transport world africa september/october 2014

Commercial Vehicles Driver Wellness

Supply Chain Logistics Managing Change

Logistics Maputo Corridor

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

Barbara Mommon, CEO, MCLI – Ten years of partnered progress on the Maputo Corridor P26

ISSN 1684-7946 September/October 2014 Vol. 12 No. 5 / R50.00 incl. VAT

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INSIDETHIS ISSUEE

COVER STORYRenault Trucks:

Entering a new era in Southern Africa

P6

onsumeerr

ORYYcks:a in ica

P66

ENDORSED BY

Driver Wellness Managing Change

Maputo Corridor

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Barbara Mommon, CEO MCLI, – Ten Years of Partnership for Progress on the Maputo Corridor P26

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Enteringring a Na New Eew Erara inin SoutSouthernhern AfrAfricaicaRRRRRRRRRReeeeeeeeeennnnnnnnaaaaauuuuuulllllltttttt TTTTTTTrrrrruuuuuuuuuccccckkkkkkkksssssssss

30 10

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36 39

REGULARSEditor’s Comment Inspiration is everywhere! 2FESARTA Implementing uniform loads through Africa 5Cover Story Renault Trucks: Entering a new era in

Southern Africa 6Regional News 8

COMMERCIAL VEHICLESFAW makes history in South Africa 10Light commercials make light work 12

FLEET MANAGEMENTThe quest for employee wellness 14Driving core values 16A great return on investment 17

FUEL Finding the right lubricant at the touch of a button 18

CORRIDORS A decade of partnered progress on the Maputo Corridor 20

WAREHOUSING Inventory movement and control 27

SUPPLY CHAIN LOGISTICSFast-tracking growth in Africa 28

Enabling African growth and expansion 30

Managing change in supply chain evolution 33

SADC urged to take on the North-South Corridor 35

PORTS

Mozambican port propelling the region forward 36

TRAINING Providing relief to skills-strapped industry 38

RAIL TECHNOLOGY The future of railway management in Africa 39

AIR CARGO July air freight volumes expanded 40

1TWA | Sept/Oct 2014

2 TWA | Sep/Oct 2014

EDITOR’S COMMENT

I VISIT A TRANSPORT OPERATOR and hear how

they are uplifting their employees.

I hear how an OEM is assisting the industry in

empowering drivers to help improve the bottom line.

I listen to CEOs from a diverse range of industries talk

about the future and the growth potential in Africa.

I speak to a transport oper-

ator who is buying trucks to

meet the growing expansion

of his company.

I meet a car guard who is

studying to be an engineer.

Inspiration is everywhere.

You do not have to look far

to find it.

I always find it amazing

that, when times are tough,

I come across inspiration-

al stories that always have

the effect of changing my

mindset into a positive one.

Yes, the tough times are still

there but tackling them with a

more positive attitude makes

a world of difference.

I have a friend who says

they have stopped watching

the news and reading news-

papers because it is too depressing. There are inspiration-

al stories out there and we need to feature these as well.

Feel free to send me your inspirational industry stories.

In this issue, I look at driver wellness, a competition

geared towards uplifting truck drivers, a discussion at

the recent Global Community Growth, Innovation and

Leadership event between CEOs, 10 years of the MCLI,

as well as managing change in the supply chain, inven-

tory movement and control, plus the future of railway

management.

As always, a varied and interesting read.

Enjoy!

Simon Foulds

Publisher Elizabeth Shorten

Editor Simon Foulds • [email protected]

Head of design Hayley Mendelow

Senior designer Frédérick Danton

Designer Kirsty Galloway

Contributors Raymond Abraham, Barney Curtis,

Mario Landman, Barbara Mommon

Chief sub-editor Tristan Snijders

Sub-editor Beatrix Knopjes

Client services & production manager Antois-Leigh Botma

Production coordinator Jacqueline Modise

Marketing manager Hestelle Robinson

Digital manager Esther Louw

Distribution manager Nomsa Masina

Distribution coordinator Asha Pursotham

Financial manager Andrew Lobban

Administrator Tonya Hebenton

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

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ISSN 1684-7946 © Copyright. All rights reserved.

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

Editor in action

Inspiration is everywhere!

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5TWA | Sept/Oct 2014

by Barney Curtis, chief executive offi cer, FESARTA

FESARTA COMMENT

The Charter is almost ready for signingThis Load Charter is in some ways similar to the earlier

Load Accreditation Programme, now the Road Transport

Management System (RTMS), in South Africa. It makes

sense to use the experiences learnt from RTMS in the

implementation of the Load Charter.

With the above in mind, a workshop was held in

Kampala, Uganda, on 18 and 19 August, in which all

the related load limits and overloading control matters

tabled and deliberated on. The workshop was hosted by

the Northern Corridor Authority, and funded by the Sub-

Saharan Africa Transport Policy Programme (SSATP).

It is expected that the outcomes from the workshop will

be used in the final recommendations/legislation for mem-

ber states in East and Southern Africa.

FESARTA held its AGM, also funded by SSATP, at the

same venue on 20 August.

Barney Curtis

THE PROJECT was carried out because East

Africa had fallen a bit behind COMESA (Common

Market for Eastern and Southern Africa) and

SADC in keeping its Acts and Regulations up to

date with these matters.

It is an accepted principle between the three Regional

Economic Communities (REC) in the COMESA/EAC/SADC

tripartite alliance that, if one REC led a regional project, it

would be done on behalf of the other two RECs. The other

two RECs would participate in the project and hopefully

adopt the outcomes of the project.

Most of the outcomes of this project had already been

adopted by COMESA and SADC, so there were only a few

(e.g. super single tyre load limits) that these two RECs

needed to adopt. This adoption is still outstanding.

An important point from this project is that the EAC is a

REC that produces Acts of Parliament that supersede the

national legislation in EAC member states. This is unlike

COMESA and SADC, which produce recommendations to

member states.

The outcomes from the project have already been

included in a new EAC Act, and it now remains for EAC

to draw up Regulations to give effect to the Act. It is very

important that the right regulations are drawn up, not only

because they will become law in East Africa, but also

because COMESA and SADC should be adopting them as

recommendations to their member states.

A second important process underway in East Africa is

the drawing up and signing of a Load Charter; an agree-

ment between the transporters and authorities in the mem-

ber states along the Northern Corridor (Kenya, Uganda,

Rwanda and Burundi). The transporters are agreeing to

abide by the load control legislation and the authorities are

agreeing to treat the transporters fairly.

Implementing uniform loads through AfricaIn 2011, the East African Community (EAC) carried out a project to determine the optimal load limits and overloading control procedures for East Africa.

Entering a new era in Southern

Africa

RENAULT TRUCKS

We are very optimistic about our

prospective performance in the

market in 2014,” says Herman

Venter, general manager for com-

mercial sales at Renault Trucks Southern Africa.

“We are aiming to steadily increase our market share

within the next 36 months.”

Renault Trucks is present in over 100 countries

with 14 000 employees globally. Although Renault

Trucks’ primary focus is the design, manufacture

and sale of commercial vehicles, it does a great

deal more than that to ensure its customers’ satisfac-

tion. It aims not only to advise customers during the

decision-making and purchasing processes via recom-

mendations, expert insight and financing solutions, but

also to maintain customer service throughout vehicles’

operating lives.

COVER STORY

“

This is a big year in the history of Renault Trucks in Southern Africa This is a big year in the history of Renault Trucks in Southern Africa with the company launching two new product ranges in October. with the company launching two new product ranges in October.


COVER STORY

Building on the legacy of more than a century of innovative

French trucking know-how since 1894, Renault Trucks sup-

plies transport professionals with the tools they need to more

efficiently conduct their business. The company forms part

of the Volvo Group, the world’s second largest manufacturer

of commercial vehicles, which provides it with access to the

best resources and expertise.

New ranges coming in OctoberIn October 2014, Renault Trucks SA will be introducing the

new C-range intended for light construction and long haul

applications, as well as the K-range, aimed at heavy construc-

tion applications. Renault Trucks currently has the successful

Kerax, Midlum and Premium Loader ranges in its stable.

The manufacturer is currently deploying significant resourc-

es to ensure that the new ranges deliver maximum reliability

for when they are introduced into the country. They are under-

going exacting quality trials and are also

being tested under actual operating con-

ditions. Ruggedness, working comfort,

payload, pulling power, new engines, low

fuel consumption and easy body mount-

ing all make these trucks the perfect tools

for demanding construction businesses.

The cab is one of the most striking fea-

tures offered by these new robust vehicle

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ranges it is more spacious, more comfortable and more

ergonomic with its use of rotating buttons. A step on the

side has been incorporated into the design, allowing drivers

to easily check their loads. The vehicles will also offer fail-

safe ruggedness with reinforced protection for all exposed

parts liable to suffer impacts. The design of the new Renault

Trucks range of vehicles is dedicated to achieving efficiency.

Renault’s designers have chosen to focus on the truck’s role

as a tool serving fleet owners – a tool enabling them to carry

out their assignments as efficiently as possible.

Saving fuel has been a major component of the trucks’

design, resulting in the vehicles’ aerodynamics being modelled

to obtain the highest possible air-penetration performance.

“We believe Renault Trucks supports fleet owners, specifi-

cally in the construction industry, in their contribution to the

development of the region’s economies. Trucks play a truly

vital role in Southern Africa, not just in carrying goods but in

ensuring that a vast range of services continues to operate,”

says Venter.

Expert local supportIn South Africa, Renault Trucks’ dealer network is integrated

with that of Volvo Trucks, and offers customers caring, inno-

vative and efficient support.

With the introduction of the new range, Renault Trucks SA

will also reaffirm the brand’s commitment to its South African

customers, with advanced ser-

vice and aftermarket offerings

introduced with the launch of

the new product ranges.

“As transport operators

expand their operations

throughout the region, we

know our Renault Trucks deal-

ers are there to capture this

market demand and support

customers every step of the

way. We believe our dealers

are experts in their field and

completely customer-focused,

and are able to provide our

customers in the region with

unparalleled support and ser-

vice,” says Venter.

“The new K and C ranges will

create a completely new plat-

form for Renault Trucks SA and

set the brand for the future. We

are working hard to put every-

thing in place for the success

for our customers.”

Renault Trucks dealers are there to capture this market demand and support customers every step of the way

www.renault-trucks.co.za

MAIN IMAGE Renault Trucks Kerax

LEFT Renault Trucks workshop

7TWA | Sep/Oct 2014


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

ACCORDING TO THE DTI, the roll-out of

special economic zones (SEZs) is on track.

Dr Rob Davies, Minister of Trade and Indus-

try, says, “Within the next three months, we

will be passing all the regulations necessary

to establish a SEZ board so that we can go

ahead and establish SEZs. We have already

fast-tracked a couple of them.”

Earlier this year, President Jacob Zuma

approved the Special Economic Zones Bill.

The Bill, which supports a broader-based

industrialisation growth path, also aims to

support balanced regional industrial growth

and the development of more competitive

and productive regional economies. “Simul-

taneously with processing the legislation, we

embarked on a process, together with the

provinces, of conducting feasibility studies on

potential SEZs, some IDZs (industrial devel-

opment zones] and the other forms provided

in the Act.”

Public consultations are underway for the

Harrismith Trade Port in the Free State to

become an IDZ.

To date, five IDZs have been designated,

which are Coega, East London, Richards

Bay, O.R. Tambo and the newly designated

Saldanha Bay, in October 2013. Work is also

well advanced on industrial sector SEZs,

including two potential platinum value chain-

based SEZs – one in the North West and

another in Limpopo.

EAST AFRICA

$223.5 million to boost trade TRADE IN the East African

Community has been given a

boost by the African Development

Bank (AfDB) agreeing to fund the

upgrade of a busy regional road

key to increasing the movement of

goods in the region.

$223.5 million has been granted

by the AfDB for the project.

The road being upgraded runs

from Taveta to Voi in Kenya and

is being rehabilitated to create

another major transport corridor in

the region. This will then link the

Port of Mombasa with northern

Tanzania and landlocked countries

in the region.

Source: AllAfrica.com

MOZAMBIQUE

Mozambique creates fi ve toll roadsFIVE NEW TOLL ROADSin Mozambique look set to be

operational before the end of the year.

Affected are the Matola/Boane, Mar-

racuene/Lindela, Vanduzi/Changara,

Nampula/Nacala and Monapo/Ilha de

Moçambique roads.

Cadmiel Muthemba, from the

Mozambique Ministry of Public Works

and Housing, says, “The development

of public-private partnerships with

the exclusive participation of national

companies will enable those sections

to be maintained by consolidating the

user-payer concept.

