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More about
Business Fleet Africa
EDITION 30
OCTOBER 2023
10
20
35
Mercedes-Benz launches
tourist ready Sprinter
TABLE OF CONTENTS
3 Editorial
Business
4 AI revolutionises fleet payments for
businesses
6 Broad-based strain evident in the logistics
sector
Interview
10 In conversation with Albrich van Niekerk
Road safety
12 10 ways to take care of your drivers
In the headlights: HCV Fleet Vehicles
14 First MAN electric bus hits the road
16 Isuzu F-Series a top seller for good reason
18 Don’t miss out on this low mileage Fuso
workhorse
20 Volvo starts serial production of electric
trucks in Ghent
22 UD unveils new dealership in Cape Town
Fleet ownership
24 Volvo Trucks and DHL SC drive down
emissions
Fleet Management
25 Strategies to control trucking maintenance
and repair costs
26 Automated technologies can reduce risk
and improve profitability
28 Payments innovation recognised at awards
29 Driver safety a top priority for RTMS
auditors
30 Innovative tyre technology helps mitigate
costs
Supply Chain and Logistics
32 Cornubia Logistics Park successfully rebuilt
Light commercials
34 Mercedes-Benz Vans unveils tourist ready
Sprinter
35 SAIC and Maxus EV partner to decarbonise
fleets
In the headlights: Fleet vehicles
36 On the local front
38 Objections against RAF amendment bill
40 Toyota Vitz range bolstered
41 Ford Puma on its way to SA
42 E-mobility innovation in Africa
Industry Sales
43 Sales
44 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
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.
Fuel hikes keep coming
Diesel prices increased for the fourth consecutive month at the
beginning of October these latest significant adjustments are
mainly attributable to rising international oil prices. While the weaker Rand/US Dollar
exchange is also playing a role in the hikes for all fuels, its contribution is less substan-
tial than the international product prices.
“These increases are going to hit all consumers hard, and they come at a time
when most South Africans are feeling extreme financial pressure. It remains con-
cerning, however, that in the face of these increases, government remains silent on
its plans, if there are any, on a way forward to deal more effectively with fuel price
increases,” says the Automobil Association.
Unfortunately there is not much that one can do about the fuel prices, because if
you are utilising vehicles for business purposes driving less is not an option. However
it is important to use vehicles as efficiently as possible and this is where a well sorted
fleet management system is worth its weight in gold. Ctrack offer a variety of options
which now utilise AI to lessen the workload on fleet managers.
The maintenance of vehicles is also critical in keeping the lid on fuel consumption.
It is important to ensure that vehicles are kept in a good mechanical condition,
serviced in line with manufacturers guidelines and that tyres are inflated to manufac-
turers specifications to ensure optimum consumption.
Transport industry faces headwinds
The latest Ctrack Transport and Freight Index, which measures six of the major sectors
of the transport and logistics industry retreated further during August, the third
consecutive monthly decline. This index is always a good barometer of the transport
industry’s health and also closely tracks the country’s GDP. Four of the six-sub sectors
including the biggest contributor, road freight, declined. In recent years the transport
industry has managed to outperform a variety of other industries and while the
economic narrative remains generally static, with ongoing load-shedding, elevated
interest rates, a lacklustre job market and low confidence levels, it is evident that
sector-specific challenges have also played a role in the transport sector’s underper-
formance during the second quarter of this year.
Sales remain buoyant
Despite the aforementioned challenges sales of commercial vehicles remain buoy-
ant. Aggregate domestic vehicle sales declined by 4,1% during September but sales
of light commercial vehicles, bakkies and minibuses increased by 4,6% while sales of
vehicles in the heavy trucks segment increased by 10,5%. This positive performance
is an indication that despite a variety of challenges works needs to be done and
commercial vehicle users continue to invest in new vehicles required to keep the
economy going
We would love to hear from you
We are always refining Business Fleet Africa as we aim to offer an all-encompassing,
informative and relevant read. As we plan for 2024, we would love to hear from you.
