twa june july 2012
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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
Emirates Skycargo
Volkswagen Commercial Vehicles are always right for the job. From the Caddy to the Amarok and
Crafter, they’re ready to partner your business and help it succeed. And with optimised fuel
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incredible safety standards, they work better. So visit your nearest Volkswagen Dealer, get behind
the wheel and get to work. Let’s Work.
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GILVY CAPE TOWN 46552/E/BODYBUILDER © VWSA
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 • tony@3smedia.co.za
Head of design Frédérick Danton
Senior designer Hayley Moore Mendelow
Contributors AIDC, Barloworld Logistics, Barney
Curtis, IATA, John Batwell, Paul Hoben, PwC
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
4 TWA | Jun/Jul 2012
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
TWA offers advertisers an ideal platform to ensure maximum exposure of their brand. Companies are afforded the opportunity of publishing a two-page cover story and a cover picture to promote their products to an appropriate audience. Please call Hanlie Fintelman on +27(0)12 463 2564 or e-mail her at h.fintelman@lantic.net to secure your booking.
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
6 TWA | Jun/Jul 2012
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
8 TWA | Jun/Jul 2012
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.
10 TWA | Jun/Jul 2012
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
12 TWA | Jun/Jul 2012
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• 853 million people • 6.4% GDP growth in 2012, and more beyond
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LEADING PRODUCT MANUFACTURERS AND SERVICE PROVIDERS doing business in Africa read and advertise in Transport World Africa - regularly. Do you? To gain an understanding of this market, and more importantly, get your product to market, subscribe to Transport World Africa. We will provide you with the business intelligence needed for your company to operate profitably in Sub-Saharan Africa.
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
14 TWA | Jun/Jul 2012
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.
15TWA | Jun/Jul 2012
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
16 TWA | Jun/Jul 2012
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
17TWA | Jun/Jul 2012
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
18 TWA | Jun/Jul 2012
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
19TWA | Jun/Jul 2012
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.
20 TWA | Jun/Jul 2012
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: marketing@namport.com.na
| | | |
|
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.
22 TWA | Jun/Jul 2012
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
23TWA | Jun/Jul 2012
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
24 TWA | Jun/Jul 2012
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”
25TWA | Jun/Jul 2012
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
27TWA | Jun/Jul 2012
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
28 TWA | Jun/Jul 2012
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
29TWA | Jun/Jul 2012
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”
30 TWA | Jun/Jul 2012
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
31TWA | Jun/Jul 2012
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has not necessarily resulted in being the best business
choice. A special-purpose vehicle is to be created. The BEE
stake in the vehicle will be ring-fenced and housed in the
National Empowerment Fund. Within 12 months of 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.
33TWA | Jun/Jul 2012
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
34 TWA | Jun/Jul 2012
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
35TWA | Jun/Jul 2012
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
36 TWA | Jun/Jul 2012
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
37TWA | Jun/Jul 2012
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
38 TWA | Jun/Jul 2012
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...
39TWA | Jun/Jul 2012
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!
40 TWA | Jun/Jul 2012
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