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DAIMLER TRUCK OUTLINES
FUTURE STRATEGY
SUZUKI LAUNCHES
COST EFFECTIVE EECO
UNPACKING THE RISKS
FACED BY HCV OPERATORS
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More about
Business Fleet Africa
EDITION 25
MAY 2023
18
33
Suzuki launches cost
effective Eeco.
TABLE OF CONTENTS
3 Editorial
Business
4 Get the most out of your fleet card
8 The South African logistics sector
continued its recovery in March
Road Safety
6 The importance of pre-trip vehicle
inspections
News
34 The shape of things to come
Interview
10 Daimler Truck outlines fuels of the future
strategy
12 Unpacking the risks faced by HCV operators
In the headlights: HCV Fleet Vehicles
14 Test drive: UD Quon 6x4
16 JAC launches new nine-tonner
18 A value for money option from Volvo
Selected
20 REE automotive showcases modular
platform
22 Daimler Truck opens new office complex
Fleet Management
24 Taking the hassle out of refuelling
26 Ctrack
28 Managing labour costs
29 Make sure to tow the line
30 Where the rubber hits the road
31 Why local is lekker when it comes to tyres
Supply Chain and Logistics
32 Take your logistics to cloud nine
33 Dealing with South African port congestion
In the headlights: LCV Fleet Vehicles
36 Mercedes-Benz Vans launch Inkanyezi
38 Suzuki enters last mile delivery segment
40 Opel adds Corsa Lite to offering
41 Toyota launches all-new Urban Cruiser
42 VW tackles road safety with innovative
campaign
Industry Sales
43 Commercial vehicle sales continue to shine
44 Buyers Guide
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DAIMLER TRUCK OUTLINES
FUTURE STRATEGY
SUZUKI LAUNCHES
COST EFFECTIVE EECO
UNPACKING THE RISKS
FACED BY HCV OPERATORS
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10
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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.
One death is too many
This year’s Easter weekend road fatalities paint a grim picture.
There was a nearly 40% increase in road fatalities compared
to the same four-day weekend last year, with 185 fatal crashes that resulted in 225
deaths. Compared to last year, 59 more people lost their lives
Minister for Transport, Sindisiwe Chikunga, points to human error as the main
cause of crashes. These include speeding, unlicensed vehicles and drivers, not fasten-
ing seatbelts and driving with worn tyres.
In response to these statistics, Minister Chikunga plans to implement a 365-day
road safety campaign where traffic policing will become a seven-day, 24-hour job but
whether the resources are available for this to happen imminently remains to be seen.
The fact of the matter is that there are still many unroadworthy vehicles travelling
on our roads with little enforcement of the rules or any desire to take these vehicles
off our roads. I recently travelled from Kwa-Zulu Natal back home to Gauteng, into the
evening, and it was frightening to see how many vehicles and trailers were travelling
without lights or with only some of their lights working. Across our entire journey of
700km, we also only saw three law enforcement vehicles.
The Retail Motor Industry’s Vehicle Testing Association has for a long time been cam-
paigning for the implementation of periodic testing of vehicles to be made mandatory as
it is with large commercial vehicles. The implementation of periodic roadworthy testing
into law would make it mandatory for older vehicles to pass a roadworthy test every two
years. Let’s hope the new Minister of Transport can finally get legislation signed into law
as I do believe it will go a long way in improving safety on our roads.
Even so, two years is a long time and vehicles that do high milage can deteriorate
significantly during this time. In this month’s road safety column Ashraf Ismail high-
lights the importance of conducting thorough pre-trip inspections and the advantages
thereof, which include safer roads and lower costs because fixing small issues before
they become big problems is significantly more cost effective.
There is no doubt that the transport industry is under immense pressure and an
exclusive interview with Vuyisani Titi, CEO of Lynx Transport Underwriting Managers
unpacks the risk and insurance challenges facing heavy commercial vehicle operators,
both in terms of vehicle assets and the goods they are carrying. Titi reveals some
shocking statistics regarding the increases in SASRIA cover for loss or damage due to civil
commotion, riots, strikes and terrorism recently with increases of as much as 1700% in
some cases.
