MAN - obsessed with After-sAles - ExclusivE! We meet the 2020 Dakar Rally winner - Focus on Transport and ...
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ISSUE 4 2020 | R120.00
o n tr an spo rt an d lo gistics
fo c u s o n t ra n s p o rt.co. z a
MAN – obsessed
with after-sales
Exc lus i v e !
We meet the 2020
Dakar Rally winner
Coro n av iru s Risk
is here managem ent
Focus on keeping your In the Covid-19 era
truck drivers healthy
?? ?? ?? ?? ?
Ask us about the loads of
hardly used vehicles with loads
of potential now available in
our Used Trucks Division.
Go to www.udtrucks.com/southafrica,
to locate your nearest dealer.
Call our 24-Hour Roadside Assistance 0800 008 800
(in breakdown situations)
Going the Extra Mile
b FOCUS ON TRANSPORT
ISSUE 4 2 0 2 0
contents
PAGE PAGE PAGE PAGE
2 4 8 14
I F W E FA IL , O UR CA N O N E STO P KEEP YOUR TRUCK FACE TO FACE
COU N TRY D IE S B O R D E R P OST S DRIVER HEALTHY Each month, we interview a
The coronavirus is here. Amid WO R K ? Irrespective of how qualified captain of our industry. This
all this hysteria, one thing Beitbridge is set to follow drivers are, they cannot month, we chat to Roberto
is missing: no one is talking in Chirundu’s footsteps as a continually drive a vehicle if Cortes, CEO of Volkswagen
about the importance of our One Stop Border Post. Can they are unhealthy. Caminhões e Ônibus.
industry. this work?
PAGE PAGE PAGE PAGE
16 24 27 30
LOG G I N G I N TO T H E TELEMATICS IN CO NVE R SAT IO N GO L DE N M O M EN T!
FU T U R E SOLUTIONS FOR WIT H A NDR E Y Recently, we travelled
The time of autonomous EVERY OPERATOR K A RGINOV to the Spanish port city
vehicles is nigh. We discover With all the benefits it Russian rally raid driver of Bilbao for the global
that the forestry industry offers, on-board telematics Andrey Karginov took top debut of MAN’s new truck
is also jumping onto this has become a must-have honours in the 2020 Dakar generation and a seat at
bandwagon. for transport operators. Rally in the truck category for the highly sought-after VIP
FOCUS investigates. Kamaz. We meet him. event celebrating its arrival.
Published monthly by Charmont Media Global EDITORIAL DIRECTOR PUBLISHER
COVER Unit 17, Northcliff Office Park, 203 Beyers Naude Charleen Clarke Tina Monteiro
MAN Automotive Drive, Northcliff, 2195. Cell: 083 601 0568 Cell: 082 568 3181
P O Box 957, Fontainebleau, 2032, South Africa charleen@focusontransport.co.za tina@focusontransport.co.za
is determined to Tel: 011 782 1070 | Fax: 011 782 1073 /0360 womanonwheelsza
remain right on
top of the after-
sales game. See SUB-EDITOR ADVERTISING SALES © Copyright. No articles or
page 12 Jeanette Lamont Atish Ramachul photographs may be reproduced,
jeanette@charmont.co.za Cell: 061 320 2210 in whole or in part, without specific
atish@focusontransport.co.za written permission from the editorial
TECHNICAL CORRESPONDENT director.
REGUL ARS Vic Oliver Diana Gouws
Cell: 083 267 8437 Cell: 082 801 8506
2 Steering Column voliver@mweb.co.za diana@charmont.co.za
4 Driving Africa CONTRIBUTORS CIRCULATION MANAGER
Mike Fitzmaurice Bev Rogers charmont
6 Firm Advice
2020
media global
Peter Lamb Cell: 078 230 5063
8 Vic’s View Yasmine Wilson bev@focusontransport.co.za
Vaughan Mostert
10 Hopping Off DESIGN AND LAYOUT
Nelio da Silva Follow us
30 Global Focus News facebook.com/focus_mag
nelio@focusontransport.co.za
34 Short Hauls twitter @FOCUSmagSA
instagram @focusontransport
PRINTING
35 Naamsa Numbers Camera Press
Find us on LinkedIn
FOCUS ON TRANSPORT 1
st ee r i n g colu m n
@womanonwheelsza
C H A RLEE N C L A R KE is editorial director of FOCUS. While she is based in Johannesburg, she spends a considerable amount of
time overseas, attending international transport events – largely in her capacity as associate member of the International Truck of the
Year Jury.
If we fail, our
country dies
As I write this story, there It is going to be up to the van and The many vans and trucks that are
are 230 051 confirmed truck suppliers to ensure that they on our roads could break down. What
coronavirus cases
can deliver. The National Association is happening at workshop level? Are
worldwide and 9 388
of Automobile Manufacturers of South technicians going home because
deaths. South Africa’s
infection rate – at 150 – Africa (Naamsa) has said that all local they’re petrified of catching the virus?
still seems quite small original equipment manufacturers Are companies coming up with plans
( thank goodness). I have “will continue to work very closely to ensure that trucks and vans can
heard lots of hysterical with their supply chain component always be returned to the road?
rantings and I’ve manufacturers and partners to monitor What about the people within our
encountered lots of panic- developments locally and globally”. industry (and others for that matter)
stricken people. Amid all It maintains that there are getting to work? The Southern African
this hysteria, one thing is currently no planned disruptions to Bus Operators Association (Saboa)
missing: no one is talking
any manufacturing lines across the says it is working with the National
about the importance of
country. When it comes to the truck Department of Transport (DoT) to
our industry
plants, we hope that this is a situation develop a workable Public Transport
ntil now. I’m going that continues. Of course, it will be Plan that is focused on ensuring
to talk about how up to the local councils (God help us) the health and safety of the public
U important and how
utterly invaluable our
industry is right now.
to ensure that the new vehicles are
registered and declared roadworthy.
transport community.