Only two toll roads currently operate

in Mozambique – in Maputo province,

managed by South Africa’s Trans

African Concessions, and in Tete with

Estradas do Zambeze.

OVER THE NEXT fi nancial

year, the Department of Trans-

port (DoT) says it will focus its

energy on investing in develop-

ing the country’s road, rail, mari-

time and aviation infrastructure

networks in order to help unlock

the full potential of the economy.

Sindisiwe Chikunga, Deputy

Minister of Transport, says, “In-

tegrating all forms of transport is

key to economic growth.”

The DoT tabled the National

Transport Master Plan at the

end of the second quarter of the

2013/14 fi nancial year, which

Cabinet has since referred to the

Inter-Ministerial Committee for

consultations with the Presiden-

tial Infrastructure Coordinating

Commission.

The plan seeks to integrate dif-

ferent modes of transport, with

the aim of bolstering economic

activity and eventually growth.

Chikunga adds, “With the

DoT’s budget not able to fund

road infrastructure development,

there is need for government to

come up with funding models.

“We have to fi nd a way and

actually begin to discuss the

issue of funding models for

infrastructure development,

particularly roads.

“We believe this is a discussion

that all of us need to participate

in so that we do not merely

criticise when different funding

models are introduced. We

must be able to fi nd the most

effective funding model for our

infrastructure development and

support it.”

SOUTH AFRICA

Investment in road infrastructure will unlock economic growth

SOUTH AFRICA

Special economic zones roll-out

9TWA | Sep/Oct 2014

THE MOMBASA Port Community

Charter (MPCC) is being launched in

East Africa, aimed at enhancing infra-

structural development and improving

effi ciency in clearing cargo.

The MPCC brings together 24 agen-

cies to both coordinate and improve ef-

fi ciencies at the port. Once the MPCC is

implemented, it is envisaged that it will

lead to doubling trade in the region to

KSh2.9 trillion (R350 billion) by 2016.

It is also expected to enhance the

fl ow of transport along the Northern

Corridor from the port through to

Uganda, Rwanda and Burundi. The

commissioning of Berth 19 at the port

is set to increase the container handling

facility. The development of the new

berth, which commenced in July 2011,

has seen the total quay length of the

Mombasa Container Terminal grow to

840 metres.

Construction is also underway for a

second container terminal at the port,

which will have a capacity of handling

1.2 million twenty-foot equivalent

units annually.

The Port of Mombasa connects the

Northern Corridor markets, including

Kenya, Uganda, Rwanda, Burundi, South-

ern Sudan and the eastern DRC.

KENYA

Enhancing effi ciency at Mombasa port

REGIONAL NEWS

SUPPORT FOR THE automotive sector is set to increase

says Rob Davies, Minister at the Department of Trade and

Industry. Davies was speaking during the DTI budget vote in

Cape Town.

“First, we see acceleration in the automotive sector, where

the Automotive Production Development Programme (APDP)

has already supported signifi cant new investment in the sec-

tor. Projected capital expenditure for 2014 is anticipated to

reach a record level of R7.9 billion.”

The work of the APDP has been acknowledged by big

industry role players, such as the National Association of

Automobile Manufacturers of South Africa, who have largely

attributed the relatively high levels of capital expenditure to

this programme.

The APDP’s objective is to raise the volume of cars manu-

factured in South Africa to 1.2 million annually by 2020, as

well as to diversify the component chain. Adds Davies, “In the

coming year, the APDP will undergo an early review. This will

make us take stock of efforts and determine what more can

be achieved in growing the industry in South Africa.”

In other efforts to grow the sector, the Automotive Supply

Chain Competitiveness Initiative was launched last year to

enhance localisation, production and supplier capabilities.

According to Davies, this was proving to be a success and

his department would continue to expand the programme.

“Since the introduction of the Automotive Investment

Scheme (AIS) in 2010/11, public sector-approved incentives

amounted to R6.3 billion and supported investments worth

R23 billion by original equipment manufacturers in the auto-

motive sector.

“The intention of the AIS is to grow and develop the auto-

motive sector through investment in new and replacement

models, as well as the manufacturing of automotive com-

ponents. The objective here is to increase plant production

volumes, sustain employment and strengthen the automotive

value chain.

“Given that automotive comprises 30% of our industrial sec-

tor, with strong linkages to other manufacturing sub-sectors,

the impact of such investment on our domestic economy

is signifi cant.”

Davies says the automotive sector employs over 100 000

people and concludes, “It is an important sector that we will

continue to support.”

SOUTH AFRICA

Increased support for automotive sector

Rob Davies, Minister at the DTI

TRADE MARK EAST AFRICA, which is instrumental in assisting

countries in East Africa improve

the free fl ow of freight through the

region, gives TWA an update on what

is happening in the region.

Northern Corridor

Importers and businesses in Rwanda

and the rest of the Northern Corridor

can soon expect timely and effi cient

services at the Port of Mombasa.

This follows the signing of the Mom-

basa Port Community Charter by

Kenya and the regional public and

private agencies involved in port af-

fairs. The charter, signed at the Port

of Mombasa, is expected to improve

effi ciency and boost trade across

East Africa. The charter will, among

others, aid the establishment of lo-

gistical and transport infrastructure,

improve operational effi ciency and

facilitate regulation and oversight

engagement. Karin Andersson, chair-

person of the board of TradeMark

East Africa, said the port, being the

gateway to numerous countries, will

ease the cost of doing business.

Customs

The single customs territory (SCT),

whose major objective is to overcome

the hurdle of slow and costly move-

ment of goods and services and also

improve the business environment in

the region, is yet to be fully operation-

al even after the lapse of the 1 July

deadline. In the Northern Corridor,

the SCT project has moved on from

its lengthy pilot stage to an advanced

stage, but not all goods have been

added onto it. Tanzania and Burundi,

which make up the Central Corridor,

began implementation on 1 July but

are piloting with only a few products.

Border posts

Local and regional traders using the

Tanzania-Burundi border post will

no longer spend much time cross-

ing the border, under a pilot basis

implementation of the One-Stop

Border Post in Kabanga,Tanzania,

and Kobero, Burundi.

SADC

East Africa update


COMMERCIAL VEHICLES

THE OPENING OF THE latest expansion in local

vehicle manufacturing marked a historic moment

in the South African automotive industry. As the

first South African-built FAW commercial vehicle

rolled off the assembly line at the FAW Vehicle Manufacturers

South Africa production plant at Coega, Jacob Zuma, who

officiated the opening, said the new plant was indicative of

a positive future for the industry. “This is the culmination of

a $60 million investment in the Eastern Cape, as well as

the start of resurgence in the primary automotive industry,

second-tier industries and the creation of many new jobs.”

President Zuma said: “Following our BRICS trade

agreements, this massive investment by a Chinese cor-

poration augurs well for the future of the partnership

between our countries.

“The establishment of the FAW Coega plant has the added

advantage that South Africa remains seen as an investment

target of choice. This is an example

to other global companies, which can

rest assured that the South African

government is doing everything pos-

sible to maintain its world-class offer-

ing as a springboard into unlocking

the potential of the African continent,”

said Zuma. “Our focus in the next five

years is to provide a sustainable energy

mix for the country. Energy security is

key to enhancing South Africa’s global

competitiveness.

“As far as the current strike in the

metal industries is concerned, I trust that this will be resolved

amicably, without violence, reaching a speedy resolution. This

is in the interest of all of South Africans,” Zuma continued.

“Opening the FAW plant here in Coega will remain a

remarkable example of the posi-

tive cooperation that we as South

Africans can attract from foreign inves-

tors. It is imperative to job creation,

our growth and future prosperity,”

Zuma concluded.

Minister of Trade and Industries Rob

Davies, in his address, indicated that

FAW’s decision to build commer-

cial vehicles locally from completely

knocked down kits (CKDs), being

the first OEM to do so across its

entire range in South Africa, is a clear

indication that Government’s immi-

nent plan to extend the Automotive

Production Development Plan to the commercial vehicle

CKD manufacturers, bus manufacturers and local compo-

nent manufacturing industry, will attract further expansion in

the automotive industry.

Qin Huanming, vice-president of the China FAW Group

Corporation, said: “As a shining pearl on the African con-

tinent, South Africa enjoys sound political, economic and

legal systems, as well as excellent infrastructure and abun-

dant labour resources. These favourable conditions have

strengthened FAW’s confidence to invest in South Africa.”

The decision to build the FAW plant in South Africa was

very significant from a global perspective, as it is one of the

most important and largest investments made by a Chinese

entity in South Africa to date. The total investment

was financed by China FAW Group Corporation

and the China-Africa Development Fund together

with FAW Africa Investment Company. This col-

laboration speaks volumes to the growing interest

from global Chinese industry in unlocking the true

African potential.

A number of firsts for FAW Vehicle Manufacturers South AfricaAt a cost of $60 million towards the establish-

ment of the modern, high-quality vehicle produc-

tion plant and its entire associated infrastructure,

it is truly the largest recent vote of confidence in

the local vehicle industry. The Coega plant with

its build capacity of 5 000 units per annum,

represents the first high-quality Chinese man-

ufacturer to set up and contribute on this scale

in the Eastern Cape region.

FAW Vehicle Manufacturers South Africa is

the first OEM to locally build its entire range

FAW makes history in Coega IDZ, and surrounding areas in the Eastern Cape, is set for substantial growth after FAW Vehicle Manufacturers South Africa offi cially opened its vehicle manufacturing plant in July this year.

“This massive investment by a Chinese corporation augurs well for the future of this partnership between our countries.” President Jacob Zuma

Offi ciating the opening of the historic FAW manufacturing plant in Coega earlier this month – Mr Qin Huanming, vice president of the China FAW Group Corporation, President of the Republic of South Africa, Jacob Zuma, and Harris Moodley from FAW South Africa

11TWA | Sep/Oct 2014

COMMERCIAL VEHICLES

of commercial vehicles sold here; 14 models spanning the

medium, heavy and extra-heavy commercial vehicle seg-

ments. Henceforth all FAW trucks in South Africa can carry a

badge of honour: ‘Made in South Africa’.

Future plans include the commissioning of a body-building

facility at the Coega plant. Tipper truck bodies, mixers

and customised trailers will be built in the facility, adjoin-

ing the main plant. FAW will be the first South Africa-based

OEM to offer its body-building facility to other commercial

vehicle manufacturers.

Originally announced in 2012, the decision to construct

the local FAW plant was not one that was taken lightly,

explained FAW Vehicle Manufacturers South Africa: “We

could have gone to Kenya or Tanzania, where FAW has

been present in sales and service for over 30 years. In the

end we chose South Africa because of the infrastructure.

It then came down to a choice between East London and

Coega.” In the end Coega was chosen because, “the infra-

structure is perfect.”

The first phase of the Coega plant, covering 103 000 m2

of land and a 28 000 m2 plant – complete with training

facilities – allows the company to provide its extensive client

base with a sense of pride and patriotism by buying local.

The plant will ramp up to produce 5 000 trucks per annum,

supplying trucks to the South African market, as well as to

the rest of Africa, in both right- and left-hand-drive deriva-

tives. Plans in place estimate that 40% of production will

be destined for the South African territories, while 60% will

be exported.

FAW remains positive about the future and the growth plan

that has been formulated for the FAW brand in South Africa.

FAW, internationally, rose as a result of the political dispensa-

tion in China, which allowed more free-market enterprise and

encouraged overseas exports. “As China grew then,

so will Africa grow now, and FAW is ideally placed

to benefit from the demand for vehicles on the

continent as we have established a solid presence,

where it counts,” concluded Qin Huanming.

South Africa

www.faw.co.za


New vehicles over the next twelve monthsHannes Oosthuizen – brand manager at GWM

HO: There are a number of changes coming to the Steed

line-up, including a new diesel engine, special edition

off-road-oriented models, and additions at the top aimed

at the leisure market. We are confident that we will soon

be offering the most complete and extensive pick-up line-

up available in the South African market. Note that many

derivatives of the current Steed 5 will continue, even with

the addition of new Steed 5E and Steed 6 models.

Dawid van der Merwe – fleet operations manager at

Ford South Africa

DvM: We are launching an exciting new line-up of vehicles

that will expand our commercial vehicle fleet substantially.

We will be entering the two-tonne sector with the introduc-

tion of Transit, which will be available in panel van and

chassis cab derivatives. We will also be introducing the

12- and 18-seater Tourneo bus. A new derivative of the

Ranger, specifically designed for heavy duty work, is also

on the cards in the next 12 months. More will be revealed

later this year.

