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Transcript of Focus August 2015
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On TranspOrT and LOgisTicsfocusontransport.co.za
Could HCVs become haulage heroes?
Building a public transport environment
Testing the latest lightweights in the Arctic
Supply chain survival: management failing
One fLeeT200 Freightliners,
countless happy customers
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b |FOCUS| August 2015
P00165.indd 1 2015/07/29 5:52 PM
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August 2015 |FOCUS| 1
cOnTenTs18
10
50
Follow us facebook.com/focus_mag twitter @FOCUSmagSA
2014
On TranspOrT and LOgisTics
One of the biggest Freightliner fleets conists of more than 200 vehicles. Find out why on page 8.
COver
Published monthly by Charmont GlobalUnit 17, Northcliff Office Park, 203 Beyers Naude Drive,
Northcliff, 2195. P O Box 957, Fontainebleau, 2032, South AfricaTel: 011 782 1070 Fax: 011 782 1073 /0360
eDITOrCharleen Clarke
Cell: 083 601 0568email: [email protected]
ASSISTAnT eDITOrGavin Myers
Cell: 072 877 1605 email: [email protected]
SUB-eDITOrJeanette Lamont
Cell: 083 447 3616email: [email protected]
JOUrnALISTSJaco de Klerk
Cell: 079 781 6479email: [email protected]
Claire RenckenCell: 082 559 8417
email: [email protected]
InDUSTrY COrreSPOnDenTFrank Beeton
Tel: 011 483 1421Cell: 082 602 1004
email: [email protected]
TeCHnICAL COrreSPOnDenTVic Oliver
Cell: 083 267 8437email: [email protected]
PUBLISHerTina Monteiro
Cell: 082 568 3181email: [email protected]
ADverTISInG SALeSMargaret PhillipsonCell: 083 263 0451
email: [email protected]
CIrCULATIOn MAnAGerBev Rogers
Cell: 078 230 5063email: [email protected]
DeSIGn AnD LAYOUTNelio da Silva
email: [email protected]
PrInTInGCamera Press
Copyright. No articles or photographs may be reproduced, in whole or in part, without specific written permission from
the editor. 2 Steering Column 4 Wheel Nut 6 Vics View 7 Letters40 Global Focus46 Short Hauls48 Naamsa figures49 Subscription form54 Global bus55 Hopping off
reGULArS
10 HeAvY TIMeS
A proposed ban on vehicles in excess of nine-tonnes from urban areas for six hours a
day has the industry up in arms. With many pertinent questions to answer, we ask how
(should this legislation be forced on the industry) this might affect the heavy commercial
vehicle segment of the market.
14 MAnAGeMenT: A WeAK LInK In THe (SUPPLY) CHAIn?
Rapid change is a permanent feature in the economy. This is highlighted in the 12th
supplychainforesight study released by Barloworld Logistics. With new technologies,
cut-throat competition and competitive ecosystems, the ability to make key shifts and
transform from within is becoming essential for survival.
22 HeAvY-DUTY HeeLS
Since August is Womens Month, its the perfect time to reflect on what women have
achieved in the local transport industry.
32 A vAn TeST In THe ArCTIC
Seen as the top set of trials in Europe, the 2015 instalment of the annual Arctic Van Test
has showed how similar modern competitor vehicles have become.
50 BUILDInG An envIrOnMenT FOr PUBLIC TrAnSPOrT
The recent Southern African Transport Conference featured an array of sessions about
urban public transport development in South Africa. Are our cities on the road to public
transport greatness?
AUGUST
c h a r m o n tm e d i a g l o b a l
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2 |FOCUS| August 2015
STeerInGCOLUMn
EduTrans: ACT Engineering, African Bank,
Bandag, Brainwave Careers, Checkpoint,
Elite Fibre, Ford Motor Company of South
Africa, Foton Trucks SA, Hino South Africa,
Irizar, Kanu Commercial Body Construction,
Mercedes-Benz South Africa, Peugeot Citron
South Africa, The Recycling and Economic
Development Initiative of South Africa
(Redisa), UD Trucks Southern Africa and
Volvo Trucks South Africa. A very special
thanks to MAN Truck & Bus South Africa for
sponsoring the cover.
Many university and further education
and training (FET) options specific to the
industry are discussed, as are the availability
of bursaries, scholarships, learnerships and
training programmes.
EduTrans was introduced in order to
alleviate the skills crisis within the wheels
game in South Africa. According to the
latest Adcorp Employment Index (a monthly
survey conducted by JSE-listed human
capital management group, Adcorp), there
are currently as many as 829 800 unfilled
positions for highly skilled workers across a
wide range of occupations in South Africa.
Many of these positions apply to the
motor and transport sectors, which are also
desperately in need of people with hands-on
and practical skills diesel mechanics, for
instance.
In fact, the skills shortage has widely
been described as one of the single biggest
i am hugely proud to tell you that
thousands of copies of EduTrans are
currently being distributed to schools
and educational institutions across
South Africa.
Published by Charmont Media Global,
publisher of FOCUS, EduTrans provides
learners with advice to help them decide
on a career; opening the eyes of learners
to the plethora of career possibilities in the
automotive sector.
It has been made possible thanks to the
unfailing support of a number of forward-
thinking companies in our sector.
I would specifically like to thank the
following companies for their support of
challenges facing the wheels sector.
Some of the various careers discussed in
EduTrans include those of driving instructor,
vehicle technician, motoring journalist, panel
beater and road planner.
Significantly, the information contained
within the guide is truly practical. For instance,
the guide contains essential information on
these various professions advantages,
disadvantages, required studies and earning
potential.
In addition, for the first time, EduTrans will
be available to learners on their mobile devices.
In partnership with the Mxit- and Android-based
CareerXplora, from the renowned Brainwave
Careers, the reach of EduTrans will extend to
thousands of more youths.
The response we have received from
educational institutions, thus far, has been
fantastic. They are hungry for resources such
as EduTrans and we are proud to be able
to provide South Africas learners with this
valuable booklet, says Tina Monteiro, EduTrans
publisher.
Charmont Media Global has a limited
number of run-on copies of EduTrans
available to FOCUS readers. Please contact
Bev Rogers at [email protected]
should you wish to acquire some copies.
Alternatively, view the online flipbook on our
website (www.focusontransport.co.za) on our
mobile app available on the App Store and
Google Play. |FOCUS
youngsters in our industry WanTed:
Charleen Clarke
The skills crisis is one of our
industrys greatest challenges.
After all, without diesel
mechanics, for instance, the
wheels of our industry will stop
turning. At Charmont Media
Global we are doing our level best
to address this crisis with a guide
called EduTrans A Guide to
Careers in the Wheels Game
It can be dangerous working on a road where cars
go flying by at 120 km/h.
Paperwork:
You dont need a degree to do construction. Most
construction companies train their employees to
do the job they hired them to do. All you need is
a love of the outdoors and some strong biceps.
Bucks:
Not a lot of money to be made. Expect minimum
wage as a construction worker, but you can make
more money when you become a foreman or
team leader.
We all know what road workers are. They are the
guys standing next to the road not looking busy
or waving orange flags. But this statement is
rather unfair. Building roads really is hard work.
You might think that you just scrape away the
bushes and throw on some tar, but its a lot more
difficult than that.
Tar, and concrete for that matter, needs to be
precisely mixed to work. Some of you may know
how skilled you need to be to mix a potion in
science class. This is exactly the same thing, only
on a bigger scale. Precision is really important in
this job. As important as being an engineer
many would argue. Road surfaces need to be
just right The tar needs to be mixed with care
and it takes ages to get the surface correct.
More than that, different roads require different
surfaces. So, not just slapping some tar on the
ground then.
