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TOYOTA EXPANDS
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Business Fleet Africa
EDITION 19
NOVEMBER 2022
17
34
Daimler Trucks celebrate
60 years of local
manufacturing.
TABLE OF CONTENTS
3 Editorial
Business
4 On going challenges necessitate investment
Transport and Freight Index
6 The South African logistics sector treads
water
News
8 International News
10 Industry News
In the headlights: HCV Fleet Vehicles
19 Volvo commences local assembly of Euro 5
models
20 Daimler Trucks SA celebrates 60 years
24 Iveco joins forces with energy supply chain
stakeholders
26 Hitting the road in Enviro’s EC35 panel van
28 Solaris launches articulated Urbino
Hydrogen bus
Fleet Owner Success Story
30 Coca Cola initiates smart truck project
31 Blazing a trail for women in transport
34 Farming with Massey Ferguson
Supply Chain and Logistics
32 E-commerce grows in townships
33 SA logistics industry is battling a war
Fleet Management
36 Mining smartly with Ctrack’s bespoke
solutions
In the headlights: LCV Fleet Vehicles
38 Toyota expands hybrid offering
40 Volvo revamps range for 2023
41 Lexus IS refined for 2023
42 Hyundai renovates Venue
Industry Sales
44 Commercial vehicle sales contract
45 Buyers Guide
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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
Road Impression Editor
Charl Wilken
cwwilken@mweb.co.za
083 297 1837
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.
Getting rail back up and running
By all accounts the South African road transport sector contin-
ues to grow at a tremendous rate, due to a variety of factors, but
most notably thanks to the continued decline of the rail sector.
The increased load on the country’s road network especially on major routes is not
sustainable and is already resulting in higher accident rates and longer journey times.
These factors then only get worse when disruptions like strikes or port closures occur,
with transport operators seemingly always playing catch up.
During the recent medium term budget speech Finance Minister Enoch
Godongwana committed to passing the Economic Regulation of Transport Bill
while requests for proposals have been issued for third-party access to the freight
rail network.
While slowing down the decay of our railway system is certainly necessary, it will
be interesting to see if any private companies come forward and take government up
on this offer. The countries rail system is in a terrible state and third party interest or
usage will require this system to be in a reliable, well maintained state and who will
fund this is yet to be revealed. I doubt that users will be willing to invest in infrastruc-
ture which they do not own. This is as good as saying road users must maintain the
road if they would like to use it. I look forward to watching how this plays out, but I am
not holding my breath.
Left in the dark
Economic conditions in South Africa took a turn for the worse during September, with
Eskom data confirming that the South African economy experienced the worst-ever
month of load shedding, with 572 of the month’s 720 hours directly affected. Analysis
by Eskom’s Research, Testing and Development department further showed that,
besides 2021, there was more power cuts in September 2022 than had been expe-
rienced in any other entire year since load shedding started in 2007. The negative
impact of load shedding reaches all spheres of the economy. Companies buckle under
the inability to produce at capacity, the cost of lost production, reduced productivity,
the cost of providing alternatives and reduced margins.
This has a serious effect on productivity for any business, with electricity needed
to power everything from IT, point of sale equipment and security systems. The knock
on effect is that businesses are having to spend any spare cash that they might have
on future proofing their businesses with investment in equipment like generators,
inverters or solar installations necessary to be able to do business in South Africa.
The on going load shedding has also had an effect on the water supply in certain
regions, such as Gauteng. While the dams feeding the Gauteng province are at
satisfactory levels, electricity disruptions have affected Rand Waters ability to pump
water to various reservoirs in order to meet increased demand caused by rising spring
temperatures resulting in the implementation of water restrictions.
This meant that high water users have very quickly had to look at water saving and
water storage solutions in order to avoid the increased tariffs that are implemented by
municipalities during periods of water restrictions.
Unfortunately these factors mean that alternative electricity and water supply
solutions are necessary and will become increasingly important for businesses, both
big and small, in order to remain competitive and mitigate the disruptions caused by
unpredictable supply of these resources by government.
Reuben van Niekerk
Editor
Editorial
EDITORIAL
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BUSINESS
The South African economy and the
transport industry are continuously
being subjected to a variety of external
challenges, all of which contribute to a
very difficult industry to do business in.
Monthly costs are always increasing
with the fuel price continuing to rise and
the Reserve Bank forced to hike interest
rates once more, in order to try curb
inflation somewhat.
