FREIGHT & TRADING WEEKLYJULY 2010
LoGIsTIcs FEATURE
A ‘revolutionary’ invention that will put rail on track
cape Karoo’s Gillian Ferraro is
hopping mad with Transnetderailed … the single most important logistics issuesA ports lose ... mapUTo gainS
FTW1794SD
The Leading Logistics Network into Africa
A partner with a strong and integrated network
SDV South Africa Pty Ltd, 24 Covora Street, Jet Park, 1469, P.O. Box 1018, Isando, 1600Commercial Manager – Jacques Baudelot, Tel no: +27 11 398 5000, Email: [email protected]
1st: We are the 1st logistics network integrated in Africa.
41: The number of African countries where we are present.
50: We have been operating in most African countries for over 50 years (80 years in Senegal).
200: In M€, represents our average annual investments in Africa.
200: The number of our agencies in Africa.
6 000: The number of handling and transport vehicles used in Africa.
20 000: The number of people employed in Africa.
6,500,000: square meters, the surface of of�ces, warehouses, container yards and workshops.
FTW4795
JUly 2010 | 1
Editor Joy OrlekConsulting Editor Alan PeatAssistant Editor Liesl VenterAdvertising Carmel Levinrad (Manager)
Yolande Langenhoven Gwen Spangenberg Jodi Haigh
Divisional head Anton MarshManaging Editor David Marsh
CorrespondentsDurban Terry Hutson
Tel: (031) 466 1683Cape Town Ray Smuts
Tel: (021) 434 1636 Carrie Curzon Tel: 072 674 9410Port Elizabeth Ed Richardson
Tel: (041) 582 3750Swaziland James Hall
Advertising Co-ordinators Tracie Barnett, Paula SnellLayout & design Michael RorkeCirculation [email protected] by JUKA Printing (Pty) Ltd
Annual subscriptionsCombined Print & Internet – (SA Only) R485.00
Southern Africa (Free Internet) R890.00International Mail (Free Internet) R1160.00
Publisher: NOW MEDIAPhone + 27 11 327 4062
Fax + 27 11 327 4094E-mail [email protected]
Web www.cargoinfo.co.za
Now Media Centre 32 Fricker Road, Illovo Boulevard,
Illovo, Johannesburg. PO Box 55251, Northlands,
2116, South Africa.
Cover photo: Gillian Ferraro of Cape Karoo Traders.
South Africa’s battle to reduce logistics costs to a globally competitive level is hamstrung largely by inadequate infrastructure and the inefficiency of transport utility Transnet.
Industry experts outline the challenges and possible solutions.
Page 2Logistics ‘sabotage’ costs R1200 000 export orders Page 4Transnet’s Navis system gives SA an electronic headstart
‘Solutions need to optimise end-to-end supply chain’
Page 6Shippers vote with their feet against Transnet inefficiency
Page 7Fruit industry counts the strike costs
‘It’s about customer service – not cut rates’
Page 8Tambo Springs dry port heralds new logistics era for Gauteng
Page 10Collaboration is the only way forward
Page 12Africa investment continues
R3bn loan to help revitalise rail infrastructure Page 13Little growth yet – but hopes of year-end uptick Page 14Rainy season affects southbound cargo volumes
Better times hopefully ahead
Strike and recession a two-punch whammy Page 15New permit law impacts driver skills shortage
Logistics operator hints at further acquisitions
‘Diamonds are a girl’s best friend’
Page 16Tobacco focus provides recession-proof buffer
Page 17‘Insurance cover must involve cargo owners’
Page 18‘Revolutionary’ Skiptainer pilot begins
Page 19 Customisation is key when it comes to crating
New system provides speedy modal comparisons
Page 20Financial pressures demand innovative thinking
Container demand pushes up prices
Page 21Freight system facilitates collaboration along the supply chain
Cargo Carriers records 40% growth
Page 22Abnormals to Africa on the increase
Page 23Correct security seals speed up the logistics flow
Page 24Taking the fat out of the supply chain
Page 25Speeding up border procedures smooths the flow
Green issues influence new refrigeration systems
Page 26Heavyweight logistics operation comes up trumps
Page 27Exchange rate knocks ostrich export industry
Page 28Warehousing with a difference‘Cut prices equal cut service levels’
Durban Container Freight Station
FTW4758
Working for Winners
Customs-licensed container depot Bond store and SOS bond store Total site footprint > 70,000 m² 17-wagon rail siding facility Located 2,5 kms from Durban Container Terminal
Marketing email: [email protected] Contact Kerry Parvess +27 31 274 9238 www.imperiallogistics.co.za
2 | JUly 2010
BY Ray Smuts
Export successes notwithstanding, Chris and Gillian Ferraro are fuming
after their budding Western Cape export agency lost international contracts worth R1200 000 over Transnet’s inability to deliver the goods on time.
