PARTNER WITH THE LEADING FLEET MANAGEMENT CARD
PROVIDER TO THE PRIVATE SECTOR*
africa AWARDS
June 2023
WWW.BUSINESSFLEETAFRICA.CO.ZA
HINO ENTERS
EXTRA-HEAVY
SEGMENT WITH
NEW 700
TFN REVOLUTIONISES
FUELLING ALONG
MAPUTO CORRIDOR
VOLKSWAGEN LAUNCHES
AMAROK SINGLE CAB
Proudly supported by
BUSINESS FLEET AFRICA | June 2023
WWW.BUSINESSFLEETAFRICA.CO.ZA
More about
Business Fleet Africa
EDITION 26
JUNE 2023
20
32
Hino enters extra-heavy
segment with new 700
TABLE OF CONTENTS
3 Editorial
Business
4 Why leasing is becoming a viable
alternative
6 Unleashing the power of leadership
8 The South African logistics continues its
recovery
Interview
10 UD Trucks unpacks Better Life Strategy
Road Safety
12 Why tyre safety should be your number
one priority
In the headlights: HCV Fleet Vehicles
14 Hino tackles extra-heavy sector with
new 700
16 UD’s Croner Bus range arrives
18 Hino and Fuso to merge
20 Test drive: MAN TGX 26-510
22 Unleash your business potential with
Isuzu’s FTR 850
Fleet Management
24 Used cooking oil powers BMW Group
logistics
26 TFN revolutionise road transport along
Maputo Corridor
28 Ctrack partners with Hollard to reward SA’s
best truck driver
30 How to choose the right tyres
32 Accident management requires a
systematic approach
Supply Chain and Logistics
34 Building a sustainable logistics supply chain
35 Increase in global container capacity
drives growth
36 New fleet of electric Woolworths vehicles
hits the road
In the headlights: LCV Fleet Vehicles
38 Suzuki launches all-new Grand Vitara
40 VW adds single cab Amarok to offering
41 Citroën enters SA’s budget segment
42 Toyota launches budget Vitz
Industry Sales
43 SA commercial vehicle market performs
strongly during May
44 Buyers Guide
PARTNER WITH THE LEADING FLEET MANAGEMENT CARD
PROVIDER TO THE PRIVATE SECTOR*
africa AWARDS
June 2023
WWW.BUSINESSFLEETAFRICA.CO.ZA
HINO ENTERS
EXTRA-HEAVY
SEGMENT WITH
NEW 700
TFN REVOLUTIONISES
FUELLING ALONG
MAPUTO CORRIDOR
VOLKSWAGEN LAUNCHES
AMAROK SINGLE CAB
Proudly supported by
38
16
June 2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
Editor
Reuben van Niekerk
reubenvn@vodamail.co.za
082 837 8801
Editor-at-large
Suzanne Walker
suzanne.walker3@gmail.com
083 3789 664
Contributors
Roger Houghton
houghtonr@mwebbiz.co.za
082 371 9097
Publisher
Jacques Wilken
jwilken@mweb.co.za
083 299 7312
Supplement Editor
Tristan Wiggill
Tristan@businessfleetafrica.co.za
Advertising and Marketing
Charlene Kruger
charlene@businessfleetafrica.co.za
076 807 4613
© 1997 WCM Media CC
Disclaimer
While all reasonable precautions
have been taken to ensure the
accuracy of information supplied,
neither the editor, the proprietors,
nor the publishers can accept
responsibility for any inaccuracies,
damages, or injury which may arise
there from.
Automotive industry continues to
outperform SA’s economy
The South African motor industry is in an extremely weird
phase right now. The transport sector defied expectations of
under-performance in the fourth quarter of 2022 to be the best sectoral performer and
all indications are that the transport sector once again outperformed other sectors of the
South African economy during the first quarter of 2023. Statistics South Africa is expected
to release the real first quarter GDP growth rate imminently, with expectations of a small
positive quarterly growth rate allowing the economy to avert a technical recession.
Although we might just dodge the official recession classification the average South
African is certainly feeling the pinch, a situation that is only being made worse by a variety
of additional factors including political instability and widespread loadshedding. However,
for some reason the local motor industry remains largely unaffected.
