO Motors Ltd, the Toyota Group’s truck manufacturing company, is set to expand its subSaharan African footprint in the course of 2012.

Toyota is Africa’s leading passenger and light commercial vehicle brand and Hino plans to follow suit in the bid to become Africa’s preferred truck. An ambitious drive will see African countries with official Hino representation under the Toyota Tsusho Africa banner being increased from four to 22 this year. Hino recognises that the key to trucking efficiency and minimal downtime lies in offering truck users excellent parts and service back-up and this can only be

TWA | Jun/Jul 2012

achieved through an appointed Hino truck distributor who matches agreed standards. Hino trucks will encounter harsh operating conditions in Africa which amplifies the need for parts and service to be available across the continent. Trained technicians, information bulletins and special tools are all part of a high-quality standard package that goes with an official Hino truck dealership linked to Toyota’s distribution system.

No strangers to Africa Hino trucks are no strangers to Africa where they have been operating as truck market leaders for over 39 years in Southern Africa. Since their first appearance in 1973, with 181 models sold that year, more than 50 000 Hino trucks have been sold in the Southern African region.

Many new and grey imports have also entered the shores of this territory.

The new generation Hino 300 Series trucks are medium-duty 4x2 models and engineered in right and left-hand drive configurations to match African requirements. The versatile Hino 300 series truck range can be equipped with a variety of body types, from open-deck freight carrier to van body and tipper applications.

Acquiring a truck is an investment in a transport solution. This specialist advice is again only possible through trained Hino sales staff operating under an appointed distributor/dealer franchise. Hino trucks are expected to last well over 10 years in service.

A Hino franchise makes this commitment to customers – Hino is there for the long haul in Africa: the right truck for the right job, parts, service, expertise and a truck brand recognised for QDR (quality, durability and reliability).

Trucking technology must be appropriate to the environment in which it operates. Africa is no exception to this requirement. Hino’s vast range of trucks will suit the requirements of the African countries in which they will operate.

COMMERCIAL VEHICLES

SARUCK SURVEY Ignatius Muthien, senior marketing manager at Hino SA, to receive awards on behalf of his company at the annual PMR Africa function in Johannesburg recently. Hino received two Diamond Arrows and one Gold Arrow

in Africa Right-hand-drive countries will see expansion of the Hino 300 Series from two to seven models. The full 300 Series range will now have air conditioning as standard with the only exception being two narrow-cab models. It is proven that air-conditioning enhances truck driver productivity while increasing on-road safety by minimising driving fatigue. Drivers will also appreciate the inclusion of an FM/AM radio and CD player as standard equipment.

Fuel economy, durability and reliability are built into all Hino diesel engines that have been specially chosen for adaptation to differing diesel fuel specifications in Africa. The 300 Series models are fitted with Hino’s fourcylinder, 4.0 ℓ WO4D normally aspirated (Euro 1 specification) or turbo-intercooled diesel (Euro 2 specification) engines, depending on the specific gross vehicle mass models. The turbo-intercooled version is particularly suited to high altitude operations where consistent power is required to match the task imposed on trucks operating at maximum mass on severe grades.

All 300 Series Hino trucks are equipped with drum brakes all round and a dual-circuit, power-assisted, hydraulic braking system – should one circuit fail the other is protected to maintain braking force. Front and rear drum brakes are also most suitable for any off-road condition. Every model is also equipped with an engine exhaust brake – this allows for additional retardation via the engine on down-grades where the brakes do not have to be used to remain cool and efficient in the event of an emergency. An exhaust brake also promotes the service life of brake linings.

To top it all every Hino is equipped with a load-sensing valve on the rear axle. This device senses the load imposed on the rear axle and permits braking pressure according to the load, reducing the chance of wheel lock-up and skidding when the truck is empty and minimal braking force is needed.

The range-topping Hino 300 Series model 913 is specially equipped with 170 ℓ fuel capacity as this 8 500kg GVM truck is most often placed into challenging long-distance service in Africa. The balance of the 300 Series range is fitted with tank capacities from 80 to 100 ℓ depending on GVM class and application to local distribution services. Every fuel tank has a lockable fuel cap.

A load-sensing valve reduces the chance of wheel lock-up and skidding

Hino rated top for third year Hino South Africa has been rated the leading brand in the overall local truck market for the third successive year. This was announced at the annual awards function of the PMR Africa magazine held in Johannesburg recently.

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he survey was conducted by means of telephonic interviews with a random national sample of 180 respondents from January to March 2012. Those interviewed included fleet owners, fleet managers, fleet controllers and transport managers in the private and public sectors, as well as trucking journalists.

The respondents rated the various commercial vehicle manufacturers and distributors across 28 attributes covering the vehicles themselves as well as after-market service. The people interviewed were also asked to list the make, as well as type and number of vehicles they operated in their own fleets.

The results are based on perceptions of the respondents with ratings from 1 to 5 on each attribute. Hino scored an average of 4.27 points in the combined category (trucks above and below 10 t) and was rewarded with a Diamond Arrow.

Hino also came out top in the category for trucks below 10 t with its 300 Series and Dyna range, scoring an average of 4.23 points and qualifying for another Diamond Arrow. The brand was rated third in the large truck category with an average score of 4.21 and qualified for a Silver Arrow.

“We are delighted to have come out top in the combined results for the third year running in this wide-ranging independent research by a company with many years’ of experience in this sphere of marketing,” commented Hino SA vice president Dr. Casper Kruger.

“The strong support for the Hino brand in all its aspects is indicative of our success in terms of selling top class products and looking after our customers. Obviously our reputation has spread beyond operators of Hino trucks to ensure such a positive response.

“We were also very pleased to see that in virtually all the attributes researched Hino not only scored higher than the industry average in almost every case, but in most instances Hino showed an improvement over the ratings in 2011,” added Kruger.

Last year Hino scored 4.15 in the combined results, 4.24 in the under 10 t category and 4.12 in the over 10 t segment.

TWA | Jun/Jul 2012

19

ROAD TRANSPORT

MINE VEHICLES

Surviving a rollover

opencast mine is a frightening experience and one that totally wrecks a vehicle. Moving in a forward motion in a rollover attracts longitudinal forces before lateral and vertical forces take effect. This pushes the cab roof down and rearward. As this happens the cab’s roof side pillars collapse, not being able to take the weight of the vehicle. Occupant space is compromised and windows smashed. If the occupants are not wearing seatbelts, they could be thrown from the vehicle.

And, don’t forget, accidents happen on open roads too.

There is a solution! Minecorp’s Safety CellTM is an innovative roll over protection system specifically designed for 4X4 vehicles operating in the roughest and toughest of mine conditions. But it does not end there. In assessing the mine, its type and its environment, a comprehensive range of compliant safety equipment is needed on a vehicle. Such an assessment will look at the following:

Safety and visibility • Roll over protection systems: internal and external Safety Cell™ • Personal safety: seatbelts, first aid kits and traffic warning triangles • Vehicle visibility: lighting, call signs, reflective tape and high visibility flags

Mining is a tough and dangerous business.

Worker health and safety is a primary concern, especially drivers and passengers of light vehicles.

