Transport World Africa Mar/Apr 2013

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Intraregional supply chain soluƟons from producer to consumer

Corridor

SARS perspective on border crossing

Logistics

The non-tariff barriers

Commercial Vehicles

Marginal growth in 2013

Cobus Rossouw sets sights on Africa

IN THE HOT SEAT

SCANIA’s David Barclay speaks about the company’s expansion drive P6 ISSN 1684-7946 Mar/Apr 2013incl.

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Intraregional supply chain solutions from producer to consumer onsum mer

COVER STORY RY

INSIDE

Imperial Logistics istics leveraging Africa’s rica’s infinite opportunities nities

THIS ISSUE

P4 P 4

REGULARS

SUPPLY CHAIN LOGISTICS 2 3 4

Editor’s word – Make a difference FESARTA – Barney’s comment Cover story – Imperial Logisti Logistics

Transport dynamics in sub-Saharan Africa Non-tarriff barriers SARS perspective on border crossing Optimising operational costs

IN THE E

HOT T

SEAT T P6

S Scania expanding its footprint into Africa

Supply chain solutions for a dynamic world

REGIONAL CORRIDOR FOCUS 8

Regional news

COMMERCIAL VEHICLES UD Trucks: Local industry set for marginal growth First impressions Scania’s Top Team 2013 The importance of driver training BHL expands Zambian fleet with FAW

12 14 16 18 20

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MCLI corridor update

AIR TRANSPORT 38

Expanding the industry

TECHNOLOGY Delivering 98% recovery rate Protecting critical data

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22 24 28 30 34

39 40

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TWA | Mar/Apr 2013

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ED’S WORD

Make a difference!

T

RANSPORTERS ARE BEING squeezed at every turn as operational costs increase with alarming regularity. The fluctuating fuel prices are a case in point and now, with the looming toll fees in Gauteng adding additional monthly costs it will affect the whole supply chain, the overall cost are going to increase even further.

Companies involved in moving goods outside South Africa’s borders face further unnecessary costs in the form of non-tariff barriers. I remember when I started writing about this industry 12 years ago how transporters would say that they always had to provide their drivers with US dollars to pay bribes and so forth along the routes their trucks travelled once they left South Africa’s borders.

The system has not changed, though it appears nowadays there are even more non-tariff barriers that transporters have to face on the African continent.

Most feel they have no say in how to solve this or, at the same time, curb additional costs. We might feel powerless as the new e-tolls are rammed through the system, but we can make a difference in addressing the scourge of non-tariff barriers.

One of the issues being addressed at this year’s Road Transport Forum, taking place between 17 and 18 April in Johannesburg, is how we can all make a difference in solving the issue of these non-tariff barriers in a sensible manner. At this forum, you will be able to have your say and make a difference within our industry.

Now is not the time to sit back, shrug your shoulders and think “it’s been the norm for so long and no matter what I do it will not change”.

On the contrary, it can and will change. As long as we have associations like Fesarta and its affiliates we can make a positive difference, which will have ripple effects for the industry way into the future.

Make a difference and join us at our Road Transport Forum.

In this issue, Imperial Logistics leverages Africa’s infinite opportunities and we look at how fleets can optimise operational costs, We also touch on non-tariff barriers, obtaining comment from operators in Kenya and the DRC. Scania chooses its top team to represent the country, and we also talk to Scania’s export manager about its expanding footprint in Africa.

UD Trucks outlines its plans for 2013, we hear from SARS about the one-stop border posts and also get an update on the Maputo Corridor Logistics Initiative.

As always, a varied read – enjoy!

Financial manager Andrew Lobban Administrator Tonya Hebenton Printers United Litho JHB • t +27 (0)11 402 0571 Publisher Elizabeth Shorten Editor Simon Foulds • simon@3smedia.co.za Head of design Frédérick Danton Senior designer Hayley Mendelow Designer Kirsty Galloway Contributors Barney Curtis, Dinesh Kumar Chief sub-editor Claire Nozaïc Sub-editor Patience Gumbo Production manager Antois-Leigh Botma Production coordinator Jacqueline Modise Distribution manager Nomsa Masina Distribution coordinator Asha Pursotham

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TWA | Mar/Apr 2013

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All articles herein Transport World Africa are copyrightprotected 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.

FESARTA COMMENT

by Barney Curtis, chief executive officer, FESARTA

Solving the problems along our corridors

M

ANY OF THE PROBLEMS that transporters face along the corridors are well-known and have been on the table for

many years.

So why have they not been solved and what can we do about the situation? One of the reasons Fesarta initiated the 2012 Truckers’ Forum – now the 2013 Road Transport Forum – is to encourage industry players to be part of the process in solving these problems. The process includes working with the Comprehensive Tripartite Trade and Transport Facilitation Programme (CTTTFP)

and the Tripartite Non-Tariff Barrier system (NTB).

The CTTTFP is a programme set up by the COMESA/EAC/SADC Tripartite alliance and includes all the major issues that need to be harmonised or standardised across the region. They include customs and borders, third-party insurance, load limits and overloading control, road user charges, corridor management institutions, corridor monitoring, driver immigration, vehicle equipment and dimensions, market liberalisation and self-regulation. There are projects in place to take all of these issues forward and Fesarta participates in all of them.

Fesarta also works closely with the NTB system, which is housed in the Tripartite and receives, manages and strives to resolve all the complaints registered on the system.

If there are such good systems in place, why aren’t the problems resolved?

Consider a complaint, such as a municipality in a country introducing a levy to transporters.

Fesarta will register this as an NTB. Contact is then made with the offending country and a justification of this levy is requested.

The country in question could respond to the effect that the levy is in terms of legislation of the country and so therefore justified. The NTB system may well accept this and consider the problem resolved.

But as far as the road transporters are concerned, the problem is not resolved. This is why Fesarta will be taking up such issues at the 2013 Road Transport Forum, to be held on 17 and 18 April, and seeking the next steps forward in resolving such problems.

To make a positive difference in doing business the right way in Africa, come to the Road Transport Forum in April and help find solutions to the problems!

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Trucking T ki economy across SA EX XPERT OPINION

RFA's Gavin Kelly speaks about

abnormal challenges ahead P16 P 6 ISSN 1684-79 946 94 46 Oct/Nov Oc ct/No ov 2 20 0

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UD TRUCKS

Appropriate technology for Southern Africa

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Trucking T ki economy across SA I THE HOT SEAT IN

EX XPER RT OPINION

“S “Scania i TTrucks k h have b been d developed l d ffor use in the most demanding market” Steve Wager, MD, Scania SA

RFA's Gavin Kelly speaks about

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COVER STORY

IMPERIAL LOGISTICS

Leveraging Africa’s infinite the Walvis Bay-Zambia corridor. Imperial Logistics obviously isn’t in the business of building the actual roads and infrastructure, but we can play a role in creating demand for these – creating the ‘pull’ that will necessitate infrastructure development.” One way in which the group is doing this is by working with partners like Savino Del Bene, a global logistics and freight forwarding company and leader in the shipping world.

Rossouw elaborates: “Our goal is to get more sea freight into Walvis Bay and therefore more traffic onto this corridor.”

The second prong in Imperial Logistics’ Africa strategy is to assist clients in benefiting from the mass consumerisation of Africa. “We will achieve this through our integrated value offering in the fast moving consumer goods (FMCG) and pharmaceutical space,” he explains. “Two years ago, we moved into Africa’s consumer market with the acquisition of CIC Holdings. CIC, which was listed in Namibia, operates within the FMCG industry through distributor agreements with blue-chip manufacturers, both local and international.

Its service offerings include distributorships, merchandising, warehousing, distribution, debtors’ administration and staffing solutions. The group has facilities in the main centres throughout Namibia, Botswana, Swaziland, Mozambique and South Africa.” In September 2012, Imperial Logistics acquired RTT Health Sciences, “which is one of Africa’s leading pharmaceutical and healthcare supply chain service providers,” Rossouw adds. RTT specialises in multichannel solutions for delivering essential medicines and

The International Monetary Fund predicts that Africa will be the fastest grow rreveals eeve ve that Africa has the fastest growing and youngest population..

Consumer-facing industries are expected to grow by over US$400 billion by 2020.

I

t is for these reasons that companies are increasingly setting their sights on Africa. Among them is global logistics and supply chain leader Imperial Logistics. The company’s chief integration officer, Cobus Rossouw, stresses that what sets the group apart is its commitment to work with – and for – Africa, rather than “parachuting in” and expecting a “one-size fits all” strategy to unlock the continent’s potential.

“Imperial Logistics has an unrivalled understanding of the dynamic and growing consumer demand in Africa.”

Three-pronged approach

A three-pronged approach to expansion in Africa will see Imperial Logistics investing heavily in developing corridors between neighbouring countries in Southern Africa, Rossouw explains, in order to facilitate the efficient flow of product between countries. A key Cobus Rossouw, chief integration focus is the Walvis Bay-Zambia officer, Imperial Logistics corridor, he notes. “A current challenge is that everything that goes into Southern Africa comes through South Africa. To address this, we aim to develop

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TWA | Mar/Apr 2013

COVER STORY

consumer health products in South Africa and to Namibia, Botswana, Mozambique, Zambia, Kenya, Tanzania, Malawi, Uganda, Ethiopia, Rwanda, Zimbabwe, Ghana, Ivory Coast and Nigeria.

African footprint Through CIC Holdings and RTT, Imperial Logistics is expanding its already substantial African footprint and strengthening its current exposure to high-growth African economies, states Rossouw. “Our focus in Africa will be in the pharmaceutical and FMCG space, where we see enormous potential. Africa is no longer all about resources.” Citing a McKinsey & Company research, he notes that wholesale and retail was the second-largest growth driver in Africa and that consumer-facing industries

opportunities are being pursued. “In Southern Africa, we will continue to grow our outsourced sales, which are substantial in Namibia and growing in Malawi and Mozambique. We will reinvest in Zimbabwe and we aim to build Zambia as a transport base.”

The advisory side of the group’s approach to Africa will include Africa-China partnerships, which Imperial Logistics has the ability to facilitate, for the benefit of its clients, Rossouw states.