Cool stuff:
Working outside in the sun all day with your
road-building mates is really cool. You wont have
to work in some stuffy office and the scenery
changes every day. And how many people get to
drive on something they built?
Lame stuff:
This is one of the most physically tiring jobs
you can do. In the summer the heat can get
unbearable, not to mention the cold in the winter.
ROAD CONSTRUCTION WORKERWithout roads we would be nowhere. Literally. From the very first time tar was discovered, accidentally by the way, man has been building roads to get from one place to another.
CAREERS
8
study advice
CAREERXPLORA ON MXIT - YOUR MOBILE CAREER GUIDANCE SUPPORT Choices, choices, choices thats what you are faced with during high school. What you decide will affect the rest of your life, so you need to choose carefully
faced with during high school. What you decide
What career path will you choose? What subjects
will you choose? What do you want to be when
you grow up?
If you are struggling to decide which subjects to
choose, or if you have no idea what to do when you
leave school, then welcome to CareerXplora the
Mxit app with all the answers.
This Brainwave Careers (NPC) mobile career
guidance helpline is an innovative, virtual helpline,
where any person using a cellphone, can seek
career-related advice via the Mxit platform.
Key differentiators of CareerXplora are:
inexpensive to use; text based (social platforms are the language of
the youth); easy to access anywhere (internet cellphone
based); help is provided to all regardless of age, race, religion or gender.
The learners first register when completing the
career guidance quiz and thereafter biographical
information is captured.
CareerXplora (previously MobieG) was launched
on March 12, 2012, and has already supported
more than 79 441 learners with career
information, guidance and tertiary information.
Due to Brainwave Careers main focus in career
guidance, a Career Chat Room has been set-up in
Randburg. Because social exchanges operate via
the internet, there are no geographical borders.
The highly qualified management team are
exceptionally knowledgable and have been a
part of the process from the beginning of Career
Xplora. The facilitators are friendly and have
up-to-date knowledge on all things career related.
For career related support please log-on and
chat with the knowledgeable facilitators at
CareerXplora!
The CareerXplora app on the android platform will be available for download from the Google Play Store in July.
LOG ON DETAILS:
ends
FACTORY WORKERHow many cars or trucks do you think are on the road? About a million? Actually, there are about a million vehicles in the Gauteng province alone. But where do all these cars come from? Answer: from the thousands of factory workers in South Africa.
Building cars is big business in South Africa.
Many overseas companies have factories called
subsidiaries - in our country that they use for
export purposes. We build the cars for them and
they take them away on big ships for delivery
around the world.
Inside these factories there are various lines
that work on all the tiny components needed to
build a car. Factory workers assemble them piece
by piece until a fully assembled car finally rolls off
into the sunset. Most of the modern assembly line
is motorised, but factories still need people to add
in that all-important human element. Machines
may be smart, but theyll never be as smart as you.
Some of these machines still need humans to
operate them, and thats where factory workers
take up the reigns.
Cool stuff:
Factory workers are well taken care of. Safety is
paramount and even if something goes wrong, the
manufacturer will still look after you. You probably
get a huge sense of satisfaction when you drive by
a car that you most probably helped put together.
Lame stuff:
Putting the same old piece on a car everyday may
get a bit boring after a while. An international
company can also close the doors of their factory
at short notice, which could leave you without a job.
Paperwork:
The only paperwork needed is a matric certificate.
Training is given on the factory floor. This means
you can walk in and they will show you how to
operate the heavy machinery. Various outside
courses are also on offer to help you on your path
to greatness.
Bucks:
Expect to earn between R4 000 and
R10 000 depending on the level at which
you work on the assembly line. International
companies actually use South Africa because
of the cheaper labour rates so unfortunately big
amounts of money are not involved. amounts of money are not involved.
CONTENTSIntroduction to the South African Automotive and Transport Industries 2Educational Institutions 4Career and study advice 8Bursaries and Scholarships 9Industry Apprenticeships and Internships 10Learnerships through merSETA 12Training programmes 16
Company profilesMAN Truck & Bus SA 19Volvo Trucks Southern Africa 22UD Trucks Southern Africa 24
CareersAdministration/PA for any automotive related office 28Advanced driving instructor 29Aftermarket sales 30Aftermarket engineer 32Auctioneer 33Bus or taxi driver 34Business manager 35CEO of international motoring/trucking company 36Classic car restorer 37Commercial sector buyer 38Damage estimator 39Dealer principal 40 Factory worker 41Fleet manager 42Motor industry Ombudsman 43Motor technician 44Motoring journalist 45Motoring/Truck industry engineer 46Panel beater and spray painter 47 Petrol station attendant 48 Producer on a motoring show 50 Public relations 51Publisher in the automotive industry 52 Racing car driver 53 Racetrack marshall 54 Road construction 55 Road planner 56Roadside assistance 57 Service/Aftersales consultant 58 Service station owner 59 Supply chain specialist 60Tollbooth operator 61 Truck driver 62 Tyre technician 64 Used car dealer 66 Vehicle branding 67Vehicle inspector 68 Vehicle finance advisor 69 Vehicle sales executive 70 Welder 71Parting thoughts Is the automotive industry for me? 72
EDUTRANS, a FOCUS ON TRANSPORT magazine social investment initiative published by CHARMONT MEDIA.Compiled with the assistance of interns from the South African Guild of Motoring Journalists.
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August 2015 |FOCUS| 3
STeerInGCOLUMn
NOW IN THE PALM OF YOUR HANDS!
THE LATEST CONTENT FROM THE WORLD OF FOCUS,
ON TRANSPORT AND LOGISTICS
Get the latest content or download the entire magazine Never miss a weekly FOCUS newsletter Interact with FOCUS on Twitter and Facebook Check out the latest multimedia content from the FOCUS
YouTube channel View image galleries from industry events DOWNLOAD it FREE for a limited time only from the Apple App Store and Google Play Store NOW!
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4 |FOCUS| August 2015
WHeeLnUT
Recently Ive also been lucky enough to
have sampled a number of vehicles that
boast some rather advanced radar- and
camera-guided safety features. These include
technology such as radar-guided cruise
control that could bring the car to a complete
stop and then speed it up again in accordance
with traffic conditions ahead.
A few have featured sophisticated self-
parking capability, where they will parallel
or reverse park themselves, and then pull
out again when youre ready to leave. One
particular car will even steer itself back into
its lane should the driver let it wander too far
over the dividing line, and recognise signs on
the side of the road.
The most amazing piece of news is that
these are all everyday cars that many of
our readers could afford to buy. Of course,
the multi-million rand luxobarges continue
to introduce this sort of technology at an
increasing rate, as different manufacturers
battle it out for tech supremacy.
The worry is that while this technology is,
indeed, impressive and may, in some cases, be
life saving it does bring about the possibility
of motorists becoming exceptionally lazy;
relying too much on the machine and landing
themselves in trouble.
Those among us who have been driving for
a decade or more might be able to resist this,
but what about the new generation of drivers?
At the recent Southern African Transport
Conference I heard a talk about the need to
develop a hazard perception test for novice
drivers.
I began my driving career at the point
where conventional cruise-control systems
were long established and electronic safety
aids, like anti-lock brakes and traction/
stability control, were beginning to make an
appearance in almost all vehicles in most
showrooms (my first seven years of driving
saw me learning the basics in cars that were
equipped with none of these, mind you).
Nonetheless, as Karien Venter, researcher
at the Centre for Scientific and Industrial
Research (CSIR) Built Environment, waxed
lyrical about her research, I couldnt help
remember myself as an 18-year-old novice
driver and think: I cant believe I actually did
these things and had that attitude.
