Intraregional supply chain solutions from producer to consumer

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Commercial Vehicles Nampo 2014

Supply Chain Logistics Becoming demand driven

Logistics Walvis Bay Corridor Group

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Frederick Hennop, Scania Botswana CEO – Holding the fort in Botswana P19

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The truck that thinks for itself!

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

Intraregional supply chain solutions from producer to consumer

INSIDETHIS ISSUE

COVER STORYActros: The truck that

thinks for itselfP6

Intraregional supply chain solutions from producer to consumer

ENDORSED BY

Commercial Vehicles Nampo 2014 Supply Chain Logistics Becoming demand driven Logistics Walvis Bay Corridor Group

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

Frederick Hennop, Scania Botswana CEO – Holding the fort in Botswana P19

ISSN 1684-7946 July/August 2014 Vol. 12 No. 4 / R50.00 incl. VAT

The truck that thinks for itself!

11 13

28

32 36

REGULARSEditor’s Comment Resilience pays! 2FESARTA International help with solving non-tariff barriers 5Cover Story Actros – the truck that thinks for itself 6Regional News 8

COMMERCIAL VEHICLESA critical event on the calendar 11FAW comes into its own 13First to receive new range 15Fully automatic transmission on UD 90 model 17Connecting transporters and loads in the SADC region 18Holding the fort in Botswana 19Vehicle load limits and dimensions 21

SUPPLY CHAIN LOGISTICSImprove profit margins and free up

working capital 22Critical area of growth 23Becoming demand driven in a volatile world 24Walvis Bay Corridor Group 28Port of Walvis Bay 32Air cargo: driving force in moving freight 35Fully synthetic lubricants can enhance your

bottom line 36Rustenburg Rapid Transport update 38Air freight markets in modest slowdown 40

1TWA | Jul/Aug 2014

2 TWA | Jul/Aug 2014

EDITOR’S COMMENT

SUPPLY CHAIN MANAGEMENT has matured

into a proud profession of experts with deep

knowledge of all the functional elements of opera-

tions, combined with practi-

cal appreciation of the impor-

tance of end-to-end integra-

tion of processes, systems

and people,” says Cobus

Rossouw, SAPICS president.

This has indeed become

apparent at this year’s

SAPICS conference. With

the theme ‘Resilient Supply

Chains’ it was interesting to

hear about South African as

well as international trends

from the diverse range of

keynote speakers.

Without supply chain man-

agement where would we be

today? This a statement I am

sure your supply chain man-

ager keeps reminding you of.

Looking at all the links in

the supply chain, we cannot have elements operating in

isolation. So the importance of ensuring all your elements

are in place when moving goods from the warehouse to

the end user – via road, rail, air or sea – is critical.

I learnt a lot from this conference and over the ensuing

issues will be look at different aspects presented by both

the international and South African speakers.

In this issue, we talk to those who attended Nampo, look

at fleet management, find out about becoming deman

driven in a volatile world in the supply chain as well look at

both the Walvis Port and the Walvis Bay Corridor Group.

As always, a varied read – enjoy!

Simon Foulds

Publisher Elizabeth Shorten

Editor Simon Foulds • simon@3smedia.co.za

Head of design Frédérick Danton

Senior designer Hayley Mendelow

Designer Kirsty Galloway

Contributors Raymond Abraham, Barney Curtis,

Carol Ptak

Chief sub-editor Tristan Snijders

Sub-editor Beatrix Knopjes

Client services & production manager Antois-Leigh Botma

Production coordinator Jacqueline Modise

Marketing manager Hestelle Robinson

Digital manager Esther Louw

Distribution manager Nomsa Masina

Distribution coordinator Asha Pursotham

Financial manager Andrew Lobban

Administrator Tonya Hebenton

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

Editor in action

Resilience pays!

Product information: Axle, transmission and gear oils

DESIGNED TO MEET CHALLENGES

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KEY BENEFITS

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Every part of your vehicle has been meticulously engineered, so you want to use a lubricant that has been designed to ensure that your equipment is well protected and works effi ciently.The Shell Spirax range of axle and gear oils has been developed to enable vehicle manufacturers and fl eet operators to select the oil that will deliver optimum value to their operations through wear protection, long oil life and effi ciency.

DESIGNED TO PROTECTProtecting axles and manual transmissions from wear, pitting and corrosion can help to extend component life and maximise your return on investment. Shell Spirax S6 AXME■ helps to prevent damaging deposits from forming in the gears, thanks to its high oxidation resistance, so components can

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FUEL EFFICIENCY

Shell Spirax S6 AXME has special frictional properties and high fl uidity that reduce power loss, lower the operating temperature and offer higher mechanical effi ciency. In hypoid gear tests, Shell Spirax S6 AXME reduced temperatures by 12ºC compared with an SAE 90 GL-5 reference oil. These properties can help to cut fuel costs for your business.

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5TWA | Jul/Aug 2014

by Barney Curtis, chief executive officer, FESARTA

FESARTA COMMENT

of action. We do hope that this initiative will help solve the

more serious NTBs.

Vehicle registration problemsSome South African transporters are having problems with

their vehicle registration documents at Dondo, near Beira,

in Mozambique.

The problem stems from the information on the South

African registration

document (RC1).

The licence or

registration num-

ber, as on the num-

ber plate, is only

entered on the

registration docu-

ment if the vehicle

has previously

had other regis-

tration numbers.

New vehicles do

not have previ-

ous numbers and

so no registration

number is entered.

The Dondo authori-

ties do not accept

this. The registration number must be on this document

even though it does appear on the licence receipt docu-

ment (MVL1).

The vehicle registration number appears on both docu-

ments and this ties the two documents to the vehicle.

FESARTA is recommending that South African transport-

ers with new vehicles give originals of both the registration

document and the licence receipt to the drivers, when

they operate into Mozambique. This should prevent future

problems.

Only minor NTBs have been solved since the last com-

ment. The major ones are still causing problems.

Let’s hope that the new initiative with SAIIA and GIZ makes

a difference!

Barney Curtis.

FESARTA was invited by the South African Institute

of International Affairs to meet with the German

donor agency, GIZ, in Cape Town, and try to find

a way forward with solving non-tariff barriers.

SAIIA is committed to solving these NTBs and GIZ is keen

to support the process.

This is good news for FESARTA, since FESARTA does not

have the capacity to do what is required. Now it can raise

the NTBs and pro-

vide input for their

solutions.

Member states

agreed to solve the

NTBs that apply

to them, but they

have done little to

make a difference.

The meeting

identified that the

SADC Protocols

(trade, trade ser-

vices and trans-

port) were in place,

but were not being

complied with.

There was a

SADC tribunal,

which was the highest level for dealing with international

problems between member states, but this had been dis-

banded. Thus, SADC and the other RECs, do not have

the ‘teeth’ to force member states to comply with regional

recommendations. (EAC has regional acts, and these give

that REC more control over its member states).

A few of the critical NTBs were identified at the meeting:

• NTB530 – Zambia requiring foreign tankers to comply with

its regulations and for the tankers to be inspected at the

transporters’ cost.

• NTB605 – Security problems at the Kasumbalesa border

post between Zambia and DRC.

• NTB606 – Security problems at the Munhava township just

outside the Beira port.

SAIIA and GIZ are to discuss the outcomes of the meeting

and then approach FESARTA with their recommended plan

International help with solving non-tariff barriers

Some South African transporters are having problems with their vehicle

registration documents at Dondo, near Beira, in Mozambique

Vehicles that think for themselves... for many this might sound like a futuristic, space-age fantasy – but, for those in the know, this concept is already a reality in products on the market from top commercial vehicle manufacturers such as Mercedes-Benz Trucks.

The truck that thinks for itself

MERCEDES-BENZ ACTROS

THANKS TO THE PROGRESSIVE busi-

ness philosophy of Mercedes-Benz South

Africa, it is now possible for your truck to

tell you when it needs a service.

Effective from 1 May 2014, all Mercedes-Benz

Actros models sold with a CharterWay contract will

include an enhanced maintenance package utilis-

ing the Telligent maintenance system. The first truck

manufacturer to introduce this product in South

Africa, Mercedes-Benz Trucks (a Daimler Truck and

Buses brand) is changing the maintenance and

servicing mentality in the country. Moving away from

pre-set service intervals, this product makes indi-

vidualised service intervals possible by taking its cue

from the actual wear and tear on the vehicle.

The truck is designed to monitor the condition of

the engine oil, transmission oil, axle oil and general

service components such as air filters, fuel filters

and brake pads, based on the operating conditions

of the vehicle. This ensures optimum utilisation of

operating fluids and service parts without risk to

the service life or reliability of the engine

and driveline. The Telligent maintenance

system stores information about faults,

but only alerts drivers if they need to

take action.

Telligent maintenance lowers total

cost of ownership

COVER STORY

6 TWA | Jul/Aug 2014

COVER STORY

The 2013 State of Logistics Survey for South Africa, pub-

lished by the CSIR, attributes increased logistics costs in

the economy to be a factor of “a disproportionate growth in

cost-drivers – especially fuel.” Logistics costs of R393 billion

in 2012 escalated to R423 billion in 2013 and the CSIR fore-

casts this to stand at R456 billion in 2014.

Product manager at Mercedes-Benz Trucks, Christo

Kleynhans, confirms that the company’s consistent focus

on lower total cost of ownership for its customers has led to

innovations such as Telligent maintenance. “Fuel and main-

tenance are the two most prominent cost-drivers for a cus-

tomer. We already have many innovations in our trucks that

address the first concern, and now the Telligent maintenance

system also adds to the value-added products that address

maintenance costs,” Kleynhans says. No two Mercedes-

Benz Actros customers have exactly the same wear and

tear on their trucks, due to the wide variety of applications in

which these versatile trucks can be used.

Telligent maintenance tells the driver or truck owner exactly

what needs to be serviced, and when. This leads to less

time spent in the workshop and more time where the truck

and driver are productive. Effective usage of the system can

realise a saving of up to 14% in service costs.

Optimal results will be realised if used in conjunction with

FleetBoard, the benchmark vehicle management and track-

ing system provided by Mercedes-Benz South Africa. Over a

18-month period from 2011 to 2013, Fleet-board registered a

combined savings of over R6 million and uptime savings of

2 658 hours, in 658 cases.

FleetBoard provides impartial, comparable data from all

vehicles of a customer’s fleet. The system provides an

overview of the mileage, operational status, consump-

tion, and deployment profiles of the drivers at one glance,

including an evaluation of the overall driving styles. This will

enable the fleet manager to determine the causes for high

consumption and promptly address them to ensure correct

deployment of trucks, thus increasing the economic effi-

ciency of the fleet.

From an environmental point of view, the Telligent mainte-

nance system also scores brownie

points for the manufacturer and the

truck owner. Less frequent oil and fil-

ter changes equate to less of these

items contributing to pollution.