Push and pull In addition to this, Imperial Logistics’ business model in emerging markets is to get involved not just in bringing product in, but in “pulling” it through to market, since the biggest opportunities in Africa’s largely informal markets lie in getting products to consumers through outsourced sales and distribution, Rossouw notes. The key to successful African expansion, he contends, is a holistic approach, that encompasses both “push” and “pull” activities. To this end, Imperial Logistics’ strategy includes not only delivery of product, but activating demand for clients’ products in African markets, thereby generating the “pull”.

Achieving this will include becoming involved in point of sale marketing and merchandising activities, among others.

“A beneficial spin-off of this, and adding value for our clients, will be the data that comes back to us from the point of sale, which is invaluable in helping our clients to build their brands,” he adds.

opportunities accounted for a third of growth. Africa’s rapidly growing young population (about 570 million) is the fastest growing and youngest population in the world – a major factor driving the continent’s consumerisation.

Rossouw cautions, however, that any company aiming to successfully expand into Africa needs to understand that there is not a single, standard approach that can be applied to the whole continent. “Distinct consumer segments exist, with significant variation by country. Imperial Logistics’ goal is to be smart about Africa, while working with Africa,” he stresses.

Supply chain partnerships One way in which this will be achieved is through partnerships, which fall into the third component of Imperial Logistics’ African expansion strategy. “We aim to grow our presence in Africa through acquisitions and to partner with local players wherever possible, rather than cutting them out of the picture. We will also explore supply chain partnerships and advisory opportunities with both existing and potential clients, to identify solutions that can be offered to these clients in Africa.”

One client that Imperial Logistics is already working closely with in Africa is Tiger Brands, which has a strong presence in Nigeria. It is through this partnership that Nigeria has become a focus area for Imperial Logistics. The country is expected to boast Africa’s largest economy before 2020, so Rossouw stresses that it would naturally be part of the group’s future plans. Outlining other countries that form part of Imperial’s African expansion, he says that in East Africa – particularly Ethiopia, Tanzania and Kenya – large supply chain

Differentiating factors Differentiating Imperial Logistics from other supply chain and logistics operators with African expansion plans is a track record of more than 40 years of moving business and industry in Africa.

“We are better placed because we are closer to it,” Rossouw explains.

“Imperial Logistics has an unrivalled understanding of the dynamic and growing consumer demand in Africa, as well as the continent’s unique challenges, which require innovative and sustainable solutions. Our extensive and long-standing local expertise and experience, as well as knowledge built up over the years through our hands-on approach, enable us to competently configure clients’ route to market strategies,” he explains. With an expanded service offering that goes beyond traditional logistics into all aspects of business operations, Rossouw says that in today’s competitive market, Imperial Logistics is increasingly a “co-collaborator” – working with its clients to unlock the competitive advantage contained in complex environments.

“We understand the testing African marketplace, where agility and flexibility are critical. It is our already expansive geographic footprint in the region that we are able to leverage to drive our clients’ competitiveness.” Recognising that every client’s requirements are unique and customising service offerings accordingly will continue to be Imperial’s approach to leveraging experience to the benefit of each client. “This partnership approach will be key to our ongoing success in Africa,” Rossouw concludes.

TWA offers advertisers an ideal platform to ensure maximum exposure of their brand. Companies are afforded the opportunity of publishing a two-page cover story and a cover picture to promote their products to an appropriate audience.

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TWA | Mar/Apr 2013

5

HOT SEAT

SCANIA EXPORT

Expanding its footprint Simon Foulds speaks to David Barclay, export director at Scania SA, about the company’s expanding footprint into Africa.

B

arclay joined Scania in 2003 as sales manager for the export regions and, after working his way through the company, was appointed to his current position in August 2011.

Established markets Scania SA has established markets in Botswana, Namibia, Zimbabwe, Zambia, Malawi and Tanzania. Operations in Botswana, Namibia and Tanzania are wholly owned by Scania SA, with the other three markets operating independently from the company.

“Times are tough in some of these markets, especially in Zimbabwe, Zambia and Malawi, but despite this I find operators and owners generally humble and a pleasure to deal with. At times getting vehicles and parts through to some of these regions can be a major challenge for us, yet we are doing really well in all regions.

“While they may complain when they do not receive their parts on time, they are a bit more tolerant because they understand the frustration everyone endures when bringing goods into their respective countries. They know the procedures that have to be adhered to and the frustrations

AFRICAN PRES S ENCE Scania SA has establiished markets in: • Botswana • Namibia • Zimbabwe • Zambia • Malawi • Tanzania zania

of dealing with relevant customs and government officials in their respective countries.”

Scania trucks

Trucks with nine-litre engines through to the new generation 13-litre engines are the drive-trains of choice among operators in the aforementioned regions.

“There are not many V8s in operation because operators there believe that because of the extra cylinders the engines use more fuel. However, in certain applications the V8 is the right choice and this is one of our challenges in educating operators and fleet owners,” says Barclay.

“Many operators utilise our old 380 and 420 horse power vehicles, which are ideal for the commodities delivered by operators and, given the road conditions, have been the most economical vehicles to run in terms of tyre life and engine wear. For many this is proven technology and it is difficult to change their mindset.”

During the middle of 2012, Scania launched its 13-litre engine, which has a reduced horse power but similar torque as the previous engine generation. “As our vehicles are designed to operate under extreme conditions in Africa this will not be a problem at all for operators.” he adds.

“Competition in Africa is tough and staying ahead of the competition means we have to ensure our service levels and after-sales service are up to speed, along with having the correct parts and vehicles available at the right price. It is a tough

“We are in a fortunate position because Scania produces robust vehicles, ideal for the African market with proven technology.”

David Barclay, export director, Scania SA market, especially with alternative models from Asia entering the fray, meaning apart from convincing the market place to purchase quality products, we also have to be price competitive.

“The lack of forex is problematic in Zimbabwe, Zambia and Malawi, but we are able to offer customers access to Scania Finance, which has had a

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TWA | Mar/Apr 2013

HOT SEAT

into Africa positive impact. On top of this, we also offer customers our driver training programmes and after-sales services as a total solutions sales package.

“It is about doing it right from the outset,” Barclay says.

Advantages “We are in a fortunate position because Scania produces robust vehicles with proven technology, ideal for the African market,” explains Barclay.

“Tanzania is one country where they are now opting to drive 6x4s as opposed to the 6x2s. One of the reasons why this is happening there is because of the types of loads being transported through Tanzania to landlocked Malawi and Zambia. Also, because of the weighbridges being set up in these countries, operators cannot afford to be caught driving vehicles that are not up to spec as per the regional laws.

“We see this as a great opportunity for us, especially in the second-hand trucking market, because we have access to good-quality second-hand trucks suitable for the African market.”

Optimistic about the future Barclay says he is extremely optimistic about the future.

“Scania has made concrete inroads into these key African markets and our expertise in operating in these regions will pay dividends, moving forward. Apart from having good quality vehicles available, we also have a great support team in Southern Africa. Over the next 12 to 24 months we will continue improving the skill levels of those involved with Scania in these countries – from upskilling mechanics to regular driver training sessions.”

He concludes: “I have been in this position for a year and a half, and during this time we have had record sales of our vehicles, along with our after-sales market, during a time when the company was being restructured. Elections over the next year in these regions could impact on our business model, but we will carry on doing what we are good at doing.”

Scania SA has established markets in Botswana, Namibia, Zimbabwe, Zambia, Malawi and Tanzania

TWA | Mar/Apr 2013

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REGIONAL NEWS ZIMBABWE

Major road upgrade and tolling study

A FEASIBILITY STUDY to determine the viability of the upcoming construction and tolling of the Harare-Beitbridge road is being undertaken by Royal HaskoningDHV. Phil Hasluck, project manager at Royal HaskoningDHV, says the study will be carried out in association with five Zimbabwean partner firms and will involve traffic studies, development of a toll strategy, engineering analysis and concept design, environmental impact scoping, economic feasibility study, financial modelling and preparation of draft project information memorandum for investors.

The Harare-Beitbridge road is part of the trunk road network of Zimbabwe, which is a part of the

ZAMBIA

Statistics show that Chirundu OSBP is successful SEVERAL YEARS AGO, Chirundu was identified by the World Bank’s sub-Saharan Africa Transport Policy REC Transport Coordination Committee SSATP REC-TCC as the border in Southern Africa to be piloted as a one-stop border.

After many deliberations and infrastructure upgrades, it was made into a one-stop border post (OSBP) three years ago.

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TWA | Mar/Apr 2013

North-South Corridor – one of the major arterial links in the regional road network. The road is the most direct link between the capital cities of Harare and Pretoria and provides landlocked Zambia with access to the Indian Ocean ports of Durban and Richards Bay in South Africa.

“The road carries between 1 000 and 5 000 vehicles per day, with the heavier flows in the proximity of Harare. Of significance is the fact that a high proportion of this traffic is trucks carrying goods, equipment and machinery needed to support the Zimbabwean economic recovery,” says Hasluck.

The road project is approximately 580 km long, starting just outside Harare and ending at the

Since that time, there have been continuing interventions to sort out the many problems in converting to an OSBP. These interventions seem to have been successful, since there has been a 36% reduction in transit times over the past two years, In roughly the same period, the truck flow has increased by 65%.

This is a very good result and shows that the move to one-stop is most beneficial.

Beitbridge border post. It is a single carriageway two-lane road with numerous bridges, some of substantial size. Although well maintained in the past, the road is now over 40 years old, bumpy and dangerous in some places, and is rapidly deteriorating under the increased heavy vehicle traffic. Alternatives to improve it as a single carriageway road or to add certain sections as dual carriageway will be assessed.

The anticipated cost of rehabilitating and improving the road is in excess of US$600 million (R5.34 billion), some of which will be funded as a loan against revenue from the tolls.

REGIONAL NEWS ZIMBABWE

Zimra to introduce vehicle registration at border posts

THIS YEAR, FINX-ZIMRA will introduce vehicle registration at ports of entry to enable the public to leave the border posts with number plates.