Venter began by quoting international
research, which states that novice drivers lack
the ability to perceive threats in their driving
environment. Their perception of risk and
situational awareness takes time to develop,
as does their ability to coordinate these
abilities with that of physically driving a vehicle.
This, it was suggested, could be down
to the fact that a persons brain is not yet
fully developed by the time he or she takes
the wheel. Novice drivers need to learn to
control their vehicle, react to different road
characteristics and conditions and drive safely.
Making this more difficult is the fact that
the personalities, as well as social and peer
influences, of younger drivers manipulate their
behaviour and ability to perceive risk.
Novice drivers, therefore, tend to be more
aggressive and reckless and take more risks.
This is not a good thing when they are
already more prone to distraction, as well as
the loads placed on a driver by fatigue and
monotonous roads ...
Furthermore, the novice driver will tend
to increase speed in complex road situations,
while the experienced driver will reduce speed.
Unfortunately, Venter says that there is
still a lack of research into the problem.
This means the development of a hazard
perception test (and its inclusion in the
process of acquiring a learners licence) might
be some way off.
The younger generations of drivers might
not be too perturbed. Theyd probably be
happy to let the automated technology (that is
filtering into even the more basic vehicles on the
road), help them along just as weve become
accustomed to allowing modern technology to
do in so many other aspects of our lives.
As a relatively young driver myself, and
someone with a deep passion for road
safety and the need to increase the skills of
drivers, I tend to find that more worrying than
comforting. |FOCUS
and the fall in the skills to
operate them. As motor vehicles
become more automated, there
is a risk of drivers becoming
overly complacent that the vehicle
will take care of everything on
their behalf. And, as younger
generations of drivers take to the
roads, they might eventually lack
the skills that experienced drivers
usually gain over time
Gavin Myers
oF machines
the
rise
There has been much hype
recently about automated vehicles
undergoing ever-increasing
advances in development. Indeed,
you would have read in the July edition of
FOCUS that the very first licensed autonomous
truck has hit the road in North America.
Daimlers head of truck product engineering
said, at the launch of his new Freightliner
Inspiration Truck, that its autonomous drive
was never designed to replace the driver.
Its there to make his job easier; allowing him
more time to tend to administrative tasks
from his mobile office and reducing fatigue
levels.
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August 2015 |FOCUS| 5
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6 |FOCUS| August 2015
vICSvIeW
One of this countrys most respected commercial vehicle industry authorities, VIC OLIVER has been in this industry for over 50 years. Before joining the FOCUS team, he spent 15 years with Nissan Diesel (now UD Trucks), 11 years with Busaf and seven years with International. Do you have a comment or thought you would like to share based on this column? Visit www.focusontransport.co.za and have your say!
in these tough economic times, where
profit margins are under the spotlight,
no commercial vehicle operator can
afford to have vehicles standing, while
the panel beater waits for parts or the
go-ahead from the insurance company, as
vehicle standing costs are extremely high.
For example, a three-axle truck tractor
that is coupled to a set of super-link trailers
costs an estimated R4 000 a day while
the vehicle is in the repair shop. An owner
still has to pay the vehicle instalment,
crew, insurance, licence and overheads
irrespective of whether the vehicle is on the
road working or standing in the repair shop.
Plus, it is not generating any profit.
Lack of parts is one of the major
factors that can stall a vehicle repair. On
investigation, it was found that some truck
and bus manufacturers provide a quick and
fast parts service while others dont.
My advice is to investigate the availability
of parts when buying a new commercial
vehicle. Your investigation should include the
common panel parts that may be necessary
to get your vehicle back on the road quickly.
As most truck and bus manufacturers
now insist that genuine parts be used, if the
vehicle is still within the vehicle warranty
period or on a maintenance contract, your
investigation should include the price of the
genuine parts from the manufacturer.
Repair parts pricing should also be
investigated, as this could have a direct
effect on your insurance rate and the lifetime
operating cost of the vehicle. The difference
in prices of common parts between one
truck supplier and another can be as much
as 20 percent.
A quick response from your insurance
company, and examination of the work to
be done to repair the vehicle, is another
important factor. Time is often lost while
waiting for the insurance assessor, getting
the approval to do the job and guarantee of
final payment.
Another factor that can cause a delay is
the panel shop that you and your insurance
company select to do the repair. Good repair
shops know the importance of providing a
fast turnaround time and pride themselves
on offering a seven- to ten-day delivery period.
Ensure that your insurance company selects
a professional accident repair shop.
The quality of the repair will also
have a direct effect on the resale value
of the vehicle. To ensure that the work
has been done professionally, get involved
together with your insurance company in
the final inspection and acceptance of
the vehicle. It is not only the quality of the
cosmetic appearance of the vehicle that is
important.
Often vital components like radiators
are not replaced, but are instead poorly
repaired to save costs; this could result
in an expensive engine failure later
on once the vehicle is back on the
road. |FOCUS
Getting your commercial vehicle back on the road, as soon as possible after it has been in an accident,
is a major benefit in this tough economic environment. What factors stall the repair work and how can
you get it completed as quickly as possible?
the troubles oF truck accident
repairs
-
August 2015 |FOCUS| 7
lettersFOCUS
HIJACKInG A reALITY
Your story about truck hijackings in the June edition
of FOCUS was spot on. Crime rates in South Africa
are expected to continue their upward climb as
economic and social conditions deteriorate a
trend that is already being evidenced in the sharp
climb in hijackings of trucks, cars and cargo, which
are then sold into the illicit local and cross-border
markets.
Approximately 50 percent of stolen and
hijacked vehicles are disposed of within South
Africa, 30 percent are exported to other countries,
while 20 percent find their way into chop shops
and the second-hand parts market. As long as
cash-strapped consumers are prepared to look
the other way to save a buck and fuel demand,
criminal syndicates will continue to operate and
flourish.
Our own truck hijacking statistics showed
an increase of 16 percent in the last financial
year, which ended in February 2015. This aligns
with similar figures released by the Road Freight
Association, which reported 1 150 truck hijackings
across the industry during the same period.
Economic stress causes an increase
in criminal behaviour. During the financial
crisis of 2008/9, truck hijackings in
South Africa soared by 61 percent when
compared with South African Police Service
(SAPS) stats for 2006/7. During the recovery
years of 2011/12, the incidents fell by
42 percent.
Various studies also state that there are many
additional factors that drive this trend, including
the presence of youth gangs, drugs, alcohol
consumption and the availability of firearms. Crime
is also exacerbated by high levels of perceived or
real corruption, instability in our law enforcement
agencies, and perceived low prosecution rates of
criminals.
Tackling youth unemployment has to be
our single most important focus going forward.
Unemployment poses a high risk to social stability
in South Africa. Business and government must
find common ground if we are to prevent the
ticking time bomb of a forecast that, by 2020,
there will be ten million young people who are not
economically active.
John Edmeston
Global CEO, Cartrack Holdings
TO CLArIFY I have just read your kind words regarding the
FOCUS conference in the online magazine and was
truly humbled. I think Gavin Myers did a fine job of
encompassing my speech and I appreciate the
effort he made.
I would have only praise expect for one small
point of accuracy. After summarising the rand/
dollar issue, the article reads: Its also why
mechanics are expected to produce high-quality,
safe repairs and fast turnaround time
That is not the case. It is not our volatile
currency that causes this it is the fact that too
often operations and their clients demands take
priority over all other elements, which gives rise to
this bad practice of workshops and maintenance
appearing low on the priority list.
But, thank you. I had prepared what is essentially
my talk, minus the anecdotes and names and so
on, but feel that your piece covers it better than I
could have done.