“In this regard, we have made
If we don’t stand
together and “deliver the goods”,
chaos will ensue!
In light of the Covid-19 pandemic,
Finance Minister Tito Mboweni has
said that all efforts should be geared
towards ensuring that the already
weak domestic economy “does not
grind to a halt”.
I concur (although I’m not really
seeing any efforts being made, to be
honest). However, closer to home, I When new products aren’t available detailed proposals to the DoT to
think it’s utterly essential for us to band (and we suspect that this could be the try and mitigate the risk that public
together as an industry and – quite case), it will be up to the vehicle hire transport presents in spreading the
frankly – do our jobs. companies to ensure that they will be coronavirus,” its spokesman tells us.
Let me explain. As thousands of able to meet customer demand. Saboa is confident that the DoT will
people start self-isolating or avoiding Truck and van drivers face a massive take the necessary action to ensure
all social contact, online shopping will challenge; they cannot work from the safety of all commuters. We hope
grow. Those goods will need to be home. Coincidentally, Vic Oliver wrote that the organisation is right.
delivered by trucks or vans. So, too, about driver health long before the We don’t know how the scenario
will the respirators that we order from coronavirus pandemonium hit town. will play itself out. There’s only
goodness-knows-where. The trillions of (You can find his article on page eight one thing that we can say: if we, as
hand sanitisers and masks will require of this issue.) What are companies an industry, drop the ball then
transport. So, too, will the medical doing to ensure that their van, bus people will die. So, too, will our
supplies for those people who are and truck drivers remain healthy and country’s economy. We cannot let that
hospitalised or are recovering at home. coronavirus free? happen. F
2 FOCUS ON TRANSPORT
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FOCUS ON TRANSPORT 3
d r ivi n g A fri ca
M i ke F i t zm aur ic e is the CEO of the Federation of East and Southern Africa Road Transport Associations (Fesarta). He has 42
years of experience in the transport and logistics industry with several major companies in South Africa, as well as overseas exposure
with some of the leading transport companies in six European countries. He runs Transport Logistics Consultants, which he established
in 2004. In May 2015 he became CEO of Fesarta.
One Stop Border Posts:
can they work?
Bei tbr i dge i s set to fol low • Massive time reductions in duplication of weighing. As a result,
i n Chirundu’s footst eps as excess of 50 percent at the newly trucks are weighed several times
a On e Stop Bor d er P ost i f implemented OSBPs; along the corridor;
r e levant chan ges are not • Introduction of the Single Customs • The SADC has not yet introduced
im plem ent ed
Territory system in all EAC countries a single insurance system that is
n a recent media - payment of duties at point of origin; acceptable to all member states;
release on February and • Multiple and exorbitant cross-border
I 9,
of
Aaron
the
Home
Minister
Affairs
Motsoaledi
• A regional Bond being phased in to
replace the National Transit Bond
system.
charges on entry to each SADC
member state along the corridor;
• Massive increase in cross-border
announced that times in excess of 50 percent, due
Beitbridge – the busiest border post Why can’t we get this right in southern to ongoing customs ICT system
in southern Africa – would operate Africa? Again, it’s quite simple: downtimes, chaotic procedures
as a One Stop Border Post (OSBP) and processes, and lack of traffic
from 2024. It could, however, follow The principles for failure: management skills resulting in
in the footsteps of Chirundu, which • No political will among the Southern queues at the border posts in excess
became the first OSBP in Africa in African Development Community of five to 30 km at times;
December 2009, if relevant changes (SADC). Every member state has its • No single window system that links
are not implemented. own agenda; all customs ICT systems along the
Hailed as a success and promoted
as the iconic OSBP in Africa, Chirundu
OSBP has failed miserably and no
longer functions as an OSBP, with
cross-border times in excess of two
days. This is unlike the East African
Community (EAC) countries where
more than 10 OSBPs developed
since 2014 have shown drastic time
reductions of up to 80 percent.
What has happened in the EAC
region that we can’t get right in
southern Africa? It’s quite simple:
The principles of efficiency: • No funds for the development of full length of the corridors; and
• Total commitment and cooperation OSBP infrastructure. As a result, • The SADC has not yet introduced
between heads of states in the EAC we are stuck with antiquated a Regional Bond system to replace
region; infrastructure that does not support the cumbersome outdated National
• The rapid implementation of OSBPs; streamlined procedures and Transit Bond system.
• The reduction in the number of processes, and that is not conducive
weighbridge stations and police to fast track traffic flows; The Beitbridge OSBP is unlikely
checkpoints along the corridors; • No reduction in the number of to succeed without the changes
• A single permit and a yellow card weighbridges or police checkpoints implemented by the EAC. Can it be
insurance system recognised by all in the region. The number of fixed before it’s too late? Yes, it can,
member states; police checkpoints has increased and this will be discussed in Driving
• One cross-border charge or fee and weighbridge systems are Africa in the next issue of FOCUS on
applicable in all member states; antiquated and not linked to avoid Transport. F
4 FOCUS ON TRANSPORT
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FOCUS ON TRANSPORT 5
fi rm a dv i c e
@NLawGlobal
Pe ter La mb is a director in the Norton Rose Fulbright admiralty and shipping team, based in Durban. A qualified
attorney, Lamb has an LLM in shipping law from the University of Cape Town. Associate designate Yasm i ne Wi lson
is a shipping and logistics lawyer based in Durban. Her areas of expertise include international trade, admiralty litigation,
customs and excise, as well as advising on charter parties, bulk cargo purchase and sale agreements.