Amazingly the industry continues to fight back with the latest Ctrack Transport and
Freight Index reaching its highest level since before last years Transnet strike, proof
that the industry still has some fight in it, it seems.
Reuben van Niekerk
Editor
Editorial
EDITORIAL
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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 fourth round of questions, enter and for the Terms & Conditions of this competition
please click on the link above.
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BUSINESS
Fleet cards can be a useful tool for
transport operators, as they provide a
way to manage fuel costs and expenses
for a fleet of vehicles, but there are
pros and cons of using them and several
critical aspects to consider.
One of the biggest advantages is the
convenience as fuel fleet cards provide
an easy and safe way for drivers to fill
up their vehicles without having to
carry cash or credit cards. Fleet cards
can also offer discounts or rewards for
fuel purchases, which can help to lower
overall fuel costs.
Fleet cards are a great way of keeping
a lid on expenses as they can make it eas-
ier to track fuel expenses for each vehicle,
managing expenses and allocating costs.
Fleet cards also offer various levels of
fraud protection, which can help prevent
unauthorised purchases or fraudulent
activity. Fleet cards can be set up with
customised spending limits, which can
help to prevent overspending or misuse.
‘When choosing a fleet
card, it is important to
research and compare
the different fleet
card options to find
one that offers the
most cost savings,
rewards, and benefits
for your fleet, usage
and requirements.’
Get the most out of
your fleet card
BUSINESS FLEET AFRICA | May 2023
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“When choosing a fleet card, it is
important to research and compare
the different fleet card options to find
one that offers the most cost savings,
rewards, and benefits for your fleet,
usage and requirements,” says Derick de
Vries, Executive Head of Standard Bank
Fleet Management.
The use of fleet cards does require
ongoing administration and fleet
managers should schedule time to
monitor fuel consumption and expens-
es regularly to identify any discrepan-
cies or issues. This can help to prevent
misuse or fraud and ensure that the
fleet is operating efficiently. It is a good
idea to implement strong security
measures, such as transaction valida-
tions and Standard Bank Fleet does up
to 30 validations for each transaction,
to protect against potential user related
security breaches.
Employees should also be trained on
the proper use and management of fleet
cards. This can help prevent mistakes,
reduce fraud, and ensure that everyone
is following company policies and
procedures. Employees should be aware
of the responsibility of being issued with
and using a fleet card, for what exactly
it may be used and informed on any
repercussions regarding the misuse of
fleet cards.
By taking these steps, a transport
company can maximise the benefits
of fleet cards while minimising the
potential drawbacks, making them an
effective tool for managing fuel costs
and expenses.
“Second to managing vehicles,
managing on the road costs is one of
the biggest hurdles for fleet operators.
Standard Bank has several well proven
solutions that assist operators and
drivers to make the necessary payments
in a safe and secure manner,” says de
Vries.
Standard Banks Visa Fleet Card offers
several benefits including the ability to
review and approve transactions online
and in depth analytical and statistical
reporting based on each vehicle’s
transactional data.
Fleet management cards help oper-
ators to lower their fleet costs and give
them complete visibility and control
over their expenses. This allows users
to take control of their fleet’s on the
road costs with a Fleet management
account while sophisticated transaction
validation systems reduce the risk of
unauthorised purchases. Daily, weekly
or monthly reporting allows fleet
managers to track all transactions and
manage costs. Fleet managers are also
able to measure running costs against
benchmark statistics.
Various card types are available to
pay for expenses such as fuel, tolls and
maintenance and each card is specific to
a vehicle not a driver. In addition, Shell
DieselPro customers can save an average
of R1.20 per litre.