Jim Ward
General Manager Technical
Unitrans Freight and Logistics
Thanks for the great feedback, Jim, and for clearing
up what was meant in the rand/dollar paragraph
for our readers Ed.
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8 |FOCUS| August 2015
COverSTOrY
benefits of our fleet as we can do this with our
Freightliners, says Henning.
With the transport and logistics industries
being increasingly competitive, Henning
highlights how crucial it is for a player in this
space to use every single factor as an added
advantage.
It is important for an operation such as
ours to run a fleet that offers very low running
and maintenance costs. We did not have to
look further than Freightliner as these trucks
continue to offer us exceptional return on
investment, he adds.
There are a number of much larger listed
companies out there that take over smaller
operations very easily, and so it is vital for us
to offer our customers competitive pricing,
while offering the fastest delivery time. This is
one of the major reasons why we add to our
fleet every three years or so. It ensures that
the Freightliners are less likely to break down
and we can keep our customers satisfied,
he says.
Having bought most of its vehicles from
Garden City Motors in Pietermaritzburg,
Willowtons Freightliners are powered by
Detroit Diesel engines; a company that is
wholly owned by Daimler AG. This in-house
engine ensures that the trucks continue to
perform at the highest standards.
Henning is quick to add that it is not only
the machines that make Willowton such an
influential player in the segment, but, more
importantly, it is the people who are the heart
of the operation.
Our drivers are a most important
part of the entire equation and we value
them dearly. As Freightliner is a leader in
modern technology, we make use of all the
training it offers. We really endeavour to
take good care of our drivers by providing
trucks with a comfortable ride quality, as
they spend a lot of time in their offices,
he quips.
Then there is the outstanding and
mutually beneficial relationship that we have
with Freightliner and Mercedes-Benz South
Africa. Through this we feel like part of the
family, as we have access to everyone from
top management right down to workshop
staff.
Running only Freightliners means
that trade-ins are easier. All the trucks
are also serviced by the same dealer
and we can reward our drivers, as we
can compare apples with apples. All of
these factors mean that we remain as
competitive as we can be, retaining our
valued customers, thanks to Freightliner,
concludes Henning. |FOCUS
One of the most comprehensive Freightliner fleets in South Africa is owned by Willowton Logistics
WilloWton logistics and Freightliner keep
deLiveringT
he ability to deliver to every single
customer, every single time,
has made Willowton Logistics
a respected leader in the local
transport industry. Helping to make this
possible is the companys fleet of more than
200 Freightliners.
Quite simply, Freightliner is our partner
because its trucks provide excellent value
for money, unmatched reliability and frugal
fuel consumption, says Frans Henning, MD
of Willowton Logistics, having taken delivery
of 61 trucks as part of the companys latest
order.
Established in Pietermaritzburg seven
years ago as a subsidiary of Willowton Oil,
the company provids transport solutions to
a number of clients in a variety of different
sectors including fast-moving consumer
goods (FMCG). This has resulted in its fleet
being made up of taughtliners, refrigerated,
tanker, container and skeletal trucks.
Willowtons reputation to execute all its
customers requests quickly and effectively
has earned it the trust of Sappi, Clover, Sasol,
Coca-Cola and a host of others.
A large number of our customers use the
just-in-time business model and it is imperative
for us to be able to deliver goods at the exact
time they need them. We continue to reap the
-
??????????????
August 2015 |FOCUS| 9
-
10 |FOCUS| August 2015
A proposed ban on vehicles in excess of nine-tonnes from urban areas
for six hours a day has the industry up in arms. With many pertinent
questions to answer, we ask how (should this legislation be forced on the
industry) this might affect the heavy commercial vehicle (HCV) segment of
the market
more (light)
For local distribution?heavies
HCvMArKeT
-
August 2015 |FOCUS| 11
HCvMArKeT
as we know, the HCV segment
of the market consists of
vehicles in the 8 501 to
16 500 kg gross vehicle mass
(GVM) category. This means that, while the
majority of the segment would be affected
by the proposed ban, there is a very small
part of it that falls outside of the stipulations.
This brings rise to many questions: will
buyers of larger vehicles opt for those they
can buy in this segment so as to avoid
the ban? Will the HCV segment rise to be
bigger than the medium and extra-heavy
commercial vehicle (EHCV) segments?
Would buyers opt for vehicles in the upper
reaches of the MCV segment and would
the EHCV segment dwindle?
First though, why the proposed
legislation? At the recent Road Freight
Association (RFA) convention (see the July
edition of FOCUS for the full report) this
was a topic of intense debate. With the
restriction on driving hours announced in
reaction to a perceived increase in carnage
on the roads that involves goods vehicles,
the Associations CEO, Sharmini Naidoo,
said that a lack of professionalism by some
operators has cast the industry in a negative
light and done a lot to damage to the already
waning credibility of the transport industry.
Comments by the Department of
Transport to regulate where it sees fit
are very worrying. Its the legislators
right to legislate and regulate, however,
it must do so to achieve a legitimate
purpose. The acid test should be whether
the legislation serves such a legitimate
purpose and whether there are means to
achieve it. In many instances this is highly
questionable and there is no obligation
to justify the proposed legislation or to
consider stakeholders concerns, she said.
Naturally, the proposed legislation has
been severely slated for, among other
things, the harm it will cause to the
transport industry and the economy, while
not actually addressing the root cause of
the problem a lack of enforcement and
corruption.
Without wanting to have their
businesses negatively impacted by virtue
of losing half their daytime working hours,
operators would probably need to increase
their fleet size with smaller vehicles
such as the lightest HCVs or even the
biggest medium commercial vehicles. This
suggestion is one of the many factors that
would lead to a rise in operating costs
that would, ultimately, be passed onto the
consumer.
How much impact could running even
a smaller HCV have, though? Leslie Long,
senior manager marketing and demand
planning at Hino South Africa, explains
that most transport applications cannot
replicate the same productivity with smaller
vehicles, as the consumption implications
are just too great.
If a smaller vehicle saves an operator
20 percent on his fuel bill compared to
a larger vehicle, and he has to get two
smaller vehicles to replace one larger
-
??????????
12 |FOCUS| August 2015
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 were 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 businesses as well as our own.
Our culture of operational excellence enables us to find new ways to minimise waste while maximising productivity, profitability and performance.
-
August 2015 |FOCUS| 13
HCvMArKeT
one, he will see an increase of 60 percent in his fuel costs, he
explains.
(In other words: eighty percent of the original single large
vehicles operating costs, per vehicle 80 x 2 equals 160
percent of the operating costs of the original single vehicle
representing 100 percent. Hence a 60 percent increase in
costs.)
We may not see an effect on the HCV market as a whole,
but rather on the operating conditions of transport companies.
People will not be happy to buy down and wont be able to afford
it, Long says. It just does not make sense for them to have to
have extra vehicles running around.
With all players in the HCV segment producing these and
other vehicles locally, the legislation could have a potential
implication on local vehicle production. What if all truck
operators stop buying trucks for six months because they dont
know what to do? asks Craig Uren, COO at Isuzu Truck SA. Our
factories would be slowed down, wed have to re-address our
production runs and possibly get rid of some of our labour, which
would create further unemployment.
Thats completely against governments fundamental aim
of growing the GDP and creating employment! he says. Take
a massive distribution centre in Midrand, Gauteng, for example,
which would probably land up being shut down its there in the
first place because the location makes it easy to move goods
around Gauteng. Trucks and buses are fundamental drivers of
our economy.
Clearly, banning large goods vehicles creates more problems
than it solves for both operators and vehicle manufacturers
alike. The real question is, though, what the eventual implications
might be for the South African economy? The industry can only
fight the legislation through its various channels and wait and
see. |FOCUS
Should proposed legislation come into effect, heavy commercial vehicles like these Hino 500s might be some of the biggest roaming our cities.