Risk management in
the era of Covid-19
The world i s cur r e nt ly makes it objectively impossible for Insur a nc e
dom i nated by conce r ns one or both of the parties to perform Insurance is a risk management
a round COVID-19 , t he their obligations under the contract. tool often relied upon in these
effects of whi c h wil l These specific circumstances and circumstances. Participants have to
conti nue to be fe lt for
criteria need to be met for force look to their insurance policies to
some ti m e. From a r is k
majeure to be relied on to suspend ascertain whether or not the loss is
managem ent per s pect ive ,
the logi sti cs a nd s upply obligations under a contract. Relying covered. Whether a claim properly
chai n sectors m us t on force majeure to suspend or lies under a policy will depend on the
consi der the i mpact of cancel a contract, but failing to meet circumstances and the wording of
COVID-19 on the ir cur r ent these criteria, could result in specific that policy.
a nd future bus ine s s performance or damages claims Generally speaking, however, the
operati ons being brought against that party. claims will not lie under a typical
Participants have already marine insurance goods policy
n the event been affected by Covid-19 with concluded on Institute Cargo Clause
that disruptions cancellation of sales contracts, (A) or similar terms. Participants may
I caused by Covid-
19 make it difficult
for participants in
supply chain and shipping contracts
and/or the late delivery of cargo.
In many instances, the loss will lie
also look to their liability or business
interruption policies.
The analysis of these policies is
the logistics and where it falls. beyond the scope of this article. Save
supply chain sectors to meet their In most cases, parties to these to say that there is no general rule that
obligations, will Covid-19 constitute contracts will not have claims against exists as to whether or not cover lies
a “force majeure” event under South one another for non- or late delivery under those policies; each case will
African law? – either because their contracts have to be determined on its merits.
A force majeure is an act of God, or contain appropriately worded force
man, that is unforeseeable and out of majeure clauses, or because their Fut ur e
the reasonable control of one or both losses are purely consequential and Participants in the logistics and
of the parties to a contract, and which not recoverable under the contract. supply chain sectors need to assess
their risk by reviewing contractual
arrangements, and by ensuring
that their force majeure clauses
are appropriately worded in future
contracts.
Losses arising out of a pandemic
often far exceed the value of the
cargo concerned, are unknown at
the time of negotiating the insurance
policy, and are, in effect, uninsurable
in the insurance market.
The best risk management tool is
to reconsider existing sale and supply
chain contracts and mitigate these
risks. If the contract does not offer
sufficient protection, then the party
must either cancel the contract (if at
all possible) or accept a potentially
uninsurable risk. F
6 FOCUS ON TRANSPORT
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0 t h e A x le
a r c h 202
As from M
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w i l l f e a tur
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FOCUS ON TRANSPORT 7
vic’ s v ie w
VIC OLIV ER is one of this country’s most respected commercial vehicle industry authorities, and has been in this industry for over 50
years. Before joining the FOCUS team, he spent 15 years with Nissan Diesel (now UD Trucks), 11 years with Busaf and seven years with
International. Do you have a comment or thought you would like to share based on this column? Visit www.focusontransport.co.za and
have your say!
Keep your truck
driver healthy
Early si gns of r is ing entails keeping a continual watch regular intervals; stopping smoking;
operati ng costs for on performance and behaviour. being physically active, for example,
heavy vehi cles in 2020 a r e Erratic fuel consumption is normally walking for least 30 minutes every
clearly evi dent. T ruc k a very good indicator that a driver is day; and strictly following the
and bus owners t he r efor e
losing focus and concentration while instructions and advice of medical
need to take act ion to
driving, due to a health problem. doctors and dieticians.
control and minim is e t he s e
costs The tell-tale signs that could Hypertension is the other main
indicate that a driver may be suffering health problem affecting truck
oad transport from diabetes include that he or she drivers. Commonly known as the
operators cannot may have a continual thirst and may silent killer, it is hard to detect until
R always
rising
their
pass
costs
customers.
on
to
need to urinate frequently. They might
also be tired all the time, overweight
and experience blurred vision.
it is properly measured. A driver
cannot afford to have a heart attack
or a stroke behind the wheel. It
Therefore, the only
way to stay ahead and continue
to make a fair profit is to reduce
operating costs.
The best people to reduce vehicle
operating costs are the men or
women behind the wheel, as they
have complete control of the vehicle
once it leaves the yard. Drivers have a
major influence on fuel consumption,
tyre wear, brake and clutch life, as
well as all the other variables that
influence the maintenance and
repair costs of a vehicle.
However, even highly qualified
and experienced drivers cannot
continually drive a vehicle in a
professional manner that will reduce
costs if they are not fit and healthy. Drivers who have been identified is, therefore, vital that the blood
Ensuring that drivers stay healthy as having diabetes should not pressure of all drivers is regularly
should, therefore, be a priority in any be dismissed, provided that the measured.
transport business. condition is controlled and a system The message is clear: for trucking
Truck drivers should be tested is implemented to track their health. companies to survive and make a
annually to ensure that they are not Wherever possible, however, they fair return, it essential to focus on
suffering from the two major health should be removed from long- the reduction of operating costs,
problems affecting drivers – diabetes distance routes and allocated trips and taking care of drivers is the key
and hypertension. Both these health with shorter distances. factor in reducing these costs. It is
conditions are extremely dangerous They should also be encouraged worth remembering that, in long-
for truck drivers, truck owners and to take steps to help them to distance operations, operating costs
other road users. manage their health. These include can account for approximately 45
Good management of drivers eating healthy foods every day at percent of total costs. F
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FOCUS ON TRANSPORT 9hopp in g off
V au g h an M ost e rt lectured on public transport issues at the University of Johannesburg for nearly 30 years. Through Hopping
Off, Mostert leaves readers with some parting food for thought as he continues his push for change in the local public transport industry.
CAR SALES FIGURES –
WHO CARES?
