focus march 2015

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On TranspOrT and LOgisTicsfocusontransport.co.za

Fixing Africa’s borders a group effort

Coping with congestion in Cape Town

No getting away from the skills shortage?

Global Focus turns 100!

Using the sUn to bUild yoUr

Man

www.focusontransport.co.za

??????????

d |FOCUS| March 2015

March 2015 |FOCUS| 1

www.udtrucks.co.za

www.facebook.com/udtrucks

https://twitter.com/udtruckssa

mailto:[email protected]?

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2 |FOCUS| March 2015

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cOnTenTs

Follow us facebook.com/focus_mag twitter @FOCUSmagSA

2014

On TranspOrT and LOgisTics

MAN has been assembling trucks and buses at its Pinetown Assembly Plant since 1962. Today the plant is 100-percent carbon neutral. Find out how the company has achieved this on page 10.

COveR

Published monthly by Charmont GlobalUnit 17, Northcliff Office Park, 203 Beyers Naude Drive,

Northcliff, 2195. P O Box 957, Fontainebleau, 2032, South AfricaTel: 011 782 1070 Fax: 011 782 1073 /0360

eDITORCharleen Clarke

Cell: 083 601 0568email: [email protected]

ASSISTAnT eDITORGavin Myers

Cell: 072 877 1605 email: [email protected]

SUB-eDITORJeanette Lamont


JOURnALISTSJaco de Klerk


Claire RenckenCell: 082 559 8417

email: [email protected]

InDUSTRY CORReSPOnDenTFrank Beeton

Tel: 011 483 1421Cell: 082 602 1004


TeCHnICAL CORReSPOnDenTVic Oliver


PUBLISHeRTina Monteiro


ADveRTISInG SALeSMargaret PhillipsonCell: 083 263 0451


Megan du ToitCell: 060 503 3092


CIRCULATIOn MAnAGeRBev Rogers


DeSIGn AnD LAYOUTNelio da Silva


PRInTInGCamera Press

© Copyright. No articles or photographs may be reproduced, in whole or in part, without specific written permission from

the editor.

4 Steering Column 6 Wheel Nut 8 Vic’s View46 Global Focus52 Short Hauls56 Subscription form58 Naamsa figures59 FOCUS on Bus and Coach62 Global bus64 Hopping off

ReGULARS

24 BURnInG BORDeRS?

Road transport within Africa is no doubt a risky business. With wasted time, incidents of

corruption and lost loads and vehicles, it’s expensive, too. One of the ways we can begin

fighting this is to sort out the situation at the continent’s many borders. How can this be

achieved?

34 WAnTeD: MORe SKILLeD PeRSOnneL

Skills shortages continue to bedevil the logistics and supply chain industry. MARIO

LANDMAN, head of the Institute of Logistics and Supply Chain Management, elaborates.

42 THe THRILLS AnD SPILLS OF DAKAR 2015

GIANENRICO GRIFFINI brings us an exclusive interview with Ayrat Mardeev of the Kamaz

Master Team – winners of Dakar 2015.

44 BUSIneSS AnD PLeASURe

Chinese Manufacturer Great Wall Motors (GWM) is set to create a stir in the much-loved

South African bakkie segment with the new Steed 5E. We take it for a spin.

60 CHAnGInG TIMeS

With increased congestion levels and heightened commuter needs, Cape Town is

certainly in the transport spotlight. We speak to one of the city’s most prominent

operators, to see how it is handling the scenario.

MARCH

c h a r m o n tm e d i a g l o b a l

42

38

62

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https://twitter.com/FOCUSmagSA

https://twitter.com/FOCUSmagSA


I know what you’re thinking: the population

of New Zealand – at 4,5 million – is far lower.

Spot on right. We have 53 million people

living here. So, multiply the New Zealand

death toll by 11,7 … and we still shouldn’t be

killing more than 199 people. Our situation is

totally unacceptable!

Hot on the heels of the e-mail from

New Zealand came another one from the

United Kingdom, which also got me thinking.

The United Kingdom is home to around 64

million people. The Department of Transport

over there recently released its annual road

safety statistics … and there were 1 711

deaths in the year ending September 2014,

a four percent increase compared with the

previous year.

The e-mail came from the Institute of

Advanced Motorists (IAM), which described

the figures as “hugely disappointing”. The

charity blames many years of government

cutbacks and the resulting drop in visible

policing for the increase in figures.

“It is disappointing that, after many years

of solid falls in the numbers of people killed

and injured on our roads, the government has

taken its eye off the ball. These figures reflect

our view that cuts in visible policing and road

safety spending has had an impact, with a

third successive quarter of increases. While

these new figures can in no way be regarded

as a trend, they are a big concern,” noted Neil

Greig, IAM director of policy and research.

“Recent transport ministers have been

lucky. The recession had slowed traffic

growth. New car technology has delivered

safer roads year on year, and most accident

black spots have now been engineered out of

existence,” he added.

Neil stressed that a change in driver

attitude had to happen. “This is an opportunity

for us to prove the key underlying part that

driver skills and behaviour play in road safety.

Most crashes are caused by human error,

i recently received a somewhat

fascinating e-mail from New Zealand.

It came from John de Pont, president

of the International Forum for Road

Transport Technology. He was commenting

on the road fatalities in that country over the

2014 festive season.

A total of 17 people were killed in that

country over the Christmas season – and

he was aghast, because it was more than

double that of the previous year (when seven

people died). “Something is going badly wrong

with road safety,” he reported.

The e-mail really got me thinking. Compare

these figures to South Africa. A total of

1 368 people were killed here over the same

period last year. I think we should be aghast

too, but I’m not seeing too many aghast

people running around and fixing this sorry

situation.

and technology can only deliver so much. If

we don’t change policy we will still be killing

1 000 people a year in 2030 – that is

unacceptable. Driver behaviour, skills and

training will be the key focus for our future

research and policy work.”

It was the annual figure of 1 000 that

really hit home. We kill more than 1 000 a

month. And that’s a slow month … |FOCUS

This country’s claims to fame

are somewhat alarming. We

seem to have mastered the art

of destroying our country and its

people …

STeeRInGCOLUMn

And so

continUes …The kiLLing

DOWnLOAD OUR FAB neW APP!

FOCUS has an utterly marvellous,

truly brilliant, mind-blowingly terrific

new app! (Yes, you get it, I am rather

proud of it.) It is ever so easy to

navigate and it contains oodles of

useful information. For instance, you

can read current feature stories

and regular columns from the

magazine. You can download an

e-book, meaning you can read the

entire magazine off line! Our app

also links you to bits and pieces

such as our Facebook pages, recent

Tweets, videos … and much, much

more.

We have received stunning

feedback on our app. Let me know

what YOU think about

it! E-mail charleen@

focusontransport.co.za

Charleen Clarke


STeeRInGCOLUMn

The kiLLing

Filename 113942 Scania SA You're Not Buying This_Truck Ad v7

www.rla.co.ukSize (hxw) 297x210 Operator RobPage No. 1 Modified 19 December 2014 11:26 AM

What you’re buying is so much more than a truck. It’s a

commitment. A partnership.

A whole system designed and built around the working life

of a vehicle. Founded on the principle that Total Operating

Costs are more important than initial purchase costs.

Fuel, as we all know, is the big one. A significant part of the

Total Operating Cost over a truck’s lifetime. So it makes

more sense to buy an economical truck than a cheap one.

Which is why we make economical trucks. Not cheap ones.

Reliability is a huge deal as well. So you won’t be surprised

to hear that Scania trucks deliver the highest levels of

uptime in Southern Africa, and our wholly-owned dealer

network focuses all its energy on minimising downtime.

Driver capability is another big cost area, which our driver

training programmes are tailored to help you manage

and develop. The same goes for our finance and

insurance approach. We believe in understanding the

daily needs of your business, rather than just looking

at the risk.

Also our new Fleet Management System is the perfect

embodiment of our partnership attitude, giving you access

to amazing detail on everything from coasting to heavy

braking, and then the coaching support you need to help

manage not just your fleet, but your entire cost base.

So if you’re just buying trucks, we’re probably not the

supplier for you. But if you believe what you’re actually

buying is a partnership, a commitment, a total transport

solution, then we should talk.

There is a better way.

You’re not buying this.

www.scania.co.za


WHeeLnUT

administrative procedure”, either. Unless, that is,

they work for everyone’s favourite bureaucratic

institution – the South African Revenue Service

(SARS).

So, why this little rant-cum-English-cum-

politics lesson? Regular readers will remember

my December column, in which I detailed the

demise of my three personal vehicles. Well, I

bought a new one at the beginning of this year –

which resulted in one of the most stressful two

weeks I’ve had in a long time.

“Mr Myers, we can’t get the vehicle

registered in your name, because of outstanding

vehicle licence fees.” Well, that was a shock –

with one car traded in, one sold and the last

written off, how could this be?

It turned out that the chap who bought

the one I sold had not filled in the change of

ownership papers and registered it in his name

(important lesson there for prospective sellers –

always make sure that YOU do this).

A week-long scramble ensued to get

everything sorted out, only to be told that I

couldn’t do much because the car that had

been written off, three months earlier, had

not yet been deregistered from my name by

the insurance company (which had long since

received the original licence certificate).

Four visits to the bureaucrats at

Johannesburg’s Marlborough and Sandton

licensing departments (who each kindly filled

in the pieces of information that the other

had neglected to mention …) and many a

call through the various bureaucratic levels of

my insurance company later, and I was well

and truly stuck … The morning my 21-day

temporary permit was to expire arrived, and I

had got nowhere.

In a desperate bid to get my new steed

“road legal” I begrudgingly paid the outstanding

amounts and the penalty fees, and now sit with

two gleaming licence disks for two vehicles

I no longer own … Phase two of my battle

commences.

Bureaucracy: great by definition, but a

real pain for the masses; especially when the

bureaucrats who drive it don’t do their jobs

properly. |FOCUS

Does anyone enjoy dealing with

government institutions or their

corporate brethren? I can’t

imagine so …

the perils of

bureaucracy

Gavin Myers

We’ve all watched some or

other TV show in which

someone in high office, or

a similar organisation, is

accused of being “a spineless bureaucrat” or “a

bureaucratic fool”.

But, what is a bureaucrat? Should we be

bureaucratic? Do we need bureaucracy? Here’s

a short English-cum-politics lesson …

By Wikipedia’s definition, a bureaucracy

was historically a government administration

managed by departments staffed with officials

who have not been elected. Today, bureaucracy

is the administrative system governing any large

institution. Likewise, a bureaucrat is defined as

an official who is rigidly devoted to the details of

administrative procedure.

The thing is, though, bureaucracies tend

to become too complex and then inefficient

or inflexible – hence the slurs directed

towards those poor chaps in the TV shows

… Unfortunately, that’s the nature of the

bureaucratic beast – it’s certainly nothing South

Africans are unused to.

Pick any vehicle licensing centre, for instance.

Heck, in the modern sense of the word, pick

a large non-governmental institution, like an

insurance company, and see if you have much

more luck … The bureaucrats themselves are

not exactly “rigidly devoted to the details of

MORe ROAD SAFeTY BILLBOARDSFollowing last month’s Wheel Nut – in

which I spoke about a Department of

Transport billboard that warns against

texting and driving – I noticed yet another

effort on Johannesburg’s Beyers Naude

drive, just down the road from our office.

Its message? “Thank you for not

drinking and driving – love Grandma &

Grandpa”.

As opposed to playing at one’s ego

(like the texting and driving message), this

one pulls at the (presumably younger)

motorist’s heart strings. Short of being

read by someone who has lost a loved

one to drinking and driving, I’m not so sure

of the effectiveness of the message …

Unfortunately, that blinding, consequence-

free “it’ll never happen to me” attitude is

seemingly set as the default within the

general South African driver’s psyche.

What do you think? Have you seen any

similar billboards around Johannesburg

(or the country)? We all have family,

friends and colleagues, not necessarily

involved in the transport industry, who

use our roads every day; so, do send us

pics and your comments about this road

safety campaign.

We know it takes a lot more than wheels and a chassis to keep things moving forward.

It takes a clear understanding of how your business operates. It takes expertly trained

people who care about providing the best advice and the best service possible.

Hino prides itself on delivering cost-effectiveness and operational effi ciency. It’s why

every Hino is built for your business.

– SO NO MATTER WHAT YOUR BUSINESS, YOU CAN KEEP ON TRUCKING.

1000

5382

JB/

JHB/E

??????????????


We know it takes a lot more than wheels and a chassis to keep things moving forward.

It takes a clear understanding of how your business operates. It takes expertly trained

people who care about providing the best advice and the best service possible.

Hino prides itself on delivering cost-effectiveness and operational effi ciency. It’s why

every Hino is built for your business.

– SO NO MATTER WHAT YOUR BUSINESS, YOU CAN KEEP ON TRUCKING.

1000

5382

JB/

JHB/E

www.hino.co.za


vIC’SvIeW

With a sluggish world

economy, that is showing

no positive signs of

recovery in the short

term, truck and bus operators are facing

tough times and reduced operating profits.

Optimising the fuel consumption of your fleet

is one way to reduce operating costs and

increase fuel economy.

A small reduction in fuel consumption

results in a big financial saving in the fuel bill.

In addition to savings achieved by managing

your vehicles’ fuel consumption, other variable

operating costs will automatically also be

reduced – as optimum fuel consumption

cannot be achieved without driving the vehicle

in a proper, professional manner. The gain is

further reflected in reduced maintenance and

tyre costs.

Good driving techniques are one of the

main means of lowering the fuel consumption

of vehicles. It is important, therefore, to include

drivers in the management of fuel.

One of the best ways to motivate and

encourage drivers, to achieve good fuel

consumption results, is to give them an

incentive based on the savings achieved

against a set fuel consumption target.

To set a realistic and fair target, get the

average expected fuel consumption figure

from your vehicle supplier for your particular

vehicle. Then, measure the fuel consumption

that the vehicle is currently achieving by

running it on the normal route that it travels

and accurately record the consumption. On

this test run make sure that an independent

and honest person accompanies the driver to

ensure that the information is correct.

Now, set a realistic and achievable fuel

consumption target for your driver and offer

some reward based on the savings that are

made.

To assist drivers to obtain good fuel

consumption, make them aware of the

main driving style factors that affect fuel

consumption.

SPeeD

Travelling in excess of the current speed

limit drastically increases fuel usage of

trucks and buses. To illustrate the increase

in fuel consumption at higher speeds, the

following consumption figures for a 357 kW

(480 hp) truck tractor coupled to a set

of interlink trailers and carrying a load of

34 t, both ways, between Johannesburg

and Durban, were supplied courtesy of

TransSolve:

• At 80 km/h the fuel consumption would be

57,5 l/100 km

• At 100 km/h the fuel consumption would be

61,1 l/100 km.

exCeSSIve IDLInG Many vehicles that are used in a distribution

type of operation, where fleet management is

often not well controlled, idle for long periods.

This poor practice is bad for the engine, and

causes fuel wastage.

A poorly maintained brake system, where

air is lost via faulty brake valves, is sometimes

the reason that drivers do not switch off

their engines while stopping to offload. This is

because they know that on start-up they will

have to run the engine for a while to build up

air brake pressure again.

DRIvInG OUTSIDe THe GReen BAnD

Most trucks are fitted with a rev counter

that is marked with a green band, indicating

the most economical rev range. Driving

Even with the fuel prices trending downwards, there is still more that vehicle owners can do to reduce

fuel consumption and increase their profit margin

twelve tAnked-Up

Tips


VIC’SVIEWvIC’SvIeW

within this green band produces the best

fuel consumption and helps the driver obtain

optimum performance from the engine.

SMOOTH DRIvInG Gentle acceleration and smooth driving is a

key factor in reducing fuel usage. Anticipation

of stopping distances and letting the truck roll

towards a stop avoids harsh brake applications

and also helps save fuel.

OveRLOADInG

Overloading is illegal and also increases fuel

consumption. Assist your drivers by teaching

them the correct load that their vehicle can

legally carry, and the importance of placing the

load in the correct position on the truck.

TYReS Underinflated tyres cause an increase in

rolling resistance, which, in turn, affects the

fuel consumption of the vehicle. As a rule of

thumb, a ten percent under-inflation in tyre

pressure results in a one percent increase in

fuel consumption.

POOR veHICLe MAInTenAnCe Poor vehicle maintenance is a major cause of

high fuel consumption.

TARPAULInS Loose and badly secured loads and tarpaulin

covers cause extra air resistance, which, in

turn, burns more fuel.

FUeL THeFT Fuel theft is taking place in many operations. In

those where fuel consumption is well monitored

it is very difficult for this to occur undetected.

AIR ReSISTAnCe

Air resistance is an important factor.

Endeavour to keep frontal areas of trailers

and bodies as small as possible.

CORReCT veHICLe SeLeCTIOn The truck must be correctly engineered, have

sufficient power and the right drivetrain to

ensure the best possible productivity and fuel

consumption.

ROUTe PLAnnInGPlan your route carefully to achieve optimum

vehicle productivity and fuel consumption.