Standard Banks prepaid Fleet card
is a great way of managing spending
and avoiding any surprises. Fleet
managers can apply for a prepaid
card for each vehicle in their fleet
with allocated funds for controlled
fuel and maintenance costs. Funds
are drawn from a fleet account which
needs to be pre-loaded with funds.
Management of funds is streamlined
with an SMS after each transaction
with details of the transaction and
account balance and purchases are
restricted to fuel, oil, maintenance,
repairs and tyres
Standard Bank’s BlueFuel solution
is perfect for cross border operators
travelling to Namibia as it allows drivers
to pay for fuel using a BlueFuel wind-
screen tag. Fleet cards are not allowed
in Namibia therefore the windscreen
tag is an ideal solution for transporters
travelling to this country. These wind-
screen tags are tamper proof as they
will become inoperable if removed from
the windscreen, utilise secure PIN-based
authentication and fleet managers are
able to review and approve transactions
online.
“Standard Bank’s wide variety of fleet
card solutions ensure there is a solution
for all types of fleets and their specific
requirements, ensuring that drivers are
able to do their job effectively, while
fleet managers can easily remain on top
of expenses and budgeting,” concludes
de Vries. BFA
May 2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
Standard Bank’s wide variety of fleet card solutions
ensure there is a solution for all types of fleets and
their specific requirements, ensuring that drivers are
able to do their job effectively, while fleet managers
can easily remain on top of expenses and budgeting.
ROAD SAFETY
BUSINESS FLEET AFRICA | May 2023
WWW.BUSINESSFLEETAFRICA.CO.ZA
ASHREF ISMAIL
Picture the scene. You have an abso-
lutely critical delivery to make to one
of your most important clients who
needs to send your product overseas.
You ask one of your most competent
and reliable drivers to make the dash
to the airport so that the cartons can
be loaded just-in-time before the
cargo plane departs. With less than 30
minutes to go and just ten kilometres
from the airport, the driver calls to say
that he has experienced a puncture and
the spare wheel is flat as well. Disaster!
Sending a replacement vehicle is not
an option because there is no way the
carton is going to make it on board. The
client is devastated and needless to say,
extremely furious.
Back at the ranch, after the anger,
shouting and scolding has subsided,
it emerges that the delivery vehicle in
question had a suspected slow puncture
which no one detected earlier because
no regular pre-trip inspection was
conducted.
Now, let’s take another scenario.
A lady, returning late from work one
night, decides to take a short-cut
through a dodgy industrial area thanks
to the onboard navigation system. She
hits a pothole and the left front tyre
is destroyed. The spare wheel is fine,
except that the jack is missing because
her husband lent it to his brother. Such a
scene can end in absolute tragedy in our
crime ridden society.
In both cases, pre-trip inspections
would have definitely prevented such
dangerous and expensive mistakes. Yet,
so many companies overlook or merely
go through the motions of a pre-trip
inspection as a tick-box exercise. While
it is time consuming, vehicles that spend
a lot of time on the road, especially,
should have these inspections conduct-
ed regularly and thoroughly.
So, what exactly is a thorough pre-
trip vehicle inspection?
The pre-trip inspection is a thorough
internal and external inspection of the
vehicle and all of its major systems.
Needless to say, the purpose of a
pre-trip inspection is to limit downtime,
avoid incidents, reduce costs and most
The importance of pre-trip
vehicle inspections
May 2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
importantly, prevent harm to people
by eliminating crashes and avoiding
personal security breaches.
Sadly, while the pre-trip inspection
is compulsory for all learner drivers
undergoing their K53 standard driving
test, it is not a legal requirement for fleet
operators but rather a highly recom-
mended best practice.
In my past occupation as a road traf-
fic enforcement practitioner, we were
often shocked to witness the unroad-
worthy condition of many late-model
vehicles, that otherwise looked new
and shiny from the outside. Some of the
main culprits were long distance, luxury
coaches and heavy transport vehicles.
Not to mention private vehicles with
tyres that were dangerously worn out,
shocks that were shot or brakes that
were in a bad condition–all non-negotia-
ble, safety-critical items.