-
14 |FOCUS| August 2015
SUPPLY CHAIn MAnAGeMenT
to this years survey represented a broad
variety of companies by size; ranging from
those turning over R1 billion or more per
annum, through to smaller entrepreneurial
businesses with a turnover of less than
R50 million.
Given its unique scope and depth, the
survey offers an important view of how
leaders are dealing with massive shifts in
the local and global environment, explains
Stubbs.
Many companies are poorly equipped to
deal with change and are often caught flat-
footed, she adds. They are always behind
the curve and are forced to catch up with,
and react to, trends at great cost.
Those companies that cant adapt risk
losing everything to those that can. Strong
and visionary leadership is essential for
tackling and managing change. It should be
viewed as a strategic process, with a clear
and comprehensive picture of the objective
and reasons behind it. An embedded system
of constant communication and planning
should also be present.
Stubbs adds that one of the studys
most important findings was an impending
shortage of leadership, visionary and change-
management skills within organisations.
While in all the previous supplychainforesight
surveys, the lack or shortage of skills has
been viewed as a major business constraint,
it is the first time that a lack of necessary
leadership and visionary skills has been
identified as a skills gap at managerial level.
eMBeDDInG CHAnGe
MAnAGeMenT
Barloworld Logistics points out that, in
many organisations, change management is
mishandled. Companies typically establish a
team to implement predetermined changes.
This team is usually not involved in the
monitoring of the need for change, nor does
Rapid change is a permanent feature in the economy. This is highlighted in the 12th supplychainforesight
study released by Barloworld Logistics. With new technologies, cut-throat competition and competitive
ecosystems, the ability to make key shifts and transform from within is becoming essential for survival
a Weak link in the (supply) chain? ManageMenT:
The study, which is entitled:
Embracing Change for a
Sustainable Future, reveals
that most organisations are
poorly equipped to anticipate major market
shifts and adapt accordingly. The greatest
obstacle is to change people, explains
Kate Stubbs, executive of marketing and
communications at Barloworld Logistics.
Leaders are required to create the context
and environment for change in order to effect
change seamlessly and successfully.
Based on independent research
conducted by the consulting firm Frost &
Sullivan, on behalf of Barloworld Logistics,
the report gathered the views of over 370
professionals representing companies
across South Africa.
More than two-thirds (66 percent) of the
respondents hold a director-level position,
demonstrating the relevance that supply
chains play in business today. Respondents
-
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August 2015 |FOCUS| 15
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16 |FOCUS| August 2015
it have the vision relating to what needs to
change and why. It operates on an ad hoc
basis, without a consistent and established
strategy.
This is a fundamental strategic error.
Managing change is essentially an executive
function, which requires the support and
input of all those affected by it. Instead of
handing the issue to one team, change needs
to be a permanent item on the executive
agenda. It is encouraging to note, however,
that businesses are becoming aware of the
need to prioritise change management and
approach it differently.
Respondents in the supplychainforesight
study ranked the ability to anticipate change
and adapt quickly as their second top-ranked
business constraint. When coupled with
the highest-ranking business objective of
identifying and managing change, this clearly
highlights the acknowledgement that change
is disrupting the way companies operate.
On a similar note, respondents ranked the
top supply chain challenge as the willingness
to change, thereby breaking old habits or
relationships, which is invariably a leadership,
management or communication issue.
It would appear that it is less about the
willingness to change than it is about the
identified and articulated need to do so.
Indeed, the issue may well be identifying
the need to change before being forced to
do so by circumstances which relates to
the required executive function of seeking
and anticipating change for continuous
improvement.
In addition, there appears to be little
confidence in the ability of organisations
to identify and respond to trends. Only
42 percent of survey respondents said
their organisations are constantly in touch
with anticipated shifts in the market and
predicting game-changing trends.
With regard to capabilities to implement
change within organisations, 45 percent
of respondents believe it is well executed,
but needs improvement. Only seven
percent responded that it is extensive and
comprehensive.
With these activities being vital to the
success and sustainability of businesses, the
lack of competence is a worry, adds Stubbs.
THe rIGHT SKILLS
Identifying and anticipating change is a
specific skill that needs to be present within
leadership teams, along with the ability to
manage change. Increasingly, these skills are
found to be rare if not entirely absent
within many management teams.
The lack of relevant skills was a key element
of concern among respondents, and reflects a
sentiment that has been expressed for several
consecutive years. Yet, this year the response
indicated that the concerns regarding skills
shortages could be related to the lack of
visionary leadership and the need for change
management skills and not purely to the
vocational skills of the workforce and lower
level management, as previously stated.
Few could argue that investment in skills
and expertise is the best approach for long-
term business success. Today, the skills
required are different and businesses need
to recognise this.
Forward-thinking organisations need to
identify what skills they have, understand the
trends that will impact the business, and then
identify the types of skills and abilities they will
need in future to best adapt to and evolve
with market shifts.
Without doubt, organisations that build
up management expertise in the area of
identifying and managing change will be
best positioned to leverage new trends and
opportunities and enjoy sustainable, long-
term growth, concludes Stubbs. |FOCUS
SUPPLY CHAIn MAnAGeMenT
The Barloworld Logistics supplychainforesight study revealed a lack of leadership and skills at management level.
-
??????????????
August 2015 |FOCUS| 17
Youre not buying this.What youre buying is so much more than a truck. Its a
commitment. A partnership.
A whole solution designed and built around the working
life of a vehicle, where Total Operating Economy is more
important than just the initial purchase cost.
Uptime is crucial. If the vehicle is not working, its not
generating income. That is why the highest levels of
reliability and durability are built into every model in our
extensive range.
As a one-stop shop, the complete vehicle is also supported
by one of the most proficient service networks in SA.
Offering the greatest availability of parts and assistance,
whenever and wherever you need it.
Payload is the next big thing. We have engineered our
trucks to be the lightest yet strongest they can be. This is
the key to offering the greatest payloads on the market.
And then theres the fluctuating cost of fuel. With Scania
you can be confident that you are operating one of the
most fuel efficient vehicles on the market. We can proudly
say that this has been the case for decades.
Adding all this up, also taking the cost of R&M, finance,
insurance and residual values into consideration, you will
understand why we focus on total operating economy.
So if youre just buying trucks, were probably not the
supplier for you. But if youre buying a partnership,
a commitment, a total construction solution, then we
should talk.
There is a better way.
-
18 |FOCUS| August 2015
FOCUS OnMInInG
Mining has been around
for thousands of years.
According to Ian Shaw,
author of The Oxford
History of Ancient Egypt (published by Oxford
University Press), Ancient Egyptians mined
malachite (a copper carbonate hydroxide
mineral) at Maadi, an affluent district in the
south of Cairo. Shaw adds that Egyptians
used the bright green malachite stones for
ornamentation and pottery.
Increased construction led to expeditions
into Wadi Maghara, on the Sinai Peninsula
(which wasnt part of Egypt at the time), in
order to secure minerals and other resources
not available in Egypt itself, between 2 613
and 2 494 BC. Quarries for turquoise and
copper were also found at Wadi Hamamat,
Tura, Aswan and various other Nubian sites.
The oldest mining site is, however,
reportedly located in Swaziland. Many
ancient tools were found during initial mining
operations in 1964 by the Anglo-American
Corporation at the Ngwenya mountain range,
the Swaziland National Trust Commissions
website points out.
Three ancient mines were indentified and
named the Lion, Castle and Stag caverns.
In 1967, charcoal nodules from some of
the more ancient mine entrances were sent
to both Yale and Groningen radiocarbon
laboratories where Carbon 14 testing was
carried out, notes the site.