The commercial vehicle industry is currently rolling out product on an almost weekly
basis. Just this month Volkswagen launched the Amarok single cab, UD’s Croner bus hit the
road and Hino entered the extra-heavy segment with their 700. As we went to print Volvo
launched their electric trucks to the South African media and we will bring you all those
details in the next issue.
Vehicle sales reflect the same with Lightstone reporting that overall sales for the first
quarter of 2023 were 1.7% higher than for the comparable period in 2022, and 20% above
sales for the same window in 2021. Probably more significantly, new vehicle sales are,
so far in 2023, 3.1% ahead of the Q1-2019 volume, a sign that the market has essentially
recovered to pre-COVID levels.
The commercial vehicle market continued to perform strongly in May and on a year-to-
date basis sales are up 13.9% from 63 723 units to 74 862 units in the five-month period.
The LCV market improved by 14.4% on a YTD basis with 62 567 units. Sales in this highly
competitive segment rose by 38.5% to 12 825 units in May.
While the South African economy might be a difficult place to survive and do business
in at the moment, people need to move and businesses need to move goods and the
transport industry seems to be more resilient than other sectors for the time being.
Fuel price relief
While international product prices are edging higher and the Rand remains weak against
the US dollar, fuel users in South Africa will welcome some relief even if it is less than was
initially predicted. On the 7th of June both grades of petrol decreased by 71 cents, while
diesel decreased by 80 cents (50ppm) and 84 cents (500ppm) respectively.
Decreases in the price of diesel are especially welcomed given that the fuel accounts
for significant input costs across all sectors, which are often passed on to the consumers.
Let’s hope this is the start of a continued decrease in fuel prices.
Reuben van Niekerk
Editor
Editorial
EDITORIAL
WWW.BUSINESSFLEETAFRICA.CO.ZA
Win big with Business Fleet Africa
R10 000 up for grabs in the Business Fleet Africa readers competition.
To kick start 2023, we at Business Fleet Africa will be rewarding one lucky reader with a R10 000 prize.
Each month (From the February 2023 issue) there will be a set of questions, the answers to which
can be found on the pages of that issue of Business Fleet Africa. Each month, up until the July issue,
you can enter as many times as you like. The winner will be drawn randomly on the 31st of July 2023.
To view the fifth round of questions, enter and for the Terms & Conditions of this competition
please click on the link above.
Enter here
Historically vehicle repayment schemes
were fairly straightforward, with
transport operators paying a monthly
repayment for a predetermined number
of months. At the end of that period, you
owned the vehicle outright.
For transport operators to remain
competitive in the current economic
and political environment, they need to
review and evaluate the various vehicle
financing options currently available to
fleets and operators of all sizes. Due to
the changing circumstances, the best
method of paying for a vehicle a few
years ago is not necessarily the best
one now, and vehicles are increasingly
being seen as bad investments by astute
financial experts.
New vehicles and trailers are expen-
sive, coupled with continuing increases
in interest rates, while wear and tear
due to drivers and the deteriorating
road network result in rapid deprecia-
tion and the need to invest additional
capital when the time comes to replace
assets.
Vehicle financing options have
evolved drastically in the last few years,
and there are now a wide variety of
options to suit every need and pock-
et. When considering buying a new
vehicle, it is important to research all
the options available to you holistically
by considering all aspects, including
the interest rate, loan period, monthly
payment as well as the total cost of the
finance agreement across the contract
term to ensure that you are getting the
right solution for your needs and usage
requirements.
One option that has grown in popu-
larity in recent years as South Africans
forego the desire to own vehicles is
leasing and full-maintenance leases. This
sees operators pay one amount for the
use of the vehicle, with other monthly
costs such as insurance and mainte-
nance included.
“A full maintenance lease or a full
maintenance rental provides a com-
prehensive finance and maintenance
package for businesses and private
BUSINESS
‘Full maintenance leases
are a cost-effective
way for operators and
business owners to
acquire the vehicles
they need to run their
business and utilise
them by paying a
once-off monthly fee.