For an Actros to qualify for this

unique value offering, it simply

needs to be activated on either

the CharterWay BestBasic or

CharterWay Service Complete con-

tracts available at the nearest dealership. However, cancel-

lation of the CharterWay contract will result in the vehicle

returning to fixed service intervals. Although this offer applies

to vehicles sold with effect from 1 May 2014, trucks sold prior

to May 2014 on a CharterWay Contract are eligible to be

converted to a Telligent Maintenance Contract backdated to

1 January 2014.

“Daimler Truck and Buses prioritises

research and development, a primary reason

why Mercedes-Benz Trucks is able to bring

new and innovative cost-of-ownership solu-

tions to our customers and remain a leader in

the industry,” Kleynhans concludes.

“Mercedes-Benz is able to bring new and

innovative cost-of-ownership solutions to

our customers” Christo Kleynhans, product manager,

Mercedes-Benz Trucks,

7TWA | Jul/Aug 2014TWA offers advertisers an ideal platform to ensure maximum exposure of their brand. Companies are afforded the opportunity of publishing a two-page cover story and a cover picture to promote their products to an appropriate audience. Please call Hanlie Fintelman on +27(0)12 463 2564 or e-mail her at h.fintelman@lantic.net to secure your booking.

www.mercedes-benz.co.za/telligent

8 TWA | Jul/Aug 2014

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

REGIONAL

Committing to building a

better AfricaAt the end of the African Development Bank’s 49th annual meeting, bank leaders pledged to rally efforts towards building an Africa that is more inclusive, integrated, and with better infrastructure.

Among other priorities for the bank in the next 10 years, and in line with wishes from the discussions, they are enabling a more environmentally sustainable economy, sound leadership, managing natural re-sources, along with including more women and youth in the economic process in countries across Africa.

At the heart of the continent’s development vi-sion, through the AfDB’s financial support in the next 50 years, is an initiative called Africa50 – a move to raise $100 billion that is needed to fund Africa’s infrastructure.

Africa50 will mainly focus on high-impact national and regional projects in the energy, transport, ICT and water sectors. Source AllAfrica.com

The Tanzania Revenue Authority has confirmed that from 1 July 2014, the Single Customs Territory (SCT) will be implemented in full for the region. The SCT is aimed at eradicating trade barriers in East Africa.

The SCT initiatives fall under the trilateral arrangement involving Tanzania, Burundi and Uganda for the central corridor and Kenya, Rwanda and Uganda for the northern corridor.

Once implemented, it is expected to eradicate trade barriers by adopting a central model of clearance of goods, whereby taxes and assessments will be done only at the first point of entry. Therefore ensuring faster clearing of goods as well as reduction in the cost of doing business. Source AllAfrica

EAST AFRICA

Trade barriers set to end

Imperial Health Sciences an-nounced the

development of a new, state-of-the-art pharmaceutical storage and distribu-tion facility in Nairobi, Kenya.

Dr Iain Barton, Imperial Health Sci-ences managing director, says, “This custom-built warehouse forms part of our active delivery of healthcare and storage solutions in developing markets, where there is a dire short-age of warehouse facilities that meet the requirements for effective, qual-

KENYA

State-of-the-art pharmaceutical warehouse

ity-assured pharmaceu-tical ware-housing and distribution.

“Health-care prac-titioners in underserved areas are faced with a growing burden of complex dis-ease man-agement, aggravated by ageing

infrastructure and unreliable supply of essential medicines, and without sustainable warehousing infrastruc-ture and supply chain systems in place, practitioners in the field cannot access a safe, secure, reliable supply of medicines in line with best-practice quality standards.”

Located on Mombasa Road in Nairobi, Imperial Health Sciences’ new facility is 9 564 m2 in size and will offer 5 361 pharmaceutical pallet locations, as well as 3 978 consumer and 466 cold-chain pallet locations.

The development also includes a 1 000 m2 office area and a confer-ence and training centre.

Barton adds, “Job creation and environmental considerations are priorities on the project and the $20 million construction contract has been awarded to a consortium of Kenyan contractors. At its peak, the contract will create employment for 400 local people. Sustainability initiatives at the new facility will include • solar-powered external lighting and

electric fencing• LED lighting in all offices• energy-efficient, sensor-operated

industrial fittings in the warehouse• energy-efficient air-conditioning

units throughout the facility• solar-heated hot water. Thermo-protecting paint and energy-reducing insulation are being used to minimise the facility’s heating and cooling requirements. The develop-ment will harvest rainwater, and will have its own water purification plant.”

In terms of job creation, once the facility is up and running in 2015, Barton explains that Imperial Health Sciences currently employs 96 people in Nairobi, and the warehouse will take this number up to 180.

Border delays will be minimised in the SCT

The groundbreaking event for the new facility was attended by South

African and Kenyan business leaders and dignitaries

9TWA | Jul/Aug 2014

REGIONAL NEWS

SOUTH AFRICA

Absa-Cape Chamber of Commerce Western Cape Exporter of the Year Award launched

Italy is aiming to increase its trade with Mozambique following a growth in exports and imports with the African country during 2013.

Italian exports to Mozambique in 2013 totalled 60 million euros, or 28% more than in the previous year, and its imports from Mozambique rose by 28% to 354 million euros.

To increase trade between the two countries, Italy’s Foreign Trade Agency brought a business mission to Maputo earlier this year.

Meetings took place in a number of sectors, including the agro-industrial, construction, banking, oil and gas, renewable energy, fishing, health and envi-ronmental sectors.

This mission is the first of an ‘Africa Plan’ initiative set up by the Italian minis-tries for Economic Development and for Foreign affairs.On a visit last year to the Maputo International Fair, the deputy minister for Economic Development, Carlo Calenda said Mozambique was a priority for the Italian government and private sector. Source macauhub

MOZAMBIQUE

Italian businesses seek opportunities

The Cape Chamber of Business has launched its 2014 Exporter of the Year Award.

Applications need to be submitted by 12 September 2014 and the results will be announced at the Gala Dinner to be held in November 2014.

For further information contact exporter2014@capechamber.co.za or contact Mary Jean Thomas-Johnson t +27 (0)21 402 4300

Revitalising the economy, improving the investment climate, strengthening the manufacturing sector and job creation. These, according to minister of trade and industry Dr Rob Davies, will result following president Jacob Zuma signing the Special Economic Zones (SEZ) Act, 2014.

Davies says, “The SEZ Act aims to support industrial development for our country, improve manufacturing capabilities, and the development of more competitive and productive regional economies – with strong up- and downstream linkages in strategic value chains. Its signing into law by President Zuma is a significant

SOUTH AFRICA

Special Economic Zones Act signed by the president

milestone in pursuit of the aspira-tions expressed in the National Development Plan, New Growth Path and Industrial Policy Action Plan.”

Preceding the SEZ Act, the DTI initi-ated the Industrial Development Zone (IDZ) programme under the Manufac-turing Development Act, in 2000. The

focus of the IDZ pro-gramme was largely to attract foreign direct investment, increase exporta-tion of value-added manufactured products and create linkages between domestic and zone-based industries.

According to Minister Davies, the criteria for IDZ designation were biased towards the development of coastal regions and ignored economic potentials existing in the inland regions: IDZs by nature are export oriented and their vicinity to the sea or airport becomes strategic for logistics purposes.

SOUTH AFRICA

Waste wood and timber from motor manufacturers creates jobs

Turning waste wood into viable commodities has created 160 jobs for EC Wood, a Uitenhage-based company.

General Motors South Africa (GMSA) has com-mitted to reduc-ing the amount of

waste it creates, and to making sure that it sends the least possible amount of waste to landfill sites. In this process of making sure that waste is reused as much as possible, the company has contributed to creating jobs and business opportunities for small entrepreneurs.

Angus Clark, head of plant engineering at GMSA, says, “More than 1 546 tonnes of waste wood and timber was removed from the Struandale plant in 2013. Of that, just over half was turned into useful wooden products.”

An information exchange system that will allow East Africans to report non-tariff barriers (NTB) via text message on their mobile phone has been developed in Uganda.

Sam Watasa, lead adviser on Uganda’s national response strategy for the elimina-tion of NTBs, says , “The system, set up at a cost of $100 000, will provide a clear record of NTBs, and help the country assess progress in eliminating them.

“When you use the hard copy form and take it to the appropriate desk, it takes anywhere between one and three months before the matter is dealt with. Under the new system, the message will reach the department that intro-duced the NTB immediately.” With this new system, a person experiencing a barrier sends an SMS to code 201, at a cost of Ush150 ($0.06).

EAST AFRICA

SMS service to report trade barriers

President Jacob Zuma

EC Wood owner Japie Wessels (left) and employee Mbulelo David craft furniture from waste wood

A critical event on the calendar

Nampo Harvest Festival in Bothaville is the biggest and most prominent agricultural show in the Southern Hemisphere – the perfect venue to showcase products aimed at the agricultural community. Simon Foulds speaks to some of the companies who exhibited there this year.

GENERAL MOTORS South Africa, Nissan,

Ford, Scania, VW Commercial, UD Trucks

Southern Africa, Volvo Trucks SA (Volvo and

Renault Trucks) are some of the companies

who see this event as one of the key events of the year.

ScaniaAlexander Taftman, product and marketing director, Scania

South Africa, said, “Scania has exhibited at Nampo for the

last eight years. It is a great event that gathers many differ-

ent industries at one spot, which is of great convenience to

customers and prospects.

“Normally, Scania displays its full range of products and

services. This year though, we took a different approach

and streamlined the product and service line-up to the local

market demand. We decided not to bring buses to give more

room for the trucks, especially rigids, which we had two dif-

ferent versions of this year, both adapted to the farming and

game industries.

“It was the first official launch of the Scania Fleet

Management system in SA and it was also the launch of

the 6x4 distribution designed for the farming community

as well as the 8x8 rigid for tough off-road conditions, like

game farms.”

UD Trucks Southern AfricaJacques Carelse, managing director of UD Trucks Southern

Africa, adds, “UD Trucks was once again out in full force

at this year’s Nampo Harvest Festival in Bothaville. With a

focus on transport applications for the agricultural industry,

UD Trucks also introduced new truck models at the show.”

“The first of which were the two new Quon GW 26 450 6x4

truck-tractor models, which are available in a standard and

high-roof version.

“We also introduced our new UD90 ATM heavy commercial

freight carrier, which is now available with an Allison auto-

matic transmission.

“We are very pleased with the outcome of this year’s Nampo

Harvest Show, as we definitely had an increase in visitors on

the stand, a lot of interest in our products and several solid

leads. We have also had extremely positive feedback on our

new corporate branding displays and the layout and theme of

Major players’ stands at Nampo 2014. (Clockwise from top left) Isuzu, Renault,UD Trucks and Volkswagen

11TWA | Jul/Aug 2014

COMMERCIAL VEHICLES

12 TWA | Jul/Aug 2014

our stand, which once

again offered us the

opportunity to welcome

and host customers in

true UD style.”

Volvo Trucks SAValentia Hobbs, GM

marketing communica-

tion, says, “The Volvo

and Renault Trucks

were proudly represented at this year’s event.

“Over the years, the show has served as a proverbial

showcase of the latest ranges and transport solutions avail-

able to the agricultural industry, and many big investment

decisions are made by fleet owners according to what they

see at Nampo.