This after the couple, who set up Cape Karoo Traders in the platteland precinct of Rawsonville two years ago, had expended time and energy to secure a Thai order for five 20-foot equivalents of wet salted cow hides worth R800 000 only to see it torpedoed by the crippling 17-day worker strike in June.
A further order worth R400 000 for two 20-footers to China was also subsequently cancelled due to strike-induced delays.
“The customer had been very patient, bearing with us throughout the strike, but
eventually decided to call it a day.”Zimbabwean-borne Ferraro and
her Italian husband Chris have nonetheless bounced back by securing more contracts, several new, in Thailand and China and vowed to take steps to safeguard the company against crises beyond their control, in light of the Transnet debacle.
“The cancelled Thai contract was to have been the first in what may have become a significant ongoing order,” said Gillian. “That is why I am so irate and why I would like to go to Transnet and beat them up.”
“We, as relative newcomers to the export business, are up against the odds, not least from Transnet, so we realise doing business in South Africa is bloody hard work.
“Firstly we had to contend with the restrictions of the National Credit Act, then the strong rand affected our prices, and then just when we were finding our feet again, Transnet decided to strike for
three weeks and we couldn’t deliver our orders.”
For those in the dark about Rawsonville, it’s a small village in the Goudini winemaking region, a few hours’ drive from Cape Town.
Although they were the town’s first English-speaking residents, flying the Italian flag outside their house and rooting for the Azzuri (Italy’s national soccer team) in the Fifa World Cup, they have been warmly accepted into the community.
The couple were fed up with the drudgery of big city life – crime, traffic, noise and so on – and decided to sell up their Cape Town southern suburbs home, acquire a 4x4 and head for the country.
A chance introduction to a Pakistani businessman was to change their lives forever, but the couple admits it has been no walk in the park.
Gillian worked for a good number of years in the freight and
shipping industry, with the likes of Renfreight, Mitchell Cotts, Fedex and UPS and says “the industry was kind to me.”
These days, they have their routine cut out.
Cape Karoo Traders, a
Counting the cost of Transnet strike
costs R1200 000 in export ordersLogistics ‘sabotage’
Gillian Ferraro ... up against the odds.
FTW4749
Not even the volcanic ash can stop Compu-Clearing giving excellent service
Tel: 011 882 7300 www.compu-clearing.co.za
JUly 2010 | 3
US$5 million a year business, specialises in the export of wet salted skins and hides to tanneries in the Far East. This year their new division, wines and edible oils, will ship four million litres of varied Breede Kloof Valley wines to China.
Chris, formerly in the aeronautical engineering business and a qualifed helicopter pilot, says one of the latest signings is a R4.5 million China order for 11 containers of wet salted Dorpers and Merino sheep skins that could well be the first of at least six monthly shipments.
Various edible oils also feature on the export agenda, with a Spanish company sealing an order for one million litres of soya bean oil a year.
Given that most of the export commodities (wine excluded) emanate from Gauteng, Limpopo and KZN, Durban is the main port for export consignments. The company’s regular shipping agents kept them informed through regular bulletins and updates on the strike.
“I used these updates to inform my overseas customers – so Transnet’s reputation went far and wide,” said Gillian.
“We can only hope for better times ahead otherwise I’ll find myself drinking more wine than I export!”
Simplification and uniformity crucialBY Gavin Barfield
South Africa’s logistics industry, reportedly responsible for almost 14% of the country’s GDP, cries out for simplification, uniformity of procedures and processes and a massive upgrade to enable an ageing infrastructure to cope with the twenty-first-century demands being made of it.
Bulk shippers, and perhaps coal terminals in particular, have suffered from the shortage of railway rolling stock. Most, if not all of the coal exported from the state-of-the-art bulk coal terminal at Richards Bay gets there by train.
With a capacity of 91-million tons, Transnet’s coal lines currently struggle to deliver 70-million tons a year to the terminal, denying coal miners an outlet for some 21-million tons of product and leaving them unable to maintain market share abroad, let alone expand as they might wish to.