The recent Transnet strike added
further pressure to an already stressed
transport infrastructure, with bottle-
necks creating major headaches for fleet
managers in the supply chain and logis-
tics industry, while the cost implications
were massive.
According to the South African
Association of Freight Forwarders
(SAAFF), the 11 day strike robbed South
Africa of the opportunity to move
R65.3 billion worth of goods.
It has been reported that one day’s
worth of stoppage requires up to
10 days of recovery. The result is that a
complete restoration of normal func-
tionality will only happen in early 2023.
During September 2022, South Africa
was subjected to the worst month of
load shedding since the implementation
of this power rationing strategy, with a
staggering 572 of the month’s 720 hours
directly affected.
The rail sector continues to go back-
wards and while this is to the advantage
of road transport, our roads can only
handle so much. Already major routes
are nearing capacity and the increased
high traffic volumes have resulted in
increased accident rates and slower
journey times on many of the major
commercial vehicle routes.
Government has realised that this
is a major problem and has passed
the Economic Regulation of Transport
Bill while requests for proposals have
been issued for third party-access to
the freight rail network. Whether there
On going challenges
necessitate additional investment
are any private companies willing or
motivated to turn this into a successful
business case remains to be seen, as
massive investments will be needed to
kick start this project and how its use will
be managed could be challenging.
Less than ideal working conditions
mean working as a truck driver in South
Africa is no longer as attractive a career
as it used to be and many of our good
drivers are being lured to greener
pastures, like Europe, which is also facing
a major shortage of truck drivers.
Despite all these environmental
challenges many corporates are now
insisting that trucking operators adopt
the latest Euro 5 technology, despite
that not being legislated by the South
African government, as the practices
of suppliers have a bearing on the ESG
score of these corporates.
Dangerous driving conditions also
mean that vehicles equipped with
increased safety equipment and driving
aids, such as lane keeping assist or radar
based cruise control are becoming more
of a necessity than a luxury.
Many of these challenges mean that
businesses need to invest in new or
additional equipment in order to remain
competitive in the marketplace and
mitigate the disruptions caused by these
external challenges.
“Standard Bank understand that
financing and managing a company’s
assets is critical to the success of any
business, especially in challenging
business environments. Our dedicated
team of experts can arrange a com-
prehensive funding package to suit the
unique requirements of any business,”
says Derick de Vries, Executive Head of
Standard Bank Fleet Management.
Standard Banks’ Commercial Asset
Finance specialists are able to assist
in the financing of passenger and
commercial vehicles, capital equipment
such as tractors, forklifts, bulldozers,
machine tools and office equipment as
well as more specialised assets such
as mining and agricultural equipment
and aircraft.
Apart from traditional assets with
wheels, Standard Bank are also able to
assist with the financing of medical and
technology equipment, which includes
coverage for printing and information
technology sectors and even solar
equipment.
“Off the grid solutions needed to
mitigate service delivery shortfalls such
as load shedding are necessary in order
to do business in modern day South
Africa and Standard Bank are able to
assist in financing this very specialised
equipment,” adds de Vries.
As is very often the case, bundling a
variety of financing agreements under
one portfolio with the same financial
services provider, is the most cost
effective way of financing business
assets. Standard Bank’s ability to finance
a variety of assets in a variety of ways,
make them the ideal partner for doing
business in the South African transport
industry. BFA
“Standard Bank
understand that
financing and
managing a company’s
assets is critical to
the success of any
business, especially in
challenging business
environments. Our
dedicated team of
experts can arrange a
comprehensive funding
package to suit the
unique requirements
of any business”
November 2022 | BUSINESS FLEET AFRICA
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TRANSPORT AND FREIGHT INDEX
Following three consecutive months of
growth, the South African logistics sec-
tor as measured by the Ctrack Transport
and Freight Index declined margin-
ally during the month of September,
however the third quarter still returned
growth. The Ctrack Transport and
Freight Index (Ctrack TFI) declined by
0.1% on a monthly basis in September
compared to the revised growth of 2.2%
experienced in August, representing
annual growth of 12.8%, down from a
revised 13.7% in August.
Economic conditions in the South
African economy took a turn for the
worse during September, with Eskom
data confirming that the South African
economy experienced the worst-ever
month of load shedding, with 572 of
the month’s 720 hours directly affected.
Analysis by Eskom’s Research, Testing
and Development department further
showed that, besides 2021, there were
more power cuts in September 2022
than had been experienced in any
other entire year since load shedding
started in 2007. The negative impact
of load shedding reaches all spheres
of the economy, including the logistics
and supply chain sector. Companies
buckle under the inability to produce at
capacity, the cost of lost production, re-
duced productivity, the cost of providing
alternatives and reduced margins.