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brutal reality in the mining industry is that vehicle accidents cause 31% of all fatalities. Some of those who are fortunate enough to survive are left with spinal damage, which results in paraplegia or quadriplegia.

Believing that an accident won’t happen to you, or that yourr safety belts, airbags, stability control and electronic speed d limiting will save you from injury are myths, especially in an n opencast mine. Airbags for one are designed to deploy on n frontal or side impact, not in a rollover situation. And the e harsh reality is that having all this wonder-ful gadgetry does not preclude you from injury in an accident. Off-road vehicles have a higher centre of gravity and heavier gross vehicle mass (GVM) compared with passenger vehicles, and have a higher propensity to roll over at speeds, relative of course to the terrain in which they operate. The cab roof, in rollover incidents, is usually damaged, quite severely, and in Causes of mine vehicle most instances this results in head and/or accidents (especially in openspinal injuries in one form or another. cast mines) Internationally, the mining industry has Speed Poor visibility due to environmental recognised the high injury rate associated conditions with light vehicles. Losing control of a vehiDriver fatigue Loss of control when avoiding cle as a result of avoiding a sudden and debris from trucks unexpected road condition, obstacle or Exceeded load capacity Skidding due to road surfaces other vehicle, can quite easily cause a 4x4 Lack of edge protection (barriers) vehicle to roll over, and in many instances Steep grades does. In fact, statistics show mine vehicles Driver inexperience/unfamiliarity with vehicle are twice as likely to roll and unprotected Mechanical failure mine vehicles are 3.4 times likely to cause Distraction and mobile phone usage a fatality.

Alcohol or drug abuse Rolling down the embankment in an

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TWA | Jun/Jul 2012

Communication and technology • Electrical accessories: integrated wiring looms and functional safety switching and isolation systems • Communications: UHF and VHF radios and mobile phones

Protection and functionality (From top) SafetyCell1: Four point external Safety Cell™ that is structurally mounted to the chassis and incorporates rear braces to suit single cabs.

SafetyCell2: Six point internal Safety Cell™ with mesh load guard to suit wagons.

SafetyCell3: Four point internal Safety Cell™ to suit extra and dual cabs.

• Suspension systems and GVM upgrades • External protection: bull bars, side steps, sump guards and tow bars • Interior protection: seat covers, floor mats and protective mesh barriers

Bodies and accessories • Tray bodies: steel, alloy or galvanised either roll over protection system (ROPS) or non ROPS compatible • Service bodies and boxes: tool boxes, space cases and storage systems • Tray accessories: ladders, tie down points, spare wheel carriers, vice mounts and crowbar holders Remember, one life destroyed or lost is one life too many. And, despite the average financial loss to a mine of R8 million per fatality incident, this must remain a secondary consideration.

Safety of people must come first!

Lilongwe

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Lubango

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Walvis Bay

L端deritz Swaziland

The preferred access to Southern Africa

www.namport.com Head Office Nr 17 | Rikumbi Kandanga Rd | P O Box 361 | Walvis Bay | Namibia Tel: (+264 64) 208 2111 | Fax: (+264 64) 208 2323 Email: marketing@namport.com.na Port of L端deritz Hafen Street | P O Box 836 | L端deritz | Namibia Tel: (+264 63) 200 2017 | Fax: (+264 63) 200 2028

REGIONAL FOCUS

TRANS KALAHARI

Walvis Bay, a viable alternative Is the Port of Walvis Bay a viable alternative for South African manufacturers? After the initial AIDC study ten years ago, we revisit this strategic decision - and conclude that it is.

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The Port of Walvis Bay

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trategically located half way down the coast of Namibia, with direct access to principal shipping routes, Walvis Bay is a natural gateway for international trade.

Walvis Bay is also Namibia’s largest commercial port, receiving approximately 3 000 vessel calls each year and handling about five million tonnes of cargo. It is a sheltered deep water harbour benefiting from a temperate climate. No delays are caused by bad weather.

In order to deal with even higher levels of throughput, NamPort have steadily improved its cargo-handling facilities, and remains committed to infrastructure development, in line with NamPort’s Mission to provide efficient and effective port and related services. Another R2.7 billion port expansion programme is under way.

CONTAINER TERMINAL Walvis Bay’s container terminal can accommodate grounds slots for 3 875 containers with provision for 482 reefer container plug points. The container terminal can host about 250 000 containers per annum, therefore various business development opportunities are being undertaken to facilitate imports and export containers at this port.

PORT LIMITS Mid limits: Latitude 22°51’03.4”S, longitude 014°26’01”E Southern limits: Latitude 22°57’06.6”S, longitude 014°24’04”E. The Chart in use for approaches to Walvis Bay is BA chart number 4134 (INT 2611).

Dimensions of berths 1-3 is 154 400 and berths 4-8 182 000. The distances between bollards 1-26 is 19 m (berths 1-3) while from bollards 27-86 it is 15 m (berths 4-8) respectively.

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TWA | Jun/Jul 2012

en years ago the Automotive Industry Development Center (AIDC) commissioned a study to ascertain whether it was financially viable for the automotive industry to utilise the Port of Walvis Bay as a shipment port. In benchmarking the Port of Walvis Bay against Durban and Port Elizabeth, the variables for the study were focused on transit times and cost. The study involved 40 foot containers which were transhipped via Rotterdam to the Port of Antwerp, Belgium. From there the containers were forwarded into Europe. Two containers were road hauled from Gauteng to Walvis Bay. The third container went to Durban by road while the fourth container was sent via rail

REGIONAL FOCUS

to Port Elizabeth. All departed simultaneously destined finally for Antwerp.

At the time, after the study had been completed, the AIDC/ WBCG team established that the simultaneous trial shipment of 40 foot containers through Walvis Bay, Durban and Port Elizabeth proved that Walvis Bay was a viable alternative to South African ports, especially for time sensitive cargo.

That was then, when very little had been done to upgrade the Port of Walvis Bay. Since then much has been done.

The chief executive officer of the Walvis Bay Corridor Group, Johny Smith, in reflecting on the past ten years says: “It has become evident how the Walvis Bay Corridor Group has facilitated trade along the Walvis Bay Corridors and what a creative and constructive role these corridors have played in the national endeavour of building a dynamic sector in the Namibian economy and beyond.” He adds that: “the Trans Kalahari Corridor (TKC) had developed tremendously, not only in terms of the volumes it carries, but also with regards to service excellence, especially in reducing transit times, removing bottlenecks and improving corridor logistics.

Independent opinion And, as with opinion, independent opinion is always better.

Daniel Brundige, Elizabeth Dawson, Mackenzie Massey and Sasha Moore’s (“the team’s”) May 2011 report “An Economic Development Strategy for the Trans Kalahari Corridor” strongly recommends a strategy for the economic development of the Trans Kalahari Corridor.

This corridor extends from Walvis Bay to the border of Botswana through the towns of Swakopmund, Usakos, Karibib, Okahandja, Windhoek and Gobabis, and on to Gabarone, Botswana’s capital city to South Africa’s Johannesburg, the industrial capital of Africa. The diverse environments that the TKC traverses contain many different economic opportunities. The Walvis Bay Corridor Group has created an economic development plan with the goal of transforming the TKC from a transport route into an economic development corridor by taking advantage of these opportunities.