“Volvo Trucks moved its entire roadshow kit, attracting

a lot of attention with the new FH, FM and FMX models

proudly on display.

“On the Renault stand, we had the new range for VT (FM,

FMX, FH) and RT (Kerax and Lander) on show.

“The Renault team is already planning its stand for next

year’s Nampo, when the new range will also be available.”

GM SAAlastair Ironside, general manager

of marketing for General Motors

South Africa, says, “The company

has been exhibiting at NAMPO

for over a decade. It is a targeted

business audience, especially for

products such as our Isuzu bakkie range.

“The Isuzu product is the backbone of our agricultural sec-

tor sales thrust and so it was important that we showcased

all of our different body styles and powertrains.

“We also chose our Chevrolet products to display based

on known agricultural sector interest and sales records,

mainly the commercial Utility and Trailblazer.”

NissanVeralda Schmidt, manager of media relations

and corporate affairs, states, “Nissan has been a

regular exhibitor at Nampo for more than 20 years.

“This year, our display focused on the Nissan

light commercial vehicles, with the showstopper

being the new Nissan Patrol Pickup.

“Nissan offers the most comprehensive range of

light commercial vehi-

cles, which offers the

commercial and pri-

vate farmer a solution

for all his fleet needs.

Passenger vehicles

and SUVs provide a

further solution in the

private capacity.”

FordDale Reid, brand

manager at Ford

South Africa, adds, “Ford has exhibited at NAMPO

since 2007.

“Our line-up of commercial vehicles was on display

at Nampo this year, which included Transit and Tourneo

Custom, and our new two-tonne Transit and 18-seater

Tourneo. We also had our new Transit Chassis Cab on

display. Our Ranger XL was there, along with our Odyssey

Ranger, which will take on Africa again this year (details

TBC). Other vehicles included the Ranger Wildrack, Single

Cab, Super Cab XLS and Single Cab XLS. Passenger vehi-

cles were also on display, but our main focus area was our

commercial vehicle line-up because of the appeal of this

range to Nampo’s target market. However, our SUV line-up

(Kuga and EcoSport) – vehicles that are as comfortable on

tar as they are on gravel – also drew quite a bit of attention.

“Nampo is aimed at a very influential target market with

significant buying power, and it is one of the shows at which

we record the most sales. Because it’s not a standard motor

show, it is always an interesting and exciting environment for

us to position ourselves in.”

VW CommercialJaco Steenekamp, general manager of sales and mar-

keting, Volkswagen Commercial Vehicles, elaborates,

“Volkswagen Commercial Vehicles has been exhibiting at

Nampo since 2006. And our stand in 2014 focused strongly

on our lifestyle vehicles, particularly the Amarok. This

included the prototype, Amarok Extreme – a highly styled

and accessorised off-road Amarok, the official Voetspore

Amarok as well as the Safari Roetes Amarok. The Caravelle,

Transporter Crew bus and Caddy Maxi Trendline were also

on display as well as the popular, new addition to the Caddy

range – the Cross Caddy (available in South Africa from

August 2014).

“The size of the show is incredible. When you think of an

agricultural show, one doesn’t realise the diverse and broad

range of products that can be offered to this market. Nampo

is also different from other shows in a sense that the audi-

ence is much more captive. Most visitors to the show are

there for a specific reason; they know what they are looking

for and what they want. The consumer is also a lot more

knowledgeable about your products on a technical level.”

2015All the companies said they will definitely be at Nampo in

2015 because they all view the agricultural community as

an important market, and Nampo as a critical event on their

annual calendar.

(Clockwise from top left) Volvo, Nissan and Scania

“Ford has exhibited at NAMPO since 2007”Dale Reid, brand manager, Ford South Africa

“We focused strongly on our lifestyle vehicles, particularly the Amarok”Jaco Steenekamp, GM of sales and marketing, VW Commercial

COMMERCIAL VEHICLES

FAW comes into

its own

The FAW South Africa brand and its acclaimed products have entered their 20th year in South Africa, becoming firmly entrenched in the local transport industry landscape.

SINCE FAW first established a local pres-

ence in South Africa in July 1994, it has

grown from humble beginnings into a multimil-

lion-rand undertaking.

Today, FAW SA has a sales and service dealer footprint of

23 dealers, including the three major regional centres, and

a R70 million parts stockholding warehouse in Spartan.

Added to this is a world-class Johannesburg headquarter

campus together with its premium showroom; and a dedi-

cated R600 million local production plant in Coega – com-

ing online in July this year.

Rightfully celebrating its ‘coming of age’, FAW South

Africa has proven its prowess as a serious contender in

the market with an array of highly robust, reliable and

affordable commercial vehicles in the medium, heavy and

extra-heavy segments. These include specialised tippers,

mixers and truck-tractors combined with trailer or body

configurations.

The founder of the local company, astute businessman

Richard Leiter, originally recognised the inherent value in

the FAW brand of trucks that embodied a unique level of

durability, strength, simplicity and longevity and chose

to establish a licensing business for import and local

sub-assembly of FAW trucks. With considerable wisdom

and foresight, Leiter later invited greater investment into

South Africa by extending a shareholding opportunity in

his South African company to the FAW China Group and

other investors. Today, Richard Leiter still remains close to

the business as a director and a minor shareholder in FAW

South Africa.

FAW, worldwide, holds to the core vision of ‘total custom-

er satisfaction’ and the company leaves no stone unturned

to ensure that it has the best cutting-edge technologies,

production methods and management systems to fulfil this

vision. Since inception, FAW has produced 16 million vehi-

cles and has consistently been a Fortune 500 company.

FAW South Africa, today, has customers across the

length and breadth of South and sub-Saharan Africa –

from Cape Town to the far northern regions of the DRC. Its

customers span almost all of the major business, industrial

and agricultural sectors – anything from long-haul, to cou-

rier companies, farmers, construction companies, mines,

timber transporters, rental companies and many others.

The company has provided solid evidence of its commit-

ment to both South Africa, through numerous and contin-

ued investments, and local individual- and fleet-operator

customers by its unwavering and unflinching dedication to

providing aftersales support of note.

The FAW Service Centre includes a fully equipped

repair centre with innovative equipment and highly trained

technicians, able to competently service and repair all

FAW trucks.

Honouring its commitment to South Africa, a state-

of-the-art FAW truck plant is nearing completion at the

Coega Industrial Development Zone in the Eastern Cape.

FAW’s decision to build the plant in South

Africa is significant as it is, to date, one of

the most important investments made by

a Chinese entity in South Africa. The total

investment of approximately R600 million has

been financed by majority shareholder FAW

Africa Investment.

The arrival of FAW in the Eastern Cape

region adds yet another blue-chip automo-

bile company to the province. Expected to

eventually produce 5 000 trucks annually, it is envisaged

that the plant will be completed early next quarter, and the

first trucks to be assembled in the new plant will roll off the

assembly line in the third quarter of 2014.

A second phase of expansion under consideration could

see the Coega plant extended to produce up to 30 000

passenger vehicles a year.

FAW South Africa is committed to offering vehicles

engineered, developed and rigorously tested to meet the

harsh operating conditions in Africa. Along with this com-

mitment, it is the desired intention to continue expansion

into the emerging markets of Mozambique, Zimbabwe,

Botswana, Zambia, Namibia and Angola. This makes FAW

South Africa a major distribution hub for trucks and parts

for Africa.

FAW range

FAW is the third largest vehicle manufacturer in the world

13TWA | Jul/Aug 2014

COMMERCIAL VEHICLES

COMMERCIAL VEHICLES COMMERCIAL VEHICLES

First to receive

new rangeVolvo Trucks Southern Africa handed the first regional units of its new FH model to two customers in Gauteng and KwaZulu-Natal.

IN GAUTENG, TRITON Express Group CEO Eric

Corbishley was officially handed the keys of the two

new trucks by Volvo Group Southern Africa’s presi-

dent, Torbjörn Christensson, whilst the Westmead

Group, based in KwaZulu-Natal, took delivery of two

new units, making them the first customer in the eastern

region to welcome the new Volvo FH to its fleet.

Says Christensson, “This is a very significant day for

the Volvo Trucks team as it is the culmination of years

of planning and hard work. And we are very proud to be

delivering these first units to some of our most valued

customers with whom we have had a very good relation-

ship over a number of years. They both share many of our

core values, such as environmental care and safety, and

we therefore believe these new units will certainly add a

lot of value to their business.”

Triton ExpressThe first of the units Triton Express received is a FH 500

HP 6x4 truck-tractor, which is Euro 5 compliant, and has a

high chassis height and rear air suspension. Three years

ago, the company was also first in the country to acquire

a Euro 5 FH Classic, and 8% of their current fleet is also

Euro 5 compliant.

The second model is a FH 480 HP 6x4 truck-tractor,

also with a high chassis height and rear suspension,

with a Euro 3 engine. These units are also equipped with

some of the latest safety, security and comfort technology

available, from driver alert and lane-change support, to

Dynafleet support and telematics.

Westmead GroupThe family-owned Westmead Group also took delivery of

a FH 480 HP 6x4 truck-tractor with high chassis height,

with B-ride. The Westmead Group has taken ownership

of all three generations of Volvo FH models since Volvo’s

inception in South Africa.

15TWA | Jul/Aug 2014

FH SeriesThe new FH Series,

from the ground up,

was purposefully

designed with the driver

in mind, providing him

with a comfortable,

profitable and safe ride.

With its new Volvo FH series, Volvo Trucks Southern Africa

says it is pushing the envelope of what a premium truck can

offer. This includes maximum uptime, leading fuel economy,

reliability, ergonomics, superior handling, active and passive

safety, as well as a range of time-saving features.

The Volvo FH has been Volvo Trucks’ flagship model for

almost 20 years. Since the launch of a new version of the

Volvo FH in Europe in 2012, more than 2 500 units have

already been sold in that region.

Concludes Christensson, “Locally, we are expecting to

complete delivery of the first 20 units of the new range at

the beginning of June, and the run-out of the Classic ranges

by the end of that month. With a healthy local order book

of already more than 1 000 units, we are looking forward to

increased market share and continued success with the new

model ranges.”

ABOVE Westmead handoverBELOW Triton Express

5145 Total Card Desk Mag TWA 297x210 FA.indd 1 2014/03/28 4:04 PM

Fully automatic transmission on UD 90 modelWith the introduction of the new UD 90 ATM model to its line-up, Jacques Carelse, MD of UD Trucks Southern Africa, tells Simon Foulds why the company is so excited about this model.

THIS HEAVY COMMERCIAL freight carrier now

boasts a fully automatic Allison transmission

and is set to provide fleet owners with more

powerful, efficient and productive performance,”

says Carelse.

As the country’s leading HCV manufacturer for the past

number of years, UD Trucks grew sales of their UD 90 by

66.07% month-on-month during April 2014.

Carelse believes this new model offers fleet owners a

smart and modern transport solution.

Carelse says, “The new model provides customers with

modern transmission technology, smoother operation

and longer service intervals. We are aiming to introduce

innovative ways in which we can go the extra mile for

our customers.”