The sector continues to be plagued
by many challenges, including significant
fuel price increases in recent months,
rising interest rates, the higher cost of
tyres and spare parts, delays at ports,
sabotage and unrest, railway woes and
the negative impact of regular load
shedding. Despite these challenges,
the logistics sector proved to be largely
resilient with four of the six sectors
measured by the Ctrack Transport and
Freight Index increasing on an annual ba-
sis during September. While the broader
economic environment has a real effect
on all the sectors measured by the
Ctrack Transport and Freight Index,
there are still vastly different trends
evident in each of these sub-sectors.
Road Freight remains a strong
performer, followed by Air Freight, with
both sectors posting double-digit growth
in September compared to a year earlier,
while Rail Freight remains the regular
underperformer among the sub-sectors.
“Despite all the challenges that
continually batter this industry the
resilience of the transport industry and
especially Road Freight has continued to
surprise with continued growth despite
all these challenges, but I fear that is not
sustainable indefinitely,” says Hein Jordt,
Chief Executive Officer of Ctrack Africa.
The significant performance of
the Road Freight sector has been
an on going theme since mid-2020.
Although treading water in the month
of September, the Road Freight seg-
ment still increased by a notable 27.9%
compared to the same period last year, a
continuation of a positive growth streak
that started in January 2021. While the
number of heavy trucks on the N3 and
N4 toll routes remained unchanged on
a monthly basis in September, heavy
traffic still increased by 11% compared
to the same period last year. Among
other reasons the segment continues to
benefit from the on going underperfor-
mance of the rail industry.
Air Freight continued to show signs
of strain in September, with the Air
Freight segment of the Ctrack Transport
and Freight Index declining by 0.7%
compared to the previous month, which
is also the fourth consecutive monthly
decline. Despite these declines the seg-
ment is still tracking 12.2% higher than
it did at the same time last year. Total
consolidated airport flight movements
declined by 1.5% in September, but air
cargo recovered somewhat.
The transport of liquid fuels via
Transnet Pipelines (TPL) declined notably
in September, with the Pipeline segment
of the Ctrack Transport and Freight Index
declining by a 11.9% compared to the
previous month, but still tracking 4.3%
higher than the same period last year.
The shortage of refineries has created a
scenario where the country is increasingly
reliant on imports, and supply line disrup-
tions present a greater risk, as highlighted
by the recent Transnet strike that affected
operations at the Durban port.
The Sea Freight segment measured
by the Ctrack Transport and Freight
The South African logistics sector
treads water
Aug-14
Aug-15
Aug-16
Aug-17
Aug-18
Aug-19
Aug-20
Aug-21
Aug-22
Feb-15
Feb-16
Feb-17
Feb-18
Feb-19
Feb-20
Feb-21
Feb-22
Nov-14
Nov-15
Nov-16
Nov-17
Nov-18
Nov-19
Nov-20
Nov-21
May-15
May-16
May-17
May-18
May-19
May-20
May-21
May-22
30%
20%
10%
0%
-10%
-20%
-30%
4,4%
12,8%
Graph 1 Ctrack Transport and Freight Index % change on year ago
November 2022 | BUSINESS FLEET AFRICA
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Table 1 Change in Ctrack Transport and freight Index in September and August 2022
September 2022 Tables
Percentage change between
Rail
Road
Pipeline
Sea
Air
Storage and
handling
Ctrack Freight
Transport Index
September 2022 vs September 2021 (y/y)
–10.6%
27.9%
4.3%
3.7%
12.2%
–7.2%
12.8%
September 2022 vs August 2022 (m/m)
–0.6%
0.1%
–11.9%
–0.9%
–0.7%
2.2%
–0.1%
Quarter to September 2022 vs. Quarter to June 2022 (q/q)
–2.9%
6.0%
–4.8%
8.9%
–9.2%
9.1%
4.2%
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.
Index increased by 3.7% in September
on a year on year basis, driven by a
strong recovery in container handling
at various ports in recent months, while
other cargo handling also increased
notably during September.
The Rail Freight component of the
Ctrack Transport and Freight Index
declined by 10.6% year on year in
September, the sixth consecutive
monthly decline, which can be attributed
to amongst other factors, large-scale
theft of copper cables, insufficient
maintenance, lack of locomotives and
corruption. These on going challenges
are likely to remain a reality in this space
for some time to come.