In his keynote address at the International Customs day commemorations, held under the theme ‘Innovation for customs progress yesterday’, commissioner-general Gershem Pasi said the move is meant to ensure the decongestion of Zimra’s inland offices and bring one-shop clearance for imported motor vehicles. However, Pasi said the use of bank

cards at border posts and airports still needed to be looked into, as moving around with huge amounts of cash inconveniences travellers and puts them at risk.

“Let me take this opportunity to reiterate that as Zimra, we will do everything within our means to play our part at the ports of entry and exit diligently in order to portray a positive image of Zimbabwe,” said Pasi.

Pasi, however, said this would only be achieved if the border infrastructure is rehabilitated, particularly at the Beitbridge Border Post.

“If infrastructural challenges at the border post are addressed, our strategies as Zimra to facilitate smooth trade and travel will bear more fruits.”

According to the African Development Bank, the Zimbabwe government loses between US$30 million (R266.25 million) and US$35 million (R313.25 million) annually in waiting time and transaction costs, as

ZIMBABWE

Zimbabwe driver’s licence THE RUMOURS THAT South Africa requires all drivers from Zimbabwe to hold an International Driver’s Licence has been answered by Gavin Kelly, technical and operations manager at the Road Freight Association of South Africa, who states: Regarding the requirement for Zimbabwean drivers to hold an International Driver’s Licence, the National Road Traffic Act (NRTA), Act 93 of 1996 (as amended) states the following in terms of PRESCRIBED territory: Section 1 definitions ‘Prescribed territory’ refers to the Kingdom of Lesotho, the Kingdom of Swaziland, the Republic of Angola, the Republic of Botswana, the Republic of Malawi, the Republic of Mozambique, the Republic of Namibia, the Republic of Zambia and the Republic of Zimbabwe. Regulation 110: Conditions for acknowledgement and exchange of driving licence not issued in terms of the Act, and international driving permit: 1) Subject to sub-regulation (1A) and (3), a driving licence referred to in section

23(1) (a) of the Act, issued while its holder was not permanently or ordinarily resident in South Africa shall, for the period, and subject to the conditions under which it was issued, be deemed to be a valid licence for the purposes of Chapter IV of the Act, if: a) i) the licence has been issued in an official language of South Africa, or ii) a certificate of authenticity or validity

congestion and cumbersome customs procedures take their toll on trade.

Beitbridge Border Post is largely regarded the busiest inland point of entry in the SADC region as it is the gateway to Africa’s largest economy, South Africa.

Pasi also noted that Zimra was working on forming partnerships with the business world and a memorandum of understanding was being worked on, which would include different sectors in the business world. He said by 2014 the authority and the sectors would have reached a consensus.

It was mentioned during last year’s International Customs Day Commemorations that Zimra would like to introduce a canine unit and Pasi said he was pleased that the organisation had managed to meet this goal with the assistance of the Zimbabwe Defence Forces and the Air Force of Zimbabwe.

He said the canine unit was a necessity as it will aid in safeguarding civil society from dangerous substances like drugs, which could harm them or the environment.

relating to the licence issued in an official South African language by a competent authority, or a translation of that licence in such official language, is attached to it b) such licence contains or has attached to it, a photograph and the signature of the licence holder.

The regulation refers to a driver’s licence and an international driving permit – you will note the wording “driving licence” and not “international permit” is used when validity is determined.

TWA | Mar/Apr 2013

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REGIONAL NEWS SOUTH AFRICA

DHL optimistic for the African air c argo iindustry ndustry iin n2 013 cargo 2013

STABLE GROWTH WITHIN the air cargo industry in Africa is likely to be recorded in 2013, despite the current global economic uncertainty, says Charles Brewer at DHL Express.

Brewer believes single digit volume growth in the short term will be as a result of the traditional oil and energy sector, increased consumer spending and economic activity, which remains the main driver of air cargo traffic on the continent.

“Within the sub-Saharan region, routes between Nigeria, Ivory Coast, Ghana, Kenya, South Africa, Tanzania, Mozambique, Ethiopia and Uganda will grow as a result of major investment into those markets and their positive economic indicators, as well as other factors, including oil and gas finds, or regulatory changes.

“In 2013, according to our own data and volume trends, we predict that South Africa’s main trading partner within Africa will be Nigeria due to the high volume of technology and electronic goods shipped into that country. From a global perspective, sub-Saharan Africa’s fastest growing partner will be the Asia-Pacific region, which has recently instituted new ties with Africa as it looks to secure sources of raw materials to fuel the future expansion of the region.”

Brewer adds that one of the major challenges South Africa could face is in the labour sector.

“We saw a major strike in 2012 that crippled most of the transport industry. While we were still operating, this had a significant impact on our business – the labour environment is a challenging one in Africa, and South Africa is no different.”

SOUTH AFRICA

Barloworld logistics acquires a controlling stake in Manline BARLOWORLD LOGISTICS’ DEDICATED Transport Services division has merged with Manline, the diversified logistics provider specialising in transport and other logistics solutions.

The merged business will become Barloworld Transport Solutions, a 50.1%-held subsidiary of Barloworld Logistics. The transaction involved the disposal of Dedicated Transport Services, together with a R40 million cash contribution, in exchange for shares in Manline.

Martin Laubscher, CEO of Barloworld Automotive and Logistics, says: “This transaction is an exciting development that provides Barloworld Logistics with an expanded platform for growing the transport business across Southern Africa. It forms an important part of our overall strategy to build a leading integrated logistics business.”

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TWA | Mar/Apr 2013

MOZAMBIQUE

Vanguard moves 130 t transfformer or in record time

VANGUARD, A COMPANY specialising in complex relocations, has transported a 130 t transformer in record time over a distance of 2 300 km on roads with poor infrastructure as well as over a steep mountain pass.

An emergency replacement transformer was required at the Cahora Bassa power station in north-western Mozambique and would have taken three months to both plan and deliver.

Vanguard, however, managed to plan and execute the move from Johannesburg to the power station in three weeks.

To move the 130 t transformer, Vanguard configured an 18-axle trailer to a Mercedes-Benz 4150 Actros with a gooseneck, which was ideal for crossing the majority of 27 en-route bridges.

“For bridges not rigid enough to support the transformer’s 130 t load, we worked with BKS and WBHO to construct temporary low-lying bypasses from sand and gravel,” says Vanguard’s MD, Bryan Hodgkinson.

The last stretch of the journey took the cargo up the Serra Songa mountain pass, which features a 35% gradient in certain places and sharp S-bends.

“The 49 m trailer and prime mover combination was too long to get around the bends, so we transloaded the transformer at the base of the pass, reconfigured the trailer into a more manoeuvrable seven axles and hauled the load cautiously up the final climb,” describes Hodgkinson.

A number of contractors were hired by the project’s main consultancy firm, BKS Group Mozambique, to complete the relocation before the start of the rainy season, which would have severely impacted on the construction of the temporary bypasses. Subcontractors included WBHO, which assisted with the civil construction of the bypasses; Calmark Solutions, which handled the border crossings from South Africa to Zimbabwe and from Zimbabwe into Mozambique; and ALC, which handled the route survey.

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Trucking economy across SA

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"Truckers and supply chain logistics service providers want more than a truck. They want added value"

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%UXFH 'LFNVRQ, Deputy CEO, MAN Truck & Bus SA 3

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UD TRUCKS

Local industry set for marginal growth in 2013 Jacques Carelse, MD of UD Trucks Southern Africa, outlines to Simon Foulds what the company has been doing to ensure it continues delivering transport solutions to its customers.

“W

E ARE VERY pleased with the growth in the export market during 2012, as it is evidence of the great potential still lingering in the Southern African truck market,” says Carelse. “It is, by now, well-known that many of Africa’s economies are consistently growing faster than those of almost any other region in the world. With that comes aspects such as increased infrastructural development, which subsequently leads to a greater need for trucks.”

Since taking on increased responsibilities for the region, UD Trucks Southern Africa has expanded its footprint to include more than 60 dealers in the Southern African region, including Botswana, Burundi, the Democratic Republic of the Congo, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.

“We believe our strength lies in the fact Jacques that we are able to offer Carelse, MD, UD Trucks Southern African fleets the support they need wherever they are in the region. In addition, we are focused on balancing the cost involved in

“We believe our strength lies in the fact that we are able to offer Southern African fleets the support they need wherever they are in the region.”

12

TWA | Mar/Apr 2013

operating a fleet, with the products and service efficiency we offer,” he adds.

Marginal growth in 2013 “Even though the market finished 2012 in the black, it was certainly a year filled with many challenges, which placed a damper on domestic truck sales,” continues Carelse.

“Macroeconomic factors like the ongoing eurozone debt crisis and lower business confidence levels, as well as widespread labour unrest throughout the year, saw truck sales fall around 400 units short of the industry forecasts made at the beginning of 2012.”

According to Carelse, total truck sales are expected to continue to grow in 2013, albeit at a low rate of around 3.78%, to 28 114 units.

“We expect the market to be down during the first six months of the year, with a recovery forecasted for the latter half of 2013 due to the delayed positive effect of the re-election of President Obama in the US and an increased local understanding of the eurozone debt crisis,” explains Carelse. “By July, business confidence should settle down once again, if the various countrywide labour disputes are effectively addressed.”

All segments are expected to grow during 2013, with medium commercial vehicles forecasted to retail around 10 100 units, a 7.8% growth on 2012’s results; heavy commercial vehicles by 6.1% to 5 250 units; extra-heavy commercial

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vehicles by a slight 1.2% to 11 614 units; and bus sales by 5.3% to 1 150 units. AMH is excluded in this forecast as it does not report segment details.

in the upgrade and establishment of facilities around the Southern African region and new key dealerships will be opening in Rustenburg and Pretoria during 2013.

UD Trucks in 2013 and beyond

A focus on training

In 2013, UD Trucks Southern Africa will continue its drive to offer customers trucking solutions that suit their specific business and operating conditions. For this reason, the company is currently planning, researching and testing a new range of vehicles that are set to change the way Southern African fleet owners think about trucks.

“To us, trucking is so much more than just owning a truck. It is about being there when our customers need it most. About not compromising on the essentials, and offering products and services that potentially generate the most profit for our customers,” states Carelse.

