TWA June JUly 2012

HOT SEAT

Intraregional supply chain soluti ons from producer to consumer

ENDORSED BY

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

"Truckers and supply chain logistics service providers want more than a truck. They want added value" Bruce Dickson, Deputy CEO, MAN Truck & Bus SA P14

In the year 2045

oil may have run out

Trans-Kalahari Corridor

A viable alternative

Commuter rail

In for an overhaul

Safe, efficient air cargo transportbuilt on exacting standards

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Intraregional supply chain solutions from producer to consumer

INSIDE

COVER STORYWhether it is for air freight or

passenger transport, air safety is absolutely critical for the economic

development and well-being of Africa, its people and its visitors P4

consumer

ORYight or fety is nomic

Africa,P444

FESARTABarney’s comment 3FESARTA News 6

HOT SEATNot just a customer 10

INSIGHTIn the year 2045 12

COMMERCIAL VEHICLESCustom built 16Trucking with natural gas technology 17Hino expands into Africa 18

ROAD TRANSPORTSurviving a rollover 20

REGIONAL FOCUSWalvis Bay, a viable alternative 22

SUPPLY CHAIN LOGISTICSGrowth, competitiveness and the Africa question 24SCL industry needs a makeover 25

ROAD FREIGHTA critical aspect in safe transportation 28

FREIGHT RAILDemystifying Transnet’s ‘Back to Rail’ strategy 14

Tracks may never meet 29

SEA FREIGHTProductivity gains at Durban’s DCT Pier 2 34Lawhill Maritime Centre wins award 36

PUBLIC TRANSPORTLocal commuter rail system in for a major overhaul 30

PARTS & MAINTENANCESaving money, saving time 37

TECHNICAL CORNERCarbon emissions an ongoing challenge 39

REGULARSEditorial Comment 2News Desk 8The Tail End 40

03

30 36

33

12

04

1TWA | Jun/Jul 2012

Publisher Elizabeth Shorten

Associate Publisher Ferdie Pieterse

Editor Tony Stone • [email protected]

Head of design Frédérick Danton

Senior designer Hayley Moore Mendelow

Contributors AIDC, Barloworld Logistics, Barney

Curtis, IATA, John Batwell, Paul Hoben, PwC

Senior Sub-editor Claire Nozaic

Sub-editor Patience Gumbo

Production manager Antois-Leigh Botma

Production coordinator Jacqueline Modise

Distribution Manager Nomsa Masina

Distribution coordinator Asha Pursotham

Financial manager Andrew Lobban

Administrator Tonya Hebenton

Printers United Litho JHB • t +27 (0)11 402 0571

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ISSN 1684-7946 © Copyright. All rights reserved.

Editorial advisory board

• Barney Curtis, executive officer of FESARTA

• Garry Marshall, CEO, SA Express Parcel

Association

• Bill Cameron, director, Transport Research

Consultancy

• Graham Ross, retired road engineer

• Dr Andrew Shaw, principal transport analyst for

Development Bank of South Africa

• Captain Colin Jordaan, CEO and commissioner of

the Civil Aviation Authority

• Prof. Leon Raath, board member, Chartered

Institute of Logistics and Transport, South Africa

• Barlow Manilal, CEO, Automotive Industry

Development Centre and National President of

The Chartered Institute of Logistics & Transport

(CILTSA)

• Anthony Cole, COD, Concorde Maritime Academy.

All articles herein TWA are copyright-protected and may

not be reproduced either in whole or in part without

the prior written permission of the publisher. The views

of contributors do not necessarily reflect those of the

publishers.

It is quite amazing how the SADC, COMESA and EAC Tripartite member

states differ in legislation. Who would have thought that bullbars would be an

issue? In this issue FESARTA looks into the issue.

Disregarding what appears to be trivia, but isn’t, and despite the doom and

gloom in the United States of America and Europe, the exciting thing about Africa

is its economic growth rate. If we carry on with our sensible, pragmatic approaches

to economic development we will sustain the boom and realise the projected GDP

contributions the experts are talking about. Let’s build on it, I say.

Nonetheless, in taking lessons from the first world economic downswing, cus-

tomers are becoming a little more discerning. Not just willing to spend money,

they are looking for value, and sustainability. MAN Truck & Bus SA has certainly

twigged onto this little gem.

And, looking to the future, to 2045 specifically, it is projected that we will be

running out of oil. That will be a real problem. So, what’s the alternative? That is

the question. Perhaps natural gas technology is the answer. However, there are

other more sustainable solutions.One of the solutions or rather part of a solution

will be getting freight rail back on track. This in fact is Transnet’s strategy, as was

outlined at the FACE2FACE business breakfast where Siyabonga Gama, CEO of

Transnet Freight Rail, was

the keynote speaker. But,

there are challenges as we

discovered when we looked

into bulk maize transport.

With the wide range of

trucks available to transport

we need to be selective.

To assist you Transport

World Africa (TWA) talks

about a few of them, leav-

ing you as always to make

the choice. Whatever you

decide it will not be your

only decision. Which routes

to take in transporting

goods within the supply chain are equally critical! To this end TWA considers

the Trans-Kalahari Corridor. And, talking about supply chain logistics, the latest

TransportLogisticsForesight 2012 report is out, and is filled with useful business

intelligence. Added to which is another, future oriented report that looks at the

skills issue within the supply chain logistics industry, with some alarming findings.

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

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

Not to be outdone, Transnet National Ports Authority, is not only embarking on a

huge infrastructure upgrade but is also focusing on some of the soft issues such

as productivity – very much needed if we are to retain our status as the gateway

to Africa.

Then, coming to the end of the magazine, TWA takes a look at a few technical

issues – hydraulics and carbon emissions, with both proving to be interesting

reads.

Enjoy.

Africa rising!

EDITOR’S WORD

Siyabonga Gama

2 TWA | Jun/Jul 2012

by Barney Curtis, chief executive offi cer, FESARTA

FESARTA COMMENT

Bullbars

was involved in a similar project to determine the load

limits). When this project is completed and the limits

agreed, the outcomes may well influence what is already in

SADC’s document; since the three RECs work together on

such matters.

Below is input from the Botswana Hauliers Association:“We have fought

this before, for

our own fleets,

just a few years

ago, and ended

up having to

remove our bull-

bars - which are

now not encour-

aged because of

the negated benefit of manufacturer crumple zones, an

added safety precaution for pedestrians. The use of bull-

bars puts one at a higher legal risk with respect to culpable

homicide charges should a pedestrian be run over and

killed. Toyota is now only prepared to fit a small central

bullbar protecting the radiator on a 4x4 and not one that

covers the crumple zones. It is understood that the legal

and insurance fraternities are also in sympathy with this

approach and is therefore only a matter of time before it

is challenged in the courts. All major fuel companies now

disallow the fitment of bullbars, and this is a clear indica-

tion of the associated legal and financial risks.”

It is traditional, in many parts of East and Southern

Africa, for transporters to fit “bullbars” onto the

front of their trucks. As you know, this is also com-

mon practice in Australia, where they are referred

to as “rooguards”, to fend off Kangaroos in the outback.

However, there are some issues that need to be under-

stood and put to use as input in our decisions.

Bullbars have been fitted to protect the front end of the

truck against damage caused to the vehicle by a collision

with an animal. This happens when trucks are driven over

long distances, in rural areas, at night. Such transporters

are adamant that fitting a bullbar makes economic and

safety sense. A collision with a large animal will destroy

a very expensive front end of the truck and, because the

headlamps are likely to be destroyed, will make the vehicle

unsafe to drive.

However, bullbars are seen as a bad safety issue by

authorities, as they are not pedestrian-friendly. To an

increasing extent, trucks are being designed and con-

structed to be pedestrian-friendly, that is, they have crum-

ple zones to protect the pedestrian in case of a collision.

Fitting a bullbar removes that protection for the pedestrian.

In some Southern African countries, the regulations allow

an extra 300 mm to the overall truck length limits , that is,

if an interlink or a truck and trailer is fitted with a bullbar, its

overall length limit is 22.3 m and not 22. SADC’s recom-

mendations also include this provision.

The University of Dar es Salaam is carrying out a project

on behalf of the EAC, to determine the dimensional limits

for the East African Community. (Last year, FESARTA

Hitting a 600 kg cow, a horse or even an antelope at night at a sedate Hitting a 600 kg cow, a horse or even an antelope at night at a sedate 60 km/h is a frightening experience. Drivers and passengers have 60 km/h is a frightening experience. Drivers and passengers have

been killed. been killed. FIT A BULLBAR?FIT A BULLBAR?

Where to from here?

As the road transport industry:Do we agree with the fi tting of bullbars? If so, do we ask for an extra 300 mm for them (as per SADC’s recommendations)?Do we disagree and FESARTA proceeds to have their provision removed from regional recom-mendations?

3TWA | Jun/Jul 2012

COVER STORY

Air safety in Africa is a concern. Coordinating the various programmes currently being the various programmes currently being put in place will be key to improving the put in place will be key to improving the continent’s safety record. continent’s safety record.

Air travel is essential to the African economies but,

to exploit aviation’s full potential, it must be safe

for everybody. Many African carriers have exem-

plary safety records and those that have com-

pleted the IATA Operational Safety Audit (IOSA) have safety

records 46% better than non-IOSA members. Nevertheless,

the region as a whole has been at the bottom of the safety

statistics for too long.

Figures improved in 2010. Africa had an accident rate of

7.41 Western-built jet hull losses per million sectors flown, an

improvement of 25% compared with 2009. But this was still

more than 12 times the world average. Such statistics are

doubtless hurting the African carriers and, by extension, the

African economy. Passenger numbers fall after an accident,

particularly in the high-yield international sector, insurance

premiums soar higher, and codeshare agreements grow in

complexity and fall in number.

f t f d tf t f d t

Safety in African skies

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

AIR SAFETY


Raising the barThere is no single solution to the African safety issue

because there is no single problem. “The poor safety record

results from a combination of factors,” explains Guenther

Matschnigg, International Air Transport Association (IATA)

senior vice president, Safety Operations and Infrastructure.

“It is about the safety culture, a lack of resources, the need

for skilled personnel, poor infrastructure, and inadequate

safety oversight.

“Some carriers do have modern aircraft and there are

experienced pilots,” he continues. “But this is not the whole

story. To buy a good aircraft you just need a friendly bank

manager. To run a safe, reliable operation is something else

again, and requires all of the factors mentioned above to be

beyond reproach.”

A closer look at the data provides clues about poten-

tial safety improvements. For example, runway excur-

sions are particularly high in Africa. Two initiatives should

prove particularly useful. In 2009, in conjunction with Flight

Safety Foundation, IATA released a Runway Excursion Risk

Reduction toolkit. More than 8 000 copies have been deliv-

ered to airlines worldwide and the information was backed

up by 12 global workshops in 2010. As a result, IATA mem-

bers have reduced their runway excursion accidents by 43%

since 2008. A revised version of the toolkit, produced in

conjunction with the International Civil Aviation Organisation

(ICAO) will be released in May at a Global Runway Safety

Symposium hosted by IATA and ICAO.

In 2009, IATA also launched the Implementation Programme

for Safe Operations in Africa (IPSOA). This is an IATA-funded

Flight Data Analysis (FDA) scheme for IATA member airlines

in Africa. IPSOA provides carriers with a data-driven safety

management system essential

for ICAO compliance. As of

August 2010, all of IATA’s African

members had FDA programmes

in place.

A recent review of IPSOA car-

riers indicated a nearly 40%

reduction in events. Unstable

approaches – where the aircraft

is flying too high or too fast – are

a precursor to runway excursions.

Thanks to the FDA program, an

airline’s safety team can focus on

the precise details of an event,

allowing the airline to change its

training programs and operations

to eliminate the problems. Identifying specific answers can

go a long way to improving overall safety, with more than

100 different flight safety events tracked in the FDA program.

Workshops to review IPSOA and FDA performance are

ongoing. It has already been noted that the airports with the

least number of unstable approaches are those that had

implemented Continuous Descent Approaches, or similar

precision techniques, as recommended by IATA through

its environmental campaign. These improvements marry

safety with efficiency. The next steps involve working with

the airports and air navigation service providers to tackle all

contributing factors to unstable approaches.

“We are also looking more carefully at safety management

systems,” says Matschnigg. “Safety Management System

(SMS) has now been added to IOSA, which has been a con-

dition of IATA membership for a while. But more can be done

to help carriers in the SMS implementation phase and ensure

that they fully understand the capabilities of the system.”

All of this follows on from the improvements resulting from

IOSA. “Clearly, such comprehensive safety programs form

part of the solution,” Matschnigg notes. “Governments must

make use of IOSA to boost the region’s performance.”

United approachDespite these efforts Matschnigg believes there is still more

work to do. The main focus, he insists, has to be coordina-

tion and reaching out to those airlines not currently covered

by IOSA. The United States Department of Transport has had

a Safe Skies for Africa programme in place for a number of

years. IATA itself has done a lot of work, as has ICAO and

the European Union. And there is a plethora of organisations

in Africa working on a country, regional, or pan-continental

basis. “The programmes are usually good but it obviously

presents a very complex picture to an African carrier,” says

Matschnigg. “Whose guidance should they follow? Where do

the programs overlap?”

Africa needs one action plan and a strong commitment

from all parties, including African carriers. They must get

involved and buy in to the one action plan concept. African

governments and service providers must also be proactive

in forming a single coherent safety strategy and following it

through on an agreed timescale.

Cobus Toerien, Manager Flight Safety for South African

Airways, agrees there needs to be greater transparency.

“Safety issues involve all the carriers operating in the same

airspace,” he notes. “IATA has helped enormously but we

must continue to emphasise a safety reporting culture.”

One action plan doesn’t mean one size fits all. Rather,

Matschnigg suggests there could be a modular approach,

allowing the strategy to be tailored to individual needs.

The fact that the overall scheme is coordinated will ensure

any work dovetails perfectly within the carrier itself and in a

broader context.

“IATA is serious about safety in the region,” concludes

Giovanni Bisignani, IATA director general and CEO. “We are

also constantly improving IOSA, raising the bar for safety. We

have many programmes to assist our members in meeting all

IOSA standards, including a new set of SMS requirements.

