Imperial enters strategic partnership with MiX Telematics

 

MiX Telematics (JSE: MIX), a leading global SaaS provider of connected fleet management solutions, today announced an agreement to be the preferred telematics provider for Imperial (JSE: IPL), a leading African focused provider of integrated market access and logistics solutions. 

This strategic business partnership allows for the alignment of data and reporting across Imperial.

Imperial has been a long-standing customer of MiX Telematics for more than 10 years. The new agreement means that MiX’s premium solution will be implemented across Imperial’s entire fleet for its proven risk management benefits. The telemetry data provided is integrated seamlessly into Imperial’s management systems, providing an overall view of operations, allowing for rich data analysis and the identification of trends for continuous efficiency improvements.

In addition, the MiX Track and React bureau service will be utilised to ensure safe vehicle and driver operations. The fleet’s safety and monitoring are further enhanced with the MiX Vision camera solution and MiX Vision bureau service, the benefits of which are greater visibility and insights into Imperial’s vehicles and drivers in real-time.

“Our expertise in fleet telematics and security services adds value to Imperial’s business and is testament to how successful our solutions are at meeting the specific requirements of a leading logistics provider. Together, our advanced artificial intelligence powered technology solutions present new growth opportunities for both businesses,” says Gert Pretorius, Managing Director at MiX Telematics Africa.

 

 

Trucking the Freight Industry

Trucks with valuable freight travel South Africa as well and neighboring countries continuously. Across South Africa truck hijackings and cargo theft is being reported on the daily – as much as 90% of these hijackings involve an inside source tipping off criminals with crucial information.

Over the last decade, the freight industry reported 11,112 truck heists, an average of 1,110 within a year. 

The top commodities being stolen during 2018/19 included soybeans, diesel, yellow maize, and biscuits – costing the economy R10 billion a year.

Trucks carrying alcohol also see a large number of hijackings and attacks, especially over the Easter and festive months when sales spike and prices rise. The truck robberies have become more violent with many criminals presenting themselves as police or traffic officers bringing vehicles to a standstill, and once criminals have stopped a truck it is at their mercy. Small arms and high calibre weapons are being used by these criminals – making these syndicates “sophisticated” and able to strike with an unprecedented level of precision and force.

Apart from the freight on board, criminals also target trucks to strip the parts. The freight industry incurs major financial losses on top of COVID-19 and drivers become reluctant to drive unsafe routes or times.

 

 

Fast Tracking Cross-Border Flows in a Crisis

The challenges that countries in the East and Southern Africa (ESA) region faced prior to the outbreak of the COVID-19 pandemic continue to alter the manner in which crossborder business takes place in the region. 

This matter was the focus of the World Customs Organization (WCO) ESA Regional Private Sector Consultative Group (RPSG) webinar — the 6th of its kind — held online on 21 May.

The meeting deliberated on some of the most pertinent customs- and trade- related matters, with specific focus on how the pandemic has influenced the situation.

The webinar was chaired by Juanita Maree, (WCO ESA-RPSG and SAAFF Director). She was joined by four leading customs panellists:

• Larry Liza – Director – World Customs Organization: East & Southern Africa,
• Regional Office for Capacity Building
• Patrick Gyan – Regional Development Manager, East and Southern Africa Region
• Fermin Cuza – International President – World Business Alliance for Secure
• Commerce Organization (World BASC, a member of WCO-PSCG)
• Kazem Asayesh – Senior Advisor – TIR and Transit Services, World Road Transport Organisation (member of WCO-PSCG)
• The session explored the following:
• Lessons learned from COVID-19
• Authoised Economic Operator (AEO) Programme: New developments during and after COVID-19 and
• Cross-border road freight and in transit cargo movements

Patrick Gyan highlighted the ongoing need for continued communication and collaboration – beyond the COVID-19 pandemic. He also stressed the need for innovation and for the industry to be bold and venture out.

“From a customs background, based on our nature, we hesitate to become more innovative,”

said Gyan.