With the high cost of operating trucks and

buses, in a highly competitive market, fuel costs

are one of the major costs incurred in the

running of your vehicle. In some long-distance

operations the cost of fuel exceeds other fixed

and variable costs. A good operator cannot

afford to neglect the management and control

of this important cost element. |FOCUS

One of this country’s most respected commercial vehicle industry authorities, VIC OLIVER has been in this industry for over 50 years. Before joining the FOCUS team, he spent 15 years with Nissan Diesel (now UD Trucks), 11 years with Busaf and seven years with International. Do you have a comment or thought you would like to share based on this column? Visit www.focusontransport.co.za and have your say!

Venue: Automechanika, Nasrec, JohannesburgTime: 10.30 for 11:00Price: R1 400 per person including lunch, or pay

R10 000 for a table for eightTRUCK TEST2015

ON TRANSPORT AND LOGISTICS

The potholed path to the future: how can transport operators survive?

New legislation is in place: how can transport operators avoid jail time?

Join the FOCUS Conference and Truck Test Lunch on

Friday, May 8, and get the answers to these questions!

We have a line-up of utterly exceptional speakers,

including: Riaz Haffejee, CEO of Sumitomo Rubber SA;

Paul Nordengen, Research Group Leader, Network

Asset Management Systems, CSIR Built Environment;

Adrian van Tonder, Senior Manager, RTMS and PBS,

Barloworld Transport; and Loan Sharp, economist,

Free Market Foundation (FMF).


COveRSTORY

any reputable company will tell

you that, to be taken seriously

and be able to offer consistent

levels of service and quality, all

aspects of the organisation must be aligned

to the same level of consciousness. This

is especially so, in these times of ultra-

competitive marketplaces and the raised

importance of safety, health, environmental

and quality (SHEQ) issues.

It’s for this reason that the MAN Truck &

Bus South Africa Pinetown Assembly Plant

has become the most recent of the company’s

global plants to take the lead and improve its

environmental situation. It is now 100-percent

energy independent and 100-percent CO2

neutral.

How has MAN managed such a feat with

the 53-year-old facility? It has been achieved by

installing photovoltaic (PV) solar panels.

Heiko Kayser, plant manager and

vice president of truck and bus chassis

production at MAN Truck & Bus SA, explains

the concept: “We are part of the MAN

worldwide production network, so we need

to align our processes to other plants and

follow worldwide standards. The PV solar

panels are part of our Green Production

initiative, to reduce energy consumption and

CO2 emissions.”

“One of the MAN Climate Strategy

objectives is to reduce the company’s

carbon footprint by 25 percent by 2020. The

successful implementation of the PV solar

project is a reflection of MAN’s commitment

to environmental responsibility,” adds Lynette

Kühn, quality assurance manager, MAN Truck

& Bus SA.

Kayser continues: “The different solutions

are tailored to the areas in which the plants

are located. In South Africa, for example,

there is a lot of wind and sun, so the PV solar

system is the most efficient for us.”

MAN decided on this system following a

feasibility study conducted in 2013, which

included a market analysis and business case.

The energy generated by the PV solar panels

is used to drive all production processes and

electrical equipment such as computers and

lights.

With current production volumes being

ten units on the single shift being run at the

moment (the plant’s installed capacity over

two shifts is 6 600 units per annum), there is

the guarantee of a surplus.

Kayser and Kühn explain: “We generate

810 000 kWh per annum, and our current

consumption is only 790 000 kWh. The PV

installation is an embedded installation –

linked to the grid – so anything we produce

over and above our needs is fed back into

the grid. The system prioritises the use of

the available renewable energy provided by

the PV system at all times; should additional

capacity be required, this energy will then be

drawn from the grid.”

While the PV installation might be the

biggest news at the moment, it’s not the

end of the environmentally friendly, quality-

focussed story from whence your locally built

MAN comes …

The building’s old asbestos roofing has

been removed and replaced with inverted box

rib (IBR) sheeting, which also incorporates

more transparent sheets to improve natural

light in the working environment resulting in

less energy usage for lighting.

A new wash bay has been built that

incorporates a water recycling facility to

reduce water consumption, and a new

worker-friendly finishing spray booth was

installed during December 2014, to ensure

controlled levels of paint emissions into the

atmosphere.

As Keiser is keen to point out, though, it’s

not all about impressive technical solutions.

“As management we try to lead by example,

educating staff and increasing their awareness

to reduce energy usage.

“Do you need a light on? Have you switched

off your tools when you’re done using them?

It’s about understanding. It is the responsibility

of MAN as well as all of its employees. We

have to start now in order to support our next

generation.”

In this world of smoggy cities, sky-

rocketing prices and dwindling resources,

we couldn’t have said it any better

ourselves. |FOCUS

The MAN Pinetown assembly plant produces variants of the company’s low, medium and heavy range

truck and bus chassis to global standards. It now also leads the way as one of the company’s most

energy-efficient plants in the world

MiniMUM energy, MAxiMUM

prOducTiOn


Bridgestone South Africa announces changes to its commercial tyre operations.

Sales and distribution of all new and retreaded truck, bus and earth

mover tyres will be spearheaded by a newly- formed company within

the Bridgestone Group, Bridgestone South Africa Commercial (Pty)

Ltd. Part of the change is the introduction of accrediting selected

Supa Quick branches as Bridgestone Commercial accredited

dealers. Allowing customers to access Bridgestone Commercial

products through Bridgestone Commercial service centres or

accredited Supa Quick dealers.

Available at selected Supa Quick outlets

Tel: 011 387 2000 www.bridgestone.co.za

Sales and distribution of all new and retreaded truck, bus and earth

mover tyres will be spearheaded by a newly- formed company within

the Bridgestone Group, Bridgestone South Africa Commercial (Pty)

Ltd. Part of the change is the introduction of accrediting selected

Supa Quick branches as Bridgestone Commercial accredited

dealers. Allowing customers to access Bridgestone Commercial

products through Bridgestone Commercial service centres or

DWFC

OL 51

8530

www.bridgestone.co.za


TRUCK TEST2015

hino has been involved with

each of the Truck Test events

to date. “We have learned

many valuable lessons and

gained lots of experience in the process. We

are now even more positive about the event

than we were in 2012, when it was held for

the first time,” says Gert Agenbag, product

planning and development manager at Hino

South Africa.

Adrian van Tonder, a senior manager

at Barloworld Transport, has also been

involved with the event since its inception.

He has the following to say: “Over the years

we have never had any major hiccups, but

we have learnt a lot about putting together a

truck test that has credibility. Every time we

start planning the next test, we immediately

apply what we have learnt from the previous

year, and we try to keep it as simple as

possible.

“This year we are going to be testing

extra-heavy truck tractors and that’s

always exciting. We have some great

vehicles participating and we have

managed to standardise all the trailing

equipment for both categories this year.

This will, therefore, be the first time that

it will be a true performance test of the

truck tractors.

“Extra-heavy commercial vehicles are

the lifeline of road transport between all the

major hubs in South Africa. Understanding

the performance of these vehicles and the

cost of ownership numbers are key factors

in ensuring that the correct vehicles are

selected for the correct applications.”

For others, this year’s event is a first.

This is the case for Alcoa South Africa.

it’s the finAl

cOunTdOWn

With Truck Test

2015 little more than a

month away, the excitement

is palpable. CLAIRE RENCKEN

talks to some of the participants and

suppliers about what lies ahead

ONBOARD TYRE INFLATION

On TranspOrT and LOgisTics

www.htm.co.za

www.engen.co.za

www.ctrack.com/za/

http://www.entry.man.eu/za/en/index.html

www.udtrucks.com/en-za/home

www.volvotrucks.com/trucks/south-africa-market/en-za/

www.tracn4.co.za

www.wabco.co.za

www.freightliner.co.za

www.iveco.com/southafrica

www.barloworld-logistics.com

www.bpw.co.za

www.loadtech.co.za

www.bridgestone.co.za

www.phoenixrisk.co.za

www.focusontransport.co.za


MD, John Jewiss, says: “For Alcoa, this

is a great platform to give fleets and

original equipment manufacturers (OEMs)

a true, unbiased reflection of day-to-day

measurable aspects that impact the

transport industry.

“Alcoa wheels can save up to

255 kg on an extra-heavy truck (just over

23,5 kg per wheel compared to steel)

so on a full rig of 26 wheels, you can,

theoretically, increase your payload by

611 kg. Since the extra-heavy commercial

vehicle segment is the only one we sell

into in South Africa, this year’s event is of

paramount importance to us.”

Hino will be entering two vehicles in the

test this year. Agenbag explains: “First, the

Hino 700 Pro 229 2845 steel suspension

with single sleeper cab will be combined

with the three-axle trailer at a 49-t gross

combination mass (GCM). Our goal is to

achieve good fuel consumption with this

combination.

“Second, the Hino 700 Pro 229 2848

air suspension with double sleeper cab will

tow the interlink combination trailer at a

56-t GCM rating. With this combination,

we hope to achieve a good productivity

figure.”

Van Tonder concludes: “This year

we have selected a very interesting and

challenging route, so I cannot wait to see

how the trucks perform. It’s also great to

be part of the team spirit that comes to

the fore between all the participants at

Truck Test. For the rest of the year they are

fierce competitors in the marketplace, but,

at Truck Test, the guys work well together

and have some fun while doing it.” |FOCUS

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The first Truck Test, in 2012, featured extra-heavy vehicles – which make a triumphant return this year.

www.aerotruck.co.za

http://www.mercedes-benz.co.za/content/south_africa/mpc/mpc_south_africa_website/en/home_mpc/truck_home/home/trucks.html

www.renault-trucks.co.za/renault-trucks-south-africa

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TRUCK TeST2015

according to Enoch Silcock, MD

of WABCO Automotive South

Africa, around 40 percent of

the braking systems supplied

by the company go to original equipment

manufacturers of trailers, meaning the

company has a very good relationship with

its industry counterparts. It is, therefore,

supplying braking systems to GRW for the

trailers being built for Truck Test 2015.

“We’ve dealt with GRW right from the

beginning,” he says, explaining that WABCO

has been participating in the South African

market for more than 45 years. “We’ve

always had a very good relationship. GRW’s

customers look for high-spec, world-class

brake systems, so we offer them the

technology they’re looking for.”

In the case of the trailers being built

for Truck Test 2015, Silcock explains that

the company’s standard anti-lock braking

system (ABS) drum brake system has

been chosen for the task. “Only around

ten percent of the market currently

has disk brakes, so GRW has chosen

the most widely used system, as these

trailers are being built for benchmarking

purposes. This is our base braking system.

It meets South African Bureau of Standards

(SABS) and international standards for

braking, aiding stability and shortening

stopping distances by preventing lock-ups.”

Currently, the law states that all new

trucks and trailers have to be equipped with

ABS.

The ABS does offer some very important

benefits, even though it may not be the most

sophisticated offering in WABCO’s portfolio

(for that you’d have to look to the company’s

configurable Electronic Braking System (EBS),

which is rapidly gaining market share thanks

to the slew of advanced safety adaptations it

offers).

The ABS has been kept basic so that

nothing can confuse a maintenance team,

yet the solenoid technology used in the

system gives faster braking response. One

can run diagnostics on the system to check

The Truck Test series wouldn’t be possible without the support of all those involved – including the

individual component suppliers, such as WABCO, which is supplying GRW with trailer braking systems.

GAVIN MYERS reports

the MoUldbraking


TRUCK TeST2015

information such as the ABS function and

system component integrity, but additional

functions, such as a configurable input output

(I/O) plug, have been removed.

“WABCO has actually designed this

particular system around third-world markets,

such as South Africa and Brazil. We’ve been

running this technology locally for over a year

now; overseas they’ve had it for over ten years.

This system is tried and tested,” says Silcock.

As this is WABCO’s first association with

the Truck Test series, Silcock is keen to use

the opportunity to demonstrate the company’s

involvement and interest in the event. A

WABCO support team will run with the trucks

to Komatipoort and back, and the company’s

Middleburg and Nelspruit distributors will also

be on standby if needed. “Ultimately there’s

GRW’s backup as well, but I’m confident there

will be no problems,” he says with intent.

Generally speaking, the company

undertakes a more technical support role,

rather than field support. “We’ll recommend

one of our 41 sub-Saharan African

distributors or service centres – which are

graded according to their capabilities. We

focus our support mainly on the trailer side

of the industry, because that seems to be

where the skills are lacking.”

While the company will be interested to

see how well its systems perform on the

road, Silcock explains that to really test a

braking system there needs to be sustained

testing with a fleet. He says that the company

has done this numerous times in the past,

demonstrating differences in the frequency of

breakdowns and lining life, for example.

“If we can guarantee such high-quality

systems, our clients see that it is worth

paying a bit more initially, rather than replacing

systems three or four times in the same

timeframe.

“We’ve had very few comebacks with our

ABS units. In South Africa, systems come back

as a result of bad maintenance, not factory

faults … We offer a one-year warranty on all

our systems, and on the ABS used in Truck

Test 2015. We are happy to give extended

warranties on the components, because we

know they work,” he enthuses.

In this vein, Silcock explains that operators

are becoming more savvy: “We have to change

as the market develops, but ten years from

now the whole market will probably be running

EBS. Operators are looking beyond the initial

cost of a vehicle to the full cost of ownership.”

Happily, the industry’s savvy operators will

also be looking at Truck Test 2015, and will no

doubt be impressed by WABCO’s enthusiastic

involvement. |FOCUS

Left: The ABS unit is one of WABCO’s most tried and tested offerings.


TRUCK TeST2015

competitively light. The air suspensions are

lightweight, but we’ve brought the heaviest

version of them here to South Africa, in order

to compensate for the local road conditions.

Our products are tried and tested. They have

been on the market for ten years with slight

upgrades (all for the better) here and there.

Most importantly, they have been adapted to

suit South African conditions.”

He adds that BPW is selective about

which new products it brings in to South

Africa, as ours is a market that is traditionally

resistant to change.

“This year’s Truck Test is of huge interest

to us, because it targets the extra-heavy

commercial vehicle segment of the market,

which is where we sell most of our products.

We know that the 16 trailers that have been

fitted with BPW axles and suspensions will

be sold after the event. We intend to keep

track of who buys each trailer, and cultivate

relationships with those transporters, in

order to provide them with the best after-

sales support possible.

“We strive to be system partners with

trailer builders, as well as being mobility

partners with our end users. That is why

our company slogan is ‘We think transport’,”

Cilliers concludes.

One thing is for sure, BPW is here to stay.

The company has managed to steadily grow

its market share over the past 15 years, even

during the economic crisis. Clearly, it intends

to continue doing so – the company’s new

interactive website is just one example of how

it is staying ahead of the game. |FOCUS

This year, BPW has jumped in axles and all, as one of the Truck Test suppliers to nine Afrit and seven

GRW trailers. CLAIRE RENCKEN gets the inside track from BPW managing director, André Cilliers

bpw thinks

TranspOrT

“We strive to be system partners with trailer builders, as well as being mobility partners

with our end users. That is why our company slogan is ‘We think transport’.”

“The Truck Test is a good

marketing opportunity

for us. It also gives us

the chance to show

the industry our intent to support the

market with our product,” begins Cilliers.

“BPW has been in the country since 1945

– we are not a fly-by-night company. We

focus heavily on after-sales service and

product support.

“In addition, one of our biggest selling

points is low cost of ownership, because,

even though our products may cost a little

more initially, they last longer and result in

lower maintenance costs in the long run.

We need to communicate this philosophy

to our end users – the transporters. Truck

Test provides us with an ideal platform to do

just that.”

The products that will be used on certain

trailers during the test are from BPW’s

standard product line – the ECO Plus

range of rigid axles and the Airlight II air

suspensions.

Cilliers explains: “The rigid axles are rugged,

have an extremely high load capacity and are

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TRUCK TeST2015

says Meyer: “This is the first

Truck Test event in which

Freightliner will partake. Other

Daimler truck brands have

entered into other past events, however, and

performed very well.” He adds that Daimler

Trucks takes each and every opportunity

to demonstrate why it is one of the world’s

leading truck manufacturers.

“In order to do this, we participate in

events such as FOCUS on Transport’s

Truck Test,” Meyer points out. “This is where

commercial vehicles, such as our Freightliner

Argosy Cummins 500, are tested under

genuine road conditions that they have to

endure on a regular basis.”

This is the vehicle (Freightliner’s best-

selling model) which will be put through

its paces in this year’s event. Truck Test

2015 features extra-heavy commercial

vehicles and this is the only segment

in which the brand competes. “We are

very eager to demonstrate the abilities

of our product,” says Meyer. “This is

also a chance for us to publicise our

value-chain offerings, namely; FleetBoard,

CharterWay, Mercedes-Benz Financial

Services and TruckStore.”

FleetBoard is Daimler’s well-known

telematics service that increases fleet

efficiency. With a FleetBoard unit onboard,

one can monitor the performance of both

truck and driver from wherever you are, at

any time.

Available remotely on a PC, smartphone

or tablet, this data can be used to analyse

and optimise the efficiency of an entire fleet.

“The savings are dramatic as a fleet’s fuel bill

and maintenance costs can be reduced by

15 percent,” says Meyer.

“Truck Test 2015 is the perfect platform

for us to showcase the benefits of our

FleetBoard Professional Driver Training

programme,” Meyer points out. “A thoroughly

trained driver can mean an increased bottom

line for an operator, and, more importantly,

safer roads for all users.”