Flying must be safe everywhere – including Africa.”

Skills shortageAfrica is facing a shortfall in pilots

and skilled staff as traffic increases.

Africa produces plenty of highly

skilled pilots and aircraft engineers

but market forces have pushed

many trained personnel towards

other regions, such as the Gulf

States, where better rewards and

perhaps greater career opportuni-

ties, such as the potential to fly big-

ger aircraft, are on offer.

Although this has to be acknowl-

edged as a problem, it is by no

means insurmountable. Making

African aviation attractive would

certainly stem the flow. “And that

starts by making it even safer,”

says Matschnigg.

“The region would then be seen

for its many advantages, not only its

faults. Africa is a fascinating part of

the world and aviation is crucial to its

development. Presented in the right

way it could attract the best people

in the industry.

This article is sponsored by Emirates

COVER STORY

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

5TWA | Jun/Jul 2012

DEADLY STATS

yearNo of acci-dents

deaths

2011 117 828

2010 130 1,115

2009 122 1,103

2008 156 884

2007 147 971

2006 166 1,294

2005 185 1,459

2004 172 771

2003 199 1,230

2002 185 1,413

2001 200 4,140

2000 189 1,582

1999 211 1,138

FESARTA NEWS

THE ZIMBABWE Revenue Authority (ZIMRA)

is working in partnership with business asso-

ciations to craft a Memorandum of Understand-

ing (MOU) to create the Zimbabwe Customs to

Business Forum.

Addressing delegates at the Shipping and

Forwarding Agents’ Association of Zimbabwe’s

8th annual conference in Beitbridge, ZIMRA’s

ZIMBABWE

Business to form Customs Forum

SOUTH AFRICA

Road Transport Market Liberalisation workshop

commissioner for Customs and Excise, Happias

Kuzvinzwa said the interim steering commit-

tee was fi nalising the draft MOU and terms of

reference.

Kuzvinzwa, said the forum was a platform for

his organisation and business to collaborate

on issues of compliance, policy, capacity building,

and integrity and technical engagements.

He added that in line with the SAFE framework

of standards, ZIMRA would soon be plotting the

authorised economic operators.

Kuzvinzwa explained that the scheme sought

to reward all compliant operators in the supply

chain who meet the set criteria, adding that the

groundwork had been done and teams would be

conducting stakeholder consultations and aware-

ness workshops in July.

“I would also want to urge the freight industry to

embrace as a culture and operation ethos integ-

rity, voluntary compliance, relevant competencies,

and information technology.

“Missing these industry risks is being packed

into the dustbin of history as you become ir-

relevant and classifi ed as non-tariff barriers.” he

said. Kuzvinzwa added that ZIMRA was also in

the process of putting in place a border agency

single window through ASYCUDA world. He said

all border agencies would be connected to the

workfl ow process through ASYCUDA world to

ensure that respective mandates are coordinated

and streamlined.

“Discussions are at an advanced stage with other

border agencies on the implementation of the

single window and Beitbridge has been selected

to pilot the programme with ZIMRA providing

computer workstations at their respective of-

fi ces,” he concluded.

A WORKSHOP to deal with matters pertain-

ing to Phase 2 of the Road Transport Market

Liberalisation project to harmonise market

access in the East and Southern African region

has been held in Johannesburg .

The workshop was funded by TradeMark

Southern Africa (TMSA) and chaired by the host

country, South Africa. Around 60 delegates

attended. The project covered freight and pas-

senger transport. Nick Poree tabled the phase

2 report, which was for the Development of

Harmonisation Proposals for Road Transport

Market Access.

The effect on trade facilitation of customs

procedures and documentation, road user

charges, insurances, customs bonds, other

levies and charges, drivers’ visas and work

permits, were not covered in this project. The

three main regulatory models which controlled

regional road transport were: Southern African

Customs Union (SACU) MOU, SADC bi-lateral

agreements and COMESA-EAC treaties.

The overlap of member states’ memberships

to RECs, affected the implementation of these

agreements. The general objective of the three

REC’s was to progressively liberalise market

access. This was clear in the SADC Protocol on

Transport Communications and Meteorology.

Generally, national road

traffi c regulations were

not aligned with regional

agreements. The applica-

tion of cross-border regu-

lations was completely

arbitrary across the East

and Southern African region.

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

Protocol.

• Transporters who complied with certain qual-

ity standards would be allowed to do cross-

border transport with much less restriction.

• Transporters would be required to comply

with increased quality controls and so im-

prove road safety.

• Quantity regulation required member states

to control the granting of permits and this

was not being done effi ciently.

• Any charges and levies applied to the trans-

porter, added to the cost of the goods to the

end-user and did not add to the fi scus of a

country (the costs were tax-deductible).

Against Quality ControlA country would lose revenue from the sale of

cross-border permits.

Small transporters could be compromised,

though the consultant disagreed with this, not-

ing that in a country such as Australia, most of

the transporters were owner-drivers.

South Africa had a different set of road trans-

port circumstances, in that only 10% of its road

transport originated from the ports and was

destined for other countries, whereas in other

coastal countries, most of the traffi c was cross-

border; that is, from port to inland destinations.

Mutual recognition was vitally important

for trade facilitation within the region. If a trans-

porter was registered or licensed in his own

country (with customs and/or transport) then

his company should not have to be registered

or licensed in a foreign country. Similarly, a

certifi cate issued in one country should be ac-

cepted in another country.

Questionnaires were completed on barriers to

liberalisation. The most important barriers, as

listed by the delegates, were:

• the requirement for permits

• duplicate documentation at borders

• bribery and corruption

Quality management included• register transporter with a number

• fi rm details with competent persons, drivers

(PrDPs), vehicles

• performance monitored – vehicle condition,

overloads, records, etc

• note changes to company details

• standard rating applied to the transporter –

A, B, C etc

•abnormal, dangerous goods etc

The issue of quantity control versus quality con-

trol needed further deliberation and member

states were requested to submit their input.

Economic liberalisation means freeing of prices, trade and entry to markets from state control while stabilising the economy


FESARTA NEWS

Transport World Africa’s roving editor, Tony

Stone, attended the conference Conference and

sent these “hot off the press” news items:

TATA, the main sponsors for the Conference,

launched two new long haul trucks – the Novus

and the Prima.

Sharmini Naidoo, CEO of the Road Freight Association

(RFA), berated the ill-considered introduction of carbon

taxes, e-tolls, added fuel levies, increased cross-border

permit fees as costs which threaten truckers’ profitability.

These costs will have to be passed on, ultimately to the

consumer, or truckers will have to close their doors. A huge

concern is government’s lack of due and proper consulta-

tion with the trucking industry in these matters. Having

seen “people power” in action.

The government should take note. “Without trucks, South

Africa stops,” she said.

Garth Bolton, joint CEO of Cargo Carriers, raised the

trucking industry’s deep concern, and ire, that it (the truck-

ing industry) was simply seen as a soft target for raising

taxes. “This was not acceptable,” he said.

Justice Mahlala, polical analyst, predicted a Zuma

second term if he does not create yet another scandal.

Mahlala also said corruption, greed and elitism will see

the demise of the ANC by 2024 and warned that the recent

e-toll court decision could produce undesirable conse-

quences, one of which is an indecisive government that

will affect business efficiency rebudgeting and forecasting.

MEC for Transport, Community Safety and Liaison in

KwaZulu-Natal, Thembinkosi Willies Mchunu, says (truck)

overloading remains a huge problem with as much as

25% of trucks in South Africa being caught overloaded.

Damage to roads is estimated to be R750 million.

Mike Schussler, noted economist, says that truckers

and cities can save between 15 and 30% of fuel costs

by implementing “green wave technology”, but it needs

government to embrace this technology and implement it.

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

Sean Nel, executive of the Industry Task Team on Climate

Change, said that the introduction of carbon tax will have

a negative impact on industry and economic growth

just as the shortage of electricity has and does nega-

tively impact the country at the moment. Mawethu Vilana,

deputy director-general of the Department of Transport

(DOT) acknowledged this saying that motorists were a

quick and easy target, which in terms of the government’s

socio-political objectives will remain in force as it is a reli-

able and sustainable means of taxation.

Marise Moore speaking on behalf of the National Treasury

said that, as of 2010, the national road maintenance back-

log was R149 billion. It is now 2012.

Peter Mountford, programme director at the RFA confer-

ence, in providing feedback from the meeting of the RFA

and DOT a year

ago, said that

the deputy min-

ister of the DOT,

Jeremy Cronin,

promised to shut

down the Cross

Border Agency if

it remained inef-

ficient. After a

600% increase in

fees the agency remains inefficient despite all the black

BMWs lined up in front of the agency. It’s now a year later.

Will Cronin shut down the agency?

Mike Schussler, noted economist, in commenting on

alternate funding for road development and maintenance

said that, over a two year period, saving the difference

between the bloated public sector salaries and the private

sectors salaries, there would be enough money to pay for

seven GFIP projects and one power station project.

Molatwane Likhethe, executive manager at Transnet

Freight Rail (TFR), in explaining Transnet’s “Back to Rail”

strategy affirmed that their strategy is to be driven by mar-

ket demand with a focus on bulk products. Hubs would

be created along major transport corridors in various loca-

tions across South Africa and there would be opportunities

for collaboration with private road transporters.

Eighteen trucks, towing various trailer designs and cargo

loads, took part in the 2012 “down run” truck test. While

the test produced some interesting results, the need to

have equal standards of comparison were highlighted.

O verall, the RFA 2012 was a very successful

conference.

Without trucks SA stops

RFA CONFERENCE 2012

This year’s Road Freight Association Conference was held at the Zimbali Coastal Resort in KwaZulu-Natal from 20 to 22 May.

(Below, from the top)

Sharmini Naidoo, CEO, RFA

Justice Mahlala, political

commentator

Nazir Ali, CEO, SANRAL

Mike Schussler, economist

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

Naidoo, CEO, RFA

7TWA | Jun/Jul 2012

THE AIRBUS CORPO-RATE Foundation and the

International Federation

of Red Cross and Red

Crescent Societies (IFRC)

have signed a coopera-

tion agreement for future

humanitarian logistics

collaboration. The agree-

ment was signed at the

IFRC headquarters in Geneva, Switzerland, by Bekele

Geleta, IFRC secretary-general and Tom Enders, chair-

man of the Board of Directors of the Airbus Corporate

Foundation and Airbus president and CEO, in the

presence of Birgitte Stadler-Olsen, IFRC head of Logistics and Andrea

Debbane, executive director of the Airbus Corporate Foundation.

The agreement strengthens the existing cooperation between both

partners by building on the following pillars:

• Transportation: Airbus will facilitate transportation of Emergency

Response Units, supplies and IFRC associated staff. This includes the

provision of Airbus test aircraft, its pilots and crew, as well as logistics

and ground handling staff.

• Training: Both partners will establish exchange and training of staff in

the fi elds of logistics management, procurement and optimisation.

• Community Relations: The partnership will extend to national Red

Cross and Red Crescent Societies to generate opportunities for local

collaboration such as joint volunteer initiatives.

This partnership marks one of only 11 global private sector partner-

ships of the IFRC, which has been a partner of the Airbus Corporate

Foundation since 2011. Both have collaborated in two fl ights to Soma-

lia with an Airbus A340 test fl ight aircraft transporting over 100 tonnes

of food destined for the Horn of Africa, a region affl icted by a severe

drought and facing one of the worst humanitarian food insecurity crises

in years.

NEWS DESK

FUEL SUPPLY

Collaborative exchange allowedTHE COMPETITION Commission of South Africa has granted the

petroleum and refi nery industry an exemption following an applica-

tion by the South African Petroleum Industry Association (SAPIA) in

April 2010. The exemption enables the participants in the various

stages of the supply chain to enter into the collaborative exchange of

information necessary to ensure the stability of supply, as well as the

effi cient use of the supply chain facilities.

The application, which asks for exemption until December 2015,

was granted on a short-term basis in 2010 and covers a wide range

of agreements and practices in the petroleum and refi nery industry,

in the midst of an ongoing investigation into alleged anti-competitive

conduct in the petroleum value chain.

“The exemption will go a long way in ensuring the continuity and

stability of liquid fuel supply to the various sectors and geographical

locations of the South African economy,” says Avhapfani Tshifularo,

executive director of SAPIA.

“We are pleased that the exemption has been

granted as it has been almost 18 months since the

exemption application was submitted and, as the

process is long, frustrat-

ing and expensive, we

would not like to start it

again.”

As set out in the

short-term exemption, it

does not extend to the

wholesale, commercial

and retail trade of liquid

fuels supply, but rather

involves the arrangements to ensure logistics and bulk supply.

“We look forward to the implementation of the exemption as it will

enable the petroleum and refi nery industry to ensure consistent

delivery of much-needed liquid fuels to South African industries,”

concludes Tshifularo.

SAFMARINE CHACHAI, a new 4 500 teu

(twenty-foot equivalent unit), Safmarine-

branded WAFMAX containership was deliv-

ered to Safmarine on 21 May 2012.

The ship, which features Safmarine’s

distinctive bright white hull, joins her sister

ships, the Safmarine Chilka and Safmarine

Chambal, in the AP Moller-Maersk fl eet.

SEA FREIGHT

Safmarine welcomes new WAFMAX vessel “Not only has this modern new vessel been

purpose-built for the growing trade with

Africa, but it is yet another example of the AP

Moller-Maersk Group’s

commitment to inves ting in

modern, more environmen-

tally friendly vessels and

in growing and strengthening the Safmarine

brand,” said Safmarine CEO, Grant Daly.

The Safmarine Chachai and her sister ships

were built by Hyundai Heavy Industries and

are fi tted with super-long-stroke main engines

and a waste heat recovery system to reduce

emissions and save fuel.

AIRBUS

Extended cooperation for humanitarian relief

Airbus Signing agreement with Red Cross in Geneva

Bulk fuel supply under the spotlight


NEWS DESK

THOSE FACING retrenchment or retirement can look

forward to better tax breaks from this year, with re-

trenchment or retirement tax-free payments increas-

ing from R30 000 in a lifetime to R315 000, effective

from the 2012 tax year.