“Now is the time to really take up some of the programmes that we have hesitated on. We are looking at paperless customs for example. Now is the time to really appreciate that customs’ work is to operate on that model or in that environment”.

Larry Liza shared some the key lessons learned:

There is a very strong need for investment in ICT infrastructure. We only have about 50% efficiency in IT infrastructure in the ESA region, when compared to Western Europe. Revenue administrations need to put more emphasis on ICT infrastructure.

The need for innovation in the domestic industry,especially in light of a weakening domestic industry.

The importance of e-commerce and emerging technologies, which we are going toneed more than ever. Blockchain is going to be used more and more. The use of drones and customs robotics will also grow, as it will decrease the intrusion on people and personnel.

AARTO Implementation a Big Concern says The Road Freight Association

 

The Road Freight Association (RFA) is working with all relevant role-players to ensure that the proposed Administrative Adjudication of Road Traffic Offences (AARTO) regulations are properly considered before implementation and that AARTO will achieve its main purpose of ensuring road safety – if implemented at all. 

This is according to the Association’s Chief Executive Officer, Gavin Kelly.

When the latest set of proposed regulations were published for public comment in October 2019, the RFA once again highlighted the pitfalls, weaknesses, severe risk to sustained business and nonsensical proposals that were being made, all in the name of ‘road safety’. Says Kelly: “The proposed regulations had vehicles being held ‘accountable’ for the behaviour of drivers (in some cases) or operator/owners in other cases. How do you change the behaviour of a vehicle?”

In its efforts to ensure that AARTO achieve its main objective ie. road safety, the RFA has been working closely with a number of organisations including the Department of Transport (DoT), the Road Traffic Infringement Agency (RTIA), the Road Traffic Management Corporation (RTMC), the National Economic Development and Labour Council (NEDLAC), Business Unity South Africa (BUSA), Organisation Undoing Tax Abuse (OUTA) and Justice Project South Africa (JPSA).

The AARTO Act was promulgated in 1998 with the sole aim of addressing bad (unsafe) behaviour on our roads, by implementing a demerit point system for drivers, vehicles and operators resulting in licences, permits and operator cards being suspended or cancelled.

“Fast forward to 2020 and, notwithstanding much interaction between the various government authorities tasked with implementing AARTO (DoT, the RTIA and the RTMC) and we are no closer to a reasonable and effective implementation of any kind,” says Kelly.

Kelly says that the RFA continues to advocate for a properly focused, resourced and pro-active road traffic policing strategy by all authorities concerned – not the currently proposed cumbersome and questionable point demerit system and all the costs linked to operating it. Proof of achieving better behaviour on the roads was loudly proclaimed by the Minister of Transport regarding the recent successes achieved in the December 2019 festive season traffic safety strategy.

“The RFA does not see how issuing points to vehicles will change the behaviour of people, but it will definitely go a long way to destroying both the resale value of vehicles, as well as the capex value within various businesses,” he continues. “The authorities need to focus on changing driver behaviour, rather than on a system aimed at collecting revenue to support an administrative system. The RFA supports interventions which serve to improve the safety of the country’s roads and reduce incidents, injuries and fatalities. One of the key priorities of the RFA is the safety of all drivers on our roads and we have no objection in principle to a demerit system applied to South African drivers.”

Many countries have successful driver systems with demerit points; However, these are all easy to use, fair, effective and not based on generating revenue at every point in the process. “The system must assist in improving driving standards, and thereby contribute to reducing accidents, injuries and fatalities,” adds Kelly.

He concludes: “The RFA believes that AARTO could be very effective if the proposed regulations were amended to reduce unnecessary bureaucracy and costs. Demerit access systems have been successfully implemented in other countries. These systems have a fair fine re-direction process and no vehicle demerit points.”

The RFA will be offering a series of workshops on AARTO over the coming months.