Through site evaluations of the corridor and interviews with the stakeholders including government officials, private sector representatives, and town councils they gained an understanding of the current projects, the projects under

development, and those that need to be developed. This data was compiled into a comprehensive list of mining, tourism, manufacturing and other economic developments along the TKC. Additionally, they determined the socioeconomic problems that each stakeholder believed were inhibiting the economic development of the TKC. Finally, the report amassed a list of recommendations for the WBCG to consider in solving these problems.

It was the team’s hope that the TKC strategy would help the WBCG attract investors to establish economic projects along the TKC. It would be these projects that would transform the Trans Kalahari Corridor from a transportation route to an economic development corridor.

Once the transformation of this corridor is complete, the TKC will contribute to local and regional economic growth, increasing employment opportunities, reducing poverty, and decreasing the inequalities in income distribution as envisaged in Namibia’s Vision 2030.

There is no doubt that the Trans Kalahari Corridor and the use of the Port of Walvis Bay is and will remain a financially viable alternative to South African ports, especially Durban where time delays are problematic. And, integrating marine, road and rail transport in a cost effective combination, even slotting in air transport where and when necessary, makes the TKC a practical solution in an increasingly competitive world where supply chain logistics costs need to be minimised.

Road traffic security check just before Windhoek

The transKalahari Corridor is a financially viable alternative to South African corridors

On the road along the TransKalahari Corridor

TWA | Jun/Jul 2012

23

LOGISTICS

SUPPLY CHAIN FORESIGHT 2012

Growth, competitiveness and the Africa question In Africa, the public and private sectors seem ready to challenge the constraints presented by the global economic landscape. But this call to action needs to produce concrete results.

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ithin a challenged global economy, strong emphasis on cost management goes alongside a realisation that partnership is essential to the use of the supply chain as a competitive advantage. Therefore, increasing service levels to customers remains the number one supply chain objective, as it has in previous years. This objective must still be achieved at the lowest possible cost, as the objective of lowering procurement costs and decreasing lead times tells us. Essentially, in a highly competitive environment of variable demand, customer needs must be met in the most cost-efficient way possible. What is interesting is a shift in perception about how this can be achieved. The next top objective is improving visibility in the supply chain, followed closely by improving the flow of information between the business, suppliers and

GRAPH 1 Top five constraints to the supply chain

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customers. This strongly suggests a maturing of the longheld mantra of the supply chain, collaboration. No longer can suppliers be squeezed if the supply chain is to remain competitive - there has to be a more strategic and holistic view that is to the mutual benefit of supply chain players, and offers sustainable benefit to the customer in the longer term.

In fact, in industries where the competitiveness of the supply chain is critical to success, such as the automotive industry,

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the information flow objective is supported by every respondent. (See Graph 1)

Supply chain constraints As to supply chain constraints, a more familiar picture emerges. The cost of transport features as the greatest supply chain constraint, for almost every industry sector. South Africa’s high logistics costs, and the imbalance between road and rail, have been well-documented. Sadly, this has been exacerbated lately with the imminent imposition of tolling and carbon tax fees. This is one area that desperately needs effective communication between all industry sectors, since all of them have to move goods, and the government. Over and above the public/private sectors disconnect, companies need to ask themselves hard questions about reducing these costs - are they moving their goods in the most cost-effective way possible? Is each industry considering innovative ways of moving their goods differently – through cooperation with other industry sectors, for example? The bottom line is that there is enormous value to be had in businesses constantly re-looking at their transport strategies and thinking laterally about them. The second major constraint is finding skills to enhance supply chain management. As we shall see, the skills issue remains a burning and urgent challenge for companies across all industry sectors – but can it be addressed in a different way? In the meantime, are companies partnering with the right companies to provide them with such expertise and skills, in a mutually beneficial relationship? Labour unrest, which featured prominently in the South African market and especially in the freight transport sector in the year under review, is unsurprisingly featured as a major constraint. Perhaps more surprising is the presence of ‘reducing the environmental impact of the supply chain’ as a constraint – a first appearance in the top five for this option. The increasing pressure to reduce carbon footprint and to hold suppliers accountable, set by legislation and tax regimes, undoubtedlyy accounts for this constraintt becoming prominent. The e pressure on corporationss to ‘go green’ is thus affect-ing the bottom line.

Acknowledgement: The e m above excerpt was taken from Barloworld Logistic’s Supplyy t.

Chain Foresight 2012 report.

For a full copy of the report visitit a www.supplychainforesight.co.za

LOGISTICS

SUPPLY CHAIN FORESIGHT 2012

SCL industry needs a makeover

The transport and logistics industry is not ‘hip’ enough to attract talent. The industry needs a complete makeover, says a Pricewaterhouse Coopers report.

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lobally the transport and logistics industry is in dire need of a complete makeover by 2030 if it is to stay competitive, according to a report issued by Professional Services Firm Pricewaterhouse (PwC).

• Pay is a turn-off and training is vital for survival, transport and logistics companies told • Just 36.5% probability that people will find the sector ‘attractive’ to work in by 2030 • Nearly 70% probability that transport and logistics must face an image revamp by 2030 to survive In Winning the Talent Race, volume 5 of PwC’s Transportation & Logistics series, industry experts warn that executives need to improve the sector’s poor image and make it more attractive to potential young job seekers. Experts say that the brand perception of the industry needs reinvigorating, adding that the sector is one of the most poorly paid and least diverse to work in.

The report explains that an ageing workforce has led to a diversified skills gap, and more needs to be done in the industry to make it attractive to young people.

Akhter Moosa, Transport and Logistics leader for PwC, Southern Africa, says: “The findings of the study are hugely significant for the transport and logistics sector showing what must be done before the industry falls into a critical

state. Poor image, pay and prospects are all perceptions that currently choke the industry. The reality is that there are rewarding, multinational opportunities out there that need tapping into.”

PwC presented 15 theses to a panel of 94 senior executives from 24 countries working in business, government and the scientific area. During an eight week period the panel of experts studied the hypotheses and were asked to assess the probability of each one on a scale of 0-100%.

The study found that there was a low 35.6% probability of the sector being seen as ‘hip’ and attractive to work in by 2030. There was also a 68.3% probability that firms will need to seriously change their image or brand to stay competitive in order to survive.

The report states that businesses should be focusing on increasing the training programmes they offer to young recruitments. “The problem is compounded by a dearth of training programmes in many areas and an insufficient focus on learning and development within individual companies,” says the report.

“The findings of the study are hugely significant for the transport and logistics sector”

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25

LOGISTICS

Skills shortage The transportation and logistics industry isn’t viewed as attractive by most job seekers. Most transport jobs are also considered to be low-paying dead-ends.

The survey confirms the shortage of skilled employees in South Africa and that transportation and logistics companies are lagging behind other sectors in terms of recruiting and hiring staff.

The panel of experts pointed out that the industry is having trouble attracting young and skilled people, largely due to the sector’s poor image. The experts also noted a number of other factors that are preventing the industry from attracting a sufficient pool of candidates, including low wages and less than optimal work environments.

However, some experts believe that ongoing globalisation and increasing flows of goods will assist in boosting the visibility of the sector. Some panellists are also hopeful that the increasing number of universities and postgraduate programmes focusing on logistics topics will also help fill the future gap.