Part of the world’s second largest trucking company, UD Trucks Southern Africa is able to offer customers the best of three worlds.

“By combining the power of our Japanese heritage of quality engineering and manufacturing with the global strength, modernity and resources of the Volvo Group, and adding our local expertise, skills and support, we are in a very unique position to offer customers the transport solutions they need,” said Carelse.

As part of this commitment to its customers, UD Trucks’ extensive dealer network has invested more than R100 million

Over the past three years, UD Trucks Southern Africa has invested more than R9 million in the training of staff and members of the community. The company is currently training 180 students in a variety of fields, including diesel mechanics, sales and parts consultants, service advisors, industrial and mechanical engineering, as well as a number of experiential learners in HR, marketing, finance and IT. UD Trucks also offers a unique training initiative for disabled learners, with the new graduates gaining a National Certificate in Manufacturing, Engineering and related industries.

“We believe in the vital importance of training and investing in the future of our employees and surrounding community,” says Carelse. “We aim to provide ongoing developmental opportunities that not only allow us as a company to achieve our business objectives, but also reduce the unemployment rate in the country and close the skills gap in South Africa and within the company itself.”

“To us, trucking is so much more than just owning a truck.

It is about being there when our customers need it most”

TWA | Mar/Apr 2013

13

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UD TRUCKS’ QUON GW26 410

First impressions This is the first of a series of articles where Simon Foulds intends being in the cab of a truck, experiencing what it is like keeping the wheels of the economy turning.

S

ITTING IN THE CAB of the Quon GW26 410 TT towing a 34 tonne payload and a GCM at 49 tonnes along an established test route, taking in the highways and byways of northern Pretoria in normal traffic conditions, is a breeze. As you effortlessly traverse the winding windin roads and hilly terrain of the country roads, you realise that this is what trucking is all about. abou At all times you have great visibility all round, which wh is critical when driving on South Africa’s roads. This truck tractor 6x4 extra-heavy vehicle is capable of handling your typical South African road condition with w ease, when towing a full load.

The UD Trucks’ GH13 engine is a 13-litre in-line 6-cylinder 6-cylind turbo-intercooled engine. This is a Euro 3 engine that offers a more environmentally friendly option as it decreases an operator’s carbon footprint.

The automatic gearbox effortlessly ensures the terrain is tackled

At all times you have great visibility all round, which is critical when driving on South Africa’s roads

14

TWA | Mar/Apr 2013

with ease. These automatic derivatives have innovative features like Easy Hill Start.

The Voith retarder, which has a braking torque of 3 250 Nm, slows the vehicle with ease, maintaining a steady speed on the decline without the vehicles running away from you, especially with a full load on the back of the horse. It offers a range of speeds for peak deceleration torque.

The ability to freewheel on a decline and be in control of the truck is great and to engage the gears while freewheeling takes a slight touch of the automatic gear lever.

The seats are firm and ergonomically designed to ensure both driver and co-driver are comfortable and able to see what is happening in their immediate vicinity.

The cabin itself is available in two variants, depending on what your business needs are and the height of the load box on the horse.

All new Quon trucks are accompanied by UD Trucks’ Managed Maintenance initiative. Through Managed Maintenance, UD Trucks provides the company’s complete management and overseeing of all repairs and service costs on behalf of its customers.

Tailor-made for South African road and operating conditions, the vehicle is a culmination of extensive customer feedback and local engineering trials. The Quon also adheres to stringent local requirements Standard features on this model, with a standard roof, is seating for two, one bunk, air conditioning, radio/CD, onboard computer with multi-display function and a speed limiter at 90 km/h.

In 1912, this specialised Scania was one of the very first motorised fire engines.

We’ve been supplying fire and rescue vehicles to governments for over a century and today we’re proud to be trusted in everyday life-saving situations in over a hundred countries.

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SCANIA

Top Team 2013 But this is what Scania’s Top Team competition is all about. Pitting its service teams from across the Southern African region against one another in a fun-filled yet educational event where service-related problems are given to each team to compete successfully in the shortest possible time.

Teams from South Africa, Zimbabwe, Botswana, Namibia and Tanzania all competed at the forth national Top Team event.

Nineteen teams participated in the first two rounds, which consisted of two questionnaires comprising 60 technical and safety questions. From these rounds, the top six teams were chosen to vie for the title of Scania’s Top Team 2013 in Southern Africa.

The six teams each consisted of three to five members and were made up from the workshop and parts personnel from the respective dealerships.

At this year’s regional RESULTS finals the six teams com• Toivo Tangeni Shiimi peting were: 1st Place: Welwitschias • Lohmeier Angula Shipiki 1.The Welwitchais from (Namibia) • Iipumba Junias Shiningayamwe • Josua Gawanab Namibia • Lawrence Nkanyani 2. Bulawayo Five from • Tjaart Van Der Walt 2nd Place: Team High Zimbabwe • Lionel Ferreira Range (Rosslyn) • Thokozani Msweli 3. Harare Eagles from • Pierre Grobler Zimbabwe • Casper Yssel 4. Rosslyn Boys from • Mohamed Saleem 3rd Place: Rosslyn Boys Rosslyn • Gerald Dube (Rosslyn) • Thomas Mapasha 5. Team High Range from • Calvin Ngomane Rosslyn • Sympathy Chikukwa 6.

Cheetah’s from 4th Place: Harare Eagles • Gift Guri Bloemfontein.

(Zimbabwe) • Tafadzwa Mapunga • Thomas Mugwagwa The winning team will • Van Zyl Bruwer compete against five other 5th Place: Cheetahs • Johannes de Jager teams from Argentina, (Bloemfontein) • Derick Patricio Brazil, Peru, Uruguay and •Elias Rakauoane Dubai. The top two teams • Blessmore Mukize • Moses Mbofana from this event will proceed 6th Place: Bulawayo Five • Miracle Nyathi (Zimbabwe) to Scania’s world final, tak• Tongai Chinhamo • Patrick Gowara ing place in Sweden in E A L I N G November this year. with technical The practical on-site secissues from customer vehicles on a daily basis tion of the competition took place in February, and the winand delivering an efficient service day after day ners were announced and given their respective prizes at a means nothing if you crack under the pressure of working gala dinner that same night. with a team of colleagues in a completion environment.

Other than the opportunity of representing the region in

There was an air of nervous excitement at Scania’s Aeroton premises as the top six teams in the country gathered for the Top Team challenge of 2013. Not only were the reputations and bragging rights at stake, but so was the opportunity of representing Scania Southern Africa at the semifinals in Brazil.

Above Toivo Tangeni Shiimi, Lohmeier Angula Shipiki, Iipumba Junias Shiningayamwe, Josua Gawanab

16

D

TWA | Mar/Apr 2013

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Brazil, the following prizes were on offer in the Southern African leg: • 1st Prize – R7 500, a gold medal and a team trophy • 2nd Prize – R5 000, a silver medal and a team trophy • 3rd Prize – R2 500, a bronze medal and a team trophy • 4th Prize – promotional gifts and a medal • 5th Prize – promotional gifts and a medal • 6th Prize – promotional gifts and a medal.

The concept behind the Top Team event is for Scania’s service staff to develop their skills by combining training and teamwork within a competition environment. In the long run, this is beneficial to Scania customers as it expands

the scope of the participating employees as knowledge is shared among the team members, inspiring them all to be an integral part of the Scania business, thus increasing the competence level of the service personnel and strengthening the brand among them.

Congratulations to the team from Namibia, which travel to Brazil in June.

Left Scania’s Gideon De Swardt explaining the purpose of this exercise Above Team members analysing a problem

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TRUCKERS

The importance of driver training ”The average South African road user is 32 times more likely to die in a traffic crash than the average United Kingdom citizen,“ says Rob Handfield-Jones, MD of driving.co.za.

“

The need for skilled drivers in South Africa and the rest of Africa is crucial but there are many challenges to overcome

18

This is only one reason why driver training in South Africa should be regarded as a very important contributor to a company’s overall CSR (corporate social responsibility) strategy.”

Properly trained drivers are also more adaptable to certain road conditions and varying circumstances, which greatly reduces their risk of causing or avoiding an accident. Through driver training programme, a driver is exposed to the potential dangers experienced while driving and informed of potential hazards that they may face. Drivers are taught to take note of various road, weather and visibility conditions, and adjust their speeds and driving technique accordingly to suit each situation.

Gavin Kelly, the Road Freight Association’s technical and operations manager, adds: “The training of drivers, irrespective of current road conditions, is always an important facet in the efficient and safe transportation of freight through our country and the rest of the continent. Drivers are faced with a greater challenge than bad road conditions every day – and that is the behaviour of light motor vehicles in and around the traffic that freight vehicles find themselves in.”

Vehicle technology and vehicles themselves are always progressing and drivers should be regularly trained to keep up to date with this. Vehicle technology is progressing rapidly and the modern vehicle offers the driver many aides and assistance.

According to Gary Clackworthy, operations director of the Advanced Driving Institute: “If the driver does not understand these systems, they cannot be expected to use the new technology successfully. Modern collision avoidance systems (CAS) and other technology sometimes lull drivers into a false sense of security. Regular training is essential where drivers are exposed to and understand all modern features of vehicles along with their limitations.”

States Kelly: “The RFA has an approved driver training provider programme aimed solely at ensuring that good basic driving skills are covered. In addition, the RFA requires that training is done on modern vehicles (many driving

TWA | Mar/Apr 2013

institutions use outdated vehicles) and that driving is done under different load and weather conditions. This has always been an issue – that drivers are trained on systems that have long been phased out and that the learner-driver never gets to experience the difference between an empty, half-loaded and fully loaded vehicle where the manner in which a vehicle performs is drastically changed.”

The RFA also requires its approved driver training centres to offer additional skills such as loading and off loading vehicles as well as being educated on delivery scheduling, learning some basic customer skills and other tasks related to being involved in a freight and logistics operation.

There is, however, a shortage of skilled and trained drivers in South Africa with less than 1% of South African drivers attending post-license training every year, which means that 98% of South African drivers are under-skilled. There are several reasons why there is a general shortage of drivers, let alone skilled drivers, including extremely challenging working conditions – especially long distance and cross-border, and the easy targeting of trucks by criminal elements makes for an unsafe working environment. Another factor is the stress of getting through severe traffic conditions in peak hour transport and the continual negative pressure from the general public against trucks has its own psychological impact on those who would want to try to get into the road freight industry.