He adds that driver training and skills

development play critical roles in the effective

management of any fleet. “FleetBoard offers

tailored courses and training to achieve this

goal, resulting in the optimal utilisation of the

vehicle and improved efficiency.”

CharterWay – a set of vehicle leasing,

maintenance and servicing products modelled

specifically for the fleet owner – enables

the company to combine Mercedes-Benz

Financial Services and fleet management

products.

TruckStore, the specialist

used commercial vehicle

concept launched by Mercedes-

Benz South Africa in 2012,

is based on the European

model. In Europe, TruckStore

is the number-one address

for buying and selling used

commercial vehicles. Locally,

it is one of the biggest used

commercial vehicle outlets

in the southern hemisphere.

TruckStore offers a

selection of brands, ages

and types of vehicles – all

classified as Gold, Silver or

Bronze according to clearly

defined TruckStore standards.

This classification serves as

a reliable confirmation of the

age, condition, mileage and

service component of the

vehicle. The company also

offers an extensive range of

services for used commercial

Truck Test 2015 is nearly upon us. The vehicles will set off on April 15 for the fourth instalment of this

informative event. We talk to Dirk Meyer, brand leader Freightliner Trucks South Africa, for the scoop on

the goals and expectations of this newcomer to Truck Test

pUt to the

TesT


TRUCK TeST2015

vehicles such as finance, insurance and

warranties.

The most important part of Truck

Test 2015, however, is the opportunity it

presents to demonstrate the performance

of the Freightliner Argosy in a real-life and

standardised environment – Meyer points

out. “The results will assist truck operators

when making critical buying decisions.”

He continues: “We are very close to our

existing customers and constantly work on

improving the performance of their vehicles.

This test will allow us the opportunity to

evaluate these improvements.”

Meyer tells FOCUS that Truck Test is

also an opportunity for the company to get

feedback about the conditions in which its

drivers operate, as they spend a lot of time

behind the wheel. “As comfortable and user-

friendly as our cabs are, we are always

looking for other ways to innovate further and

to continue to be leaders.”

He adds that the test will also demonstrate

just how frugal the brand’s engines are, while

providing the necessary power for varying

loads and distances. “Apart from achieving

exceptional fuel consumption, we are certain

that the low tare weight of our product will

help to achieve a high productivity factor,”

says Meyer.

“Venturing into the unknown is what

we are most excited about, however, as

this is the first time that Freightliner will be

competing in the Truck Test event,” Meyer

tells FOCUS. “The trucking industry is a

competitive one, where the demands and

requirements are often highly complex and

require solutions that are geared towards

vastly improving efficiency, while reducing

costs …

“Freightliner has a proven product

in the market, but it will be very

interesting to see how the results

compare to the performance

figures we have built up over the

years.” |FOCUS


What sort of participation

will Engen have in the

test this year and which

Engen garages will be

used?

At the moment we will sponsor the fuel. The

test is planned to start from Super Park (the

head office of Super Group) in Isando. We’ll

use the Belfast One Stop on the N4 (on both

legs) for brunch, with Lebombo Truck Stop

at Komatipoort being used as the overnight

parking facility and for refuelling between the

two legs of the trip.

What are the Truck Stop/One Stop

managers’ thoughts regarding the test?

Retail highway sites, such as Belfast Engen

1 Stop and Lebombo Engen Truck Stop,

rely heavily on the service levels that they

provide (including secure parking facilities,

food offerings, competitive fuel pricing,

and so on) to attract business on to their

forecourts. “Word of mouth” references

are very important in their endeavours and

Truck Test 2015 allows these Engen sites

to showcase their hospitality and facilities to

the transport industry.

Their prompt and positive responses when

we approached them to become involved,

clearly demonstrates their commitment to

the truckers travelling on the N4.

What value does Engen see in the Truck

Test programme?

By far the biggest value that Truck Test

offers is the information, which appears

when the results are published. This affords

transport companies a clearer picture of the

performance of the tested vehicles, under

controlled conditions, but on public roads.

This can assist them to make more informed

buying choices.

This year’s test, which will include identical

trailers and loads behind the participating

truck tractors, will provide an even more

relevant comparison of performance. It is

extremely important for Engen to be able

to demonstrate our commitment to the

transport industry (one in which Engen is the

largest supplier of fuel), by partnering with

Truck Test 2015.

What has Engen learned from its participation

in the Truck Test series over the years?

Engen has been an organising partner behind the Truck Test series since its inception. GAVIN MYERS

engages in some questions and answers with Lindsay Bassett, Engen Commercial Fuels key account

manager: transport, to understand why participation in the test is so important to the company

benefitpriceLess

TRUCK TeST2015


TRUCK TeST2015

The camaraderie between truckers and

the dedication of the original equipment

manufacturers to produce the best, safest

and most fuel-efficient vehicles possible, stand

out as features. In addition, the recognition

that Engen receives from stakeholders within

the transport industry, has confirmed how

valuable Engen’s support of the Truck Test

programme is.

Have any of your clients ever commented on

Truck Test and/or your involvement in it?

Each year, since 2012 when the Truck

Test series began, we have received

numerous positive comments from many

of our transport customers. Generally, the

sentiment is one of appreciation for Engen’s

support of what is seen by many transporters

as a true “value-add” to their businesses …

the ability to make better-informed choices

on vehicles for specific applications, due to

information gathered during the Truck Test

programme.

What do you think of the new route this

year?

The Johannesburg to Komatipoort route

is ideal for this year’s test of 6x4 truck

tractors, because of the length of the route

and the fact that it includes a variety of

road conditions, with plenty of significant

gradients. It is a route that accurately

and realistically represents typical routes

plied by 6x4 combinations, and will provide

valuable information on comparative vehicle

performance.

Engen is well represented along the N4

route and is proud to be able to showcase

two of our trucker-friendly sites.

How do you think this year’s test will differ

from the last running of 6x4s in 2012?

The slightly shorter duration and the fact that

Truck Test 2015 will not form part of another

event, such as the Road Freight Association

(RFA) Convention back in 2012, will keep the

focus very much on the performance of the

various trucks taking part.

Hopefully, the experience gained by the

organisers since 2012 will ensure an even

smoother and more enjoyable two days for

all those involved.

In addition, the planned “group braai”, at

the Komatipoort Golf Club, between the two

legs, should be a good opportunity for all the

drivers, support crews and organisers to

relax and network. Finally, the use of identical

trailers on his year’s test will, no doubt, make

the comparative performance information

even more relevant. |FOCUS Above and below: The last running of 6x4 truck tractors was in 2012, at the inaugural Truck Test series event.

??????????


TRUCK TeST2015

With over 80 percent of the

players in South Africa’s

extra-heavy commercial

vehicle segment (EHCV)

taking part in Truck Test 2015 – entering

some 16 vehicles – this will be one of the

most representative tests, ever, of what is

currently available to the market.

According to Dammann, it should also

return some neck-and-neck results. “In 2012,

we had fuel consumption and productivity

differences of up to 15 percent. This year, I

expect a difference of less than five percent

between the vehicles. The overall performance

of all the vehicles should be far more similar

than the last time we ran 6x4s in 2012.”

There are numerous reasons for this.

Dammann highlights the fact that each year

the original equipment manufacturers (OEMs)

are better prepared, as well as a unique point

relating to Truck Test 2015 – the fact that

all the gross vehicle mass (GVM) ratings and

trailers used will be identical.

“The idea of having the same trailers

and GVMs for the two categories will level

the playing field considerably. In this regard,

it’s great having AfriSam, Afrit and GRW on

board, making it much easier for the OEMs to

participate, as trailers and loads are not their

core business.

“OEMs will be making far more use of the

live tracking information provided by Ctrack,

mainly to monitor each other’s progress.

With speed playing such an important role

in the overall results, they’ll want to make

sure they’re making the right decisions,” he

continues.

This time round, the 6x4s will run from

Super Park in Jet Park, on Gauteng’s East

Rand, to Komatipoort near the Mozambique

border. The route starts at 1 700 m above

sea level, going all the way up to around

1 900 m at Belfast and then down to

160 m (almost sea level) at

Komatipoort.

“There’s also a mountain pass at

Schoemanskloof, after Machadodorp,

which will challenge even the

most experienced drivers,” adds

Dammann. “The route is also about

150 km shorter each way than

the route between Johannesburg

and Durban. This means it will

be far more manageable to do

all the travelling and refuelling

in daylight, making it less

stressful overall,” he says,

noting that the current road

works on the route should

be complete by the time the

test happens; allowing for a

clean run.

Operationally, Dammann says that

vehicles will be weighed on the TRAC N4

weighbridge near Middelburg, to double-

check the weights taken when loading them

at AfriSam. The truck tractors will also

be weighed empty so that tare masses can

be compared to the manufacturers’ specs …

“quite often a controversial point,” he says.

As is standard practice in the Truck Test

series, HTM’s TransSolve software will provide

simulations of expected vehicle performance

before the test, as well as corroborating

the final results. “We’ll probably simulate at

different speeds to see how driving technique

will affect overall performance. We want to

improve even more on our accuracy, and this

time we’d like to add in vehicle specs as well,”

notes Dammann.

In conclusion, he says: “This test is really

relevant to the local market – we’re only

testing equipment that is readily available

to customers in South Africa. There’s

nothing special that will optimise a vehicle’s

performance in the test.” |FOCUS

Martin Dammann, MD of Hellberg Transport Management

(HTM), one of organising partners of the Truck Test series,

goes through the finer details of Truck Test 2015 and

gives us his expectations for this year’s event

expectAtionsgreaT

Vic Oliver (left) and Adrian van Tonder watch closely as Dammann (right) checks the fuel level of a vehicle during Truck Test 2014.

??????????????


expectAtions

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CROSSBORDeR

africa is known for its many

intriguing cultures, mysteries

and legends; untamed jungles,

wildlife and waters; searing

heat; bloody conflicts; and relentless health

epidemics … And, among those in the

transport industry, for the overall shocking

road network and poor border operations

across its many states.

Thanks to much foreign investment, the

road infrastructure is slowly being improved

(we won’t go into the politics underlying the

subject).

Namibia’s north-south B1 highway, for

instance, has recently been in the news for

a N$ 239-million (R238,7 million) contract

awarded to Aveng Grinaker-LTA to upgrade the

stretch between Windhoek and Okahandja.

It is said to be one of the most dangerous

roads in that country and is being upgraded

to a dual carriageway. There will be two

interchanges; each with a north- and south-

bound bridge, and a service road is also being

constructed.

That’s the roads taken care of (at least

in theory), but a much bigger problem is

the border-crossing situation. It’s long been

said, by many industry players and experts,

that Africans are making cross-border trade

and growth more difficult for themselves. As

a result of the administrative, bureaucratic

and/or corruption-based red tape, it takes

far too long for vehicles to make their

way through the various checkpoints and

“roadblocks”.

This was highlighted, in November 2014,

by a tragic incident at the Kasumbalesa

border crossing, between Zambia and the

Democratic Republic of Congo (DRC). A fire

broke out when two tankers collided on the

DRC side of the border post. Gasoline from

one tanker leaked out and caught fire when it

made contact with a wood stove in a nearby

kitchen. Over 200 trucks were parked in

the area at the time, 48 of which were

subsequently burnt out. Four people died.

“It has been stated on many occasions,

that vehicles carrying dangerous goods,

when parked in congested areas at the

borders, are an accident waiting to happen.

This was referenced mainly to Beitbridge,

between South Africa and Zimbabwe.

Beitbridge has been temporarily spared

such an event, and Kasumbalesa was the

recipient instead,” said Barney Curtis, of the

Federation of East and Southern African

Road Transport Associations (Fesarta), at

the time.

“The problem remains and something has

to be done about it – either give dangerous-

goods vehicles fast clearance, or give them a

special parking area. We know that borders

are congested and space is at a premium,

but the stakes are too high to not make some

concessions,” he continued.

Following the incident, numerous

transport bodies added their opinions.

“The scale of this disaster is a wake-up call

for all of us involved in moving freight across

borders, whatever our role, and I believe

that the implications must be dealt with at

all levels. In my view, it warrants a special

Road transport within Africa is no doubt a risky business. With wasted time, incidents of corruption and

lost loads and vehicles, it’s expensive, too. One of the ways we can begin fighting this is to sort out the

situation at the continent’s many borders. GAVIN MYERS asks how this can be achieved

bUrning

bOrders?


CROSSBORDeR

meeting of corridor institutions, transporters

and border agencies, among others, to put

urgent measure in place to minimise the

risk of this kind of situation being repeated,”

notes Barbara Mommen, CEO of the Maputo

Corridor Logistics Initiative.

“The idea would be to pressure our

respective governments to stick to relevant

agreements pertaining to the transport of

dangerous goods, and to ensure proper

implementation of these agreements and

relevant legislation.

“In addition, to implement, as a matter of

urgency, special measures for the handling

of dangerous-goods vehicles at our border

posts. It is imperative, too, that the ministers of

transport of the region provide the necessary

political support to ensure that this is not

repeated ever again,” she continues.

Harold Reed, executive member of

the Transport Operators Association of

Zimbabwe, says that the streamlining of

the logistics chain needs urgent attention

by African governments. “I have made this

clear at every Southern African Development

Community (SADC) and regional meeting that

I have attended. Maybe it takes a disaster like

this, which could have been avoided, to make

governments sit up and take notice. It will be

interesting to see the outcome.”

Reed outlines some practical steps to

improve the situation: “The bottom line is that

vehicles should not stand at any place, being

a border post or a dry dock. Vehicles should

arrive and depart.

“Standing time costs money, increases

the opportunity for theft and hijacking, and,

therefore, inflates transport costs, not to

mention the lack of facilities that lead to

major health hazards for drivers and related

people.

“Border posts and dry docks should be

operated on a risk-management basis only,

not as a holding pen. There should be no

reason, whatsoever, why a vehicle departing

South Africa for the northern territories

cannot proceed directly to the offloading

point, with minimum delay, when it arrives

in that territory. With today’s modern

technology, the duties, and any other

requirements, should already be in place and

the loads pre-cleared.

“The question that should be raised is:

Are the respective clients not using the

transporters at the border posts and dry

docks as convenient mobile warehouses?

Once the goods are sold or required for

delivery, they are conveniently released. The

distributer is thus not out of pocket as far

as duties are concerned. The money is

already in the respective distributers’ bank

accounts – at the cost of the transporter

…” he notes

Both parties aim to promote dialogue and

support regarding these key issues, but red

tape is again getting in the way. Following

the fire incident, Curtis stated that an official

investigation was to be set up, and that

Fesarta would follow the matter closely and

work together with its member national road

transport associations to determine the best

way to avoid similar occurrences.

At the time of writing, the Federation

had not received any feedback. FOCUS

also approached the Cross-Border Road

Transport Association (CBRTA) for comment,

but at the time of writing had received only

promises of feedback.

We look forward to hearing back from

all parties concerned, and bringing you an

update. Our region depends on it. |FOCUS


BUDGeTRevIeW

as it does every year, Econometrix

held its 30th annual budget

conference, in Sandton, the day

after the speech was delivered.

This year’s conference was sponsored by

Business Report.

The figures that are sticking in everyone’s

minds are a one percent tax hike for all, an

overall 80,5 cents increase in fuel levies (the

general fuel levy will increase by 30,5 cents

per litre and the Road Accident Fund levy by

50 cents per litre), and an overall growth

forecast of two percent for 2015 (revised

down from an expected 2,5 percent in October

last year), which will hopefully rise gradually to

three percent by 2017.

What does all this mean? Is our country

doomed, or is there a dim light flickering at the

end of the tunnel? “The economic situation in

which South Africa finds itself is not entirely

of the country’s own making. Our economy

is very closely linked to the world economy.

With commodity prices being depressed, our

exports have been negatively affected, and,

therefore, so has the government’s revenue.

“However, what is cause for concern is that

our country’s trend of rising debt is worse than

those of other emerging economies. About 60

percent of our problems can be attributed to

domestic factors,” says Jammine.

He continues: “Even though there has been

a bit of an economic recovery after last year’s

debilitating strikes, what is worrying is that

private sector capital investment has turned

negative over the last year, due to a lack of

confidence in our economy.”

Then, there is of course the fear that

electricity outages will damage our growth

going forward. “I don’t want to overstate the

effects of load shedding. I think the government

has been realistic in its forecast, and has

factored the effects of load shedding into its

calculations. However, some businesses in

the private sector believe that if load shedding

intensifies, economic growth will be even

lower than two percent, and have, therefore,

predicted their growth to be a more modest

one to 1,5 percent,” explains Jammine.

“Another area of concern, is that, while

Nene spoke about the funds that will be

allocated to education, healthcare and safety

and security, what is often overlooked is that

more and more of the government’s budget is

actually being devoted to serving the country’s

debt, and proportionately less is being spent

on these basic social services,” he points out.

So, what might the future hold? “Make

no mistake; things are going to be tight for a

good few years. Fiscal austerity is going to be

needed if the government is to stop its debt

levels from rising. Over the next few years,

we may see the introduction of wealth taxes

(which will be based on assets rather than on

income), and value-added tax (VAT) will go up.