Full Loads Part loads Consolidations
ZIMBABWERoadfreight to/from
Full Loads
ZAMBIABEIRADRC
South AfricaTel: +27 11 221 3300 Fax: +27 11 334 5567Email: [email protected]
Associated offices Harare | Beitbridge | Mutare
ZimbabweTel: +263 446417/8, +263 486208, +263 912 201 596Fax: +263 486393Email: [email protected]
FTW4601
Managing operations, information systems, quality control and performance, CAT-WWL handles all aspects of the VEHICLE OUTBOUND SUPPLY CHAIN with speed, accuracy and cost efficiency.
“Premium Vehicle Logistics
Solutions”CAT-WWL LOGISTICS
CAT-WWL Logistics (PTY) Ltd: T: 031 2754080 | F: 031 2754055 | W: www.cat-wwl.com
Quality, reliability and the flexibility to meet changing customer demands are among our key imperatives, and South African-based vehicle manufacturers and importers are given a competitive edge via our skilled blending of logistics expertise, global networking and local knowledge.
Operations in Durban, Uitenhage, Kaalfontein, Rosslyn
FTW1912SD
4 | JUly 2010
FTW1472SD
BY Gavin Barfield
The investment by Transnet in the latest state-of-the-art IT platforms should make South Africa equal
to anywhere in the world in terms of ease of handling shipments, in the view of Ocean Africa Container Line CEO Andrew Thomas.
“Transnet’s NAVIS (Navy Automated Video Information System) system is a significant move from the cumbersome paper-heavy CTO (Container Terminal Order) system we’ve all been used to towards completely paperless processing,” he told FTW.
Transnet Port Terminals will be the first organisation of its size worldwide to control the [container] system from one location, in this case from Durban. In
operation at Durban’s key Pier 1 container terminal since mid-2007, the NAVIS-based SPARCS N4 system (Synchronised Planning and Real-time Control System) was extended soon afterwards to Port Elizabeth and East London.
Replacing the COSMOS container management system used until its inception three years ago, NAVIS will cover seven marine and fourteen rail terminals by the end of 2010. Container industry sources agree that the SPARCS system enables operators to manage and use their time more efficiently – drivers need no longer wait in frustrating, time-consuming queues at terminals to pick up containers, as the web-based system now permits operators to release containers from terminals on their desks.
Transnet’s Navissystem gives SA an electronic headstart
Durban's Pier 1 terminal where Transnet's NAVIS system has been in operation for several years.
Few disagree that sustainable logistics solutions can only be generated through effective collaboration between private and public sectors, process improvements and structural changes.
It was the essential finding of the sixth State of Logistics™ survey published by the Council for Scientific and Industrial Research (CSIR), IMPERIAL Logistics and Stellenbosch University last year.
The survey, which breaks down
logistics costs in SA into transport costs, inventory carrying costs, storage and port costs, and management and administration costs, found that although South Africa saw an increase of 6.9% in logistics costs compared to the previous year’s R317 billion, 2008 costs were at their lowest since 2004, totalling R339 billion or 14.7% of GDP. However, when compared to other countries’ logistics costs, e.g. the USA’s 9.4% (2008), domestic costs remained too high.
During 2008, the recessionary global oil price positively impacted industry costs, whereas South Africa’s higher-than-normal transport demand and poor network configuration, rising bad road conditions, radically increased storage and inventory costs, need for increased funding to bolster capacity and consistently increasing road corridor traffic had a negative effect.
The percentage decrease of bad to very bad national roads over a 10 year period from 1998 to 2008 varies
from 7% to 9% and on secondary roads from 8% to 20% with significant deliveries routed via this road network. The deterioration of road quality can and will lead to drastic increases in vehicle maintenance and repair costs – higher product and logistics costs – unless addressed adequately and quickly, according to the survey.
The survey was introduced in 2004 and aims to provide a comprehensive picture of the state of logistics in South Africa.
‘Solutions needed to optimise end-to-end supply chain’
JUly 2010 | 5
FTW1936SD
6 | JUly 2010
GEA Project Solutions, the project management division of GEA Refrigeration Africa has a dedicated team of engineers who specialize in the design of new and modification of existing refrigeration facilities.
In partnership with our clients, we develop, implement and manage developments from conceptualization through to completion.