We sh ould not a l low
ours elves to be d i stracted
by i rr ele vant stati stics
when i t come s to pr ivat e
motori ng
or several years we
have been fed a diet
F of monthly sales
figures, such as: “The
Collida is up by 2,6
percent. The Crashida
is down by 0,7 percent. In February,
the Bumpa outsold the Klonka for the
first time since June last year.”
Does that really tell us anything? I that could do with some investigation. hear everyone saying that this would
don’t think so, but some people do. The economists could try to figure be a recipe for more corruption?
Last month, Mercedes-Benz joined out how much of that total spend Perhaps, but what is the alternative?
BMW in stopping the reporting of goes on the journey to work. My Reading between the lines of
monthly sales figures. This led to a guess is that R600 billion is spent on the interim report put out by the
gripe from one journalist, who called cars each year, while the journey to Competition Commission in February,
it a “blow to the accuracy of official... work accounts for 50 percent of that which deals with competition in the
figures” and noted that “monthly sales amount (R300 billion). Compare that public transport industry, it is clear
information is an important tool for with the approximately R90 billion that the Department of Transport has
economists, providing a snapshot that goes on minibus taxis, which failed the country – at both central
of consumer confidence, as well as (I’m guessing again) carry at least as and provincial government levels.
trends in credit demand, affordability many, if not a lot more people to work Most of the findings of the
and consumer spending”. than are transported by cars. Competition Commission are already
That may sound convincing, but South African economists need well known. These include the
confidence and affordability are to look far more closely into this, disorganised state of the minibus-
misused words that fall within the because poorer people (minibus-taxi taxi industry, the failure of bus rapid
field of psychiatry, not economics. users) pay unsubsidised fares, while transit schemes, the high subsidy
That leaves us with credit demand richer people (car users) benefit from paid to the middle-class users of the
and consumer spending, which, when fairly big subsidies to car makers and Gautrain and the need for a common
used by themselves, mean little. a low rate of tax on fuel. ticket system.
Economists should rather be By imposing low rates of fuel tax, However, the report fails to address
working out how much South Africans South Africa is acting as though it is the distortion in competition between
are actually spending in total on motor an oil-producing country. However, private and public transport, caused
cars each year, compare this figure such countries feel the pain when oil in part by low fuel taxes and the
with the country’s gross domestic prices go up. subsidy to the motor industry through
product, and follow up by comparing Now that the price of fuel in South the Motor Industry Development
that percentage with what is spent in Africa has come down slightly, we Programme.
other countries. should be building up a “war chest” to Until issues such as these are dealt
It won’t be easy, because there are cope with possible big price increases with, it really doesn’t matter whether
very few accurate records of how further down the line, and to assist the you think a Bugatti is more affordable
much is spent on cars, but it’s an area taxi industry to lower its fares. Do I than a Lamborghini. F
10 FOCUS ON TRANSPORT? ??????????????
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FOCUS ON TRANSPORT 11cove r story
MAN – with you
all the way
Se asoned t ruc ker s a round t he glo be h av e r eg u l a r ly co mme n t e d t h at t h e sa l e s
departm ent s e l l s t he f ir s t unit a n d t h e a f t e r - sa l e s se rv i c e e n su r e s t h e sa l e s
that follow. MAN Autom ot ive is ve ry mi n df u l o f t h i s – w h i c h i s w h y t h e co mpa n y i s
determine d to d e l ive r t he ve ry be st a f t e r - sa l e s se rv i c e i n t h e i n du st ry
t MAN Automotive, the last three years kits, refurbished parts options and special rates for old-
A
have seen a multitude of initiatives, which timer trucks (over six years of age).
confirm to fleet operators that the company MAN’s head of after-sales services – Eren Gunduz – who
is right on top of the after-sales game. also happens to head up the brand’s new vehicle sales
These range from a variety of extended efforts is clearly upbeat about the company’s progress:
factory warranties and original equipment manufacturer “MAN’s customer satisfaction ratings have improved
(OEM)-supported repair and maintenance (R&M) contracts dramatically when looking at the Competitive Customer
to awareness campaigns for genuine MAN parts. Satisfaction survey results as co-ordinated by DataTrack
They also include professionalising the Mobile 24 (formerly ScottByers).
emergency response call centre, guaranteeing cross- “Our quarter-on-quarter performance in after-sales
border support in neighbouring countries, vehicle-off-road service from the first quarter of 2017 to the fourth quarter
(VOR) escalated decision-making, major service job repair of 2019 has shown a significant upward trend, for which we
12 FOCUS ON TRANSPORTcov e r s tory
With the MAN R&M contract,
customers get basic MAN Telematics
included free of charge. “This means that
they get satellite tracking with stolen
vehicle recovery, MAN ServiceCare
proactive pre-service advisory calls,
basic fleet management reports for
vehicle and driver performance, as
well as the traditional technical vehicle
servicing coverage – all as part of the
deal,” explains Gunduz.
Central to MAN’s various parts and
service sales and marketing efforts are
two young professionals – Anton Fuchs
and Pieter Stander. “We are ecstatic that
very large private capital dealers, who
also have investments in other brands,
have told us that no other automotive
ABOV E : The customer is central to all of MAN’s
activities; staff members are committed to providing
exceptional after-sales service.
RIGHT : MAN’s customer satisfaction ratings
have improved dramatically when looking at the
Competitive Customer Satisfaction survey results as
coordinated by DataTrack (formerly ScottByers).
wish to thank our customers and front-line
teams,” he enthuses.