They will have the
use of the vehicle in a
hassle-free manner at
a much lower rate.’
Why leasing is becoming a
viable alternative for businesses
BUSINESS FLEET AFRICA | June 2023
WWW.BUSINESSFLEETAFRICA.CO.ZA
individuals that require the use of a
vehicle or number of vehicles for various
purposes but do not want to take owner-
ship of or the risk of maintaining vehicles
and then disposing of the vehicles at the
end of the term,” says Derick de Vries,
Executive Head of Standard Bank Fleet
Management.
These agreements allow users the full
use of the vehicle for an agreed term,
after which the vehicle is returned to the
financing institution.
Full maintenance agreements free
up capital, which would otherwise have
been tied up in your fleet, for in-
come-generating opportunities and are
tax-deductible as an operating expense
under company tax regulations.
“Full maintenance leases are a
cost-effective way for operators and
business owners to acquire the vehicles
they need to run their business and uti-
lise them by paying a once-off monthly
fee. They will have the use of the vehicle
in a hassle-free manner at a much lower
rate,” says de Vries.
Leasing offers several distinct
advantages, including the fact that no
cash is needed upfront to secure the use
of vehicles and that the use of vehicles
is funded from cash flow; it doesn’t add
to the users’ debt portfolio. In a volatile
market, leasing makes sense because
the payment and terms are fixed and are
a hedge against inflation.
Leasing eliminates surprises, as there
is no risk of disposing of the vehicle at
the end of the contract or unexpected
expenditure on service and mainte-
nance. Budgeting and forecasting are
accurate as costs can be fixed for the
selected period.
However, there are also some
disadvantages, including that you never
own the vehicle and that realisation
of the residual value resides with
the lessee.
The maintenance component of a
full-maintenance lease will be based
on annual kilometres travelled, and
the operating conditions and excess
kilometres will be charged at a higher
rate. It is important to do research and
know your requirements to choose the
right package for your business and the
operational requirements of the vehicle
being acquired. It is also important to
establish who is permitted to perform
maintenance and repairs, what limits are
in place, and ascertain if this is feasible
within your geographic area of opera-
tion. The choice of vehicle and brand,
as well as their after-sales network, is
important in this regard.
The flexibility of leasing is increasingly
making it an attractive choice, as is the
fact that leasing can be tailored to suit
the specific cash flow needs of individual
companies and operators.
Leasing agreements are now an im-
portant offering and a desirable method
of acquiring depreciating assets such as
trucks. At the culmination of the lease
period, there are a couple of options,
including replacing the vehicle with a
new, more productive model, taking
ownership of the vehicle that has been
leased or extending the lease period for
the same vehicle.
“For larger operators who are
engaged in several different transport
operations, it might be a good idea to
consider more than one method of ve-
hicle financing. Each method will have a
different effect on the cost of operating
trucks, the taxes you pay and your profit
margin,” concludes de Vries. BFA
June 2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
BUSINESS
BUSINESS FLEET AFRICA | June 2023
WWW.BUSINESSFLEETAFRICA.CO.ZA
“What does employee engagement
look like at present? Brace yourself for
these eye-opening statistics: a mere
8% of employees are truly committed,
while a staggering 46% could potential-
ly sabotage your business due to the
rampant phenomenon known as quiet
quitting. The gravity of this situation
is magnified when you consider its
detrimental impact on your profitabil-
ity,” says Brand Pretorius, renowned
business leader and doyen of the motor
industry.
Pretorius emphasises that inspiration-
al leadership is the number one critical
success factor in any organisation,
particularly during challenging times. It is
the key to achieving sustainable success,
as it lays the foundation for exceptional
employee engagement, translating into
heightened productivity levels, superior
service quality, enhanced customer
fulfilment, and, ultimately, increased
profitability. But before delving into the
intricacies of leadership, let us first ex-
plore the potential future environment.