A date of about 41 000 BC was obtained,
making this the oldest known mining operation
in the world. However, as this is the extreme
range of carbon dating, the mines may be
even older than this. It is thought these ores
were mined until at least 23 000 BC. At Lion
Cavern it is estimated that at least 1 200 t
of soft haematite ore, rich in specularite, had
been removed in ancient times.
The mining industry is also playing a major
part in the present day The mining sector
is as important to Scania as it is to the South
African economy, explains Chris Swanepoel,
from Scania South Africas mining division.
We rely heavily on mining projects and on the
transport of minerals.
He adds that if the mines are doing well,
there is material to transport. If the mines
arent doing well, then the reverse applies.
As much as a struggling mining industry
knocks the South African economy, it has
pretty much the same effect on all the
truck original equipment manufacturers
(OEMs). These industries really
are interconnected.
We are relatively new in the mining game,
including in-pit type trucks, but weve evolved
tremendously and have taken into account
what the mines want, especially with regard
to safety standards and requirements.
Swanepoel points out. Weve built various
offerings around that. We have done a lot of
work in the fields of falling object protection
systems (FOPS) and roll-over protection
systems (ROPS) in our trucks.
He continues: We can offer staff carriers
to move personnel in and around the mine
that are FOPS and ROPS certified and comply
with the legal requirements. We really have
looked at the specific requirements of the
industry to provide solutions that meet all the
safety requirements.
The mining sector is a difficult one in which
to operate. All the OEMs are in the same
boat, Swanepoel tells FOCUS. As a market,
it is hugely demanding, so the trucks run a
very heavy-duty cycle. Theyre expected to
never break down and, when they do, theyre
expected to be up and running in a very short
period of time.
you scratch my
back
People have been extracting minerals for thousands of years We use them for decorative purposes, to
construct vital infrastructure and in life-saving technologies its no wonder that so much is dependent on
the mining sector. We delve into the relationship between the transport and mining industries
-
August 2015 |FOCUS| 19
FOCUS OnMInInG
Scania is overcoming this challenge by
offering different service contracts at various
premiums. Obviously, wed like to look after
the fleet from start to finish, but we have other
solutions where we can put a technician in the
customers workshop or handle the running
of the workshop it is all down to finding the
right solutions for the customer.
The mining sector is also very depressed
at the moment, Swanepoel points out. The
current trend is to baton down the hatches
and make use of what theyve got, so it is a
very challenging time.
The harsh conditions are also having a
massive effect on operators. According to
Standard Bank, transport operators, who are
a key component of the economic fabric of
rural towns, are finding it increasingly difficult
to operate in an environment where pressure
on margins, volatile fuel prices and increased
operating costs are placing a stress on their
profitability especially in cases where they
rely on a single contract for their survival.
These smaller transport operators often
operate outside large metropolitan areas and
primarily serve the agriculture and mining
sectors, but their role in their local and
regional economies is often underestimated,
says Toni Fritz, head of Vehicle and Asset
Finance Business, at Standard
Bank.
Without these transport contractors,
farmers and mine operations in far-flung
corners of the country would find it difficult to
move products and commodities, she adds.
Within their towns where fuel, service and
supply facilities, drivers and local labour rely
on the transport sector their contribution to
the economy is even more important.
Some of these smaller operators rely on
single, medium to long-term contracts with a
single customer to finance their operations.
Although this gives them certainty over the
contract period, there are several factors
that restrict them from opening up their
businesses to further opportunities, says
Fritz.
These inhibiting factors include:
Trailers that are customised to a customers
specific needs. If a transporter is carrying
coal, for example, the trucks in the fleet
are configured to meet these particular
requirements. It is, therefore, difficult to
carry other loads that do not fit
the configuration of the
vehicle, or run the risk of contamination.
Single contracts (especially in the mining
sector), often involve collecting raw material
at one point and conveying it to another. The
cycle is then repeated. For the operator, this
means having to return to the originating
point without a revenue-producing load.
In a crowded market, where operators
are forced to aggressively reduce margins
to obtain business, smaller operators
can often work off a lower cost base than
larger transport companies, but they
have to work their equipment harder. This
has consequences for fleet reliability, as
scheduled maintenance can sometimes be
sacrificed to meet delivery deadlines or to
bolster margins.
The primary responsibility of any
bank is to manage risk and ensure that
transport operators are able to meet their
commitments, says Fritz. This sometimes
requires that customers cash
-
20 |FOCUS| August 2015
flows are stress-tested to assess their
sustainability under different scenarios. In this
case, the ability of the operators to diversify
their operations and the strength and duration
of single contracts become critical factors.
She adds: There is no doubt that many
small contractors are beginning to feel the
strain of the ongoing economic downturn.
As soon as signs of financial stress become
evident, it is important that operators
approach the bank for assistance and advice.
As soon as this step is taken, plans can be put
in place to assist viable operations to meet
their financial challenges.
The future does hold some hope,
however, as Swanepoel points out. The
future is pretty bright. The market cant
hold this negative trend forever and when
it turns, we have to be ready. Were waiting
in anticipation for the turn, because it will
come, and it will come with a fair amount
of haste.
This will be wonderful for OEMs and
operators alike. |FOCUS
FOCUS OnMInInG
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August 2015 |FOCUS| 21
We know it takes a lot more than wheels and a chassis to keep things moving forward.
It takes a clear understanding of how your business operates. It takes expertly trained
people who care about providing the best advice and the best service possible.
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-
22 |FOCUS| August 2015
WOMen InTrAnSPOrT
With one profession after
another opening up to
female participation, it
was only a matter of
time before the fleet world started producing
its first women leaders. Ernita van Dalen is
one of these pioneers. She is shaking things
up, not just by being one of the first women
in the job, but also by introducing new ways
of doing things.
As national office manager at Essential
Foods, the grain division of Pioneer Foods,
she is responsible for, among other things,
the administration of the companys total fleet
of trucks and forklifts. It was tough in the
beginning, she says. You could see people
werent all that comfortable with a woman
coming in and questioning things.
She pioneered the use of Standard
Banks Managed Maintenance service in
the company. Through this, the servicing
and maintenance of each vehicle is
tracked and managed by a centre of
experts, who ensure that mechanical
workshops dont overcharge or carry out
unnecessary work.
Transaction authorisation was another
service that she introduced to the company
when she moved the fleet to Standard
Banks Fleet Management Card system. It
automatically vets fleet card transactions
and declines those that exceed certain
parameters.
Another trailblazer in the world of
transport is Wilna Steyn, chief financial
officer, Africa, at the Babcock International
Group. I have been involved in the transport
industry for nearly five years now. Prejudices
against women still exist in the workplace,
but far less so than a few years back.
After all, women make up more than half of
our population, so excluding them from the
transport industry would result in it being less
evolved than others, she says.
We currently have three women
apprentices within the Babcock apprentice
school, something we did not have five years
ago. In addition, the company develops talent
by sending employees on an MBA programme
at the Strathclyde University in Scotland. The
first intake of two employees included a
female employee, who was recognised as a
future business leader.
Management is actively working to
increase the role of women within Babcock
on a daily basis. Women have the power to
shape and change the transport industry.
Our greatest power lies within our ability
to create room for everyone to contribute,
make things happen and build a team that
can bring about change and achieve goals
together, Steyn adds.
Valentia Hobbs has been general
manager for marketing communication at
Volvo & Renault Trucks South Africa for
the past two-and-a-half years. She has been
in the commercial vehicle and automotive
industry for over ten years, though, even
tackling the petroleum industry, at Total
South Africa.