“In terms of the cost of fuel, even with the

increase in the fuel levies and the imminent

increase in the fuel price, we should still be

paying less per litre than we were this time

last year,” Jammine reckons.

As for the currency, he predicts that

we’ll be looking at much the same trend as

the last few years, with the rand continuing

to gradually depreciate, without any major

collapses in currency.

“It’s hard to draw an overall conclusion

about the budget speech,” says Jammine.

“Some of it was good, some of it wasn’t. It was

a bit of everything. Nene was caught between

a rock and a hard place, and he did what he

could under the circumstances, but it was

nothing great. There is a lack of trust between

the government and the private sector, and

if we’re going to save this sinking ship, better

coordination and cooperation between the

two are vital.”

He adds: “What’s more, we’ll need bold,

decisive leadership going forward. Otherwise,

we’ll just continue to trudge along at two to

2,5 percent growth over the next few years,

which isn’t a disaster, but it could be so much

better.”

Jammine concludes: “On the upside,

international investors seem to be gradually

regaining a little bit of confidence in our

economy, which will help us to start

consolidating our expenses.” |FOCUS

On February 25, Minister

of Finance, Nhlanhla Nene,

delivered South Africa’s annual

budget speech to Parliament in

Cape Town. Azar Jammine, director

and chief economist of Econometrix,

offered some interesting analyses of what

was said. CLAIRE RENCKEN reports

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BUDGeTRevIeW

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Some say that the world is overcoming the effects of the recent recession, while others warn that we

shouldn’t jump the gun … One thing is certain – it has changed how business is done. We take a look at

how the commercial-vehicle finance and insurance industries have been affected

triUMphing over

TOugh TiMes?

FInAnCe AnDInSURAnCe

The recession, or the general

economic decline, that hit the

world markets around the end

of the first decade of the 21st

century (its exact scale and timing is still being

debated), varied from country to country. Its

affects rocked the world, however.

In terms of overall impact, the International

Monetary Fund (IMF) concluded that it was

the worst global recession since the Second

World War.

“In general, there is always a flipside

to the coin,” says Petr Novotny, managing

director of Scania Finance and Insurance. “The

aftershock has led to a search for efficiencies

within the commercial automotive sector. This

directly influences all parts of the value chain,

to which the finance and insurance business,

undoubtedly, belongs.”

He adds that operators also became

more eager to understand the total cost of

operation and total operating economy of their

fleets. “These areas are crucial, and are the

first step in order to create sustainable, long-

lasting transport solutions.”

Novotny continues: “At the same

time, due to the perceived high risk to the

financial market, customers and banking

institutions suffered from lack of access to

financial resources and liquidity during the

crisis years.”

He emphasises that this wasn’t an

easy situation. “It created a shift, however,

where customers turned to alternative

means of finance, such as finance provided

by original equipment manufacturers,

leasing and insurance solutions,” Novotny

tells FOCUS.

“This alternative to the traditional financial

institutions helped to ease the tough market

situation and increased market liquidity in the

automotive business sector.” It also led to a

number of benefits for the commercial vehicle

market …

“Scania Finance and Insurance offers a

flexible and customer-need-based approach,”

“This emphasises some very important

parameters such as one customer one

account, dedicated customer approach

and focus on total operating economy when

offering Scania products, services and

finance/insurance. No silos, no politics, no hot

potatoes … ”

He adds that Scania believes this holistic

strategy will help its customers to become

more profitable, more efficient and spend

less time and effort on administration and

operating processes – “so that they can focus

on the core areas of their businesses”.

So the recession wasn’t all evil, necessarily,

but it did leave its mark … “The market

recovery was relatively quick in terms of

volume, but other areas took far longer to

recover,” Novotny points out. “Prices of used

vehicles, for example, remained at lower levels

for years.”

He continues: “Higher market risk had a

negative effect on the levels of lease payments

to logistics providers, and consequently, on total


FInAnCe AnDInSURAnCe

cost of operations. The financial sectors are

now much better prepared to tackle financial

or operational rises, due to active involvement

with the transportation companies and better

understanding of rewards and risks in the

commercial vehicle operations.”

This is a good thing, as 2015 might have

its own challenges in store … David Molapo,

head of fleet management at Standard Bank,

says that heavy economic storm clouds lie

ahead for the South African fleet industry in

the coming year. “The good news is that many

local fleet operators have not yet begun to fully

utilise the modern tools and technologies that

can help them to weather the storm.”

He adds that those that have already

implemented precision-management tools

(not only the latest vehicular technology and

telematics, but also management systems

and services) are set to increase their

competitive edge as South Africa enters a

turbulent economic year.

“South Africa’s recent credit rating

downgrade by Moody’s, from Baa1 to Baa2,

combined with the end of quantitative easing,

and the start of rising interest rates in the

United States, is pushing down local business

confidence,” Molapo points out.

These conditions are doing no favours

to key sectors, such as manufacturing, and

2015 could possibly see South Africa lose

further vehicle production contracts, among

others, to more competitive manufacturing

economies.

“Under current economic conditions, fleet

managers are also given little time to plan for

expanding their fleets, because new contracts

tend to come in sporadically,” says Molapo. “As

a result, mistakes, such as buying the wrong

type of vehicle for the job, tend to increase.”

He adds that fleet managers need to

budget for an inflation level of at least the

current six percent. “Despite the gloomy

outlook, fleet managers can ride out the year

and emerge with a stronger, more efficient

fleet – provided they fully embrace the systems

and methods available on the market.”

One of these includes Standard Bank’s

fleet card, which is vastly underutilised. Many

fleet owners are simply “convenience users”

and implement only one of the advantages –

the fact that they no longer have to give cash

to drivers to fill up. Meanwhile, a huge amount

of information, in the form of automated

reports, is available to fleet owners who take

the time to access it.

By analysing fuel consumption and

comparing it to national averages, for example,

faults in vehicles, as well as driver behaviour,

can be picked up. The resulting incremental

savings could result in huge efficiencies, which

give the fleet a competitive edge in difficult

economic circumstances.

“The range of precision-management tools

available to fleet managers is unprecedented,”

says Molapo. “On the technological side,

telematics can now give detailed analysis of

vehicle performance and driver behaviour.”

The future also looks promising for the

finance and insurance industries. “I personally

expect further integration with the automotive

value chain, resulting in more efficient

processes and higher value offerings to end

customers,” Novotny tells FOCUS.

“I think we will see a shift towards

transporters buying transport capacity at

a fixed fee,” he continues. “In this solution

you have the whole package: full vehicle

maintenance including; parts, insurance,

finance, fleet management systems and driver

support … with a predefined uptime guarantee

at a fixed rate per kilometre or tonne.”

Novotny points out that transporters need

only add drivers’ salaries and the cost of fuel

to total cost of operation when calculating cost

per kilometre. |FOCUS

Petr Novotny, MD Scania Finance and Insurance, says that involvement with transport companies has allowed financial institutions a better understanding of operators’ risks and rewards.


there was ecstatic with the new set of

wheels. This haven for abandoned babies,

some of whom are HIV/Aids-infected, was

in dire need of a vehicle to ferry babies

and toddlers, particularly those who need

antiretrovirals (ARVs), to hospital.

The company has now decided that the

time has come to truly make its mark on

the commercial truck tyre market. And, on

March 2 this year, a new company was

created within the Bridgestone Group;

Bridgestone South Africa Commercial,

which will specifically handle the sales and

distribution of all new and retreaded truck,

bus and earth-mover tyres.

Bridgestone SA CEO, Mike Halforty,

is upbeat about prospects for the new

company. “Bridgestone Commercial will

ensure our customers have the peace of

mind of knowing they are dealing directly

with Bridgestone. It will also allow us to

consolidate our branding position and

provide closer customer support, as well

as position us for growth in the commercial

market,” he adds.

Halforty has announced that Bridgestone

Commercial will be led by Dries Lottering, in

his capacity as managing director. “Dries has

been with Bridgestone for many years and

has extensive experience of the challenges

faced by our commercial tyre customers,”

notes Halforty.

The launch of Bridgestone Commercial

also sees selected Supa Quick outlets offer

commercial tyres and services. Halforty

comments that this move will result in closer

ties with commercial customers, and explains

that the accredited outlets will also be able to

supply commercial retreads manufactured

according to the South African Bureau of

Standards (SABS) specifications.

Bridgestone’s commercial tyres are

already highly regarded, with the company

having won “Best Tyre Brand” at the FOCUS

ON EXCELLENCE Awards.

“The time was right to ramp up our

commercial operation to a new level,” Halforty

says. “I’m certain that Bridgestone Commercial

is going to set ever-higher standards in this

segment,” he concludes. |FOCUS

Bridgestone, a household name within the transport industry, is now focusing on the commercial tyre

business like never before – with the formation of an all-new company

bridgestone coMMerciAl

is bOrn!

FOCUS OnTYReS

The Bridgestone name is far from

new to South African truckers.

On a global front, the name

has existed since 1931, when

founder Shojiro Ishibashi established the

business. Incidentally, the company name

comes from an English translation of his

surname.

The company has been active in the South

African market since the proverbial pa fell off

the bus. It has done much more, however,

than just sell tyres.

For instance, Bridgestone was integral

to the formation and success of the Caring

Truckers Aids Drive, a charity administered

by Charmont Media Global. The Caring

Truckers Aids Drive was initiated in 2000

by FOCUS in conjunction with Bridgestone.

In fact, the charity – which has had a huge

impact on Aids orphans in South Africa –

was the brainchild of Bridgestone’s Shaun

Wustmann. Thanks to his inspiration, the

Salvation Army recently received a Mazda5.

The vehicle was handed to the Ethembeni

Babies Home in Johannesburg, and the team

??????????????


Syn

c - 1

071

5 -

Focu

s

Bandag have been specialists in recycling since 1957. Bandag’s cold retreading process is not only reliable and economical, but also aids in keeping tyres out of landfills thereby protecting the planet. Combine this with Bandag’s ISO 14001 environmental accreditation, and it becomes clear why using Bandag gives fleets and the environment the advantage. That’s what we do.

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FOCUS OnTYReS

What is being done to counteract the negative effect that used tyres have on the environment? With

different entities sharing one goal, there might be hope after all – DEON VAN DER WALT finds out more

thAt is the qUestion

TO reuse Or recycLe,

Tyres are, arguably, one of the

most crucial components of

any motor vehicle. A passenger

vehicle’s safety depends on its

tyres being in good condition, while tyres

can have a direct impact on a commercial

vehicle’s productivity.

The mid-nineteenth century was the

Genesis for the tyre as we know it today,

when Charles Goodyear invented vulcanized

rubber, which would later become the

rubber used for the earliest tyres created

by inventors with similar, yet very different,

ideas. Since then, all road transport has

become reliant on tyres.

This poses an important question in

the framework of “global warming”. What

happens to these tyres when they are no

longer usable?

Annually, South Africa adds 11 million

tyres to already problematic landfills and open

areas. Designed to be extremely durable,

tyres are notoriously difficult to recycle and

take very long periods (up to 50 years) to

biodegrade.

Instead of just discarding the bald, worn-

out rubber to disintegrate, recycling or

reusing will help save the planet – one tyre

at a time.

The Recycling and Economic Development

Initiative of South Africa (Redisa) plans to

clean the country of tyre waste. According

to Redisa, there is a growing demand for

waste tyres that can be recycled and used

to manufacture products made from the

rubber, steel and textile derived from the

processed tyres.

With 34 operational depots in all nine

provinces, Redisa created 1 617 jobs and

collected 81 542 t of waste tyres in the

period from December 2013 to December

2014.

Director Stacey Davidson says that Redisa

is not a recycler, but supports companies

that recycle and process waste tyres into

saleable products.

“Our support ranges from business plan

development, to assisting with environmental


FOCUS OnTYReS

impact assessments. We offer regular

delivery of waste tyre feedstock to all recycling

companies that are registered with Redisa,”

says Davidson.

One such operation is the joint venture

between the Mathe Group, based in KwaZulu-

Natal, and PFE International. These two

organisations plan to build a multi-million

rand rubber crumb manufacturing facility in

Hammersdale.

Mehran Zarrebini, head of PFE

International, says that the new facility will be

home to the Mathe Group, and is one of only

two KwaZulu-Natal companies registered

with Redisa.

The Mathe Group, which currently

recycles tyres at an 850 m² factory, will

significantly increase productivity with

the new manufacturing facility. Due to

be commissioned in April, it consists of a

2 500 m² factory and a 1 000 m² warehouse,

and will feature modern equipment worth

R20 million.

Bandag (which has been operational in

South Africa for more than 40 years) offers

an alternative solution to cut down the ever-

increasing number of waste tyres – in the

form of retreading.

“Retreading as a discipline is the first

step in recycling efforts. With retreading

you extend the service life of tyres, thus

reducing tyres at landfills. In this way, the

legacy scrap pile of tyres can be worked

through the government’s recycling efforts,

which Bandag fully supports,” says Bandag

marketing manager Monal Naik.

Bandag has a strict set of criteria to

optimise the retreadability of truck tyre

casings. These include: the selection of

the correct tyre/casing for the desired

application, timeous tyre removal and a proper

tyre inflation maintenance programme.

“Modern premium-quality retreads are on

par with new tyres and will almost certainly

outperform budget tyres. With its multiple ISO

certifications, Bandag is making sure that the

manufactured product has the highest level of

conformity and reliability,” continues Naik.

Bandag offers a guarantee on its

products with a further guarantee against

faulty workmanship or defective materials

used; helping to reduce the impact of waste

tyres on the environment, for a sustainable

future. |FOCUS

*Deon van der Walt is the South African Guild

of Motoring Journalists’ bursar student. He

recently spent a month with FOCUS, where

he was exposed to the local commercial

vehicle industry.


Logistics and supply chain

management practitioners are

reporting shortages of up to

64 percent in positions that

require a bachelor’s degree. Even at

operational level, where candidates need

a grade 12, a post-school certificate

or a diploma, companies experienced a

27 percent shortage in 2013.

In South Africa today, the skills shortage

is the fourth-highest supply chain constraint.

This is according to the Council for Scientific

and Industrial Research (CSIR)’s tenth Annual

State of Logistics Survey for South Africa

(2013), which reports that the lack of skilled

personnel, at all levels, continues to be a

major concern to the performance of supply

chain management.

It is a challenge that affects virtually every

one of South Africa’s key economic drivers.

Industries such as mining, manufacturing,

retail and farming, for example, would

be incapacitated without these skills and

services.

Every year, investment in the road, rail,

port and airport infrastructures continues

to be a high priority with billions of rand

invested in various projects in these areas.

In 2013, logistics costs were estimated at

R423 billion, and have grown significantly

over the last four years, when measured

as a percentage of transportable gross

domestic product (GDP) – primarily due to

fuel increases.

Developing efficiencies within end-to-

end supply chain integration is now critical

for strong financial performance, and to

mitigate the effect of volatile fuel costs.

Thus, strategically, investment in logistics

and supply chain management skills would be

a vital contributor to a profitable bottom line.

In such a rapidly developing and changing

industry, skilled practitioners require hard

skills (traditionally taught academically)

and soft skills, but also work experience –

especially if they want to progress in their

careers, and use the benefits of the changes

in the industry to the advantage of their

organisation.

Soft skills are of such importance to

the industry that surveys, conducted by

the University of Johannesburg, found that

practitioners place these skills, particularly

customer-focused management, well ahead

of the required hard skills.

Students, however, prioritise such

skills much further down their lists. This

discrepancy could be accounted for by the

lack of real-world experience in the industry

on the on the part of the students. However,

it does create a gap between the needs of

employers and the skills pool available.

Such a gap results in many candidates,

despite having degrees, not being fully

qualified for a position – especially when

they look to move into the more tactical and

Skills shortages continue to bedevil the logistics and supply chain industry. MARIO LANDMAN, head of

the Institute of Logistics and Supply Chain Management, elaborates

More skilled personnelWanTed:

SUPPLY CHAInMAnAGeMenT

»

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SUPPLY CHAInMAnAGeMenT

strategic roles of supply chain management. It

is at this juncture that the industry runs the risk

of losing skilled candidates to other courses and

even careers.

While many industry practitioners do

recognise the need for more skills and believe

further qualifications (such as a National

Diploma or Bachelor of Business Administration

degree) could help them, very few are able to

take these traditional routes through academia,

due to financial constraints and those of their

working environment.

For instance, attending regularly scheduled

classes can be difficult for a practitioner with

the type of work schedule common in the

logistics industry. The traditional distance-

learning alternative is also not viable, as this

often does not offer appropriate support.

It is this gap that needs to be filled by

more responsive professional certifications,

graduate training programmes and vocational

associations.

While the South African Production and

Inventory Control Society (SAPICS) Operations

Management Body of Knowledge Framework

(OMBOK) found that the quality of tertiary degrees

in the field was on par with other countries, and

adequately taught the hard skills, professional

certifications and membership of professional

associations lagged behind – and it is through

these institutions that a better understanding of

the soft skills could be developed.

In response to these insights, the Institute

of Logistics and Supply Chain Management

(ILSCM) has developed a number of accredited

qualifications that offer relevant, flexible

education solutions.