It is, arguably, also this customer
response in satisfaction levels that has
enabled MAN Automotive to almost
double its extra-heavy market share over
the last four years – moving from just over
eight percent of the extra-heavy sales
pool to just shy of 14 percent of the South
African market. brand has offered an equivalent range and level of dealer
“Clearly MAN’s product performance has found favour support for after-sales services,” comments Fuchs.
with more and more customers. Furthermore, our range “Having spent a long time in the local industry in various
of after-sales services on offer is talking to uptime and roles thus far, I am confident that our suite of dealer support
reduced total cost of ownership (TCO). services and activities are undoubtedly the benchmark in
“What should also be noted is that the 2019 market-share the South African commercial vehicle industry,” elaborates
result came in a year where we no longer had access to Stander.
budget products such as CLA and Volkswagen. (They were Looking forward into 2020, the MAN after-sales leadership
no longer available to the South African market, due to team is keen to have even greater staff training delivery
strategic decisions taken at group level.) These accounted compared to 2019 (which showed record levels of training),
for approximately 300 sales in 2018,” explains Gunduz. hands-on support to fulfil the required dealer standards
He believes that the single biggest success in 2019 was and the continued roll-out of the authorised MAN panel
an 88-percent penetration rate of sales with R&M contracts. shops, which started in 2019.
“The only customers who do not avail themselves of “Clearly, Team MAN is showing extraordinary after-sales
our R&M contracts are those who run utilisations where support for our customers – combining services that
R&M-type contracts do not make sense, or those few optimise the performance of truck, driver, support and
customers who are what we term ‘self-servicing operators’. management information – all with the objective of uptime
These companies have invested extensively in their own and reduced operating costs. This is a welcome work ethic
workshop facilities and personnel, due to the demands of and set of initiatives at a time when we definitely need all
logistics contracts,” says Gunduz. hands on deck,” concludes Gunduz. F
FOCUS ON TRANSPORT 13?? ?? ??to
face ?? ?fac e
Face to face with
VW’s Roberto Cortes
Each mont h, CHARLEEN CLAR K E goe s fac e to fac e w i t h o n e o f t h e ca p ta i n s o f t h e
transport i nd us t ry. T his m ont h, s h e c h at s to Ro be rto Co rt e s, C EO o f Vo l k swag e n
Ca m i n h õ e s e Ô n i bu s
fter a long recession, the Brazilian market Yes, we are. It is the first 100-percent electric light truck in Latin
A
started to recover in 2017. Brazilian vehicle America with zero CO2 emissions. Volkswagen Caminhões e
manufacturers went on to record robust Ônibus’ global development centre, headquartered in Brazil,
growth in bus and truck sales in 2018. And investigated and applied the best solutions available in the
you’ve experienced more of the same in world and locally to satisfy our customers’ needs for low
2019. In the first 11 months of 2019, the emission vehicles that can run in emerging countries. The
truck market grew by 18 percent while the bus market e-trucks and the e-Consortium to produce them form part
grew by 13,7 percent. How has Volkswagen Caminhões of a R$1,5 billion (R5,27 billion) investment.
e Ônibus fared? I see Mercedes-Benz has pipped you to
the market share post. This cannot be a situation that I believe that Ambev Brewery – owner of brands such
you enjoy? as Skol, Brahma, Antarctica and Guaraná – has already
We have maintained our market share of 27 or 28 percent. placed an order for these trucks. Is there interest from
We give priority to financial results; this is far more important other companies, too?
to us than market share – we focus first on profitability and Ambev will acquire 1 600 of these trucks by 2023. This
customer satisfaction. is the world’s largest order for e-trucks. Around 50 other
For sure, nobody likes to lose ground or market share – customers have already registered their interest in the
and the same applies to our company, but losing one or electric variant of the city delivery truck.
two points of market share is not the end of the world. We
need to operate profitably. It’s also important to bear in mind I’m assuming that you’re trying to make these e-trucks
that we have to fund our investments; we are completely comparative with the price of a diesel truck when it
self-funding. comes to the total cost of ownership (TCO), correct?
Yes. Right now, the e-trucks are fairly expensive. However,
Speaking of investments, the big news (and a major initial price is one thing. We know that TCO is important
investment) is your continent’s first electric city delivery and we believe that they can compare favourably to diesel
truck, the e-Delivery, which will roll off the assembly line trucks. Energy costs drop by 70 percent with the electric
in 2020. You must be very proud of this development? trucks and maintenance costs drop by 50 percent. We are
14 FOCUS ON TRANSPORTfac e to face
also considering a rental scheme for the e-trucks – so the equipment, and supplies electrical energy to clients; CATL
customer won’t have to worry about the initial purchase and Moura are responsible for distribution, management
price. and maintenance of the battery packs; and Bosch, WEG
and Semcon are responsible for developing and supplying
We visited your factory in Resende some years ago and components.
we were impressed at the way that it works. We have We were the first company to demonstrate and test
yet to see another factory like it – where suppliers share an electric-powered truck in Brazil under real operating
the responsibility for assembling the vehicles with your conditions. And now, with the worldwide announcement
company. You refer to an e-Consortium for production of of the e-Consortium business model, we are joining forces
the e-trucks. Will it work in a similar way? with companies that are leading the way in developing
Yes. The e-Consortium will operate in the same fashion. The electric mobility.
advantages of our production concept include lower fixed
costs and ensure profitability even at comparatively low Could you sell these electric trucks in South Africa?
utilisation rates. Production can be adapted more flexibly South Africa is a priority market for us. We are producing the
in response to differing market developments that are Constellation in Pinetown together with our MAN colleagues.
common in Brazil. It’s the ideal factory concept for emerging Our objective is to offer new buses and trucks to the South
markets because the equity ratio is lower, so target returns African market. For now, we don’t have right-hand drive
can be achieved more quickly than in conventional factories. e-Delivery models. We are, however, analysing the market.