Bridging the divide between fleet managers and drivers

The relationship between drivers and fleet managers can often be challenging due to high productivity pressures and a lack of understanding regarding each side’s difficulties. The good news is that many local fleets have managed to overcome these problems and have built successful operations on the basis of excellent manager-driver relations and fleet-specific technology, says Dr David Molapo, head of Fleet Management at Standard Bank. For Louis Swart, managing director of Drive Risk, there is a clear correlation between the success of fleets and the relationship between fleet managers and the drivers.

“These fleets have built-in processes that enhance the understanding of the challenges faced by drivers,” says Swart, whose company sells DriveCam, an on-board camera system aimed at developing good driving skills. Swart believes that relationships are improving as more fleet operations shift their approach from chasing short-term benefits and productivity gains, to a longerterm view of sustainable success. In the past, fleet managers would not consider anything but the shortest and quickest routes.

Increasingly, they are permitting long-haul drivers to make slight detours so they can see their families.

Marius Luyt from the Automobile Association has also seen a steady movement towards a greater understanding between the fleet manager and driver, but the chasm between the two is still large. It stems from a lack of drivers and managers understanding each other’s challenges. “Fleet managers who fail to understand the impact of longer hours on the road for drivers keep applying pressure to get results. Many drivers do not understand how their mistakes, bad driving habits and lack of work commitment, have a great impact on their employers and long-term job security,” he says. Luyt believes the gulf between these two positions can be overcome. The first step for fleet managers is to change their mindset to a longer-term outlook by considering all the implications of their short-term decisions, including high accident rates, higher fuel consumption, bigger maintenance bills and a higher staff turnover.

A mindset shift is a challenging process, but one of the most practical ways fleet managers can deepen their understanding of the impact of their decisions is to spend a day or two in their drivers’ shoes, says Luyt. “It may be difficult to find time to do this, but the return on this investment is invaluable, and will translate into a more efficient fleet.”

Drivers’ attitudes towards their companies can also be changed, says Luyt. There are two ways for fleet managers to do this. The first is to institute an induction programme for drivers aimed at increasing their understanding of the fleet and where it fits into the company as a whole, and specifically how their actions impact on the business. Secondly, drivers with a sense of ownership tend to be more productive and take better care of their vehicles. According to Luyt, the ideal driver for any fleet is an owner-driver. They have a vested interest in taking the best possible care of their vehicles and to maximise productivity.

It is not only modern management methods that can help to build the relationship between drivers and fleet managers, but also modern technology. Basic telematics have done a huge deal to clarify the work done by drivers. Fleet managers who do not have trackers installed into their vehicles experience high levels of uncertainty about the movements of their drivers. When tracking systems are installed in such a way that the drivers know they are being monitored, there is usually an immediate drop in fuel consumption, sometimes in double digits. But experienced fleet managers warn that if technology is introduced in the wrong way, it could damage relationships, especially with unionised workers who are wary of telematics invading their privacy. Drivers have to be reassured that telematics benefit them as well through better performance appraisals, skills development, and ultimately, helping to turn a fleet into a team. •

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Gautengers urged to change mindset on e-tolls

 

Johannesburg - Gauteng residents need to change their mindsets on e-tolling, Roads and Transport MEC Ismail Vadi said on Wednesday. In an interview with News24, Vadi said new highways needed to be built. The question was how this would be done. 

 "I can tell you, if you take Gauteng Freeway Improvement Project phase two, phase three, phase four, the ballpark figure at current cost is probably R120bn," he says. "You want to build phase two, it's a new highway. 

The PWV 9, PWV 5, the N18, N16, we've got to complete the N17 because it ends at Eloff Street, we still got to get a flyover over the M1. If we want to build these new highways, government estimates are R120bn. My budget is R6.6bn. Where do you start? You're just not going to achieve it." 

 Freeways were critical for freight movement and economic development, with studies around the world showing a public transport system and road network stimulated economic development. "We might not see it in the first two, three to four years, but you see it in later years. 

If we have to build these highways, how? We [have] got to get the money and how do you get the money? Your budget allocation is what it is," Vadi said. His department's R6.6bn was not only for roads and was "nearly not enough to maintain the current road network".