The unknown of unknowns
Futurists have coined the term VUCA
(Volatile, Unpredictable, Complex,
Ambiguous) to describe the current
business landscape. However, according
to Pretorius, due to unprecedented
events like the pandemic and Russia’s
invasion of Ukraine, we can expect a
VUCA on steroids, leading to a world
that grows increasingly disorderly. The
rapid acceleration in technological
innovation, coupled with the disruptive
nature of business models, has resulted
in a fourth industrial revolution driven
by the surge of social media, digitisa-
tion, big data analytics, AI, and robotics.
As the physical, biological, and digital
worlds merge, people have become
digital beings, with nearly four billion
individuals connected through smart-
phones. The world is shrinking, and
the concept of distance is becoming
obsolete.
“We have transitioned from the
new normal to an era of never normal,
Unleashing the power
of leadership
‘Leadership truly
matters. It is an essential
prerequisite for
sustainable success, akin
to electricity that powers
countries, organisations,
businesses, sports teams,
and families towards a
better future. In fact,
as John Maxwell, a
well-known American
author, asserts that
everything rises and falls
on leadership. Without
quality leadership,
people metaphorically
stumble in the
darkness, devoid of
direction. The inevitable
consequence of a lack
of competent leadership
is poor results.’
June 2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
characterised by a series of unknown
unknowns, leaving us with a scarcity of
certainty. It is evident that the future will
not be a mere extension of the past, and
yesterday’s success cannot guarantee
tomorrow’s profits,” cautions Pretorius.
Leadership’s crucial role
“Leadership truly matters. It is an essen-
tial prerequisite for sustainable success,
akin to electricity that powers countries,
organisations, businesses, sports teams,
and families towards a better future.
In fact, as John Maxwell, a well-known
American author, asserts that everything
rises and falls on leadership. Without
quality leadership, people metaphori-
cally stumble in the darkness, devoid of
direction. The inevitable consequence
of a lack of competent leadership is poor
results,” says Pretorius.
“Conversely, in the presence of
quality leadership, the lights come on,
people find direction, become motivated
and inspired, and deliver outstanding
results. leadership is the key enabler
and critical success factor. Effective
leadership unleashes human advantage,
optimising engagement, contribution,
and commitment. Leaders, however,
can only achieve this through their
people’s unwavering commitment and
effort. Effective Leadership, therefore,
represents the most potent competitive
advantage for any organisation,” adds
Pretorius.
Aim for an engaged workforce
Pretorius sets the stage by highlighting
that true leadership goes beyond simply
instructing and demanding compliance.
“The ultimate goal is cultivating an
engaged workforce where individuals
wholeheartedly embrace their organ-
isation’s mission, vision, and values.
Engaged employees become passionate
contributors, innovative problem
solvers and a joy to work with. They
willingly offer their intelligence, energy,
loyalty, and contribute spontaneously,”
says Pretorius.
Igniting hope: embracing a
future of possibilities
Pretorius believes that hope for the fu-
ture, both for our country and businesses,
is paramount. “Hope has become an
increasingly scarce commodity in a world
marred by despair. We find ourselves
in a country where hope and despair
coexist on the same street as if locked in
an eternal tug-of-war. These are trying
times, where the courage to sustain hope
is a precious virtue. However, the harsh
reality is that hope shedding has become
a consequence of load shedding, the
literal and metaphorical dimming of our
aspirations,” says Pretorius.
“But let us not lose sight of the power
we possess to infuse hope into our lives
and the lives of others”. Pretorius, a
beacon of wisdom, reminds us that to
give hope, we must first embody hope
ourselves. We must become optimistic
believers, actively engaging in the verb
of hope. It calls upon us to complain
less, reach out more, give generously,
and make a difference. Through action,
we dispel fear and kindle the flames
of optimism.
Engaging in community upliftment
projects is key to fostering a sense of
purpose that transcends daily work
tasks. Leading by example when it
comes to caring for your community will
inspire and motivate your team, instilling
a sense of pride and fuelling engage-
ment and loyalty. Involve your staff in
corporate social responsibility initiatives,
allowing them to contribute meaningful-
ly. “The Rally to Read case study stands
as a testament to the transformative
power of such endeavours, leaving an in-
delible mark on the culture at McCarthy
during Pretorius’ tenure. Remember, it is
better to light a candle than to curse the
darkness,” reminds Pretorius.