Time is money. Vehicle downtime is a
huge setback. Delays caused by crashes
and breakdowns have an impact on
delivery times, schedules and contingen-
cy plans that lead to increasing costs and
lowered profits in these tough economic
times. Not to mention the resulting poor
customer service.
Experiencing an incident in any area
these days could spell danger to drivers
and occupants. The cost of replacing
material loss is somewhat acceptable,
but the loss of a life is immeasurable. No
company or individual deserves to live
with the regret of failing to implement
measures that could have avoided such
unfortunate incidents in the first place.
Repair costs are expensive and a
roadside breakdown that necessitates
a call for a mobile mechanic will cost
substantially more than preventative
maintenance that could have been
handled in a workshop.
Most companies have pre-trip
inspection forms and have some require-
ment in respect of conducting them
regularly. It is the fleet manager and
safety officer’s duty to ensure that these
inspections are carried out according to
the prescribed intervals and also done
thoroughly.
If any defects are found that could
compromise safety or attract a traffic
fine, these must be prioritised and
repaired before the vehicle is allowed
back on the road. Only unscrupulous or
fly-by-night operators will put profits
before people by allowing dangerous
vehicles on the road.
The Automibile Association has a
lovely acronym for conducting pre-trip
inspections called FLOWER. At the very
least the following aspects should be in-
spected before every trip or at the very
least, every week or every 1000kms.
Q F = Fuel: fill up before you leave, plan
your route and be aware of where fuel
stations are located on a long trip.
Q L = Lights: check all your lights which
includes park lights, headlamps, day-
light running lights and fog lamps if the
vehicle is fitted with such. Don’t forget
indicators and the reverse lights.
Q O = Oil: check your engine oil and all
other lubricants such as transmission
oil and brake fluid levels. Your vehi-
cle’s manual will provide important
information in this regard.
Q W = Water: avoid overheating
by checking the vehicle’s coolant
level. Whilst you’re at it, check the
windscreen washer level as well.
Q E = Electrics: check all electrical com-
ponents including the wipers, hooter,
aircon, radio and battery. Be sure you
respond appropriately to any warning
sign that lights up.
Q R = Rubber: Tyre safety is absolutely
critical. Check your tyres for correct
air pressure, a minimum tread depth
of 1mm across 100% of the tyre, no
damages to the sidewall, that all nuts
are in place and valve caps secured.
Remember to check the spare wheel,
jack, spanner and warning triangles.
All rubber components, hoses and
fan belts should be checked as well,
especially on heavy transport vehicles.
The inspection regime for heavy goods
and passenger transport vehicles is obvi-
ously much more stringent and compre-
hensive, given the greater risks involved.
This will include correct documentation
and effective loads management, espe-
cially in the case of abnormal vehicles,
vehicles carrying hazardous materials and
vehicles pulling trailers. A more thorough
inspection of the engine compartment,
the trailer with its coupling device and
safety equipment should be conducted to
ensure safe operations.
Whilst conducting pre-trip inspec-
tions, both to the interior and exterior of
the vehicle may seem cumbersome and
time consuming, it has been well proven
by some of the best fleet companies of
being one of the most effective ways of
eliminating downtime, reducing costs
and avoiding unnecessary dangers on
the road. BFA
Ashref Ismail is a multiple award-winning road safety practitioner with more
than 35 years’ experience at provincial, national and international levels. He holds
qualifications in Traffic and Municipal Policing, Teaching, Public Relations and
Professional Driving. He currently runs his own fleet risk management consultancy,
specialising in advanced, hazard management training and driver wellness.
BUSINESS FLEET AFRICA | May 2023
WWW.BUSINESSFLEETAFRICA.CO.ZA
TRANSPORT AND FREIGHT INDEX
The South African logistics sector
continued its recovery in March,
with the Ctrack Transport and Freight
Index reaching its highest level since
September, the last month before the
crippling Transnet strike hit the sector.