The e-Consortium will cover all aspects of electric vehicle
manufacture and operations, from developing components You’re achieving only single-digit monthly sales for
locally to setting up the infrastructure needed to produce the Constellation in South Africa. This must be a very
them, covering the entire useful life cycle of the vehicles, disappointing situation for you?
including disposal of the batteries at the end of their lives. Our main target is to provide the right truck for each market
The e-Consortium partners and suppliers include in which we compete. That’s why we are a leader in Brazil
Siemens, which provides the charging infrastructure and and in most other markets in which we compete.
We are working hard to
understand and meet the
needs of South African transport
operators. For sure we are not
happy with the current volumes
in South Africa. If we are one of
the biggest volume producers
in 30 markets, why don’t we
have the same situation in South
Africa? We are working hard to
change this situation.
Until recently, we were
depending a lot on Brazil. With
the crisis, we realised that we
could not rely on our home
market. We are putting a lot of
money into the development of
new products for markets other
than Brazil. Export markets –
including South Africa – are very
important to us.
Finally, what has Traton meant
to Volkswagen Caminhões e
Ônibus?
We are living in a world that
requires a lot more transformation than in the past. We
have to think about electrification, autonomous driving,
connectivity and digitisation – to name but a few things.
We are putting a lot of money into Operating alone, we would be way behind when it
comes to those technologies. By being part of Traton,
the development of new products we have access to all these new technologies overnight.
for markets other than Brazil. There are lots of synergies with MAN and Scania that can
be explored. Without these synergies, we would risk our
future – because we would come with new technologies,
but only much later. F
FOCUS ON TRANSPORT 15Fore stry
Logging into
the future
The ti me of autonom ous ve hicl e s is nig h w i t h n e wsfee ds o n t h e se se l f - dr i v i n g mac h i nes
increasi ng each ye a r . We d is cove r t h at t h e fo r e st ry i n du st ry i s a l so j u mp i n g o n t h i s
ba n dwag o n
istory was made last year when the electric vehicles in our ambition to lead the transition to a
H
first cab-less electric truck – Einride’s sustainable transportation system. With the Einride timber
autonomous truck, called the T-pod – pod, we’ve created a vehicle that can withstand the rigours
drove on a public road, as was reported of a demanding environment.”
by Charleen Clarke, editorial director of The timber pod, like its road-freight counterpart, has no
FOCUS, in Issue 7, 2019. driver’s cab – making it smaller and lighter. This, in turn,
“The ground-breaking event took place at DB Schenker’s provides an increased loading capacity, lower production
facility in Jönköping, Sweden,” she wrote. “The T-pod will and operating costs and optimised energy consumption,
be used to transport goods between a warehouse and allowing the Einride timber pod to run solely on its
terminal at the facility.” batteries – even in difficult environments.
This came about after the Swedish Transport Agency Falck adds: “The driver’s cab is what makes trucks
issued the companies with a permit allowing the T-pod to expensive to produce, and having a driver in the cabin
drive on a public road (within an industrial area) between is what makes them expensive to operate. Remove the
a warehouse and a terminal. The permit is valid until cabin and replace the driver with an operator, who can
December 31, 2020. remotely monitor and control several vehicles at once, and
The 26-t truck has a top speed of 85 km/h and a costs can be reduced significantly. In addition, operating
200-km range. It is powered by a 200 kWh battery. “While a vehicle from a distance allows for a much better
it operates without a driver, it can be supervised and working environment, as has already been demonstrated
remotely operated by a human being. That person can be in industries such as mining.”
hundreds of kilometres away,” Clarke pointed out. Einride hopes to introduce the timber pod to public
Einride’s plans include more than the road- roads during this year, as several major global companies
freight industry. It has developed a concept vehicle have expressed interest in it.
that incorporates some off-road capabilities and is Einride isn’t the only company taking the autonomous
designed to navigate forest roads while transporting route, as Svenska Cellulosa AB (SCA) – a Swedish timber,
timber. pulp and paper manufacturer – is participating in a
Robert Falck, CEO of Einride, points out: “Einride is comprehensive project to develop autonomous forestry
constantly pushing the boundaries of autonomous and all- machines.
16 FOCUS ON TRANSPORT? ??????????????
Volvo Trucks. Driving Progress.
FOCUS ON TRANSPORT 17For estry
Dubbed the Auto2 project, the Swedish forestry industry forestry industry leads the world in developing equipment
(including parties from universities, IT companies, forestry for harvesters and forwarders, so I really believe in this.”
machinery manufacturers and forest management He highlights that SCA is participating as a financier and
companies) wants to develop autonomous forwarders – in the reference group, where it contributes knowledge
the machines that carry the harvested timber to the forest and offers test environments in its forests. The industry,
road. along with Vinnova (Sweden’s innovation agency),
Running from December 2018 until the end of this year, has financed Auto2 with SEK 20 million (more than
Auto2 began by focusing on the machines, themselves, R33 million).
A B OV E : Einride’s timber pod has no driver’s cab, which provides increased loading capacity, lower production and operating costs as well as
optimised energy consumption.
giving them the capability to plan their driving, move The Auto2 project’s ultimate goal is to have cab-less
through the terrain and ensure that there is a safety zone vehicles. “Without a cab the machines will be lighter and
around the machine to prevent injuries. more efficient because they’ll have more room for timber,”
“The long-term vision is entirely self-driving machines,” Bergman emphasises.
explains Magnus Bergman, head of technology and “Moreover, the machine operators will be working in a
operational development at SCA. “The area of autonomous much better environment, where the risk of accidents such
vehicles is exciting, but also a tough development area, as trips and falls is drastically reduced,” reduced. It may
because the forest environment is very complex.” also be easier to recruit new operators when they know
He adds that the question of safety is of major concern, they can work with their colleagues from an office, instead
as harvesting areas aren’t enclosed. “What happens, of working alone out in the forest.”