This is according the Ron Warren, executive chair-

man of payroll software company NuQ, who says that, prior to March

2011, if an employee was retrenched or put on retirement, the extra

payments made to the employee because of the retirement or re-

trenchment were tax-free up to a specifi ed limit of R30 000. Anything

in excess of this limit was taxed at the employee’s average rate of tax

for that year.

He notes that it was only the additional payments due to such an

employee that were tax-free, and not the normal salary and leave pay

due to the employee up to the date of retirement/retrenchment.

“Such additional payments were tax-free up to an aggregate amount

of R30 000,” Warren explains. “That was a lifetime aggregate, so that if

employees were retrenched twice and used up R20 000 on the fi rst re-

trenchment, they would only be entitled to R10 000 tax free on the sec-

ond retrenchment or, if he was retrenched once only, on retirement.”

From March 2011, such payments are treated as though they were

payments from a pension or retirement fund on death or retirement.

Warren says that this means that such payments are tax-free up to an

aggregate amount of R315 000.

“In other words, all retrenchment payments, plus retirement pay-

ments, plus lump sum payments from a pension or retirement fund

on retirement or death are tax-free until the combined total of such

payments reaches R315 000,” he adds. “Once this limit is reached,

all future payments are taxed in accordance with the rates applicable

to lump sum payments from a pension or retirement fund on retire-

ment or death. These tax rates are much more favourable than

normal income tax rates.”

TAX BREAKS

Retirement and retrenchment

I REMEMBER being gob-smacked years ago by the most stunning

black and white steam photography taken by Canada’s Nils Huxtable.

Not too many coffee table books come out in black and white –

mostly colour these days. However, there is just something wonderful

about viewing steam pictures in the black and white medium and it

was this same sentiment that has prompted Hloben to put out a new

book in this very medium.

A follow-up to his colour presentation Steam Passion, Hloben’s

176-page, hard cover Steam Encounters is in a landscape format. His

photographic coverage - on glossy paper - embraces steam locomo-

tives in a variety of contexts; from attendant personnel in the lonely

dead of night minding the newly-lit fi re for a steam run the next day

to the glitz, glamour and clamour of such day-time steam operations

and the myriad photographing paparazzi taking up various vantage

points for that potential “great shot”.

The capturing in black and white of the contemporary steam

scene has been afforded primarily by the clubs Reefsteamers and

Friends of The Rail. These two clubs’ locomotives are caught through

Hloben’s, and others’ lenses on atmospheric sheds and sunrise and

sunset line operations. The Reefsteamers’ operations have afforded

photos to be taken on one of South Africa’s most scenic lines, the

Bethlehem-Bloemfontein section. Hloben has pulled in veteran South

African photographer Mike Wright to supply a wealth of steam shots

from decades back before the word “preservation” was even banded

around and such a thought was seriously contemplated as yet.

Paul Hloben has captured not only the steam engines in all

their glory, but as I said the personalities who undertake the

hard physical work of preparing their steeds – greasing, watering,

fi re-lighting, cleaning fi re, polishing and shoveling, not just the

glitterati of driving them on the day and waving to the plethora of

camera-clicking afi ciona dos.

Steam Encounters is indeed a novel, worthy addition to one’s “rail-

way library” by virtue of its

broad content undertaken

in a medium of yesteryear

– black-and-white images

bringing out the very best

of South Africa’s diverse

classes of steam locomo-

tives.

BOOK REVIEW

Steam Encounters by Paul Hloben

Finance Minister,

Pravin Gordhan

during this year’s budget

speech

Steam Encounters – Lingering Whispers of The South African Locomotive’s StoryISBN 978-0-620-50286-3

First Edition 2011 – 30 cm x 22 cm

Published by Rexxon Publishing

Bryanston, South Africa

t +27 (0) 83 269 0667

9TWA | Jun/Jul 2012

HOT SEAT

MAN TRUCKS

Not just a customer… M

AN Truck & Bus SA’s philosophy is simple. A

customer is not just a customer but a partner, an

important business partner whose profitability,

through innovative and reliable vehicles with low

operating costs and efficient service, as well as optimial driver

safety and comfort is MAN Truck & Bus SA’s primary objective.

This is borne out by the acquisition of 30 x TGS WW 26.440

EfficientLine trucks by Crossmoor Transport & Plant (CTP), which

has grown to become one of South Africa’s leading trucking

companies, servicing a wide range of applications including long

haul transport of bulk liquids, side-tipper haulage, waste removal

and abnormal load transport.

“Consistently rising diesel prices have made fuel expenses the

number-one operating cost for transporters, surpassing payroll,

and because of this, every effort is required to reduce fuel con-

sumption. The TGS WW 26.440 is setting new fuel consumption

benchmarks for our fleet,” says Inderan Naicker, director, CTP

Bulk Division.

“While traditional long haul operations often opt for maximum

horsepower to overcome the challenges posed by pulling a

heavy load over hilly terrain, the driveline on the TGS WW 26.440

has gear ratios optimised for Southern African road conditions,

which is proving most successful in getting the most out of the

12.5 ℓ engine.” explains Bruce Dickson, Deputy CEO, MAN Truck

& Bus SA. “With 440-horsepower under the hood delivering 2100

Nm of torque between 1200-1450 rpm, the TGS WW 26.440

strikes the perfect balance between power and fuel economy.”

“Our new MAN trucks come with a preferential trade-back

agreement which, coupled with the warranty and service con-

tract, covers the entire lifecycle of the vehicle in the CTP fleet,

we’re looking forward to greater cost-predictability, productivity

and the peace-of-mind of these fixed costs, and the reliability

these trucks will bring to our operation,” says Naicker.

Just how does MAN Truck & Bus SA achieve this? The fuelef-

ficiency package soon to be launched and offered by MAN

Truck & Bus SA’s EfficientLine is planned to deliver lower fuel

consumption in long-haul transport through:

1. Less aerody-namic drag• A e r o d y n a m i c

package with-

out external

sun visor for the

cab. A constant

speed of 80 km/h

reduces drag.

A e r o d y n a m i c

chassis panelling.

2. Reduced roll-ing resistance

“The driveline on the TGS WW 26.440 has gear ratios optimised for Southern African road conditions and is proving most successful” Bruce

Dickson, Deputy CEO, MAN

Truck & Bus SA

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


HOT SEAT

…but a business partner

performance specifications for health and safety standards.

And, as more multinational organisations operating in South

Africa comply with international health and safety and car-

bon emissions reporting processes, the TGS WW 26.440

will be a natural first choice for those companies seeking to

limit their road fleet carbon footprint. This makes the MAN

TGS WW 26.440 attractive to cross-border transporters

who travel to Angola, Zambia, the Democratic Republic of

Congo, Tanzania and beyond. With

its sophisticated fuel filtration system

the D26 engine is capable of running

500 ppm diesel without impacting

performance, or damaging sensitive

engine components.

Quality and reliabilitySince MAN Truck & Bus SA intro-

duced its 4 year, 600 000 km factory

driveline warranty two years ago, no

other original equipment manufac-

turer has matched this statement of

confidence in its product. And, as of

January this year, MAN Truck & Bus

SA upped the standard to extend its

OEM warranty from bumper to bump-

er for 2 years, 300 000 kms. This

speaks volumes about its commit-

ment to quality and confidence in its

own product.

In a nutshellMAN Truck & Bus SA, with its com-

mitment to quality, bumper-to-bumper

warranty options and dealer network

in Africa, will handle your scheduled

servicing needs for you wich will ena-

ble you to concentrate on running

your business. That is peace of mind

– built on the knowledge that you

run a reliable, eco-friendly and cost

efficient fleet.

STRONG AFRICAN PRESENCEWhile traveling in Africa, MAN Truck & Bus

sales and service centres can be found in

29 countries. There are:

• 7 MAN owned dealers

• 22 service providers in South Africa

• 17 service providers in

sub-equatorial Africa

• 18 service providers in North Africa

• Tyre pressure monitoring system (TPM)

ensures that the correct tyre pressures

are maintained, which prevents rolling

through increased road grip and rolling

resistance, and 99% of all tyre flats.

• The low weight of the rims, due to light-

weight construction, fitted on the front

and rear axles and of the aluminium

compressed air tank has a twofold

advantage: over 200 kg more payload

as well as lower fuel consumption.

• Energy-saving tyres reduce rolling resistance through their

special tread and compound.

3. Less auxilliary power required• Air Pressure management (APM): The compressor cuts in

only when needed. It thus remains disengaged for up to

90% of the time, during which it requires no power.

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

• Fuel-saving MAN TipMatic® automatic transmission. It’s Eco

Intarder has 25% lower friction losses when switched off.

• Alternator with 4% increased efficiency and ten Amperes

higher power delivery.

4. Driver trainingA driver trained by the MAN Profidrive® Economy can save

up to 10% on fuel.

Supporting evidenceThis was confirmed by Richard Nancarrow, supply chain

manager of Lafarge Gypsum SA, who said, “The MAN TGS

WW 26.440 is a 6x4 440-horsepower truck-tractor with an

excellent power-to-weight ratio and is ideally suited to pull

our tri-axle semi and interlink tear drop tautliner and bulk

cement trailers. The fuel efficiency of the MAN D26 common-

rail engine is enhanced by the aerodynamics of the teardrop

trailer. With comprehensive driver training from MAN Truck &

Bus SA and Imperial, we are targeting a 10% -12% improve-

ment in fuel consumption and thus, an equivalent reduction

of our carbon footprint.”

What is more, in a managed assessment, South Africa’s

recent Road Freight Association’s “drive test”, from Gauteng

to KwaZulu-Natal’s Zimbali Resort on Durban’s north coast,

confirmed the MAN TGS WW 26.440’s productivity and fuel

efficiency.

Going green, going AfricaIan Carmichael, sales support services manager for MAN

Truck & Bus SA, says: “The impressive features of the MAN

TGS WW 26.440 with its D26 common-rail engine and excel-

lent torque curve, and the fact that it is built for African condi-

tions, is that it is perfectly capable of meeting international

At the recent Nampo show in Bothaville, Freestate

11TWA | Jun/Jul 2012

The list of life changing moments, which have

changed the course of human history, would prob-

ably fill just a few pages.

In the world of transport, the invention of the

wheel around 8 000 BC, the discovery of oil in China in 500

BC, the invention of the first internal combustion engine in

France in 1807, the drilling of the world’s first commercial

oil well in Poland in 1853, Gottlieb

Daimler’s invention of what is often

recognised as the prototype of the

modern gasoline engine in 1885 and

Karl Benz’s invention of the world’s first

‘modern’ automobile in Germany, also

in 1885, has brought us to the point

where we find ourselves today - with

the new 750 HP Volvo FH16 being the

most powerful truck in the world.

Producing 2 800 Nm of torque at 900 revs/minute, after

which the torque curve rises sharply and reaches its peak

level of 3 550 Nm at 1 050 revs/minute, then levels out to

1 400 revs/minute, Volvo’s 750 HP engine makes it possible

to maintain a high speed on even the toughest uphill climbs.

The engine is coupled to Volvo’s I-Shift automated gear

changing system which has been modified to handle the

engine’s high torque. The rear axle range encompasses axles

for gross combination weights of up to 250 t. What a truck!

The fastest car in the world is the Bugatti Veyron Super

Sport. Its top speed is 430 km/h and it does 0 to 100 km/h

in 2.4 seconds. Its aluminium body, narrow angle 8 ℓ

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

In the year 2045 FUTURE UNCERTAIN

W16 Engine with 1 200 HP comes in at a base price

of R18.5 million.

FundamentalsIn talking about money, the principle upon which eco-

nomics is based is not difficult to understand. Price is

determined by supply and demand. Look at trucks and

cars for example. Differentiated by build quality and per-

formance, there won’t be too many Volvo F16 750s or

Bugatti Veyron Super Sports on the roads. The more com-

mon trucks and cars are a dime a dozen by comparison.

Inflation too is not difficult to understand. An increase in

production costs will result in an increase in selling price.

Oil is no different.

According to BP’s Statistical Review of World Energy, the

world’s proved oil reserves of 1 383.2 billion barrels will

last for 46 years if oil production and consumption are to

remain at current levels. The world’s natural gas reserves

will last for 59 years - if production is to continue at the

2010 rate. However, this is unlikely given that the world’s

population will grow by 1.4 billion over the next 20 years,

and in the same period, there will be a 40% increase in

world primary energy consumption. We could safely say

that a similar increase, if not more, would apply to the fol-

lowing 20 years after that.

So, where does that leave us? The average annual

increase per barrel of crude oil since 1861 is 5.4% per

annum. If we increase our consumption at a steady 2%

per annum, taking us up to the 40% we spoke of, then we

will run out of oil in 2045, assuming that we don’t find any

more oil. But, can we afford to assume? Even if we did find

oil in the oceans, the depth at which it would be located

would make it almost impossible to extract and at a cost

way above what is costs today. Even so, by 2045 we could

be paying as much as US$687 (R5 294.80) per barrel of

crude compared to the US$109 we pay today. That is

a 530% increase. But given supply and demand, it will

probably be a lot more. Either way, we had better look to

developing alternate fuel sources as a matter of urgency.

One indomitable fact is this: Running a transport com-

pany tomorrow will not be the same as running a trans-

port company today! And a 25 year-old of today will be

60 years old by 2045, just 5 years away from retirement.

What then? Think about it!