The need for skilled drivers in South Africa and the rest of Africa is crucial but there are many challenges to overcome.

Handfield-Jones says: “In the real world, probably 40% of all drivers have irregular licences, meaning bought, forged or illegal. As a country, our first priority should be to get those people up to licence standard before we even start thinking about post-licence training or refreshers. The solution is to overhaul the licence curriculum to include more defensive skills and make the five-yearly licence renewal contingent on an actual driving skills test. The infrastructure to do this exists; what is lacking is the managerial competence within the Road Traffic Management Corporation (RTMC) and the political will from the minister of Transport.”

Kelly concludes: “The RFA has communicated the need for driver training to be done by a professional system under the auspices of the association (as is done in the UK and the US) as well as allowing the industry to manage and monitor the efficiencies of driver training programme as implemented by the industry. Numerous workshops within the industry, including related stakeholders, have arrived at the same conclusion: training needs to be relevant and managed by the industry where the correct approach and processes can be followed.”

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STREAMLINING OPERATIONS

BHL expands Zambian fleet with FAW

C Below (left to right) Tom Mennie (Cargo Carriers); Murray Bolton (Cargo Carriers); Buks van Rensburg (BHL); Elrick de Klerk (BHL); Garth Bolton (Cargo Carriers)

20

ARGO CARRIERS’ SUBSIDIARY BHL has expanded its fleet with the purchase of 80 FAW trucks from China.

BHL’s MD, Buks van Rensburg, says: “The new FAW trucks from China are considerably cheaper than equivalent alternatives.”

Going directly to the source has enabled BHL to reduce its costs structures, giving it a competitive edge in Zambia’s logistics industry.

“After testing the FAW trucks in Zambian conditions, we found they are suited to the African terrain and have far better fuel consumption (about 8%) than their nearest competitors.

It’s a big win all round given the rate at which input costs are rising and the state of the world economy.”

BHL provides logistical solutions for the mining, manufacturing and agricultural sectors in Zambia, and operates in Zambia, Namibia, the DRC and Mozambique. Cargo Carriers acquired a 55% stake in BHL in June last year and the new partnership is well on its way to achieving its immediate goals.

Cargo Carriers is enabling BHL’s rapid expansion, while

TWA | Mar/Apr 2013

BHL gives Cargo Carriers a broader footprint in sub-Saharan Africa and the chance to take advantage of the boom in the Zambian mining industry.

The purchase of the FAW trucks is an important sign of both Cargo Carriers’ and BHL’s intent. It allows BHL to replace ageing vehicles and increase its fleet from 75 to 126 trucks while boosting the company’s business by 60%.

The savings achieved by the direct-from-source purchase will add further value to the partnership and have significant impact for the Zambian job market (160 new jobs have already been created by BHL’s expansion). Efficient cross-country and cross-regional transportation will encourage Zambian businesses to seek new opportunities both inside and outside the country, stimulating local business expansion.

The expansion of Cargo Carriers and BHL bodes well for current and future customers, as well as for international companies seeking to take advantage of the high growth opportunities that Africa offers. They will now be able to rely on global best practice logistics partners that have the expertise, the local knowledge and the access to capital to partner them strategically in Central and Southern Africa.

volvo TRUCKS. driving PROGRESS www.volvotrucks.co.za

SUPPLY CHAIN LOGISTICS

Transport dynamics in sub-Saharan Africa Supply chains are becoming global and complex. The logistics, especially the transport functions, are equally becoming convoluted. The logistics, being one of the biggest contributors of a nation’s GDP (12.7% in South Africa) in developing countries and its management, are vital for a growing economy. By Dinesh Kumar

T

HE INTERNATIONAL MONETARY FUND (IMF) recognised the BRICS (Brazil, Russia, India, China and South Africa) nations as the only nations to maintain growth during the financial crisis of 2008. The intra-trade between the BRICS nations has made its mark in global trade. South Africa also enjoys successful trade with SADC countries. With these potential opportunities for trade, we need to scrutinise the effectiveness and efficiency of the South African logistics and transport sector.

In 2012, the World Bank ranked South Africa 24th out of 150 countries on the international logistics competitiveness index, which is much higher than the other BRICS nations (with China being the closest at 30th place). While this is positive news, when Dr Dinesh Kumar, Associate the domestic logistics Director and Head, Supply Chain & Procurement costs were compared, Management Consulting South Africa was ranked 124th – the lowest among the BRICS nations. Two major causes of such high costs were non-existent multimodal transport setup and fragmented transport industry in terms of geographic footprint.

The function of the transport sector to tackle such diversified requirements, locally and regionally in Southern Africa, is imperative. The most frequent mode of transport used is road (between 80 and 90% on average in sub-Saharan Africa), thereby creating additional pressure on the economy to invest further in such infrastructure.

Road density is low and is an indicator of connectivity within a country. Typical road density is just 9.9 km/1 000 km2 for low-income group countries and more than 52 km/1 000 km2 for middle-income countries. This affects the state of the roads, as more vehicles are forced to use the same roads, with no alternative routes available. The deteriorating road

“Countries of sub-Saharan

Africa are underendowed with passenger and freight terminals, airports and runways.”

22

TWA | Mar/Apr 2013

quality in South Africa can have a negative effect on logistics activities with an emphasis on vehicle operating costs.

Road density and logistical performance are relatively low in sub-Saharan Africa, contributing to the higher cost of exporting goods from sub-Saharan African countries compared to other countries – US$1 974 (R17 371) per container, compared to a median estimate of US$732 for Asian countries. Lead time in comparison is 30 days for South Africa and 13 days on average for developed nations.

Rail, on the other hand, is not geared to support local and regional economic growth. Rail structures are more than 100 years old and are undermaintained. This is not adequate when competing against the modern road networks that are increasingly being built in major corridors. When compared with other BRICS nations, South Africa stands the lowest in the usage of the rail networks.

The other two modes of transport – ports and airports – are not adding to the success of the economy. African ports are characterised by old equipment, which negatively influences the cargo processing time. Cargo transhipment sometimes adds to increased delivery times because it lengthens transit time and adds to inventory costs.

Countries in sub-Saharan Africa are under-endowed with passenger and freight terminals, airports and runways. The airline industry, particularly in Africa, is overtaxed, making it difficult to establish cheaper fares and constraining the development of the low-cost airline phenomena. Most of the airports are not suited to cater to the new generation aircrafts, which creates constraints in global and regional freight.

South Africa has to groom the local and the regional transport industry to deal with these challenges. The technology barriers and the skills shortage will add more to its worries.

South Africa has to ascertain the short- and the long-term goals and the journey ahead quickly from the dynamics of such industry within BRICS nations and embrace improvement guidelines in a short time frame before losing its marked stand in global trade.

SUPPLY CHAIN LOGISTICS

The non-tariff barriers The total number of non-tariff barriers affecting business within the Comesa, EAC and SADC regions is 566. Sixty of these are dealt with by Fesarta (Federation of East and Southern Africa Road Transport Associations), as they affect road transport.

T

hough Fesarta only became involved in resolving non-tariff barriers in 2012, it has managed to resolve a few: the 40 km/h speed limit in the DRC has been lifted, the hijacking of trucks in the Tete Corridor is being dealt with, Mozambique now allows 56 t GCM and Tanzania no longer charges Kenyan trucks a US$200 (R1 767.52) entry fee.

Fesarta also circulates a schedule, on a regular basis, showing which non-tariff barriers are prevalent in which regions and what is being done to solve the various issues.

Simon Foulds speaks to members of Fesarta to ascertain what issues affect transport operations in Kenya, the DRC and South Africa.

NON-TARIFF BARRIERS What are the most common non- tariff barriers that affect your company moving freight through Southern and Eastern Africa?

Jane Njeru, CEO of Kenya Transport Association

24

TWA | Mar/Apr 2013

Jane Njeru, CEO of the Kenya Transport Association – The most common non-tariff barriers are related to the management of border processes. The processes are characterised by numerous duplications of procedures. There is little, if any, cross-border cooperation between authorities of the various countries that our trucks transverse. Others barriers include corruption, mismanagement of weighbridges, too many road blocks and excessive charges.”

Lambert Tshisueka, director, Hermis Transport Logistics Lambert Tshisueka, a director at Hermis Transport Logistics, which operates a fleet of 140 Superlink trucks from the DRC – “In the DRC, high levels of corruption are seen as the norm as it happens blatantly. The procedures at the border take too long, which results in operators

adopting the ‘system’ of corruption just to keep on moving. It always seems the long winding queues at border posts never end as the procedures and controls are just too much.”

As an example, there are three main check points from the border of Kasumbalesa to Lubumbashi (border, Whisky and Kisanga), giving the impression of three borders within a 90 km distance, and every truck has to pay fees at each check point. The toll fees are the highest in the region and a round

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oil may have run out

7UDQV .DODKDUL &RUULGRU A viable alternative

&RPPXWHU UDLO In for an overhaul

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Heavy vehicle drivers take top honours

7UXFNHUV )RUXP

Road chaos to come?

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Investigating the Brazilian connection

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M N MA

Trucking economy across SA EXPERT OPINION EX

"Truckers and supply chain logistics service providers want more than a truck. They want added value" %UXFH 'LFNVRQ, Deputy CEO, MAN Truck & Bus SA 3

The @twaeditor tweets will keep you updated on all the latest, exciting and, of course, interesting happenings in the transport and logistics management industries.

RFA's Gavin Kelly speaks about

abnormal challenges ahead P16

ISSN 1684-7946 Jun/Jul 2012 Vol. 10 No. 3 / R35.00 incl. VAT

ISSN 1684-7946 Oct/Nov 2012 Vol. 10 No. 5 / R35.00 incl. VAT

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SUPPLY CHAIN LOGISTICS

trip to Kolwezi, 420 km from Kasumbalesa, can reach up to US$900. There are also too many controls on the roads, with a single check point involving as many as 10 to 12 government departments.