Dedicated to the industry and with a depth

of research resources, the ILSCM is able to

respond to changes and developments quickly,

to the benefit of their graduates, practitioners

and the industry as a collective whole.

Although quantitative research is yet to be

published about the impact these courses are

having on the industry, ILSCM graduates, and

companies partnering with the ILSCM, have

reported an overall improvement in relevant

skills, particularly soft skills.

Indeed, empirical evidence is showing that

partnering with education providers is a highly

effective route for companies seeking to build

their skills capacity and improve their overall

performance. |FOCUS

THe PULSe OF AFRICA’S SUPPLY CHAInS

The 37th annual SAPICS

conference and exhibition will be

held from May 31 until June 2, at

Sun City. SAPICS is the premier

educational and networking

event in Africa for supply chain

and operations management

professionals. The conference

offers practical and relevant

information through educational

presentations, case studies and

interactive workshops.

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Automechanika Johannesburg represents the ideal opportunity to:

� Showcase to the automotive aftermarket in a face-to-face environment where visitors can experience your products or services first-hand.

� Generate sales leads, advance the sales cycle and close sales � Build relationships with prospects and meet new industry role players � Cross-sell existing clients by informing them of products or services they may not be aware of

� Recruit new clients and distributors � Build your brand and increase market awareness of your brand � Launch new products/services or new applications and enhancements of your existing products/services.

Exhibition Focus Areas

South Africa’s Leading International Trade Fair for the Automotive Indus-try targeting Trade Visitors from the Sub-Saharan Region

6 – 9. 5. 2015

www.automechanikasa.co.za

Automechanika Johannesburg is licensed to SA Shows Messe Frankfurt

Cement your position as an industry leader by entering the Innovation Awards staged alongside Automechanika Johannesburg.

Open to entries demonstrating the latest technological advances and innovations the Awards provide a foretaste of the automotive aftermarket of the future.

Enquiries: Wynter Murdoch – [email protected]

Register for the Truck Competence listing and display the decal on your exhibit stand to demonstrate your capabilities in the commercial vehicle sector. Covering the entire value chain of the commercial vehicle aftermarket from parts and components to specialist workshop and collision repair equipment the Truck Competence programme recognises the important role of the commercial vehicle sector.

Enquiries: Philip Otto – [email protected]

Planning of the Automechanika Academy programme is underway in consultation with industry associations and organisations. The programme of conferences, workshops and demonstrations is designed to keep you updated on the latest trends and technologies in the industry.

Enquiries: Robert Kaiser – [email protected]

Entry into the Automechanika Green Directory celebrates the contribution your company is making to safeguard the environment. Companies exhibiting technology, products and services which are environmentally friendly and sustainable appear in the special green directory listing enabling visitors to easily locate environmentally friendly products and solutions.


Enquiries: Robert, Perusha or Tina Tel: +27 11 494 5003 | e-mail: [email protected]



SUPPLYCHAIn

The strength and reliability of the Unitrans

business comes from its core assets –

among them over 9 800 employees in ten

countries, 330 000 m² of warehouse space

and a total fleet of over 3 000 vehicles. These

assets are put to use on behalf of clients in

areas such as transportation, warehousing,

distribution and freight forwarding.

The business also focuses on specialised

solutions in the industries in which it

operates, where its expertise and long-term

relationships have added value to its clients

for decades.

The Unitrans commitment to business

innovation is key to adding value and

adapting to challenging circumstances in

all its core industries. The FMCG industry,

for example, is one of the most competitive

sectors in the market with regard to

transport costs. Unitrans has been

working with one of South Africa’s biggest

international retailers since 2009 and

currently fulfils the role of chief third-party

logistics provider (3PL) for its distribution

operation based in Gauteng, which also

services cross-border operations to

Botswana, Lesotho and Swaziland.

The Unitrans fleet for the retailer

stands at 241 vehicles, with around

610 drivers travelling an estimated

26 million kilometres per annum!

Adding value for the client means

thinking innovatively about the 3PL

processes in place, and making

them more efficient and effective

in the overall management of the

FMCG supply chain.

In the mining sector too, Unitrans has an

unparalleled track record of load and haul and

related services for many established clients.

Here, innovation to continuously improve

transport and supply chain operations is

extremely important to the client’s profitability.

Unitrans responds to this need by adding value

to the core supply chain function in the mining

sector’s load and haul operations.

Innovation here has been focused on

developing high-payload road trains using

Performance Based Systems (PBS) and

the Road Transport Management System

(RTMS). Unitrans is now the biggest operator

of road trains in Africa.

RAY SINGH – managing director, customer solutions development at Unitrans, talks about innovation in

the supply chain solutions industry

the byword is innovAtion

uniTrans;

The supply chain solutions industry

has grown in prominence with the

expansion in global trade over the

last 20 years. Trade flows have

lessened in the wake of the recession and the

net result has been that all major multinational

businesses now understand the importance of

an innovative supply chain strategy.

In the current climate of economic decline

and crisis, however, the supply chain business

environment, across the world, has been an

unforgiving one over the past few years. In

recent times, the dramatic drop in trade

volumes has been coupled with huge volatility

in fuel prices and increases in commodity

prices across the board. Times are tough!

In response, the realisation in most

boardrooms is that the supply chain is a key

element of business strategy and success,

and that an innovative attitude to supply chain

management is vital to the resilience and

sustainable profitability of the business.

This is where innovative supply chain

partners come into their own, and this

supply chain innovation space is the one

in which Unitrans plays. Unitrans is one of

South Africa’s largest and most successful

international companies engaged in the

design, implementation and ongoing provision

of innovative supply chain solutions.

The Unitrans business has a major

African focus, with operational presence

and thriving customer projects throughout

southern Africa, in key industry sectors

such as mining, fuel, chemicals and gas,

agriculture, construction and fast-moving

consumer goods (FMCG).


SUPPLYCHAIn

The road trains operated by Unitrans

have a wide range of supply chain benefits.

They can legally and safely increase payloads

by up to 16 percent, since the trains are

over 40 m long, with a payload of up to

122 t in four side tippers.

They reduce fuel consumption per

tonne distributed, as with greater payloads

comes less need for additional fleet, and

fewer trips. As a result, the road trains

deliver better fuel efficiency than standard

56 t road legal trailer combinations.

The reduction in fuel usage, per tonne

of product transported, translates to

substantial reductions in CO2 emissions – a

factor crucial in communicating the value of

sustainability initiatives to mining company

stakeholders.

Unitrans has 30 heavy-duty road trains

in operation across southern Africa, which

include 16 new-generation road trains in the

mining sector.

An important focus for Unitrans,

currently, is the intellectual capital value

that it can add to these industry service

offerings in a challenging global market.

These include:

• Network design;

• Warehouse design and efficiency;

• Inventory optimisation;

• Distribution optimisation;

• Transportation planning and execution.

In each of these areas, Unitrans offers

its clients a dedicated consulting team,

which is involved in every phase of any

supply chain solution, from design through

to implementation, thereby ensuring

seamless integration of planning with

execution.

The business model employed by

Unitrans is one guided by the intellectual

capital and solution innovation at

work in the business. In all of these

supply chain areas – whether in networks,

the warehouse, inventory or distribution –

a solution design phase is followed

seamlessly by implementation and

management of the solution – incorporating

specialised skills, methodologies and

change management processes – to

ensure optimisation.

Unitrans continually goes beyond its

contractual obligations, in looking to add

value for its clients at every phase of

the solution process. The company’s track

record in its key industry sectors speaks to

the success of the approach – one that is

even more necessary in these challenging

economic times. |FOCUS

uniTrans;


RAIL

south Africa’s rail industry often

receives criticism with regard

to its operational standards

and infrastructure (which

isn’t totally unfounded). The industry does,

however, have its highs … A range of tried-

and-trusted F18 low-friction brake blocks,

which have been used on goods trains across

Africa since first being launched locally in

1967, are set to be introduced to the North

American and European markets by DCD

Metpro, a local on-tread, composite railway-

brake-block manufacturer.

“Despite the fundamental design remaining

unchanged for decades, the F18 range

continues to be the most popular solution in

Africa,” says Hlayisani Matelakengisa, DCD

business manager for the rail and industrial

division.

“The only aspect of the design that has

changed is that asbestos was removed

from the composite in 2000; for health and

safety reasons. The continued success is

testament to our capabilities, which we plan

to extend by testing for the North American

and European markets in the foreseeable

future.”

He adds that DCD Metpro has already

achieved measurable success in international

rail markets, particularly in Australia, through

its ARG range of high-friction brake blocks.

These are based on the same concept as the

F18s, but designed for use in higher speed

and friction applications (such as passenger

train and transportation motor coaches).

“The ARG range was launched in 2005,

and is designed and manufactured specifically

for the Australian market,” Matelakengisa

points out. “Since its launch, this range has

proved to be more cost-effective than any

competitor product in Australia. Bearing this

in mind, plans for expansion of the ARG

range into new regions are currently being

considered.”

DCD Metpro boasts the capacity to

manufacture up to 720 000 on-tread railway

brake blocks and 1,4-million brake-block-

backing plates per annum. The Pretoria-based

company currently manufactures 30 products

for passenger, freight, locomotive and mining

railways.

“DCD Metpro is well positioned to double

its output without further investment,” says

Matelakengisa. “In light of this, we will also

focus on long-term expansion in Brazil, Russia,

India and China (BRIC countries) – where

South Africa is a strategic trade partner.”

The rail industry isn’t only expanding abroad,

however, Plasser South Africa and Gulfstream

Energy are keeping our country’s railway

infrastructure in motion … “An essential part

of our service business is the maintenance of

railway lines across the country,” says Deon

Hellberg, financial director, Plasser South

Africa – local partner and agent for Plasser

& Theurer (a heavy, on-track maintenance

machinery designer and manufacturer).

From the manufacture and supply of

new machines and spare parts, technical

support, major component overhaul and

machine refurbishment, through to regular

maintenance, Plasser South Africa ensures

the ongoing operation of South Africa’s railway

transport system.

“It’s a challenging business and one which

demands operational efficiencies across all

stakeholders and preferred suppliers,” says

It’s said that South Africa’s rail industry is but a shadow of its former glory; volumes have remained flat

over the past 20 years and many lines are in a state of disrepair. Our country’s rail industry is, however,

not a lost cause …

bAck on the

raiLs?


RAIL

Hellberg. Key to Plasser South Africa’s ability

to deliver service and maintenance, anywhere

it is required, is the guaranteed supply and

delivery of quality fuel products.

“We use, on average, about 40 000

litres of fuel per month, with each delivery

requiring anything from 10 000 to 20 000

litres,” continues Hellberg. “In addition, with no

fixed depot of our own, the supply of fuel ‘on

the move’, to whatever location we require,

is critical.” The supply of fuel is a volume-

based business, however, it is not always

economically viable for larger players to deliver

smaller quantities.

Plasser South Africa found itself in this

position with its previous supplier (a major

oil company), which was not able to supply

the required volumes to the remote areas in

which Plasser South Africa operates.

“The consequences of this are huge,”

Hellberg points out. “Reliable access to fuel

is critical to our service delivery. Without

it we are incapable of meeting our service

agreements.” Delayed deliveries result in

problematic downtime, leading to both

a loss of productivity and unnecessary

costs, due to machines and maintenance

personnel left idle for several days in remote

locations. Consequently, Plasser South Africa

began researching alternative fuel suppliers …

This led the company to the petroleum

solutions provider, Gulfstream Energy. “After

discussions with Gulfstream in 2010, we

embarked on an initial test run of a few

shipments, after which it was appointed as our

preferred fuel supplier,” explains Hellberg.

Shane Jegels, chairman and CEO of

Gulfstream Energy, adds: “We believe in

‘making business easy’. In the case of Plasser

South Africa, we understand that reliable

access to fuel is essential to the smooth

running of daily operations. To this end, we

are committed to doing everything possible

to ensure timeous delivery of fuel, thereby

avoiding unnecessary downtime and breaks

in productivity.”

Orders are placed electronically with

Gulfstream, which is currently delivering

approximately 40 000 to 50 000 litres of

fuel per month. “It’s seamless and smooth,”

continues Hellberg. “Prior to delivery,

Gulfstream requests GPS coordinates to

confirm exactly where supply is required, and

then arrives on time every time.”

He adds that there are definite advantages

to dealing with an independent wholesaler,

such as Gulfstream. “Unlike bigger corporates,

management is directly involved in daily

operational issues. We have a direct line

to any member of the team, irrespective of

seniority, whenever needed.”

“It’s a win-win relationship,” adds Jegels. “We

look forward to working with Plasser South

Africa as it services our country’s railway

infrastructure for many years to come.”

South Africa’s rail industry certainly isn’t a

lost cause. It is setting its sights on overseas

markets and is forming smart partnerships to

keep the locomotive wheels turning … but only

time will tell if it’s getting back on track, or if

there will remain reasons to rail against this

transport mode. |FOCUS

??????????


ITOY

GIANENRICO GRIFFINI brings us an exclusive interview with Ayrat

Mardeev of the Kamaz Master Team, winners of Dakar 2015

the thrills And spills of

dakar 2015

Three Kamaz pilots on the podium

and another Kamaz truck in fifth

position in the final ranking. Did

you expect this result before

the last Dakar?

We worked hard to get good results, but no

one imagined that we will have three places.

We never try to predict events. The most

important thing for us is stable driving.

What are the reasons for this stellar

performance? Is it mainly due to the trucks,

the team, the tactic of your team manager

Vladimir Chagin, or the reliable Liebherr

engines?

All these factors are very important. First,

we are a team. We work together as a

harmonious mechanism; our work is well

coordinated. We work for a common goal

and not for an individual result. The second

reason is very good preparation of the trucks,

but again, this is thanks to the team –

specifically our mechanics and engineers.

We also have a very nice, fast truck.

We’ve used new Liebherr engines to comply

with Dakar regulations. We do not have much

experience with these engines, but all the

improvements and modifications that have

been made by our engineers show that we

are moving in the right direction.

I should also note “the Chagin factor” in our

success. His experience and advice are crucial.

Tell us the story of your Dakar this year.

Was it easier or more difficult than the

2014 rally? What were the most difficult

and demanding stages?

I remember a marathon stage that we drove

for the first time. Eduard Nikolaev and I

already had experience of stages such as

this from when we were crew mechanics. It

was important not to break the car and still

show good results, as we had no help from

our assistance crews that day.

Dakar is always very difficult. The most

difficult part this year was the special stage

in the mountains, when we rose in height.

The special stage started at an altitude

of 3 500 m and we rose up to 4 500 m.

Breaking the engine was a big risk, so we

had to check all the parameters even more

carefully. It didn’t affect our physical state,

as we trained a lot before the rally.

The pace of this year’s rally surprised me.

From the very beginning the first 15 trucks

drove within five minutes of each other. So

any navigation mistake or breakdown throws

you off at the end, and then it becomes

difficult to win back lost time. We didn’t

expect such high-speed special stages,

where the average speed of the truck was

110 km/h – it is a furious pace for a truck,

as the maximum permitted speed for trucks

is 140 km/h. It was unusual.

Dakar 2015 became the fastest rally,

no matter whether we were off-road or not.

The difficulty was that the front cars raised

clouds of dust. It was particularly difficult

??????????????


ITOY

As regular readers of FOCUS know, this magazine has been appointed an associate member of the International Truck of the Year (IToY)! FOCUS is the sole South African magazine to have joined this prestigious body. One of the advantages of this association is access to exclusive articles, specially written for FOCUS by ITOY jury members. This is one such article.

2014

where it was not possible to overtake for

better visibility. Only the vehicle that took

the lead could win at such stages. The race

was very unpredictable. The realisation that

we were the winners came to me only when

I was standing on the podium in Buenos

Aires.

The big technical issue for Kamaz trucks

this year was the Liebherr engine. How

do you judge its performance? Were you

forced to adapt your driving style to the

new powertrain?

It is the second time we’ve used the Liebherr

engine in the rally. The most difficult thing

in the beginning was to get used to the

absence of the engine sound, as the

Liebherr engine is not audible in the cabin.

It is very dynamic, and we were happy with

its technical characteristics. We had no

technical problems with the engine. Once

again, I would like to thank the engineers in

our team for the excellent revision of engine

parameters.

Who among your competitors were the

most challenging?

We are very respectful of all our

competitors. Gerard De Rooy from Iveco

and Ales Loprais from MAN are very fast

drivers and dangerous rivals. Loprais chose

our tactics – he drove stably; trying not to

make mistakes, and if we stopped or began

to “battle” within the team we had a lot of

problems. Hans Stacey (Iveco) is a driver

with a lot of experience. He’s fine on windy,

narrow routes. Martin Kolomy is a good

driver too. He had everything it took to be

on the podium – a fast truck and excellent

driving skills.

What were the major steps in your career

as a driver of rally trucks?

In 2008, I was at the wheel of a race truck for

the first time. It was a stage of the Russian

Championship. I was 21 years old. My first

victory was on the Russian Championship in

Ulyanovsk in 2011. It was a difficult race. The

next big result was a victory at the 2012 Silk

Way Rally and, of course, the second place at

the 2013 Dakar.