ABOVE BP’s Andrew oilrig in the North Sea

BELOW BP CEO Bob Dudley

INSIGHT

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

(Below left) Bugatti Veyron Super Sport, the world’s fastest car, has a top speed of 430 km/hr

(Below right) The 750 HP Volvo FH16 is able to tow up to 250 t


To subscribe and/or advertise please call +27 11 233 2600 or visit www.twa.co.zacribe and/or advertise please call +27 11 233 2600 or visit www.twa.co.za

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

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Intraregional supply chain solutions from producer to consumer

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

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

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

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Demystifying Transnet‘s ‘Back to Rail’ strategy

FREIGHT RAIL

Transport World Africa’s business breakfast was

held at the Killarney Country Club on 19 April 2012

and hosted by FACE2FACE, a 3S Media interac-

tive forum. At the event, Siyabonga Gama, CEO of

Transnet Freight Rail (TFR), detailed the company’s ‘Back to

Rail’ strategy. Guided by Transnet’s overriding Market-Driven

Strategy , which focuses on bulk transport over distances

greater than 250 km, TFR will develop its rail infrastructure

along the main transport corridors and a select number of

branch lines where financial viability exists – a big client with

regular bulk loads. Other than this, TFR will privatise some

branch lines and discontinue others. It is also envisaged that

company will establish product-oriented bulk depots, e.g.

manganese, iron ore, coal, chrome and bulk general goods

such as grain in select locations across the country.

TFR’s strategy is based on a qualified assessment of the

state of South Africa’s current rail infrastructure, costs of

repair and maintenance, capital requirements and future

market demands.

Justifying Transnet’s ‘Back to Rail’ strategyAlbeit being a little outdated, the table below shows South

Africa’s cost of logistics, as a percentage of the GDP, relative

to a selected range of countries. What is clear is that devel-

oping countries generally have higher logistics costs, with

transport costs a significant component. For example, South

Africa stands at 13.5% whereas Europe stands at 7.0%. This

directly impacts the overall competitiveness of the country

and the cost of doing business. The principle of ‘more is

less’, or ‘economies of scale’, apply.

Considering modal contribution, land freight as a percent-

age of total tonnes per kilometre, we see that the United

States’ (US) rail sector constitutes 41.5%, China 47.0%, India

36%, Brazil 21.7% and South Africa 31%. Given that the US

and China are the world’s biggest economies, there is obvi-

ous logic in using rail. Also, by comparison, in eurozone

countries, rail infrastructure carries a higher percentage of

the overall freight transported and is well integrated with road

freight services. South Africa is clearly out of sync and the

case for moving more of South Africa back onto rail makes

a lot of sense.

South Africa’s higher road maintenance costs bear testi-

mony to the greater number of heavy commercial vehicles in

service. As such, there is a need for greater tonnages to be

transported by rail. In applicable cases, this would reduce

the cost of doing business in South Africa. Together, these

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

Commodity Drivers

Coal

• Driven by Eskom’s consumption and migration from road to rail for power stations

• A sustained strong demand for South African coal with the emergence of China and India as net importers of thermal coal.

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

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

Containers

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

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

Magnetite

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

Grain, maize, wheat and foodstuffs

The domestic harvests are approximately 10 Mtpa to 14 Mtpa. Demand represents TFR’s increased share of total market demand as more traffi c is shifted from road to rail.

Petroleum liquids/products

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

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


FREIGHT RAIL

factors justify the ‘Back to Rail’ strategy.

Commenting further, Gama said that rail should be the

backbone for long-distance (>250 km), heavy-load freight

volumes. There would be many advantages of moving freight

off the road and onto rail. These include:

• a reduction of heavy trucks on our roads

• overall transport and logistics costs will be reduced

• cost of externalities – road damage, road accidents, road

congestion, noise pollution, carbon emissions, etc will

be reduced

• the impact of rising fuel prices would be minimised.

Transnet’s planned R300 billion infrastructure spendAs was announced by South Africa’s president, Jacob Zuma,

earlier this year that R300 billion of the massive infrastructure

development drive would be spent upgrading Transnet over

the next seven years, R201 billion . The breakdown of this

infrastructure spend is reflected in tables 2 to 4.

Partnering for volume growthGetting a product to depots, if a dedicated rail link is not

viable (and there will be many such instances), is an opportu-

nity for the road freight transport industry. TFR is keen to talk

to the road freight industry to explore how rail and road can

work together to create an integrated and efficient transport

service, and create jobs.

TFR is keen to partner with the road, sea and air transport

modes to provide end-to-end supply chain solutions for

customers. This, according to Gama, must include alliances

with logistics service providers (third- and fourth-party logis-

tics) including road hauliers, terminals, warehousing, inland

consolidation hubs, multimodal hubs providing intermodal

solutions and road-rail technologies.

TFR is in the process of finalising a private sector par-

ticipation (PSP) framework to guide the introduction and

implementation of PSP projects and initiatives in TFR in a

consistent and coherent manner. The intention is to leverage

the private sector in several areas to supplement the volumes

and investments in the market-driven strategy growth plan.

Identified and potential areas include:

•Given that considerable growth in transportable GDP

is forecast for South Africa, road and rail both have a role

to play in ensuring economic growth and job creation for

the country.

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

tonnages through significant improvements in operational

performance, targeted and effective capital investments, as

well as partnerships to offer innovative logistics solutions to

the Southern African region.

Asset type R (billions) %

Land, buildings and structures 16.5 5.5%

Pipeline 9.4 3.1%

Port facilities 66.3 22.1%

Machinery and equipment 11.8 3.9%

Perway (Railway lines) 71.1 23.7%

Locomotives 77.8 25.9%

Wagons 47.2 15.7%

Total 300 100%

Product category R (billions) %

General freight (along main transport corridors)

142.9 47.6%

Export coal 32.1 10.7%

Bulk products 31.8 10.6%

Break-bulk 4.0 1.3%

Export iron ore 25.4 8.5%

Containers 24.5 8.2%

Piped products 9.4 3.1%

Other 30.0 10.0%

Total 300 100.0%

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

TABLE 5 Infrastructure spend by transported product category

CountrySurvey

year% of GDP

Morocco 2006 20.0%

Finland 2008 19.0%

Thailand 2007 18.9%

China 2006 18.0%

South Africa 2009 13.5%

India 2007 12.0%

Brazil 2008 11.6%

Netherlands 2009 10.1%

Sweden 2005 9.1%

USA 2009 7.7%

Europe 2005 7.0%

Switzerland 2009 1.5%

Transnet Division R (billions) %

Transnet National Ports Authority 46.9 15.6%

Transnet Port Terminals 32.9 11.0%

Transnet Rail Engineering 3.8 1.3%

Transnet Pipelines 11.4 3.8%

Transnet Freight Rail 201.0 67.0%

Other 4.1 1.4%

Total 300 100%

TABLE 3 Infrastructure

spend by Transnet business

divisional

TABLE 4 Infrastructure

spend by asset type

This will be apportioned by type of asset as follows:

Identified PSP Potential PSP Potential PSP

WAGONS TERMINALS INFRASTRUCTURE

• specialised wagons for customers

• PSP arrangements for wagons schemes in baseload industries

• bi-modal technologies• branch lines.

• inland consolidation terminals for coal, man-ganese, chrome

• inland container and automotive terminals.

strategic corridor expan-sionsWaterberg heavy haul rail line (new route)Swaziland rail link.


MERCEDES-BENZ

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

Custom Built

Mercedes-Benz South Africa (MBSA) prides

itself on the relationships it cultivates – and

no-one symbolises this better than long-

term MBSA customer and innovative prod-

uct partner Andre Swart of Agritrans.

Last week, Swart handed over a fleet of Mercedes-Benz

trucks to his clients, John Deere in Boksburg. “It is the part-

nership between Agritrans, John Deere and Mercedes-Benz

that has made this memorable day a possibility,” said Swart.

The handover was the end of the journey that began on

26 April 2012, when Swart took personal possession of a

highly unusual, one-of-a-kind Mercedes-Benz Actros 1860

LS/36 BlueTec Euro5 truck at MBSA’s East London plant.

Swart’s truck is so unique it had to be

custom-built in Germany to meet his

specific requirements.

Swart was so pleased with the deliv-

ery of the vehicle that he and his fam-

ily flew to East London to personally

accept the keys to his new truck – and

then promptly drove the impressive,

state-of-the-art new flagship of his fleet

back to his Free State head office. “I have been involved in

the transport business for 28 years and I used to be a truck

driver,” says Swart.

“Taking delivery of my flagship is a lifelong dream come

true. A very special vehicle like this really is not intended to

be applied like a normal run of the mill fleet number. After

waiting anxiously there was no way that I would miss out on

the opportunity of driving the new truck home myself,” said

Swart. Swart’s acceptance of his new Actros marked the

first time in MBSA’s history that a custom-built vehicle was

driven off the plant by its owner.

Among the many detailed specification ordered by Swart

was the new Actros’s eye-catching appearance. MBSA usu-

ally produces its commercial vehicles in standard white, but

Swart’s new acquisition is a bright, attention-grabbing green

– the exact hue of principal partner, John Deere.

“John Deere regards Agritrans as a partner and not just a

supplier,” Swart says. “We in turn share this sentiment when

it comes to Mercedes-Benz. The vehicle I took delivery of

and its intended application symbolises these respective

relationships that have been 15 years in the making. The

fact that John Deere authorised Agritrans to colour and

brand the new vehicle, and that Mercedes Benz went out of

their way to accommodate our unusual order is testimony

to that,” Swart stated.

Having now driven the impressive new vehicle a good

distance across the country, Swart is equally enthusiastic

about the overall performance of his new Actros.

“The first thought that crossed my mind when I saw the

vehicle at the plant was that I had definitely made the right

choice. I had very high expectations and I certainly was not

disappointed. To then sit back and watch all the new tech-

nology at work was a real thrill,” he says.

Advanced technologyActive Brake Assist is an unbelievable driver aid but the

engine power and its management stole the show.”

Though the spectacular green colour might be the vehi-

cle’s most obvious customisation, it boasts an impressive

array of individual features. “The list is endless, but among

the most important specifications were the 600 horsepower

BlueTec Euro 5 engines and the Active Brake Assist technol-

ogy. We have never been disappointed whenever advances

were made with technology in the Actros and wanted to ‘go

green’ for obvious reasons,” Swart says,

Diesel emissions from BlueTec Euro5 engines contain 80%

less particles and 60% less NOx gases (oxides of nitrogen)

compared to Euro 3 engines; tests also show that with

long distance travel, BlueTec can save up to 5% of the total

fuel consumption.

Overall, BlueTec technology blends clean-

liness with economy, reducing emissions

and lowering fuel consumption, thereby

complementing one another perfectly. The

trucks and buses from Mercedes-Benz

are all BlueTec pioneers, having success-

fully implemented the technology as a

future-proof standard. Many of the mod-

els from these brands already comfort-

ably undercut the Euro 5 emissions limits

currently in force in Europe and fulfil the

most stringent voluntary standard, EEV. On

1 June 2012, Swart introduced the rest

of the Actros fleet to John Deere. Carel

Theron, marketing manager of John Deere

thanked Swart and Mercedes-Benz for

trucks that came in John Deere colours.

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

COMMERCIAL VEHICLES

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


The Mercedes-Benz Econic, the advanced, envi-

ronmentally-friendly, low-floor transport vehicle for

municipal transportation with consolidation and

short-radius distribution applications, continues

to dominate in inner-city areas. The Mercedes-Benz Econic

1828 NGT chassis, with eco-friendly natural gas, is manufac-

tured at the Mercedes-Benz plant in Wörth, Germany.

“The super-quiet and environmentally-friendly natural-gas

variant of the Econic is proof in motion of how protecting

the environment doesn’t have to be expensive. Natural-gas

engines were introduced as an option on the Econic in

2002. To date, more than 10 000 Econic trucks have been

sold and 10% of these are NGT variants, translating into

approximately 1 000 units. The vehicle is ideally suited to

municipal service applications and all the stop-and-go traffic

that goes with it,” says Christo Kleynhans, product manager:

Mercedes-Benz Trucks.

Setting standards in technology and cleanlinessThe Econic is driven by an EEV-certified in-line six-cylinder

900-series engine in the form of a mono-fuel natural gas

drive. The M906 LAG engine produces 205 kW from a dis-

placement of 6.9 ℓ . The emissions produced by the Econic

with natural gas drive do not contain any fine dust or parti-

cles. In addition, the gas drive also boasts low noise emis-

sions. As a result, the Econic NGT has earned the right to

bear the ‘Blue Angel’ seal of approval. The Blue Angel is part

of the association for the ‘Global Ecolabelling Network’, com-

prising 26 environmental labelling organisations worldwide.

Thanks to additional in-engine measures, the use of an

Allison transmission, as well as optimised soundproofing, it

has been possible to achieve a further significant reduction in

noise emissions (down to 72 dBA), thus enabling the Econic

to receive approval for round-the-clock operation - 24 hours

a day, 7 days a week. Mercedes-Benz Special Trucks high-

lights the special role played by the Econic as the technology

platform for the product portfolio of the Mercedes-Benz Truck

MERCEDES-BENZ

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

COMMERCIAL VEHICLES

division and Daimler Trucks in the field of environmentally-

friendly drive technology.

Refrigerated transport even at nightIn all highly-developed industrial countries, a great deal of

significance is placed on climate protection and the pres-

ervation of a habitable environment. European guidelines

have been implemented with these very aims in mind and

include guideline EC 2001/547, which states that between

20 and 23% of road traffic must make use of alternative fuels

by the year 2020. Noise and emission limits are becoming

increasingly stricter, and cities in large, densely populated

areas are only granting access to specific types of vehicles.

The Mercedes-Benz Econic is one of these vehicles with its

environmentally-friendly, quiet natural gas engine.

Positive driver feedback on safety and ergonomicsThe Econic has long

been the benchmark

for vehicles with a low-

floor cab. It features a

large wraparound wind-

shield and a co-driver’s door, which opens automatically at

the push of a button. The cab has a level floor and provides

plenty of headroom. The low entry is ideal for applications

which involve the driver having to frequently get in and out

of the vehicle. The automatic transmission, which is fitted

as standard, enables the driver to concentrate fully on the

traffic conditions.

“Furthermore, the driver practically sits at eye level with

pedestrians and enjoys optimum visibility - features which are

praised by the drivers of these unique vehicles. This is also

a big advantage, as pedestrians often stand and look at the

quiet trucks in amazement, given that they are so different to

regular trucks,” adds Kleynhans.