Extend a firm handshake to the future
“Seize the future with unwavering
confidence, for leaders cannot afford to
succumb to fear. Instead, extend a firm
handshake to the future, signifying your
readiness to embrace its possibilities.
As leaders, we must uphold a positive
vision, shunning toxic conversations and
the downward spiral of negativity. We
must make plans that inspire confidence,
channelling the spirit of Helen Keller’s
wisdom. Hope, she proclaimed, has
the extraordinary ability to see the
invisible, feel the intangible, and achieve
the impossible. It is hope that propels
society forward, and the future of our
country hinges upon the hopefulness
that permeates every facet of our
actions. Without hope, we remain
prisoners of yesterday and today,
shackled by our worst fears. Let us
break free from these chains and forge
a path illuminated by unwavering hope,”
concludes Pretorius. BFA
BUSINESS FLEET AFRICA | June 2023
WWW.BUSINESSFLEETAFRICA.CO.ZA
TRANSPORT AND FREIGHT INDEX
The South African logistics sector
continued its recovery during April,
with the Ctrack Transport and Freight
Index (Ctrack TFI) reaching its highest
level since August 2022 at 121.5 points.
The Ctrack Transport and Freight Index
increased by 1.4% compared to March,
the fourth consecutive monthly in-
crease, confirming a fairly synchronised
recovery. In addition, four of the six
sub-sectors that make up the Ctrack
Transport and Freight Index increased on
a monthly basis, while the two sectors
that did decline only did so marginally.
On an annual basis, the Ctrack Transport
and Freight Index is tracking 5.6% higher,
compared to the 3.2% year-on-year
increase measured in March, which is
evidence of encouraging momentum
building in the sector.
“Despite all the challenges affecting
South African consumers, the continued
growth of the majority of sub-segments
of the South African logistics sector show-
cases that even in tough times, there will
always be a need to transport goods and
commodities, but this needs to be done
in the most effective and efficient manner
possible,” says Hein Jordt, Chief Executive
Officer of Ctrack Africa.
Similar to the observation in March,
four of the six sub-sectors still declined
on an annual basis, though the overall
index level increased by 5.6% compared
to a year earlier. Among the sub-sectors,
Road Freight remains the most resilient,
growing by 14.8% year-on-year during
April 2023. Volumes transported via
pipelines have also increased consis-
tently in the past few months, with the
annual growth rate now marginally
positive at 0.3%. The performance of
three of the four sub-sectors, including
Rail Freight, Storage & Warehousing
and Sea Freight, which remain below
levels of a year ago are indicative that
the cumulative negative impact of the
KZN flooding in April 2022 and Transnet
strike in October 2022 is still being felt.
Air Freight performed well last year but
has recently moderated somewhat on
an annual basis.
The Storage and Handling sub-sector
of the Ctrack Transport and Freight
Index was under pressure for most of
2022 and underperformed compared to
the broader logistics sector. However,
the sector turned out to be the star
performer during April 2023, with a
notable 9.8% increase compared to
March. The inventory index of the
ABSA Purchasing Managers Index (PMI),
compiled by the Bureau of Economic
Research, reached the highest level
since mid-2022 (58.8 index points vs
47.6 in March), as did the inventory
index that forms part of the South
African Chamber of Commerce and the
Industry (SACCI) Trade Conditions Index
(42 index points vs 35 in March) as well
as the number of containers in tran-
shipment across all container terminals
in the country.
It is currently unclear whether the
rapid rise in inventory levels is due
to improved delivery of goods, weak
demand or disruptions in the production
process due to electricity shortages.