Ian Nicholls – vice-president of GM South Africa

Operations at GMSA

IN: We launched the sixth-generation Isuzu pickup into

the South African and south-east African markets dur-

ing the first half of last year. The pickup was launched in

East Africa earlier this year and is in the process of being

launched to our left-hand-drive markets in sub-Saharan

Africa. The sixth-generation pickup is assembled at our

vehicle assembly plant in Port Elizabeth. Additionally,

we build and sell the sub-one-tonne Chevrolet Utility,

which has led in its segment of the market for over

9 years in a row.

Veralda Schmidt – manager: media relations

at Nissan

VS: We have just introduced our new Patrol pickup into the

market. This follows hot on the heels of the NV350 panel-

van and NV350 Impendulo taxi. The NV200 seven-seater

combi and panelvan was launched last year. Existing light

commercial vehicles such as the NP200 pickup, NP300

hardbody pickup and the Navara pickup are also holding

their own in the market.

Optimistic about the road aheadHO: Yes, the South African love affair with pickups will con-

tinue, because they fit the way we as South Africans work

and play. Cost is a worry – as these vehicles are becom-

ing increasingly more sophisticated, costs are going up

and affordability may become an issue. Manufacturers will

have to find ways to address this at the lower end, which

isn’t always easy because most of these vehicles are

developed with other markets in mind.

DvM: We want to offer our customers – whether they are

fleet customers or those buying passenger vehicles – the

full range. With almost 70% of all new vehicle sales going

to fleet buyers, the fleet sector is a big segment within

the overall motor industry. There is huge potential with

the increased focus and support to develop business

within South Africa and the SADC states. With an extensive

product line-up, Ford can accommodate individual fleet

requirements no matter the size of the fleet.

IN: In many of the markets in Africa, light commercial

vehicles are a dominant force and this will continue to

be the trend in the future. We are also currently looking

at opportunities to grow production volumes from South

Africa into new markets in Africa – with a key focus on the

light commercial vehicle segment. The sixth-generation

Isuzu pickup, which is assembled in both right- and

Light commercials make Operators are spoilt for choice Operators are spoilt for choice when choosing a light commercial when choosing a light commercial vehicle for their operations. vehicle for their operations. Simon FouldsSimon Foulds speaks to GWM, speaks to GWM, Ford, GMSA and Nissan to fi nd out Ford, GMSA and Nissan to fi nd out what we can expect from them what we can expect from them over the next few months and why over the next few months and why their vehicles are best suited to their vehicles are best suited to your business.your business.

Hannes Oosthuizen

Dawid van der Merwe

Ian Nicholls

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light workleft-hand-drive versions at our South African

production plant, forms an important part

of our growth plans on this continent. We

anticipate that this segment will grow in

the future as more African countries stabi-

lise and accelerate investments into infra-

structure and other areas of the economy.

Transport currently accounts for over 45% of

infrastructural investment (into roads, ports

and so on) on the continent. In South Africa,

we secured a 20% share of the overall light

commercial vehicle market in 2013 and hold

a similar share level this year.

VS: Yes, we are optimistic. The Nissan LCV

range is the most comprehensive in the

market starting with the NV200 half-tonne

pickup right through to the class-leading

Patrol pickup with a payload of 1 090 kg and

a towing capacity of 2 500 kg. Couple that

with the NP300 hardbody workhorses and

the tough and attractive Navara and there

is a pickup for every businessman or private

owner. The two vans, NV350 and NV200, are

extremely versatile as panel vans and come

in very comfortable people movers for the

hospitality and transport industry.

New technology for efficiencyHO: As with passenger cars, the focus

will increasingly be on smaller-capacity tur-

bocharged diesel engines. At present the

focus is on our 2.0 litre VGT power plant,

which features such green technologies as

exhaust gas recirculation, variable geometry

turbocharging and common-rail direct injec-

tion. It meets Euro IV emissions standards.

A six-speed manual transmission further

improves the fuel economy potential. Our

new ‘entry-level’ diesel engine will also be of

a 2.0 litre capacity.

DvM: Our Transit and Tourneo ranges

have impressive fuel efficiency, with com-

bined fuel consumption from as low as 7.0

litres/100 km and CO2 emissions of only

186 g/km. The vehicles also feature a shift

indicator, advising drivers when to change

gear for maximum fuel efficiency.

IN: The exterior styling of the new KB ben-

efits from extensive computer analysis of the

airflow around the vehicle supported by full-

scale wind tunnel testing to prove the theory

in practice. A key area of aerodynamic focus

was the airflow over the roof and load box of

the vehicle, a known critical area. On the new

KB, this critical airflow has been smoothed

to flow cleanly over the tailgate with reduced

drag. This has a positive impact on fuel

economy and performance while reducing

noise levels in the cab. As with the previous-

generation Isuzu KB, the sixth-generation KB

range is powered by a selection of the latest-

generation diesel and petrol engines.

VS: Our light commercial vehicle sport all the

latest safety technologies, class-leading fuel

consumption and DataDots come standard

on all Nissan vehicles.

Advice when purchasing new light commercial vehiclesHO: When it looks too good to be true, it

generally is. GWM is not the cheapest offer-

ing on the market and the closing price gap

is reflected in the high quality of the vehicles.

You may be able to find cheaper offerings,

but what about back-up and support?

DvM: Total cost of ownership is key when

considering a vehicle for your fleet. One

should consider the full service offering such

as comprehensive warranties like Ford’s

four-year/120 000 km fully comprehensive

manufacturer warranty and free three-year

AA assistance one gets with every Ford prod-

uct. Competitive pricing on maintenance,

service and collision parts will also assist in

lowered fleet costs. A national dealer network

is also important, ensuring fast and compre-

hensive support throughout our borders.

IN: Select a vehicle that is durable, reliable,

has a strong reputation and is backed by

outstanding levels of support both from a

sales and service perspective. The Isuzu

pickup offers this and more, including an

excellent residual value and an affordable

overall cost of ownership experience.

COMMERCIAL VEHICLES


FLEET MANAGEMENT

THE AIM OF THE programme is to assist

fleet owners in taking a holistic approach to

employee health and wellness, based on a

proven model.

Collaboration embodies the ethos of MBSA, as the com-

pany strives for the sustainability of the transport sector

in South Africa, with employee well-being being central

to this.

The Fleet Owner Workplace programme is essentially an

extension of the MBSA workplace wellness strategy that

has entrenched the health of the company’s employees

for over a decade, adding to the automotive giant’s ability

to achieve profitable growth and contribute to the socio-

economic success of the country.

MBSA’s leading role in this regard started in the

late 1990s in response to the debilitating effect of HIV

and Aids on productivity, and has since expanded in

focus to encompass health and wellness more holisti-

cally. This includes a focus on lifestyle ailments such as

cardiovascular diseases, cancer, diabetes and chronic

respiratory diseases.

Dr Clifford Panter, manager for Health, Safety,

Compensation and Benefits at MBSA, says, “Our drive

for excellence translates into benchmark achievements

in the field of occupational health and safety. However,

pockets of excellence can never be sustainable. So, for

more than two decades now, we have made it a mission

to share the lessons we have learned around employee

health management with businesses and communities

around us. This is based on our first-hand experience of

the benefits of a healthy workforce to the sustainability of

our business.”

Examples of this mission are the Siyakhana and Trucking

Wellness projects that MBSA has supported as part of its

corporate social responsibility programme for many years.

The former lends workplace wellness support to small and

medium enterprises around MBSA’s production plant in

East London; the latter targets the road freight industry in

collaboration with partner CEP.

The concept for the Fleet Owner Workplace programme

came about as a result of MBSA’s involvement in the

Trucking Wellness project, an initiative of the National

Bargaining Council of the Road Freight and Logistics

Industry, which provides education and basic health care

services to truck drivers along the major freight routes in

Southern Africa. This includes dissemination of informa-

tion, testing and treatment

of HIV and Aids and other

lifestyle illnesses.

A need was identified

to provide a more holistic

approach to the manage-

ment of health and well-

ness by the fleet owners.

As a provider of transport

solutions to the freight

industry, MBSA is able to

support fleet customers

and their truck drivers with

additional benefits that will

enhance their profitability.

The quest for employee Bakers SA, a prominent transport logistics company in KwaZulu-Natal, became the fi rst fl eet company to complete the roll-out of the Fleet Owner Workplace programme designed by Mercedes-Benz South Africa and their corporate social responsibility partner, Corridor Empowerment Project (CEP). Simon FouldsSimon Foulds attended the launch of this event at Bakers SA’s head offi ce in Pietermaritzburg.

Bakers SA celebrated the signing of their Workplace Wellness policy with stakeholders involved in the Fleet Owner programme initiated by MBSA. (from left) Mpho Nkhumeleni, sales manager, Daimler Truck and Bus; Tersia Stroh, acting national secretary, National Bargaining Council for the Road Freight and Logistics Industry; Abdool Tayob, chief executive, Bakers SA; Shabir Tayob, director: marketing and logistics, Bakers SA; Mayur Bhana, divisional manager: group corporate affairs, Mercedes-Benz South Africa; Themba Mthombeni, operations director, Corridor Empowerment Project

KEY OUTCOMES OF THE FLEET OWNER WORKPLACE PROGRAMME:

• Increase understanding around, and reduce

the impact of, HIV and Aids and other

lifestyle diseases

• Increase capacity to prevent and

manage disease

• Benefi t employee health, life expectancy and

job retention

• Informating, educating and screening around

health issues

• Assist fl eet owners to develop, implement,

monitor and evaluate a sustainable

Workplace Wellness programme (including

the development of policies, systems

and processes)


FLEET MANAGEMENT

wellnessKobus van Zyl, MD of Daimler Trucks and Buses South

Africa, states, “South Africa’s trucking industry forms the

veins and arteries of the economic heart of this country,

pumping prosperity to our people. The accomplishments

of the trucking sector are also the success of Daimler

Trucks and Buses South Africa, as a flourishing com-

mercial vehicle supplier. We cannot disregard the varied

issues that affect the larger trucking community. Healthy,

skilled truck drivers are but one of the ideals we have

chosen to throw our weight behind as a corporate thought

leader. With our ongoing commitment to the sector, our

slogan, ‘Trucks you can trust’, is easy to translate into a

mantra for the industry, ‘Truckers you can trust’.”

MBSA also provides its commercial vehicle customer

base with dedicated driver training programmes that

equip truckers with product knowledge to enhance safety

and reduce the cost of vehicle ownership. The value-

add for MBSA clients does not end there, however, with

products such as the Fleetboard telematics systems and

Charterway fleet management services further reducing

the downtime of fleet vehicles.

Bakers SA, as the first MBSA client to implement the

Fleet Owner Workplace programme, shares the com-

pany’s commitment to employee well-being.

Abdool Tayob, chief executive of Bakers SA, says: “This

initiative forms one of the many components that testify

to the partnership relationship shared between Bakers SA

Limited and MBSA. Furthermore, this is a manifestation of

MBSA’s concern for the health of professional drivers that

operate their exceptional products.”

LEFT Shabir Tayob, director: marketing and logistics, Bakers SA (left) and Abdool Tayob, chief executive, Bakers SA (right), receive a certifi cate for participation in the Mercedes-Benz South Africa Fleet Owner Workplace Wellness programme from Mpho Nkhumeleni, sales manager, Daimler Truck and Buses SA

RIGHT Abdool Tayob, chief executive, Bakers SA (centre), is joined by Johan Opperman, Bakers SA National SHEQ Manager (left), and staff members from the Workplace Wellness Committee in signing the policy that now governs employee wellness in the company


How critical is driver wellness within the transport and logistics sector?Driver wellness is crucial. If you have

a driver who is not well, this could

impact the fleet operator’s business.

How important is it to have a healthy driver behind the wheel of a truck and why?It is very important. If a driver is

unhealthy, they will not concentrate

and this will affect their ability to do

their job and perform at their best.

What are you doing to improve and increase driver wellness?At this stage, Volvo does not have

a formal programme for driver well-

ness, as most of the training is around

product knowledge. We are in the

process of improving our training pro-

gramme to include classroom-style

training with a focus on health and

first-aid training.

Is it important just for long-distance truck drivers, or also for inner-city truck drivers?It is important for any driver behind

the wheel of a truck.

What are the best ways to both educate the driver and transport operator on the importance of driver wellness?Fleet owners should have induc-

tion sessions for their drivers, which

should include a wellness programme

that reflects the benefits of living a

healthy lifestyle.