In Zambia, the toll fees for trucks from the DRC are high. In addition, there are council levies that are paid at every entry and exit point of Zambia. Zimbabwe has an environmental levy for any truck carrying unprocessed minerals, wood, etc.

Another issue of concern is that in the DRC, truck documentation (licence disks and roadworthy certificates) usually takes time to be issued and this is causing trucks to be penalised heavily for not having the correct paperwork by the other countries’ traffic police.

Gavin Kelly, technical director, Road Freight Association Gavin Kelly, technical director at the Road Freight Association – The delays at borders are caused by a myriad of authorities and range from bad work ethic, bad processes, incompetent officials, bad IT systems, bad workflow processes, poor infrastructure, inadequate infrastructure, poor communication systems, lack of electricity, corrupt officials, contradicting legislation and processes, new processes implemented without training/warning, vehicle breakdowns, over-zealous inspections, bribery and corruption.

How much extra do these non-tariff barriers add to your expenses and who ultimately pays for this? JN The non-tariff barriers make the cost of doing business twice as expensive because of the delays. The only way transporters make profits

26

TWA | Mar/Apr 2013

is by maximising on the turnarounds. The delays at the borders cause a trip, which under normal circumstances should take two days, to take three to four days. These extra costs are carried by the transporter and eat up the profit margins of their businesses.

LT As a transport association, we engaged various government departments that fall under our umbrella to tackle these issues, but nothing very significant gets resolved. Drivers had to close the border for some days just for some issues to be addressed.

GK Lobbying with whoever is LT These non-tariff barriers contribute to more than 50% of our expenses and at the end of the day these expenses are paid for by the end user.

JK It depends on the vehicle, cargo and contractual obligations (transporters lose money when the wheels are not turning, cargo owners charge demurrage, fines are incurred for delays, loss of return loads, increase in salaries and out of town rates). In the end the consumer pays – it all trickles back to the consumer. The operator pays upfront and many times is put out of business.

What have you been doing in your country to ensure these non-tariff barriers are no longer impediments to ensuring your company delivers freight with no additional costs? JN There are progressive efforts towards solving the border issues. The implementation of one-stop border posts with formation of joint border committees is expected to enhance international cooperation. However, the implementation is rather slow and the full effects are yet to be felt. The implementation of the single window system

by Kentrade is also expected to quicken the border processes by increasing efficiency in exchange of information. There have also been efforts towards public-private sector partnership.

responsible for these issues – from government to organisations – and having a system set up with SADC. The problem is that there has been very little success in getting these barriers resolved as most of them have a financial aspect linked to them – somebody makes money. The only recourse left to operators is to take the issue up themselves (as done elsewhere in the world), which can be anything from amicable agreement to boycotting of certain countries or borders.

In your view, is it possible to alleviate these non-tariff barriers in Africa, ensuring the flow of freight in Africa runs smoothly? JN It is possible to alleviate non-tariff barriers in Africa because many have been created by difficult government officials who render services with self-interests rather than the need to enhance trade in mind.

LT It is very possible to solve all these barriers if the SADC or COMESA pushes the different governments to harmonise all the customs procedures in the regions so that all the processes

are standardised. The ministries of transport of the different countries should also harmonise and respect what they agree for corruption to disappear.

GK Yes – one day. The operators (from all countries) will need to stand together and refuse to accept the state of affairs. The structured process doesn’t seem to be working (currently).

Are authorities in your country serious about tackling non-tariff barriers to ensure freight moves smoothly? JN There is commendable effort, but a lot is still left to be desired.

The Kenyan government introduced weigh-in-motion (WIM) equipment, but it is rarely calibrated. Transporters experience a lot of variances in readings from one weighbridge to another as they traverse through the country. There are also plans to weigh cargo at two points only, the point of loading and exit, to curb unnecessary delays. However, this has yet to be implemented.

LT A lot has been said but no action has followed.

GK Definitely not the C-BRTA or the Department of Transport. Lots of lip service is paid to this, but very little has been achieved. If this really is the case, then these authorities need to state that they cannot achieve anything, then disband and allow operators to solve the issues. In the end, supply and demand will prevail.

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SUPPLY CHAIN LOGISTICS

ONE-STOP BORDER POST

SARS perspective on border crossing One-stop border posts, in particular the Lebombo-Ressano Garcia border crossing, were the topic in the keynote address by Beyers Theron, SARS executive: Customs Modernisation Strategy and Design, at the Maputo Corridor Logistics Initiative’s AGM.

T

HERON OUTLINED HOW SARS is playing a positive role in assisting in creating one-stop border posts. “Unlocking the logistics corridor that makes use of the Lebombo-Ressano Garcia border crossing has been a matter of critical interest for both South Africa and Mozambique,” said Theron.

Over the years, there have been many studies driving home the point that delays at border posts not only increase the cost for stakeholders, but also stifle opportunities for growth and development. The World Bank’s Doing Business Report 2012 estimates that reducing the days needed to clear exports by half could enable a small to medium enterprise to increase profitability from 1.6% to 4.5%, a three-fold improvement.

According to Theron, the reduction of export costs by 10% through efficiencies in trade processes could increase exports by 4.7%. It is in this context that SARS, through the adaptation of sound risk management principles, is reinventing itself as part of an efficient supply chain, as opposed to its perceived previous role of essentially being gatekeepers stifling the flow of legitimate trade.

Customs modernisation journey

Beyers Theron, SARS executive, Maputo Corridor Logistics Initiative AGM

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SARS has embarked on a modernisation programme that involves many facets. Theron stated that this programme also aims at creating the freest possible flow of legitimate trade, while forcing effective risk-based intervention on illegitimate or perceived less compliant trade.

He added: “In benchmarking one-stop border arrangements there seems to be a tendency to focus more on infrastructural change to accommodate co-location, but very little on efficiencies in re-engineering of processes and capitalising on the opportunities that modern technologies offer. It is SARS’s view that in order to achieve the ultimate one-stop border environment, a holistic reform methodology is required that integrates policy, workflow processes and technology in order to create the much-needed facilitation benefits regional trade so desperately need.

“SARS is actively involved in establishing regional IT connectivity and data exchange

TWA | Mar/Apr 2013

to the extent that formal real time exchange of data may become a reality in the very near future, especially between Mozambique and South Africa.”

There are currently at least four one-stop border posts in operation in Africa with as many as 55 others in various stages of planning as African countries seek to unlock trade.

Theron said the expected benefits of the one stop-border post are clear: It will reduce border crossing time, allow for shared logistics costs between officials of the countries where it is sensible to do so and create a closer working relationship coupled with integrated workflow and data sharing.

Critical considerations According to SARS, there are four areas that are of fundamental importance for the establishment of any onestop border post. These are: • The need to ensure an enabling legal framework – aligned to international standards – with the relevant provisions and instruments in place to enable and manage jurisdictions and coordinated operations.

• The need to develop the appropriate infrastructure to support the implementation, ensuring efficient and seamless processing does not get bogged down by infrastructural models.

• To establish connected, seamless, end-to-end work processes and operating procedures in order to maximise efficiency, reduce duplicate and redundant processes, and establish joint standard operating procedures and policies.

• Ensuring interconnection of the ICT systems in order to support a coordinated risk management and realise

SUPPLY CHAIN LOGISTICS

seamless procession of data to improve border throughput and intervention management.

Challenges “Why, you may ask, is it taking so long at the LebomboRessano Garcia border crossing?” asked Theron.

“The primary reason for this is the complexity of establishing the international legal framework or basis that will allow for the sovereign laws of each state to be implemented within the other state’s territory. In terms of our legal context, this all needs to be incorporated into applicable domestic legislation so that officers deployed on foreign territory may lawfully act.”

He added that it is not simply a matter of placing customs officials together in a building near the border and then processing the movement of goods, persons and conveyances.

Each officer deployed by each administration needs to be able to perform all functions fully and without hindrance, regardless of whether they happen to be on “home” territory or on foreign soil. Each decision that is made on foreign soil to release, detain, search, inspect, arrest and/or intervene in some other manner needs to be made as lawfully as if it were made on own soil. The courts need to be able to adjudicate on all matters related to a border crossing to which domestic legislation has been applied, again without there being any hindrance because the processing took place on foreign soil.

There are at least nine primary agencies involved in aspects of border control management at ports on South Africa’s side of the border alone – each with their own mandate and legislative framework.

Theron stated: “At each port of entry, immigration procedures are required for human traffic, and customs procedures are carried out for goods traffic. Each of these procedures requires a careful balancing

of the needs of security and the facilitation of the movement of goods and people. The prevention of the illicit movement of goods and people is carried out jointly by the Department of Home Affairs, SARS and the South African Police Service – with critical input from the State Security Agency.

“At the same time, the movement of both people and goods needs to ensure that our agricultural sector and our people are protected from harmful diseases that may be carried over the borders. These border control functions are conducted by officials from the Department of Agriculture and the Department of Health.

“Coordinating this in one country between members of the same administration is challenging enough. Consider another country with a different domestic legal system, international law and different languages, and you will have some idea of the long road we have been travelling.

“It should also be taken into consideration that this is completely new ground for both countries, involving a key transport and logistics environment critical to trade. Everyone wants to make extra sure that we are getting this right.”

Where are we today?

Theron concluded: “As stated before, the potential benefits to a key shared trade route have been the subject of much discussion for a very long time.

“In this endeavour, SARS will do what it can. We are, after all, both an interested party – given our customs mandate – as well as a facilitator that has to satisfy others given our current role as custodian of operational coordination through the Border Control Operation Coordinating Committee. Onestop border posts are, after all, multidisciplinary environments and it is through our partnership with our counterparts in Mozambique and stakeholders such as the Maputo Corridor Logistics Initiative that we can continue to ensure we fully realise this potential.”

TWA | Mar/Apr 2013

29

SUPPLY CHAIN LOGISTICS

FLEET MONITORING

Optimising operational costs Fleet management and driver monitoring technology are important aspects in any transport operation, no matter the size or scope.

Simon Foulds speaks to some of the industry’s leaders to find out how fleet operators can benefit from this technology, especially with ever-increasing operational costs.

