AS THE SUN SETS ON 2011 the trucking industry looks forward to the year ahead notwithstanding the likelihood of ongoing volatility and uncertainty. This especially so, in respect of the strength of the rand, fuel prices and political stability – both locally and abroad. The shaky and stumbling economic recovery in 2011that resulted in some improved volumes. Demand for transport services was in many areas insufficient to cover the rise in transport operating costs. Transport rates remained tight and margins mostly thin.

Transporters and fleet owners coped with fuel prices that reached almost 30 per cent more than 2010 by the beginning of November. The price of tyres and replacement parts along with externalities such as toll fees, vehicle licences, electricity, rates and wages, played havoc with keeping operations out of the red. Feedback from financial institutions, used vehicles dealers and auctioneers confirm the year still yielded a significant number of repossessions and insolvencies. South African shippers, consignors and consignees continue to show scant interest in the real cost of transport. Reports from numerous transporters during the year confirmed little, if any, improvement in traditional delays at the back doors of retailers, harbours and traffic congestion in some key areas, all of which impacts negatively on transport productivity and efficiency.

While “gaaning aan” about the downside of 2011 it would be remiss not to mention the disappointment in the NDOT’s ongoing inability to implement the AARTO Act or communicate a date when it will become effective. After three NDOT Workshops to fashion a new strategy for road freight no decisions have been announced. Let’s not forget to mention the disappointing handling of the Gauteng open road tolling debacle. The delay in finalising the cleaner fuels roadmap hampers efforts to improve fuel consumption and lessen our carbon footprint. The real impact for road transport residing in these and other aspects of government dithering is that they will now be taken into 2012 and probably beyond before they are resolved.

The annual freight logistics surveys such as those undertaken by the CSIR and Barloworld indicate quite clearly the country cannot afford to carry the present cost of road freight transport. Everyone knows that Transnet Freight Rail (TFR) cannot step up to the plate in any meaningful way to take on its rightful role in bulk freight movements aligned to agriculture and fast moving consumer goods for at least another 7 to ten years. Why then can government (NDOT,DTI,DOE) and SOE) get together with the broader transport industry in a meaningful way to resolve the bottlenecks and fast-forward solutions to improve road transport efficiency – the only way in which it can be made sustainable from a cost point of view?

While suppliers and service providers to the trucking industry generally had a better year margins remained paper thin with little room to pass on the ongoing increasing prices of materials, labour and externalities. After discounts and concessions vehicle prices remained relatively steady, however, protracted availability of preferred makes and models and limited access to funding – this especially as it refers to used trucks - retarded a measure of timely vehicle replacements.

Expectations and forecasts for 2012 are generally optimistic in spite of the uncertainties, if not scary possibilities should the EU descend into a deep recession that drags much of the developed world and emerging markets with it. Failure of the Euro is unlikely but certainly not impossible. Any significant downturn in the major European economies would weaken demand for South African commodities, produce and products – with consequent further job losses everywhere.