“It is great to see that government is
taking real steps to assist the transport
and logistics industry and save the ailing
rail network,” says Jordt.
Finance Minister Enoch Godongwana
admitted during his speech as part of the
Medium Term Budget Policy Statement
(MTBPS) that there is a crisis in the
logistics sector and that inefficiencies
in the port and rail infrastructure are
costing the economy billions.
This commitment includes the
passing of the Economic Regulation
of Transport Bill while requests for
proposals have been issued for third
party-access to the freight rail network
and private-sector partnerships for the
Durban Pier 2 and Ngqura container
terminals. In addition Transnet has been
allocated R2.9 billion to bring out-of-
service locomotives back into service
and improve rail capacity. A further
R2.9 billion has been allocated to deal
with flood damage in Kwazulu-Natal.
Zooming into the Storage and
Handling sub-sector of the Ctrack
Transport and Freight Index revealed
another dismal performance, this sector
has clearly been underperforming since
the beginning of 2022. The lacklustre
economic environment, as well as global
supply chain pressures, has played an
important role in companies’ manage-
ment of inventories.
Locally, inventory holdings in the
manufacturing sector as measured by
a sub-component of the ABSA PMI,
dropped by 12.8% between January and
June, before recovering quite notably in
Q3. Similarly, the value of raw materials
and work-in-progress of all industries
covered by StatsSA’s Quarterly Financial
Statistics declined in the first quarter
before gradually increasing in Q2 and
Q3. Although the Storage and Handling
segment still declined by 7.2% on an
annual basis during September, it seems
that the sector is making a turn for the
better as reflected in two consecutive
positive monthly growth rates as well
as a sizeable 9.1% quarter on quarter
growth which it recorded in Q3.
The Equites Property Fund, a JSE
company solely focusing a logistics-only
play, recently noted that they are experi-
encing record demand for warehousing
space. The pandemic-related surge in
online shopping has ignited demand for
warehouse and distribution facilities
for retailers and e-commerce players to
store goods before delivery and has also
had a positive impact on Road Freight,
particularly when it comes to parcel
delivery. According to the StatsSA land
transport survey, income generated
from parcel delivery has increased by
79.1% since January 2020.
“The on going pressures facing all
the segments measured by the Ctrack
Transport and Freight Index mean that
the businesses in these segments are
facing rising risk levels and shrinking
profit margins. The implementation of
a bespoke fleet management system
has been well proven to mitigate risk,
increase profitability and ensure peace
of mind in a turbulent environment,”
concludes Jordt.
Ctrack TFI and GDP growth
The September 2022 Ctrack TFI (120.1)
increased notably compared to the June
index level (115.3), signalling a further
recovery in the transport sector in Q3.
However, September and the third
quarter in general has been a particularly
challenging month for the South African
economy thanks mostly due to the afore-
mentioned on going harsh load shedding.
High-frequency data from some of the
most energy-intensive sectors like mining
and manufacturing have already provided
clues about the effects of the power cuts
on economic activity and it does not paint
a pretty picture. There is a growing proba-
bility that the economy as a whole has
slipped back into a technical recession,
with the likelihood of a negative quarter
on quarter growth rate during the third
quarter. Encouragingly, the transport sec-
tor outperformed the broader economy
during the second quarter, increasing by
2.4% compared to the previous quarter
seasonally adjusted vs. a 0.7% contraction
in overall real GDP growth and this trend
is likely to have prevailed in the third
quarter. The transport sector was, how-
ever, hit hard by the recent prolonged
strike of Transnet staff in October, which
will firmly put the sector on the back foot
in the fourth quarter. BFA
* Revision note – the release of
StatsSA’s Quarterly Financial Statistics
survey after the publication of the
August Ctrack TFI, resulted in an upward
revision to the inventory data used to
calculate the Storage and Handling
sub-component and thus resulted in an
upward revision to the August Ctrack TFI.
Soaring fuel costs have left a hole in the
pocket of motorists across the globe,
but it could be having an unexpected
positive impact on promoting greener
forms of transport.
That’s according to research commis-
sioned by the UK’s leading independent
road safety charity, IAM RoadSmart,
who surveyed 1 004 motorists on what
changes they have made as a result of
rising fuel costs.
Of those surveyed, one in three (33
percent) stated that they have decided
to walk more, 17 per cent said that they
have used public transport on a more
regular basis, while 7 percent answered
that they have bought a bicycle or used
it more frequently.