(Above) The Econic on its South African tour

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

Trucking with natural gas technology


HINO

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

achieved through an appointed Hino truck distributor who

matches agreed standards. Hino trucks will encounter

harsh operating conditions in Africa which amplifies the

need for parts and service to be available across the conti-

nent. Trained technicians, information bulletins and special

tools are all part of a high-quality standard package that

goes with an official Hino truck dealership linked to Toyota’s

distribution system.

No strangers to AfricaHino trucks are no strangers to Africa where they have

been operating as truck market leaders for over 39 years

in Southern Africa. Since their first appearance in 1973,

with 181 models sold that year, more than 50 000 Hino

trucks have been sold in the Southern African region.

Many new and grey imports have also entered the shores

of this territory.

The new generation

Hino 300 Series trucks

are medium-duty 4x2

models and engineered in

right and left-hand drive con-

figurations to match African

requirements. The versatile Hino

300 series truck range can be

equipped with a variety of body

types, from open-deck freight carrier

to van body and tipper applications.

Acquiring a truck is an investment

in a transport solution. This specialist

advice is again only possible through

trained Hino sales staff operating

under an appointed distributor/dealer

franchise. Hino trucks are expected

to last well over 10 years in service.

A Hino franchise makes this com-

mitment to customers – Hino is there

for the long haul in Africa: the right

truck for the right job, parts, service,

expertise and a truck brand rec-

ognised for QDR (quality, durability

and reliability).

Trucking technology must be

appropriate to the environment in

which it operates. Africa is no excep-

tion to this requirement. Hino’s vast

range of trucks will suit the require-

ments of the African countries in

which they will operate.

The versatile Hino 300

COMMERCIAL VEHICLES

Hino expands its footprint

HINO Motors Ltd, the Toyota Group’s truck man-

ufacturing company, is set to expand its sub-

Saharan African footprint in the course of 2012.

Toyota is Africa’s leading passenger and light

commercial vehicle brand and Hino plans to follow suit in the

bid to become Africa’s preferred truck. An ambitious drive

will see African countries with official Hino representation

under the Toyota Tsusho Africa banner being increased from

four to 22 this year. Hino recognises that the key to truck-

ing efficiency and

minimal downtime

lies in offer-

ing truck users

excellent parts

and service

back-up and

this can only be


The survey was conducted by means of telephonic interviews

with a random national sample of 180 respondents from

January to March 2012. Those interviewed included fleet own-

ers, fleet managers, fleet controllers and transport manag-

ers in the private and public sectors, as well as trucking journalists.

The respondents rated the various commercial vehicle manufacturers and

distributors across 28 attributes covering the vehicles themselves as well as

after-market service. The people interviewed were also asked to list the make,

as well as type and number of vehicles they operated in their own fleets.

The results are based on perceptions of the respondents with ratings from

1 to 5 on each attribute. Hino scored an average of 4.27 points in the com-

bined category (trucks above and below 10 t) and was rewarded with a

Diamond Arrow.

Hino also came out top in the category for trucks below 10 t with its

300 Series and Dyna range, scoring an average of 4.23 points and qualify-

ing for another Diamond Arrow. The brand was rated third in the large truck

category with an average score of 4.21 and qualified for a Silver Arrow.

“We are delighted to have come out top in the combined results for the

third year running in this wide-ranging independent research by a company

with many years’ of experience in this sphere of marketing,” commented

Hino SA vice president Dr. Casper Kruger.

“The strong support for the Hino brand in all its aspects is indicative of our

success in terms of selling top class products and looking after our custom-

ers. Obviously our reputation has spread beyond operators of Hino trucks

to ensure such a positive response.

“We were also very pleased to see that in virtually all the attributes

researched Hino not only scored higher than the industry average in almost

every case, but in most instances Hino showed an improvement over the

ratings in 2011,” added Kruger.

Last year Hino scored 4.15 in the combined results, 4.24 in the under 10 t

category and 4.12 in the over 10 t segment.

Hino rated top for third year

SARUCK SURVEY

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

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

in AfricaRight-hand-drive countries will see expansion of the

Hino 300 Series from two to seven models. The full

300 Series range will now have air conditioning as

standard with the only exception being two narrow-cab

models. It is proven that air-conditioning enhances

truck driver productivity while increasing on-road safety

by minimising driving fatigue. Drivers will also appreci-

ate the inclusion of an FM/AM radio and CD player as

standard equipment.

Fuel economy, durability and reliability are built into

all Hino diesel engines that have been specially chosen

for adaptation to differing diesel fuel specifications in

Africa. The 300 Series models are fitted with Hino’s four-

cylinder, 4.0 ℓ WO4D normally aspirated (Euro 1 specifi-

cation) or turbo-intercooled diesel (Euro 2 specification)

engines, depending on the specific gross vehicle mass

models. The tur-

bo-intercooled

version is par-

ticularly suited

to high altitude

o p e r a t i o n s

where con-

sistent power

is required to

match the task imposed on trucks operating at maxi-

mum mass on severe grades.

All 300 Series Hino trucks are equipped with drum

brakes all round and a dual-circuit, power-assisted,

hydraulic braking system – should one circuit fail the

other is protected to maintain braking force. Front and

rear drum brakes are also most suitable for any off-road

condition. Every model is also equipped with an engine

exhaust brake – this allows for additional retardation via

the engine on down-grades where the brakes do not

have to be used to remain cool and efficient in the event

of an emergency. An exhaust brake also promotes the

service life of brake linings.

To top it all every Hino is equipped with a load-sensing

valve on the rear axle. This device senses the load

imposed on the rear axle and permits braking pressure

according to the load, reducing the chance of wheel

lock-up and skidding when the truck is empty and mini-

mal braking force is needed.

The range-topping Hino 300 Series model 913 is

specially equipped with 170 ℓ fuel capacity as this

8 500kg GVM truck is most often placed into challeng-

ing long-distance service in Africa. The balance of the

300 Series range is fitted with tank capacities from 80

to 100 ℓ depending on GVM class and application to

local distribution services. Every fuel tank has a lock-

able fuel cap.

COMMERCIAL VEHICLES

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


ROAD TRANSPORT

MINE VEHICLES

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

A brutal reality in the mining industry is that vehicle

accidents cause 31% of all fatalities. Some of

those who are fortunate enough to survive are left

with spinal damage, which results in paraplegia

or quadriplegia.

Believing that an accident won’t happen to you, or that your

safety belts, airbags, stability control and electronic speed

limiting will save you from injury are myths, especially in an

opencast mine. Airbags for one are designed to deploy on

frontal or side impact, not in a rollover situation. And the

harsh reality is that having all this wonder-

ful gadgetry does not preclude you from

injury in an accident. Off-road vehicles

have a higher centre of gravity and heavier

gross vehicle mass (GVM) compared with

passenger vehicles, and have a higher

propensity to roll over at speeds, relative

of course to the terrain in which they oper-

ate. The cab roof, in rollover incidents, is

usually damaged, quite severely, and in

most instances this results in head and/or

spinal injuries in one form or another.

Internationally, the mining industry has

recognised the high injury rate associated

with light vehicles. Losing control of a vehi-

cle as a result of avoiding a sudden and

unexpected road condition, obstacle or

other vehicle, can quite easily cause a 4x4

vehicle to roll over, and in many instances

does. In fact, statistics show mine vehicles

are twice as likely to roll and unprotected

mine vehicles are 3.4 times likely to cause

a fatality.

Rolling down the embankment in an

opencast mine is a frightening experience and one that totally

wrecks a vehicle. Moving in a forward motion in a rollover

attracts longitudinal forces before lateral and vertical forces

take effect. This pushes the cab roof down and rearward. As

this happens the cab’s roof side pillars collapse, not being

able to take the weight of the vehicle. Occupant space is

compromised and windows smashed. If the occupants are

not wearing seatbelts, they could be thrown from the vehicle.

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

There is a solution! Minecorp’s Safety CellTM is an innova-

tive roll over protection system specifically designed for 4X4

vehicles operating in the roughest and toughest of mine

conditions. But it does not end there. In assessing the mine,

its type and its environment, a comprehensive range of

compliant safety equipment is needed on a vehicle. Such an

assessment will look at the following:

Safety and visibility• Roll over protection systems: inter-

nal and external Safety Cell™

• Personal safety: seatbelts, first aid

kits and traffic warning triangles

• Vehicle visibility: lighting, call signs,

reflective tape and high visibility flags

Communication and technol-ogy• Electrical accessories: integrated

wiring looms and functional safety

switching and isolation systems

• Communications: UHF and VHF

radios and mobile phones

Protection and functionality• Suspension systems and GVM

upgrades

• External protection: bull bars, side

steps, sump guards and tow bars

• Interior protection: seat covers,

floor mats and protective mesh

barriers

Bodies and accessories• Tray bodies: steel, alloy or gal-

vanised either roll over protec-

tion system (ROPS) or non ROPS

compatible

• Service bodies and boxes: tool

boxes, space cases and storage

systems

• Tray accessories: ladders, tie down

points, spare wheel carriers, vice

mounts and crowbar holders

Remember, one life destroyed or lost

is one life too many. And, despite the

average financial loss to a mine of R8

million per fatality incident, this must

remain a secondary consideration.

Safety of people must come first!

Surviving a rollover

Causes of mine vehicle accidents (especially in open-cast mines)

SpeedPoor visibility due to environmental conditionsDriver fatigueLoss of control when avoiding debris from trucksExceeded load capacitySkidding due to road surfacesLack of edge protection (barriers)Steep gradesDriver inexperience/unfamiliarity with vehicleMechanical failureDistraction and mobile phone usageAlcohol or drug abuse

r

d

n

n

e

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

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

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


The preferred access to Southern Africa

Head OfficeNr 17 Rikumbi Kandanga Rd P O Box 361 Walvis Bay Namibia

Tel: (+264 64) 208 2111 Fax: (+264 64) 208 2323Email: [email protected]

| | | |

|

Port of LüderitzHafen Street P O Box 836 Lüderitz Namibia

Tel: (+264 63) 200 2017 Fax: (+264 63) 200 2028| |

| |

www.namport.com

Walvis Bay

Lüderitz

Mozambique

Swaziland

Lubango

Lilongwe

TRANS KALAHARI

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

Walvis Bay, a viable alternative

Ten years ago the Automotive Industry Development

Center (AIDC) commissioned a study to ascertain

whether it was financially viable for the automotive

industry to utilise the Port of Walvis Bay as a ship-

ment port. In benchmarking the Port of Walvis Bay against

Durban and Port Elizabeth, the variables for the study were

focused on transit times and cost. The study involved 40 foot

containers which were transhipped via Rotterdam to the

Port of Antwerp, Belgium. From there the containers were

forwarded into Europe. Two containers were road hauled

from Gauteng to Walvis Bay. The third container went to

Durban by road while the fourth container was sent via rail

REGIONAL FOCUS

The Port of Walvis Bay

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

Walvis Bay is also Namibia’s largest commercial port, receiving approximately 3 000 vessel calls each year and handling about fi ve million tonnes of cargo. It is a sheltered deep water harbour benefi ting from a temperate climate. No delays are caused by bad weather.In order to deal with even higher levels of throughput, NamPort have steadily improved its cargo-handling facilities, and remains committed to infrastructure de-velopment, in line with NamPort’s Mission to provide effi cient and effective port and related services. Another R2.7 billion port expansion programme is under way.

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

PORT LIMITSMid limits: Latitude 22°51’03.4”S, longitude 014°26’01”ESouthern limits: Latitude 22°57’06.6”S, longitude 014°24’04”E. The Chart in use for approaches to Walvis Bay is BA chart number 4134 (INT 2611). Dimensions of berths 1-3 is 154 400 and berths 4-8 182 000. The distances be-tween bollards 1-26 is 19 m (berths 1-3) while from bollards 27-86 it is 15 m (berths 4-8) respectively.


REGIONAL FOCUS

development, and those that need to be developed. This

data was compiled into a comprehensive list of mining,

tourism, manufacturing and other economic developments

along the TKC. Additionally, they determined the socio-

economic problems that each stakeholder believed were

inhibiting the economic development of the TKC. Finally, the

report amassed a list of recommendations for the WBCG to

consider in solving these problems.

It was the team’s hope that the

TKC strategy would help the WBCG

attract investors to establish econom-

ic projects along the TKC. It would be

these projects that would transform

the Trans Kalahari Corridor from a

transportation route to an economic

development corridor.

Once the transformation of this cor-

ridor is complete, the TKC will con-

tribute to local and regional economic growth, increasing

employment opportunities, reducing poverty, and decreas-

ing the inequalities in income distribution as envisaged in

Namibia’s Vision 2030.

There is no doubt that the Trans Kalahari Corridor and the

use of the Port of Walvis Bay is and will remain a financially

viable alternative to South African ports, especially Durban

where time delays are problematic. And, integrating marine,

road and rail transport in a cost effective combination,

even slotting in air transport where and when necessary,

makes the TKC a practical solution in an increasingly com-

petitive world where supply chain logistics costs need to

be minimised.

to Port Elizabeth. All departed simultaneously destined finally

for Antwerp.

At the time, after the study had been completed, the AIDC/

WBCG team established that the simultaneous trial shipment

of 40 foot containers through Walvis Bay, Durban and Port

Elizabeth proved that Walvis Bay was a viable alternative to

South African ports, especially for time sensitive cargo.

That was then, when very little had been done to upgrade

the Port of Walvis Bay. Since then much has been done.

The chief executive officer of the Walvis Bay Corridor Group,

Johny Smith, in reflecting on the past ten years says: “It has

become evident how the Walvis Bay Corridor Group has

facilitated trade along the Walvis Bay Corridors and what a

creative and constructive role these corridors have played in

the national endeavour of building a dynamic sector in the

Namibian economy and beyond.” He adds that: “the Trans

Kalahari Corridor (TKC) had developed tremendously, not

only in terms of the volumes it carries, but also with regards

to service excellence, especially in reducing transit times,

removing bottlenecks and improving corridor logistics.

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

Daniel Brundige, Elizabeth Dawson, Mackenzie Massey and

Sasha Moore’s (“the team’s”) May 2011 report “An Economic

Development Strategy for the Trans Kalahari Corridor” strong-

ly recommends a strategy for the economic development of

the Trans Kalahari Corridor.

