INDUSTRY OBSERVATION

I think it is fair to assume that transporters must feel as though they are under siege right now. A tougher set of economic circumstances and conditions as being currently experienced can hardly be envisioned - Diesel prices are likely to increase to R10 a litre by June 2008; input costs are escalating way above inflation; congestion in ports (including inland), as well as main roads leading to Gauteng and border posts is worsening; outrageous toll fees on main national roads have no correlation to economic benefits; and then there’s the load shedding incompetence – to name just a few… 

Although I have no expertise in the matter, there have been comments that rail infrastructure efforts have principally been focused on lines like Sishen/Saldahna and other major ore routes. There is insufficient effort being made to upgrade the other/normal freight routes. Certainly the headlinegrabbing capex projections of the Chief Executive, Maria Ramos, extol the extent of projected future capex but it appears it is all aimed at mining infrastructure… 

I have often said and repeat, “where is the vision to break out of this mould and create a high speed train to Durban for example?” 

Sorry! I just don’t see any of the infrastructure backup to enable even rudimentary support to our transport industry. There is an ongoing migration from rail to road and it doesn’t look, apart from mining, like there will be any trend reversal.

I thought because of the difficult circumstances that transporters now face, here are some points for a checklist that should be considered by Operators in terms of Operations and Insurance. 

Operating:

Fuel.

Truck selection is critical.
Operators would be well advised to avoid big, diesel guzzling, over spec’d trucks! Smooth gear shifts, no overrevs and no aggressive driving are the watchwords. Throw all the best and magnificent driver measurement and enhancement technology at the problem to boost efficiencies. 

Idling.

How many trucks do you see idling for literally hours? Try to incentivise drivers on efficiency. 

Tyres. 

Train drivers how to handle potholes or, more importantly, a series of potholes! Just the other day I saw a rig ‘cut a corner’. The only tyre of the truck tractor and link combo not to be dragged and scraped along the corner curbstones was the front steering axle tyre! That means that due to poor discipline, six tyres were now vulnerable to damage due to a driver’s poor technique or lack of professionalism. 

Routes.

Scrutinise the best routes. Every km counts. Look for optimal routes, something less obvious to the existing routes. How many drivers does one see get ‘lost’ in Gauteng? All this wastage adds up and at current rates who can afford it? Do you recall the Durban harbour article? Is Portnet getting grilled over the mistreatment of the vehicles entering the harbour? At last rumour, I heard this debacle had not improved. 

Insurance.

Talk to your Broker. Consult us, the underwriter, through them about your fleet values. Understand and confirm your fleet values are correct. Ensure the premium amount you are paying as a total makes sense and doesn’t have ‘funny extras’ added. 

So, although we are all faced in 2008 with hurdles completely unique, those operators that continue to thrive will be the ones who really tighten the finer details.