During March, the Ctrack Transport and
Freight Index increased by a notable
3.3%, the third consecutive monthly
increase and the highest monthly
increase since April 2021, reflective of a
synchronised recovery. In addition, five
of the six sub-sectors measured by the
Ctrack Transport and Freight Index in-
creased on a monthly basis, accelerating
much needed momentum in the sector.
On an annual basis, the Ctrack
Transport and Freight Index is tracking
3.3% higher than a year earlier. While
this is still only a blip on the graph
compared to the annual growth rate of
13.6% recorded as recently as in August
2022, all indications are that the sector is
on a firm positive trajectory.
One of the characteristics of the
logistics sector is the varying discrepan-
cies in the performances of the different
sub-sectors. While this has proved to be
a major positive in the sector’s resil-
ience, a more synchronised recovery, as
was observed in March, is indeed very
encouraging. In March, four of the six
sub-sectors still declined on an annual
basis, whereas five of the six increased
on a monthly basis, indicative of positive
near-term momentum. March’s improve-
ment also confirmed a strong quarterly
performance of the Ctrack Transport
and Freight Index, which increased
by a notable 6.6% quarter on quarter,
representing a much-needed positive
contribution to the country’s GDP.
Interesting trends are emerging.
The performance of four sub-sectors,
including Rail Freight, Storage and
Warehousing, Sea Freight and Pipeline
Transport, remain below levels of a year
ago. This strongly indicates that these
sectors have still not fully recovered
from the cumulative negative impact of
the KZN flooding in April 2022 and the
Transnet strike in October 2022.
Road Freight remains the most
resilient of all sub-sectors, recording
growth of 15.9% year on year at the end
of March 2023. Air Freight has remained
stagnant compared to a year earlier.
“Strong recoveries have been re-
corded in the first quarter of 2023 in Rail
Freight, Pipeline Transport, Sea Freight
and Road Freight, showcasing that the
logistics sector is firmly in recovery
mode, following a dismal end to 2022,”
says Hein Jordt, Chief Executive Officer
of Ctrack Africa.
Recovery of Sea Freight
needs to increase
The Sea Freight component of the Ctrack
Transport and Freight Index was one of
the hardest hit when Transnet workers
embarked on strike action in October
2022, and the results are still being felt,
with Sea Freight declining by 10.9% in
March compared to a year ago and still
tracking 9.8% below the September
2022 pre-strike level. However, the
The South African logistics sector
continued its recovery in March
Graph 1 Ctrack Transport and Freight Index % change on a monthly basis
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
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
Source: Ctrack
Recovery Post Lockdown
KZN Looting
Covid 19 Hard-Lockdown
KZN Floods
Transnet Strike
-3.4%
3.3%
CTRACK
Graph 2 Quarterly growth in sub-components of the Ctrack Transport and Freight
Index (%)
Rail
15.5
Pipeline
14.2
Sea
10.3
Road
8.4
Air
-0.7
Storage
-11.6
-15
-10
-5
10
15
20
CTRACK
May 2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
sector has slowly been recovering from
this low base, with growth of 10.3%
recorded in the first quarter. Container
handling increased by a notable 27.2%
on a monthly basis in March but remains
17.9% below the September 2022
pre-strike level. Contributing to this
slow recovery are notable discrepancies
among the different ports. Container
handling in Cape Town was only 2.6%
below pre-strike levels in March, where-
as the Durban port is still 14.7% behind,
and The Port of Ngquara is performing a
notable 40.2% lower.
In light of the importance of Sea
Freight in the logistics sector, but also
for the efficiency of trade in the broad-
er economy, Transnet Port Terminals
(TPT)’s is putting plans in place to
enter into long-term agreements with
original-equipment manufacturers
(OEMs) for the supply and life-cycle
maintenance of key port-handling
equipment. It aims to position the
business for significantly higher levels
of efficiency across its 16 terminals,
which have faced significant disruption
in recent years.