This corridor extends from Walvis Bay to the border of

Botswana through the towns of Swakopmund, Usakos,

Karibib, Okahandja, Windhoek and Gobabis, and on

to Gabarone, Botswana’s capital city to South Africa’s

Johannesburg, the industrial capital of Africa. The diverse

environments that the TKC traverses contain many different

economic opportunities. The Walvis Bay Corridor Group

has created an economic development plan with the goal

of transforming the TKC from a transport route into an

economic development corridor by taking advantage of

these opportunities.

Through site evaluations of the corridor and interviews

with the stakeholders including government officials, private

sector representatives, and town councils they gained an

understanding of the current projects, the projects under

The trans-Kalahari Corridor is a financially viable alternative to South African corridors

Road traffi c security check just before Windhoek

On the road along the Trans-Kalahari Corridor


the information flow objective is supported by every respond-

ent. (See Graph 1)

Supply chain constraintsAs to supply chain constraints, a more familiar picture

emerges. The cost of transport features as the greatest sup-

ply chain constraint, for almost every industry sector. South

Africa’s high logistics costs, and the imbalance between road

and rail, have been well-documented. Sadly, this has been

exacerbated lately with the imminent imposition of tolling

and carbon tax fees. This is one area that desperately needs

effective communication between all industry sectors, since

all of them have to move goods, and the government. Over

and above the public/private sectors disconnect, companies

need to ask themselves hard questions about reducing these

costs - are they moving their goods in the most cost-effective

way possible? Is each industry considering innovative ways

of moving their goods differently – through cooperation with

other industry sectors, for example? The bottom line is that

there is enormous value to be had in businesses constantly

re-looking at their transport strategies and thinking laterally

about them. The second major constraint is finding skills

to enhance supply chain management. As we shall see,

the skills issue remains a burning and urgent challenge

for companies across all industry sectors – but can it be

addressed in a different way? In the meantime, are com-

panies partnering with the right companies to provide them

with such expertise and skills, in a mutually beneficial rela-

tionship? Labour unrest, which featured prominently in the

South African market and especially in the freight transport

sector in the year under review, is unsurprisingly featured as

a major constraint. Perhaps more surprising is the presence

of ‘reducing the environmental impact of the supply chain’

as a constraint – a first appearance in the top five for this

option. The increasing pressure to reduce carbon footprint

and to hold suppliers accountable, set by legislation and

tax regimes, undoubtedly

accounts for this constraint

becoming prominent. The

pressure on corporations

to ‘go green’ is thus affect-

ing the bottom line.

Acknowledgement: The

above excerpt was taken from

Barloworld Logistic’s Supply

Chain Foresight 2012 report.

For a full copy of the report visit

www.supplychainforesight.co.za

Within a challenged global economy, strong

emphasis on cost management goes along-

side a realisation that partnership is essential

to the use of the supply chain as a competi-

tive advantage. Therefore, increasing service levels to cus-

tomers remains the number one supply chain objective, as it

has in previous years. This objective must still be achieved at

the lowest possible cost, as the objective of lowering procure-

ment costs and decreasing lead times tells us. Essentially,

in a highly competitive environment of variable demand,

customer needs must be met in the most cost-efficient way

possible. What is interesting is a shift in perception about

how this can be achieved. The next top objective is improv-

ing visibility in the supply chain, followed closely by improving

the flow of information between the business, suppliers and

customers. This strongly suggests a maturing of the long-

held mantra of the supply chain, collaboration. No longer

can suppliers be squeezed if the supply chain is to remain

competitive - there has to be a more strategic and holistic

view that is to the mutual benefit of supply chain players, and

offers sustainable benefit to the customer in the longer term.

In fact, in industries where the competitiveness of the supply

chain is critical to success, such as the automotive industry,

LOGISTICS

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

y

t

e

s

-

e

m

y

t.

it

a

SUPPLY CHAIN FORESIGHT 2012

GRAPH 1 Top fi ve constraints to the supply chain


SCL industry needs a makeover

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

SUPPLY CHAIN FORESIGHT 2012

LOGISTICS

Globally the transport and logistics industry is

in dire need of a complete makeover by 2030

if it is to stay competitive, according to a

report issued by Professional Services Firm

Pricewaterhouse (PwC).

• Pay is a turn-off and training is vital for survival, transport

and logistics companies told

• Just 36.5% probability that people will find the sector

‘attractive’ to work in by 2030

• Nearly 70% probability that transport and logistics must

face an image revamp by 2030 to survive

In Winning the Talent Race, volume 5 of PwC’s Transportation

& Logistics series, industry experts warn that executives need

to improve the sector’s poor image and make it more attrac-

tive to potential young job seekers. Experts say that the brand

perception of the industry needs reinvigorating, adding that the

sector is one of the most poorly paid and least diverse to work in.

The report explains that an ageing workforce has led to a

diversified skills gap, and more needs to be done in the

industry to make it attractive to young people.

Akhter Moosa, Transport and Logistics leader for PwC,

Southern Africa, says: “The findings of the study are hugely

significant for the transport and logistics sector showing

what must be done before the industry falls into a critical

state. Poor image, pay and prospects are all perceptions

that currently choke the industry. The reality is that there are

rewarding, multinational opportunities out there that need

tapping into.”

PwC presented 15 theses to a panel of 94 senior executives

from 24 countries working in business, government and the

scientific area. During an eight week

period the panel of experts studied the

hypotheses and were asked to assess

the probability of each one on a scale

of 0-100%.

The study found that there was a

low 35.6% probability of the sector

being seen as ‘hip’ and attractive to

work in by 2030. There was also a

68.3% probability that firms will need

to seriously change their image or brand to stay competitive

in order to survive.

The report states that businesses should be focusing on

increasing the training programmes they offer to young

recruitments. “The problem is compounded by a dearth of

training programmes in many areas and an insufficient focus

on learning and development within individual companies,”

says the report.

“The fi ndings of the study are hugely signifi cant for the transport and logistics sector”


LOGISTICS

Skills shortage The transportation and logistics

industry isn’t viewed as attractive by

most job seekers. Most transport jobs

are also considered to be low-paying

dead-ends.

The survey confirms the shortage

of skilled employees in South Africa

and that transportation and logistics

companies are lagging behind other

sectors in terms of recruiting and

hiring staff.

The panel of experts pointed out that

the industry is having trouble attract-

ing young and skilled people, largely

due to the sector’s poor image. The

experts also noted a number of other

factors that are preventing the indus-

try from attracting a sufficient pool of candidates, including

low wages and less than optimal work environments.

However, some experts believe that ongoing globalisa-

tion and increasing flows of goods will assist in boosting

the visibility of the sector. Some panellists are also hopeful

that the increasing number of universities and postgraduate

programmes focusing on logistics topics will also help fill the

future gap.

Compensation and incentives The transportation and logistics industry pays lower wages

than other companies do in other sectors. The study found

that it was difficult to compare wage levels between countries

as survey methodologies differ widely. However, it found a

consistent pattern that in many countries wage levels in the

sector rate far down the list compared to other industries. For

instance, transportation and storage salaries are 42% lower

than in the best-paying industry.

Furthermore, within transportation and logistics there

are significant variations in salary levels between different

employment groups. In this industry, job profiles range from

pilots and seafarers to truckers and rail drivers. The skills

needed and working conditions vary significantly, and so do

the corresponding wages and benefits.

Wages are not the only form of compensation that mat-

ter. Benefit packages are becoming increasingly important,

although they differ from country to country.

Moosa says: “Transportation and logistics companies

need to take a critical view of their remuneration systems

and benchmark their salaries against their peers and other

industries and recognise salary alone isn’t the only way to

compensate employees.”

The panel of experts predict that the sector will need to

offer above-average salaries compared to other industries

in 2030 in order to bridge the current gap and make the

sector more attractive. When it comes to requiring only

basic skills, the panellists think that it’s likely that wages

will stay low. On the other hand, they think for management

functions and highly skilled positions, such as those in

supply chain management, the industry will need to offer

above-average salaries to attract ‘smart people’. ‘Since

every industry competes for the best employees, transpor-

tation and logistics companies need to differentiate them-

selves,” says Moosa.

A diverse workforce With older workers making up a greater part of the overall

talent pool, companies will need to rely on them more. The

panel of experts thinks that companies in the transport and

logistics sector will be able to adapt work environments to

the needs of older workers by 2030 to

avoid risk to productivity and quality.

The report points out that a num-

ber of technological innovations and

advances in material handling sys-

tems are already taking place. Such

systems tend to make some types

of workplaces more ‘elder-friendly’

although companies may be more

motivated by concrete calculations

around increasing productivity and

gaining technological advantage than

they are about how such systems

affect their people.

Probability ratings were less than 50%

when the panel of experts considered if

women would play a more active, and

senior, part in transport and logistics

firms, and also if the industry would be

more diverse in comparison to other

sectors, by 2030.

Moosa says: “Logistics companies

in emerging countries need to invest

heavily in training, development and

education to prepare for a younger

workforce. Those in developed coun-

tries will also need to incorporate these factors into their busi-

ness strategies as well as working to improve their recruit-

ment and retention methods and adapting the workplace to

support an older workforce.

“Jobs in this industry can evolve into great careers for peo-

ple but the image must change, and soon.”

“Experts predict that the sector will need to offer above-average salaries compared to other industries.” Akhter

Moosa, Transport and Logistics

leader, PwC, Southern Africa

getru


ROAD FREIGHT

Loading ProceduresUnsecured loads should not be placed in tautliner curtain

sided vehicles and trailers, as the curtains are generally

not strong enough to restrain the load in the event of an

accident.

Before loading packages of drums onto vehicles, driv-

ers should inspect the packages to ensure that damaged

or leaking packages are not loaded. These should then

be effectively secured to prevent movement and the pos-

sible protruding of the package on the sides of the vehi-

cle. Packages should be secured so that they do not fall

off the vehicle in the event of a collision or overturning.

Intermediate bulk containers should be individually secured

on the floor of the vehicle by chains, straps or clamps.

The following measures should be in place pre and post

loading of goods:

• pre-loading checks

• drivers should ensure that the site is suitable and safe for

the operation before they start loading.

• post-loading checks

• in case of dangerous goods, check that the correct

transport emergency cards and dangerous goods decla-

ration are stored in the designated space

• only emergency information documents for the current

load, and licences and permits as required by national

legislation are stored in the designated space. All extra-

neous documentation should be removed

• the driver must understand the information and instruc-

tions on the transport emergency cards

• the vehicle is not overloaded or under loaded so as

to present a safety risk, and that the load is properly

secured

• the correct dangerous goods warning placards are

in place.

CAIA encourages operators and consignors to have docu-

mented loading and securing procedures in place and to

ensure that the ‘qualified person’, in terms of dangerous

goods transportation, ensures that the loading is carried

out correctly and that the load is secure.

Drivers are also encouraged to take responsibility for

checking and retightening the load on route as load set-

tling can take place and lashing, strapping and ropes may

become loose. Bulk tankers must be loaded correctly to

prevent axle overload and excessive product surge in

under loaded tankers.

Acknowledgement: The above excerpt was taken from Barloworld

Logistic’s Supply Chain Foresight 2012 report. For a full copy of the

report visit www.supplychainforesight.co.za

The Chemical and Allied Industries’ Association

(CAIA) Responsible Care supports safe trans-

port and has emphasised the importance of

the correct loading of goods on vehicles and

complying with load securement standards.

The South African Bureau of Standards (SABS) has pub-

lished a group of SANS 10187

standards: Parts one to nine

cover the requirements and rec-

ommendations for load secure-

ment on vehicles. Compliance

with SANS 10187 is a legal

requirement because of its ref-

erence in SANS

10231, which

stipulates that

“cargo secure-

ment shall be in

line with SANS

10187 to reduce

the risk of spillage

in the event that a

vehicle overturns

or should a similar

incident occur”.

A critical aspect in safe transportation

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

LOAD SECURING

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


FREIGHT RAIL

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

MAIZE TRANSPORT

Albert Swart, Transnet Freight Rail (TFR) execu-

tive manager of sales & marketing for agri-

culture, says that over time TFR may come

close to meeting the requirements of the maize

industry, but will not be able to do it overnight.

TFR transported 3.3 Mt of grain last year – or just over

20% of South Africa’s 15 Mt production total. The rest

was transported by road. Swart admits there has been a

drop in tonnages transported by Transnet over the past

few years. He ascribes this to unreliable rolling stock and

outdated locomotives.

Although TFR will be allocated R201 billion of the R300

billion expansion budget, most grain and other agricul-

tural produce will still have to be transported by road.

Of the R201 billion, R77.2 billion will be for new locomo-

tives, R76.7 billion for infrastructure improvements and

R47.1 billion for new trucks.

Priorities need to change“The grain industry is low on the list of Transnet’s priori-

ties,” says Annatjie Loio, president of the Grain Handling

Organisation of Southern Africa. “Transnet is more geared

towards loading mining commodities at a single point and

delivering it to a port.”

“For instance, with grain, there are 10 trucks to load at

Bothaville, 17 at Hertzogville and 12 at another stop. Then

there are stops all along the way to offload, and so on.

Nonetheless, because we are dealing with food, it is vital

that grain be transported as cheaply as possible to where

it is needed”, says Loio.

But for Transnet this would mean maintaining a network

of branch lines. Given the cost overheads and financial

non-viability, this does not match Transnet’s strategy of

commercial viability – hence its strategy to privatise branch

lines. It is a lot simpler and more cost effective, transporting

mining commodities from one point of pick up to one point

of delivery. Despite these economic realities, Loio insists

that Transnet will have to come to the party as the grain

industry enters a new growth phase. This was initiated by

the export of more than 2 Mt of grain during the past season

to neighbouring countries as well as Mexico, Italy, Korea,

Venezuela, Kuwait, Iran, Japan, Madagascar and Taiwan.

“In the sub-Saharan region there is a population of

one billion people that must be fed. There are also huge

opportunities with South Africa being one of the BRICS

countries, which have a total population of almost three

billion people.”