UD Trucks is using a 2500 TC221 P&D Allison transmis-

sion in the range and it is incorporated into the UD 90 at

its assembly plant in Rosslyn. Allison is one of the world’s

premier providers of automatic transmissions for commer-

cial vehicles and is renowned for its quality and reliability.

States Carelse, “The main benefits of using a torque-

converter gearbox include improved performance and

more efficient fuel consumption. Ultimately, its means

more savings for our UD fleet owners.”

Efficient acceleration is achieved by the torque con-

verter that utilises full power shifts and subsequently less

fuel. Optimal cruising is also achieved by means of the

lock-up clutch and advanced electronic controls, which

optimise the powertrain and fuel consumption. Better

engine braking is also achieved through the torque con-

verter and pre-select function, reducing brake wear and

fuel consumption.

Advanced electronics also add to the overall savings of

the drive cycle. This includes reduced engine load at stop,

or RELS, and auto-neutral that minimises the truck’s fuel

usage during idling. Load-based shift scheduling auto-

matically selects the optimum shift schedules based on

the vehicle’s actual payload and the road grade on which

it is operating.

UD Trucks’ HCV range provides transport solutions for

nominal payloads from 6 to approximately 11 tonnes.

Their optimised wheelbases

make them ideal for a range

of applications, which include

freight carriers that can be fit-

ted with virtually any rear body,

a dedicated tipper as well as

conversions to truck-tractors.

Tag axle options allow for

operation as a 6x2 with addi-

tional payload capability.

Adds Carelse, “With its prov-

en flexibility and superb dura-

bility, the UD Trucks Heavy

Commercial Vehicle range is

ideally suited to meet custom-

ers in this market segment’s

exacting requirements.

“The UD Trucks manage-

ment team is extremely excit-

ed about the future of the

brand in this country.”

Concludes Carelse, “As one

of the country’s leading truck

manufacturers for the past 50

years, the company is cur-

rently planning the introduc-

tion of game-changing new

products and services to

customers.

“The future plans of UD

Trucks are all about enhancing our customers’ transport

and service experience with us, and we believe the intro-

duction of the

UD 90 ATM is

one of the ways

in which we are

providing cus-

tomers with

a p p r o p r i a t e

technology at the

right time.”

Jacques Carelse, MD, UD Trucks Southern Africa

COMMERCIAL VEHICLES

UD 90 ATM FREIGHT CARRIER - H09ENGINE

Type: UD Trucks FE 6TBConfiguration and number of cylinders: Direct injection, turbocharged intercooled in-line 6 cylinder dieselDisplacement: 6 925 cm3

Maximum power output: 175 kW@ 2 800 r/minMaximum torque: 660 Nm @ 1 800 r/minGovernor type: RED electronic (all speed)

CLUTCHType: Borg & Beck CL 810 380 mm single dry plateOperation: Boosted hydraulic with automatic adjustmentDisc diameter: 380 mmFriction area: 1 194 cm2

TRANSMISSIONMake: AllisonType: 2500 TC221 P&D

BRAKESService brakes: Dual-circuit air-assisted hydrau-lic drum brakes all roundEmergency/Parking brake: Spring brakes on rear axleEngine brake: Remote-mounted exhaust brake with lever switch on steering columnTotal brake lining area: 4 544 cm2

WHEELS AND TYRESRims: 7.5 x 22.5 single piece steel discTyres: 11R22.5 -16 PR tubeless radial highway pattern all-roundSpare wheel: Slung from a winch-type carrier under rear of chassis

FRONT AXLEType: FA50 drop forged I-beam with reverse Elliot steering knucklesSuspension: Semi-elliptic steel leaf springs with dual-acting telescopic shock absorbers

17TWA | Jul/Aug 2014

Connecting transporters and loads in the SADC region

A NEW INTER-ACTIVE web

and mobile

interface has

been launched, providing

a solution to manage ship-

ment and transport needs.

According to Mark

Goodger, acting CEO

of GMLS South Africa,

“LoadSmart is a website-

based networking platform

developed by PROSADC

in cooperation with GMLS

South Africa, dealing with the needs of Southern Africa’s

freight transportation industry.

“As a marketplace for networking transporters, logistic

operators and freighters, the company aims to deliver a

better end-to-end support service that shipping agents,

transporters and freight forwarders can benefit from,

ensuring an improved goods circulation and day-to-day

trade in Southern Africa.”

Applicants are screened to ensure that only the most

reliable transporters are members of the company. Being

a member of the network offers several benefits, which,

according to Goodger, include genuine contracts and

loads, trustworthy and safe transporters, chances of

increased trips for transporters and lower taxes for freight

forwarders. Website users can see available loads, post

loads, view available vehicles and post vehicles.

“LoadSmart will cover all the logistic corridors in

Southern Africa. Our aim is to create opportunities for

businesses that are looking for contracts or loads for their

vehicles, as well as for customers who have contracts or

loads that require vehicles for transportation to connect,”

Goodger concludes.

For more information, please feel free to visit www.loadsmart.net.

COMMERCIAL VEHICLES

18 TWA | Jul/Aug 2014

COMMERCIAL VEHICLES

Holding the fort in Botswana Scania has been operating in Botswana

since 1981, with Scania Botswana being the sole authorised distributor for Scania products in the country. Simon Foulds speaks to Frederick Hennop, Scania Botswana CEO, to find out more about the operations in Botswana.

THE COMPANY OFFERS complete transport

solutions being vehicles, parts and service-

related products as well as finance and insur-

ance in the heavy transport industry for vehi-

cles above 16 500 kg; including trucks, buses and luxury

coaches. Apart from providing transport solutions, the

company also supplies and delivers engines that are

being used for power and pump generators.

“Through the Scania-approved concept, used vehicles

from the region as well as Europe are being re-market-

ed and delivered to customers in Botswana together

with the used truck’s warranty, finance, insurance and

R&M contracts.”

With two depots conveniently located in Gaborone and

Francistown, customers are given a wide range of prod-

ucts and services, handled and delivered professionally

with factory approval.

“Services include repair and maintenance work, as well

as driver and operator training. Stock of vehicles and

parts are kept, and all products on offer are covered by

the Scania warranty.

“The most critical factor to customer satisfaction is not

only receiving the end product, which is the vehicle or

generator, but it is about complete and overall customer

satisfaction inclusive of after-sales service provision. In

this regard the company offers a 24/7 road-side assis-

tance service together with a 24-hour towing service to

assist all Scania customers operating within Botswana. “

“It is a priority for us that the customer knows he can

rely on us. We want our customers to focus mainly on

their core business whether it is distribution or long haul-

age or within the mining sector.”

HIV/AidsDue to its location in Southern Africa,

a region that carries the highest rates

of HIV/Aids infections globally, the

company is cognisant of the impact

the disease could have on its busi-

ness operations and most importantly

on its human resource. In Botswana,

as is the case with countries like

South Africa, Zimbabwe, Namibia,

Tanzania and Zimbabwe, there are

high rates of HIV infection.

“We have been proactive towards

HIV/Aids prevention, treatment and

care over the past eight years. Thanks

in part to the guidance and sup-

port of the Swedish Workplace HIV/

Aids Programme. The company now

has an active HIV/Aids wellness com-

mittee and active and trained HIV/AIDS

workplace peer educators to support the

staff complement.”

A conducive environment has been

created for any workers living with HIV

or Aids.

“We even have our own HIV/Aids cham-

pions in the workplace who serve as

great peer educators for the other staff.

Our in-house driver trainer, who has access to our clients

in our supply chain, now has the benefit of distributing

information buddy packs, which he uses to share with our

clients and hence continues to spread the message of

good health choices. When the employees are healthy, the

company is also healthy.”

The company is owned by Scania South Africa, which

is a wholly owned subsidiary of Scania CV in Sweden.

Scania Botswana services and products

www.scania.co.bw • t +26 (7)391 2244 (Gaborone)

“We want our customers to focus mainly on their core business” Frederick Hennop, CEO, Scania Botswana

Scania offices in Gaborone, Botswana

19TWA | Jul/Aug 2014

FLEET OPERATIONS

21TWA | Jul/Aug 2014

FESARTA VEHICLE COMBINATION AND AXLE/AXLE UNIT LOAD LIMITSSingle Axle Tandem Axle Unit Tridem Axle Unit Vehicle

Coun

try

Stee

ring

two

whe

els

Two

stan

dard

whe

els

385

supe

r-sin

gles

Dua

l whe

els

Four

sta

ndar

d w

heel

s

385

supe

r-sin

gles

Dua

l whe

els

Six

stan

dard

whe

els

385

supe

r-sin

gles

Dua

l whe

els

Com

bina

tion

Allo

wan

ce

Angola 6 10 16 24 38Botswana 8 8 9 16 18 24 24 56 5%Burundi 10 16 16 24 53Kenya 8 8 10 12 16 18 24 48 5%

Lesotho 7.7 8 9 15.4 18 24 24 56 5%Malawi 8 8 10 16 18 24 24 56 5%/10%

Mozambique 8 8 9 16 18 24 24 56 2%/5%Namibia 7.7 8 9 16 18 24 24 56 5%Rwanda 10 16 24 53 5%

South Africa 7.7 8 9 16 18 24 24 56 2%/5%Swaziland 7.7 8 9 16 18 21 24 56Tanzania 8 8 10 12 18 15 24 24 56 5%Uganda 8 8 10 14 16 18 24 56 nilZambia 8 8 8 10 12 18 18 12 24 24 56 5%

Zimbabwe 8 Not listed Not listed 10 Not listed Not listed 18 Not listed Not listed 24 56 nil/5%SADC 8 8 8 10 16 18 24 24 56

COMESA 8 8 10 16 18 24 24 56

TRANSPORTERS MOVING freight

through both the SADC and COMESA

regions should take note of the latest

schedules of load limits and dimen-

sions permitted within the member states.

These are the latest schedules provided to

TWA by FESARTA. It is important to note that

in South Africa, Botswana and Mozambique no

allowance has been made for trucks with bull

bars in relation to vehicle combination length.

Vehicle load limits and dimensions

FESARTA VEHICLE DIMENSION LIMITS

Coun

try

Vehi

cle

com

bina

tion

leng

th

Artic

ulat

ed v

ehic

le le

ngth

Wid

th

Hei

ght

Rig

id v

ehic

le le

ngth

Trai

ler l

engt

h

Sem

i-tra

iler l

engt

hAngola 20 18 2.5 4 15 15 15

Botswana 22 17 2.5 4.1 12.5 12.5 12.5Kenya 22 17 2.65 4.2 12.5 12.5 12.5

Lesotho 22 17 2.6 4.1 12.5 12.5 12.5Malawi 20/22 17 2.5 4.6 12.5 12.5 12.5

Mozambique 22 16.5/18 2.5 4.3 12 12 12Namibia 22 18.5 2.6 4.3 12.5 12.5 N/A Rwanda 17.4 2.65 4.2 11

South Africa 22 18.5 2.6 4.3 12.5 12.5 N/ASwaziland 20/22 17 2.5 4.1 12.5 12.5 12.5Tanzania 22 17 2.6 4.6 12.5 12.5 12.5Uganda 22 2 2.5 4.3 12.5 12.5 12.5Zambia 22 18.5 2.65 4.6 12.5 12.5 13.5

Zimbabwe 22 18.5 2.65 4.6 12.5 12.5 N/ASADC 22 18.5 2.6 4.3 12.5 12.5 N/A

COMESA 22 17 2.65 4.6 12.5 12.5 12.5

These documents are the property of FESARTA and may not be reproduced without prior consent

22 TWA | Mar/Apr 2013

SUPPLY CHAIN LOGISTICS

SINCE THE ECONOMIC downturn of 2008,

companies determined to remain sustainable

have had to embrace a number of innovative

strategies to maintain profit margins,” says

Janse van Rensburg.