for example, when a person or an animal enters the Who knows, adverts for commercial vehicle operators
work area? Such issues and many more need to be might soon read “must be proficient with a joystick and a
resolved,” Bergman continues. “However, the Swedish good listener”. F
18 FOCUS ON TRANSPORToperator p rof ile
Scania for
the long haul
Scani a i s a r e nowne d s uppl ie r of lo n g - h au l t ru c k s. L i t t l e su r p r i se t h e n , t h at w hen
Matumi F r e s h Logis t ic s – a s up p l i e r o f f r e sh f ru i t a n d v eg e ta bl e s to c u sto me rs
througho ut S out h Af r ica – wa nte d f u e l - eff i c i e n t, r efr i g e r at e d lo n g - h au l t ru c ks , i t
w e n t t h e S ca n i a ro u t e
ocated in the verdant province of the Scania trucks have brought the company’s operational
L
Mpumalanga, Matumi Fresh Logistics costs down significantly.
is dependent on an efficient cold chain He explains that the older version (PGR) averaged
to deliver to its 90-plus locations. The 2,47 km/l, whereas the newer models are doing
company has a mixed fleet of 23 vehicles, 2,79 km/l, making them 11 percent more efficient. “This
ranging from small delivery vans to bigger may not seem a big amount, but over a year the saving is
long-haul trucks. significant,” Wood stresses.
MD Nick Wood tells FOCUS that after having been in Scania was the first manufacturer to offer a three-year
business for 25 years, he took over the fruit and vegetable repair and maintenance (R&M) package as standard on
company from his father and mother (Anton and Marianne all new long-haul and distribution trucks. Wood says that
Wood). He soon realised that it was necessary for the through using Scania’s R&M package, service intervals have
company to have its own transport business. “With the been extended from the recommended 40 000 km to around
responsibility of delivering fresh produce, we couldn’t 52 000 km.
rely on other transport companies, as all the transport is He adds: “The extra 12 000 km between services has
refrigerated,” he explains. enhanced productivity by keeping the trucks on the road
The six-unit, long-haul fleet comprises Scania trucks, for longer periods. The trucks are constantly managing
which were selected for their reliability, fuel efficiency and things such as oil levels and filter condition. As our industry
driver comfort. is seasonal, this has enabled us to budget more accurately.
There are no surprise bills!”
W h y S ca n i a ? He is enthusiastic about the performance of the Swedish
“We needed vehicles we can trust,” Wood emphasises. OEM’s vehicles. He says: “Since we purchased the first Scania
Scania’s reputation and standing made the original equipment truck in 2017, we have had 100-percent uptime and zero
manufacturer (OEM) a natural choice when it came to breakdowns.”
purchasing trucks specifically for the long-haul transportation He says that servicing the trucks “is a real non-event”, as
of fresh produce. they provide alerts and indicate when a service is required.
Wood elaborates: “We had a choice from three top brands, There is the added benefit of being able to book a service at
but Scania’s excellent brand identity — and the fact that it has a Scania Service Centre in any of the major cities along the
been around for about 129 years — were the criteria for my company’s transport route.
first Scania purchase, Wood stresses that buying the Scania trucks has been
Long-haul driver comfort is top-of-mind for Matumi Fresh more than a mere purchase. “The relationship that Scania
Logistics, and Wood notes that the low road noise, which develops with customers goes beyond the purchase. It’s
reduces driver fatigue, the navigational improvements and the entire package it offers, from in-house finance to
the spaciousness of the G460 6x4 cab, are among driver servicing, that makes it such a phenomenal company.
benefits that influenced his purchase choice. Scania takes all the stress out of owning a fleet,” he
He adds that, over the years, by reducing fuel consumption, concludes enthusiastically. F
FOCUS ON TRANSPORT 19?? ?? ?? ?? ?
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Businesses need to be able to navigate the challenges
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20 FOCUS ON TRANSPORTWEBFLEET a dv ertor i al
SOLUTIONS: A
STEP ABOVE
THE REST
One could be forgiven for thinking that vehicle tracking systems
on offer by telematics companies are all the same. Telematics
– a method of monitoring a vehicle by using GPS and onboard
diagnostics to record movements on a computerised map – is a
trusted way to supply relevant data to the end user. All available
systems in the market profess to be able to do that. But which
vehicle tracking system can provide data to its customers in a
user-friendly way? Enter WEBFLEET Solutions …
n the interests of keeping it simple, seamless communication
“I
Webfleet Solutions provides data in a user- with the team in the field,
friendly way, via a dashboard that provides helping to streamline
the customer only with the information workflow, thereby keeping
they really want,” explains Justin Manson, customers happy.
sales director for South Africa. “We realise
that every business needs to measure different criteria. For U niq ue telem ati cs
example, we have several customers who require tracking solut i on for g reener drivin g
cross-border, and for them, we charge a fixed monthly Webfleet Solutions allows you to have a simple track and
roaming fee, unlike some who are charging exorbitant trace solution when a Link device is installed, which allows
amounts for this service. customers to track and trace your vehicle and always have
“We offer real-time tracking so that customers can stay visibility over your vehicles. For a more complex solution, an
informed on the location of their vehicles at all times, Eco device can be added to measure fuel consumption as
whilst also providing them with access to real-time traffic can PRO devices to communicate with drivers, in-vehicle
and navigation. What is more, our PRO devices enable training, live traffic routing and orders being pushed to the
communication with the drivers while they are on the road device.
and can even send new orders to update their route,” he
adds. P rofess i onal N avig ation an d Traffic
Avoidance system boosts prod ucti vity
WEB F LEET – F leet O ptim i sat ion syste m “Being stuck in traffic affects worker productivity
ass ists i n plannin g and impacts on your service and planning,” cautions
Order Optimisation is a new feature on WEBFLEET that Manson. “Webfleet Solutions has years of experience
allows the user to optimise their job schedule in just one and provides a complex network of live traffic data and
mouse-click. According to Manson, compared to other advanced algorithms, all working to achieve efficient fleet
optimisation solutions in the market, this particular feature management.