What would you like to see more of or less of? Please let us know by way of email.
Reuben van Niekerk
Editor
Editorial
EDITORIAL
WWW.BUSINESSFLEETAFRICA.CO.ZA
The transport industry is currently
undergoing ground breaking transforma-
tion, thanks to the seamless integration
of Artificial Intelligence (AI) technology.
One domain where AI has managed
to make a lasting impression is in the
realm of fleet payments, providing
businesses with innovative methods to
manage transactions, curtail costs, and
fortify security measures.
Arguably, one of the most prominent
advantages that AI bestows upon fleet
payments is its ability to automate
and mechanise tasks that were once
performed manually.
These tasks include the time-con-
suming process of invoice processing,
the detail-oriented task of expense
reporting, and the critical task of fraud
detection. By employing AI, these tasks
can now be executed with speed and
precision, thereby allowing fleet man-
agers to devote their time and energy
towards more strategic endeavours.
Historically, fleet payments were
characterised by their labour-intensive
nature, fraught with endless hours of
paperwork, manual reconciliation, and a
high susceptibility to errors.
However, with the advent and inte-
gration of AI, a new era of automation
has been ushered in, effectively
streamlining and optimising payment
processes, while alleviating the burden-
some administrative workload.
“Fleet managers can heave a sigh
of relief and feel a sense of calmness
as they witness the seamless handling
of payment scheduling, invoicing, and
reconciliation by AI-powered systems,”
says Derick de Vries, Executive Head of
Standard Bank Fleet Management.
Moreover, one of the significant ad-
vantages of AI lies in its ability to provide
real-time insights into fleet spending.
Through the utilisation of AI-powered
analytics tools, fleet managers can more
efficiently gain access to a wealth of
information regarding fuel cards, tolls,
and maintenance costs. By tracking
and analysing this data, fleet managers
can identify areas where substantial
savings can be made and optimise their
operations accordingly.
The AI algorithms employed in the
analysis of vast amounts of data are
significant. These algorithms possess the
capability to consider numerous factors,
including fuel prices, route efficiency,
maintenance schedules, and even
real-time traffic conditions, in order to
dynamically adjust pricing.
This dynamic pricing mechanism not
only reduces operational costs but also
ensures that companies pay an equitable
BUSINESS
‘Fleet managers can heave
a sigh of relief and feel
a sense of calmness as
they witness the seamless
handling of payment
scheduling, invoicing,
and reconciliation by
AI-powered systems.’
AI revolutionises fleet
payments for businesses
BUSINESS FLEET AFRICA | October 2023
WWW.BUSINESSFLEETAFRICA.CO.ZA
price for the services rendered to
them. Consequently, businesses receive
the best value for their money while
simultaneously contributing to overall
cost-effectiveness.
“When it comes to fleet payments,
ensuring security is of utmost impor-
tance. By leveraging AI algorithms, trans-
action data can be analysed to pinpoint
any suspicious patterns. This capability
empowers Standard Bank to identify
potentially fraudulent transactions at an
early stage,” adds de Vries.
Biometric authentication and block-
chain technology act as an impregnable
shield, safeguarding sensitive financial
data from unauthorised access. This
amalgamation of technologies not only
fortifies businesses against potential
fraud but also ensures that transactions
are conducted with transparency,
providing a sense of confidence to all
parties involved.
AI-driven predictive maintenance sys-
tems have also become an indispensable
asset for efficient fleet management.
These systems leverage the power of
machine learning to analyse data from
various sensors and historical mainte-
nance records. By doing so, they can
accurately predict when and which parts
of a vehicle will require maintenance.
This proactive approach eliminates
unexpected downtime and reduces the
occurrence of costly repairs.
AI-powered fleet payment platforms
provide fleet managers with the ability
to monitor and control their fleet op-
erations in real-time, offering a level of
oversight that can be crucial in a highly
competitive industry.