“Supply chain management is an area that ought to

receive more attention, because efficient control of stock,

to avoid both overstocking and stock-outs, makes an

immediate differ-

ence to both the

balance sheet and

the income state-

ment.”

He has good

evidence to back

up that belief; over

the past few years,

Cargo Carriers

has run pilot

simulations using

the Symphony

software system

on several com-

panies, in sec-

tors as diverse

as minerals, retail

clothing, food-

container manu-

facturing, hard-

ware, and wine

distribution. In all

cases, the simula-

tions showed that

dynamic buffer

management of the inventory in supply chains improves

profitability – sometimes in ways the client had not even

considered.

“We pick a sample selection of their product lines, and

we need the stocking and sales data for those lines going

back a full year, then we input all that data and run the

simulation for a period of one year, tracking the perfor-

mance of the simulation against actual results achieved

by the company running its supply chain as usual. We

recently worked with a large wine distributor and before

we started, their main worry was stock-outs on popular

lines; they weren’t really concerned about overstocking.

But remember, this is a cash-to-cash business; they only

get their money when they sell the wine. So having stock in

the warehouse that isn’t moving is simply taking up space

without making any return.

In the meantime, another line is experiencing high

demand; but you don’t have enough space to store it do

you hire more warehouse space? It’s much more cost-

effective to make sure your warehouse isn’t full of stock

you don’t want or need. Apart from anything else, it frees

up working capital that would otherwise be locked up in

unsold stock.”

Revealing the actual value of lost sales“The programme has an algorithm that allows us to put

an actual monetary value on sales that are lost due to

stock-outs. In the wine distributor’s case, they were quite

surprised to see that they were losing a lot more sales to

stock-outs than they had thought. Using Symphony, they

can ensure they have the optimal mix in the warehouse at

all times.

It lets you see the cost of holding inventory per sale, the

amount of inventory held per unit of sale, the amount of

stock reduction you can achieve, and helps reduce the

sales lost through stock-outs.”

The results of the pilot simulations speak for them-

selves – in the case of the food-container manufacturer,

the stock-out days in the simulation were 84% lower than

the company’s actual results using its current system.

Across the board, the simulations resulted in lower levels

of inventory – a saving on warehousing costs and a boost

to working capital – but still showed increased turnover

and a reduction in stock-outs. It’s clear that dynamic buffer

management of supply chains is one of the simplest but

most effective ways to increase profit margins.

22 TWA | Jul/Aug 2014

TOP Dawid Janse van Rensburg, Cargo Carriers divisional director: IT and supply chain

Improve profit margins and free up working capital

Simulations in a range of industries have shown that Cargo Carriers’s Symphony software reduces both overstocking and

lost sales through stock-outs. Simon Foulds speaks to Dawid Janse van Rensburg of Cargo Carriers to find out more about the software.

The programme has an algorithm that allows us to put an actual monetary value on sales that are lost due to stock-outs

SUPPLY CHAIN LOGISTICS

Critical area of growthOpportunities abound in Africa but it is essential to understand local context and adapt your business model to suit the demand and demographics of each country.

THIS IS THE VIEW of Eqstra Fleet Management

who, along with Unitrans and BDO, jointly under-

took research in 13 African countries (Algeria,

Angola, Botswana, Cameroon, Cote d’Ivoire,

Ghana, Kenya, Mozambique, Namibia, Nigeria, Senegal,

Uganda and Zambia) in order to provide corporates with

information and a general benchmark on how business

travel- and vehicle-related tax is currently being treated in

these respective countries.

Murray Price, MD, Eqstra Fleet Management, says, “A com-

mon mistake by the early corporate ‘pioneers’ has been to

treat Africa as one single entity and to adopt a single strat-

egy and approach to each African country they targeted.

However, corporates have now realised that expansion into

Africa requires not just the right resource or product but

critically, the right information and partners. Our research is

aimed at providing corporates with the right information to

inform travel and logistic strategies from a fleet perspective.”

Challenges in doing business in Africa include under-

developed financial sectors, complex legislative

regimes (over 55 countries), political stability, access

to skilled resources, public and private cooperation

and poor infrastructure.

The research targeted 135 medium-to-large com-

panies across the 13 countries, with the countries

being chosen based on their GDP growth potential

and on existing client demands.

The research sample at the time of the study oper-

ated between them 39 000 vehicles. Responses

were received from all the major sectors, with the

majority from the manufacturing, processing and

distribution, transport and logistics industries.

Adds price, “While not a representative sam-

ple, this is the first study of its kind and pro-

vides a strong base for future research and further

information gathering.”

Overview of the African marketThe research found that fleet management solutions and

funding options are not readily available in all countries.

The report estimates that 42% of the corporates purchase

all of their fleet using their own cash reserves. Then 25% of

companies purchase a large portion of their fleet paying in

cash, with only 33% of corporates relying predominately on

external funding to finance their fleet.

Price states, “We believe the sway towards outright pur-

chase is not always by choice, but that outsourced solutions

available in South Africa have not been developed for the

rest of Africa. Granted, the banking sector provides finance

and lease and hire purchase options in most of the coun-

tries, and certain manufacturers are now starting to offer

finance options, but the availability of contract hire and leas-

ing options remains low.”

Executives enjoy the greatest access to company vehicles,

with 27% of vehicles operated as perk vehicles for manage-

ment whereas 24% of the fleet is

being utilised for moving goods. On

the whole, most corporates favour

paying an allowance to their employ-

ees rather than providing a company

vehicle and less than 40% of the sam-

ple offer their management the option

of a company car.

The majority of fleet owners maintain

their vehicles through the respective

manufacturer or dealer network. The use of fleet cards to pay

for maintenance is not a preferred option in African markets.

Some 62% pay for maintenance-related costs via accounts,

while 23% pay in cash. Only 5% make use of a fleet card

option. Local service providers are used by the majority for

tyre repairs and replacement – as much as 19% of respond-

ents indicated that they prefer to procure tyres in bulk and

manage their own tyres in-house.

Companies operating in Africa appear to have minimal

control over their fleets. While the majority (58%) have

installed some type of tracking solution, most admit to not

having control or reporting to manage driver behaviour and

fuel expenses.

Concludes Price, “It is evident that very few companies

across Africa make use of an integrated fleet-management

or logistics solution. Case studies and research have proven

that by consolidating all fleet-related services for a single

combined overview, companies are able to reduce their

fleet costs by as much as 30%. This can however only be

achieved if there are sufficient providers available.”

Our research is aimed at providing corporates with the right information

please supply pic and caption

From left: Abel Myburgh, BDO South Africa Advisory Services; Hein du Plessis, Eqstra Fleet Management; Ray Singh, MD Unitrans; Murray Price, MD Eqstra Fleet Management

23TWA | Jul/Aug 2014

SUPPLY CHAIN LOGISTICS

Becoming demand driven in a volatile world

However, in order to improve flow and achieve more

agility throughout supply chains, we must seriously re-

examine the conventional materials-planning and -execu-

tion methodologies. Achieving improved flow is not just

about speeding up the antiquated rules and tools that we

already have but rather embracing a fundamental shift in

how companies manage their supply chains.

Today, almost every mid-range and large manufacturing

company is using MRP methods and tools that are not

TODAY, TOO MANY people think of sup-

ply chain tools as advanced planning and

scheduling systems, warehouse management

systems, product life-cycle management or

logistics management packages. This is a mistake. What

really drives supply chains? The heart of any supply chain

is an interconnected network of ‘islands’ of manufacturing.

At the heart of these islands is something called materials

requirements planning (MRP). MRP creates and connects

the demand signals in the ‘archipelagos’ that comprise

most supply chains.

WHAT ARE WE MISSING ABOUT SUPPLY CHAINS? enabling this agility and in fact have embedded rules that

are antithetical to flow. No matter how much money you

spent on your ERP product, your planning system is anti-

quated and fundamentally broken with respect to enabling

flow and agility required in today’s supply chains.

What gets put on lathes, welding jigs, assembly lines,

trucks, boats and aeroplanes is a response to a demand or

supply-order generation signal. Today, due to the increasing

complexity of the global manufacturing and supply land-

scape, the supply-order generation signals that move down

through our supply chains have become more and more

out of alignment with actual demand. This is referred to as

the bullwhip effect. The bullwhip effect has been well under-

stood for quite some time, however the problem is growing

worse. The bullwhip effect kills flow and supply chain agility

in its unpredictability and amplitude of variance.

Why does this bullwhip effect exist? The traditional plan-

ning rules and tools including forecast-based demand

generation employed by most manufacturers and distrib-

utors do not fit the highly volatile and variable world we

live in today. Those rules were constructed under a ‘push

and promote’ mentality fuelled by production efficiency,

utilisation metrics and a market that was more tolerant of

longer lead times and shortages.

The new normalThe 21st century is a highly volatile time. Customers

demand shorter lead times, more variety and customisa-

tion. The CFO demands significant reductions in working

capital. The Internet has reduced transactional friction and

competition can now come from anywhere on the planet.

Supply chains are extended, more difficult to manage and

vulnerable to disruption. The net effect of all of this is that

today companies are dealing with more complex planning

and supply scenarios than ever before. This is not a tem-

porary phenomenon; it is here to stay.

The traditional MRP rules that were conceived, codified

and commercialised in the 1950s to 1970s under the old

‘push and promote’ mode of operation are now breaking

down. Driving the master schedule from a forecast results

in the factory building to the plan but with a high probabil-

ity of not building what the customer can and will buy. The

industry continues to pursue better algorithms in search of

Globally, supply chains are becoming more complex as companies struggle with the increased difficulty of planning and managing. TWA attended SAPICS 2014 where Carol Ptak, an expert in demand-driven planning and co-author of numerous publications, outlined why most demand and supply planning systems deliver poor results.

24 TWA | Jul/Aug 2014

SUPPLY CHAIN LOGISTICS

business performance improvement. Working to forecast

has long been compared to driving a car by looking in the

rear-view mirror.

Today, however, we are more likely driving on a narrow

mountain road in dense fog. The penalties for error are

significant, even catastrophic. Paying large sums of money

for more sophisticated forecast algorithms simply means

you now have a more expensive rear-view mirror. Any

appreciable gains by these ‘smarter’ algorithms are being

more than offset by the rise of volatility, and the risk still

continues to increase.