My victory is devoted to my father who

died in August 2014. Everything that I have

done, my love for cars and motorsport – it’s

all thanks to him. He was my first coach. In

karting he was my mechanic, my teacher.

My father really wanted me to win. And now

there is the Mardeev name on the list of the

Dakar winners. It is a pity that he can’t share

with us this delightful event, but I think he

feels it and is happy for me. |FOCUS


LIGHTBRIGADe

affordability, practicality and a

taste of luxury are key elements

of GWM’s Steed 5E, as it

falls squarely between the

workhorse-orientated DNA of the Steed 5

(on our shores since 2012) and the luxury

appeal of the recently launched Steed 6.

The GWM Steed has matured rapidly

and I just couldn’t get enough of it, with

its abundance of personality and down-to-

earth good looks. The Steed 5E features an

entirely new grille and styling features that

call for a second look. What’s also new are

the side indicators mounted into the mirror

housings and the aerial now integrated in the

windscreen.

The upgraded interior, which significantly

contributes to GWM’s achievements with

the Steed 5E, has a genuine quality feel to it,

with comfortable leather seats and a modern

facia with piano-black finish throughout the

cabin.

When closing the doors of the Steed

5E, the fairly quiet thud gives a feel of

quality. Extra sound-insulation material has

been used to isolate the cabin of the Steed;

reducing vibration and road noise.

The Steed boasts a quality sound

system accessed by a new touchscreen

entertainment interface, which controls the

radio, multimedia system and Bluetooth. It

can all be controlled with relative ease, apart

from the radio, which, for me, took some

getting used to.

The steering wheel still features

remote audio controls. A small problem

that I encountered is the reflection of the

entertainment system in the back window.

This tends to be a distraction when driving

at night. A new, user-friendly climate control

interface has been installed.

GWM has extensively refined the VGT

turbodiesel power plant, which produces

105 kW at 4 000 r/min and maximum

torque of 305 Nm between 1 800 and

2 800 r/min. The reasonably powerful two-

litre engine did not really scream smooth

power delivery; there is considerable turbo

lag in the lower half of the rev spectrum. Get

the revs going, however, and the Steed could

put a smile on your face. The diesel version of

the Steed 5E has a claimed fuel consumption

of 8,9 l/100 km.

The first few gear changes in the morning

feel like what I imagine it would be like to

brawl with a medium sized boa-constrictor.

Once it has been running for some time,

though, gear-changing is surprisingly smooth.

This should improve as the mechanicals are

run in.

Now, you might ask about everyday

usability … The Steed offers plenty of

legroom in the front and back for the

taller folks among us. The steering is height

adjustable. The Steed also has revised rear

seat cushions to improve seating comfort

over long distances.

The rear leaf springs mean that the

ride quality of the Steed 5E can become

somewhat choppy on uneven roads. Still,

considering that part of its identity is that

of a hard-working brute, it is not overly

uncomfortable.

The Steed 5E Xscape features include;

a six-speed manual gearbox, 16-inch alloy

wheels, dual front airbags, height-adjustable

headlamps, and Anti-lock Braking System

(ABS) with Electronic Brakeforce Distribution

(EBD). Side steps complement the appearance

of the premium trim level Steed 5E.

GWM also offers a five-year/100 000 km

warranty.

The GWM Steed 5E 2,0 VGT Xscape,

priced at R274 900, offers exceptional value

for money to anyone looking for the best

of both worlds in the bakkie segment. If

GWM keeps going at this rate, I can’t wait

to see what it has to offer in five years’

time. |FOCUS

*Deon van der Walt is the South African Guild

of Motoring Journalists’ bursar student. He

recently spent a month with FOCUS, where

he was exposed to the local commercial

vehicle industry.

bUsiness And

pLeasure

Chinese manufacturer Great Wall Motors (GWM) is set to create

a stir in the much-loved South African bakkie segment with the new

Steed 5E. DEON VAN DER WALT takes it for a spin

??????????????


Hyundai HD72. Smash through the workload.

www.hyundai.co.za/commercial-vehicles

Turbo Protector•ABS•3-Year/200 000km Warranty and 1-Year/60 000km Service Plan

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45439 Hyundai Commercial Vehicles Incredible Bulk 297x210 E.indd 1 2014/12/09 3:38 PM

www.hyundai.co.za/commercial-vehicles


GLOBALFOCUSGLOBALFOCUS

WeLCOMe TO GLOBAL FOCUSThis is the first in a new

series of monthly features

written exclusively for FOCUS. Our objective

will be to keep you, our reader, fully informed

on the latest developments taking place in the

fascinating transcontinental world of trucks

and buses.

The information that you can expect to

find here will cover technical developments,

emerging new propulsion technologies,

environmental legislation, new and interesting

products and components, market sizes

and participants, manufacturer groupings,

relationships and realignments, and anything

else that will help South Africans to better

understand the dynamics in the global industry

that may have an impact on local vehicle and

equipment suppliers, and users, in the future.

This is how we welcomed readers to the new

column at the beginning of 2006. Apart from

spinning off bus-related news into a separate

Global Bus feature, we’ve kept pretty close to

the objectives we set ourselves back then.

Often, we have stuck our necks out to

predict future outcomes and trends, and

have dared to comment on the wisdom,

or otherwise, of decisions taken in distant

boardrooms. Fortunately, these observations

have usually been fairly accurate, so most of

our readers are still talking to us!

PACCAR – A CHAnGe OF DIReCTIOn?During 2005, some questions emerged

relating to the future sustainability of the

“traditional” American line-haul truck with its

“conventional” bonneted cab, and preferred

selection of outsourced driveline aggregates.

In the midst of all this speculation stands

Paccar Inc.

The first clue that something was changing

was the emergence, during 2004, of DAF’s

FRANK BEETON has written about numerous important industry highlights over the past nine years. In this 100th edition of Global Focus, he recalls some of the key issues, and adds up-to-date comments on subsequent developments

globAl focUs scores A ton!!

nOT OuT! 100

www.isuzutrucks.co.za

www.bpl.za.com

www.scania.co.za

www.hino.co.za

www.faw.co.za



new 12,9-litre engine with prominent Paccar

branding. At the RAI Show held in Amsterdam

during October, 2005, the second Paccar-

branded engine to emanate from DAF, the

9,2-litre PR series, was introduced to the public.

This Euro-5-capable, six-cylinder in-line

power unit uses the SMART high-pressure fuel

injection system, developed jointly by Paccar

and Delphi for the 12,9-litre MX unit, and

passes its exhaust gases through a DeNox

catalytic converter. Available power outputs, at

a maximum rotational speed of 2 200 r/min,

range from 183 kW (250 bhp) to 265 kW

(360 bhp), and the maximum torque rating

will be 1 450 Nm delivered between 1 000

and 1 700 r/min.

Right back in Global Focus 1 we predicted a

significant change in direction for Paccar in

terms of engine selection, and we were spot-

on. Today, Paccar’s own large-displacement

engines remain standard issue in DAF

heavyweights, and are offered as baseline

equipment to Peterbilt and Kenworth buyers.

The MX and PR engines are also

manufactured in both Europe and North

America. The trend towards “in-house”

engine fitment is now firmly entrenched in the

American premium hauler market.

CUMMInS exPAnDS COOPeRATIve BUSIneSSOne of the main questions still engaging

the minds of truck market observers and

analysts concerns the future position of

specialist driveline aggregate manufacturers,

such as Cummins, Caterpillar, Eaton, Dana

and ArvinMeritor, in an era when the major

truck manufacturing groups are working

increasingly towards sourcing the maximum

number of the components making up their

products from within their own families.

This scenario has been largely driven by the

need to comply with the increasingly stringent

and expensive environmental legislation

taking root in much of the developed and

developing world. There can be little doubt that

global players such as DaimlerChrysler and

Volvo have moved into offshore acquisitions,

particularly in the United States (US), to

expand their total volume production bases,

and that the indefinite continuation of the

traditional North American “component

truck”, offering an almost unlimited selection

of engines, gearboxes, axles and suspensions,

is not in their corporate game plans.

Clearly, the specialist aggregate suppliers

need to develop effective counter-strategies

if they are to continue to prosper in such an

environment. Cummins Inc. has entered into

cooperative ventures with Scania AB, Shaanxi

Heavy-duty Trucks, Dongfeng, Kamaz, Iveco,

New Holland, Westport Innovations and Tata

Motors.

These arrangements range from

technology sharing, to joint component

production facilities, to joint production and

marketing of engines, and provide for varying

degrees of visual Cummins identification on

the finished product. At the end of the day,

however, they all impact on Cummins’s global

bottom line results.

The flipside to the increasing adoption of

“in-house” engine fitment by premium truck

manufacturers, was the move by independent

engine builder Cummins to reduce its

dependence on the share of their business

which it had traditionally enjoyed.

As the years rolled out, Cummins

increased its focus on smaller displacement

nOT OuT!

»

GLOBALFOCUS


GLOBALFOCUS

engines and emission-control technologies,

and entered into numerous off-shore joint

venture relationships. It even agreed to make

Paccar-branded engines for that group’s

lighter vehicle ranges. That strategy appears

to have worked.

GM SeLLS ITS STAKe In ISUzUThe relationship between General Motors

(GM) Corporation and Isuzu Motors dates

back to 1971, when GM purchased an initial

34-percent shareholding in the Japanese

vehicle and engine manufacturer. Since then,

the arrangement has been restructured a

number of times, with GM’s participation

building up to a high point of 49 percent.

This has been mainly as a result of a number

of subsequent equity injections that were

required to support specific product and

component programmes, executed by Isuzu,

on behalf of the global GM family.

At the end of 2002, following a period

in which Isuzu had experienced substantial

financial losses, the relationship was

completely rearranged, with GM writing

off its 49-percent shareholding, and

subsequently investing US$ 80 million

for a 12-percent holding in a financially

restructured Isuzu. Several projects and

operations were then grouped together

into a joint venture named GMI Diesel

Engineering Limited, which ring-fenced

activities mainly related to the manufacture

and supply of diesel engines to GM

operations located around the world.

Now, at the end of March, 2006, comes

the news that General Motors has been

actively seeking buyers for some of its

remaining 7,9-percent stake in Isuzu. The

reports named industrial group and trading

house Mitsubishi Corporation (which already

holds 0,2 percent of Isuzu shares), trading

house Itochu Corporation (0,7-percent

shareholder) and Mizuho Corporate Bank

Limited (2,8-percent shareholder) as the

interested potential buyers.

Subsequently, the sale of GM’s entire Isuzu

shareholding to these three entities has been

confirmed, accompanied by a statement that

the two vehicle manufacturers would continue

to cooperate in the mutual supply of vehicles

to each other (Isuzu is more of a supplier to

GM than vice-versa).

GM’s exit from holding a financial stake in

Isuzu in 2006 raised many eyebrows, but

was echoed in Ford’s sale of nearly all its

Mazda shareholding in 2010. These events

were a portent of hard times ahead for the

North American giants, with both GM and

Chrysler entering Chapter 11 bankruptcy

protection in 2009.

Isuzu was obliged to re-organise its

US truck business as a result, but has

subsequently retained some ties with GM

through a light commercial product-related

joint venture.

Toyota used the opportunity to take a

5,9-percent stake in Isuzu, but has shown

little appetite to develop any product-based

relationship – seemingly to protect Hino’s

interests. Rumours of some financial

re-engagement between GM and Isuzu still

surface from time to time.

eUROPeAn vAnS ARe GOOD (SHAReD) BUSIneSSIf anybody finds the complex relationships

between vehicle manufacturers difficult to

follow, our advice is: stay well away from any

attempt to unpack the European van scene!

Integral panel vans are big business on that

continent, and, according to recent reports,

growing fast.

In the United Kingdom (UK) alone, during

2005, the van market between 2,8 and

6,5 t gross vehicle mass totalled 144 561

units, a four percent increase on the previous

year, which, in turn, was 20 percent up on the

2003 volume.

Could there be more to come from Navistar International?

GLOBALFOCUS

Global FOCUS is a monthly update of international news relating to the commercial vehicle industry. It is compiled exclusively for FOCUS by Frank Beeton of Econometrix. Do you have a comment or thought you would like to share based on this column? Visit www.focusontransport.co.za and have your say.


GLOBALFOCUS

The potential confusion arises because

most of these vans tend to look very similar,

with short noses and square rears, and vehicle

manufacturers have identified this category as

a low-risk area for cooperative ventures.

Hence, we have the Mercedes-Benz

Sprinter, and Volkswagen LT with common

structures (although the engines are

different), the Sevel joint venture which

builds the front-wheel-drive Fiat Ducato,

Citroën Jumper and Peugeot Boxer models

(again with some variation in power plant

offerings), and the General Motors Europe/

Renault (and therefore, by association, Nissan)

arrangement which produces the Vivaro/

Trafic/Primastar, and Movano/Master/

Interstar ranges.

In 2006, we made the first of our many forays

into the European van community. Since then,

we have provided regular updates as new

generations of product emerged. Most of the

alliances still hold, although Mercedes-Benz

and Volkswagen are headed for “divorce” in

2016.

This may well lead to new alignments,

particularly as Daimler and Renault-Nissan

are progressively rolling out increased levels

of model-specific cooperation, and Fiat has

shown some signs of changing allegiance from

Peugeot/Citroën to Renault. The Mercedes-

Benz Citan light van has already sprung out

of the Renault Kangoo/Nissan 200 family,

and Toyota has started van collaboration

with Peugeot/Citroën. Watch this subject for

future developments.

MAn AnD SCAnIA … CAn IT HAPPen?Since the period around the advent of the new

millennium, when the final shape of the newer

major motor industry conglomerates such

as DaimlerChrysler and Renault-Nissan-Volvo

became apparent, there has been a feeling

among observers of the heavier commercial

vehicle element of the industry that at least

one more major gathering together of

manufacturers was still to take place.

Currently, there are just a few “independent”

players left in the trucking arena, including Fiat-

owned Iveco, Scania (18,7 percent owned by

Volkswagen), MAN (which has recently formed

a technological alliance with also-independent

Navistar International in the USA), Tata (which

bought bankrupt Daewoo’s truck interests),

Hino (owned by Toyota, and cooperating to a

limited extent with Scania) and Isuzu (recently

“divorced” from equity ownership by General

Motors, but with business links still retained).

On Monday, September 18, 2006, MAN

shook up the trucking world when it declared

its interest in acquiring Scania for €9,6 billion,

with the precondition that it wished to gain

control of at least 90 percent of the Swedish

truck maker’s shareholding, before executing

the buyout. Based on historic performance,

the resulting conglomerate would have

become Europe’s biggest truck maker with

roughly 28 percent of the continental market,

edging out global leaders DaimlerChrysler and

Volvo in this key geographic area.

The offer was timed for maximum impact,

with the industry gathering for the opening of

the IAA show in Hannover, arguably the most

important heavy commercial vehicle exhibition

in the world, later that same week.

Almost immediate rejection of the offer

was forthcoming from the Scania board, as

well as its major shareholders Investor AB,

and Volkswagen (which controls 34 percent

of Scania’s voting rights). The sole positive

voice was that of Renault, a five percent

shareholder, possibly as a hangover from

Volvo’s EU-blocked 1999 bid to acquire Scania.

This was only the beginning of a long and

often bitter power struggle, which involved

MAN, Scania, Volkswagen and even Porsche.

Bids and counter-bids were made, and

rejected, until Volkswagen eventually decided

it had enough of the bickering, banged heads

together, and took control of the lot!

Full control of MAN was achieved in 2012,

and Scania in 2014. The Volkswagen group

now threatens to become the world’s largest

vehicle manufacturer and a very significant

force in the commercial vehicle business.

There is still work to be done on optimising the

global footprint, however.

DAIMLeR CHRYSLeR’S GLOBAL enGIne PLATFORM BReAKS COveRDaimlerChrysler has released some

preliminary information regarding its planned

global engine platform for heavy trucks.

Intended to eventually replace the separate

ranges of engines currently manufactured by

Detroit Diesel, Mitsubishi Fuso, and Mercedes-

Benz in Germany and Brazil, the worldwide

Heavy Duty Engine will initially be built as a

14,8-litre unit by Detroit Diesel at Redford,

Michigan, for fitment in Freightliner products.

Manufacture of this version is

scheduled to start during 2007, following a

$US 275-million upgrade of the Redford plant.

This will be followed by a 12,8-litre version

for the European market, which is scheduled

to enter production three years later at

Mannheim in Germany. While manufacture

of the base engines for world markets will

continue at Redford and Mannheim, final

dressing and adaptation to local market

requirements will be carried out at Kawasaki,

Japan, and São Paulo, Brazil.

Ultimately, the six-cylinder in-line HDE family

will be extended to include 9,9, 12,8 and

15,6-litre displacement units, developing from

185 to 480 kW (248 to 644 hp), and up to

3 000 Nm of torque, and is intended to

replace eight different engine types being

produced globally by group companies.

DaimlerChrysler was subsequently dissolved,

and Mercedes-Benz, Freightliner, Fuso and

Western Star grouped together as Daimler

Trucks. The Heavy-Duty Engine Platform

(HDEP) was a very significant development, for

a number of reasons.