offers basic functionality, providing an easy step up to the “Drivers can rely on TomTom Traffic and be alerted to
more advanced solutions as delivered by their .Connect traffic jams and traffic congestion thanks to TomTom’s
partners that specialise in workflow and order optimisation. trillions of data points collected from hundreds of millions
The advantages? Planning and scheduling become easier of connected devices, which are used with live traffic views
and faster, accurate ETAs are provided to customers, to accurately predict and help avoid traffic.”
drivers are kept on optimal routes, and mileage, admin and The company’s navigation technology is further
fuel costs are reduced, thereby freeing up capacity to take equipped with a database of real driving times to calculate
on more jobs. the fastest route, locate speed cameras and safely arrive
Connecting to the WEBFLEET solution is easy with a at driver terminals, thereby vastly contributing towards
WEBFLEET PRO Driver Terminal. This one system supports road safety. F
FOCUS ON TRANSPORT 21?? ?? ?? ?? ? 22 FOCUS ON TRANSPORT
? ?????????????? FOCUS ON TRANSPORT 23
?? ??
Fl ee??
t ??
manag
? e m e nt
Telematics
solutions for
every operator
Wi t h all t he ben ef its it offers , on- boar d te l e m at i cs has beco me a must-
have for transport op erators. M A R I S KA M O R R I S i n v est i g at e s te l e mat i cs
solut i ons and so m e of th e lat e st pro ducts
echnological advancements in the transport platform can help combat this risk with real-time and
T
industry have enabled operators to access historical tracking and a wireless back-up recovery device,
more information about their vehicles, routes which is vital in combatting vehicle theft and hijackings.
and behaviour of their drivers than ever Other solutions from the telematics company include 24/7
before. With this knowledge, it is possible monitoring of triggered driving events (such as speeding
for fleets to run more efficiently, for downtime to be limited or harsh braking) and alarm notifications, such as power-
and for transporters to ensure that cargo arrives safely. down alerts and panic buttons, in order to increase safety
As Andiswa Nyembe, public relations and for both drivers and valuable cargo.
communications specialist at Netstar, explains: “We are These benefits are available to fleets and businesses of
living in an age where data is king and access to ‘anytime, all sizes, as Justin Manson, sales director for South Africa
anywhere’ information is an expectation from both for Webfleet Solutions, a division of Bridgestone, points
consumers and businesses. Telematics is the vehicle used out: “Telematics solutions can benefit any business from
to optimise big data for more effective fleet management. small to large enterprises. These solutions enable transport
“Through telematics, fleet owners can, for example, operators to manage their fleets from start to finish.
monitor driver behaviour, optimise fuel spend, improve “Webfleet Solutions gives truck owners the ability to
route planning and set up predictive maintenance alerts.” always know the location of their vehicles, to communicate
Many telematics solutions also offer important safety with drivers and to provide in-vehicle training – all of which
features – an essential component when considering the enable the workforce to be more efficient and to better
tremendous loss of income due to hijackings. manage vehicle costs.”
Henry Smith, fleet sales director for MiX Telematics
Africa, points out: “Fleet vehicles are easy targets for truck W h at to look for
hijacking syndicates, due to their valuable cargo. As a Every business will have its own unique challenges.
result, truck hijackings currently cost the South African Fortunately, there are many options from which to choose.
economy an estimated R3 billion a year, according to the “Each business has different needs. A telematics
South African Insurance Crime Bureau.” system therefore needs to be flexible,” Manson explains.
Telematics solutions like the MiX Fleet Manager online “Whether a client is looking to start with a track-and-trace
24
24 FOCUS
FOCUS ON
ON TRANSPORT
TRANSPORTF le e t? ?m
?????????????
anag e m e nt
solution, or have live traffic, in-vehicle driver training and “It must be in a readable format that improves the fleet
route optimisation, a telematics solution needs to be controller’s assessment of the trends in the fleet. Besides
adaptable.” the core product offering, transport operators must also
Telematics service providers such as Webfleet Solutions evaluate the options and countrywide infrastructure
can provide a flexible system that allows customers to required to support it. The continued availability of the
add devices or services while providing the most current software that supports the hardware is not negotiable,”
software solutions. While a customised solution is the he says.
ideal approach for every business, some challenges are
universal. P ro ducts i n the m ark et
Nyembe explains: “Common problems faced by Transport operators have many options when it comes
commercial fleet owners include reducing fleet costs, fuel to telematics solutions. For example, Netstar offers its
optimisation, ensuring fleet (including cargo) and driver customers global original equipment manufacturer-
safety, streamlining administrative processes, avoiding approved wireless add-on accessories to help improve
unplanned downtime, adhering to delivery times and quality adherence for fleet vehicles. These include
compliance requirements. temperature control and sensors.
“The telematics solution implemented by transport The telematics services on offer include signal-jammer
owners should address these issues and be sufficiently detection, live tracking, route management, impact
scalable to meet any possible changes to business needs detection, driver-behaviour monitoring and rating, zone
with minimal interruptions to the everyday running of the management, service scheduling, maintenance and fuel
business.” cost management.
Raymond Schulz, executive: commercial and marketing Netstar also provides camera solutions. Nyembe
strategy, explains that although the software is important, elaborates: “Cameras facing the fuel socket can be
the platform should also be easy to use. “The chosen installed to vehicles to discourage fuel theft. The system
tracking hardware system needs to provide enough inputs can be set up so that any violations in this regard trigger
and measure accurate data, while also reflecting the data alerts, for example.”
in an easily accessible platform. MiX Telematics offers its MiX Fleet Manager Premium
FOCUS
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ON TRANSPORT
TRANSPORT 25
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