Over R1bn was allocated to the Gautrain, and other portions were allocated to public transport, building taxi ranks, inter-modal facilities, and learner and driver testing centres, among other budgetary needs. "So roads itself gets about R1.5bn, R2bn at most. I can't then proceed with a R2bn budget to build a new highway. 

So either we just defer it, we leave it, and say 'well, another generation or another administration can deal with it' or you look for private sector participation," Vadi said. "Sanral [SA National Roads Agency Limited] has got a model. They sell their bonds. It has done exceptionally well for the last 14 years. They've got a total contribution of I think R52bn over the last 14 years, which government did not have. So they've got a funding model, a financing model which is workable, but of course it is linked to a tolling strategy." 

Other funding options While the public had showed opposition to tolling, the question remained of what other funding options lay on the table to finance new highway construction. "The fuel levy, it's still the public that's paying. The thing about this, whatever mechanism you use to generate revenue, in the end, it's the public that's paying.

 We can increase the fuel levy, it's not going to solve the problem. You're still paying for it. With increases in the fuel price, it is becoming burdensome," Vadi said. "My colleagues, the other MECs in the other provinces, ANC colleagues, they are saying, 'But Vadi, you can't increase the fuel levy and tax all of our people, and then go build a highway in Gauteng. It's not on. Come and look at our roads, come and look at our needs, we also have to build roads'."

You could not have a general national tax and then channel those funds into building a freeway in Gauteng, as it was not equitable and fair, said Vadi. "They [the other transport MECs] say politically we are not going to support that. We are telling you upfront," said Vadi. "We are going to have to find another mechanism. 

So those who advocate the fuel levy as the only option, like the opposition parties, they must see whether the rest of the country supports it. "Our indications are that there's a lot of opposition to that idea of people being taxed in another province and then that money comes to road upgrades in Gauteng. There's no support for it." E-toll tariffs halved On May 20, Deputy President Cyril Ramaphosa announced e-toll tariffs had virtually been halved, from the charge per kilometre, to the monthly cap per a vehicle type. Vadi said the announcement was a step forward, though it would not satisfy everybody. 

One view was people wanted the roads upgraded, and since they paid taxes, they wanted government to build infrastructure for free. Another view was that the roads should almost be fully privatised. "I think we are taking the middle road between the two. 

The announcement that has been made by the Deputy President does allow us to break the log-jam in some kind of way and I think to try and build middle ground," Vadi said. "At the end of the day, funding and financing road infrastructure development, that's really the key issue." Vadi said he spoke to Sanral CEO Nazir Ali earlier this week, who told him since Ramaphosa's announcement, Sanral's revenue had increased by around R10m, indicative of an uptick in e-toll registrations.

"He [Ali] says they've been getting many, many more calls from the public wanting to know what the registration process is, 'I've got this old account. How do I settle it?'. "He says their call centre is extremely busy." 

On the issue of the compulsory vehicle registration, Vadi said an updated and accurate eNatis [electronic national administration traffic information] system was very important. "We got to update the eNatis system, very much like the FICA, so that you go and update your records and you give your information." Transport Minister Dipuo Peters would need to issue certain regulations in that regard, with October being the target. 

Vadi viewed an accurate motor vehicle database as a plus, since it existed for anti-crime purposes, traffic management, and e-tolling among other benefits. If Sanral is going to roll out the electronic system nationally as planned, it made sense to have an up-to-date eNatis system. "At the end of the day, that's the only reliable form of vehicle identification," Vadi said. "Once that is done, then of course it is building support for payment."

First part of new e-toll dispensation to start

 

Johannesburg - The first part of the new dispensation on e-tolls, announced by Deputy President Cyril Ramaphosa in May, will come into effect on Thursday, the SA National Road Agency Limited (Sanral) said. New and lowered toll tariffs for non-registered and non e-tag users, as well as lowered monthly caps for registered users, would come into effect on July 2. 