Compensation and incentives The transportation and logistics industry pays lower wages than other companies do in other sectors. The study found that it was difficult to compare wage levels between countries as survey methodologies differ widely. However, it found a consistent pattern that in many countries wage levels in the sector rate far down the list compared to other industries. For instance, transportation and storage salaries are 42% lower than in the best-paying industry.

Furthermore, within transportation and logistics there are significant variations in salary levels between different employment groups. In this industry, job profiles range from pilots and seafarers to truckers and rail drivers. The skills needed and working conditions vary significantly, and so do the corresponding wages and benefits.

Wages are not the only form of compensation that matter. Benefit packages are becoming increasingly important, although they differ from country to country.

Moosa says: “Transportation and logistics companies need to take a critical view of their remuneration systems and benchmark their salaries against their peers and other industries and recognise salary alone isn’t the only way to compensate employees.”

The panel of experts predict that the sector will need to offer above-average salaries compared to other industries in 2030 in order to bridge the current gap and make the sector more attractive. When it comes to requiring only basic skills, the panellists think that it’s likely that wages will stay low. On the other hand, they think for management functions and highly skilled positions, such as those in supply chain management, the industry will need to offer above-average salaries to attract ‘smart people’. ‘Since

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every industry competes for the best employees, transportation and logistics companies need to differentiate themselves,” says Moosa.

A diverse workforce With older workers making up a greater part of the overall talent pool, companies will need to rely on them more. The panel of experts thinks that companies in the transport and logistics sector will be able to adapt work environments to the needs of older workers by 2030 to avoid risk to productivity and quality.

The report points out that a number of technological innovations and advances in material handling systems are already taking place. Such systems tend to make some types of workplaces more ‘elder-friendly’ although companies may be more motivated by concrete calculations around increasing productivity and gaining technological advantage than they are about how such systems affect their people.

Probability ratings were less than 50% when the panel of experts considered if women would play a more active, and senior, part in transport and logistics firms, and also if the industry would be more diverse in comparison to other sectors, by 2030.

Moosa says: “Logistics companies Akhter in emerging countries need to invest Moosa, Transport and Logistics heavily in training, development and leader, PwC, Southern Africa education to prepare for a younger workforce. Those in developed countries will also need to incorporate these factors into their business strategies as well as working to improve their recruitment and retention methods and adapting the workplace to support an older workforce.

“Jobs in this industry can evolve into great careers for people but the image must change, and soon.”

“Experts predict that the sector will need to offer aboveaverage salaries compared to other industries.”

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27

ROAD FREIGHT

LOAD SECURING

A critical aspect in safe transportation Loading Procedures

Securing loads should be viewed as a critical aspect in transportation. The consequences that result from a load shifting and/or falling could be detrimental to road users and people in the immediate vicinity.

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he Chemical and Allied Industries’ Association (CAIA) Responsible Care supports safe transport and has emphasised the importance of the correct loading of goods on vehicles and complying with load securement standards.

The South African Bureau of Standards (SABS) has published a group of SANS 10187 standards: Parts one to nine cover the requirements and recommendations for load securement on vehicles. Compliance with SANS 10187 is a legal requirement because of its reference in SANS 10231, which stipulates that “cargo securement shall be in line with SANS 10187 to reduce the risk of spillage in the event that a vehicle overturns or should a similar incident occur”.

The importance of the correct loading of goods on vehicles and complying with load securement standards

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TWA | Jun/Jul 2012

Unsecured loads should not be placed in tautliner curtain sided vehicles and trailers, as the curtains are generally not strong enough to restrain the load in the event of an accident.

Before loading packages of drums onto vehicles, drivers should inspect the packages to ensure that damaged or leaking packages are not loaded. These should then be effectively secured to prevent movement and the possible protruding of the package on the sides of the vehicle. Packages should be secured so that they do not fall off the vehicle in the event of a collision or overturning.

Intermediate bulk containers should be individually secured on the floor of the vehicle by chains, straps or clamps.

The following measures should be in place pre and post loading of goods: • pre-loading checks • drivers should ensure that the site is suitable and safe for the operation before they start loading.

• post-loading checks • in case of dangerous goods, check that the correct transport emergency cards and dangerous goods declaration are stored in the designated space • only emergency information documents for the current load, and licences and permits as required by national legislation are stored in the designated space. All extraneous documentation should be removed • the driver must understand the information and instructions on the transport emergency cards • the vehicle is not overloaded or under loaded so as to present a safety risk, and that the load is properly secured • the correct dangerous goods warning placards are in place.

CAIA encourages operators and consignors to have documented loading and securing procedures in place and to ensure that the ‘qualified person’, in terms of dangerous goods transportation, ensures that the loading is carried out correctly and that the load is secure.

Drivers are also encouraged to take responsibility for checking and retightening the load on route as load settling can take place and lashing, strapping and ropes may become loose. Bulk tankers must be loaded correctly to prevent axle overload and excessive product surge in under loaded tankers.

Acknowledgement: The above excerpt was taken from Barloworld Logistic’s Supply Chain Foresight 2012 report. For a full copy of the report visit www.supplychainforesight.co.za

FREIGHT RAIL

MAIZE TRANSPORT

Tracks may never meet Transnet expects to double grain tonnages transported over the seven years of its expansion plan. Even so, this will still fall short of industry requirements.

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lbert Swart, Transnet Freight Rail (TFR) executive manager of sales & marketing for agriculture, says that over time TFR may come close to meeting the requirements of the maize industry, but will not be able to do it overnight.

TFR transported 3.3 Mt of grain last year – or just over 20% of South Africa’s 15 Mt production total. The rest was transported by road. Swart admits there has been a drop in tonnages transported by Transnet over the past few years. He ascribes this to unreliable rolling stock and outdated locomotives.

Although TFR will be allocated R201 billion of the R300 billion expansion budget, most grain and other agricultural produce will still have to be transported by road.

Of the R201 billion, R77.2 billion will be for new locomotives, R76.7 billion for infrastructure improvements and R47.1 billion for new trucks.

Priorities need to change “The grain industry is low on the list of Transnet’s priorities,” says Annatjie Loio, president of the Grain Handling Organisation of Southern Africa. “Transnet is more geared towards loading mining commodities at a single point and delivering it to a port.”

“For instance, with grain, there are 10 trucks to load at Bothaville, 17 at Hertzogville and 12 at another stop. Then there are stops all along the way to offload, and so on.

Nonetheless, because we are dealing with food, it is vital that grain be transported as cheaply as possible to where it is needed”, says Loio.

But for Transnet this would mean maintaining a network of branch lines. Given the cost overheads and financial non-viability, this does not match Transnet’s strategy of

commercial viability – hence its strategy to privatise branch lines. It is a lot simpler and more cost effective, transporting mining commodities from one point of pick up to one point of delivery. Despite these economic realities, Loio insists that Transnet will have to come to the party as the grain industry enters a new growth phase. This was initiated by the export of more than 2 Mt of grain during the past season to neighbouring countries as well as Mexico, Italy, Korea, Venezuela, Kuwait, Iran, Japan, Madagascar and Taiwan.