First, it explained the rationale behind

removing Detroit Diesel from the global “loose

engine” business to become a sole supplier

to the Daimler brands. Second, it supported

the view that global truck-making partnerships

would only work if large-scale component

rationalisation was the goal. And, third, it

reflected a strategy to break down regional

preferences which enabled the global strategy

to work.

The strategy is still rolling out, but its

success is ensured and major competitors,

such as Volvo, are following suit. »



vOLvO BUYS (ALL OF) nISSAn DIeSeLIn the June 2006 Global Focus, we detailed

Volvo AB’s new shareholding arrangement

with Nissan Diesel Motor Company. In essence,

Volvo had purchased a 13-percent controlling

stake in Nissan Diesel out of the previous

Nissan Motor Company shareholding, and

had taken a four-year option to procure the

six-percent balance still remaining in Nissan’s

corporate hands.

Then, on September 25, 2006, Volvo

exercised its option to buy the balance of

the Nissan stock, and also agreed to buy

additional preferred shares in Nissan Diesel

held by Mizuho Corporate Bank, Nissan Motor,

Resona Bank, and Mizuho Trust and Banking.

Upon conversion of all these shares to

common stock, which was due to take place

between April 2008 and April 2014, Volvo’s

shareholding in Nissan Diesel would have

reached an eventual level of 47,4 percent,

making it by far the largest individual

shareholder.

It was also announced that Nissan

Diesel was to be fully integrated into the

global Volvo Truck family, although it would

retain its individual corporate and product

identity, presumably in much the same way

as Renault Trucks and Mack had done when

they had been absorbed into the Volvo Group.

Then, on February 19, 2007, came the

announcement that Volvo had decided to

expedite the process, by offering just over

$US 1 billion for all the remaining Nissan

Diesel shares.

Subsequently, Nissan Diesel’s board of

directors expressed its support of the offer,

and, subject to the necessary approvals

from the anti-trust authorities, Volvo should

secure 100 percent effective ownership of the

Japanese truck maker by the end of March,

2007.

We had long been puzzled by Volvo’s apparent

lack of interest in Nissan Diesel. It first appeared

that this relatively small, but highly competent,

Japanese truck manufacturer, had become

an orphan of the complex Renault-Nissan-

Volvo merger and reorganisation process that

started as far back as 1999.

However, all that was to change, and,

after the transaction described above,

the company was renamed UD Trucks

Corporation in 2010 (presumably to break

the previously too obvious Nissan linkage). It

has since been fully integrated into the Volvo

AB family, and commenced a progressive

process of repositioning to fit better into the

group dynamic.

FORD CARGO LIveS OnAt the beginning of the 1980s Ford was

a significant force in the South African

truck market. Its D Series cruiserweights,

built in the UK, had a loyal following in the

local distribution and public sectors, while

the Louisville heavy haulers from Kentucky,

USA, competed strongly with other brands

offering the same Cummins/Fuller/

Rockwell driveline aggregates that were

highly popular with long-haul truckers.

However, by the end of that decade,

Ford was out of the local heavy truck

business, and was only offering a badge-

engineered Mitsubishi Canter for nominal

participation in the medium commercial

segment.

Despite the sale of Ford’s European

truck interests to Iveco, and the subsequent

disposal of the Louisville Line to Daimler,

Who could forget the MAN/VW/Scania saga?



that renamed it Sterling, in 1997, the

Cargo name, and shape, has not died. It

still lives on in vehicles sold by Freightliner

in the US, that took over the Sterling

version when that brand was axed in 2009,

and Ashok Leyland in India, that obtained

rights to the design through its earlier

relationship with Iveco.

Even more surprisingly, Ford has

continued producing recognisable Cargo

products, under various nameplates, at Ford

operations in Turkey, Brazil, Argentina and

Venezuela. This information has all emerged

in research since our attention was drawn to

an announcement, in May, that a completely

new Ford Cargo series was being launched in

South America.

We still don’t know the full extent of the

importance of this thread, which first

surfaced in mid-2011. We subsequently

discovered that it had links to Ford’s truck-

related activities in Turkey and China,

and suspect that it signals a rekindling

of the manufacturer’s involvement in

the broader global truck market.

Ford has changed its global profile

substantially since adopting its “One

Ford” strategy in 2006, and has

also moved significantly forward

on the integral panel van front.

Watch this one carefully!

nAvISTAR – THe GOOD, THe BAD AnD THe UnCeRTAInLike many people in the South African truck

industry, Global Focus continues to be

puzzled by the uncertainty surrounding the

fate of International trucks in South Africa.

Navistar’s recent litany of ill fortune started

with the termination of its long-running

arrangement with the Ford Motor Company

to supply PowerStroke diesel engines for the

latter’s F-Series Super Duty pickups and van

models.

Just prior to that settlement, however,

the industry was abuzz with news that iconic

yellow metal manufacturer Caterpillar Inc.

had agreed to cooperate with Navistar on

engine platforms, and the introduction of a

Cat-branded vocational heavy-duty truck in the

North American market.

This resulted in the formation of a 50/50

joint venture, named NC², which was also

intended to pursue global commercial truck

opportunities overseas, with target markets

identified as Australia, Brazil, China, Russia,

South Africa and Turkey.

Shortly thereafter, plans also emerged

for global cooperation with Jianghuai

Automobile Company (JAC) in China,

recognising the growing importance of

China as a market and manufacturing

base for both trucks and engines, and

the consolidation and expansion of the

Mahindra Navistar Automotives Limited

joint venture in India, which had first been

established in 2005.

However, in September 2011, there was

a surprise announcement that NC² was to

become a wholly owned Navistar subsidiary,

which, presumably, ruled out subsequent

direct involvement from the Caterpillar

company, other than its continued sourcing

of the Cat-branded vocational trucks for the

North American market, and the offshore

use of “Cat” branding on certain products,

namely a series of International-built truck

tractors for the Australian market.

Subsequently, Navistar International

Corporation also announced the sale of its

shares in Mahindra Navistar Automotives

Limited, and Mahindra Navistar Engines

(Private) Limited, to its erstwhile Indian

partner, Mahindra & Mahindra Limited.

Thus, over a short period, a highly

promising global expansion strategy

seemed to have disintegrated, with only the

JAC arrangement, covering the Chinese

manufacture of Euro-5 MaxxForce engines,

still in force.

By 2014, we had become aware that

Navistar International had very serious

corporate issues related mainly to non-

compliance, by some of its engines, to US

emission requirements.

As detailed above, an ambitious earlier

strategy of global expansion through joint

ventures had unravelled, and we even lost the

iconic International brand as a supplier of new

trucks to the South African market.

We continue to be puzzled by Navistar’s

efforts to build a presence for Cat-branded

trucks in Australia, while the 100-unit per

month South African business was just

allowed to fade away. Maybe the final chapter

in this most unfortunate saga has yet to be

written! |FOCUS

There is still much to come from Ford’s ongoing truck-related activities.

Global FOCUS is a monthly update of international news relating to the commercial vehicle industry. It is compiled exclusively for FOCUS by Frank Beeton of Econometrix. Do you have a comment or thought you would like to share based on this column? Visit www.focusontransport.co.za and have your say.


HAULSSHORT

DOnGFenG-vOLvO Jv OFFICIAL

HALF A TOnne OF STeALTH

Dongfeng Commercial Vehicles Co., Ltd. (DFCV) was officially

established at the end of January; exactly two years after

the Dongfeng Motor Group and AB Volvo signed a master

cooperation agreement to form a 55/45 commercial-vehicle

joint venture in China.

According to DFG chairman, Xu Ping, the establishment

of the new joint venture will enhance the competitiveness

of DFCV’s core business and strengthen its research and

development expertise in complete vehicle and key powertrain

components. It will also actively expand its overseas business,

which will increase the competitiveness of the Dongfeng brand

in the global market.

Utilising the technologies and expertise of both shareholders,

DFCV will develop, manufacture and sell Dongfeng-branded

vehicles in the medium- and heavy-duty truck, bus, special-vehicle

chassis, engine and transmission sectors. The company will

serve both domestic and overseas customers and develop its

operations to meet the needs of a growing overseas customer

base.

Olof Persson, president and CEO of Volvo, says: “The

establishment of DFCV entails a fundamental change in the

Volvo Group’s opportunities in the strategically key Chinese

truck market, which is the largest in the world. Together with

Dongfeng, we will build a globally competitive company with

excellent potential for growth and profitability inside and outside

China.”

At the launch ceremony, DFCV announced its strategic vision

– From Chinese Dongfeng to global Dongfeng – with a three-

step roadmap to: remain a leading Chinese truck brand; develop

a solid presence in key growth markets; and, in due course,

enter mature markets and become a globally recognised and

respected brand.

“DFCV will cooperate based on the principles of respect,

trust and win-win. We are dedicated to strengthening our

leading position in China and making Dongfeng Trucks a well-

known global brand,” concludes Huang Gang, president of DFCV.

Nissan has launched the NP200 Stealth, which it says has “head-turning

looks” (despite the name) and will combine the practicality of the NP200 with

a unique design and luxury upgrades.

It comes standard with air-conditioning, anti-lock braking system (ABS) and

two airbags. It will also be identified by its special colour scheme, featuring

dark grey techno paint. A nudge bar with a darkened steel finish is added to

fit below the colour-coded grille frame. Nissan has further extended the gap

between the standard NP200 and the Stealth by fitting charcoal black alloy

wheels with red accents in the hubs, dark side and rear fitted Stealth decals

and dark tinted smash-and-grab protected windows.

Thoughtfulness also extends to the interior of the NP200 Stealth. Nissan

has added an Alpine radio with Bluetooth and USB connectivity. The seats are

upholstered in special eco leather with Stealth-embroidered logos.

It features a 1,6-litre petrol engine and maintains its payload of 800 kg.

The R168 000 price tag includes Nissan’s six-year/150 000 km warranty.

Rodney Selesnick has joined the team at Powerstar as senior head of sales,

bringing with him more than 15 years’ experience in the motor industry,

especially in sales, parts and services. “Powerstar has complete faith in

his abilities and leadership skills, and looks forward to a great future, with

increased growth in the business,” says Bob Wang, Powerstar CEO.

“I intend to grow and strengthen the dealer network and will also focus on

sales training, to ensure that the sales team and our dealers are up to speed

with our product offerings. This will ensure that we can offer our clients the

best possible sales and aftermarket service,” says Selesnick.

“It is going to be a challenging year, off the back of previous mine

strikes and current power shortages. However, Powerstar is extremely

optimistic about potential growth in our market segment, especially since the

introduction of the new Powerland product range, which offers both highly

affordable transport solutions, as well as aesthetically pleasing lines,” he adds.

Selesnick’s appointment came after Mark Beukes left the company. “Mark

brought about many positive changes to the business and its operations, which

are evident in his success and track record in terms of sales volumes. Mark

was always positive about the business and was a great ambassador for the

Powerstar brand,” says Wang.

Xu Ping and Olof Persson make the Dongfeng – Volvo joint venture official.

neW BLOOD AT POWeRSTAR

??????????????


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FORD exPAnDS vAn RAnGe

Good news for fans of the “Blue Oval!” The Ford Motor

Company of Southern Africa (FMCSA) has extended its

popular Transit Custom and Tourneo Custom range,

adding three all-new models.

The Tourneo Custom Limited short wheelbase (SWB)

has been introduced to meet customer demand for a

high-powered and more luxurious version of this model.

It uses a more powerful 2,2-litre Duratorq TDCi engine,

rated at 114 kW of power (at 3 500 r/min) and

385 Nm of torque (at 1 600 r/min). It’s claimed to

consume 6,5 l/100 km on the combined cycle.

This model is further distinguished by its high level of

standard specification, including: full exterior colour coding,

automatic headlamps, rain-sensing windscreen wipers,

an electrochromatic rear-view mirror with integrated

camera display, leather seats and side rear window blinds.

Only available in SWB configuration, this model retails

for R485 000.

The Transit Custom Kombi Van – available in Ambiente

long-wheelbase (LWB) and Trend SWB configurations

– has been added to appease buyers that require

load-lugging ability as well as the capability to safely

accommodate passengers.

Both models can seat six people, while the

Ambiente LWB model offers 4,35 m3 of load

space. The SWB Trend model offers 3,47 m3,

accessible via dual side loading doors with running

boards.

Standard specification closely mirrors that of the

current Transit and Tourneo Custom Ambiente and

Trend models. The two models are priced at R385 000

and R397 000 respectively.

BRIGHT STAR ReveALS 2014 ReSULTS

Mercedes-Benz South Africa (MBSA) revealed its annual revenue

for the 2014 financial year at TruckStore in Centurion during

February. The MBSA group, a subsidiary of Daimler AG, reported

a five-percent increase in revenue with a total income of over

R45 billion as opposed to an income of just over R43 billion in the

2013 financial year.

“Although 2014 has seen growth, we had to prepare ourselves

for the future, which also costs money. Another factor was the

headwind we experienced in the exchange-rate situation,” explains

Herbert Werner, CFO for MBSA.

The Daimler commercial vehicle business delivered an

excellent performance during 2014. The Daimler truck division

(including Mercedes-Benz, Freightliner, Fuso and Western Star)

sold over 4 250 units during 2014, which was an increase of two

percent over the previous year. Mercedes-Benz trucks on its own

revealed an exclusive growth of 8,25 percent, outperforming the

overall market growth of 5,18 percent.

Kobus van Zyl, executive director Daimler Trucks and Buses

South Africa, adds: “With the launch of the Fuso Canter LIFT,

Daimler Trucks and Buses achieved the best sales for Fuso in

the past seven years, offering customers a truck that sets the

benchmark in safety and economy.”

Despite a two percent decline in sales during 2014 for

the Daimler bus division, it still supplied the Go George public

transport project with a total of 64 busses. All the buses feature

Euro-5 engines.

“We are delighted with the commitment to public transport

shown by government through the increased number of tenders

published over the last 12 months,” says Van Zyl. “During this year

we will commence with the delivery of compressed natural gas

(CNG) and dual-fuel buses,” he continues.

The van division also has a lot to be excited about this year,

with two new Mercedes-Benz

vans arriving on South African

shores in 2015. The V-Class

is expected to arrive in

South Africa in June, with

the new Vito following closely

in July.

“The introduction of the

V-Class is testament to our

mandate to continuously

increase functionality, comfort

and style across our range

of vehicles. Its versatility

and safety credentials will

certainly ensure that this

vehicle becomes a future icon

among South Africans,” says

Nicolette Lambrechts, vice-

president of Mercedes-Benz

Vans South Africa.

Above: Arno van der Merwe, CEO and executive director; manufacturing, for Mercedes-Benz South Africa (left) and Kobus van Zyl, executive director, Daimler Trucks and Buses South Africa, show off a special Freightliner Argosy.

??????????????


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SUBSCRIBE TO FOCUS On TRAnSPORT AnD LOGISTICS

YeS! Please add my name to the FOCUS On TRAnSPORT & LOGISTICS mailing list for 12 issues per annum at R998,00 including

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Fax to 011 782 1073 or post to PO Box 957, Fontainebleau, 2032

Vartan Vartanian (left) and Ian Cillié celebrate 100 years of SKF in South Africa.

SKF HITS 100

April 12, 1914, marked an

auspicious day on South Africa’s

mining and industrial calendar when

SKF opened its doors at number

23 Pritchard Street, Johannesburg.

This global knowledge engineering

company, then known as SKEFKO

(South Africa) Ball Bearing Company

Limited, went on to become Africa’s

market-leading specialist in the

delivery of innovative, world-class

product and service solutions.

To celebrate this 100-year

milestone, SKF South Africa

hosted a special customer day

in the Solutions Factory based at

the company’s headquarters in

Boksburg, Gauteng.

The formal proceedings included

presentations by SKF South Africa’s

managing director, Ian Cillié, who

also introduced SKF president:

industrial market regional sales and

services, Vartan Vartanian.

Special guest, economist Mike

Schussler, provided a glimpse into

the economic future of South Africa

and the rest of the African continent.

After key SKF customer,

Vesuvius, shared the company’s

SKF experience, SKF Solutions

Factory manager, Sarel Froneman,

invited guests on a guided tour

through the facility to experience

SKF’s engineering knowledge, core

technologies and capabilities – all

combined under one roof.

CROWn WORLDWIDe CeLeBRATeS 50 YeARS

In February, Crown Worldwide, the largest private

logistics company in the world, celebrated its 50th

anniversary with festivities that spanned the globe.

The company was launched by founder Jim

Thompson from a tiny cubicle in Yokohama, Japan, in

1965, but it has grown into a corporate giant with a

turnover of more than US$ 800 million (R11,5 trillion).

It now provides transportation, mobility and

relocation services, logistics and storage services in

some 60 countries. Its brands include Crown World

Mobility, Crown Relocations, Crown Fine Art, Crown

Records Management, Crown Logistics and Crown

Wine Cellars.

Thompson, an American entrepreneur, who is

based in Hong Kong, marked the anniversary on

February 4, by presenting the mayor of Yokohama,

Fumiko Hayashi, with special tributes to celebrate the

founding of his business in the Japanese city.

He said: “I started the company in 1965, from

small beginnings and with very little capital – so to see

it grow into an international global business is very

special. It’s really a huge anniversary that I didn’t think

I’d ever see. I’m very proud of all the people that helped

us to get to this point.”