"Government listened to the concerns of lower- and middle income communities about the impact of transport costs on their budgets, and responded by reducing the tariffs," spokesperson Vusi Mona said. There are still organisations, opposition parties and unions which were opposed to the news dispensation.

Earlier this month, Outa claimed that the government “continue[d] to thrust an unjust, irrational and unworkable scheme onto the public, by using carrots of hollow discounts and threats of withholding vehicle licences to coerce the public to comply". However, Sanral has said the public must not be misled by organisations criticising the newly gazetted e-toll dispensation. Account holders ‘to benefit’ Mona said account holders were the first to benefit from the new dispensation, with reduced tariffs per kilometre and monthly caps on all classes of vehicles. The monthly cap for Sanral account holders would now be R225, down from R450 per month.

Mona said the introduction of the lowered standard tariff, which was now the same as the e-tag tariff, would provide relief to motorists who were not registered.

"We remind road users that all aspects of the new dispensation on the Gauteng e-roads will take place over the next 18 months."

Sanral was working with the transport department to implement the new dispensation, which needed software and operational changes. The relief announced for road users that do not have a Sanral account would become applicable once changes had been made to the system. New caps The implementation of the 60% discount on existing debt in arrears, dating back to December 2013, would be announced by Minister of Transport Dipuo Peters, once it was available. Sanral said the 30 free gantry passes per annum would be announced once the system and administrative requirements had been fulfilled. "The new dispensation also means that all the administrative and technical loopholes will be closed.

"Every road user will pay their fair share while both the national and provincial governments will also make their contributions in accordance with the hybrid funding model that was proposed by the e-toll advisory panel," Mona said. Caps for registered account holders per vehicle class, per month:

- A1, Motorcycles R125

- A2, Light vehicles R225

- B, Small heavy vehicles R875

- C, Large heavy vehicles R2900

"Transport is the heartbeat of South Africa’s economic growth and social development!"

 

South Africa has a modern and well-developed transport infrastructure. The air and rail networks are the largest on the continent, and the roads in good condition. 

The country's ports provide a natural stopover for shipping to and from Europe, the Americas, Asia, Australasia and both coasts of Africa. The transport sector has been highlighted by the government as a key contributor to South Africa's competitiveness in global markets. It is regarded as a crucial engine for economic growth and social development, and the government has unveiled plans to spend billions of rands to improve the country's roads, railways and ports.

Ports and shipping Major shipping lanes pass along the South African coastline in the south Atlantic and Indian oceans. 

Approximately 96% of the country's exports are conveyed by sea, and the eight commercial ports are the conduits for trade between South Africa and its southern African partners as well as hubs for traffic to and from Europe, Asia, the Americas and the east and west coasts of Africa. The commercial ports are: Richards Bay and Durban in KwaZulu-Natal; East London, Port Elizabeth and the Port of Ngqura in the Eastern Cape; and Mossel Bay, Cape Town and Saldanha in the Western Cape. The state-owned Transnet National Ports Authority (NPA) manages the ports, while Transnet Port Terminals, formerly known as SAPO, is responsible for managing port and cargo terminal operations. The Port of Ngqura was completed in 2006. Developed off the coast from Port Elizabeth in the Eastern Cape, Nqura is the deepest container terminal in Africa, and is a key part of Coega, one of the country's strategic industrial development zones (IDZs). 

Durban is Africa's busiest port and the largest container facility in southern Africa, while Richard's Bay is the world's largest bulk coal terminal. Located between these two ports is the Dube Trade Port. Launched in March 2012, the port includes King Shaka International Airport. Operated by the Dube Trade Port Corporation, a state-owned company, the port includes a cargo terminal, trade zone, agrizone and IT and telecommunications platform. The old Durban International Airport will be turned into a multibillion-rand dug-out port by Transnet. Expected to be ready by 2019, development plans include the creation of an automotive component supplier park around the port. 