“Our research demonstrates that
there has been an unexpected ‘green
lining’ to the rising cost of fuel, as an
increasing number of motorists opt for
more environmentally-friendly forms of
transport,” said Neil Greig, Director of
Policy and Research at IAM RoadSmart,
commented.
“However, it is crucial to be mindful
of the safety of all road users, especially
those who will be more vulnerable to inju-
ry in the case of a collision,” added Greig.
“Adhering to the ‘hierarchy of road
users’ Highway Code rule, which dictates
that road users such as cyclists and
pedestrians are at greater risk from road
traffic, and therefore motorists should
possess the greatest responsibility to
minimise harm, will play a critical role
in helping adapt to these changes,”
said Greig.
Those who have decided not to ditch
the car entirely have also made greener
changes to the way they drive, with
38 percent of respondents stating that
they have tried to drive more econom-
ically, and 19 percent disclosing that
they are taking extra care to stick to the
speed limits.
“For many, hanging up the key is
simply not an option, and the role
of owning a car, in terms of personal
mobility and keeping society moving,
cannot be understated. In such cases
motorists are encouraged to follow
those who have decided to drive more
economically and reduce their speed,
which will not only help keep the price
at the pumps down, but also keep roads
as safe as they can be.” BFA
Soaring fuel costs are driving motorists to greener
forms of transport
BUSINESS FLEET AFRICA | November 2022
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The UK’s van drivers are at risk of burnout with half experienc-
ing mental health issues in the last year, according to a study by
Volkswagen Commercial Vehicles.
Research found the last year had seen those suffering with
mental health issues rise to half from a third compared with the
previous year. Overworking and struggling to maintain a work-
life balance were the biggest causes, with side effects including
sleep problems, stress headaches and panic attacks.
The stress is coming from van drivers working beyond their
regular hours half of the time, compared to the average UK
worker who clocks longer hours a third of the time.
The longer hours are causing 1 in 5 van drivers to feel
overwhelmed by work on a daily basis with 94% saying they
had felt overwhelmed at least once in the past year. Positively,
three-quarters of those who suffered issues had sought
professional support to help them cope.
To manage your mental health and restore the balance,
Volkswagen Commercial Vehicles is urging the workforce to take
time out and practise wellbeing, whether in the form of taking up
a new hobby, exercising, talking to friends or getting outside. BFA
Overworking is leading to mental health issues
amongst van drivers
INTERNATIONAL NEWS
BUSINESS FLEET AFRICA | November 2022
10
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Isuzu has walked away with top honours in the Manufacturer Of
The Year (MOTY) awards, run annually by the Southern African
Vehicle Rental and Leasing Association (SAVRALA).
Now in its 27th year, the MOTY awards pays tribute to the
vehicle manufacturers for the level of service and support
provided to SAVRALA members, who manage roughly
400 000 vehicles per year through the rental and leasing
channels.
These awards are based on two comprehensive surveys
completed by 38 car rental and leasing companies in South
Africa, measuring the service from the manufacturers they
interact with regularly and whose vehicles they have in their
fleets.
Among the various areas of business surveyed are
communication and contact with the manufacturers, support
provided, maintenance issues, financial aspects and B-BBEE
compliance.
The participating rental and leasing companies are required
to involve all the relevant people who are knowledgeable
about each criterion within their organisations, to complete
the various sections of the surveys. This is to ensure that the
results are not biased and can be used by the manufacturers to
identify and rectify any pain points in their customer journey
with the rental and leasing industries.
A snapshot of the results
In 2022, Isuzu was voted as the winner in both the Rental and
Leasing categories for the third consecutive year. In the Rental
category, Toyota improved their third position from 2021 and
moved into the second position this year. For the first time
ever, Mini moved into a podium position, by being awarded the
bronze award in the Rental Category.
The Leasing positions remained the same as last year, with
Isuzu taking top honours, followed by Volkswagen in second
place and Toyota close on their heels taking third place.
Considering all the challenges currently facing the automo-
tive industry, this is no small feat. Manufacturers had to walk
a tight rope to remain operational amidst the aftermath and
recovery of the COVID-19 pandemic, the war in Ukraine, the
global chip shortages leading to a shortage of new vehicles, the
global energy crisis and the KZN flooding earlier this year, to
name but a few.
Rental results for 2022
Isuzu continued their winning spree, attaining the highest
score on the measured criteria and helped along by a level one
B-BBEE level of contribution, the only manufacturer achieving
level one. Toyota moved into second position, as they did in
2020, in the process moving Volkswagen out of the top three
SAVRALA crowns 2022 winners
INDUSTRY NEWS