C

ONCERNING THE IMPORTANCE, Gert Pretorius, MD of MiX Telematics: Africa-Fleet Solutions says: “Implementing an effective fleet management system is essential for fleet operators who aim to boost productivity and efficiencies, as well as health and safety levels. However, a significant amount of fleet operators are not fully aware of the technology available to them, nor is it being implemented to its full potential. To stay ahead in today’s competitive environment, it’s vital to make use of the tools available – and know how to use them to gain insights into your fleet operation.”

John Edmeston, MD of Cartrack South Africa adds: “Rising transport and fuel costs, toll fees, vehicle maintenance costs, hijackings and the challenges around managing driver behaviour are placing enormous pressure on fleet owners and companies to find effective and sustainable ways John of managing fleets, Edmeston, MD, Cartrack South Africa

“Ensuring the safety of

drivers and other road users, and minimising losses in an industry that operates on very tight margins is imperative and requires sophisticated fleet management and driver behaviour monitoring.”

30

TWA | Mar/Apr 2013

drivers and their driving habits while contending with time management, risk and variable maintenance and operating costs. Vehicle tracking with full telematics features is an essential requirement to achieve optimum fleet performance.

“Ensuring the safety of drivers and other road users, and minimising losses in an industry that operates on very tight margins is imperative and requires sophisticated fleet management and driver behaviour monitoring.”

Dean Andrews group marketing manager for Ctrack South Africa comments: “Drivers have a direct influence on most aspects of a fleet, i.e. productivity, client service, vehicle economics and costs. Fleet operators therefore have to know who, when and how their vehicles are utilised from the moment they leave their depots. Changes in legislation such as AARTO also put a legal obligation on fleet operators to know and to prove who was driving a vehicle in case of a traffic offence. Fleet operators make a living in an extremely competitive environment – so much so that their livelihood, growth and economic survival often depends on the cost they control, costs they reduce or productivity they improve.

Adherence to customers’ service level agreements is part of their daily routine and they must therefore have visibility and control on all aspects of their fleets.”

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Benefits

Below Important to have fleet management options at your finger tips

32

“Knowing where your drivers and vehicles are, coupled with having information on how they are performing, means fleet operators are in control of their fleet’s performance. The technology facilitates informed decision-making in a timely manner as well as the ability to take action and rectify issues like poor driving behaviour,” says Pretorius.

“In-cab technology transmits data on things like trip start and end times, trip duration, speeding, over-revving, harsh acceleration, harsh braking and excessive idling.

Monitoring these events in relation to the driver and/ or vehicle means operators can improve vehicle utilisation and driver behaviour. This data is accessible 24 hours a day through secure web and mobile applications.

“In addition, by being able to identify the vehicle closest to a customer site and assign jobs accordingly, fleet operators can accurately predict the time of arrival and better manage routes and delivery schedules. While improving customer service, this aspect also helps to save costs through becoming more efficient.”

Edmeston states: “Cartrack’s comprehensive range of fleet management solutions provide for efficient and accurate reporting and control of costs, allowing you to manage driver behaviour as well as draw accurate, real-time data for analysis and improvement planning. Cartrack’s fleet management systems provide the answers to the ‘how and why’ questions that allow for proactive planning and intervention, rather than simply monitoring distances travelled.”

Cost savings Pretorius says that on average, customers can benefit from a sustained 10% saving on fuel costs, which represents

TWA | Mar/Apr 2013

massive savings for many customers. “This benefit is critical considering that the rising cost of fuel is one of the biggest threats to fleet operations today. In Frost & Sullivan’s 2009 report, Demand for Green Telematics to Challenge Slowdown, it was pointed out that an effective fleet management system has the potential to influence up to 62% of operating costs.”

Andrews expands on this, saying: “Evidence suggest that fleets can achieve up to 15% reduction in maintenance costs, a 15% saving in fuel (via a reduction in unauthorised usage, more sympathetic driving and better routing), an 8% reduction in insurance premiums and a massive 35% reduction in accidents.”

Edmeston continues: “While economic changes may impact on the way we do business, fleet management solutions provide professional and sustainable solutions on how best to manage your fleet costs, driver behaviour and overheads. While the cost savings will vary from client to client depending on their unique challenges and circumstances, using fleet management solutions will have far-reaching benefits.”

The latest trends “It is evident that integration between various solutions is becoming more of a requirement from customers,” says Andrews. “Examples are the integration between telematics solutions, route planning and scheduling solutions, and execution management solutions. In modern times, it is critical to plan efficiently, schedule accurately, monitor in real time, have the ability to adapt quickly by making informed decisions and have the ability to debrief drivers quickly and effectively after a day’s events.”

Pretorius states: “The ‘greening’ of fleets is still an important trend, considering the environmental damage caused by the road transport industry. As pressure mounts for fleet operations to minimise their carbon emissions where possible, more companies – especially multinationals – will be required to report on their emissions.”

Edmeston concludes, saying: “Clients generally want a one-stop solution to their many and varied fleet management and vehicle recovery services and the trend is to provide a number of customised features and services that help optimise our services to a given client. In many instances, large transport companies will have existing systems supporting their logistics, such as mapping and route planning. In such cases the ability to integrate the tracking system data into the clients’ systems is important, as is providing a single holistic solution.”

Come and discuss the latest growth and infrastructure developments in the African transport sector

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SUPPLY CHAIN LOGISTICS

SAPICS - DESIGN FOR CHANGE

Supply chain solutions for a dynamic world This year’s conference promises valuable content incorporating both global and South African-specific issues.

A Below Temitope Ogunfayo, CPIM, group manager at Procter & Gamble, Nigeria, one of the speakers at SAPICS 2012

34

NY COMPANY, whether in the private or public sector, is only as good as the weakest link in its supply chain.

From large retail chains to government departments, meeting profit and service delivery targets is hugely influenced by the supply chain’s performance and how effectively and rapidly it can respond to unexpected change.

As a result, supply chain professionals are becoming increasingly sought-after resources. This poses the challenge of keeping the skills of these professionals current in an industry subject to continuous change.

“Supply chain departments and their staff are vital to the day-to-day operations of any organisation – and yet they also need to spend time on staying abreast of new technologies, standards and best practices from around the world,” says Liezl Smith, president of SAPICS. Companies, however, don’t always have the resources to pay for and allow time away from the office for supply sup chain professionals to attend the numerous events ev needed to fulfil this requirement.

“The SAPICS SAP annual conference offers a way for these the valuable professionals to hear lead leading international experts in the field, be benefit from case studies and network w with fellow professionals – all within a two-and-a-half-day time frame. It’s everything a supply chain professionals need to stay on top of their game each year,” says Smith.

T Terry O’Donoghue, director of SAP SAPICS, explains that this year’s confer ference is structured around the

TWA | Mar/Apr 2013

theme ‘Design for change: Supply chain solutions for a dynamic world’.

“The business environment itself is changing rapidly, as is the technology that it uses – with big implications for supply chains,” he says. “How does one build supply chains that embrace that change and create new sources of competitive advantage for our organisations?”

O’Donoghue says this year’s conference will cover broad trends affecting the profession, like enterprise mobility, as well as industry-specific issues.

There will also be a focus on peculiarly South African issues, such as the impact of the Aids pandemic on the logistics industry.

“Aids has decimated the most skilled cadre of drivers on whom the industry should be relying. In this case, the ability to get drivers trained and operational quickly is a competitive advantage.”

SAPICS is a professional association dedicated to helping organisations and individuals improve operational performance through supply chain education, certification and knowledge-sharing. It is closely allied with key global supply chain organisations such as the Institute of Business Forecasting, APICS (The Association for Operations Management), the Supply Chain Council and the Chartered Institute of Logistics and Transport South Africa and the South African Shippers Council.

“We tap into the enormous body of knowledge and expertise of our sister organisations to create an event that truly delivers value and gets delegates up to speed on global best practices,” concludes Smith.

The SAPICS annual conference will take place from 2 to 4 June at Sun City. Visit www.sapics.org to see the line-up of speakers and events, and to register.

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REGIONAL CORRIDOR FOCUS

TRANSPORT CORRIDOR

MCLI corridor update At the eighth annual general meeting of the Maputo Corridor Logistics Initiative (MCLI), co-chairmen Dr Mathews Phosa and Dr Antonio Matos outlined what has been happening over the past year on this corridor and the way forward.

Simon Foulds looks at what they said regarding the key aspects of the MCLI.

T

HE MCLI IS very much dependent upon the partnership of stakeholders, which stretches across the full gamut of the logistics supply chain, public sector and industry associations.

Much of MCLI’s operational activity was focused on supporting users with the implementation of key customs modernisation processes on the corridor. The implementation of Phase 3 of the SARS customs modernisation roll-out at Lebombo and the introduction by Mozambique of the Single Electronic Window at Ressano Garcia were both significant developments on this front.

Phosa said: “There is no doubt that the increased electronic interface and the pre-clearance options have had a significant benefit for truck turnaround times, despite the early teething problems. The long-term benefits of electronic clearing far outweigh the short-term agony of becoming accustomed to the new procedures.”

Dr Mathews Phosa and Dr Antonio Matos, co-chairmen, MCLI

36

2012 achievements Matos added: “The success story of the previous year’s partnership has to be the signing of amendments to Mozambique’s transit customs legislation, which was the result of a process of intensive consultation by stakeholders as well as the World Bank-funded report produced by MCLI on recommendations for changes to the legislation. The Ministry of Finance signed the amendments into effect in November last year. These amendments remove the requirements of the application of blanket bonds and guarantees to transit cargo and instead applies a risk management approach, which is crucial to facilitating the ease of transit into a third country. This has enormous implications for the Port of Maputo and for the corridor, as transit growth is critical to ensuring the corridor’s cost effectiveness by facilitating bidirectional cargo flow.”

According to Phosa, the MCLI has just completed an update of a 2010 document, which pulled together a range of critical information that strongly supports the rationale and urgency for a 24-hour one-stop border post at Lebombo-Ressano Garcia.