Roads South Africa's total road network is about 747 000km, the longest network of roads of any African country. The drive from Musina on South Africa's northern border to Cape Town in the south is a 2 000km journey on well-maintained roads. While the Department of Transport is responsible for overall policy, road-building and maintenance is the responsibility of the South African National Roads Agency (Sanral) as well as the nine provinces and local governments. Sanral is responsible for the country's network of national roads, which cover around 16 200km. There are about 185 000km of provincial roads, and the municipal network totals around 66 000km, according to the SA Institute of Civil Engineering. Around 19% of the national roads are toll roads, most of which are maintained by Sanral, while the rest have been concessioned to private companies to develop, operate and maintain. 

A multi-billion rand freeway improvement scheme has significantly eased congestion on the roads in Gauteng, the country's busiest province. S’hamba Sonke (“walking together”) is a labour-intensive road maintenance programme, with projects run by the provinces to upgrade and repair roads in rural areas. South Africa’s Public Transport Strategy plans to integrate rail, taxi and bus services in co-operation with private operators, both operationally and through ownership. Johannesburg's successes with the Bus Rapid Transport System (BRT) has led to it being adapted and implemented in other South African cities, including Cape Town, Nelson Mandela Bay, Rustenburg, Tshwane and Ekurhuleni. As the vast majority of South Africans use taxis as their prime transport, the government has introduced compulsory safety standards and a taxi recapitalisation programme, which gets rids of unsafe taxis through a scrapping allowance. 

Railways South Africa has an extensive rail network – the 14th longest in the world – connecting with networks in the sub-Saharan region. The country's rail infrastructure, which connects the ports with the rest of South Africa, represents about 80% of Africa's total. Improving the country’s 20 247km rail network is a top government priority, with projects aiming to increase freight rail volumes and increase market share of container traffic. 

The rail network is managed by the Department of Public Enterprises via Transnet. Transnet Freight Rail is the largest railroad and heavy haulier in southern Africa, with about 21 000km of rail network, of which about 1 500km are heavy haul lines. Just over 8 200km of the lines are electrified. Passenger rail is also being completely overhauled, with a 20-year fleet renewal programme in place to buy more than 7 200 new trains.

Managed and implemented by the Passenger Rail Agency of South Africa (Prasa), the programme focuses on revitalising the local industry through local manufacturing of components. The existing rail network will be upgraded to take advantage of the new coaches’ technological features. Around 2.2-million people travel by train every day in South Africa. Metrorail commuter services can be found in Cape Town, the Eastern Cape Province, Durban, and greater Johannesburg and Pretoria, focusing mainly on poorer South Africans. 

Tourists and well-heeled passengers can travel on the Blue Train, one of the world's most famous luxury trains, while Shosholoza Meyl transports passengers between the country's major cities. The Gautrain, Africa’s only high-speed train, was opened just days before the start of the World Cup in 2010. Servicing Johannesburg, Pretoria and OR Tambo International Airport, it is supported by a network of feeder buses. About 40 000 people use the service every day.

 The Gautrain can travel at speeds of 160 km/h, enabling commuters to make the trip from Johannesburg to Pretoria in less than 40 minutes. Airports and airlines South Africa's 10 airports handle more than 98% of the country's commercial traffic, with 200 000 aircraft landings and 10-million departing passengers annually. The R20-billion airports upgrade ahead of the World Cup in 2010 focused on OR Tambo International in Johannesburg, Cape Town International, and the new airport, King Shaka International, outside Durban. The seven smaller airports are domestic airports: Port Elizabeth, East London, George, Kimberley, Upington and Pilanesberg. 

 State-owned Airports Company of South Africa (Acsa) is responsible for managing the country's airports and improving productivity of its airports. Other airports include Lanseria (Midrand), Gateway (Polokwane), Nelspruit and Kruger (Mpumalanga). In 2012, South African Airways (SAA) was voted the best airline in Africa for the 10th year in a row by UK global aviation research organisation Skytrax. South African Airways (SAA) is by far the largest air carrier in Africa, with connections to more than 28 cities across the continent. As a Star Alliance member, SAA also offers its customers 1 356 destinations in 193 countries and 21 500 flights daily.