“In the sub-Saharan region there is a population of one billion people that must be fed. There are also huge opportunities with South Africa being one of the BRICS countries, which have a total population of almost three billion people.”

Economist Roelof Botha says the BRICS countries consume US$2 trillion (R16.6 trillion) worth of food every year, which is about 34 times South Africa’s total agricultural yield.

Loio says the South African grain industry will “definitely” play an even bigger role in the future in feeding the region due to its “privileged position with regard to storage capacity and infrastructure”.

But though the South African industry is able to receive, handle, fumigate, dispatch and store in its silos the 15 Mt of grain produced, it is forced Dr Roelof Botha, economist to transport about 80% of this by road.

“The proportions used to be 90% rail and 10% road, now it is almost the other way around,” says Loio. “It is expensive and increases traffic. Heavy trucks add to the wear on the roads.”

A solution must be found.

“There are also huge opportunities with South Africa being one of the BRICS countries.”

TWA | Jun/Jul 2012

29

PUBLIC TRANSPORT

PASSENGER RAIL

Image André Kritzinger

Safety will be an ongoing issue for PRASA over and above its “technological make-over”

Local commuter rail system in for a major overhaul John Batwell examines the way forward technically and saftety-wise…..

F

ormer transport minister, S’bu Ndebele, opened the procurement processes during April worth R123.5 billion for train sets for Metrorail’s commuter system and R14.5 billion for infrastructure upgrading and the construction of new rail depots.

The Passenger Rail Agency of South Africa (Prasa) will acquire 7 224 coaches nationally over the next 20 years to meet demand. The government has set a 65% localisation target for successful bidders. Early this year the government

30

TWA | Jun/Jul 2012

PUBLIC TRANSPORT

announced the first R5 billion allocation to Prasa, Metrorail’s parent. Out of the R5 billion, R4 billion is reserved for the procurement of new rolling stock, while R1 billion will be used for the upgrading of rail infrastructure such as signalling, and the upgrading and building of new train depots.

On the signalling front, the rail agency selected Siemens in 2010 as the preferred bidder for a contract to install new signalling on key suburban routes. The top priority was Metrorail’s busiest corridors, such as Pretoria to Johannesburg, Mabopane and Mamelodi, the Naledi line in Soweto; KwaMashu - Durban - Umlazi; and Cape Town to Khayelitsha, Mitchells Plain, Philippi, Kraaifontein, Bellville and Simon’s Town.

Announcing the deal in October 2010, Lucky Montana, the Group CEO of Prasa said 80% of the signalling installations are obsolete, and the remainder were not able to fully support modern and safe operations.

Prasa contract to build R123.5 billion of new rolling stock will be forced to accept a black economic empowerment (BEE) partner chosen by the agency. Prasa believes this “new and innovative” approach to BEE will address some of the pitfalls experienced in the past, when inappropriate BEE partners with no longterm commitment were chosen for projects, often only because of their political connections.

Two 10 year contracts to produce 360 rail coaches a year are envisaged and a minimum target of 65% local content will be set for manufacturing. The request for proposal documents for the manufacture of metro coaches over the 20-year duration went on sale in April.

The BEE stake will be ring-fenced and housed as national empowerment fund

Selection of BEE partner critical Renewal programme Montana has stated that the fleet renewal programme will not only change the face of public transport in South Africa to focus around rail as the backbone, but it is the largest project of its kind in the country, with a potential to create 65 000 jobs over the next 20 years and revive the country’s rail engineering sector. Speaking at Metrorail’s Braamfontein depot in Johannesburg, Ndebele said the current rolling stock was old, with the majority of the coaches built in the 1960s and 1970s, and still being driven by old-style technology. He said the rail system had reached the end of its design life. The system, defined in terms of technology, operations, service design and skills, was no longer able to meet passenger expectations and economic demands effectively.

Ndebele said rail services played a significant role in the major metropolitan areas, and by acknowledging the country’s strong railway tradition, Prasa’s key objective was to promote rail as the preferred mode of transport for the majority of the people. He was quoted as saying, “Our transport policy is about promoting public transport over private car use…..The policy also seeks to reduce the costs of transport for poor and middleincome households, with the poor still carrying the burden of an inefficient transport system, rooted in the geography of apartheid, where the majority continues to live far from places of work.”

The former minister also stated that the government was confident that Prasa’s vision to be the leading provider of passenger services was becoming a reality. It would be through this vision that the agency would provide a safe, reliable and modern passenger rail service to all South Africans.

The manufacturer that wins the

Instead of the winning bidder of the contract bringing its own BEE partner, as has been the practice in the past, Prasa itself will appoint the partner. Lucky Montana conceded in an interview at the time that such an approach to BEE participation carried the risk of clashes and incompatibility between the selected BEE partner and the original equipment manufacturer, but said these could be mitigated by agreements and guarantees.

Montana said he believed it was better for Prasa to choose the BEE partner than to have the winning manufacturer bring its own partners, often chosen on the basis of being well connected rather than having a long-term and committed engagement to the project – as had happened so many times in the past. Prasa wants to avoid a situation where the original equipment manufacturer brings in its own BEE partner which does not prove to be an appropriate partner – a BEE partner that will add value and take a long-term view is a requirement. The overhaul project is aimed at avoiding a situation that has occurred historically where a BEE partner

Existing rolling stock undergoing upgrading three years ago at Union Carriage Works in Nigel

TWA | Jun/Jul 2012

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has not necessarily resulted in being the best business choice. A special-purpose vehicle is to be created. The BEE stake in the vehicle will be ring-fenced and housed in the National Empowerment Fund. Within 12 months of appointing the manufacturer, the appropriate BEE partner will be selected through “an open, competitive process”.

The winning bidder would lead the special-purpose vehicle, with the BEE partner getting a stake of 26 to 40% in the project. Montana told MPs that the programme to renew rolling stock would contribute to the government’s industrial policy action plan by strengthening local manufacturing and production, skills development and job creation. Setting high local content targets would assist in creating local industries that could sustain local production.

However, Prasa’s new developments technically are not enough. The rail agency has a poor track record of staff discipline and professional conduct and this needs to be addressed to make public transport more attractable besides new state-of-the-art technology. It also has a record of poor, late-running operations which have led to angry, frustrated commuters embarking on arson attacks and setting train sets on fire. The problems of freeriders and train-surfing are safety issues that also need ongoing attention.

Safety standards are non-negotiable In a concerted effort to address the safety aspect, in May last year Metrorail instituted a zero-tolerance approach to drivers who do not submit to its safety protocols. It has made disobeying speed limits or signals a fireable offence and ordered train drivers not to rely on their own judgment when they are cautioned to proceed with care. Back to back accidents last year were, in both instances, the result of the train drivers having ignored signals.

In one instance a train driver, who had already been disciplined for exceeding route speed limits and put on probation for 12 months, ignored two signals to stop and travelled at 85 km/h in a 30 km/h zone. A resultant accident injured 857 people and cost Prasa more than R55 million through the creation of an accident victims’ fund, the payment of medical bills and the train-crash

cost of repairs. Following a spate of nasty “headlines” incidents in 2011, Prasa started a 90-day programme to improve its overall performance, which encompassed safety, driver behaviour, train availability and ensuring the availability of spares at train depots. The agency has undertaken to strengthening its human factor management. It has increased the frequency of random testing of its drivers for things such as sobriety and other “fitness for duty” measures. Compulsory medical check-ups take place twice a year.

