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A wide variety of truck-tractors are hauling South Africa's local and export fresh and frozen produce.

Transporters engaged in refrigerated transport, especially those involved in transporting export perishable products such as mangos, avocados and table grapes to name a few, have survived a grinding and challenging 2006. Not only were product volumes slightly down on 2005, partly due to weather conditions in some areas and the impact of a stronger rand during the first half of the year, but record high fuel prices, higher operating costs, generally flat transport rates and sliver thin margins represented a serious challenge to the industry. It's now got to the point where these factors - combined with others - present a threat to the very survival of longhaul refrigerated transporters as they move into the future writes FleetWatch correspondent Max Braun. 

As if high fuel prices and operational costs were not enough, procrastination on the part of the Department of Agriculture (DOA) to finalise, implement and enforce cold chain and food safety standards comparable to - and in line with - EU requirements is reminiscent of the Department of Transport's (DoT) pussyfooting around long-awaited transport legislation such as AARTO and related regulations, not to mention the almost forgotten RTQS.

Government's inability or lack of political will to resolve and finalise these relatively simple issues inevitably results in heavy losses for  the economy and compromises South Africa's reputation as a preferred exporter of perishable products.

Manufacturers and distributors of perishable products also face daily battles coping with the massive, ongoing growth in demand at the retail level. Daily deliveries are almost universally bedevilled by the waiting game at the back door of supermarkets in particular. Traffic densities that are getting close to grid-lock in and around the Metropoles add further pressures to achieving cost-effective use of expensive refrigerated vehicles. 

Transporters serious about providing a reliable and quality service have, at times, problems in coming to terms with how best to comply with cold chain and food safety standards recommended by the DOA under the auspices of the Perishable Products Export Control board (PPECB). However, at this time there is still no legal obligation to be certified as a compliant transporter. 

John Ackerman, manager of the South African Refrigerated Distributors Association (SARDA), makes the important point that while the PPECB's certification criteria for vehicles is valid, the contents and related issues have not yet been agreed to by the various roleplayers and is the reason for the delay in getting it promulgated. 

The PPECB's lack of access to a thermal chamber hobbles the legitimacy of its planned and ad hoc technical audits of refrigerated vehicles. Ackerman shares in the frustration expressed by many transporters, trailer and bodybuilders, all of whom are continually faced with the dilemma of deciding as to which standards should apply when transporting a variety of perishable products or when serving several clients with the same vehicles. 

While responsible transporters practice high standards of consistent self-regulation, growers, pack houses, shippers, receivers and local retailers have their own specific standards regarding vehicle cleanliness, chemicals used in cleaning vehicles and equipment, temperature monitoring procedures and vehicle maintenance procedures. 

Steve Oosthuizen at Cape Fruit Coolers says of the more than 10 000 loads a year they receive by road, only about 2% to 3% of the cold chain related problems they experience can be laid at the door of the transporter or the vehicle. 
 

	Meat Carriers Where local abattoirs are few and far between fresh meat is being transported over longer distances. The mass and movement of carcasses during transport creates a daunting challenge for body builders to manufacture reliable and durable loadboxes.
	6x2 Rigid Increasing demand for perishable products at retail and food services outlets and everworsening traffic congestion has pushed fleet managers into costly bigger payload vehicles that are proving difficult to operate efficiently.

Key problem
One of the key problems inhibiting export perishables, says Oosthuizen, is the rapid and significant increase in the production of produce during the past two years. He sites table grapes as an example where growers do not always harvest the fruit before temperatures rise to a high level. In addition, many pack houses are outdated, under-resourced and too small to handle the fast-arriving volumes during the season. The name of the game is to get the stuff out of the packhouse as soon as possible. As we all know, mobile fridge units, no matter how sophisticated or efficient, are designed to act as a cooling room. Is lack of understanding this the reason why so many loads take place at a temperature above the set point? 

How then does this impact on the transporter and the vehicle? 

• Fridge units working at maximum output for a large portion - if not all - of the journey adds hugely to the fuel used. Growers and packhouses are unsympathetic to transporters and are unwilling to pay more than the keenest rates on offer. The refusal to pay a higher rate for vehicles fitted with airflow ducting has virtually killed the use of a system that has convincingly been demonstrated as a means to improve airflow and contribute to a better all-round atmosphere during transportation. The absence of validated data and subjective criticism by a few in the industry that foster negative perceptions of the concept should not go unchallenged. 

• The general prevailing attitude to transport rates makes it difficult for transporters to justify the investment in first class trucktractors, superior spec'd insulation, optimum payload trailers and top of the range fridge units. This especially so when any number of loads are awarded to subcontractors operating with less than suitable insulated trailing equipment - in some instances, sub-standard equipment. Growers and packhouses should be aware that the price of fridge units has already gone up in November by around 10 percent (more in the case of some makes). Trucktractors, trailers and loadboxes are set to follow. 