Despite the improvement in April, the
Storage and Handling sub-sector of the
The South African logistics sector
continues its recovery
70
60
80
90
100
110
120
Jul-18
Jul-19
Jul-20
Jul-21
Jul-22
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Oct-18
Oct-19
Oct-20
Oct-21
Oct-22
Jan-23
Apr-18
Apr-19
Apr-20
Apr-21
Apr-22
Apr-23
130
Graph 1 Ctrack Transport and Freight Index
CTRACK
Road
14.8
Pipeline
0.3
Air
-1.3
Sea
-6.0
Storage
-8.3
Rail
-9.3
-15
-10
-5
10
15
Graph 1 Annual growth in sub-components of the Ctrack Transport and Freight Index (%)
CTRACK
June 2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
Table 1 Change in Ctrack Transport and Freight Index in April 2023
Percentage change between
Rail
Road
Pipeline
Sea
Air
Storage and
handling
Ctrack Freight
Transport Index
April 2023 vs April 2022 (y/y)
–9.3%
14.8%
0.3%
–6.0%
–1.3%
–8.3%
5.6%
April 2023 vs March 2023 (m/m)
–0.3%
0.5%
1.2%
–0.2%
2.2%
9.8%
1.4%
Quarter to April 2023 vs. Quarter to January 2022 (q/q)
18.5%
5.8%
8.9%
0.4%
3.3%
1.6%
6.4%
Note: The row highlighted in blue is the main Ctrack Transport and Freight Index values used.
Source: Ctrack and economistscoza, TNPA, StatsSA, SARS, N3 and N4 toll concessions, ACSA, ACOC, IATA.
Ctrack Transport and Freight Index still
tracked 8.3% lower on an annual basis
during April.
The Air Freight segment of the
Ctrack Transport and Freight index,
which turned out to be one of 2022’s
star performers, started the year on
the back foot and only improved slightly
during April, with a 2.2% improvement.
However, it is still tracking 1.3% below
the same time last year, with the strain
on the global economy finally starting
to affect global air cargo activity.
According to the International Air
Transport Association (IATA), lower de-
mand for air cargo is evident across the
globe, reflecting multiple headwinds
facing the global economy and spilling
over to trading partner countries. Air
cargo tonne-kilometres (CTKs) to Africa
decreased a further 6.2% in April, the
6th consecutive monthly decline. Cargo
loaded onto planes also declined by
2.1% on a monthly basis during April,
while total consolidated airport flight
movements dropped by 1.7%. The
number of unscheduled flights, typically
chartered for cargo purposes, was
the only sub-component to improve
during April.
The Sea Freight segment of the
Ctrack Transport and Freight Index,
one of the sub-segments hardest hit by
the Transnet strike in October 2022, is
still in a gradual recovery mode, and its
performance remains disappointing. Sea
Freight declined marginally in April and
remained 6.0% below levels of a year
ago and 19.3% below the September
2022 pre-strike level. Container
handling increased by a notable 27.2%
on a monthly basis during March but
lost those gains during April with an
11.4% decline.
Notable discrepancies remain
evident in the performance of the
various South African ports. In the
World Bank’s latest Container Port
Performance Index (CPPI), produced
by the Transport Global Practice of the
World Bank in collaboration with the
Global Intelligence & Analytics division
of S&P Global Market Intelligence
(published in May 23), South African
container terminals were among the
worst performing in the world. The
Ngqura (position 338), Durban (position
341), and Cape Town (position 344)
container terminals are in the bottom
ten of the 348 terminals ranked,
with the smaller terminal at Port
Elizabeth, the better performer in
291st position. Of interest was the
performance of other African ports,
such as our Mozambican neighbours,
with the terminal at Beira ranked
223rd and Maputo 248th, which is
far better than the South African
ports. This index measures container
port efficiency based on a myriad of
parameters, including terminal capacity
or space utilisation, cost, landside
connectivity and services, or ship-to-
shore interchange. The CPPI is based
on available empirical data pertaining
exclusively to time expended in a vessel
stay in a port and should be interpreted
as an indicative measure of container
port performance.
With all the sub-sectors of the
logistics sector complexed and
inter-twined, the dismal performance of
South African ports has triggered more
companies to redirect cargo towards
the Maputo harbour. The number of
heavy trucks on the N4 toll routes con-
tinues to increase notably on an annual
basis, while the number of heavy trucks
on the N3 toll route is not growing at
the same rate. In April 2023, the Road
Freight segment of the Ctrack Transport
and Freight Index increased by 14.8%
year-on-year, the 25th straight month
of double-digit annual growth rates
recorded and still the most resilient of
all the sub-sectors.