“It is evident that the Sea Freight
sub-sector has been an under-performer
relative to the broader transport and
freight sector since early-2021. A step
up in efficiency would go a long way in
restoring the sector to its potential and
increasing its contribution to the broad-
er economy. The plans being put in place
are a great prospect, but implementing
the strategy will be key,” adds Jordt.
After reaching an all-time low in
January 2023, Rail Freight continued
to recover in March, though off an
extremely low base. While still deep in
negative territory on an annual basis,
the Rail Freight component of the Ctrack
Transport and Freight Index increased
by 11.3% in March, which follows
February’s 6.8% growth. Strong growth
of 15.5% was recorded during the first
quarter, however on an annual basis, the
Rail Freight component has declined by
13.2% year on year ending in March. This
represents the 12th consecutive decline,
confirming that rail remains the achilles
heel of the South African logistics sector,
a position the sector will likely retain for
many years to come.
During March 2023, the Road Freight
component of the Ctrack Transport
and Freight Index increased by 15.9%
year-on-year, representing the 24th
straight month of double-digit annual
growth rates. Taking a closer look
reveals some interesting trends. The
number of heavy trucks on the N4 toll
routes continues to increase notably on
an annual basis, a trend that has been
firmly entrenched since August 2021,
while the number of heavy trucks on
the N3 toll route declined on an annual
basis, though showing some growth in
March 2023 compared to the previous
month. Overall, Road Freight payload
for the country decreased by a notable
9.1% in March compared to the previous
month but showed continuous growth
compared to a year earlier. The sector
faces on-going challenges, including
crime, sabotage and notable operational
cost increases.
Air Freight, which turned out to be
one of 2022’s star performers, started
the year on the back foot but picked up
marginally in March, increasing by 0.3%
while remaining flat compared to a year
earlier. Mixed trends were observed;
cargo load on planes increased by 11.2%
on a monthly basis in March, following
growth of 8.7% in February, while total
consolidated airport flight movements
also increased by a notable 16.2%.
Other underlying components of the
sub-sector declined. According to the
International Air Transport Association
(IATA), lower demand 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-ki-
lometres (CTKs) to Africa decreased
a further 3.4% year on year in March,
following February’s 9.4% and January’s
10% annual decreases.
The Storage and Handling sub-sector
of the Ctrack Transport and Freight
Index was under pressure for most of
2022, with a trend of declining inventory
levels evident. The Transnet strike just
worsened matters, resulting in a further
20.8% decline in March compared to a
year ago, a monthly decline of 1.7% and
a quarterly decline of 11.6%.
The transport of liquid fuels via
Transnet Pipelines (TPL) increased by
3.2% month on month during March,
resulting in a 14.2% quarterly increase.
However, this is still tracking 1.4% lower
than the year before.
Ctrack Transport & Freight
Index and GDP growth
The transport sector defied expectations
of underperformance in the fourth
quarter of 2022 to be the best sectoral
performer, and all indications are that
the transport sector will save the day for
the South African economy in the first
quarter once again. March’s solid im-
provements, as measured by the Ctrack
Transport and Freight Index, showcased
a strong quarterly performance of 6.6%
in the first quarter of 2023.
“The ongoing challenges of harsh
load shedding, high living costs, inflated
production costs, rising wage demands
and elevated interest rates mean that
many sectors of the economy are either
contracting or only showing marginal
growth. In this environment, the trans-
port sector’s resilience creates a sliver
of hope for the South African economy,”
concluded Jordt. BFA
Table 1 Change in Ctrack Transport and Freight Index in March 2023
Percentage change between
Rail
Road
Pipeline
Sea
Air
Storage and
handling
Ctrack Freight
Transport Index
March 2023 vs March 2022 (y/y)
–13.2%
15.9%
–1.4%
–10.9%
0.0%
–20.8%
3.3%
March 2023 vs February 2023 (m/m)
11.3%
2.9%
3.2%
–0.9%
0.3%
–1.7%
3.3%
Quarter to March 2023 vs. Quarter to December 2022 (q/q)
15.5%
8.4%
14.2%
10.3%
–0.7%
–11.6%
6.6%
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.