• Transporters quoting "cut-throat" rates are also operating in these markets. While they are free to do so, they never last for any length of time before going belly-up. However, they do untold damage to the industry as a whole and not just the legitimate, committed transporters. 

The PPECB specialist cold chain consultant Dr Malcolm Dodd expresses grave concern about the consequences of and potential for major losses to the country's perishable exports. Dr Dodd has for several years studied the impact of transporting perishables at temperatures higher than set point. 

According to his studies, he estimates current average losses of around R1.40 per carton as a result of being fundamentally obliged to use the more expensive controlled atmosphere method to cope with the shortcomings in cold chain management. Based on an example of 12-million cartons of avocado exports in a year, the procedure adds approximately R17-million to export costs. More importantly, when the quality of export fruit is compromised as a result of avoidable problems, the reputation of South Africa as a credible and reliable exporter is also compromised. 

The accompanying picture of rotten naartjies (further down this page) - taken by the writer on a recent visit to the UK - clearly illustrates an unattractive case of South African naartjies which was part of a shipment received by Mack on behalf of its clients Sainsbury and Marks & Spencer. Was the deterioration due to cold chain problems or was it inherent in the fruit to begin with? Whatever the reason - or reasons - it does not create a climate to motivate a preference for South African fruit. 

In its bid to finalise the question of certification, the PPECB is in the process of mounting a number of pilot projects to road test its approach to the method, procedures and audits. For details of the pilot project, contact Lindy Groenewald on (021) 930 1134. The PPECB makes its compliance criteria and checklist available on its website www.nda.agric.za.
 

Refurbish Body and trailer builders say transporters and fleet managers are refurbishing and repairing loadboxes sooner than in the past.

Secondary distribution and delivery
Manufacturers and distributors of fast moving perishable products are not yet under specific pressure to comply with PPECB driven cold chain and food safety standards. However, they are subject to frequent scheduled and ad hoc inspections and audits by their respective principals and retail clients. It goes without saying that whether the vehicles are operated by the manufacturer of perishable products or a distributor contracted by the manufacturer, vehicles must be properly spec'd, equipped, clean and temperature controlled. 

The increase in jobs over the past two years and growing disposable income among the burgeoning middle-classes is driving the ongoing increase in demand for fast moving consumer goods. This is resulting in a significant and rapid increase in the number and growth of retail stores. In combination with the flood of new products, the food services industry and retailers want quicker, more frequent deliveries but fewer trucks at their premises. How is this impacting on the distribution and delivery of perishables? 

To accommodate changing customer service levels and to find ways to cope with the increasing traffic gridlock during peak periods, many have introduced larger payload capacity rigid vehicles into their fleets. Typical of this development is the MAN 25.284, 6x2 chassis designed to carry 14-pallets. However, the anticipated efficiencies in terms of transporting larger loads and achieving close to optimum utilisation of payload capacity are not materialising. If anything, a host of unwelcome and unaffordable costs are emerging. What is this dilemma all about? 
 

Typical secondary delivery vehicles - due to continuous opening of the doors multi-drop delivery vehicles use more kW power and more energy expressed in kW/hrs per ton/km than larger trailer units says the international institute of refrigeration.

Back Door Blues
From way back when the now ubiquitous supermarket or chain stores came into being, there has been dissatisfaction with the delays encountered at the unloading point at these stores - commonly referred to in the trade as the backdoor. Due to the huge buying power the major supermarket groups wield, there is a reluctance - even fear - to take them  to task in a determined bid to resolve the ongoing problems that contribute to huge knock-on costs that add to the cost of living and is somewhat contrary to the image some supermarket big-wigs like to project of being seen as consumer watchdogs. 

Having been in and around the business of trucking for the past 50 years, I can say with confidence that the research for this report on refrigerated transport revealed the most outspoken criticism and condemnation of retail managements' appalling lack of interest or willingness to address the problems at their respective back doors. 

It is important to note that the companies that responded to the questions own and operate more than 1 000 refrigerated vehicles managed by experienced and competent fleet and transport managers. This is why they say the back door blues are slightly out of tune:

• Waiting in line with any number of other supplier trucks for three to four hours seems to be the rule rather than the exception. One supplier recalls a recent drop that stood at the back door for seven hours and totally destructed. The observed and experienced contributing factors to this unacceptable and widespread practice include: 
  - Due to strikes, lack of staff available to unload, check and sign off deliveries.
  - Problems in getting the documentation sorted out. This especially where the SAP system is involved. 
  - Passive resistance on the part of staff manning the back door. Examples mentioned include arrogance, couldn't care-less attitudes, taking an inopportune break and too few receivers for too many trucks. 