Last year the country’s Rail Safety Regulator (RSR) unveiled a new safety guide called the Human Factor Management Standard which it developed with the South African Bureau of Standards. The Human Factor Management Standard sets minimum requirements for all railway operators and their employees.

Prasa Rail CEO Mosenngwa Mofi (left) and the agency’s group CE0 Lucky Montana (right)

South African rail commuting will undergo a major technological transformation over two decades.

TWA | Jun/Jul 2012

33

SEA FREIGHT

PORT EFFICIENCY

Productivity gains at Durban’s DCT Pier 2

The competitiveness of South African ports, and time taken to load and unload cargo, is crucial to South Africa’s gateway status.

T The latest in cargo handling technology being deployed to assist in productivity improvements

34

TWA | Jun/Jul 2012

he recovery plan for Transnet Port Terminals’ (TPT) Durban Container Terminal (DCT) Pier 2 was introduced last year. This followed delays and downtime linked to the rollout of the Navis SPARCS N4 terminal operating system. This system is in use at most of TPT’s container terminals, but DCT Pier 2 was the biggest and most complex terminal to have adopted it.

Navis is a web-based portal that provides real-time shipping information to TPT and customers, allowing them to track the movement of containers in port. TPT was also the first port operator in the world to use the multi-site, singleserver functionality of the system.

During disruptions, TPT worked closely with the Navis

SEA FREIGHT

software manufacturers to iron out the technical issues and then set out to introduce its recovery plan to industry and other stakeholders. This plan aimed to stabilise the terminal’s operations from June 2011 and to grow the business thereafter by encouraging improvement in key areas such as human capital, equipment and planning.

With the delays and outages from the complex rollout of the Navis SPARCS N4 terminal operating system now minimised at DCT Pier 2, port operator Transnet Port Terminals says it is focusing on sustaining employee performance and cementing correct business processes at the cargo facility.

Productivity is crucial to sustainability Terminal executive for DCT, Hector Danisa, outlines some key productivity improvements since a recovery plan was introduced at DCT Pier 2 late last year.

The plan aimed to reduce bottlenecks and boost the terminal’s operational performance after delays and technical downtime linked to the Navis rollout in April 2011.

Thus far, DCT has seen improvements in its container handling rates, berthing times, truck turnaround time and degree of congestion in the container stacking yard.

“We are focusing on the so-called ‘softer’ issues now, namely intensifying efforts to improve employee productivity, boost morale, reduce absenteeism, improve safety and inculcate a real performance culture across the terminal,” says Danisa.

He explains that while DCT Pier 2’s container handling had improved beyond pre-Navis launch levels, the challenge was now to build sustainable processes to ensure continued performance and to make DCT competitive at international norms.

This, he said, TPT was addressing through various human capital initiatives such as: • The establishment of mission-directed work teams at DCT, spearheaded by TPT’s new People Transformation and Development Unit. These teams are essentially ‘mini businesses’ grouped within the operation according to type of work, and each group will focus on quality, speed, cost, safety and people as work is executed.

• A mentorship programme for operators of lifting equipment to improve crane handling.

Equipment upgrades have been a key focus, as Transnet’s accelerated capital expenditure programme sets out to

“We are improving employee productivity, morale, absenteeism and safety, and inculcating a real performance culture across the terminal.”

reduce the impact of breakdowns due to ageing equipment at DCT. For example: The terminal is now using 28 new diesel-electric straddle carriers, 14 of which have twin-lift capability.

A concerted effort is under way to carry out midlife refurbishments on major equipment timeously.

Thirty straddle carriers have been refurbished. Four ship-to-shore cranes have also been refurbished.

Hector Danisa, Seven new tandem lift ship-to-shore Terminal executive for DCT cranes will be delivered towards the end of the year.

DCT also beefed up its human resources with around 200 new employees introduced into operations, specifically crane operators. The company could now comfortably have 15 operational teams in place.

Landside operations saw the launch of a pre-advice system for both Pier 1 and Pier 2, aimed at improving planning of work and enhancing security in managing containers in the port. A truck appointment system will also be piloted at DCT Pier 2 from June 2012 to improve the scheduling of road cargo and general productivity in the logistics chain. It will initially be tested with four trucking companies and could be extended thereafter.

Under the new appointment system transporters would schedule their container collections or dropoffs via the Navis terminal operating system. They would then be allocated a time slot of about one and a half hours within which to arrive at the terminal. This would enable TPT and transport companies to deploy resources more efficiently and effectively, and could also minimise truck congestion on Bayhead Road.

TWA | Jun/Jul 2012

35

SEA FREIGHT

EDUCATION & TRAINING A successful South African educational programme that equips teenagers who attend school with maritime skills has...

...won an international award

T

Former Lawhill Maritime Centre student Tyrone Campbell is currently at sea with Safmarine

36

he Simon’s Town-based Lawhill Maritime Studies programme, which was pioneered in the mid1990s, is the winner of the 2012 Seatrade ‘Investment in People’ award. Since its inception, the programme has consistently improved the employment prospects of hundreds of young South Africans leaving school each year. The programme has also demonstrated the value and potential of partnerships between the private sector and an educational institution in addressing one of South Africa’s most pressing social issues, namely youth unemployment and poverty.

According to 2011 statistics provided by StatsSA, approximately a third of South Africa’s current estimated population of 50.59 million is aged between five and 19. Of this 24% – four million – are aged between 15 and 19.

Brian Ingpen, head of the Lawhill Maritime Centre, says the high number of South African school leavers versus the limited number of available employment opportunities emphasises the importance of establishing more, innovative, industry-funded educational partnerships and curricula which not only prepare young people for employment both locally and abroad, but which also encourage entrepreneurial thinking.

An estimated 42% of young South Africans aged between 18 and 29 are currently unemployed. Ingpen says the shortlisting of the Lawhill programme for the 2012 Seatrade

TWA | Jun/Jul 2012

Investment in People Award is “recognition that Lawhill is helping to address the skills shortage in the maritime industry by creating opportunities for young people, particularly those from disadvantaged backgrounds, to pursue a career in a growing and important industry. The shortlisting is also a special achievement for the hundreds of students who have passed through the programme since it was founded 17 years ago and for the organisations that have, and continue to, support the programme.”

The Lawhill Maritime Centre is entirely funded by the shipping industry, and Safmarine, a pioneer of the Maritime Studies programme, has been one of its most loyal supporters.

“Supporting education by giving our youth the skills and opportunities they need for a fair chance to succeed in life is not only a priority in a country such as South Africa (where more than 50% of the population is under 25), but particularly important considering South Africa’s current high rate of unemployment, which is the main reason an estimated 40 to 50% of South Africans live in poverty,” says Safmarine Southern Africa Cluster manager, Jonathan Horn.

At 24.9%, South Africa’s official rate of unemployment is among the highest in the world.

According to Safmarine CEO, Grant Daly: “The success of the Lawhill programme is yet another example of Safmarine’s ‘sustainable partnership’ approach – an approach we don’t only apply to our business and our relationships with customers, but also to our dealings with local communities around the world.