Economist Roelof Botha says the BRICS countries

consume US$2 trillion (R16.6 trillion) worth of food

every year, which is about 34 times South Africa’s total

agricultural yield.

Loio says the South African grain industry will “definitely”

play an even bigger role in the future

in feeding the region due to its “privi-

leged position with regard to storage

capacity and infrastructure”.

But though the South African indus-

try is able to receive, handle, fumigate,

dispatch and store in its silos the

15 Mt of grain produced, it is forced

to transport about 80% of this by road.

“The proportions used to be 90% rail

and 10% road, now it is almost the other way around,” says

Loio. “It is expensive and increases traffic. Heavy trucks

add to the wear on the roads.”

A solution must be found.

“There are also huge opportunities with South Africa being one of the BRICS countries.” Dr Roelof Botha, economist


PUBLIC TRANSPORT

PASSENGER RAIL

Imag

e An

dré

Kritz

inge

r

Former transport minister, S’bu Ndebele, opened

the procurement processes during April worth

R123.5 billion for train sets for Metrorail’s com-

muter system and R14.5 billion for infrastructure

upgrading and the construction of new rail depots.

The Passenger Rail Agency of South Africa (Prasa) will

acquire 7 224 coaches nationally over the next 20 years to

meet demand. The government has set a 65% localisation

target for successful bidders. Early this year the government

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

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


Prasa contract to build R123.5 billion of new rolling stock

will be forced to accept a black economic empowerment

(BEE) partner chosen by the agency. Prasa believes this

“new and innovative” approach to

BEE will address some of the pitfalls

experienced in the past, when inap-

propriate BEE partners with no long-

term commitment were chosen for

projects, often only because of their

political connections.

Two 10 year contracts to produce

360 rail coaches a year are envisaged

and a minimum target of 65% local content will be set for

manufacturing. The request for proposal documents for the

manufacture of metro coaches over the 20-year duration

went on sale in April.

Selection of BEE partner criticalInstead of the winning bidder of the contract bringing its

own BEE partner, as has been the practice in the past,

Prasa itself will appoint the partner. Lucky Montana con-

ceded in an interview at the time that such an approach to

BEE participation carried the risk of clashes and incompat-

ibility between the selected BEE partner and the original

equipment manufacturer, but said these could be mitigated

by agreements and guarantees.

Montana said he believed it was better for Prasa to choose

the BEE partner than to have the winning manufacturer

bring its own partners, often chosen on the basis of being

well connected rather than having a long-term and commit-

ted engagement to the project – as had happened so many

times in the past. Prasa wants to avoid a situation where the

original equipment manufacturer brings in its own BEE part-

ner which does not prove to be an appropriate partner – a

BEE partner that will add value and take a long-term view is

a requirement. The overhaul project is aimed at avoiding a

situation that has occurred historically where a BEE partner

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

announced the first R5 billion allocation to Prasa, Metrorail’s

parent. Out of the R5 billion, R4 billion is reserved for the

procurement of new rolling stock, while R1 billion will be

used for the upgrading of rail infrastructure such as signal-

ling, and the upgrading and building of new train depots.

On the signalling front, the rail agency selected Siemens

in 2010 as the preferred bidder for a contract to install

new signalling on key suburban routes. The top prior-

ity was Metrorail’s busiest corridors, such as Pretoria to

Johannesburg, Mabopane and Mamelodi, the Naledi line in

Soweto; KwaMashu - Durban - Umlazi; and Cape Town to

Khayelitsha, Mitchells Plain, Philippi, Kraaifontein, Bellville

and Simon’s Town.

Announcing the deal in October 2010, Lucky Montana, the

Group CEO of Prasa said 80% of the signalling installations

are obsolete, and the remainder were not able to fully sup-

port modern and safe operations.

Renewal programmeMontana has stated that the fleet renewal programme

will not only change the face of public transport in South

Africa to focus around rail as the backbone, but it is the

largest project of its kind in the country, with a potential to

create 65 000 jobs over the next 20 years and revive the

country’s rail engineering sector. Speaking at Metrorail’s

Braamfontein depot in Johannesburg, Ndebele said the cur-

rent rolling stock was old, with the majority of the coaches

built in the 1960s and 1970s, and still being driven by

old-style technology. He said the rail system had reached

the end of its design life. The system, defined in terms of

technology, operations, service design and skills, was no

longer able to meet passenger expectations and economic

demands effectively.

Ndebele said rail services played a significant role in

the major metropolitan areas, and by acknowledging the

country’s strong railway tradition, Prasa’s key objective

was to promote rail as the preferred mode of transport

for the majority of the people. He

was quoted as saying, “Our trans-

port policy is about promoting public

transport over private car use…..The

policy also seeks to reduce the costs

of transport for poor and middle-

income households, with the poor

still carrying the burden of an inef-

ficient transport system, rooted in

the geography of apartheid, where

the majority continues to live far from

places of work.”

The former minister also stated

that the government was confident

that Prasa’s vision to be the lead-

ing provider of passenger services

was becoming a reality. It would be

through this vision that the agency

would provide a safe, reliable and

modern passenger rail service to all

South Africans.

The manufacturer that wins the

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

PUBLIC TRANSPORT


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has not necessarily resulted in being the best business

choice. A special-purpose vehicle is to be created. The BEE

stake in the vehicle will be ring-fenced and housed in the

National Empowerment Fund. Within 12 months of appoint-

ing the manufacturer, the appropriate BEE partner will be

selected through “an open, competitive process”.

The winning bidder would lead the special-purpose vehi-

cle, with the BEE partner getting a stake of 26 to 40% in the

project. Montana told MPs that the programme to renew

rolling stock would contribute to the government’s industrial

policy action plan by strengthening local manufacturing and

production, skills development and job creation. Setting

high local content targets would assist in creating local

industries that could sustain local production.

However, Prasa’s new developments technically are

not enough. The rail agency has a poor track record of

staff discipline and professional conduct and this needs

to be addressed to make public transport more attracta-

ble besides new state-of-the-art technology. It also has

a record of poor, late-running operations which have

led to angry, frustrated commuters embarking on arson

attacks and setting train sets on fire. The problems of free-

riders and train-surfing are safety issues that also need

ongoing attention.

Safety standards are non-negotiableIn a concerted effort to address the safety aspect, in May

last year Metrorail instituted a zero-tolerance approach to

drivers who do not submit to its safety protocols. It has

made disobeying speed limits or signals a fireable offence

and ordered train drivers not to rely on their own judgment

when they are cautioned to proceed with care. Back to back

accidents last year

were, in both

instances, the

result of the train

drivers having

ignored signals.

In one instance a

train driver, who

had already been

disciplined for

exceeding route

speed limits and

put on probation

for 12 months,

ignored two signals

to stop and trav-

elled at 85 km/h in

a 30 km/h zone. A

resultant accident

injured 857 people

and cost Prasa

more than R55 mil-

lion through the

creation of an

accident victims’

fund, the payment

of medical bills

and the train-crash

cost of repairs. Following a spate of nasty “headlines”

incidents in 2011, Prasa started a 90-day programme

to improve its overall performance, which encompassed

safety, driver behaviour, train availability and ensuring

the availability of spares at train depots. The agency has

undertaken to strengthening its human factor manage-

ment. It has increased the frequency of random testing of

its drivers for things such as sobriety and other “fitness for

duty” measures. Compulsory medical check-ups take place

twice a year.

Last year the country’s Rail Safety Regulator (RSR) unveiled

a new safety guide called the Human Factor Management

Standard which it developed with the South African Bureau

of Standards. The Human Factor Management Standard

sets minimum requirements for all railway operators and

their employees.

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

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


PUBLIC TRANSPORT

SEA FREIGHT

The recovery plan for Transnet Port Terminals’

(TPT) Durban Container Terminal (DCT) Pier 2

was introduced last year. This followed delays

and downtime linked to the rollout of the Navis

SPARCS N4 terminal operating system. This system is in

use at most of TPT’s container terminals, but DCT Pier

2 was the biggest and most complex terminal to have

adopted it.

Navis is a web-based portal that provides real-time ship-

ping information to TPT and customers, allowing them to

track the movement of containers in port. TPT was also the

first port operator in the world to use the multi-site, single-

server functionality of the system.

During disruptions, TPT worked closely with the Navis

Productivity gains at Durban’s DCT Pier 2

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

PORT EFFICIENCY

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


SEA FREIGHT

software manufac-

turers to iron out

the technical issues

and then set out to

introduce its recov-

ery plan to industry

and other stakehold-

ers. This plan aimed

to stabilise the ter-

minal’s operations

from June 2011 and

to grow the business

thereafter by encour-

aging improve-

ment in key areas

such as human

capital, equipment

and planning.

With the delays

and outages from

the complex rollout

of the Navis SPARCS

N4 terminal operat-

ing system now mini-

mised at DCT Pier 2, port operator Transnet Port Terminals

says it is focusing on sustaining employee performance and

cementing correct business processes at the cargo facility.

Productivity is crucial to sustainabilityTerminal executive for DCT, Hector Danisa, outlines some

key productivity improvements since a recovery plan was

introduced at DCT Pier 2 late last year.

The plan aimed to reduce bottlenecks and boost the ter-

minal’s operational performance after delays and technical

downtime linked to the Navis rollout in April 2011.

Thus far, DCT has seen improvements in its container

handling rates, berthing times, truck turnaround time and

degree of congestion in the container stacking yard.

“We are focusing on the so-called ‘softer’ issues now,

namely intensifying efforts to improve employee productiv-

ity, boost morale, reduce absenteeism, improve safety and

inculcate a real performance culture across the terminal,”

says Danisa.

He explains that while DCT Pier 2’s container handling

had improved beyond pre-Navis launch levels, the chal-

lenge was now to build sustainable processes to ensure

continued performance and to make DCT competitive at

international norms.

This, he said, TPT was addressing through various human

capital initiatives such as:

• The establishment of mission-directed work teams at DCT,

spearheaded by TPT’s new People Transformation and

Development Unit. These teams are essentially ‘mini busi-

nesses’ grouped within the operation according to type of

work, and each group will focus on quality, speed, cost,

safety and people as work is executed.

• A mentorship programme for operators of lifting equip-

ment to improve crane handling.

Equipment upgrades have been a key focus, as Transnet’s

accelerated capital expenditure programme sets out to

reduce the impact of breakdowns

due to ageing equipment at DCT.

For example:

The terminal is now using 28 new

diesel-electric straddle carriers, 14

of which have twin-lift capability.

A concerted effort is under way

to carry out midlife refurbishments

on major equipment timeously.

Thirty straddle carriers have been

refurbished. Four ship-to-shore

cranes have also been refurbished.

Seven new tandem lift ship-to-shore

cranes will be delivered towards the

end of the year.

DCT also beefed up its human resources with around

200 new employees introduced into operations, spe-

cifically crane operators. The company could now com-

fortably have 15 operational teams in place.

Landside operations saw the launch of a pre-advice

system for both Pier 1 and Pier 2, aimed at improving

planning of work and enhancing security in managing

containers in the port. A truck appointment system

will also be piloted at DCT Pier 2 from June 2012 to

improve the scheduling of road cargo and general pro-

ductivity in the logistics chain. It will initially be tested

with four trucking companies and could be extended

thereafter.

Under the new appointment system transporters

would schedule their container collections or drop-

offs via the Navis terminal operating system. They

would then be allocated a time slot of about one and

a half hours within which to arrive at the terminal. This

would enable TPT and transport companies to deploy

resources more efficiently and effectively, and could

also minimise truck congestion on Bayhead Road.

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

Terminal executive for DCT


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

...won an international

award

EDUCATION & TRAINING

The Simon’s Town-based Lawhill Maritime Studies

programme, which was pioneered in the mid-

1990s, is the winner of the 2012 Seatrade

‘Investment in People’ award. Since its inception,

the programme has consistently improved the employment

prospects of hundreds of young South Africans leaving

school each year. The programme has also demonstrated

the value and potential of partnerships between the private

sector and an educational institution in addressing one of

South Africa’s most pressing social issues, namely youth

unemployment and poverty.

According to 2011 statistics provided by StatsSA, approxi-

mately a third of South Africa’s current estimated population

of 50.59 million is aged between five and 19. Of this 24% –

four million – are aged between 15 and 19.

Brian Ingpen, head of the Lawhill Maritime Centre, says the

high number of South African school leavers versus the lim-

ited number of available employment opportunities empha-

sises the importance of establishing more, innovative, indus-

try-funded educational partnerships and curricula which not

only prepare young people for employment both locally and

abroad, but which also encourage entrepreneurial thinking.

An estimated 42% of young South Africans aged between

18 and 29 are currently unemployed. Ingpen says the

shortlisting of the Lawhill programme for the 2012 Seatrade

SEA FREIGHT

Investment in People Award is “recognition that Lawhill is

helping to address the skills shortage in the maritime indus-

try by creating opportunities for young people, particularly

those from disadvantaged backgrounds, to pursue a career

in a growing and important industry. The shortlisting is also a

special achievement for the hundreds of students who have

passed through the programme since it was founded 17

years ago and for the organisations that have, and continue

to, support the programme.”

The Lawhill Maritime Centre is entirely funded by the ship-

ping industry, and Safmarine, a pioneer of the Maritime Studies

programme, has been one of its most loyal supporters.

“Supporting education by giving our youth the skills and

opportunities they need for a fair chance to succeed in life is

not only a priority in a country such as South Africa (where

more than 50% of the population is under 25), but particu-

larly important considering South Africa’s current high rate

of unemployment, which is the main reason an estimated

40 to 50% of South Africans live in poverty,” says Safmarine

Southern Africa Cluster manager, Jonathan Horn.

At 24.9%, South Africa’s official rate of unemployment is

among the highest in the world.

According to Safmarine CEO, Grant Daly: “The success of

the Lawhill programme is yet another example of Safmarine’s

‘sustainable partnership’ approach – an approach we don’t

only apply to our business and our relationships with custom-

ers, but also to our dealings with local communities around

the world.