What part do you play in training drivers and why? At Volvo Trucks, we ensure that driv-

ers understand how to use our prod-

ucts efficiently so it can meet fleet

owners’ expected results.

At the vehicle handover, we have

highly informative basic driver train-

ing, which includes:

Driving core valuesSafety is one of Volvo’s core values. Simon FouldsSimon Foulds speaks to Philip Phasha, driver training manager at Volvo, about eliminating driver fatigue and safety.

Back left: Johannes Thabana, Solly Ncala, Timothy Sibisi, Gregory Makhudu, Rubik Stevens, Phillip Phasha, Hadley van Ster

From left: Alvin Naicker, Gareth Quiens, Solly Mampho, Zama Skosana

• defensive driving techniques

• fuel consumption

• safe load securing.

The vehicle’s handbook is custom-

ised to the chassis so the driver

knows all the vehicles’ intricacies.

We also offer Train the Trainer train-

ing should a big fleet company require

it. There we will cover:

• driver recruitment

• presentation skills

• driver incentive schemes

• how to deal with accident reporting

• vehicle pre-trip checks

• basic training with annual refresher

courses should the fleet company

require it.

What are the advantages to the company in doing this kind of training and, once completed, how often, if at all, are the drivers retrained?The advantages are that the com-

pany’s fleets will have a longer lifes-

pan. Training leads to sustainable

business and lower operation costs.

Volvo provides on-the-job training at

the handover of the vehicle. Once it

is completed, we have a refresher

course every two years at the fleet

owner’s request.

Although the training contributes

to personal development, the chal-

lenge is the high turnover of drivers in

the industry.

What advice would you give to a transport operator who wants to improve the wellness of their company’s drivers?Companies should revisit the working

conditions of the drivers, including

resting areas, and ensure that these

facilities are hygienic and safe to

use. They should make sure drivers

have balanced shifts and long hours

should be monitored. They should

also ensure that drivers go for routine

medical check-ups.

FLEET MANAGEMENT


ACKNOWLEDGING the

driver is critical because,

according to Taftman, the

driver is the most important

component in the transport machinery.

“It is not simply a case of just driving

a truck from point A to B. The driver

plays a critical role in ensuring the total

operating costs of the vehicle are kept

down to a minimum.

“The driver can influence up to 60%

of the truck’s total operating costs.

Therefore, with continuous train-

ing, the driver will have a positive

impact towards the bottom line of a

transport operation.”

Scania’s Driver of the Year compe-

tition takes place every second year

and this year’s one took place in five

regions within South Africa, as well as in

Namibia, Botswana and Tanzania.

“With this event, we want to put the focus on the driver,

giving him the publicity he so justly deserves.”

Total operating costsFor the 2014 competition Scania measured driving skills

and truck knowledge and brought total operating costs into

the equation.

“It is actually quite interesting when an operator looks

at the total operating costs as a pie chart, and sees how

much of it can be affected by the driver behind the wheel

of the truck. So, if you look after the driver and motivate

him, he can be a great return on investment for your

transport operation.

Educational event“Why have we done this as a competition? It is for the

excitement and adrenaline and simply because it is fun.”

The event started with qualifying theory tests in April

from where the regional finalists were selected to progress

through to the regional heats and finals. The top three

drivers from each region will compete in a national final in

Johannesburg during October.

Optimising customers operations“During this competition we mixed theory with practical

tests to choose the top 24 Scania drivers. Every driver

competing in this competition is

empowered to be a better driver

and that is what he takes back

to the company he works for.

“The whole point of the com-

petition is to teach the drivers how to be

a positive force within a company and

ensure they play a positive role in contain-

ing overall operating costs. Not all of the

drivers can win but each one learns how

to be a better driver. Plus, they also leave

with relevant information regarding their health and well-

ness – which is also a critical factor for every driver and

transport operator.”

Transport solution optimisationAnother key aspect of this event is empowering the driver

to be aware of what to look out for when doing a vehicle

and trailer inspection. “Every driver should do a pre-

inspection check before every trip, because they are then

able to point out to their managers if they see any potential

faults with the vehicle. This ensures less downtime due to

either a breakdown or an accident.

“During the competition we empower drivers on what

to look out for to ensure the truck they are going to drive

is safe use. This enables them to advise the owner or

maintenance department if there is a fault with the vehicle

between service intervals, ensuring minimal downtime.

“At the end of the day, this event ensures each and every

company whose drivers participated sees a better and

improved driver, which is a win-win situation for everyone,

including fellow road users.”

A great return on investmentAlexander Taftman, product and marketing director at Scania South Africa, tells Scania South Africa, tells Simon Foulds why Scania’s driver competition is benefi cial to everyone.to everyone.

ct and marketing director at ct and marketing director at mon Fouldsmon Foulds why why is benefi cial is benefi cial

We want to put the focus on the driver

PRIZESFirst place: R50 000 voucher for a big department store

Second place: R30 000 voucher

Third place: R15 000 voucher

Fourth and fi fth place: R5 000 voucher

The transport owner whose

driver wins the competition

gets a R250 000 discount

on the purchase of his next

Scania truck or the use of a

Scania rental truck for free for

six months.

FLEET MANAGEMENT


FUEL

SHELL’S ONLINE TECHNOLOGY is help-

ing businesses tap into its expert technical

information to match the right lubricant to their

vehicles and equipment.

Originally designed for use by Shell’s own technical

staff, this information is now available to customers glob-

ally – giving them instant access to a vast bank of data

on engines, lubricants and oils, including the quantities

required and oil drain intervals.

The service is quick and easy to use: by simply logging

on to the Shell LubeMatch site, customers can select

the vehicle or equipment type and make or model from

an extensive database. This generates an instant report,

recommending the best lubricant to help that particular

equipment to run smoothly. The lubricant recommendation

can be printed out.

LubeMatch has been developed together with original

equipment manufacturers’ recommendations. LubeMatch

can be found for most types of vehicles and equipment

from cars, motorcycles and trucks to buses, vans, tractors,

heavy machinery and industrial equipment.

Built around a deep knowledge of the operation and

lubrication needs of heavy-duty diesel engines, Shell’s sci-

entists and engineers have developed a range of lubrica-

tion products using technology that adapts chemically and

physically to the changing conditions within the engine.

Finding the right lubricant at the touch of a buttonUsing the right lubricant not only protects and prolongs the life of vehicles and equipment, but can also help save on maintenance and fuel costs. By Raymond Abraham, commercial technical manager: Shell South AfricaBy Raymond Abraham, commercial technical manager: Shell South Africa

FUEL


Certain heavy-duty diesel engine oils can improve fuel

economy by reducing frictional and pumping losses. It is

crucial that the oils also provide the right level of protection to

avoid engine wear. Working in its laboratories and with lead-

ing companies and original equipment manufacturers, the

company has clearly demonstrated the benefits that high-

quality fuel economy oil can bring.

Shell Rimula heavy-duty diesel engine oils provide protec-

tion in three critical areas: acid control, deposit control and

wear control. Its adaptive technology also provides reduced

viscosity for improved fuel economy.

Quality lubricants are essential, as low-quality oils may

fail to protect vital components from combustion acids that

escape into the crankcase in the engine, leading to corrosion

that may cause catastrophic engine failure. Shell Rimula oils

contain powerful antioxidant agents that adapt chemically to

neutralise acids before they can damage the oil and engine.

Dirt in the engine – whether it’s piston deposits or crank-

case sludge – can also reduce its efficiency and increase

fuel costs. Shell Rimula diesel engine oils contain molecules

that adapt to remove and stop deposit-forming particles from

coming together to form sludge, to help keep engines clean

and protected.

Low-quality oils may fail to keep components apart, which

can cause hot spots, excessive wear and high mainte-

nance costs. Shell Rimula diesel engine oils have adaptive

molecules that are designed to protect the engine by react-

ing under heat and pressure to form a protective film that

helps to reduce wear.

This three-way protection has put Shell Rimula diesel

engine oils at the forefront of the development of lubricants

that enhance fuel economy and equipment protection in the

toughest conditions.

In another innovative move, the new Shell miGarage mobile

app allows customers to find the best lubricants for their vehi-

cle or equipment using Shell LubeMatch, with additional ben-

efits. The app makes it possible to email a recommendation

directly from a mobile device and access previous vehicle or

equipment searches with a ‘last searched’ func-

tionality. It also allows customers to save their

favourite vehicles or equipment to allow for

fast access to lubricant recommendations.

Customers can also keep up to date with all

the latest Shell Lubricants news, promo-

tions and product information and even

use their mobile device as a torch, using

the app’s built-in LED flash (available

for devices with camera flash only).

This is just another way Shell is using

technology to make it easier for its cus-

tomers across the globe to save on fuel

and maintenance costs.

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


PAGE STRAP

FORMER SOUTH AFRICAN President, Nelson

Mandela, and the then President of Mozambique,

Joaquim Chissano, soundly established the

framework for the development of MCLI when

they jointly launched the Maputo Development Corridor at

an investment conference in Maputo in June 1996.

The launch of the Maputo Development Corridor (MDC)

came at a time of pressing economic growth imperatives

from a Mozambican economy ravaged by 15 years of civil

war and a newly liberated South Africa emerging from

decades of economic isolation. The MDC emerged as

the response to these imperatives and aimed to stimulate

regional cooperation and economic integration by restoring

the traditional trade route linking South Africa’s landlocked

northern provinces of Gauteng, Limpopo and Mpumalanga

to their nearest port in the Mozambique capital of Maputo.

The port had suffered a sharp decline during the civil war

and was in dire need of rehabilitation.

The Maputo Development Corridor had four key objectives:

• rehabilitating the primary infrastructure network along the

corridor, including road and rail links between South Africa

and Maputo, the border post and the port of Maputo

• maximising investment in the potential of the corridor area

and in added opportunities that infrastructure rehabilita-

tion would create

• maximising the social development and employment

opportunities on the corridor and increasing participation

of historically disadvantaged communities

• ensuring sustainability by developing policy, strategies

and frameworks that ensure holistic, participatory and

environmentally sustainable approaches to development.

In line with the SDI framework, which was to rehabilitate and

re-establish the traditional trade route between South Africa

A decade of partnered progress on the Maputo CorridorIn February 2004, MCLI issued its fi rst formal press release. Within, it explained that a In February 2004, MCLI issued its fi rst formal press release. Within, it explained that a “new private sector group has taken a bold initiative to promote the Maputo Corridor as “new private sector group has taken a bold initiative to promote the Maputo Corridor as a fi rst choice transportation route linking South Africa’s landlocked northern provinces a fi rst choice transportation route linking South Africa’s landlocked northern provinces and neighbouring states to world markets.”and neighbouring states to world markets.”

CORRIDORS

Address: 18 Escombe Ave, Parktown, 2193

Tel: +27 (0)11 482 5721

PROUD SUPPORTER OF THE MCLI

Cell: +27 (0)83 631 3316

Email: [email protected]

CORRIDORS


and Mozambique, which had been destroyed during the

17 year civil war in Mozambique and during the isolation of

South Africa during the apartheid years, the MDC became

the foundation for the work of MCLI.

With an initial investment in rehabilitation of basic infra-

structure in Port Maputo and the completion of the N4 toll

road from Gauteng to Maputo, the environment was per-

fectly poised for trade to begin to return to this traditional

route from Gauteng. It was a meeting of stakeholders that

were gathered at short notice from all across the corridor

that began this initiative and which resulted in the develop-

ment of an organisation that has reached its 10-year mark

and has taken its model to 29 countries around the world.

In the first meeting at City Deep Terminal in August 2003,

and a similar meeting in Nelspruit in early September 2003,

stakeholders from Mozambique and South Africa, from both

the public and private sector, identified the opportunities

and constraints impacting on the use of Port Maputo, the

terminals, the road and the railway line. The key issues that

were identified were:

• negative perceptions about Port Maputo

• no container lines calling the port

• lack of rail service on the corridor

• limited border operating hours

• congestion and delays

• lack of an institutional framework on the corridor.

It was these issues that were the core reason for MCLI’s

establishment and, added to the mandate of these first

stakeholder meetings, was sufficient for the infrastructure

investors, cargo owners, and service providers to commit

to setting up an organisation to deal with these constraints.

At MCLI’s inception in 2004, there were initially eight

founder members. These eight companies saw and acted

on the need for a coordinated effort on behalf of the busi-

ness sector to present to government the requirements for

sustained investment into the MDC. A joint effort was under-

taken by these organisations to expand their individual

focus into a synergistic effort for the greater good of all par-

ties. These companies do indeed represent a cross section

of key players, either along the MDC or in their particular

industry sectors in the region.