This comprehensive monitoring
capability empowers fleet managers
to immediately identify areas where
cost-cutting measures can be imple-
mented, leading to significant savings for
the business. Moreover, the availability
of real-time data empowers businesses
to make informed, data-driven decisions
that can enhance the overall efficiency
of their fleet operations.
In addition to the operational bene-
fits, AI-powered fleet payment platforms
also have the potential to revolutionise
the customer experience. By integrating
AI-driven payment systems into their
fleet operations, businesses can offer
their customers a wide range of pay-
ment options, including digital wallets
and contactless payments.
This increased flexibility not only
makes transactions more convenient for
customers but also enhances their over-
all satisfaction and loyalty. Customers
appreciate the ease and convenience
of being able to choose the payment
method that suits them best, and this
can significantly contribute to building
long-term relationships.
Furthermore, regulatory compliance
is an essential aspect of any business
operation, and AI-powered fleet
payment platforms excel in this area
as well. These platforms are designed
to automatically generate compliance
reports, ensuring that businesses adhere
to industry regulations and standards.
By automating this process, fleet
payment platforms significantly reduce
the risk of costly fines and legal issues
that can arise from non-compliance. This
allows businesses to focus their resourc-
es and efforts on their core operations,
without having to worry about navigat-
ing complex regulatory requirements.
Artificial Intelligence is, without a
doubt, revolutionising the landscape
of fleet payments for enterprises. This
cutting-edge technology brings forth an
abundance of advantages, encompass-
ing the seamless automation of pro-
cesses, the implementation of dynamic
pricing strategies, the fortification of
security measures, the ability to predict
and prevent maintenance issues, the
real-time monitoring of operations, the
enhancement of the overall customer
experience, and the assurance of
regulatory compliance.
“As the field of AI continues to make
significant strides, its influence on the
transportation industry will undoubtedly
deepen further. Those companies that
embrace these ground breaking inno-
vations are poised to gain a competitive
advantage in a constantly evolving
market, charting the course towards
a more streamlined, cost-effective,
and impregnable future in both fleet
management and payments,” concluded
de Vries. BFA
October 2023 | BUSINESS FLEET AFRICA
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BUSINESS FLEET AFRICA | October 2023
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TRANSPORT AND FREIGHT INDEX
The Ctrack Transport and Freight Index
retreated further during August 2023
to an index level of 118.8, the lowest
since February (116.7). This represents
a decrease of 1.5% during the month of
August, the third consecutive monthly
contraction and confirmation of the
ongoing strain in the logistics sector.
This retraction is evident across the
industry, with four of the six sub-sectors
measured by the Ctrack Transport
and Freight Index declining on both a
monthly and a quarterly basis. Overall,
the Ctrack Transport and Freight Index
also dipped into negative territory on
an annual basis for the first time since
February 2021, and it is clear that many
challenges remain for the sector.
“While government has started to
come to terms with the negative impact
that the underperformance of the sector
has on the broader economy, implemen-
tation of reforms is too slow and urgency
is required in order to reverse this
negative trend,” says Hein Jordt, Chief
Executive Officer of Ctrack.
Fragmented growth has char-
acterised the Ctrack Transport and
Freight Index sub-sectors over the past
few months, and with five of the six
sub-sectors now tracking lower than
a year earlier, the hope of a notable
recovery has faded. Only two of the six
sub-sectors of the Ctrack Transport and
Freight Index increased on a quarterly
basis during August 2023, with Road,
Rail and Air Freight the laggards. On
an annual basis, only the Road Freight
sub-sector recorded positive growth,
albeit at a muted pace. Road Freight
has always been the most resilient of
the sub-sectors, but annual growth has
subsided notably to only 1.7% year-on-
year during August 2023, a far cry from
annual growth of 28.2% experienced
in August 2022 and the lowest since
December 2020.