Initially I thought that you have to be
really tough to be in this industry, but later
realised that all you need is to strike a
balance and that you are able to be tough
and still maintain your femininity. There is a
place for women in all industries in order for
a business to be successful, Hobbs says.
Businesses and companies are evolving,
I have seen a major transformation over
the years where women are included in key
decision-making and play active roles within
organisations.
Since August is Womens Month, its the perfect time
to reflect on what women have achieved in the local
transport industry
heavy-duty
heeLs
Initially I thought
that you have to be really tough to be
in this industry, but later realised that all you need is to strike a balance and that you are able to be tough
and still maintain your femininity.
-
August 2015 |FOCUS| 23
WOMen InTrAnSPOrT
In line with this, Hobbs describes the
many initiatives that the Volvo Group has
in place to promote diversity and inclusion,
which are aimed at developing a culture and
working environment where everyone can do
their best work.
Apart from the obvious ones
such as women in senior management
roles and development programmes
for women, Volvo has an apprenticeship
programme for diesel mechanics where
women are encouraged to apply. We
have two women on our current
programme and three who have completed
the programme already and are qualified
diesel mechanics.
Her advice to aspiring women: With all
the opportunities available, you can make
your mark and be challenged. You just have
to be bold enough to take the step!
Women in other transport sectors are
also aiming to break the mould, to inspire a
new generation and improve diversity. The
third annual Women in Maritime Conference
took place on July 30 and 31, at the Monkey
Valley Resort in Noordhoek, Cape Town. The
conference discussed womens involvement
in the business base that underlies port
operations.
Similarly, the second annual Women in
Rail and Logistics Conference will be held
on August 20 and 21, at the Amabhubesi
Conference Centre in Randburg,
Johannesburg. |FOCUS
Opposite: Babcocks Wilna Steyn says women have the power to shape the transport industry.Above: Volvos Valentia Hobbs says there are now more opportunities available to women than before.
Pic
cou
rtes
y of
Jus
tin G
rant
Pho
togr
aphy
Earth A stoep, stoop, porch, veranda or portico (whatever tickles your colloquial fancy) is loosely de ned as a roofed platform along the outside of a house, level with the ground oor. It is, however, more than that
Its a place where you can enjoy a sundowner after a hard days work, a place where you kuier with friends and discuss whatever is on your mind, or where you cuddle up with a good book on a glorious day. It doesnt have to be a physical place, built out of bricks and mortar either
Charmont Media Global has launched its CyberStoep, where all these activities are happening digitally. This website aims to entertain as a ock of journos review, give their opinion and write about absolutely anything and everything under the sun.
Charmonts two agship magazines (FOCUS on Transport and Logistics and SHEQ MANAGEMENT) are performing exceptionally well, but they are very specialised publications, says Jaco de Klerk, CyberStoeps Stoep Manager. CyberStoep, on the other hand, allows us to diversify our offering, which means more material for our readers and an array of topics for our journalists to write about in short, fun all-round.
This diversity is exactly what sets the Stoep apart from other lifestyle websites, which mainly focus on a certain demographic, speci c market segment or product offering. There is no topic too controversial, place too far- ung or product too scarce that can escape our Stoeps chitchat, adds De Klerk.
Catch more at www.cyberstoep.co.za
cyberstoepJoin us on our
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24 |FOCUS| August 2015
FInAnCe AnDInSUrAnCe
several original equipment
manufacturers have their
own in-house financing
departments. MAN Financial
Services, for example, aims to build long-
term and trustworthy relationships with
its customers. We do this by offering
customised products that make it possible
for companies to plan and calculate the costs
of their projects, says Wanda van Rooyen,
business support and insurance manager at
MAN Truck & Bus SA.
MAN Financial Services can offer
unique industry and commercial-vehicle
expertise. The company guarantees reliable
partnerships, personal contact, competitive
and fair market prices, customised solutions,
transparent and unique processes and short
lines of communication with quick decision-
making, she adds.
Scania Financial Services strives to
provide flexible financing and insurance
solutions, for both new and used vehicles,
buses, trailers and ancillary equipment.
Scania Finance and Insurance offers
instalments and frequency tailored to clients
needs, variable interest rates and package
solutions including insurance, repair and
maintenance, as well as service contracts.
UD Financial Services also offers a range
of products and services as part of its aim to
provide a complete and convenient service
throughout a vehicles lifespan. These vehicle
financing products include options such as
instalment sales, financial and operating
leases, rentals as well as full-maintenance
agreements.
Owning and operating trucks, or other
heavy-duty commercial vehicles, is an
expensive exercise. Increasing costs of
diesel alone can force some truck operators
out of business. Truck finance specialist,
TruckFinancing.co.za, aims to make obtaining
truck finance easier, with flexible finance
options for owners and operators who may
not meet stringent prime lender criteria.
The lenders at TruckFinancing.co.za
understand that vehicle owners need to
keep overhead costs low. If truck operators
dont have a good credit rating and an
established company with long-term
customers, finding sources of finance for
commercial trucks through conventional
lenders can be difficult.
For those who wish to rent a vehicle,
rather than buying one, there are also options
available. One such offering at the moment is
from Tata, in conjunction with Wesbank, in
which clients have the option to rent the Tata
Novus 7548 6x4 truck tractor. (Turn to page
34 for more details.)
When it comes to commercial vehicle
insurance, there are also many options
available. Insurance Underwriting Managers
(IUM), for example, strive to deliver innovative
insurance solutions and services.
Founded in 2004 by certified
professionals, IUM began as an administrator
in the industry. Since 2010, IUM has grown
into a fully-fledged insurance underwriting
manager.
IUM offers insurance brokers extensive,
comprehensive, cost-effective and tailor-
made insurance solutions, allowing clients
one point of contact to access a wide range
of products.
IUM has an extensive range of commercial
insurance products and services. Its core
products are underwritten by Guardrisk
Insurance Company Limited.
A sluggish economy can be a formidable
foe when applying for any type of business
finance, or purchasing insurance. So make
sure you opt for flexible solutions, which give
you predictable costs and manageable risks,
for a profitable business at the end of the
day. |FOCUS
One of the goals of commercial vehicle finance and insurance is to make it easier for owners or operators
to run a successful business. Clients need the best vehicles available at the most affordable prices. We
take a look at whos offering what
Finding the right vehicle at the
righT price
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righT price
AND PAY 0% INTEREST OVER 36 MONTHS *
INVEST IN YOUR NEW IVECO STRALIS HI-WAYBEFORE 30 SEPTEMBER 2015
Contact your nearest Iveco dealer or call us on 0800116967for more on this BIG DEAL DEAL
0%INTEREST OVER
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PLUS WELL ALSO PUT DOWN THE FIRST R100 000OF YOUR DEPOSIT*
Terms and Conditions Apply and Finance is subject to approval*
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26 |FOCUS| August 2015
ISUzUTrUCK SA
Our industry must
get smarter for our
customers to move
forward, says Craig
Uren, COO at Isuzu Truck SA. The days of
simply supplying hardware are gone, which is
why weve changed our supply chain to allow
us to get to market more quickly.
Explaining the vision, Uren continues:
Our focus is no longer on what leaves the
factory gate. Together with our dealers and
suppliers, Isuzu Truck SA will have a more
integrated relationship with current and future
customers during the life of their trucks.
Uren is referring to the first step in the new
Isuzu Trucks ENTERPRISE business model,
the 100-percent acquisition of Port Elizabeth-
based KANU Commercial Body Construction
and Automotive Chassis Technologies (KANU/
ACT). Effective as of August, the new venture
will allow Isuzu Trucks to have the capacity
to initiate and build products according to
customer specification.