It was recognised from the outset that in order for the Initiative

to be successful, the public sector needed to be represented

on the MCLI board. The South African National Department

of Transport, seeking to roll out its National

Freight Logistics Strategy in the prov-

ince, through the Mpumalanga Provincial

Department of Roads and Transport, recog-

nised the institutional framework for public-

private consultation that had already been

built in the province by MCLI and joined as

a foundation member.

The Maputo Port Development Company,

Mozambique International Port Services

(the container terminal), TSB (Transvaal

Sugar), Manganese Metal Company,

Maputo Fresh Produce Terminal, Matola

Coal Terminal, Trans Africa Logistics, Trans

African Concessions, with the expert guid-

ance of Brenda Horne, on secondment from the then BHP

Billiton-owned Manganese Metal Company, stepped in to

fund a small office and operational team to support Horne.

The organisation’s vision was and still is, to coordinate cor-

ridor stakeholders to become the ‘go to’ organisation on the

Maputo Corridor by creating a cost-effective, continuous,

reliable logistics route, creating an enabling environment for

further investment and development and ensuring positive

returns for all stakeholders.

With the indomitable passion, energy and commitment

of Horne to the MCLI vision, and a clear mission to partner

with all stakeholders to create a sustainable, highly efficient

transportation route, an increasingly favourable climate

MCLI’s success has been its advocacy and lobbying to ensure improvements in the freight logistics environment on the corridor


for investment and new opportunities for the communities

are being created along the corridor. These objectives are

encapsulated in what has become the slogan of the organi-

sation “Working together to make the Maputo Corridor the

first choice for the region’s stakeholders.”

MCLI’s greatest success has been its advocacy and lob-

bying role to ensure improvements in the freight logistics

environment on the corridor. This, with the considerable

mandate of its private sector members, has been crucial to

ensuring that. More importantly, MCLI has been extremely

successful in bringing together a range of public and private

sector stakeholders on the corridor. In MCLI’s 10-year his-

tory, it has continued to work with key departments on the

corridor, namely customs in the form of Alfandegas and the

South African Revenue Service, as well as the departments

of transport of the three corridor countries of Mozambique,

South Africa and Swaziland.

Alongside these issues, the high visibility of the organi-

sation in the freight and logistics sector has ensured that

networking and working groups of the organisation are

populated by stakeholders from every sector of services

on the supply chain. It has been enormously successful

in establishing an interface and platform for engagement

between the government and private sector to the highest

level in both sectors and is acknowledged in Africa as a

model for corridor institutional frameworks and partnerships

between public and private sector. The wealth of industry

knowledge and expertise in the board of directors, and the

strong membership base has given MCLI the credibility

and credence required to ensure that the corridor is kept

top of mind.

This communication and engagement

has ensured that there has been a con-

tinuous stream of communication to stake-

holders on the corridor. Constraints on the

corridor have been addressed through

direct engagement with all stakeholders

in a working group environment. MCLI’s

lobbying has also resulted in the extension

of border operating hours in 2007, and the

engagement with border authorities has

ensured 24-hour operations for the fes-

tive period – something MCLI profoundly

hopes to see extending into standard

operation.

In real terms, the increased tonnages

through Port Maputo, from 4 million tonnes in 2003 to a pro-

jected 20 million tonnes at the end of 2014, are testimony to

the success of the marketing mandate given to MCLI in its

early years. The impact of the road infrastructure on the eco-

nomic growth of the region has been substantial, and has

been the single biggest factor in ensuring the sustainability

of the corridor. While the completion of the rail rehabilitation

in 2008 was another key milestone, rail services continue to

be challenged; mostly by the pricing structure of services

by Transnet Freight Rail, which challenges the movement

of bulk commodities to the port. The implementation of

Transnet’s road-to-rail strategy is imperative if the transport

infrastructure on the corridor is to be retained at sufficiently

high levels, and in order to ensure the future competitive-

ness and cost-effectiveness of the Maputo Corridor.

The recipe behind the success and how MCLI achieved

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the sustainability of this collaborative mechanism lies, according

to MCLI CEO Barbara Mommen, in the passionate leadership

and active secretariat and committed board of directors, and an

institutional framework with the right mix of partners is crucial.

“Everything hinges on the quality of the relationships built through

the supply chain.” Beyond that, though, the active support of

members and stakeholders behind the early framework created

by the first Premier of Mpumalanga, Dr Mathews Phosa, and

by former presidents Chissano and Mandela, have helped to

develop a sound framework for ongoing political will in the region.

The challenges remaining on the corridor are largely focused

around the border facility and systems. It is the challenging dis-

connect between the excellent political will at executive level and

the lack of capacity for implementation at administrative level that

is no more evident than in the current status of the Lebombo/

Ressano Garcia border post.

The years of delay in implementing the mandated one-stop bor-

der post remain unfathomable. While the customs modernisation

programmes of the South African Revenue Service and the Single

Electronic Window implemented by Alfandegas in Mozambique

in September 2012 have been instrumental in speeding customs

clearing at the border post, the congestion and delays that afflict

the border post between 00:00 and 08:00 the following morning

are costing the region dearly.

In all of this, though, the Maputo Corridor is one of Africa’s suc-

cess stories in terms of regional integration between the three

corridor countries of Swaziland, southern Mozambique and the

Mpumalanga and Gauteng provinces of South Africa. In this case,

the infrastructure investment has paid huge dividends in support-

ing the regional integration imperatives of the SADC region. The

imperatives for regional integration have been long hailed as a

necessity for Africa’s ability to compete globally and to ensure

that African economies develop towards deeper and more sus-

tainable industrialisation. The Maputo Corridor has proved that

without infrastructure and continued investment in improvements,

and without a driving force in the form of a corridor institution

steering communication, information and the coordination of

efforts, regional integration does not happen.

MCLI faces considerable challenges in the coming years as it

positions itself in a shrinking economic scenario in South Africa,

and as the challenges for relevance in a changing environment

make the sustainability of the organisation a continuous balanc-

ing act. It is inevitable that MCLI will have to move towards a

service-oriented organisation and this is something that is already

being planned.

EDITORIAL COMMENT

By Barbara Mommon, CEO MCLI

It is a great privilege to be part of this dynamic organisa-tion that is MCLI and as we celebrate our 10th year of op-eration, I am acutely aware of the enormous contributions made by the many role players who have been instrumen-tal in driving the establishment and continued functioning of MCLI since its inception. It has truly been a partnership of effort between stakeholders across all sectors on the

corridor and has established a great legacy to those who were instrumental in its establishment. It is the partnerships that have given credence, credibility and impetus to MCLI’s work and continue to be crucial to everything that we do.

As we look at how much the corridor activities have grown in what is essentially a very short time, we cannot help but feel indebted to those individuals who put muscle behind their ideas and dreams, and made MCLI a reality. We have highlighted some of these very important personalities in this publication.

Looking ahead, the challenges are in some ways very different to those of 2004. The incredible changes that have happened over this 10-year period bode well for the next decade. We look forward to continuing to narrow the gap between public sector service providers and the private sector role players and, in so doing, we keep the vision of an effi cient, effective and reliable trans-portation route at the top of our minds. There is much work still to be done. The border post remains the biggest area of focus. Although I believe we are closer than ever to the implementation of a 24-hour one-stop border post at Lebombo/Ressano Garcia, it remains the single biggest issue hampering trade and economic development in the region. Nonetheless, I am confi dent that we will see some positive developments in this regard, as the level of planning, discussion and activity around its implementation slowly gather momentum.

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WAREHOUSING

LOOKING AT THE latest trends in improving the

movement and control of goods in a warehouse,

Bailey says companies are relying more and

more on better systems.

“This includes systems such as better scanning, voice

systems, and various technologies to improve efficien-

cy and productivity. Increased levels of mechanisation

give you better efficiency, better accuracy and faster

response.”Regarding the latest trends in the design of

warehouses, Bailey states there are increased levels of

automation as labour becomes more expensive, less effi-

cient and more difficult to control. He adds that automa-

tion is becoming cheaper.

“Automation also significantly improves security, speed,

accuracy and reliability. At the same time, it reduces the

reliance on ERP systems because it needs its own soft-

ware when doing detailed warehouse picking. You see the

warehouse of the future having higher levels of automa-

tion, especially with a rapidly declining labour efficiency.”

LifespanAn important aspect is ensuring the warehouse can be

utilised efficiently over at least the next five to ten years.

“Ensure the warehouse integrates with a total business

plan and into a logical supply chain philosophy. If the

facility is compatible with the rest of the business objec-

tives, problems tend to be minimised. In many cases,

the warehouse is the ‘stepchild’ of the business, receiv-

ing little investment into appropriate resources. When

an investment into the warehouse is well focused on

the actual business needs then a warehouse opera-

tion has a sustainable shelf life.”

LocationA vital aspect is location. “It significantly affects

transport costs and transport is usually the

largest cost contributor to the supply chain,

and being close to the customer significantly

improves service.”

PickingAchieving the most cost-effective, accurate

and productive picking technique and tech-

nology is, according to Bailey, probably the

most difficult, yet important, component of

many designs.

“There are a multitude of different options available

and the blend of the best technology and related IT sys-

tems is vital to ensuring the total operation is optimised.

It needs to be well researched and well thought out

before choosing the technology and system suited to the

warehouse specifications.”

Designing flexibilityDesigning a warehouse with the flexibility of handling an

unpredictable future, at the same time minimising your

cost-to-serve, is not an off-the-shelf product.

“It is almost impossible to have infinite flexibility and, at

the same time, great efficiency. Usually, as you mechanise

processes, you improve efficiency but reduce flexibility.

So what is more important? If your business is stable for

the long term, throw flexibility out of the window. If your

business is highly variable, you live with the inefficien-

cies of flexibility. A 3PL, third-party logistics provider, will

typically focus on flexibility, as most contracts are for three

years; whereas an owner-operator will typically plan for a

10- year horizon.”

Inventory movement and controlDesign is the fundamental component of the entire warehouse operation, according to Martin Bailey, chairman of Industrial Logistic Systems. He tells Simon FouldsSimon Foulds what key elements are involved in operating an effi cient warehouse.

Martin Bailey


SUPPLY CHAIN LOGISTICS

BY DOING SO, these organisations are creat-

ing and adopting innovative business models.

This was one of the key messages from Frost

& Sullivan’s GIL 2014: Africa – The Global

Community of Growth, Innovation and Leadership annual

congress. Simon Foulds conversed with industry leaders in

attendance at the Cape Town event.

One of the key events at this congress was the CEO

panel: ‘Gateway to Africa’, which provided valuable insights

on South Africa’s future role in channelling investment into

the continent. On the panel were Charles Brewer of DHL

Express, Sunil Joshi of Neotel, Gert Schoonbee of T-Systems

and Chris Whelan of Accelerate Cape Town. The panel was

moderated by Hendrick Malan, operations director, Africa:

Frost & Sullivan.

Investment appealMalan says, “Until recently, South Africa was viewed as the

growth area in Africa as well as the gateway to the continent.

We have lost the status as the largest economy in Africa. As

a company facilitating companies coming into Africa, Frost &

Sullivan has seen a change. Whereas in the past companies

came to South Africa first and then headed north, they are

now moving directly either to West or East Africa. Companies

are by-passing us and the country is being left out of this criti-

cal part of the game. If it continues like this, we run the risk of

eventually missing out on playing a crucial part of the African

renaissance. Has the country lost its appeal, and why?”

Brewer adds, “South Africa was the gateway into Africa

because historically, from a logistics point of view, companies

had no choice and, irrespective where you were coming

from in the world, to enter Africa you had no choice but to

do so through South Africa. There was only one decent point

of entry into the continent and South Africa was that point

of access.

“Cape Town and Durban are doing a fantastic job of brand-

ing themselves from a tourism point of view but a terrible

job in terms of branding itself in terms of great places to

do business.

“Another real problem is that you cannot get visas or inter-

company visas. If you want to attract business to South

Africa, you have to make it easy. Every year we produce a

‘connectiveness report’ that compares 108 countries. One

of the aspects we look at is how easy it is to move trade,

people, finance, communication and information through the

respective countries.

“Why does Singapore beat Malaysia? Why is Dubai bet-

ter than Bahrain or Saudi Arabia? Why are the UK, France

and Poland preferable to the emerging Eastern European

countries? It is because they all recognise that the easier it is

to do business, the more likely that companies will establish

operations there.”