Thompson’s visit was the first in a long list of

events to mark the landmark anniversary of Crown

Worldwide. Each of the company’s 265 offices across

the world celebrated in their own way, including taking

part in a “Golden Relay” of events to raise money for

charity.


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nAAMSA

Light Commercial Vehicles < 3 501 kg Total: 13 460AMH 624Fiat Group 49Ford Motor Company 2 428GMSA 2 346GWM – estimate 250JMC 54Mahindra 172Mazda South Africa 87Mercedes-Benz SA – estimate 18Mitsubishi Motors SA 43Nissan 2 500Peugeot Citroën SA 13TATA 146Toyota 4 287Volkswagen SA 443

Medium Commercial Vehicles 3 501 – 8 500 kg Total: 637AMH 11Fiat Group 3Ford Motor Company 14GMSA 106Iveco 65JMC 23Mercedes-Benz SA – estimate 166Peugeot Citroën SA 2TATA 40Toyota 85Volkswagen SA 105Volvo Group Southern Africa 17

Heavy Commercial Vehicles 8 501 – 16 500 kg Total: 280FAW 39GMSA 51Iveco 4MAN 8Mercedes-Benz SA – estimate 40TATA 35Toyota 55Volvo Group Southern Africa 88

Extra-Heavy Commercial Vehicles > 16 500 kg Total: 532Babcock DAF 16FAW 9GMSA 36Iveco 62MAN 55Mercedes-Benz SA – estimate 288Powerstar 17Scania 133TATA 29Toyota 23Volvo Group Southern Africa 152

Buses > 8 500 kg Total: 72GMSA 1Iveco 2MAN 45Mercedes-Benz SA – estimate 15Scania 11TATA 7VDL Bus & Coach 2Volvo Group Southern Africa 4

*Source: National Association of Automobile Manufacturers of South Africa (Naamsa).

cOMMerciaL vehicLe saLes repOrT fOr January 2015Note: For the time being, Great Wall Motors SA (Pty) Ltd (GWMSA) and Mercedes-Benz SA (MBSA) will only report aggregated sales data. The GWMSA and MBSA commercial vehicle market split volumes are estimates based on historical trends and forecasting techniques. The totals listed below do not include MBSA figures.

On bus and cOach

Cape Town’s BRT a leader in Africa

Volvo buses are electrifying

how

helps Move cApe town

gOLden arrOW


BUSInDUSTRY

it was announced last year that,

despite its reputation as a mecca for

the jet set to get away from it all, Cape

Town is officially South Africa’s most

congested city. TomTom’s fourth annual

global traffic index measured over 95 000 km

of roadways in South Africa. Cape Town with a

congestion level of 27 percent, ranked 33rd

out of 138 global cities measured.

(You’re probably wondering about

Johannesburg, well it measured 25 percent

and was rated the 48th most congested

city. That’s still nowhere as bad as the most

congested city, Moscow, at 74 percent.)

Chances are that Cape Town will hold on

to its new title when the report is repeated

this year. Clearly, the city’s residents are

increasingly in need of public transport.

“The bus industry in the Cape Metropole

is undergoing significant changes at the

moment as further phases of the City’s bus

rapid transit (BRT) system are introduced.

Despite this, there is still a significant under-

provision of public transport options for

thousands of Capetonians,” says Francois

Meyer, GM for Golden Arrow Bus Services

(GABS).

GABS is Cape Town’s oldest operating

bus company. In 2013, it became an official

vehicle operating company (VOC) for the City

of Cape Town’s MyCiTi service. Through its

subsidiary, Table Bay Rapid Transit (TBRT), it

operates the trunk service along the Atlantic

corridor from Table View to the central

business district (CBD), as well as services

from the CBD to Sea Point and Camps Bay.

GABS is, however, operating at capacity,

says Meyer. With the city’s increasing

congestion and urban sprawl, adhering

to timetables is becoming an increasing

challenge, requiring more resources to

operate existing services.

“There is a dire need for additional buses.

On a national, provincial and metropolitan

level there are severe financial constraints,

which are delaying implementation of new

and additional services,” he notes.

Clearly it is now more difficult than ever

to provide the service commuters expect.

How, among obstacles like increasing

congestion levels, drivers’ strikes

and volatile fuel prices, does one offer

consistent service levels to commuters

who desperately need reliable, efficient

ways of getting from A to B?

For GABS, part of the solution is to

implement stringent cost controls and

With increased congestion levels and heightened commuter needs, Cape Town is certainly in the transport

spotlight. We speak to one of the city’s most prominent operators, to see how it is handling the scenario

tiMeschanging


BUSInDUSTRY

increased internal processes of quality

management.

“Operators of public transport services

have to be extremely disciplined in every

aspect of the service and, at all times,

focus must be on the passenger and what

the passenger wants. We have learned

through our 154 years that the only way to

offer consistent, high-quality services is to

micromanage every aspect in the logistics

chain,” Meyer points out.

The need for reliable, safe, cost-effective

transport therefore drives the GABS

business. The company’s approach to change

and innovation is to balance it with the

specific needs of its passengers. That said,

in its drive for increased efficiencies, modern

technology is beginning to play an increasingly

important role.

“The current trend is to move towards

automation in terms of on-board operating

and maintenance systems. This has opened

a world of possibilities for diagnostics and

recording statistical information that can

be used to better understand our fleet.

Electronic ticketing systems are also

being investigated, and Golden Arrow is

concertedly renewing its fleet and testing

new vehicles in the process,” Meyer

remarks.

Aside from GABS, Meyer points out

that there are critical issues facing the

South African commuter bus industry, which

government needs to address.

“Changes to strategic personnel within

national government departments have led

to a loss of institutional knowledge and lack

of policy formulation. Ideally, personnel should

enjoy a longer tenure in order to ensure

continuity.

“In this vein, policy finalisation and the

implementation of long-term operating

contracts is the single most important factor

affecting bus companies in this country …

Operators desperately need security to invest

in their businesses, which these will give,”

he says.

If there is one city in the country that

currently requires its transport operators

to go above and beyond, it’s Cape Town. In

conclusion, Meyer offers some friendly advice

to local bus operators.

“First, the operator’s business has to be

on a sound footing and healthy at its core.

Operators then need to be in touch with

the environment that they serve. They need

to have good relationships with role players

in the industry, and should also play an

active role in institutions such as universities,

chambers of commerce and industry

associations in order to keep abreast of

trends.

“In addition, operators need to employ

the right kind of people with the right skills to

be able to manage new developments in the

industry,” he concludes. |FOCUS


GLOBALBUS

back in 2013, we reported

on Volvo Bus moving beyond

hybrid drivelines to the “plug-

in” system, where battery

recharging could take place independently

of the normal hybrid’s internal combustion

engine. By then, the concept of hybrid and

alternative driveline buses had already gained

considerable momentum.

Field tests of the new plug-in hybrid

system commenced in Volvo’s home town

of Gothenburg, Sweden, during May 2013,

using three test buses equipped with roof-

mounted collector gear.

The parallel hybrid system, carried over

from the original Volvo Hybrid design, made

it possible for the bus to operate exclusively

on electric power at lower speeds, and

progressively bring in the on-board, four-

cylinder diesel engine at higher speeds, or

for recharging the batteries.

Subsequently, the Volvo Group announced

that it was also studying inductive charging

technology, where the vehicle draws current

from under the road surface, and that it was

developing a proposal to construct a 300 to

500 m electric road to test the concept – also

in its home town of Gothenburg, during 2015.

The proposed programme was to

include the building of a section of road

equipped with wireless charging technology,

and to provide vehicles which use on-board

batteries to receive the available charge

while passing over the enabled section of

“electric road”. It has subsequently been

announced that one of the stops on this

proposed ElectriCity emission-free route is

to be placed inside a building.

Late last year, Volvo Bus signed a

global partnership agreement with ABB

Technologies of Switzerland to secure

the supply of standard-based e-bus fast

chargers for electric-hybrid and full-electric

buses. The associated automatic connection

system will be located in the bus roof,

and will connect with the fast charger at

selected charging stops.

The first joint project to be executed

under this agreement will involve the

operation, from 2015, of 12 Volvo Electric

Hybrid buses by Sales-Lentz in Luxembourg.

This operator was the first European user of

Volvo Hybrid buses in 2009, and has clearly

embraced electric buses as its intended

direction for the future.

Volvo Buses, in turn, has indicated that

it has sold almost 1 600 hybrid buses

to date, and is moving towards increased

electrification of its products, to provide

society with full electro-mobility. To this end,

it launched its 7900 Electric Hybrid bus

at last year’s IAA show in Hannover, thus

industrialising the plug-in technology that

had previously proved to be successful in the

2013 Gothenburg test.

This model differs from the earlier 7900

Hybrid low-floor bus in that it has a larger

battery package, and a collector installed in

the roof. Battery charging is carried out at

route termini, and can be completed in six to

ten minutes. Volvo claims that noise levels

of its Electric Hybrid (at some 65 decibels),

is similar to normal conversation levels.

Series production is due to commence in

early 2016.

FRANK BEETON reports that Volvo Bus is to start full production of hybrid-electric buses in 2016, and

on the progress of India’s urban bus fleet renewal programme

fUll electrificAtion for

vOLvO bus?


BUSSTOPS

InDIA’S URBAn BUS FLeeT ReneWAL

In December 2005, the Indian government launched

the Jawaharlal Nehru National Urban Renewal Mission

(JNNURM), as a wide-ranging programme intended,

through a process of modernisation, to improve the

quality of life and infrastructure in the country’s major

cities.

The initial phase ran until March 31, 2014. It has

subsequently been followed by JNNURM-II, which was

initially planned to commence in the 2013/14 fiscal

year, but was deferred to the 2015/16 budget period to

accommodate the Indian general election.

Part of the scheme involves the acquisition of large

numbers of new city buses by state transport undertakings.

This has resulted in the placing of substantial orders on

India’s two major domestic bus manufacturers; Ashok

Leyland and Tata Motors.

The Ashok Leyland share of the business is made up

of some 4 000 buses at a value reportedly equivalent to

€190 million (R2,53 billion).

The vehicles to be supplied are a mix of JanBus,

JanBus Midi and Viking SLF models, which are being

delivered to 22 state transport undertakings including:

Calcutta State Transport Corporation; Bangalore

Metropolitan Transport Corporation; Andra Pradesh

State Road Transport Corporation; Jaipur City Transport;

and Pune Mahanagar Parivahan Mahamandal Limited.

Readers may recall that we reported on the launch of

the 12-m JanBus and eight-metre JanBus Midi models in

mid-2014, and noted that they provided a slightly different

perspective on front-engined bus design.

In pursuing a single-step entry and constant low

floor height of 650 mm, Ashok Leyland had opted for

a completely built-up configuration, employing integral,

chassisless construction. This eliminated the cranked

chassis frame that was traditionally used for low-floor bus

designs and the associated capacity-robbing longitudinal

seats over front and rear axles. The JanBus models are

built at Ashok Leyland plants in Ennore and Bhandara.

The Tata Motors portion of the business consists

of more than 2 700 city buses, of a type specifically

designed for the JNNURM programme. They are equipped

with locally-built 6,7-litre Cummins ISBe engines, driving

through Tata six-speed overdrive manual transmissions,

or alternatively, an Allison full-automatic.

The bodies feature an extra-wide passenger entrance,

400 mm floor height, front suspension kneeling function,

closed-circuit television cameras, and an automated

system that announces details of routes, stops and

adjacent services. These buses are being built at joint

venture Tata Marcopolo’s Dharwad and Lucknow

facilities. |FOCUS

MYCITI IS TOPS In AFRICA

Despite the seemingly endless slew of bus drivers’ strikes in South

Africa, the City of Cape Town’s MyCiTi bus rapid transit (BRT) system

has something to be proud of. In January it was recognised, by the

Siemens African Green City Index, as a leader in the field of African public

transport systems.

Cape Town is among the top cities in the Index for the length of

superior forms of transport, such as metro or BRT lines.

According to the MyCiTi website, the report makes specific mention

of the historically underserved West Coast region, the prevalence of

minibus taxis and private vehicles, as well as the poorly maintained rail

system.

“It is with these challenges in mind that the City chose to roll out the

service to the West Coast region first, particularly the previously isolated

areas of Dunoon and Atlantis. The expansion of the service between

the economic centres of Cape Town, Claremont and Wynberg, and

the informal settlements in the south east part of the metro, is also a

necessary development,” it states.

The report rates other key city domains, such as waste management

(including reducing, reusing and recycling waste), environmental

governance, air quality and water as being above average.

The City’s land use practices were also rated well above average –

making Cape Town the only African city to achieve this rating.

“The creation of an inclusive, world-class public transport system,

and of spaces for families to enjoy, or for commuters to travel through

safely en route to their destination, is part of this administration’s aim

to provide facilities, which make all of the people of Cape Town feel at

home,” notes MyCiTi.


HOPPInGOFF

Vaughan Mostert developed a love for public transport early in life, which led to a lifelong academic interest in the subject. He recently retired as a senior lecturer from the Department of Transport and Supply Chain Management at the University of Johannesburg. Through Hopping Off, Mostert leaves readers with some parting food for thought as he continues his push for change in the local public transport industry.

Most comments surrounding

the e-toll report have,

unsurprisingly, been

negative. One newspaper

summed it up quite neatly: “the can has just

been kicked down the road once more”. True,

but let’s cut the panel some slack. Given

the messy run-up to the crisis now facing

the South African National Roads Agency

(Sanral), did we expect anything more than

a patchwork of suggestions that satisfy no

one?

Considering the short timeframe allowed,

this report is a huge improvement on the

mechanistic, formula-based transport “studies”

that have accompanied projects like the

Gauteng Freeway Improvement Project (GFIP),

Gautrain and bus rapid transit (BRT).

The e-panellists have at least emphasised

the human impact of transport schemes – a

refreshing departure from the engineering-

based approach. Who would have expected a

quote from the Moral Regeneration Movement

as early as page three?

One of the main themes of the report is

the lack of alternatives to e-tolls. The biggest

problem, by far, is the pathetic state of public

transport throughout South Africa – the panel

was clearly stung by the condemnation of

inadequate public transport by different groups

representing civil society.

This column has repeatedly stated that

better public transport would reduce the need

for additional road space. We have been fed

the nonsense that, because traffic is growing

at seven percent a year, we need high-speed

railway lines and additional lanes on the

freeway.

We have never bothered to challenge this

myth, resulting in the crisis we now face. Why

is traffic growing at seven percent a year? Well,

as soon as people earn R6 000 a month, they

start using cars. Why? To escape our appalling

public transport. By the time people earn

R20 000 a month, almost all of them go to

work by car. That is our problem, but the report

fails to make the point …

Sadly, it shoots itself in the foot as early

as page seven when it proposes: “Complete

exemption for low-income vehicle owners … this

would cater for students at tertiary institutions

who do not have access to public transport.”

The last thing we should do is encourage

low-income people to use cars! We should

be doing everything to encourage all people,

not only those with low incomes, to use public

transport!

The reference to students is also baffling.

I’ve previously suggested that this group should

be given a discounted bus/train pass for travel

throughout the province. We can’t do that,

however, as there is no provincial network

of formal public transport in Gauteng, nor

anywhere else in South Africa.

Although it says all the right things about

the need to coordinate public transport, a

traffic authority, through ticketing, and so on,

the report is still too polite. Presumably with an

eye on its sponsor, it tells us that “the Gauteng

Provincial Government (GPG) has begun to

make progress in the long battle against

transport inefficiencies and inequalities.”

Nonsense! Let’s highlight the appalling

record of the GPG in public transport …

In 2001, a Council for Scientific and Industrial

Research (CSIR) report was sent to the GPG

recommending a new bus route pattern for

Soweto and surrounding areas. Nothing came

of the report. It needs to be revived.

In late 2007, the GPG created a body called

the Gauteng Transport Management Authority

(of which I was a member). It was disbanded in

2008. The GTMA again submitted the Soweto

report, which was again ignored.

In 2013, the GPG produced a 25-year

transport plan. The public transport component

of the plan refers to 164 bus routes that need

to be introduced. These 164 routes require

8 000 new buses costing R24 billion, plus at

least another R14 billion for bus stations on

740 km of proposed busways.

I suggest that this scheme is as bogus

as e-tolling, Gautrain, and the different BRT

schemes. We can start to achieve the same

results at far lower cost by reorganising the

2 500-odd buses that fall under the GPG’s

control.

While neglecting the basics, the GPG has

nevertheless managed to expend huge effort

and resources on giving us Gautrain, which

costs the taxpayer R77 for each passenger

trip!

Finally, we return to the dismal role of the

academic world in the area of public transport

education, which the e-toll report delicately

refers to as an “emerging field” (page 179).

That’s a nice academic way of saying that we

are clueless. Are we doing anything about it?

Let’s scrap e-tolls, but leave the gantries as a

monument to incompetence, mismanagement

and neglect. Pay off the creditors, raise the

fuel levy, “sort out public transport” (page 182)

and then see what happens. We might be

pleasantly surprised. |FOCUS

What may come of the e-toll

report?

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