GEA Refrigeration Technologies
GEA Project Solutions Grenco19 Chain Avenue, Montague Gardens, 7441 Tel: 021 555 9000, Fax: 021 551 4036 www.geaprojects.co..za
Efficiency in Food and Energy processes
FTW quarter page Projects 2010.indd 1 2010/06/15 09:53:53 AM
FTW1982SD
Transportation & Warehousing including hazardous cargo Packing & unpacking
Committed to superior standards of customer service which
founded Firstclass Logistics and inspired our vision
Johannesburg:Tel: 011 826 4417 Fax: 011 826 2354
Tel: 031 312 0720 Fax: 031 312 [email protected]
(BEE Accredited)
w w w . f i r s t c l a s s l o g i s t i c s . c o . z aFTW4026
Overborder road & air services to:
Tel: (011) 823-4806/27/31 Fax: (011) 823-4955E-Mail: [email protected]
Full door-to-door service
WORLDWIDE IMPORTS AND EXPORTS
FTW3363SA MEMBER
For
BY Joy Orlek
It’s a sad reality in the SA context that our logistics enablers are the very institutions that appear
to be sabotaging any post-recession rebound.
Recent news that major perishable exporter GoReefers has switched from Durban to Maputo – which is cheaper and more efficient – is evidence that shippers are beginning to vote with their feet.
“The volume cargo movers DO have a choice,” says Dave Johnson of Edgin Logistics, “and at the moment South Africa is not it – we’re expensive, we’re inefficient and we don’t care.”
A harsh indictment that sums up the prevailing sentiment among the majority of Transnet customers.
“The Transnet strike earlier this year proved quite damning for our business,” says Johnson. “Not only was there virtually no containerised
cargo movement, and hence no unpacking and packing at our facilities, but our staff complement usually travels to work largely by passenger trains and had to arrive, late more often than not, by other means.
“The disruption, both during the strike and after while everyone played catch-up, has obviously had a negative effect on our turnover and probably means a sharp drop in year-end profits. In a low margin business like ours you simply can’t stop working for 10% of the year and expect good results,” says Johnson. “Couple that with a relatively quiet June/July because of World Cup activity, and it soon becomes apparent that the second half of 2010 had better produce some good volumes otherwise the year overall is going to be dismal.”
During the strike exporters had to look at other options and Maputo rose to the challenge, says Johnson. “Not
only operationally but it also came in cheaper than Durban. It’s one of those immeasurable losses that come about as a result of a long strike. The door is open now – and with economy of scale the loss to our country will be large.”
Johnson contends that large parastatals like Transnet should enter into an agreement with their employees and the controlling unions that all salary packages increase each year by the exact percentage of that division’s rate increase to its customers. “That way market forces will be the major influencing factor, and there won’t be any disputes and strikes that cripple the national economy.”
In addition, he believes an organisation like Transnet, which is state-owned and so vital to the success of our economy as a whole, simply cannot post profits of over R14 billion during a worldwide recession.
Costly logistics loses business for SA
Shippers votewith their feet against Transnet inefficiency
Dave Johnson ... ‘The Transnet strike earlier this year proved quite damning for our business.’
JUly 2010 | 7
Costly logistics loses business for SA
Shippers votewith their feet against Transnet inefficiency
BY Gavin Barfield
The South African fresh fruit export industry, whose annual turnover is reportedly in the region of R950-million, keenly felt the impact of the recent rail and harbours strike.
Forced to airfreight produce at a little more than five times the usual R10 per kilogram charged by shipping lines, the extra cost was shared between producers and customers.
“This meant that overseas customers had to do without our supplies and that a number of contracts with certain supermarkets had to be cancelled,” said Subtropical Fruit Growers’ Association CEO Derek Donkin, adding that the crisis had opened the door to ‘competition and reputational damage’.
Fruit industry counts the strike costs
“Where is the Competition Board? Transnet needs to distribute 90% of that profit back into the businesses and individuals from whom they profit.”
This can be accomplished in two ways in his view. Firstly by employing qualified, interested and accountable staff and paying them accordingly. “This will improve port and rail efficiency and job satisfaction.
“The second is to place a moratorium on further increases in port services so that volumes of cargo imported and exported can get back to previous levels. They must start to understand that although they have a monopoly in our ports and believe they can charge what they want, there is a significant volume of African business that we lose to other countries, and there is even more that doesn’t even take place because the logistics are too costly. When that happens we all lose.”