The Road Freight sector, the biggest
of the sub-sectors, has experienced mul-
tiple challenges in the past few months
and is still playing catch-up, as reflected
by a notable contraction on a quarterly
basis. A closer look at August’s figures
suggests that a tentative recovery is un-
derway, with road freight payload in the
country rising by 1.6% and heavy vehicle
traffic on the N3 increasing by 5.5% on a
monthly basis. The road freight industry
continues to benefit from the ongoing
rail freight woes, as reflected in data
published in StatsSA’s latest monthly
Land Transport Survey.
This sector remains a critically
important contributor to the South
African economy as trucks transport
80% of goods in the country. However,
the over-dependence on Road Freight,
which has become more pronounced
in the past few years, costs the South
African economy dearly as road freight
transport is more expensive than rail
and also raises the cost of road mainte-
nance. The recent surge of the inter-
national oil price, in combination with
renewed rand exchange rate depre-
ciation, has resulted in notable diesel
price increases, which will no doubt
Broad-based strain evident in
the logistics sector
Graph 1 Ctrack Transport and Freight Index – annual change
CTRACK
30%
20%
10%
0%
-10%
-20%
-30%
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jan-23
Apr-16
Apr-17
Apr-18
Apr-19
Apr-20
Apr-21
Apr-22
Apr-23
Jul-16
Jul-17
Jul-18
Jul-19
Jul-20
Jul-21
Jul-22
Jul-23
Oct-16
Oct-17
Oct-18
Oct-19
Oct-20
Oct-21
Oct-22
26.9%
-1.4%
4.5%
13.8%
7.7%
-1.0%
Graph 2 Quarterly growth in sub-components of the Ctrack Transport and Freight
Index (%)
CTRACK
Sea
8.2
Pipeline
3.1
Storage
-0.2
Rail
-3.7
Road
-5.1
Air
-7.0
-10% -8% -6%
-2%
-4%
0%
2%
4%
6%
8% 10%
October 2023 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA
push headline consumer inflation back
into a range of between 5.5% and 5.9%
for the next few months (latest print
for Aug 23: 4,8%). With a forecasted
diesel price increase of around R1.50/
litre in early October, the cumulative
increases over the three months August
to October could total just more than
R5/litre. The direct and indirect impact
of these increases is sure to have a
negative impact on the fragile state of
the South African economy.
The Sea Freight component, one
of the sub-sectors hardest hit by the
Transnet strike in October 2022, is still in
a gradual recovery mode and increased
by 3.1% on a monthly basis but remained
in negative territory compared to levels
of a year ago (-2.0% year on year).
Comparing the number of containers
handled during August 2023 to the pre-
strike level of September 2022 revealed
that the total is still 11.1% lower.
Container handling, however, increased
by 1.9% during August, whereas other
cargo handling declined by 0.6% on a
monthly basis.
The ongoing underperformance of
South African ports has been highlight-
ed again in recent media reports. The
Freight Forwarders Association, in a
weekly report on the cargo industry,
bemoaned the “desperately low”
handling of containers by Transnet’s
ports and detailed a variety of prob-
lems currently bedevilling them. Some
of the problems the report identified
included dismal straddle carrier avail-
ability in Durban, only one helicopter
being operational and persistent cable
theft on rail lines, leading to them being
closed for hours.
“While the recent announcement by
Transnet National Port Authority of the
privatisation of the Pier 2 container ter-
minal at Durban has created strong pos-
itive sentiment in an industry crying out
for better port performance, it will take
some time before a turnaround could be
expected. The Pier 2 terminal handles
72% of the Port of Durban’s throughput
and 46% of South Africa’s port traffic,
thus, a notable improvement could be a
game changer for the industry and the
economy at large, however, sometime in
future only,” says Jordt.
The Rail Freight sub-sector also
subsided further in August, remaining
deeply in negative territory on an
annual basis and declining by a further
7.0% year on year during August 2023,
which represents the 17th consecutive
monthly decline. The urgency of freight
reform has been reinforced in the
Operation Vulindlela update recently,
while stakeholders are raising their
voices on an ongoing basis to reinforce
the urgency of reforms needed.