This document not only provides a factual and statistical update, but provides a matrix of actionable issues and potential solutions for the crisis at this border post. This document will be presented to the highest levels of government as well

TWA | Mar/Apr 2013

as the departments making up the Border Control Operational Coordinating Committee (BCOCC). The MCLI has also completed a study on the impact of the backlogs created by the lack of the 24-hour one-stop facility. This study, which is hard hitting and factual as opposed to an academic analysis of the border post, will be presented to the president of South Africa, as well as to every ministry that forms part of the BCOCC.

24-hour border post Phosa said he cannot understand why questions have been raised by the authorities as to the viability of operating the Lebombo Border Post for 24 hours. “Beitbridge has been operating a 24-hour border post for more than two years, while the Maputo Corridor, which has the port of Maputo operating 24/7 for 365 days of the year, still does not have a 24-hour one-stop operation. This cannot be good for trade and neither can it be good for creating an enabling environment for trade, deepening regional integration or pursuing the agenda of the Tripartite Free Trade Area (FTA), which is due for implementation in 2014. The Tripartite FTA is a precursor to the continental FTA, which is to be implemented in 2017. While both of these are ambitious plans, the energy with which the regional economic communities are pursing the FTA agenda is considerable and we cannot have a situation where we, on this corridor where traffic and freight growth continues to outperform all predictions, continue to muddle along for 18 hours, with backlogs of traffic flow causing two- to four-hour delays from 06:00 when the border post reopens after a six-hour closure. The South African government must finalise its part of the agreement with urgency.”

Phosa concluded: “Strategically, MCLI will be moving towards finalising a formalised public-private partnership with the corridor governments and the private sector at an institutional level. This is a crucial further step towards ensuring mutual accountability and speeding up delivery on this vital economic node.”

MCLI will host a top-level conference and exhibition in Maputo in October. This event will form the first of such events to be held on an annual basis and MCLI will shortly be announcing the theme for this conference.

In addition, based on the success of the direct stakeholder engagements with customs, MCLI will be hosting a series of sector-based meetings of member companies and stakeholders on the corridor.

design for change Supply Chain Solutions for a Dynamic World The Leading Event in Africa for Supply Chain Professionals

The economy is becoming increasingly globalised and, as a result, innovative supply chain management is central to commercial survival. Change in the way supply chains are managed, is both necessary and inevitable. Delegates at the 35th Annual SAPICS conference will be offered solutions to manage their supply chains more effectively. The Annual SAPICS Conference is designed to offer practical and relevant information by providing delegates with outstanding world-class educational presentations, the highly collaborative Africa CafĂŠ, select meet the speaker sessions, real world case studies and interactive workshops.

T: +27 (0)11 023 6701 | email: upavon@icon.co.za | www.sapics.org.za

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35th Annual Conference & Exhibition

AIR TRANSPORT

AFRICA

Expanding the industry During Air Cargo Africa 2013, the second biennial international air cargo conference and expo in Africa, Simon Foulds had the opportunity to interview Ram Menen, the divisional senior vice president of Emirates Airlines, about the state of the air cargo industry in Africa.

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Ram Menen, divisional senior vice president, Emirates Airline

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ENEN IS ONE of the founder members of the Emirates Airline and has headed its cargo division since its inception in October 1985.

According to him, the air cargo industry in Africa faces a number of hurdles, of which regulatory issues is the biggest one.

“The biggest issue is accessing the major markets within Africa. For the industry to expand on this continent, we need the various regulatory authorities to open up and liberalise the air so more trade can take place,” says Menen.

“Another problem we face is that cargo tends to be directional – going in one direction and nothing coming back, so the cost of providing a country with that particular service becomes extremely expensive. However, if air cargo was given more freedom to be able to reposition flights to be more flexible to pick up cargo, then costs would come down due to flights having return loads.

“Our challenge is that a large part of cargo is carried under the belly of commercial flights and because a number of countries turn down the rights for passenger traffic in order to protect their own national carriers, by default cargo is unable to be delivered to that particular country. What we would like is for countries to separate the two where airlines can maintain cargo rights without infringing on the passenger rights of a country’s national airline. It is short-sighted, but this is the way certain African countries operate.

“Every country likes to be export-driven and the very fact that certain countries close off this capacity defeats this object. At the end of the day you might save a few dollars for the national airline, but in the long run the country loses millions of dollars in business.”

Menen says this is just one of the issues which The International Air Cargo Association (TIACA) and the International Air Transport Association (IATA) are lobbying governments in Africa to address.

One aspect of the industry that Menen says he is proud of having been associated with was the

TWA | Mar/Apr 2013

forming of the Global Air Cargo Advisory Group, which has brought together the Global Shippers Forum, the International Federation of Freight Forwarders Associations (FIATA), IATA and TIACA, allowing them all to speak as one voice in lobbying governments on the continent.

“Prior to this, there was a lot of animosity between freight forwarders, airlines and shippers, but once we realised that we all share common problems, the various industries were able to work together as one voice in lobbying governments.”

Menen believes once African governments start opening the airspaces there will be a marked increase in intra-Africa trade, especially among landlocked countries. As for the future growth of the African air cargo market into the rest of the world, Menen believes this will come from routes into China and India being expanded over the next five to ten years.

Cargo at airports Asked about the capacity for airports to expand cargo areas, Menen states that the problem with most airports is that they concentrate on passenger traffic more than cargo, turning airports into shopping malls. He adds that in most cases cargo facilities are more of an afterthought and then the owners try and make the cargo facilities operate more efficiently and they struggle.

“I believe if airports do not have good cargo facilities then it restricts the growth of the city where it is situated. Also, if you go and spend money on building airports and have a restrictive market access policy then you do not have aeroplanes on the ground and your infrastructure becomes a white elephant.”

TECHNOLOGY

TRANSPORTATION TRACKING

Delivering 98% recovery rate

by Deon Bayly

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ITH THE CONTINUED high levels of theft and hijacking, securing vehicles and assets in transit has become a necessity for businesses in South Africa. Criminals are not only after vehicles, but often are more interested in the goods being transported, abandoning the vehicle as soon as is convenient.

Traditional tracking technology makes use of GPS transmitters hidden in the vehicle in an attempt to provide the location of the vehicle at all times. Unfortunately, the criminal element is aware of this and will often steal a vehicle and park it under a roof for a few hours to prevent the owners from tracking it via GPS. During this time, the thieves can trace the GPS device by following the wire linking it to the vehicle’s battery.

These devices require a significant amount of power to operate and therefore need to be hooked up to the battery at all times, making it fairly easy to find.

Transportation companies should rather consider smaller wireless devices with internal power sources. These can be

more easily hidden, even inside packages being transported, and remain independently active for longer, meaning they can be reused for multiple trips and in multiple vehicles.

Mtrack is a self-contained, self-powered wireless location unit that not only meets these criteria, but uses cellular networks to determine its location. Cellular signals are not as easily blocked in parking blocks or garages, making it harder to hide stolen goods and vehicles.

The size of the Mtrack device also makes it easy to hide and difficult to discover. Its minimal installation requirements mean the unit can be fitted into most assets quickly and covertly, and it is a fully portable solution that can be easily moved from asset to asset.

Possibly its best feature is that its battery lasts, on average, one year.

The unit can also be set to detect movement. The movement sensor capability allows the unit to go into alarm mode if it moves when it should not – such as when it should be spending the night in a warehouse.

Deon Bayly, MD, Electronic Tracking Systems

TECHNOLOGY

TRANSNET NATIONAL PORTS AUTHORITY

Protecting critical data In a digitally driven world, Transnet National Ports Authority’s (TNPA) data is critical for the state-owned entity to perform its mandated functions. Having an effective backup and restore capability is integral in protecting this data.

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DIVISION OF Transnet, TNPA controls and manages all commercial ports on South Africa’s coastline. It is the largest port authority in Southern Africa in terms of cargo volumes and is responsible for providing port infrastructure and marine services as well as ensuring the safe, effective and efficient economic functioning of the national ports system.

TNPA used to rely on users manually saving their data, an inefficient practice that left the organisation vulnerable to data loss. With an excess of 1 800 desktop and noteGareth Tudor, book computers across eight ports and the TNPA head office, this manual process relied heavily on human compliance. This changed at the end of 2011 when it awarded Altonet the tender to bring the whole process online.

Altonet’s CEO, Gareth Tudor, recently outlined how the company has ensured TNPA’s data is now secure.

“TNPA needed an intelligent, automated and secure backup solution. We were awarded the tender at the end of 2011 and we conducted due diligence in March 2012, ensuring that all hardware and software met requirements, after which the roll-out began. This was completed towards the end of 2012.

During this time we also provided an educational workshop for helpdesk staff to ensure that they are able to deliver support to users, should this be required.”

One of the most important requirements was for a fully automated solution that provided auto-scheduling of backups as well as fixed opportunistic backup, and which would run in the background without interrupting users.

Centralised management, strong encryption, version control and the ability to work in a virtual machine environment were also critical, as well as the ability to backup open files as well as saved files. Data deduplication technology was required to optimise storage capacity, along with support for multiple user profiles on machines, roll-out via Active Directory and support

“TNPA needed an intelligent, automated and secure backup solution.”

CEO, Altonet

for both 32-bit and 64-bit Windows operating systems. “TNPA also required the ability to lock user profiles, and specify attributes and file types that each user or group of users are required to backup. This helps to further optimise storage, ensuring that only critical business-related data is stored.

Back-end reporting was also required for visibility on all users, showing when backups occurred and how much data was backed up each time,” Tudor adds.

He concludes: “The biggest threat to business, with all employees working either on laptops or desktops, is a loss of data resulting from people not backing up their work. HP Autonomy Connected Backup minimised this risk by automating backup and ensuring that if data is lost for whatever reason, it can be swiftly retrieved. We are confident that the data is stored safely and that we are compliant with legislation around data retention. We have already seen the benefits of this by being able to quickly recover lost data and get TNPA staff back to full productivity in short order.”

Index to advertisers Africa Rail

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Engen

Cargo Carriers

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Imperial Logistics

OFC

Diesel Technic AG

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Mercedes-Benz SA

IBC

Mtrack

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DigiCore

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TWA | Mar/Apr 2013

OBC

19

Paramount Trailers

23

Scania South Africa

15 & 27

UD Trucks

IFC

Volvo Trucks

21

SAPICS

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