After reaching an all-time low in
January 2023, Rail Freight recovered
notably in February and March but
subsided again in April. The sub-sector
remains deeply in negative territory on
an annual basis, declining by 9.3% year
on year in March 2023, the 13th consec-
utive decline recorded and confirmation
that rail remains on the back foot.
“While recent policy-related
developments to revitalise the countries
rail network are considered positive,
there will need to be serious motivation
for transport operators to replace Road
Freight in favour of Rail transport once
again,” says Jordt.
The transport of liquid fuels via
Transnet Pipelines (TPL) increased by
1.2% on a monthly basis during April
2023, with the pipeline component of
the Ctrack Transport and Freight Index
now moving into positive territory on an
annual basis, for the first time in seven
months, with growth of 0.3%.
Ctrack TFI and GDP growth
The transport sector defied expec-
tations of underperformance in the
fourth quarter of 2022 to be the best
sectoral performer, and all indications
are that the transport sector once
again outperformed other sectors of
the South African economy during
the first quarter of 2023. The Ctrack
Transport and Freight Index mirrors this
performance with a significant increase
of 6.6% during the first quarter of 2023,
signalling a valuable positive contri-
bution to economic growth. Statistics
South Africa is expected to release
the real first quarter GDP growth rate
on Tuesday, June 6, with expectations
of a small positive quarterly growth
rate, allowing the economy to avert a
technical recession. BFA
INTERVIEW
UD Trucks’ Better Life Strategy is a
comprehensive, global approach aimed at
enhancing the quality of life for individu-
als and communities through a range of
initiatives. The strategy focuses on inno-
vation, sustainability, and partnerships.
Business Fleet Africa (BFA) recently
met with Filip Van den Heede, the
Managing Director of UD Trucks Southern
Africa, to gain a better understanding of
the company’s strategy and its impact on
transport operators in South Africa.
BFA: When it comes to innovation,
it’s fair to say that you are at the
forefront, especially in terms of
reducing vehicle emissions.
Filip: We have always been innovators
and have strived to stay ahead of the
curve. In 2019, we became the first
company in South Africa to manufacture
Euro 5 trucks with the Quon range.
Today, we only offer vehicles that meet
Euro 5 emissions standards. We no
longer sell vehicles that meet Euro 4 or
Euro 3 standards. To date we have sold
thousands of vehicles that meet Euro 5
standards in this market.
Of course, one could argue that the
market does not require it and that
the legislation only applies to Euro 2
standards, but we believe that it is also a
matter of social responsibility. While old-
er technology may be a viable option, we
firmly believe that promoting a better
quality of life, which is one of the pillars
of our overall strategy, necessitates
having a positive impact on the planet.
We want to be a part of the trans-
formation and ensure that customers
are educated and informed about the
advantages of the technology. Our trucks
utilise Selective Catalytic Reduction (SCR)
technology, which involves the use of
AdBlue, a diesel exhaust fluid (DEF) that
helps reduce harmful emissions. Although
change can be difficult, we are proud to
report that since our launch in 2019, four
years ago, the supply of AdBlue to our
customers is no longer a concern.
It may require some customers to
adapt to the way they manage their
fleets by implementing additional
checkpoints. With a large customer
base, we have overcome that hurdle.
Everyone wants to improve emission
standards. Raising these standards will
benefit South Africa and improve the
health of its citizens. So, we thought that
the sooner we act, the better.
BFA: Could you provide us with
more information about your ACE
initiatives?
Filip: ACE stands for Automation,
Connectivity, and Electromobility. We
launched our Fujin Raijin strategy in early
2019, which focused on automating the
production of electromobility vehicles.
At the Tokyo Motor Show, we
showcased two vehicles–one focused
on automation and the another on elec-
tromobility. We are currently developing
and putting a lot of effort into establish-
ing joint ventures with partners in Japan.
UD Trucks unpacks
Better Life strategy
Filip Van den Heede, the Managing Director of
UD Trucks Southern Africa
BUSINESS FLEET AFRICA | June 2023
10
WWW.BUSINESSFLEETAFRICA.CO.ZA