INTERVIEW
BUSINESS FLEET AFRICA | May 2023
10
WWW.BUSINESSFLEETAFRICA.CO.ZA
President and CEO of Daimler Truck South Africa, Michael
Dietz, explains how the company is preparing for the future of
long-haul road transport. Our departure point was liquefied
hydrogen as a cleaner and more sustainable energy source.
BFA: Michael, are there any existing working prototypes
of hydrogen-powered trucks? When do you anticipate the
possibility of implementing such a concept in South Africa?
MD: Do they exist? Well, to be honest, it’s not a phantom. Are
there any prototypes in operation? Certainly, there is no doubt
about it.
There are currently 25 operational units in the United
States, with the majority located in Europe. Why is it primarily
in Europe and the United States? Our main engineering team
sits there because they want to remain close to their projects.
We have successfully operated these liquefied hydrogen units
for up to 1 200 kilometres on a single refuelling procedure
and have received positive feedback from our customers
worldwide.
It is important to recognise that the truck industry operates
differently to the passenger car industry. For several years now,
it has been established that the lifespan of an interconnected
trailer or a side-tipper is approximately 50% longer than that of
a car.
We are required to manage a complex system when dealing
with our customers. A vehicle cannot simply be transferred to
the used car market and be replaced with a battery-electric
model.
We must find a solution to both execute the transition
and transform the industry, while also ensuring the continued
viability of our existing equipment for our customers. We
cannot simply approach our customers and demand that they
sell all their current equipment because we are introducing
battery-electric driven alternatives.
BFA: What is your take on range anxiety?
MD: If the range required is up to 800 km, we can achieve
it with a battery-electric model. But we cannot accept the
negative impact on the payload. We are requesting ranges that
exceed 1 500km. This is what we can accomplish using diesel
fuel.
Therefore, we aim to observe a comparable concept and
appearance, and most importantly, identical refuelling dura-
tions. A fuel-cell truck powered by liquefied hydrogen can be
refuelled in less than three and a half minutes. This is why we
believe that battery-electric vehicles are suitable for last mile
and distribution purposes, but for long-haul transportation, we
must explore alternative options.
To reiterate, as Daimler Truck, we are unwavering in our
commitment and enthusiasm for liquefied hydrogen. We are
collaborating with Volvo on fuel-cell technology. The company
has completed its preparations and the construction of the first
production plant is already underway.
After more than 130 years of relying on diesel, we must
now undertake a transformation that involves collaboration.
We cannot continue to develop diesel engines alongside
battery-electric and hydrogen fuel-cell technologies.
Therefore, we must work together within the industry. This
collaboration between Daimler and Volvo, two major players
with their respective brands, sends a clear signal to global
markets that we are committed to this transformation. We
must work together to get it done.
We must collaborate as a region to address the issue of
infrastructure. This is a shared responsibility that requires the
support of our customers, the oil industry, e-power providers,
and manufacturers. While we should strive to achieve this goal,
it is important to acknowledge that it will be a journey.
We are discussing, with approximate figures, the sale of three
million new trucks annually in global markets. These trucks are
assembled, delivered to customers, and put into operation.
When examining these figures, it is noteworthy that over
2.5 million of these trucks are being distributed across various
regions, each with their own distinct emission standards,
including Euro 6, JP09, and APAR 13.
On the diesel front, the situation is becoming increasingly
complex for all of us. South Africa is a well-developed market.
Our clients in the region are offering services to their customers
at a global standard.
These clients are requesting state-of-the-art technology.
While there is a desire for MirrorCam and autonomous driving
capabilities, there is also a preference for these technologies to
be integrated with an internal combustion engine and drive-
train that meet Euro-3 emission standards.
Daimler Truck outlines fuels of the
future strategy