Whelan states, “What’s interesting for me is looking at

trends. I believe South Africa is still in a very strong position

now but I am not wildly happy about the direction we are trav-

elling in. Charles makes the point about connectiveness and

there are a few things that you have got to get right. South

Africa’s National Development Plan speaks about some of

the opportunities, but South Africa has some immense chal-

lenges that need to be addressed. I do not think we have

lost it but we do need to very quickly

pull our socks up and undergo a more

collaborative approach between gov-

ernment and business because, at the

moment, we seem to not want to talk

to one another.”

Mother company investmentsMalan asks, “How difficult is it to obtain

finance from overseas head offices to

expand operations in South Africa and

the rest of the continent?” Schoonbee

answers, “Germany does not discrimi-

nate against Africa as a continent. So

when we compete for capital against

other countries it is not a competition

against the various countries them-

selves – rather it is a competition of

good business fundamentals. That is

why the growth of the country is so

Fast-tracking growth Innovation is no longer an option, but rather a necessity. Companies that are on top of market changes maintain their competitive advantage.

From the left – Hendrick Malan, operations director, Africa: Frost & Sullivan; Chris Whelan of Accelerate Cape Town; Charles Brewer of DHL Express; Gert Schoonbee of T-Systems and Sunil Joshi of Neotel



in Africaimportant because if the country is not growing then our busi-

ness cases are under threat.

“We have always had excellent support from our global

CEO who is really supportive of us in South Africa and within

the continent. As long as we have a good business model,

they give us all the investment that we need.”

Gateway to AfricaMalan goes on to ask, “What makes a great gateway into

Africa? Does South Africa still rank high on the continent?”

Joshi states, “South Africa has a great system. Though

we have our challenges and the country is a 20-year-old

democracy that is going through growth pains like many

other countries, it has huge potential. In order for us to grow,

a shift towards domestic consumption is going to be impor-

tant for us. That is going to drive really big growth for our

own country regardless of what happens around us. Look

at the export market and the way the rand/dollar exchange

rate has gone south is actually a blessing in disguise. We

need to take advantage of it and if we do, we will actually be

able to export a lot more goods because then we are a lot

more competitive.

“One thing we cannot ignore is that we are competing

against the aggressive Chinese, along with the innovative

Indians, Brazilians and Russians. There, productivity rather

than innovation is the name of the game. They do not sleep,

we get to take our weekends off, and that is the shift in our

own mindset that we have to get through as individuals, irre-

spective of what part of the operating environment, political

or otherwise, we operate in.

“There is a shift needed. This has to take place in all states

of competitiveness. We are a competitive nation and in order

to take what is rightfully ours into the global market place,

we need to be better than the rest. If we are, then we are the

gateway into Africa.”

Value proposition for SAMalan asks, “If you had to treat South Africa like your compa-

ny, if you were the CEO of South Africa, what would your value

propositions be that you take to the international market?”

Says Joshi, “For me it would be as a service differen-

tiator, because we are leaders in the design industry and

service sectors. Innovation starts in South Africa and then

goes north.”

Schoonbee says, “I would say it starts with our people.

South Africa as a country has an incredible richness of diver-

sity with moments of brilliance where we outperform the rest

of the world. I think the biggest problem we have is that we

do not believe this.”

Brewer continues, “People, stability, capability and infra-

structure are our strengths. All other places in Africa are

tough places: Nigeria, Kenya, Tanzania and so on. If you are

a new business visitor coming into Africa and you choose

Lagos, Nigeria, as your first destination, then be prepared

for a whole different world. If we work out who we want to be,

then my tagline would be ‘South Africa – it’s a great place

to start’.”

Whelan concludes, “A few years back, I met a business-

man from Singapore who described his country as ‘China

Light’, which might sound a little bit offensive to lot of people;

but Charles’s point is right: South Africa is a great place to

start – why not base yourself here? We are a knowledge-

dense, service-oriented economy and we need to play to our

strengths, drive it and be relentless.”

Africa’s top industry performers were acclaimed at Frost & Sullivan’s infl uential awards banquet held in Cape Town during August.

Thriving in the current business environment requires an approach that is visionary and incorporates innovation and game-changing strategies. Frost & Sullivan’s Best Practice awards, based on a rigorous selection methodology, highlight the achievements of market-leading companies that deliver excellence and best practices in their respective industries.

Delivering the welcome speech and keynote address, Hendrik Malan, operations director for Frost & Sullivan Africa, noted: “The Frost & Sullivan Best Practice awards programme acknowledges exceptional industry achievements. The selected awardees have demonstrated innovation, competitiveness and leadership in meeting the particular demands of doing business in Africa.”

A total of 23 awardees were drawn from diverse sectors, including information and communication, chemicals and materials, energy, transportation, healthcare and fi nance. The ICT sector was strongly represented by Mi-Fone, T-Systems, ZTE, Intersec, Global Voice Group, Skyvision, Mahindra Comviva, Djibouti Data Center, EOH Cloud Services, Xlink, IBM, Health Window and Orange.

Recipients were honoured for categories such as enabling technology, technology innovation, customer value enhancement, competitive strategy leadership, outstanding entrepreneurial spirit and vertical market penetration.

RECOGNISING COMPANIES IN AFRICA

DHL Express: Charles Brewer (managing director), Sumesh Rahavendra (head of marketing)

Sasol: Dr Thulani Dlamini (manager: research & development), Henrik Malan (operations director for Africa, Frost & Sullivan)

Barloworld Logistics: Liesl De Wet (senior manager: sustainability), Henrik Malan (operations director for Africa, Frost & Sullivan)

T-Systems: Gert Schoonbee (managing director), Henrik Malan (operations director for Africa, Frost & Sullivan)



ALIGNED WITH, and designed around, clients’

needs, it is fitting that Imperial’s unrivalled

approach to Africa started with discussions

with clients, according to Imperial’s Africa divi-

sion CEO, Dougie Truter. “It was sparked by dialogues with

leading multinationals aiming to benefit from the consum-

erisation of Africa,” he reveals. “Through conversations at

the highest level – with manufacturers and brand owners

in the pharmaceutical, FMCG and general retail sectors

– Imperial’s Africa strategy was conceived, with regional

cluster thinking as one of its cornerstones.”

The International Monetary Fund predicts that no conti-

nent will grow more strongly than Africa over the coming

years, while McKinsey and Company statistics reveal that

the region’s consumer-facing industries are expected to

grow by over $400 billion by 2020. It is for these reasons

that global companies are increasingly setting their sights

on Africa. “Along with the opportunities, however, come

challenges and risks,” Truter cautions. “There is no ‘one

size fits all’ approach to the African consumer or the

African market. Distinct consumer segments exist, with

significant variation by country. The legal systems are as

varied as the languages spoken. Cash presents risks and

challenges. The complexity of doing business in Africa

cannot be overemphasised,” he stresses,

and cites the example of a multinational

aiming to grow in Africa, but having to deal

with hundreds of small distributors spread

across a host of countries, and expect-

ing from them the same governance and

control as they would have with a large,

world-class distributor.

The aim of Imperial’s approach, Truter

states, is to minimise the risks and com-

plexities for clients seeking to enter or grow

in the African market; to simplify business

in Africa for them, and offer a single point

of contact that can deliver world-class

service, standards, governance and con-

trol. The group is doing this by offering a

total, end-to-end value proposition that is summed up in

its catchphrase: “Get you there; sell your product; build

your brand.” It is a strategy that is built on the foundation of

Imperial’s understanding of the dynamic and ever-expand-

ing demands of the African consumer, as well as knowledge

and experience – built up over more than 40 years – of the

continent’s challenges.

Outlining the evolution of Imperial’s Africa strategy, Truter

notes that it began with transport companies in South Africa

that offered cross-border services. From this more tradition-

al transport-based service, Imperial expanded its service

offering with distributor capabilities, in order to meet clients’

selling needs. “We moved into Africa’s consumer market

with the acquisition of CIC Holdings, through which we are

now operating extensively within the FMCG industry, with a

service offering that includes distributorships, merchandis-

ing, warehousing, distribution, debtors’ administration and

staffing solutions.”

Imperial entered the pharmaceutical space with the acqui-

sition of Imperial Health Sciences – which is one of Africa’s

leading pharmaceutical and healthcare supply chain service

providers, specialising in multichannel solutions for deliver-

ing essential medicines, and consumer health products in

South Africa, to Namibia, Botswana, Mozambique, Zambia,

Kenya, Tanzania, Malawi, Uganda, Ethiopia, Rwanda,

Zimbabwe, Ghana, Ivory Coast and Nigeria.

Today, Imperial is the only company that can take prod-

ucts from manufacturing to the point of purchase in both a

Southern African and pan-African context.

‘Build your brand’ refers to the group’s brand activation

services – to its unique ability to ‘pull’ products through

the value chain to the consumer. The latest development in

this space is Imperial’s acquisition of mobile firm Resolve

Mobile. On a continent where mobile is the primary mass

communication source, and cell phone advertising and

marketing is set to grow rapidly, it’s a significant move,

Truter notes, adding that Imperial has plans to leverage its

mobile capability to offer clients digital marketing opportuni-

ties. These would be supported on the ground. In addition,

the group is exploring brand-building avenues for clients,

which include mobile promotions with rewards of airtime or

vouchers for brand-loyal consumers. “This is more acces-

sible for African consumers and less risky than cash dis-

counts,” he explains. Notably, it is an effective mechanism

to build brand, rather than retailer, loyalty.

Imperial is also adding significant value to clients’ brands

through its ‘feet on the ground’, Truter states, and explains

the phrase: “This refers to Imperial’s ability to give brand

owners access to consumers via ‘feet on the ground’,

specifically through our people in-country who are talking

directly to consumers.”

In addition to benefiting its clients, this approach is ena-

bling Imperial to contribute to job creation, training and

skills development across Africa. “Our strategy is about

Enabling African growth and expansionImperial is rolling out a unique strategy, enabling clients’ African growth and expansion while minimising their risks and the continent’s complexities.

Our strategy is about working with, and for, Africa. We will uplift and upskill people in the countries in which we operate Dougie Truter,

Imperial’s Africa division CEO



working with, and for, Africa. Training is critical, particularly

in-country training. We will uplift and upskill people in the

countries in which we operate. Our businesses in these

countries will be ‘Africanised’; they will have support from

and report to South Africa, but they must manage them-

selves.” Imperial Health Sciences’ Supply Chain Academy,

which has become one of Africa’s leading providers of

training and development for people working in the public

health supply chain, reflects Imperial’s commitment to skills

development in Africa. It offers programmes – including

in-country training – from basic to postgraduate level, to

ensure that the supply chain is given the focus it warrants in

the healthcare sector in developing countries.

Imperial’s pan-African strategy focuses on Nigeria and

Ghana in West Africa and on eight East African countries

– namely Kenya, Tanzania, Rwanda, Uganda, Burundi,

Ethiopia, South Sudan and Somalia. Truter elaborates:

“In East Africa, Kenya is our operations base, since many

multinationals have African head offices and manufactur-

ing facilities there. In addition to this, its Port of Mombasa

is a gateway to East Africa. In West Africa, our focus is on

acquiring good infrastructure.”

Imperial’s acquisition of Nigerian logistics company MDS

gave the group instant 3PL (third party logistics) capability

in Nigeria and Ghana. Truter stresses, however, that acqui-

sitions are just one element of the organisation’s approach

to building its capabilities in Africa and customising its

experience in outsourced value chain management in order

to drive clients’ competiveness. “Our strategy is to lever-

age, partner and acquire, and not necessarily in that order,”

he explains. “Imperial will leverage its existing experience,

expertise, resources, capabilities and geographic foot-

prints. Where we need to build on this, we will partner with

other organisations to meet our clients’ needs, or we will

acquire the necessary capability.”

While the group may not actually acquire physical assets,

he says that clients can rest assured that Imperial’s African

partners will be ‘Imperial Enabled’. The term – which the

organisation has trademarked – refers to partners, sub-

contractors and suppliers having the training and expertise

to offer clients the same level of service they could expect

from Imperial.

With clients like GlaxoSmithKline, Johnson & Johnson,

Procter & Gamble, Bayer, AstraZeneca, Pfizer and South

African manufacturer Tiger Brands already benefiting from

Imperial’s Africa strategy, Truter’s assertion that it has been

an ‘easy sell’ is well founded. “This is a journey that began

with our clients’ needs; it is a journey that we

are taking with and for our clients. While the

path is constantly being refined and built on,

the support we have garnered makes it clear

that Imperial is on the right track as we strive to

enable our clients to unlock the full potential of

Africa,” he concludes. www.imperiallogistics.co.za

Local expertise and assets enable growth for clients in the African consumer market

Future-proofing ourclients supply chains

www.barloworld-logistics.com

To see how our smart supply chain solutions can improve your triple bottom line, call Mike Fanucchi 011 445 1600.