Everything can now be processed from
one point of contact when buying trucks from
us, says Uren. It is expected that up to 30
percent of vehicles that leave Port Elizabeth
assembly plant of Isuzu Trucks will have KANU-
built bodies fitted.
Significantly, Uren explains, this means
that the time taken to buy or replace a truck
is drastically reduced. Customers will now be
able to get on the road within weeks, instead
of months
This is a logistical solution that will have
benefits for us, the bodybuilders and the
customers. For a small operator, the process
of procuring a replacement truck, for example,
can take up to three months after it has been
bought, built, sent round the country to have
a body fitted and then back to be delivered.
Thats too long, and during this time they lose
a lot of revenue.
Likewise, we can provide a large operator
a full turnkey supply with consistent build
quality, he says.
Bringing with him vast experience in all
aspects of the assembly line, current plant
manager, Sipho Sandla, will join the Isuzu
Truck South Africa executive team and take
on the role of GM of the KANU/ACT operation
in Port Elizabeth. The current owner, Tony
Wright, will stay on in an advisory capacity for
a minimum of 12 months.
Costs and other market negatives
suggest we need to do things differently, be
more proactive, box smartly and challenge
Isuzu Truck South Africa is changing the way it does business by creating an improved supply chain that
enables clients to move forward and grow. GAVIN MYERS explains
an enterprising
fuTure
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August 2015 |FOCUS| 27
ISUzUTrUCK SA
the status quo. To do this we have to find
opportunity in adversity, Uren says, alluding
to more to come for a really integrated
relationship with customers during the life
cycle of their trucks.
The adversity Uren talks about is the
current state of South Africas economic
environment, which is having a direct effect
on the local truck market. Nothings changed
locally over the last two years; the variables
just ebb and flow and shift the balance. Eskom
is currently having a huge influence, causing
havoc on productivity. As such, the truck
market has come down quite quickly in the last
three months, due to the various impacts on
businesses, he explains.
The impact of the power crisis on business
behaviour has created a market fall-off of
five percent in the year to date. The extra-
heavy market is down by 7,5 percent, as is
the medium segment, while the bus market
has remained flat and the heavy commercial
vehicle segment has shown growth of 5,5
percent year to date.
This growth in the heavy segment is
due to behavioural change in the industry
operators are either buying down when
replacing large vehicles, or up if replacing
smaller ones. They are adjusting their capacity
options and trying to find the optimum levels.
We saw this during the financial crisis of
2008/9.
Uren thus expects the market to end
on less than 30 000 units this year (as
opposed to the companys initial forecast
of 32 000 at the beginning of the year).
However, slight growth is expected
in 2016, but that will be mainly due to
replacement cycles and not overall growth
of the economy.
We understand that its tough to run a
business in this environment, but it is a big
opportunity for us to continue to provide to an
industry that needs to keep going, says Uren,
who is pleased to report that Isuzu Truck SA
has been able to benefit from a stable run
between the yen and rand for the last 12
months.
This has helped us manage our business
and deal with the other variables, he says.
Isuzu Trucks currently has a market share
of 13,6 percent (at the end of 2014 it was
12,9 percent), which equates to the company
growing its volume just on 20 percent a year
to date, compared to the same period last
year.
Were happy where we are, given the
market at the moment, explains Uren. Each
year we strive to retail 4 000 units and we are
trending for that in 2015.
During the course of the third quarter,
the Port Elizabeth plant of Isuzu Truck SA is
expected to achieve a milestone on 30 000
units produced since the formation of the
company in 2007.
There is no doubt that the production
facility at Isuzu Trucks will continue to
move from strength to strength, especially
given the companys new ENTERPRISE
business model and the advanced supply
chain options it will bring to the brands
operators. |FOCUS
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28 |FOCUS| August 2015
neWveHICLeS
The medium commercial vehicle
(MCV) market is currently Hino
South Africas stomping ground.
During the first six months of this
year the company has had a leading market
segment share of 24,7 percent.
However, vice president of Hino South
Africa, Ernie Trautmann, says this is a highly
competitive market segment. The company
has, therefore, expanded its 300-Series MCV
contender to provide its most comprehensive
product offering yet in this segment.
The expanded range, which will help
the company achieve its target of 4 000
unit sales by year end, comprises three
new crew-cab derivatives and four new
automatics. An approximate body and
payload allowance of between 3 390 and
5 950 kg is still on offer.
In response to customer feedback, the
714 and 915 manual transmission models
are now available with a crew cab.
The 300 crew cab provides safe and
spacious transportation for up to seven
people and is already proving popular with
municipalities, utilities and telecommunication
providers. Rear passengers benefit from
their own heating and air-conditioning system
as well as cup holders.
The existing 815 automatic transmission
crew-cab model has had its wheelbase
shortened again in line with customer
feedback.
The six-speed automatic transmission
fitted to this model is now also offered on
the 614 and 714 short-wheelbase models.
This smooth-shifting torque-converter box
includes overdrive fifth and sixth gears for
improved fuel economy. Drive goes to a full-
floating, single-reduction hypoid rear axle.
All Hino 300 models are powered by a
four-litre, four-cylinder Hino turbo-intercooled
diesel engine in one of two states of tune
either 100 or 110 kW of power and 392 or
420 Nm of torque respectively.
Hino was very specific with its decision to
equip the 300 with an automatic transmission
and not an automated-manual transmission
(AMT). Says Leslie Long, senior manager,
marketing, product and demand planning at
Hino South Africa: The automatic provides
smoother, optimal shifts with less lag between
them. There is a lot less wear and tear on
the transmission components and there is no
clutch to replace. An automatic transmission is
more effective from an efficiency point of view.
Typical customers interested in the
automatic models are cash-in-transit
companies, the mining industry and bakeries
for which the company has developed a
specific vehicle.
Hino feels that the new crew cabs (with
their shortened wheelbase) and automatic
models will help combat driver fatigue by
easing the driving process and enhancing
manoeuvrability.
This comfort and ease of driving was
aptly demonstrated in the high-speed driving
and simulated manoeuvrability and parking
challenges Hino had lined up for us, at the
media launch held at the Gerotek testing
facility outside Pretoria.
Trautmann is, understandably, confident
that the new additions to the 300-Series
range will make Hino even more competitive
in South Africas keenly contested MCV
market. The enlarged range emphasises
the importance we place on customer
and dealer feedback, while our customers
continue to benefit from our strategy of
continuous improvement, he says.
An array of value-added Hino-Care
services, including a 24-month/unlimited
kilometre warranty, towing assistance
and 24-hour roadside assistance,
enhance the value proposition of the
300-Series. |FOCUS
Hino has expanded the appeal of its medium-weight 300-Series by adding some key models to the range.
GAVIN MYERS experienced them
What customers
WanT
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August 2015 |FOCUS| 29
TH
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UP
ITE
R D
RA
WIN
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OO
M (
CT
) 46
654/
E
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46654 Hyundai CV Print 297x210.indd 1 2015/07/24 17:09
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30 |FOCUS| August 2015
WHEELSWOrLD On
Japan is an interesting place. On the
one hand is the countrys modern-
day economical prowess and high
living standards: Japan has the
worlds third-largest economy by nominal gross
domestic product (GDP) and the worlds fourth-
largest economy by purchasing power parity.
Its population is said to enjoy the highest life
expectancy of any country in the world and the
third-lowest infant mortality rate.
On the other hand, the country is
deeply rooted in its long-evolved culture. Its
architecture, gardens, clothing and cuisine are
famous the world over.
Visiting the country, even reading about it,
is mind-boggling, and understanding how all the
ultra-high-tech modernity and cultural values
come together is fascinating. Its impressive, yet
almost paradoxical.
While the Japanese Archipelago consists
of 6 852 islands, 97 p