The compromises and effectsThis incredible pressure has forced companies into less

than acceptable alternatives. In November 2009, the

Aberdeen Group released a survey that showed that on

average 71% of ERP users were using spreadsheets for

demand management rather than their ERP’s planning

module. Planners fundamentally distrust the signals they

get from their integrated planning systems. Utilising the

ease to export data, planners have built workarounds

and ad hoc mechanisms in order to get a perception of

relatively better approximation of real requirements. These

tools have limited capability, scalability and transferability.

These antiquated rules, tools and ad hoc systems lead to

a combination of three costly undesirable effects in today’s

environment:

• Poor inventory performance

This is characterised as having too much of the wrong

products while, at the same time, having too little of the

right products.

Inventory is waste only under two conditions. First, waste

is significant when there is too little inventory – it translates

directly to missed sales, production disruptions and expe-

dites. Second, the classic definition of waste is when there

is too much inventory – excess working capital and capac-

ity are tied up in things that are not required.

• Poor service levels

This is characterised by unacceptable fill rates and missed

sales. Most companies recognise the high penalty associ-

ated with missed sales. They pay a premium in terms of

Becoming demand driven in a volatile world

25TWA | Jul/Aug 2014

DAF ADVERTS_JUNE2014_210X148

26 June 2014 03:25:53 PM

SUPPLY CHAIN LOGISTICS

27TWA | Jul/Aug 2014

inventory (having too much) or expedites (having too little)

in order to prop up service levels with today’s inadequate

planning, execution and tools. Unfortunately, many com-

panies still have high inventories and lots of expedites and

still cannot meet their service targets – even on products

shipped to mature markets.

• High expedite-related expenses

This is often under-measured and underappreciated. This

expense includes all of the additional effort and money

that we employ to make up for shortages in the face of

critical service requirements or targets including expedited

freight. Additional freight cost is incurred because only

partial shipments were available. Overtime employed after

late components have arrived or scheduled break-ins in

high set-up cost environments add to this expense.

Where do we go from here?These problems are not going away. Large ERP providers

are focused on infrastructure, not business application

development. Furthermore, the technical magnitude of

the problem combined with the direction of the solution

leaves a very small group of people with the relevant

experience and knowledge to reconstruct the rules and

specify the tools.

Demand-driven MRP (DDMRP) is a multi-echelon

demand-and-supply planning and execution methodology.

Multi-echelon means that DDMRP integrates multiple tiers

(including the bill of material) in the supply chain in order

to provide end-to-end planning and execution visibility so

that flow can be improved and better managed. DDMRP

ends the typical bimodal distribution for the parts/SKU that

matter and brings inventory into the desired alignment.

At its core, DDMRP uses a new type of strategically posi-

tioned and dynamically managed stock positions to damp-

en variability, compress lead times and reduce working

capital requirements while ensuring unprecedented levels

of service. These strategic stocking positions dramatically

alter the planning and execution rules of conventional MRP.

In most manufacturing environments, inventory stock in

some form is a requirement.

Customers will no longer tolerate long lead times.

However, most manufacturing companies and certainly

every supply chain cannot be a pure make-to-order system.

Holding inventory is a reality in the modern world. In most

cases, companies cannot position and manage stock posi-

tions effectively because they have only antiquated stock

practises and tools. At the same time, it is also extremely

wasteful to not carry inventory. When companies lean out

too much inventory, then frequent shortages can result.

When companies experience shortages, they are forced to

spend additional time, effort, money and capital in order to

resolve the problem and significant market opportunities

can be missed. This is a significant source of waste.

Agility is not synonymous with zero inventories. The key

to effectively leveraging the working capital and capacity

commitment inherent in inventory is to find the places where

that inventory can make the biggest impact and therefore

provide the greatest return. Inventory can decouple oth-

erwise dependent events so that the cumulative effects

of variation are not passed and/or amplified between the

dependencies. Inventory can be a breakwall against the

variability experienced from either supply (externally and

internally) or demand variability. But, like any breakwall, they

are only effective if placed and sized properly. Thus, the first

question to ask is, “Where?” and then the second question

of “How much?” can be answered.

Today, companies must think systemically across the sup-

ply chain and not just within their own four walls. Putting

inventory everywhere is an enormous waste of company

resources. Eliminating inventory everywhere puts the com-

pany and supply chain at significant risk. Strategically posi-

tioning inventory ensures the company’s ability to absorb

expected variability with the smallest possible investment.

Unfortunately, today, most tools, training and

educational material is oriented towards deter-

mining the answer to the questions, “How

much?” and, “When?”, with little to no attention

to answering, “Where?”. Properly determining

where to place inventory is a strategic question

that should involve key personnel representing

a relevant cross section of the company. There

are six critical positioning factors in determin-

ing where to properly place inventory.

The six critical positioning factors (as seen

on the right) must be applied systematically

across the entire bill of material, routing struc-

ture, manufacturing facilities and supply chain

to determine the best positions for purchased,

manufactured and finished items (including

service parts). The bigger the system these

factors are applied to, the more significant the

results can be.

After the initial positions are determined,

new innovations with regard to sizing stock

levels, replenishment rules based on actual

demand, and judging execution priority take

over. Below is the complete DDMRP method-

ology. These steps are in prerequisite order.

• Demand-driven material requirements

planning.

• Strategic inventory positioning.

• Buffer profiles and levels:

- dynamic adjustments

- demand-driven planning

- visible and collaborative execution

- modelling/remodelling the environment plan.

DDMRP solution summary and case studiesDDMRP is an unprecedented no-compromise fusion of

relevant MRP and DRP tactics combined with the pull-

based approaches and signals of lean and the theory of

constraints while mitigating the variability well understood

through Six Sigma. DDMRP includes planning and execu-

tion innovations for better lead-time compression and

execution visibility. Leveraging lean’s waste reduction

focus and visibility for execution, the DDMRP methodology

combines it with a new set of demand-driven planning tac-

tics that provides unprecedented planning visibility across

an enterprise and supply chain. Adopters of the DDMRP

methodology have realised significant results without com-

promise of desired improvements.

THE CRITICAL POSITIONING FACTORS

1. Customer Tolerance Time The time the typical customer is willing to wait.

2. Market Potential Lead Time The lead time that will allow an increase of price or the capture of additional business either through existing or new customer channels.

3. Variable Rate of Demand The potential for swings and spikes in demand that could overwhelm resources (capac-ity, stock, cash, etc.).

4. Variable Rate of Supply The potential for or severity of disruptions in sources of sup-ply and/or specific suppliers.

5. Inventory Leverage and Flexibility The places in the integrated BOM structure (the Matrix BOM) or the distribution network that leave a company with the most available op-tions as well as the best lead-time compression to meet the business needs.

6. The Protection of Key Oper-ational Areas It is particularly important to protect critical operational areas from disrup-tion. These key operational areas do not necessarily need to be a bottleneck operation.

THE EXPERTCAROL PTAK is an internation-ally recognised authority in the use of ERP and supply chain tools to drive improved bottom- line performance

CORRIDORS

Walvis Bay Corridor GroupCreated as a service and facilitation centre to promote imports and exports via the Port of Walvis Bay for the SADC region, the Walvis Bay Corridor Group (WBCG) has grown from strength to strength. Simon Foulds speaks to Johny Smith, CEO of WBCG, to find out how businesses benefit from the WBCG.

28 TWA | Jul/Aug 2014

Walvis Bay Corridor Group

THE GROUP’S MAIN competitive strength is

its public-private partnership (PPP) set-up of

transport and logistics stakeholders from both

the public and private sector. This, according to

Smith, allows for the pooling of resources, expertise and

authorities from both the regulators and operators.

Public-private partnerships“Due to WBCG’s constitution as a PPP, we are able to

lean on the public sector for advice and action on issues

such as customs, transport regulation and infrastruc-

ture development, while the private sector can focus on

business development such as marketing and making

practical operational proposals and logistics solutions,“

says Smith.

Advantages for the regionThe Walvis Bay Corridors are a network of transport routes.

“The key elements are the Trans-Kalahari Corridor, the

Trans-Caprivi Corridor, the Trans-Cunene Corridor and the

Port of Walvis Bay,” he states.

“The deep-sea port at Walvis Bay allows for direct access

to principal shipping routes and offers shippers a time-

saving of up to five days between the SADC region, Europe

and the Americas. Fast, efficient and safe road and rail

transport along the corridors further reduce costs, making

the regional economy more attractive to global players as

envisaged under the NEPAD initiatives.”

According to Smith, regional support ensures harmoni-

sation of standards allowing for the smooth flow of trade

between borders. This has been further enhanced through

the establishment of regional committees and partnerships

along the respective corridors.

Adds Smith, “The Trans-Kalahari Corridor management

committee initiated the Trans-Kalahari Corridor secretariat,

which is a body made up of government and private sector

representatives from Namibia, Botswana and South Africa.

“The Walvis Bay-Ndola-Lubumbashi Corridor Management

Committee, which is a partnership between the DRC,

Namibia and Zambia, was also established to address chal-

lenges along the Trans-Caprivi Corridor.

Support services“Our strategic plan for 2010 to 2015 has been focusing on

efforts to increase cargo volumes for both the Port of Walvis

Bay and the WBCG, as well as enhancing the competitive-

ness of the corridors,” says Smith. “To support this, we

established a portfolio for projects and funding to identify,

formulate and manage corridor projects.

“The Walvis Bay Corridor Group Wellness Service

Programme is proactively involved in mainstreaming the

HIV/Aids epidemic. We assist transport companies in

Namibia to design and implement workplace HIV/Aids well-

ness interventions.

“The programme also focuses on developing and commu-

nicating a clear workplace policy, peer education, access

to voluntary counselling and testing for the Namibian

transport sector.

“A joint initiative programme – the Safe Trade and

Transport Corridor Programme – between the WNCG and

the Swedish International Development Agency (Sida) is

The Walvis Bay corridors are a network of transport routes

aimed at improving road safety and security along both the

Trans-Kalahari and Trans-Caprivi corridors.”

The aim of the latter initiative according to Smith is to

support the regional authorities along these routes with con-

tinually developing safe, sustainable and secure corridors.

Development Namibian logistics hubThe logistics hub concept forms part of the greater efforts

of the Walvis Bay Corridor Group to develop the Walvis Bay

corridors as the preferred trade route for Southern Africa.

Chairman of the Walvis Bay Corridor Group Bisey Uirab

says, “Africa is expected to be the fastest growing region

after Asia, with sub-Saharan Africa expected to grow by 5

to 6% between 2011 and 2020, hence ‘trade opportunities

abound on our doorstep and we must seize the day as now

is the right time to grab these opportunities’. Our logistics

hub provides a seamless transport and logistics solution to

ensure that these potential consumers get their goods at

the right time and in the most cost-

effective manner.

“The competitive advantage of

Namibia is our strategic geographi-

cal position to serve Southern Africa;

that we are a peaceful and secure

country; that we have a government

that is supportive and also wholly committed to develop-

ment and growth; that our institutions are sound; that our

services are relatively efficient; and that we have a gener-

ous amount of land for industrial development and inland

logistics hubs.