“As such, we are delighted that this programme, which has helped so many young South Africans find meaningful and productive employment, has once again received international recognition.” The Lawhill programme won a Lloyds List Salute to Youth and Training Award in 1999.

Safmarine, a shipping brand that originated in South Africa and is now operating in 130 countries around the world, is also a former winner of a Seatrade award. In 1995, the company won a Seatrade award for its innovative ‘Containers in the Community’ programme, a Corporate Social Investment programme that celebrates its 20th anniversary in July 2012.

Congratulations go to Brian Ingpen, head of Lawhill Maritime Centre, who won the Seatrade ‘Investment in People’ award.

PARTS & MAINTENANCE

HYDRAULIC SYSTEMS

Saving money, saving time

Although not quite as advanced as the Transformer ‘Megatron’, mechanised hydraulic systems are nonetheless just as strong. Effectively deployed, efficiently maintained, this physical strength translates into profit. BY TONY STONE

W

ith the globalised world rallying to the clarion call to go ‘green’ and, with unrelenting pressure, the continuing need to become even more competitive a constant, productivity efficiencies are all the more important because, in terms of profit, this translates into doing more in less time and at an ongoing customer satisfying quality.

Hydraulics, one of the most useful human inventions, is a means to harness the tenfold mechanical energy that can be derived from fluid in motion. But, like everything in business, it has to be properly managed and maintained.

Hydraulic systems are precision machined and operate under high pressure. Keeping the internal workings of these systems in pristine condition is crucial to the efficient and cost effective (profitable) operation of the equipment.

In a nutshell, you cannot manage what you do not measure. And, if you don’t measure it, it will catch you off guard at the most inconvenient of times. Murphy’s Law!

Oil, the big issue There are many variables that determine the rate at which hydraulic oil degrades. However, original equipment manufacturers (OEMs), not wanting to complicate matters, simplify the decision by saying after ‘x’ hours change the oil – without any reference to the actual condition of the oil.

There are only two conditions that necessitate changing hydraulic oil – degradation of the oil or the depletion of an additive. Given the costs involved, changing oil unnecessarily will be an expensive mistake. If the hydraulic system

has a large reservoir, new oil costs could be significant. In addition, equipment downtime carries with it a cost, which could take many forms i.e. additional labour, temporary equipment hire, penalties for missed delivery dates etc.

At the same time you cannot just assume your hydraulic oil does not need changing. Poor oil quality will damage your system. Even so, if it is a minor water contamination problem, it does not mean you need to change your oil.

Water can be filtered out.

Nonetheless, all being said, regular monitoring of hydraulic fluids, to measure operating quality, so that maximum efficiency is maintained, is a good idea and a recommended practice. The ‘particle count’ test detects potential wear-causing dirt and contaminants early enough to take action. Water in oil is the biggest concern because it accelerates acid formation, increases oxidation and reduces lubricity, all of which leads to system failure. Water content (%) using the Karl Fischer test provides a precise measurement of how much water is present in the hydraulic fluid.

Keeping hydraulic systems in pristine condition is crucial to operational efficiency and profitability

Filters, the next priority A similar situation applies to hydraulic filters. Changing filters too early (unnecessary expenditure) or too late (with a clogged filter forcing the bypass valve to open, raising

TWA | Jun/Jul 2012

37

PARTS & MAINTENANCE

particle levels, which cause physical damage) carries similar cost implications. Tracking the results of particle count tests serves as an indicator but the best solution is to measure pressure and/or the flow rate immediately after a filter. This can be achieved by using a differential pressure gauge or a transducer. Any drop in pressure would indicate a problem. Where filters are fitted is crucial.

Locations that must be avoided are at the pump inlet, and at the piston pump and motor case drain lines.

Not having a filter at the pump inlet may seem illogical, given that the pump draws its oil from a reservoir. Even so, the reservoir should not become a trash can. But, the more important consideration is, from a pump efficiency point of view, having a clogging or clogged filter at the pump inlet will not fill the pump chambers with freely flowing oil during every intake. Research shows that a restricted intake reduces the life of a gear pump by as much as 56%. It’s worse still for vane and piston pumps that are less able to withstand the vacuum-induced forces created by a restricted intake. Hydraulic pumps are not designed to ‘suck’. Filters fitted to drain lines generate a different set of problems but have the same result – reduced service life.

Using the wrong oil in hydraulic equipment will negatively affect both machine performance and service life

Running too hot, or cold Using the right oil for the prevailing climate in which the hydraulic equipment is used is critical. This refers specifically to oil viscosity, which affects both machine performance and service life. Oil will not flow properly if the viscosity is too high for the climate the machine operates in, especially

on the hotter days. If the viscosity is higher than ideal, more power is lost to fluid friction. If lower than ideal, more power is lost to mechanical friction and internal leakage.

Using the wrong viscosity oil not only results in lubrication damage, it will also lead to the premature failure of major components and increase the consumption of diesel or electricity, whichever is the energy source. As such, the importance of lubrication cannot be overstated.

Viscosity therefore defines the maximum and minimum temperatures, or what is commonly referred to as the temperature operating window (TOW), in which the machine can operate safely and productively. It is advisable to check that your machine’s actual temperature operating window falls within the temperature operating window of the oil in the machine, especially in imported machines.

The rule then is simple. An increase in oil temperature will result in a decrease in viscosity, which, if your system gets too hot, lubrication will be inadequate.

It’s important to bear in mind that a vane pump requires a higher minimum viscosity than a piston pump, another reason why a system’s components influence the system’s safe maximum operating temperature.

Hopefully your hydraulic system includes a vane pump.

If so, the minimum viscosity should be 25 centistokes (cSt or mm2/s). For mineral oils with a viscosity index of around 100, this equates to a maximum allowable operating temperature of 35oC if you are using ISO VG22 oil or 65oC for ISO VG68. Operating temperatures above 82oC damage most seal and hose compounds. This obviously accelerates the degradation of the oil and is something to be avoided.

Cause and effect Some say that it is how you finish a race that is important.

However, how you start, and everything that goes into starting is all important too. Fundamental to starting and finishing is the knowledge of what to do and remembering to do it.

Operator education and training in hydraulics and the equipment being used is vital. For example, you would not start your car without any oil in the crankcase and you would not take off in a plane without doing a few checks first. Starting off without everything that is needed in place and ready to go will not see you finishing the race. The same can be said of hydraulic equipment. Check and monitor the fundamentals of your system as recommended by the OEM and as discussed in this article at start up – every time.

Serious problems can and will be prevented by being proactive, and time and money will be saved.

References: Brendan Casey, Six costly mistakes most hydraulics users make, www.hydraulic supermarket.com

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TWA | Jun/Jul 2012

TECHNICAL CORNER (From left) Flange bearing: Hard-wearing flange bearings help keep engines operating efficiently

EMISSION CONTROL Systematic approach to curbing CO2 emissions...

... an ongoing

challenge

F

ederal Mogul is best positioned to implement truly innovative solutions in response to the global carbon dioxide (CO2) challenge. As world technology leaders in powertrain efficiency, Federal Mogul engineers have fine-tuned and developed new technologies that are aimed at reducing CO2 emissions and upping engine performance with OEM (original equipment manufacturers) approved solutions. A little less than one third of heat released during operation actually produces torque. The rest is dissipated in heat transfer, friction and gas exchange.