A B

At Barloworld Logistics, we go to great lengths to design, implement, operate and manage smart supply chain solutions.

Smart stands for sustainable, measurable, adaptable, resourceful and transformational solutions.

With innovative software and cutting edge technology we’re able to track, monitor and measure the impact on the environment at every turn.

Simply put, ethical, economical and environmentally friendly solutions. Solutions that reduce costs, increase efficiencies and improve carbon footprints.

While world-class corporate governance and global best practices ensure we create a sustainable future for our clients’ business as well as our own.

Our culture of operational excellence enable us to find new ways to minimise waste while maximising productivity, profitability and performance.


THE ABILITY TO MANAGE and adapt to change

is an essential competency that all firms need

today. Alan Milliken, senior manager on the Supply

Chain Capability Development Team at BASF in the

USA, talks to Simon Foulds about managing the change.

In general, change management is the process of transi-

tioning individuals or an organisation to a desired future state.

In supply chains, most organisation change is driven by

external innovations and the need to keep pace in a highly

competitive environment. Firms who have succeeded in inte-

grating adaptation to change across the organisation will find

it easier to effect and control changes in policies, procedures

and tools in supply chain management.

Failing to effect changeMany supply chain improvement efforts fail to achieve the

stated objectives and ensure changes are sustained going

forward. Change management is important in enabling a sus-

tainable competitive advantage via improvement initiatives.

From a supply change improvement perspective, change

management is the process, tools and techniques required

to manage people through the planned change in a way to

assure the effort results in the desired business outcome and

a change in the organisational culture to ensure sustainability

of the improvements.

Selecting the process to changeThe process should start with a systematic diagnosis of the

current process. This evaluation makes the need for change

clear to all stakeholders. However, the business must also

determine if it has the capabilities required to implement the

change. Concentrate first on the changes that are expected

to provide the most benefit.

Developing the vision and planA vision for the change mission is needed: e.g. provide

company-wide demand planning process excellence through

the implementation of best practices enabled by the latest

advanced planning software. Goals must also be clear: e.g.

increase on-time delivery performance, reduce production and

distribution costs, and reduce inventory. Elements that can be

quantified (e.g. increasing on-time delivery performance from

90% to 95%) as well as elements that can be difficult to quan-

tify (e.g. improving teamwork between sales, marketing and

production) should be included as benefits.

The work plan should include key change management

components, such as education/training and

performance management. Improvement pro-

jects often fail to deliver the desired results

because these components are either omitted

or are not properly planned and resourced.

The education and training component must

address all stakeholders and competencies

within the organisation.

In supply chain management, some generic

competencies such as collaboration, teamwork

and communications are very important, and

separate training classes may be necessary to

ensure success when improving cross-func-

tional processes. At the very least, the relation-

ship between such generic skills and success-

fully integrated processes must be addressed

in the change management process.

People in the change management processThe key components of success in any busi-

ness are people, processes, and technology.

If we view things from the perspective of these

Managing change in supply chain evolutionGlobalisation of the economy and rapidly advancing technology have accelerated change in the business environment. Technology makes it possible to communicate more eff ectively in support of change.




three components, we can determine to a large extent wheth-

er or not we will succeed with improvements. For example,

let’s assume we program our demand planning system to

provide better decision-making support, and we design an

improved process that requires key stakeholders to review

and use the new reports.

One can see the bottom-line benefits resulting from this

change. But people are resistant to change, with the biggest

issues being: “We have always done it this way,” and “What’s

in it for me?” Therefore, the change management process

must align expectations, communicate the need for change,

and provide education and training to support the transition.

Leadership’s roleTo successfully implement a change, we must first educate

leaders and gain their commitment to, and support for, it.

Simply approving a spending plan is not sufficient commit-

ment and leaders must communicate why the change is

needed, and what the expected benefits are. They need to

champion the effort.

A key function of leadership is to relate the need for

change directly to the business value proposition. For

example, if the change objective is to improve the demand

planning business, leadership must relate this objective to

the benefits that are expected in terms of revenues and

profits. One way they can do this is to relate more accurate

demand forecasts to improved service, costs and inventory.

Leadership must understand and communicate the idea

that improved demand planning helps sustain and increase

revenues through customer satisfaction. Improved demand

planning results in lower production costs and decreases

distribution costs.

A more accurate demand plan enables the business to

operate with lower inventories. In nutshell, leadership must

effectively communicate the need for change to all stake-

holders and counter resistance to change by aligning the

objectives of the change project with the overall strategies

of the firm.

Keys to successful change managementFrom a macro perspective, two things occur when we do not

manage change well. First, we do not receive the expected

return on investment for the efforts we put in. Second, with-

out a change management process, the benefits we receive

from a change are short-lived because as soon as the focus

is removed, people tend to revert back to the old ways of

doing things.

Therefore, to better manage change and ensure sustain-

able improvement, we must first understand why improve-

ment efforts fail to produce desired results and then act to

integrate change management into all supply chain improve-

ment projects.

Alan Milliken, senior manager on the Supply Chain Capability Development Team at BASF


ACCORDING TO RESEARCH by Ecobank, a

Togo-based bank, only 12% of African countries

trade with each other. By comparison, 60% of

Europe’s trade is within its own continent and

the figure is around 40% in North America.

Emmanual Chaves, CEO of Mozambique Airports, at the

recent North-South Corridor Development: China-Africa

Cooperation Forum, urged SADC to take the North-South

Corridor’s development on as a regional challenge.

Chaves said, “Countries like Malawi, Zambia, and

Zimbabwe will be well served with alternatives to taking their

products out of the continent through maritime and railway

transport and I encourage the region to focus on the project

because Africa should not have to wait for long to have the

corridor operational, so that we can give more options to

landlocked countries.”

The North-South Corridor, which South Africa has been

charged with championing as part of the Presidential

Infrastructure Championing Initiative, was introduced to

address this very issue. Eight of Africa’s 52 states are cur-

rently linked to the project, with clear aims of expanding the

project all the way to Cairo.

Ofentse Sibetlo, DTI’s deputy director of economic infra-

structure and logistics, states, “The greatest challenge for

the continent was around infrastructure development and

that while the eight African countries linked to the North-

South Corridor were glaringly different, they shared similar

core issues around underdeveloped infrastructure. Of the

19 projects identified, 7 have been classified as priority pro-

jects,” according to Sibetlo. These include Dar es Salaam,

Durban port developments in South Africa, Harare Beit

Bridge and Mozambique, among others.

“One of the greatest challenges is the issue of alignment

between each state. When we do site visits at Beit Bridge,

there is a glaring issue that shows we are not as aligned as

we should be, as this is seen as country specific, and there

is a belief that we will connect at the borders.”

In November last year, South Africa called for more private

sector collaboration. “As much as it is countries that trade,

it is more companies that trade and there is now an urgent

need to expand on our ideas,” Sibetlo concluded.

SADC urged to take on the North-South CorridorDespite the obvious benefi ts to the continent’s development, intra-Africa trade links are disturbingly low, with the majority of the region’s trade occurring with Europe, America and China.

According to

Africa Infrastructure

Country Diagnostics,

Africa will need to spend

a minimum of $ 93 billion a year

over 10 years to meet its infrastructure

needs, which call for a very substantial pro-

gram of infrastructure investment and maintenance.

Sinohydro in South Africa, the state-owned Chinese

hydropower engineering and construction company, has

500 overseas projects under construction.

Li Quanshen, chief representative of Sinohydro adds,

“There are 280 projects currently under construction in

Africa with a contract total of $21 billion. In Mozambique,

more than 10 small projects are under construction. In

Zambia, there are 14 projects valued at $1.8 billion, while

in Angola, there are 47 projects with a contract amount total

of $4.7 billion. We have the capacity, we are ready and

looking for collaboration with our local partners.”

Asked what projects Sinohydro currently had underway in

South Africa, Quanshen indicated that South Africa’s trad-

ing rules made it difficult, but that they were determined

to overcome the hurdles they had been presented with in

the past.

The 6th Forum on China-Africa Cooperation is scheduled

to take place in South Africa in 2015. This triennial ministe-

rial meeting between China and Africa is expected to:

• review the achievements of transport and infrastructure

projects between 2012 and 2015

• prepare potential projects for 2015 to 2018 and the

Pretoria Action Plan

• address capacity building and skills development

• explore the potential investment from China and other

BRICS countries

• identify feasible projects in SADC

• identify the cooperative partners with China, especially

for SEZs.



PORTS

IT IS LINKED to the industrial hub of South Africa,

Johannesburg, by the Maputo Logistics Corridor

Initiative, offering an alternative port of exit to South

Africa’s biggest port in Durban. Port Maputo’s commer-

cial director, Johann Botha speaks to Simon Foulds about

the port and its role.

What makes Port Maputo an asset to the country and to Southern Africa?• From a macro perspective, Port Maputo is located at the cen-

tre of the global logistics chain, serving the hinterland from

Southern Africa and being the closest to the Asian markets.

• The geographical advantage of Maputo is now being

exploited. The shorter road and rail distances to South

African customers is becoming more attractive with road

and rail improvements and border crossing initiatives

delivering success.

• We believe the efficiency at Port Maputo is the highest in

the region. We also provide flexibility as part of the service

offering and the approach of a tailored service to each cus-

tomer, to incorporate their unique requirements, is proving

to be extremely successful.

• The appetite for investment in Mozambique is at an all-time

high and as these opportunities are realised, the more the

growth plans will come to fruition.

• Port Maputo contributes 18% of the total customs revenue

of the country and 26% of the southern region.

What are the operating hours of the port?The port works 24 hours a day (in two shifts) all year, except

for 25 December and 1 January.

What is the size of the ships the port is able to accommodate?We can accommodate vessels with about 60 000 t GRT

as follows:

• max sailing draft: 12 m

• width: 32.5 m

• length: 250 m.

However with the dredging (to -14 m) planned for 2015, we

will be able to receive vessels up to 80 000 t GRT.

How many cranes operate at the port, and what types of cranes are they?The port operates bulk and break bulk operations using

ships’ gear but also have two mobile harbour cranes (60 t

and 40 t capacity respectively). The specialised container

terminal has two of its own gantry cranes (currently being

refurbished) and three mobile harbour cranes.

How many movements per hour?Container performance is 15 cycles per hour (one container

per lift, per crane). Bulk cargo is handled using skips or grabs

at 200 t per hour.

What is the average waiting period for ships entering the port?On average, the vessel waiting time is less than 24 hours but

for container vessels it is less than 12 hours.

How much volume moves through the port annually?In 2013, we handled 17.1 million t and the forecast for 2014

is 19.4 million t. For specifications see Table 1.

Can you please outline the port facilities and what each handles?• MCTL – car terminal

• ST AM – sugar terminal

• TCM – Matola coal terminal coal and magnetite

• MOZAL – aluminium terminal

Mozambican port propelling the region forwardPort Maputo has a mission of charting regional growth, by providing an attractive, competitive and integrated port service piloted by innovation and integrity.

How much volume moves through the port annually? 2010 2011 2012 2013

Throughput in tonnes

7 560 281 10 908 942 14 117 050 15 628 010

Container 1 212 921 992 116 844 228 1 546 482

Containers TEU´s

143 119 125 718 101 128 112 624

Total Through-put

8 773 202 11 901 058 14 961 278 17 174 492

Table 1


PORTS

• STEMA – grain and fuel terminal

• MLSC – vegetable oil and molasses terminal

• DP World Container Terminal

• MICD Intermodal Container Depot

• General Cargo Terminal – steel coils and pipes, bagged

cement, gypsum, bagged rice

• MPDC Bulk Minerals Terminal – ferrochrome, chrome ore,

phosrock, iron ore

• Cabotage Terminal of Maputo – local and imported cars,

cabotage cargo.

What ship repair facilities does the port offer? These are not available in Mozambique.

How many ships can be accommodated at any given time?We have 14 berths at the main port and 4 dedicated berths

at Matola port.

What have been the latest infrastructure developments at the port?Our current concession area is 140.6 ha, with an additional

5 500 ha available for expansion.

The following developments have been completed:

• the expansion of the port cargo gate to allow for six road

lanes servicing the movement of trucks into and out of

the port

• the rehabilitation and upgrade of the road network inside

the port with the addition of a perimeter ring-road of 2.1 km

to improve traffic flow

• the rehabilitation of cargo sheds to provide much needed

covered storage capacity with three shed already completed.