Poor Payload Utilisation
As mentioned earlier, distributors are battling to achieve more costeffective payloads to justify the bigger payload vehicles acquired with the objective of reducing the number of trucks and deliveries to retailers and the food services industry. In practice, many trips are yielding little more than a 50% payload utilisation as bigger loads fail to materialise. These less-thantruck- loads frequently result in problematical mass distribution such as overloading the front axle as soon the load begins to diminish. Under such conditions, regular traffic fines are being experienced. 

While secondary distribution of perishable products has always been an expensive operation with the compound effect of excessive fuel consumption, a direct result of long waiting periods, traffic densities, a shortage of experienced and trained drivers capable of managing the cold chain while the products are being transported and the challenge to remain competitive under difficult operating conditions, we should expect the cost of perishables to rise accordingly. 

Refrigerated vehicles and related equipment 
Established trailer and bodybuilders are in agreement that 2006 was not as brisk as last year especially in terms of large insulated semi-trailers. 2005 was a hallmark year for new and replacement trailers as transporters and distributors responded to the demands of a growing market and to update aging equipment with better spec'd vehicles to gain the benefits of optimal payloads that flow from the 10-metre wheelbase concession and lighter unladen mass of roadready 26- and 28-pallet semi-trailers. 

Builders of insulated loadboxes confirm the market is a bit slower than last year. The demand for loadboxes on rigid chassis has been reasonable, this especially so for the larger 14-pallet structures. Generally speaking, equipment manufacturers say there is not much request for higher spec'd equipment although there is evidence that it is being talked about and will emerge in the not too distant future. 

Concern for food safety is likely to become more topical as South Africa approaches 2010 and gets ready to host anything up to a million visitors during and after the World Soccer Cup. Of more concern is the upward pressure on the price of materials. Resin, steel, tyres and labour are all in the ascendancy. Most feel that after a long period of absorbing cost increases, the time has come to raise prices. While all the established manufacturers are accustomed to operating in the competitive framework of refrigerated transport, there is unlikely to be too many newcomers into this difficult and costly business. With the growing focus on food safety, product quality and the assurance of a decent useful life, there is no room for cornercutting engineering. 

Who transporters and fleet managers choose as their preferred equipment suppliers resides very much with those who have respect for quoted delivery dates and proven commitment to standing by their products when problems arise. Equipment manufacturers confirm that the operators of refrigerated vehicles have become more diligent in attending to the repair and refurbishment of their equipment much sooner than before. They believe this is largely due to the high cost of new equipment and a greater focus on food safety issues. 
 

Seriously deteriorated naartjies arrive in the UK. Could this be due to temperature variations or other cold chain elements? Hopefully the cause can be traced

The 2-horse race
From the users' perspective, the question as to which fridge unit to buy is essentially a choice between Thermo-King and Carrier Transicold. The majority of their respective customers - and many of those own and operate both brands - make their decision based on the level of after sales service and technical back-up they experience. Both offer an extensive model range and compete for market domination in almost every country in the world where they are active.
 

The two-horse race Carrier Transicold and Thermo- King dominate the fiercely competitive business of supplying and servicing mobile fridge units. Reliable and affordable access to maintenance, replacement parts and technical backup wins the day

It is never a surprise to hear the praise or disappointment transporters and fleet owners express when they talk about fridge suppliers. The important message for both suppliers is to take seriously those operators that are dissatisfied with the quality and cost of the attention they get in the area where they are located. For several years one or the other has a much better reputation for customer service in specific regions and cities. This is largely due to the quality of branch or dealer management, the availability of competent technicians and realistic replacement parts pricing. Where such situations exist, it is a nightmare for transporters and fleet managers with a national fleet deployed at various locations around the country. 

Notwithstanding this, Transfrig is an excellent example of a relatively small fridge supplier that has carved out a niche for its business and successfully dominates it proving the marketing philosophy that you do not have to big to be profitable and successful. 

While researching how transporters and fleet managers feel about fridge suppliers, we picked up several complimentary comments about Transfrig's commitment to customer service and how much it is valued by some of its customers. In discussion with Transfrig's Peter Solomon, he confirmed his company's decision to concentrate on smaller fleets and leave the mega fleets to the two big players. This has helped them focus on high levels of customer service and hone their maintenance contracts to address the specific needs of particular customers. 