“As such, we are delighted that this programme, which has

helped so many young South Africans find meaningful and

productive employment, has once again received interna-

tional recognition.” The Lawhill programme won a Lloyds List

Salute to Youth and Training Award in 1999.

Safmarine, a shipping brand that originated in South Africa

and is now operating in 130 countries around the world, is

also a former winner of a Seatrade award. In 1995, the com-

pany won a Seatrade award for its innovative ‘Containers in

the Community’ programme, a Corporate Social Investment

programme that celebrates its 20th anniversary in July 2012.

Congratulations go to Brian Ingpen, head of Lawhill

Maritime Centre, who won the Seatrade ‘Investment in

People’ award.

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


PARTS & MAINTENANCE

With the globalised world rallying to the clar-

ion call to go ‘green’ and, with unrelenting

pressure, the continuing need to become

even more competitive a constant, pro-

ductivity efficiencies are all the more important because, in

terms of profit, this translates into doing more in less time

and at an ongoing customer satisfying quality.

Hydraulics, one of the most useful human inventions, is

a means to harness the tenfold mechanical energy that

can be derived from fluid in motion. But, like everything in

business, it has to be properly managed and maintained.

Hydraulic systems are precision machined and operate

under high pressure. Keeping the internal workings of

these systems in pristine condition is crucial to the efficient

and cost effective (profitable) operation of the equipment.

In a nutshell, you cannot manage what you do not meas-

ure. And, if you don’t measure it, it will catch you off guard

at the most inconvenient of times. Murphy’s Law!

Oil, the big issueThere are many variables that determine the rate at

which hydraulic oil degrades. However, original equipment

manufacturers (OEMs), not wanting to complicate matters,

simplify the decision by saying after ‘x’ hours change the

oil – without any reference to the actual condition of the oil.

There are only two conditions that necessitate changing

hydraulic oil – degradation of the oil or the depletion of an

additive. Given the costs involved, changing oil unneces-

sarily will be an expensive mistake. If the hydraulic system

Saving money, saving time

has a large reservoir, new oil costs could be significant. In

addition, equipment downtime carries with it a cost, which

could take many forms i.e. additional labour, temporary

equipment hire, penalties for missed delivery dates etc.

At the same time you cannot just assume your hydraulic

oil does not need changing. Poor oil quality will damage

your system. Even so, if it is a minor water contamination

problem, it does not mean you need to change your oil.

Water can be filtered out.

Nonetheless, all being said, regular monitoring of

hydraulic fluids, to measure operat-

ing quality, so that maximum effi-

ciency is maintained, is a good idea

and a recommended practice. The

‘particle count’ test detects potential

wear-causing dirt and contaminants

early enough to take action. Water in

oil is the biggest concern because it

accelerates acid formation, increases

oxidation and reduces lubricity, all of

which leads to system failure. Water

content (%) using the Karl Fischer test provides a precise

measurement of how much water is present in the hydrau-

lic fluid.

Filters, the next priorityA similar situation applies to hydraulic filters. Changing

filters too early (unnecessary expenditure) or too late (with

a clogged filter forcing the bypass valve to open, raising

HYDRAULIC SYSTEMS

Although not quite as advanced as the Transformer ‘Megatron’, mechanised hydraulic systems are nonetheless just as strong. Eff ectively deployed, effi ciently maintained, this physical strength translates into profi t. BY TONY STONE

Keeping hydraulic systems in pristine condition is crucial to operational effi ciency and profi tability


particle levels, which cause physical damage) carries

similar cost implications. Tracking the results of particle

count tests serves as an indicator but the best solution

is to measure pressure and/or the flow rate immediately

after a filter. This can be achieved by using a differential

pressure gauge or a transducer. Any drop in pressure

would indicate a problem. Where filters are fitted is crucial.

Locations that must be avoided are at the pump inlet, and

at the piston pump and motor case drain lines.

Not having a filter at the pump inlet may seem illogical,

given that the pump draws its oil from a reservoir. Even so,

the reservoir should not become a trash can. But, the more

important consideration is, from a pump efficiency point of

view, having a clogging or clogged filter at the pump inlet

will not fill the pump chambers with freely flowing oil dur-

ing every intake. Research shows that a restricted intake

reduces the life of a gear pump by as much as 56%. It’s

worse still for vane and piston pumps that are less able to

withstand the vacuum-induced forces created by a restrict-

ed intake. Hydraulic pumps are

not designed to ‘suck’. Filters

fitted to drain lines generate a

different set of problems but

have the same result – reduced

service life.

Running too hot, or cold Using the right oil for the prevail-

ing climate in which the hydraulic

equipment is used is critical. This

refers specifically to oil viscos-

ity, which affects both machine

performance and service life. Oil

will not flow properly if the viscos-

ity is too high for the climate the

machine operates in, especially

on the hotter days. If the viscosity is higher than ideal, more

power is lost to fluid friction. If lower than ideal, more power

is lost to mechanical friction and internal leakage.

Using the wrong viscosity oil not only results in lubrica-

tion damage, it will also lead to the premature failure of

major components and increase the consumption of diesel

or electricity, whichever is the energy source. As such, the

importance of lubrication cannot be overstated.

Viscosity therefore defines the maximum and minimum

temperatures, or what is commonly referred to as the tem-

perature operating window (TOW), in which the machine

can operate safely and productively. It is advisable to

check that your machine’s actual temperature operating

window falls within the temperature operating window of

the oil in the machine, especially in imported machines.

The rule then is simple. An increase in oil temperature will

result in a decrease in viscosity, which, if your system gets

too hot, lubrication will be inadequate.

It’s important to bear in mind that a vane pump requires

a higher minimum viscosity than a piston pump, another

reason why a system’s components influence the system’s

safe maximum operating temperature.

Hopefully your hydraulic system includes a vane pump.

If so, the minimum viscosity should be 25 centistokes

(cSt or mm2/s). For mineral oils with a viscosity index of

around 100, this equates to a maximum allowable operat-

ing temperature of 35oC if you are using ISO VG22 oil or

65oC for ISO VG68. Operating temperatures above 82oC

damage most seal and hose compounds. This obviously

accelerates the degradation of the oil and is something to

be avoided.

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

However, how you start, and everything that goes into

starting is all important too. Fundamental to starting and

finishing is the knowledge of what

to do and remembering to do it.

Operator education and training in

hydraulics and the equipment being

used is vital. For example, you would

not start your car without any oil in

the crankcase and you would not

take off in a plane without doing a

few checks first. Starting off without

everything that is needed in place

and ready to go will not see you

finishing the race. The same can be

said of hydraulic equipment. Check

and monitor the fundamentals of

your system as recommended by

the OEM and as discussed in this

article at start up – every time.

Serious problems can and will be

prevented by being proactive, and

time and money will be saved.

References: Brendan Casey, Six costly

mistakes most hydraulics users make,

www.hydraulic supermarket.com

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

PARTS & MAINTENANCE


Federal Mogul is best positioned to implement truly

innovative solutions in response to the global car-

bon dioxide (CO2) challenge. As world technology

leaders in powertrain efficiency, Federal Mogul

engineers have fine-tuned and developed new technologies

that are aimed at reducing CO2 emissions and upping engine

performance with OEM (original equipment manufactur-

ers) approved solutions. A little less than one third of heat

released during operation actually produces torque. The

rest is dissipated in heat transfer, friction and gas exchange.

Federal Mogul understands the potential in these wasted

energies and, with a range of solutions, is turning theoretical

performance-boosting approaches into useable technolo-

gies that are redefining the concept of efficiency.

Direct solutionsThe overall reduction of friction with optimised product

designs has a major effect on engine efficiency. Typically,

power cylinder assemblies (pistons and piston rings) account

for 40% of engine friction losses and dissipate useful energy

in the form of heat. Federal Mogul has optimised the design

of pistons, piston rings and piston coating technologies, pro-

viding a significant reduction of frictional horsepower losses

and improving fuel economy.

When these technologies are implemented on a typical

170 g/km CO2 petrol vehicle on the New European Driving

Cycle (NEDC), this suite of technologies reduces CO2 emis-

sions by up to 4.4 g/km. The application of similar technolo-

gies to a typical diesel vehicle with a base emission of 150 g/

km CO2 can lead to CO2 improvements of 2.5 g/km.

The use of new innovations in cylinder heads and gaskets,

such as Federal Mogul’s flagship Payen® brand, can also

help minimise bore distortion. This translates into a ring pack

design with less friction, lowering CO2 emissions. Federal

Mogul designs have also improved sealing and bearing

technologies. This contributes to a further reduction in fric-

tion – offering high-performance dynamic sealing for low

torque that can be used for front and rear seals, as well as

for transmission and axle applications. Efficient seals enable

a reduction of more than 0.5 g/km CO2, as based on the

NEDC test cycle. Out-dated spark plug technology that sees

a large gap growth over extended use is another area where

Federal Mogul has implemented its high-end engineering

skills for reduced CO2 emissions. Using iridium technology

in the production of extremely durable ‘fine wire’ centres

and ground electrodes, engineers have been able to expose

the cylinder’s air-fuel mixture to a larger spark plug gap for

a brighter ignition with higher voltage. The Federal Mogul-

developed alumina ceramic helps assure the high-voltage

and high-temperature operation of spark plugs.

With a combination of higher spark energy and engine rec-

alibration, testing has shown a reduction of up to 2.4 g/ km

in CO2 emissions. In diesel engines, superior afterheating

performance by Federal Mogul-engineered glow plugs has

also been measured – showing that engines can meet Euro

VI requirements without the need for ceramic materials.

The Federal Mogul endeavour to find every component

that can be optimised to deliver lower CO2 emissions

has even led to design changes in windscreen wipers

and lighting. The company has developed flat-blade wip-

ers which reduce mass and energy required for operation

– while still providing superior wiping performance.

By converting lighting sources to LEDs and focusing them

more efficiently with Federal Mogul-developed lighting sys-

tems, mass, power draw and copper wiring requirements

can be reduced. This solution gives users a cost-effective

alternative that, as a result of lighter weight, also reduces

CO2 emissions.

Enabling solutionsHigh performance gained from Federal Mogul-engineered

technologies allows OEMs to increase cylinder pressure

drastically. This enables engines and powertrains to have bet-

ter performance, fuel economy, and reduced CO2 emissions.

Federal Mogul offers other enabling solutions that bring the

possibility of high-temperature operating conditions to the

market, such as a range of heat shields for thermal protection.

Advanced valve seats and guide materials also allow for the

use of ethanol-based fuels which lack the lubricity of conven-

tional petroleum and result in lower CO2 emissions.

Driver solutionsAs the international automotive industry begins to use Federal

Mogul efficiency technologies, even further reductions in CO2

emissions are achievable by making a few adaptations to

one’s driving style:

• drive with closed windows to reduce unnecessary drag,

which slows the vehicle and burns more fuel

• service vehicles regularly

• ensure correct tyre pressure to help minimise drag on the

road surface

• accelerate slowly

• avoid, when possible, driving with a full fuel tank as the

weight could increase consumption.

EMISSION CONTROL

TECHNICAL CORNER

...an ongoing challenge

(From left)Flange bearing: Hard-wearing fl ange bearings help keep engines operating effi ciently

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

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

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

Systematic approach to curbing CO2 emissions...


TAIL END

The relationship between economic growth and infrastructure The relationship between economic growth and infrastructure development – and maintenance – has been well established development – and maintenance – has been well established through empirical research carried out by reputable institutions. through empirical research carried out by reputable institutions. To ignore this relationship would be akin to economic suicide.To ignore this relationship would be akin to economic suicide.

Tony Tony Stone Stone

ED’S OPINION

The last time I passed through Viljoenskroon (famous

for its toilets in the veld) and Bothaville, in the Free

Sate, was about 20 years ago. This time round, I

went down to visit the NAMPO Agricultural Show and was

very surprised to find, in the heart of South Africa’s bread

basket, a local and international show with 670 exhibitors.

Major truck manufacturers were there, as were key agri-

cultural equipment suppliers, and there were 4x4s ‘to die

for’, the odd prize bull, some magnificent horses, sheep

and goats, Tante Marie’s candyfloss and Oom Jannie’s

‘mampoer’.

As to maize, last month the government Crop Estimates

Committee forecasted South Africa would harvest 11.7 Mt of

maize in the current 2011/12 production season, compared

with the 10.36 Mt of the 2010/11 season. Local maize prices

are roughly R2 153 per tonne for white maize, while yellow

maize is approximately R2 119.60 per tonne. Of this harvest,

approximately 2 Mt (1.24 Mt of white maize and 760 000 t of

yellow maize) will be exported.

What’s really interesting about the Free State is that it pro-

duced 38% of South Africa’s 2012 commercial maize harvest,

60% of which was white maize and 40% yellow maize. This

means the Free State produced 4.5 Mt of maize and will earn

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

R1.6 billion in foreign currency for South Africa, which helps

our balance of trade.

However, and herein is the rub, the road between Vredefort

and Bothaville

(Khotsong) via

Viljoenskroon is

so potholed that

it is hazardous

to say the least.

Flower-bedecked

crosses along the

way bear testimo-

ny to this. Added

to this problem is

the fact that who-

ever was previously contracted to repair this stretch of the

R59, a major provincial road, obviously did not have the

skills or the know-how to do proper road repairs. Shoving,

stripping and bleeding occur along stretches of this road

that in places make it extremely dangerous to drive, even at

a sedate 80 km/h. Approximately 7 100 vehicles travel along

this road each day, including large commercial trucks and

abnormal load trucks. After years of neglect, and the pound-

ing that this road is taking, its present state of maintenance

makes it a gauntlet of death.

Considering the importance and size of the contribution of

this maize producing community to the economy and South

Africa’s food supply, especially the farmers down the R59,

this road is an indictment of the Free State MEC for Public

Works and Rural Development whose priorities are highly

questionable. This will result in damage to the Free State’s

much needed economic growth and development due of

poor infrastructure maintenance – and will no doubt result in

the avoidable death and/or injury of drivers, passengers and

pedestrians alike.

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

BAD WORKMANSHIP

Bleeding of asphalt (left) and

road warping (right)

Indictment!


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TWA June JUly 2012

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