Planned developments include:

• the expansion of the coal terminal to a capacity of 30

million t

• the provision of an additional general bulk terminal with a

capacity of 8 million t

• the expansion of the car terminal to 15 000 slots

• the expansion of the container terminal to a capacity of

300 000 TEUs

• the rehabilitation of berths to provide

two deep-water berths with a draft

of 14 m

• the development of a Port Rail Master

Plan to guide rail investment and effi-

ciency improvement within the port.

What future expansion plans are in the pipeline to expand the port?Short term (2014 – 2015)

• Definitive bulk terminal

• Upgrade of berths 6 to 8

• Container terminal expansion (includes

additional yard; new rail terminal)

• Car terminal Phase 3

• New northern boundary road

• New wind and dust barriers

• Additional jersey blocks

• Two excavators and two backators

• Tug boat replacement

• Automated cargo systems.

Medium term (2016 – 2020)

• Matola coal terminal expansion – Phase 4

• Channel dredging – 14 m

• Bulk terminal Phase 2 (loading

equipment)

• Sugar terminal expansion

• Rehabilitation of arrival/departure

rail yard

• Internal rail shunting model

• Containers terminal expansion to berths

15 and 16.

Johann Botha, commercial director, Port Maputo

Commoditie 2010 2011 2012 2013BULK CARGO (tonnes) 7 474 788 10 798 679 13 917 586 15 320 078

CONTAINERS (TEUS) 14 964 981 21 612 803 27 863 666 30 678 757

CAR TERMINAL (tonnes) 85 493 110 263 178 514 180 491

Infrastructure• New slab at the bulk terminal

• Additional bulk shed for rock phosphate

• New internal rail lines

• Matola coal terminal expansion Phase 3.2

• Car terminal expansion Phase 2

• Berths 1 to 4 rehabilitated (for car carriers)

• Gate 1 expansion and road rehabilitation

• New MICD facility

Equipment• 12 x new payloaders

• 1 x Ram Revolver

• 14 x skeletal trailers

• New fenders for all berths

• Additional tug boat with 65 000 t bollard pull

• Pilot boat replacement


TRAINING

THE CURRENT MANAGEMENT training chal-

lenge facing the industry was brought into stark

relief during the recent SAPICS convention where

I chatted to a number of key company representa-

tives who have been forced to promote key staff members to

new levels of tactical and strategic management positions.

This has resulted in a situation where highly experienced pro-

fessionals, who may have just focused on warehousing and

fleet management, have found their

positions professionalised to the level

of supply chain manager.

The watershed 2013 CSIR State of

Logistics Report looked at the results of

this sudden onset of professionalisation

in some detail and found that the focus

on transforming individual positions

to management positions required a

broad componentry of skills, underpinned by a broader view of

the economy and in-depth managerial development.

In addition, the Scarce Skills List published by the Department

of Labour, revealed that the sudden professionalisation of the

industry will open approximately 132 000 positions. That

doesn’t mean that there are now 132 000 new vacancies but

rather that there are 132 000 tactical and strategic positions

required within key professional areas such as management,

control, supervision or tactics. In turn, each of these areas

needs to be made up of the correctly proportioned number of

operational, tactical and strategic personnel.

Where are all the managers?The reality is, however, that while there are currently enough

operations personnel, there are not enough supervisory ele-

ments built into the logistics industry. This therefore results

in enormous pressure to boost the number of supply chain

managers at strategic and tactical levels, as opposed to purely

functional operators.

To pull the necessary personnel through the ranks of each

of these four disciplines, the industry will differentiate between

tactical managers and operational people within each band

and where tactical managers are already positioned, they will

be uplifted to the broader supply chain management level.

The problem with achieving this is that tactical people urgently

require tertiary qualifications like a Higher Certificate, or a

minimum of a Bachelor’s Degree on a strategic level.

To date, professional bodies have offered a myriad of inter-

national qualifications that the industry in general has agreed

warehouse and fleet managers must have. Unfortunately,

these courses have a specific focus in the form of certificate

courses in specific areas. Due to its relative youth as a for-

malised professional discipline, the supply chain and logistics

industry has not yet developed a fully mature accompanying

academic discipline, resulting in a scenario where very few

professionals have a logistics-specific tertiary qualification. It

is virtually unheard of to find anyone with a Master’s degree in

Logistics, let alone a Doctoral degree, working in the industry.

An academic backboneFor the industry to continue growing as it is at present, this

academic discipline must grow with it. But there is disparity

between academic development and the needs of the industry.

The first reason for this is that it is simply not practical for

already employed supply chain and logistics professionals to

attend residential universities, given that the majority of them

are full-time employees.

Another problem is that for many management profession-

als, it has been 20 years or more since they were on the receiv-

ing end of a course or lecture, so it will take time for them to

re-adopt a ‘student/learning’ mindset and often they achieve

this only after they have failed their courses.

This is where the ILSCM has a role to play in growing the

current managerial skills base within the industry, as it aims to

address the specific need for higher education degrees and

management training for professionals.

With supported distance learning, students have the flex-

ibility of distance learning, with course materials and other

necessary resources being sent in the post or made available

online. This allows employed students to study at their own

pace. Contact classes are supplementary, not compulsory,

and contact with lecturers is technologically mediated using

tools such as white boards and online platforms.

The local supply chain and logistics fraternity is in dire need

of dedicated, tailored degrees. Far from being a death sen-

tence, this is an opportunity the sector should welcome and

feel supported in achieving. We honestly feel that there is a

model to support the industry in achieving this and we hope

to take the industry to far greater heights with this strategy.

Providing relief to skills-strapped industry

Rapid professionalisation of the supply chain and logistics industry results in highly Rapid professionalisation of the supply chain and logistics industry results in highly skilled professionals needing to further upskill quickly. skilled professionals needing to further upskill quickly. Mario LandmanMario Landman head of the head of the ILSCM (Logistics and Supply Chain Management), discusses how the industry can ILSCM (Logistics and Supply Chain Management), discusses how the industry can navigate these choppy training waters.navigate these choppy training waters.

THE AUTHORMARIO LANDMAN, head of the Insti-tute of Logistics and Supply Chain Management (ILSCM)

There is disparity between academic development and the needs of the industry


RAIL TECHNOLOGY

NORMAN FRISCH, global director of business

development for railway solutions at Huawei

Technologies, outlines how Africa can benefit

from improved rail communication.

Railways in Africa still use outdated legacy analogue

trunking systems. The systems are unable to maintain reli-

able and secure radio communication, directly impacting

customer satisfaction for the cargo sector.

The introduction of GSM-Railway (GSM-R) will see the

railways obtain a more effective communication system

with an unprecedented track record of delivering reliable

and secure rail communication services and also receive

a cost-effective digital replacement for the existing in-track

cable and analogue railway radio networks. Over the past

years, the promising sector of GSM-R technology, which

provides digital wireless and IP railway communications,

has reached major milestones. GSM-R is an international

wireless communication standard for railway applica-

tions. It is the mainstream in railway communication and

is widely used by railways across the globe. The system

provides seamless communication between train and

control centres. Through this system, communication

performance is guaranteed at speeds of up to 500 km/h

and this makes it far superior to traditional analogue

communication systems.

In March 2014, Huawei Technologies, in partnership with

Bombardier, was appointed as the official GSM-R provider

by Zambia Railways for the Chingola-Livingstone Railway.

This partnership will see Huawei provide the GSM-R tech-

nology as well as transmission equipment and Bombardier

will deliver the train signaling solution, which will have the

railway system running according to the European Train

Control System standard. This is a standard backed by the

European Union to enhance cross-border interoperability

of rail traffic allowing railway operators across the world to

benefit from the procurement of signaling equipment fol-

lowing a single Europe-wide standard for train control and

command systems.

Due to high incidents of vandalism in Africa, Huawei

and Bombadier tailored the European Railing Traffic

Management System solution to reduce wayside equip-

ment on the Zambian railway tracks. This means that, to

a great extent, the equipment that transmits the signaling

is located on board the train and not on the ground next

to the railway tracks. For the GSM-R system, specially

designed microwave transmission links between the base

stations (backhaul) will dramatically reduce installation

costs and allow less vulnerability to vandalism and theft

than commonly used fixed transmission networks.

This solution is a system that can be adopted throughout

the continent.

The migration of Africa’s railway communication systems

to GSM-R and ERTMS will bear great fruit in the future.

This is a solution to the challenge faced by African coun-

tries with national railway management systems that cur-

rently do not communicate between each other. With the

adoption of GSM-R, African countries not only have the

opportunity to utilise a reliable and secure rail manage-

ment system but can also expand trade relations across

the continent.

The future of railway

management in Africa

The importance of a viable transport infrastructure system is closely connected to the economic, technological and social renaissance of Africa. By Simon FouldsBy Simon Foulds

“The migration of Africa’s railway communication systems will, in future, bear great fruit.” Norman Frisch, Huawei


AIR CARGO

AIR DATA RELEASED by the International

Air Transport Association (IATA) for global air

freight markets show 2.3% growth in demand

(measured in freight tonne-kilometres, or

FTKs) over June 2013. That is however slower than the

4.9% growth reported for May.

Nevertheless, overall growth for the

first six months of 2014 stands at 4.1%

compared to the same period in 2013.

That is much stronger than the weak

1.4% increase reported for the full-year

2013 over 2012 levels. The strength-

ened growth has been underpinned by

improving global trade and stronger

business activity over the past year.

Tony Tyler, IATA’s director general and

CEO, says: “At the halfway point of the year, it is clear that

overall cargo demand is much stronger than in 2013. Carriers

in Asia-Pacific and the Middle East have been the biggest

beneficiaries of the improved mar-

ket conditions. Europe is doing

reasonably well, albeit still in

recovery mode. The weak spot is

the Americas.

“The general improvement in the economic environment

is always good news for air cargo. This may not however,

be a recovery as usual. First there are a lot of risks out

there – from conflicts and sanctions to potential national

defaults and fear of the Ebola outbreak. Second, while air

cargo is slowly emerging from two years in the doldrums,

time has not stood still. Logistics has become an even more

intensely competitive sector. Shippers value faster end-to-

end transit times, greater reliability and improved efficiency.

More clearly than ever, the building blocks for the future of

air cargo are found in global programmes such as e-Freight

and Cargo 2000. These are helping the entire value chain to

deliver on the expectations of their customers.”

Data for July shows a strong increase in air cargo.

Compared to July 2013, FTKs rose 5.8%. This is an accel-

eration in growth from June, when cargo demand grew at

less than half that rate.

The strong growth mirrors positive developments in

some key regional economies. After a slowdown at the

start of the year, global business confidence and trade are

showing signs of improvement again, especially in Asia-

Pacific. Global air cargo volumes have now surpassed

their previous July peak, in 2010, and look set to con-

tinue to increase. Taylor adds, “Overall, July saw growth

accelerate. That’s good news and it reflects

the continued strengthening of business con-

fidence at a global level. But the air cargo

industry is moving at two speeds, with a sharp

divide in regional performance. European car-

riers reported anaemic growth of just 1.8%

while all other regions reported solid gains of

5% or more on the previous year. In particular,

the 7.1% growth reported by airlines in Asia-

Pacific is encouraging as it demonstrates a

recovery in trade and a positive response to

China’s economic stimulus measures.”

July air freight volumes expandedStrong mid-year results disguise patchy regional performance.

Babcock DAF 15

Barloworld Logistics 32

Connecting Africa: Transport

Infrastructure 19

Ctrack OBC

FAW 10 & 11

Frost & Sullivan GIL 2014 28 & 29

Grindrod 22

Imperial Logistics 30 & 31

Inter Africa 18

KZN Growth Fund Trust 13

Mercedes-Benz IFC

Ngululu Bulk Carriers 25

Renault Trucks SA OFC, 6,7

Saryx Information System 21

Scania 4

Shell 3

Swaziland Railway 24

Total IBC

Trans African Concessions 34

World Wind Logistics 20

Index to advertisers

Tony Tyler, director general and CEO, IATA

IATA facts

African carriers grew 4.8% in June, much stronger than the year-to-date average of 3.1%. Growth has been affected by a slowdown in some African economies, notably South Africa. Improving trade data, however, points to a more optimistic outlook for the rest of the year. Capacity grew 0.3% in June, year-on-year, whereas, in July, African carriers’ FTKs grew 11.3%. However, African freight volumes remain highly volatile, and given the slowdown in South Africa this year, it is too early to say that prolonged growth acceleration is underway, capacity grew at 4.5%.

The strengthened growth has been underpinned by improving global trade

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