What of the newcomers?
Recently we noted there were at least two new fridge suppliers that announced plans to enter the local market and make a bid for some of the business. One was Zinotti. According to an advertisement that appeared in Cold Chain earlier this year, we contacted the advertisers only to find that they have decided not to proceed with the representation of this equipment. More than that has not been forthcoming. Kingtec, a fridge unit that appears to be made in China, has also not responded to our request for information about its products or plans for South Africa. 
 

Temperature monitoring
As mentioned earlier in this article, the majority of the transporters and fleet managers we spoke to do not see additional temperature monitoring as a priority or even a necessity. Those that do not make use of equipment such as Templog, Psion Teklogix or as an integral element of a tracking system appear to be satisfied with the temperature data they can access from the fridge unit. Given the emerging focus on food safety and cold chain standards, the inability to provide comprehensive temperature data in the event of a traceability enquiry may prove to be short sighted. 

Raymond Hoy, Psion Teklogix (Psion), manager says Psion's range of mobile, handheld computing devices are ideally suited to monitor temperature fluctuations from loading to destination. The RFID capable device is known for its ability to accurately capture and "audit" temperature data. Operators are informed of the slightest temperature variations that could cause spoilage during transit. Gaining proper control over the cold chain can save the grower or manufacturer, the transporter and the customer from avoidable costs and losses. This, especially so as properly calibrated temperature monitoring equipment is included in the PPECB cold chain criteria.
 

6 Axle Reefer The proverbial 28-pallet Reefer all too often abused by growers and packhouses when consignments commence the journey above the set point. Fruit coolers receiving shipments before being containerised for export say that less than three per cent of the cold chain problems they encounter can be laid at the door of transporters or their vehicles.

Used Refrigerated Vehicles
Don Vale, the well-known used truck man has a long experience in finding used vehicles that are still value for money. To any operator keen to buy a used insulated vehicle, Vale has the following advice to give: 

• Buy a 28-pallet semi-trailer. Do not buy a refrigerated interlink. There is almost no demand for it and they are not manoeuvrable. 

• The semi-trailer should be made by any of the trailer builders with a good reputation for building a quality product. Serco and Busaf are good sellers. 

• The same thinking applies to fridge units. 

• If possible, buy a unit that was owned and operated by a reputable transporter such as Hestony. 

• Buy in winter. You have a better choice and it will be at a better price. 

• Make sure the side panels and front bulkhead are not delaminated and full of water. 

2007 - What can we expect?
Following good rains in most of the growing areas and the weaker rand, the dominant perspectives voiced by the big Reefer transporters is mainly optimistic. Volumes are likely to be better than this year. The major areas of concern are the fuel price as well as the expected increase in equipment, maintenance and labour costs. They reluctantly accept they have no option other than employing and grooming their own driver trainers in a bid to overcome the acute shortage of trained and experienced, big rig, longhaul drivers.They await with interest the final outcome of the PPECB initiatives in respect of cold chain management and food safety standards so that they can firm up and implement their respective selfregulation procedures. They see as a major challenge the task of keeping costs firmly under control and succeeding against irresponsible transporters that wreak havoc on the industry with their short-term irresponsible interventions. 
 

Fleet managers heading up secondary distribution fleets are comfortable with the forecasts and with the indications that the market is moving steadily towards more multi-temperature vehicles, this especially as the food services industry (FSI) outlets grow in number and size. Many of these stipulate that all their requirements - whether frozen, chilled (fresh) or ambient - be delivered in one truck, preferably once. 

The speed with which this develops will impact positively on opportunities to improve  efficiencies when delivering to FSI and retailers. This is provided that some progress can be made to resolve at least some of the back door problems and more efficient scheduling and routing of vehicles that will lead to bigger loads  and bigger drops. The outlook for the less formalised segment - perhaps better described as the wholesale end of the business - is likely to diminish as more and more people support the supermarkets, convenience stores and the branded franchised outlets. 

Due to the fuel price and other operating costs mentioned before, those in secondary distribution are also fully stretched to keep a firm grip on transport and distribution costs. There is virtually no room for error. 

The DOA needs to become more proactive in getting to grips with whatever constrains the finalising of its programme to certify and control food safety and cold chain standards. The department needs to consolidate and optimise all the resources at its disposal and work together with the PPECB, SARDA and all the other significant roleplayers and stakeholders if we are ever to have the assurance that our efforts to export world class quality perishable products are not in vain and to the detriment of the country's hard won reputation. Fruit exports to the UK and EU is currently a multi-billion rand industry. 

The FSI in general - and the supermarkets in particular - should face up to their responsibilities and take the necessary steps to resolve the back door problems that add unnecessary cost to a broad cross section of fast moving consumer goods and consequently contributes negatively to consumer inflation. Drop the egotistical big bully attitudes and make a real contribution towards working for consumers - yes, that's right, the millions of customers that spend their money daily in supermarkets.