Air Freight has been under pressure
for most of 2023 and declined by a
further 1.7% on a monthly basis during
August, while the sector remains just be-
low its position of a year ago. According
to the International Air Transport
Association (IATA), lower demand for
STATSSA LAND TRANSPORT SURVEY
Graph 3 Road vs. rail freight payload in total country (‘000 tons)
90 000
80 000
70 000
60 000
50 000
40 000
30 000
20 000
10 000
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Jan-21
Jan-22
Jan-23
Jul-09
Jul-10
Jul-11
Jul-12
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
Jul-18
Jul-19
Jul-20
Jul-21
Jul-22
Jul-23
‘000 Tons
Road Freight
Rail Freight
The recent announcement of Pier 2 container terminal’s
privatisation in Durban by Transnet National Port
Authority has generated optimism in the industry,
but it will take time for significant improvements.
Pier 2 handles a substantial portion of Durban’s and
South Africa’s port traffic, making any improvements
a potential game-changer for the economy.
BUSINESS FLEET AFRICA | October 2023
WWW.BUSINESSFLEETAFRICA.CO.ZA
air cargo reflects multiple headwinds
still facing the global economy, par-
ticularly China’s weak performance in
production and exports. While air cargo
ton- kilometres (CTKs) to Africa increased
by 2.8% and consolidated airport flight
movements also increased, the number
of unscheduled flights that are typically
chartered for cargo purposes, as well
as cargo load on planes, both declined
during August.
The transport of liquid fuels via
Transnet Pipelines (TPL) increased by
2.3% compared to July, with the Pipeline
component of the Ctrack Transport and
Freight Index tracking moderately higher
on a quarterly basis (+3.1%) but remain-
ing deep into negative territory on an
annual basis, with declines of 15.4%
recorded (partly reflecting a high base of
calculation).
After being the star performer in
June, the Storage and Handling sub-sec-
tor of the Ctrack Transport and Freight
Index declined during July and further
in August, by 2.4% on a monthly basis,
while moving 3.9% below year-ago
levels. Inventory levels have recently
moved to lower levels within the econo-
my, which has had a spill-over effect on
storage and warehousing activity.
Ctrack TFI, GDP and GFCF growth
Although the Ctrack Transport and
Freight Index increased at a muted
rate, the extent of the transport
sector’s underperformance during the
second quarter came as a surprise. As
part of the Q2 GDP release, StatsSA
reported that “Transport was down on
the back of decreased land transport
and transport support services”. The
transport and communication sector
declined by 1.9% during the second
quarter (vs 1.1% in Q1) vs. total eco-
nomic growth of 0.6% (q/q, seasonally
adjusted). While the economic narrative
remains generally static, with ongoing
load-shedding, elevated interest
rates, a lacklustre job market and low
confidence levels, it is evident that
sector-specific challenges have also
played a role in the transport sector’s
underperformance during the second
quarter.
A snapshot of the correlation
between the transport equipment
sub-sector of real gross fixed capital
formation (GFCF) and the Ctrack TFI is
depicted in Graph 4. A fairly accurate
positive correlation is evident up to Q3
2022 when the impact of the Transnet
strike pushed the Ctrack Transport
and Freight Index notably lower and
disrupted the correlation. Worth noting
is two consecutive quarters of negative
quarterly growth in transport equipment
investment (Q1 and Q2 2023), potential-
ly reflecting the strain on the economy
at large and the logistics sector per se,
as reflected by the Ctrack Transport and
Freight Index. BFA
Table 1 Change in Ctrack Transport and Freight Index in August 2023
Percentage change between
Rail
Road
Pipeline
Sea
Air
Storage and
handling
Ctrack Freight
Transport Index
August 2023 vs August 2022 (y/y)
–7.0%
1.7%
–15.4%
–2.0%
–0.9%
–3.9%
–1.0%
August 2023 vs July 2023 (m/m)
–1.3%
–2.0%
2.3%
3.1%
–1.7%
–2.4%
–1.5%
Quarter to August 2023 vs. Quarter to May 2023 (q/q)
–3.7%
–5.1%
3.1%
8.2%
–7.0%
–0.2%
–3.5%
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.