“We should capitalise on this competitive advantage by

making sure our infrastructure (port, rail, road, etc.) has

the capacity to handle the demand – now and in the future.

We need to develop ahead of demand so that we can be

a few steps in front of our competitors to capture emerging

business opportunities; making sure we modernise and

transform our modes of transport as well as infrastructure

(including ICT) so that they complement each other to

provide a seamless cost effective service and pushing for

non-tariff barriers in the region to be reduced and making

sure our nation realises its dream of industrialisation as

enshrined in Vision 2030.

“We urge the transport community to cooperate and com-

mit to driving the logistics hub as a matter of priority so that

we can make Walvis Bay the Singapore and Dubai of Africa

by 2030. Ultimately, the development of the Port of Walvis

29TWA | Jul/Aug 2014

CORRIDORS

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Bay and the Walvis Bay corridors is clearly an

advantage to accelerate growth for Namibia and

the SADC region by offering Southern Africa an

alternative gateway.

“The role of transport and logistics has become

increasingly important to accelerate the growth of

Namibia’s economy and, with the rapid growth

in cargo volumes along the Walvis Bay corridors

through the port of Walvis Bay and the benefits

that the trade routes have to offer, Walvis Bay has

been identified to become the logistics hub for

Southern Africa.”

Trans-Caprivi CorridorThis corridor provides the shortest route between

Walvis Bay and the transport hubs of Livingstone,

Lusaka and Ndola in Zambia and Lubumbashi (in

the southern DRC) as well as Zimbabwe.

It is also well positioned between the SADC region

and Europe, North and South America as well as

the emerging Far East markets.

Trans-Kalahari CorridorLinking the Port of Walvis Bay to Botswana’s

capital, Gaborone, and the industrial heartland

of South Africa, Gauteng, as well as Zimbabwe,

it is perfectly positioned to service the region.

The infrastructure supporting the corridor

boasts the most efficient intermodal blueprint

for the region incorporating the ports, air,

tarred roads and rail networks, as well as auto-

mated border post customs procedures.

It allows for a 48-hour transit to and

from Gauteng.

Trans-Cunene CorridorLinking the Port of Walvis Bay to Lusaka

in Angola (via Tsumeb and Ondangwa to

Oshikango in Namibia) and the Santa Clara

border post in Angola, it is positioned to ser-

vice two-way trade between Angola, Namibia

and South Africa with Europe, the Americas

and the Far East.

Trans-Oranje CorridorThis tarred road links the ports of Walvis

Bay and Luderitz with the Northern Cape in

South Africa. The corridor is complemented

by a railway line from the Port of Luderitz

extending southwards to the Northern Cape

via Upington. This corridor allows for a 48- to

72-hour transit to and from Johannesburg.

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Our strategic plan has been focusing on efforts to increase cargo volumes for both the Port of Walvis Bay and the WBCG

31TWA | Jul/Aug 2014

CORRIDORS

Port of Walvis BayNamibia’s largest commercial port, Walvis Bay, is a natural gateway for international trade. Strategically situated in the central coastal region of Namibia, Simon Foulds speaks to Namport’s Cliff Shikuambi about what the port offers as an alternative route to accessing principal shipping routes.

THE PORT RECEIVES approximately 4 000

vessels annually with its container terminal

accommodating ground slots for 3 875 contain-

ers with provision for 424 reefer container plug

points. The container terminal can host 355 000 containers

per annum and there are plans to expand this terminal.

Key benefits of using the Port of Walvis Bay“The port is secure, efficient and world class,” says

Shikuambi. “The turnaround time is competitive, with han-

dling times for container vessels of around 12 to 15 hours.

“Depending on the tonnage and shipment, the turna-

round time for bulk vessels averages between 24 and 48

hours, while for bulk-break vessels it averages between

18 and 20 hours.” Further to this, he says the port

SEA FREIGHT

32 TWA | Jul/Aug 2014

is congestion free with minimum

delays. The port currently handles

seven million tonnes per year with its

total capacity equipping it to handle

eight to nine million tonnes of cargo.

“The port prides itself on delivering

an increasing demand for customer

services and it has world-class infra-

structure and equipment, ensuring

reliable and safe cargo handling.”

Shikuambi adds that temperate

weather conditions are experienced

all year round and no delays are

caused by the weather. Maximum

security measures and procedures

are in place and it is compliant with the International Ship

and Port Facility Security Code.

“Deep water anchorage is available inside the port

which is protected by a natural bay and another plus is

the low risk in respect of insurance with no pilferage,”

states Shikuambi.

“Another advantage for port users is that the routes

managed by the Walvis Bay Corridor

Group make access to the hinterland

easy and fast. The Gauteng market

can be reached via the Trans-Kalahari

Corridor instead of going via Durban

or Cape Town, saving between 7 and

11 days in transit time.

“The port is also served with trade

routes from South America, the Far

East, Europe, North America and the

Middle East.

“Transit time from Antwerp to the

port is only 17 days.”

Mega projectsTo attain its vision of being the best

performing world-class port in Africa,

Namport is embarking on numerous

mega projects at Walvis Bay. The pro-

jects include a new container terminal

along with a SADC Gateway Port to

increase the capacity of the port.

MAIN FEATURES NEW CONTAINER TERMINAL

• 40 hectares of new land for the construction

• 600 m of quay length to the existing 1 500 m

• 650 000 TEU capacity per annum up from current 350 000

• cost approximately NAD 3 billion• creates additional capacity for all port

businesses to expand.

MAIN FEATURES SADC GATEWAY PORT

• total of 1 330 hectares of port land (105 ha current port)

• 10 000 m of quay walls and jetties to yield approximately 30 large berths (current port 1 500 m of quay walls)

• world-class ship and rig repair yard plus an oil and gas supply base

• huge covered dry bulk terminal• car import terminal/ro-ro terminal• container terminal (if needed in

the future)• liquid bulk terminal with very large

crude carrier berths• multipurpose and break-

bulk terminals • backup storage areas/dry ports• new high-capacity rail, road, pipeline

and conveyor link to the area be-hind Dune 7.

MAJOR IMPROVEMENTS

• To accommodate bigger vessels like the WAFMAX and others in the same category, the port underwent the following major improvements:

• the extension of the main entrance channel from 4.5 nautical miles to 5.2 nautical miles.

• deepening of the main entrance channel, turning basin and adjacent berths # 1-3 for the container terminal from -12.8 m chart datum to -14 m

• the expansion of port limits further north to improve on port security

• the installation of a state-of-the-art port surveillance system commonly known as the VTS to monitor traffic movements in the wake of increased traffic movements due to a growing ship and rig repair industry

• new paper and electronic charts for electronic chart display sys-tems (ECDIS).

33TWA | Jul/Aug 2014

SEA FREIGHT

35TWA | Jul/Aug 2014

AIR CARGO

AIRLINK CARGO, a division of SA Airlink, pro-

vides air freight transport to more than 30 desti-

nations across Southern Africa. It offers a direct

air freight service within South Africa and to

international airports such as Botswana, Zambia, Zimbabwe,

Mozambique, Madagascar, Lesotho and Swaziland.

The diverse network of Airlink Cargo within South Africa

comprises flights to Polokwane, Nelspruit, Phalaborwa,

Skukuza, Richards Bay, Umtata, Durban, Bloemfontein,

Kimberley, Upington, Cape Town, Port Elizabeth, East London

and Pietermaritzburg.

African marketSays Rautenbach: “The market has seen a tremendous

increase in growth into Africa in the past few years. We have

a direct service most days of the week into the continent,

providing customers with consistent, timeous and sufficient

connections to support the growth of the African market. At

the same time, the nature of Johannesburg being the cargo

hub in Africa has changed as more international carriers are

starting to fly direct to certain airports.

Future operations“We are very optimistic about future operations as we are

growing with the market by introducing new destinations

into our network regularly. Some of the most recent addi-

tions into our network is the introduction of two daily flights

between Johannesburg and Gaborone, four daily flights

between Johannesburg and Bloemfontein, two daily flights

between Johannesburg and Kimberley and the opening

of the Skukuza Airport with daily flights from Cape Town

and Johannesburg.

Increasing inter-African trade“In some African countries, governments are still very

involved with air carriers and their operations by preventing

foreign carriers to compete in their country. Once fair compe-

tition is granted, increased trade will follow.

“Currently there is a much higher trend in imported goods

rather than exported goods within some African countries.

African countries will therefore also have to focus more on the

development and growth of agricultural products to export

goods in order to have equilibrium between imports and

exports within these countries. There is also still a lack in the

number of reputable international freight forwarding and cou-

rier companies to stimulate the growth of air transport within

Africa and to deliver a seamless logistics chain.

Growing the economy“Air freight plays a big role and facilitates trade intra-Africa

as it provides a good transport infrastructure solution where

Driving force in moving freight

goods can be transported between two or more countries in

a timeous manner.

Air as opposed to road and rail“Air freight transport provides one with a quick and efficient

solution to send and receive goods, especially into and from

areas where the infrastructure to utilise an alternative trans-

port modus is not as accessible and practical to use. The

advantage of utilising air transport with a distribution network

such as Airlink Cargo is it provides its customers with a

wide variety of different options to either send cargo point to

point or to connect cargo between African countries, or from

African countries to international destinations, by utilising

Johannesburg as the hub.”

Air cargo worldwide transports goods worth in excess of $6.4 trillion on an annual basis, which is approximately 35% of world trade by value. Simon Foulds speaks to Alwyn Rautenbach, executive manager: Airlink Cargo, to find out how the company contributes to moving freight across Africa.

FUEL

When it comes to keeping your fleet working efficiently, protection across the driveline is crucial. High-performance lubricants – based on synthetic technology – offer a wide range of benefits over traditional mineral-based lubricants. Raymond Abraham investigates.

Enhance your bottom lineSYTHETIC OIL

EVERY FLEET MAN-AGER or mainte-

nance engineer wants

to be certain that when

using an oil for their fleet, it pro-

vides the right level of protection

to the engine. The lubricant must

reduce friction and protect the

engine against acids, deposits,

and wear in extreme temperatures and in a

range of operating conditions.

The introduction of synthetic and semi-syn-

thetic oils represents a huge change for the

heavy-duty transport industry. With advancements in

engine technology, there is an increase in demand for

high-performance lubricants that deliver the performance-

improvement aims of the engine manufacturers, espe-

cially regarding fuel economy. By using advanced lubricant

technology developed under

laboratory conditions, these

oils help mitigate the risk of

breakdown and keep vehicles

on the road for longer.

Traditionally, lubricants

have been based on mineral

oil, a component of whole

crude oil used in thousands

of everyday applications,

from engines to cosmetics.

Thanks to modern refining

technology, today’s high-

quality mineral oils provide

adequate protection. But

mineral base oils are complex

mixtures of naturally occur-

ring hydrocarbons and may

contain impurities. Synthetic

lubricants contain synthetic

base oils, which are made

with chemicals from simpler

hydrocarbon substances for

excellent low-temperature

flow properties, high resist-

ance to thermal degradation

and low oil consumption. Increasingly, cus-

tomers are appreciating the value that

top-tier synthetic products

can bring to their busi-

ness, despite a higher ini-

tial cost. Benefits include:

• reduced oil-change

intervals

• lower maintenance costs

• less wear on parts.