BY James Hall
Like any industry, the logistics business can be tarnished by sub-standard performers who drag down confidence in all service providers. The offending firms may be not be intentionally “bad apples” but rather naïve industry newcomers who make promises they cannot keep or offer prices they cannot honour without compromising service.
“The biggest problem, particularly with the economic climate we’ve experienced this past year, is everyone is fighting for new business. Some companies are offering cheaper prices but they aren’t backing up with decent service. It affects and reflects on everyone in the business,” said Rory Williamson of Hendor Transport, Johannesburg.
Errors of judgement from inexperience rather than malicious intent to defraud customers seem to be behind practices that create customer dissatisfaction with the logistics industry. If a mentoring system were in place, start-up firms
might learn from companies like Hendor, which has been in business for a decade, he said.
“We have quite a few clients, a steady flow of business, because even when times are tough they are dedicated clients that even if they’re not busy they give us business when they can. They do this based on our service, their history with us. Put it this way, we are always very positive. If you have a negative outlook you get negative results. We do have our hiccups, we all do. Anyone in transport who says they don’t have hiccups is lying through their teeth,” Williamson said.
Logistics depends on vehicles, and this fundamental is sometimes forgotten. “Our simple service policy is to keep our trucks maintained or we can’t provide the service we want to deliver. We don’t cut corners. Our fleet comprises sixteen vehicles (about 115 vehicles are subcontracted). Some other companies are not servicing their vehicles properly. This isn’t cost savings, it isn’t cost efficient,” Henderson said.
‘It’s about customer service – not cut rates’
With us you score every time
One-stop logistics shopCross-border transportProject cargoSatellite trackingExperienced team
14 Totonto Street, Apex, Benoni Tel: +27 11 421 8245 E-mail: [email protected]
FTW4777
When You Want It, We Make It Happen
Durban – Johannesburg – Cape Town
A wholly owned South African enterprise founded on the cornerstones of service and integrity and embracing
the progressive philosophy of responsible and committed black empowerment, GMA Logistics is geared to deliver the
goods – across the country … around the world.
Our Main Services Include
Our Specialised Services Include
Contact Us Now
www.gmalogistics.co.zaSince 1953
FTW4711
8 | JUly 2010
ftw4007
First For Freight into Africa Johannesburg Tel: +27 11 918 6645 Fax: +27 11 918 6618 e-mail: [email protected]
Musina Tel: +27 15 533 1632 Fax: +27 15 533 1632 e-mail: [email protected]
Malawi Tel: +265 888 218 000 +265 192 6681 e-mail: [email protected]
Durban / JHB to Malawi Exceptional Transit Time Consolidations / Full Loads Competitive Rates Specialist Packaging & Crating Hazardous/ Abnormal Loads Break Bulk / Containerized / Specialized Satellite Tracking & Daily Customer Reports
www . t r a n s - t e c h . c o . z a
FALCONGATE LOGISTICSFALCONGATE LOGISTICSFTW1899SD
BY Gavin Barfield
Property developer Inframax Holdings, although Cape-based, operates nationally, and is
currently busy with an initiative aimed at making the country’s major inland port a ‘next generation’ one that will service the entire country by “putting Gauteng’s entire logistics capability into a new and far more efficient era and creating thousands of jobs, while at the same time stimulating the area’s GDP,” said Inframax MD Dr Willie Els in SA Property News.
Using a 630-hectare tract of land lying about 25 kilometres southeast of the Johannesburg CBD, which the company has owned for several years, it is proposed that the new facility, to be named Tambo Springs, will increase Gauteng’s current freight logistics throughput to 3-million TEUs by 2015 and 4-million TEUs by 2020 – with further increases after that.
Tambo Springs, which will have direct access to the N3 freeway from Gauteng to Durban, the N1 to Cape Town and the route via the R390 to Port Elizabeth and East London, is well
situated for the freeways giving access from Gauteng to key industrial centres between 20 and 60 kilometres away, such as Vereeniging, Vanderbijlpark, Heidelberg and Sasolburg. Its handy location 22 kilometres from City Deep and 25 kilometres from the freight terminal at Johannesburg’s OR Tambo airport is likely to mean that the site
will be able to handle both long-distance road freight, where trucks are usually full, and part-load regional distribution.