STATSSA
Graph 4 Real GFCF (transport equipment) vs. Ctrack TFI (q/q change)
30
20
10
-10
-20
-30
-40
GFCF - transport equipment
Ctrack TFI
201801
201901
202001
202101
202201
201803
201903
202003
202103
201802
201902
202002
202102
202202
202203
202301
202302
202204
201804
201904
202004
202104
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Business Fleet Africa (BFA) heard from
Albrich van Niekerk (AVN), CEO of
Trailmax and Truckworld at the annual
Professional Transporters Luncheon held
in Muldersdrift last month.
This luncheon is a day-long event
that is now in its second year. It brings
together the trucking and logistics sector
to network and showcases various prod-
ucts and services. It also provides an
opportunity to listen to an industry-lead
panel discussion hosted by Trailmax,
with support from partners such as
Volvo Trucks and Sandown Commercial
Vehicles, to name a few.
BFA: Albrich, why did you decide to
create this luncheon?
AVN: Personally, I’ve been in the truck-
ing and transport industry since 1993.
Since the outbreak of COVID-19, there
hasn’t been an event that the trucking
community could attend or that could
bring us all together.
Truckers are a unique breed. We
enjoy touching things. We enjoy
experiencing things. We want to engage
in face-to-face conversations and
exchange handshakes. We want to see
what operators are doing. We want to
see what their operations are like.
And that’s what trucking in essence
in South Africa is all about. It is very
personal. And there is no real event
that brings us, as industry partners
and players, together. That’s where
this initiative comes from. We started
this last year and we have more than
doubled the scale this year. Our vision
is to make this the event on the South
African transport calendar.
BFA: Who is the luncheon for?
AVN: It’s a chance to nurture people’s
passion for heavy vehicles among
like-minded people. It’s an event for
those who understand that if your
wheels aren’t turning, you’re losing mon-
ey. And for those who understand what
the costs and risks are in road transport.
It’s for those people who understand
that your truck can be burnt, crashed or
hijacked 10 minutes after it has left your
yard. This is unfortunately the harsh
reality of the transport industry in South
Africa today.
There are many challenges that
have increased. We’ve seen more acts
of violence against our drivers. And we
are seeing more road closures. We see
what we call terrorist factions attacking
our drivers, for no reason. But still,
the industry is vibrant. The industry is
strong. The industry is good.
With the luncheon, we aimed to
establish a platform where transporters
could engage in discussions with the
RFA, learn about RTMS, and gather inno-
vative ideas that could be implemented
in their own transportation enterprises.
This event was created for us as
transport people. We don’t always have
someone to talk to. We don’t know
what’s new in the market. We don’t
have a place to talk, transporter to
transporter. We want to ask each other,
“What is your problem?” What is your
solution? And make it a pleasant event
as well. So that’s the main focus of this
transporter’s lunch.
So we welcome each and every
industry player that attends this event.
Everyone is making a contribution to
the industry. It’s nice to see familiar
faces and to meet new ones, both old
and new.
BFA: Why do you call it a professional
transporters lunch?
AVN: Businesses today have to operate
on the tightest of margins. We are faced
with skyrocketing fuel prices and an
increasing interest rate. We are discuss-
ing external factors that are well beyond
our control. What can we do about this?
INTERVIEW
‘Personally, I’ve been
in the trucking and
transport industry
since 1993. Since the
outbreak of COVID-19,
there hasn’t been an
event that the trucking
community could
attend or that could
bring us all together.’
In conversation with
Albrich van Niekerk
Truckers are a unique breed. We enjoy touching
things. We enjoy experiencing things. We want to
engage in face-to-face conversations and exchange
handshakes. We want to see what operators are doing.
We want to see what their operations are like.