This means more value in the long run.Advances in synthetic oil technology have delivered

lubricants that offer many benefits over traditional mineral

oil-based engine oils. An important function of lubrication,

for example, is ensuring the engine continues to be protected

under extreme temperatures, including cold starts, and at

high operating temperatures.

High-quality synthetic

base oils are engineered

for excellent low-tem-

perature flow properties,

high resistance to ther-

mal degradation and low

oil consumption. When

combined with advanced

additive technology, this

results in products that

are well placed to deliver

best-in-class engine pro-

tection. Compared to

some mineral oils, this

means that synthetic

products can help extend

equipment life.

The latest generation of

synthetic lubricants also

fulfils additional functions

that can help improve cost

efficiencies. Traditionally,

delivering enhanced fuel

economy meant lower vis-

cosity (thinner) oils, which

helped to reduce friction

Synthetic oils can last up to three times longer than regular oils, as they are designed to flow more easily at start-up temperatures

36 TWA | Jul/Aug 2014

THE AUTHORRAYMOND ABRAHAM is Shell South Africa’s commercial techni-cal manager

Enhance your bottom line in the engine but with the perceived trade-off of reduced

engine protection.

A basic understanding between synthetic and mineral oils

can give fleet managers the confidence to gladly accept an

oil change, which will ultimately lead to a cleaner engine that

operates more efficiently, delivers more power and consumes

less fuel. Synthetic oils can last up to three times longer than

regular oils, as they are designed to flow more easily at start-

up temperatures. They are more resistant to oil degradation

and protect against wear more readily.

Scientists at Shell have developed heavy-duty diesel engine

lubricants, which combine high-quality, low-viscosity syn-

thetic base oils with advanced additive technology, to deliver

robust fuel economy and wear-protection performance.

One example is semi-synthetic Shell Rimula R5 E, which

has been shown to result in 30% longer engine oil life and

a 1% increase in fuel efficiency, compared to standard

SAE 15W-40 oils.

Fully synthetic Shell Rimula R6 LME contains high-quality

synthetic base oils and advanced additive technology that

instantly act when needed, helping keep equipment protect-

ed and clean. Developed in collaboration with Daimler, Shell

Rimula R6 LME provides increased protection and piston

cleanliness, exceeding Daimler’s most demanding limits.

Axle, transmission and gear oils also have an important role

to play. Fully synthetic protection across the whole vehicle

driveline can help contribute to fuel savings, when compared

to mineral gear and axle oils. Shell Spirax S6 AXME – axle

oil – and Shell Spirax S6 GXME – gear oil – have special

frictional properties and high fluidity that reduce power loss,

lower the operating temperature and offer higher mechani-

cal efficiency. These properties can help to cut fuel costs

for businesses.

Selecting a high-quality lubricant is critical for businesses

because providing the right level of protection helps to

extend equipment life, protecting valuable assets. Under

challenging conditions, high-quality synthetic base oils and

advanced additive technology used in synthetic products are

well placed to deliver the best all-round engine protection.

As CO2 emission standards continue to be driven by regula-

tors, engine technology advances, which places significant

demand on oil manufacturers to produce more innovative

and fuel-efficient lubricants. Shell has spent many years

developing and understanding the science behind energy-

efficient lubricants and Shell’s synthetic range of lubricants

is the outcome.

37TWA | Jul/Aug 2014

FUEL

ADVERTORIAL

Marketing and communica-

tion manager, Muaaz Gani

concedes that there have

been some delays in the past

few months and, as with any project of this

scale, challenges are significant but bring

out the best in those working on the project.

As Gani explained in a report-back meet-

ing recently, 2013 was the year of planning,

design and construction, while 2014 will be

the year of intense construction, negotiations

with the taxi industry and the long-anticipat-

ed launch of the new public transport brand

for the system.

As of the

end of January

2014, R683 mil-

lion was spent

on the pro-

ject. For 2014

to 2015, the

budget is R900 million, followed by R1 billion

the following year, though this includes the

bus fleet as well. The first section of Corridor

A on the R104 has been completed and

construction of the Corridor B (north-east)

bus lanes is under way.

The locations of bus stops along feeder

routes are currently being determined and,

when finalised, will be shared with the public

and other affected parties. Bus stops will

be a combination of shelters and stops,

depending on the location and needs of

commuters. Work will start on the stations

on the Tlhabane trunk route this year, while

bus stop and shelter designs are being

finalised for the feeder routes. Work on the

design for depot and bus holding areas has

already commenced. Importantly, more than

30% of materials, labour and supplies are

being procured from local businesses.

For Phase 1 and Phase 2, two depots and

one holding area will be needed and a depot

is planned for the CBD and Boitekong. This is

close to the trunk routes in order to minimise

‘dead’ kilometres travelled by the buses.

RUSTENBURG RAPID TRANSPORT UPDATE Initial research into how the citizens of Rustenburg felt about the city’s proposed bus rapid transport (BRT) project elicited various positive responses. “We as a community are moving together as one”; “It includes everyone”; “… We are a united city”, were some of the encouraging phrases, which inspired the project’s name, Yarona – meaning ‘ours’. There is an ever-increasing sense of pride felt by the residents of Rustenburg, as the project grows from strength to strength.

Muaaz Gani, marketing and communications manager

38 TWA | Jul/Aug 2014

Addressing traffic considerations, Gani

said of the North West Corridor (R104): “The

RRT is currently conducting traffic counts to

address the traffic volume experienced this

year to determine the optimum traffic flow.”

As part of the recalibration of traffic signals,

the right turning signal timing as experienced

by road users will be adjusted accordingly.

“The installation of traffic signals at these

intersections has been designed to ensure a

smoother flow of traffic, in anticipation of the

future public transport system,” said Gani.

Parking policy changes for public transport

have been introduced and, with the intro-

duction of an integrated public transport

network, it was necessary to develop a

clear policy around the routes and parking of

private vehicles in and around where public

transport is being operated.

“This is both from a safety and congestion

point of view to ensure passenger safety

and ease of use and prioritisation of public

transport,” he elaborated.

Public meetings will be held in July 2014

to garner a response, but strategies to be

Rustenburg rapidly moving

• compensation negotia-

tions with taxi industry to

be completed by 2015

• there will be an overlap

between compensation

and operating contract

negotiations

• the contract between

Rustenburg Municipality

and bus operation com-

panies to be signed by

2015, for Phase 1 and

Phase 2 operations

• launch of new public

transport brand

• procurement of Phase 1 and 2, 210 bus

fleet for 2016 operations.

Regulating and directing freight transport around urban areas, and where public and

private car transport operates, is vital

39TWA | Jul/Aug 2014

Rustenburg rapidly movingimplemented include the protection of public

mobility routes by removing on-street park-

ing on the RRT corridors for safety and con-

gestion. Alternate off-street options will be

provided and ‘park and ride’ facilities will be

promoted. People will also be encouraged to

use bicycles and walk in and around the city

In complying with universal access guide-

line principles, parking for the disabled will

be dramatically increased to a ratio of one

disabled bay for every 50 normal bays.

Modern parking technology will facilitate

improved overall management and there

will zero tolerance for non-compliance and

illegal parking.

A freight policy is being developed to

address the fact that presently road trans-

port is the dominant means of freight move-

ment to, from and through Rustenburg, and

will continue to be for the foreseeable future.

As Gani explained, “Regulating and direct-

ing freight transport around urban areas,

and where public and private car transport

operates, is vital.”

More consultation will inform the actu-

al details of the short- and medium-term

freight plan.

Industry transitionNine taxi associations will be affected by

Phase 1 and 2 of the RRT and a taxi negotia-

tion forum has been formed from these asso-

ciations to negotiate inter alia the following:

• compensation

• formation of the BOC

• the 12-year bus-operating contract

• bus transition

• affected routes of Bojanala/

Thari have been identified and

agreed to

• an MOU has been con-

cluded between Rustenburg

and Bojanala Bus, confirm-

ing the engagement and

transition processes.

It is anticipated that all these

processes will take another 12

months to complete.

The project’s key mile-stones for 2014:• the affected business evaluation process

to be completed by 2015

R683 mThe spend as at the end of January 2014

R900 mThe budget for 2014 to 2015, with R1 billion earmarked for 2015 to 2016

ADVERTORIAL

AIR CARGO

African Ports Evolution 34

Airlink Cargo IBC

Argus Africa Storage and Logistics 2014 37

Babcock (DAF) 25

Connecting Africa: Transport

Infrastructure 26

Cargo Carriers 20

Digicore OBC

Electra Mining Africa 30

First Automobile Works (FAW) 10

Inter Africa 31

Mercedes-Benz OFC

Rustenburg Rapid Transport 38-39

Scania South Africa IFC

Shell SA 3

Total 16

UD Trucks 4

Volvo Trucks 14

Index to advertisers

40 TWA | Jul/Aug 2014

DEMAND HAS NOT, however, grown in recent

months. Traffic levels in April were slightly

below those of January and 1.1% lower than

what was recorded in March.

Latest data show that prior improvements in the demand

environment are experiencing some reversal. Largely as

a result of further slowdown in the emerging markets,

mostly China, indicators of business con-

fidence slipped further in April. Levels

still point towards growth, but at the

weakest pace for the past five months.

World trade growth has also slowed over

recent months. However, momentum in

advanced economies remains intact, and

export orders still point to expansion.

This suggests that current sluggishness

in the demand drivers is likely temporary.

Tony Tyler, IATA’s director general and

CEO says, “Trading conditions for air

freight are difficult. Overall, business activity and trade

have shifted down a gear after a strong end to 2013.

And this is taking its toll on growth in the air cargo

sector. Developed economies are still maintaining

post-recession momentum and the expectation is for

a stronger finish to the year.”

“The air cargo sector is committed to improving its

attractiveness to shippers through efficiency. The

goal is to reduce shipping times by 48 hours before

2020. A centrepiece of this effort is the e-freight ini-

tiative which seeks to modernize the air cargo sector

with paperless business processes.”

Data released for global air freight markets in April by the International Air Transport

Association (IATA) show demand was 3.2% above previous year levels.

Air freight markets in modest slowdown

Tony Tyler, director general and CEO, IATA

“Air cargo’s sales advantages is speed, and cum-

bersome processes are holding us back. In March we

reached a significant milestone. For the first time, the e-Air

Waybill (e-AWB) was used for over 200 000 shipments.

That’s good news but we still have a long way to go.”

African airlines saw air cargo demand grow by 2.9%.

Further growth was held back by weakness in key econo-

mies in the region, such as South

Africa. Capacity rose by only 1.1%. IATA facts

• Total market shares, in terms of freight tonne kilometres by region of carriers:

• Asia-Pacific grew by 5.2%• European airlines fell by 0.7% • North American carriers grew by

2.6%. • Middle Eastern carriers expanded

by 8.7%• Latin American airlines suffered a

fall in cargo demand of 6.5%

Export orders still point to expansion

to fr

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