Federal Mogul understands the potential in these wasted energies and, with a range of solutions, is turning theoretical performance-boosting approaches into useable technologies that are redefining the concept of efficiency.

Direct solutions The overall reduction of friction with optimised product designs has a major effect on engine efficiency. Typically, power cylinder assemblies (pistons and piston rings) account for 40% of engine friction losses and dissipate useful energy in the form of heat. Federal Mogul has optimised the design of pistons, piston rings and piston coating technologies, providing a significant reduction of frictional horsepower losses and improving fuel economy.

When these technologies are implemented on a typical 170 g/km CO2 petrol vehicle on the New European Driving Cycle (NEDC), this suite of technologies reduces CO2 emissions by up to 4.4 g/km. The application of similar technologies to a typical diesel vehicle with a base emission of 150 g/ km CO2 can lead to CO2 improvements of 2.5 g/km.

The use of new innovations in cylinder heads and gaskets, such as Federal Mogul’s flagship Payen® brand, can also help minimise bore distortion. This translates into a ring pack design with less friction, lowering CO2 emissions. Federal Mogul designs have also improved sealing and bearing technologies. This contributes to a further reduction in friction – offering high-performance dynamic sealing for low torque that can be used for front and rear seals, as well as for transmission and axle applications. Efficient seals enable a reduction of more than 0.5 g/km CO2, as based on the NEDC test cycle. Out-dated spark plug technology that sees a large gap growth over extended use is another area where Federal Mogul has implemented its high-end engineering skills for reduced CO2 emissions. Using iridium technology in the production of extremely durable ‘fine wire’ centres and ground electrodes, engineers have been able to expose the cylinder’s air-fuel mixture to a larger spark plug gap for

a brighter ignition with higher voltage. The Federal Moguldeveloped alumina ceramic helps assure the high-voltage and high-temperature operation of spark plugs.

With a combination of higher spark energy and engine recalibration, testing has shown a reduction of up to 2.4 g/ km in CO2 emissions. In diesel engines, superior afterheating performance by Federal Mogul-engineered glow plugs has also been measured – showing that engines can meet Euro VI requirements without the need for ceramic materials.

The Federal Mogul endeavour to find every component that can be optimised to deliver lower CO2 emissions has even led to design changes in windscreen wipers and lighting. The company has developed flat-blade wipers which reduce mass and energy required for operation – while still providing superior wiping performance.

By converting lighting sources to LEDs and focusing them more efficiently with Federal Mogul-developed lighting systems, mass, power draw and copper wiring requirements can be reduced. This solution gives users a cost-effective alternative that, as a result of lighter weight, also reduces CO2 emissions.

Enabling solutions

GDC RING: GDC Rings help create tight seals for better performance and lower emissions

NURAL-PISTON: Precise piston designs create minimal friction with maximum performance - the key to efficiency and low CO2 emissions

High performance gained from Federal Mogul-engineered technologies allows OEMs to increase cylinder pressure drastically. This enables engines and powertrains to have better performance, fuel economy, and reduced CO2 emissions.

Federal Mogul offers other enabling solutions that bring the possibility of high-temperature operating conditions to the market, such as a range of heat shields for thermal protection.

Advanced valve seats and guide materials also allow for the use of ethanol-based fuels which lack the lubricity of conventional petroleum and result in lower CO2 emissions.

Driver solutions As the international automotive industry begins to use Federal Mogul efficiency technologies, even further reductions in CO2 emissions are achievable by making a few adaptations to one’s driving style: • drive with closed windows to reduce unnecessary drag, which slows the vehicle and burns more fuel • service vehicles regularly • ensure correct tyre pressure to help minimise drag on the road surface • accelerate slowly • avoid, when possible, driving with a full fuel tank as the weight could increase consumption.

IRIDIUM SINGLE: With recent improvements in spark plug technologies, higher efficiency engines are becoming standard around the world

TWA | Jun/Jul 2012

39

TAIL END

ED’S OPINION

Tony Stone

Indictment!

The relationship between economic growth and infrastructure development – and maintenance – has been well established through empirical research carried out by reputable institutions.

To ignore this relationship would be akin to economic suicide.

T

he last time I passed through Viljoenskroon (famous for its toilets in the veld) and Bothaville, in the Free Sate, was about 20 years ago. This time round, I

BAD WORKMANSHIP Bleeding of asphalt (left) and road warping (right)

IT’S A LIE! The 10 km turned out to be 88.9 km

40

went down to visit the NAMPO Agricultural Show and was very surprised to find, in the heart of South Africa’s bread basket, a local and international show with 670 exhibitors.

Major truck manufacturers were there, as were key agricultural equipment suppliers, and there were 4x4s ‘to die for’, the odd prize bull, some magnificent horses, sheep and goats, Tante Marie’s candyfloss and Oom Jannie’s ‘mampoer’.

As to maize, last month the government Crop Estimates Committee forecasted South Africa would harvest 11.7 Mt of maize in the current 2011/12 production season, compared with the 10.36 Mt of the 2010/11 season. Local maize prices are roughly R2 153 per tonne for white maize, while yellow maize is approximately R2 119.60 per tonne. Of this harvest, approximately 2 Mt (1.24 Mt of white maize and 760 000 t of yellow maize) will be exported.

What’s really interesting about the Free State is that it produced 38% of South Africa’s 2012 commercial maize harvest, 60% of which was white maize and 40% yellow maize. This means the Free State produced 4.5 Mt of maize and will earn

TWA | Jun/Jul 2012

CAUTION Potholes like this ocur along the 88.9 km length of the R59 between Vredefort and Bothaville

R1.6 billion in foreign currency for South Africa, which helps our balance of trade.

However, and herein is the rub, the road between Vredefort and Bothaville (Khotsong) via Viljoenskroon is so potholed that it is hazardous to say the least.

Flower-bedecked crosses along the way bear testimony to this. Added to this problem is the fact that whoever was previously contracted to repair this stretch of the R59, a major provincial road, obviously did not have the skills or the know-how to do proper road repairs. Shoving, stripping and bleeding occur along stretches of this road that in places make it extremely dangerous to drive, even at a sedate 80 km/h. Approximately 7 100 vehicles travel along this road each day, including large commercial trucks and abnormal load trucks. After years of neglect, and the pounding that this road is taking, its present state of maintenance makes it a gauntlet of death.

Considering the importance and size of the contribution of this maize producing community to the economy and South Africa’s food supply, especially the farmers down the R59, this road is an indictment of the Free State MEC for Public Works and Rural Development whose priorities are highly questionable. This will result in damage to the Free State’s much needed economic growth and development due of poor infrastructure maintenance – and will no doubt result in the avoidable death and/or injury of drivers, passengers and pedestrians alike.

MSS UD WC03

Trucks so dependable we’ve had to extend our warranties

Apart from saving money kilometre for kilometre, customers can also expect to increase their productivity and proďŹ tability along the way.

For more information on the new warranty conditions, kindly visit www.udtrucks.co.za Applicable to certain application and model variants, normal warranty conditions apply.

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

Professional, Passionate, Dependable Fifty years in South Africa

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