THE DEFINITIVE TRUCKING SITE

March 2009

In the face of a global economic slowdown, trade and investment between South Africa and the rest of the continent continues to grow providing ample opportunities for local road transport companies to increase their presence in a vibrant market. But, writes Andrew Parker, be warned: the logistics involved are formidable underlining the age-old adage that Africa is not for sissies. 

Alongside the growth in trade, major developments taking place across the region such as the rehabilitation and expansion of road, rail and harbour infrastructures in Angola, Tanzania, Mozambique and Uganda, among other places, are placing an increasing demand for South Africa to provide the necessary transport and logistics expertise. 

And it is road transport that is bearing the brunt of this pressure. In spite of increasing calls for rail to get its act together, capacity constraints and dilapidated infrastructure will continue to beleaguer the rail industry for some time to come. 

It has been well documented that high costs are a major hindrance to South Africa’s potential to become the region’s pivotal distribution hub and are one of the biggest challenges facing the road freight industry. 

In the meantime, after years of countless meetings, pledges and announcements, SADC countries need to increase their efforts to harmonise the transport infrastructure as well as the rules and regulations affecting cross-border transport. 

In spite of the challenges depicted here, Grant Coe, operations manager at Arrow Bulk Logistics, maintains that there is such a demand for goods in Africa there are not enough trucks in South Africa to cope. 

“There is such a lot of work out there,” he says, “The demand for goods is quite extreme. Malawi needs paper for its tobacco industry while, in spite of a slowing down of world markets, there is still strong demand for mining equipment, particularly in the DRC (Democratic Republic of Congo) - and so it goes on.” 

“Cross-border transport is not as simple as it may seem,”...Barney Curtis, executive officer of the Federation of East and Southern African Road Transport Associations (Fesarta).

Demand has grown 

Reiterating Coe’s statements, Barney Curtis, executive officer of the Federation of East and Southern African Road Transport Associations (Fesarta), reports that the demand in the cross-border transport arena has grown exponentially over the last few years. 

“A few years ago, 300 trucks a day were transiting the Beit Bridge border post between South Africa and Zimbabwe. This has grown to 600 trucks per day (300 in each direction).” 

Coe says further that a major challenge is the long turnaround times for deliveries into neighbouring states, particularly to the DRC. “Our customers get quite frustrated waiting for the trucks to get back so we can dispatch the next load. Quite honestly we have a fight on our hands to keep up with the demand.” 

Fearne Gilson, marketing director of ManLine, is more cautious in his outlook as is Follie van Zyl jnr., director of Mac Transco, which has been hauling heavy cargo across southern Africa for over two decades.

Gilson says he is “cautiously optimistic” that cross-border transport will survive the economic slowdown although it is not without its own set of challenges. “There is still movement out there and there are opportunities for growth if you have the right contacts and the right approach,” he says. 

“Africa is a resource rich continent and there will always be a demand on the world markets for resources such as copper, chrome, cobalt, manganese and the like.” 

Van Zyl tells FleetWatch while the company has pulled its trucks out of Zimbabwe, there are plenty of opportunities for road transport and cites the expansion of Botswana’s coal mining operations as one example. 

“We pulled out of Zimbabwe because of the political instability, not because there is no work there,” he explains. “Right now, there is a lot of food and other aid needing to be transported into Zimbabwe through such organisations as the United Nations World Food Programme, but we have taken a decision to wait until the political climate is more stable.” Interestingly enough, ManLine is actively seeking more work in South Africa’s much troubled neighbour. 

Border delays 

As mentioned above, while opportunities for cross-border trucking are there for the taking, there are logistical challenges. As Wesbrad Trucking director Ryan Morillion says: “Not every Tom, Dick and Harry who buys a truck can start hauling cargo across the border.” 

“There is a lot to contend with,” he says. “Delays at border crossings for all kinds of reasons become part and parcel of your daily life. The paperwork and documentation has to be 100% in order 100% of the time.” 

Curtis agrees: “Cross-border transport is not as simple as it may seem. There are additional procedures at the borders and if the transporter is not well-informed, his truck can be delayed for several days, if not longer.” 

Adding to this Curtis says hauliers should take into account that distances are much greater than in South Africa and services are not easily sourced. The truck can be out of touch for days or it can break down and not be repaired for some time. 

“It is common for cross-border transporters not to take all these issues into account and underprice the route. This leads to the transporter losing money and also the rate structure for the route is compromised.” 

Morillion says even though there is a global recession, many countries around South Africa have been so poor that what may seem to be small developments on a global scale are quite significant in a regional context.

It is with this mindset that Morillion says, while there is lot of business to be had from a road transport perspective, Angola remains a nightmare. “It is not uncommon for trucks to be stuck at the border for as long as a month at a time” he says, adding that there are no ablution facilities, water, shops or hotels available for trucks drivers. 

“The attitude of the Angolan border officials appears to be one of ‘just wait’,” he says adding that, in his opinion, it will take Angola some time before it is functioning properly. 

This is not the first time FleetWatch has heard of lengthy delays at our borders. Similar scenarios have been reported from several border crossings between South Africa and its neighbours. While some of these delays can be blamed on the fact that transporters arrive at the border with inadequate clearance papers and other essential documents, the general consensus among hauliers is that they are largely caused through a combination of incompetence and arrogance on the part of the border officials themselves. 

One of ManLine’s trucks traverses the Zambezi River on the Kazangulu ferry between Botswana and Zambia.

Fearne Gilson, Marketing Director of Manline... 'There are opportunities for growth if you have the right contracts and approach.'

A breakdown in Africa can mean days of delay...

Be prepared

Taking the above into mind, Gilson says cross-border hauliers have to be prepared for any eventuality including seemingly senseless delays. “In essence, this means applying First World logic to a Third World system,” he explains. “We are extremely thorough in ensuring all paperwork, documents, clearance procedures, vehicle licences, driver permits and so on are carried out according to the book. Nothing is left to chance.” 

Gilson says for added safety and security, ManLine vehicles operate in convoy and are in constant touch with headquarters. The company has also set up a network of service providers and contacts in the event of a breakdown or other delay. 

Gilson advises any transport company looking at moving into cross-border transport to make sure they are charging viable haulage rates. “Transport is an arrears business but expenses such as tyres, fuel spares and repairs are day-to-day. It is critical that haulage companies keep this at the forefront of their minds and manage their cash flows properly.” 

Adding to this Gilson says: “One of the demands of cross-border transport is that you must have good quality, well maintained trucks capable of handling the operating conditions. There is little room for error in Africa. If your vehicle breaks down, it could be stuck for days before you can get it back on the road. You have to be prepared for any eventuality.” 

On the local transport front, Morillion says while his company remains well occupied moving goods from Cape Town into Gauteng, there has been a definite drop off in return loads. “I can only surmise that South African exports are slowing down,” he says. 

Morillion is right on the button. Figures posted on the South African Revenue Services (SARS) website on December 30, 2008, state that the trade deficit increased to R12,1 billion, (up from 9,3 billion), mainly as a result of a month-bymonth decrease in exports of base and precious metals, vegetable products and minerals. 

Curtis has the final say: “Any slowdown in some sectors of the road transport market will not become major problems into the future. Once Zimbabwe comes back on stream, the tonnages will increase dramatically.”