Of course this sort of capital-intensive facility is all well and good if there is sufficient transport volume to use it. Whether road or rail, an inefficient or inadequate vehicle or rail
truck pool frustrates any attempt, no matter how well planned, to achieve optimum flexibility and to be prepared for unforeseen eventualities or sudden changes of plan. Relatively quick times for short and medium-distance journeys are counterbalanced by long, enforced and frustrating idle time in traffic jams, while legal restrictioans and over-zealous, sometimes corrupt traffic officials with an acquisitive view of law enforcement do little to expedite matters. And there are always the unforeseeable effects of weather to be taken into account.
Els doesn’t think the freight logistics needs of Johannesburg and the surrounding areas have been fully understood, particularly by the public-sector authorities whose remit it is to serve the area. “As a result, there is excessive use and wear of roads by freight operators; a dramatic decline in rail usage which is largely due to poor service levels; increased congestion and fragmented freight planning. South Africa’s freight logistics system is not meeting the country’s needs, and it is not keeping up with the way the world is moving,” he says.
Logistics throughput to increase to 3-m TEUs by 2015
Tambo Springs dry portheralds new logistics era for Gauteng
A container train en route to Durban from City Deep ... new facility will increase Gauteng's current freight logistics throughput.
ADVERTORIAL
2 | FRIDAY July 2 2009
Speeding up truck turnaround, reducing damage to cargo and providing a more streamlined operation for clients was
the motivation behind the launch of Cross Loading two years ago.
Set up in Chingola as the distribution arm of specialist cargo consolidator Ka Go 2 Go, its growth has been unprecedented, says Ka Go 2 Go’s Ken Hall.
“The concept of a distribution hub is certainly not new – and on the Zambia route it made a lot of sense.
“Instead of our trucks arriving in Zambia and taking three or four days to deliver their cargo, they now offload and come straight back for the next load.
“This means that we don’t need to load the cargo in the order it is likely to be unloaded, there’s less danger of damage to cargo, the customer gets his cargo quicker and our trucks are gainfully employed on their long-distance routes.”
It’s a win-win situation for all, says Hall.“Cross Loading effectively operates as a
distribution management company for Ka Go 2 Go and Cargo 2 Congo.”
And the growth is evidence of customer buy-in
“Initially there was some resistance,” says Hall. “Customers couldn’t understand why cargo bound for Kitwe or Ndola was being sent to Chingola. But now that we’ve demonstrated that it’s quicker and more secure, they’ve all bought in completely.”
Within a year of moving into its premises – comprising a warehouse, offices and a yard, Cross Loading had outgrown the facility.
“We have now relocated to new premises which we have refurbished and upgraded and we probably have the nicest facilities on the Copperbelt,” says Hall.
“There are six warehouses, the yard is cemented and we have a lovely office block. In fact a lot of our bigger clients have taken offices there and the list is growing.
“It’s turned into a very nice hub for Zambia – and for Ka Go 2 Go it’s worked out well. Sometimes we get three big trucks into our depot and within 24 hours we’ve delivered all the goods.”
In the past truck turnaround could take two to three days.
If a truck is carrying bonded cargo it will continue to the clearing agent’s bonded warehouse.
Cross Loading operates two vehicles,
ideally sized for distribution of smaller loads. Larger cargo will remain on the long-haul truck and be delivered directly to the client.
“It’s probably a unique concept in the Copperbelt,” says Hall, “and our expansion has been self-propelled.
“It’s come a lot quicker than expected, and as a result we have set up a workshop on site with a very experienced trained mechanic. The Chingola hub is your centre pivot point for cargo going into the Congo.”
And it’s all come together at the best possible time.
“Business has picked up significantly this year,” says Hall. “In fact in April we had the best ever month in the history of the company.
It is also heavily involved in the distribution of cement in Zambia and DRC.
“We’ve certainly grown a lot bigger than we thought we would, thanks to a very loyal client base built on personal relationships.”
It’s very much a family-type operation, with Hall heading up the company with both his sons, his son in law, wife and nephew all working in the organisation.
The success, he says, is a simple formula: “We’re not too big and not too small – which means we can cater for every size of operation.”
Zambia hub speeds turnaround and keeps customers smiling
Chingola distribution facility makes ‘cents’
The Chingola premises of Cross Loading … a distribution hub that cuts down transit time and improves cargo security.
The Greendoor stable comprising Greendoor Logistics, Ka Go 2 Go, Cargo 2 Congo and Cross Loading.
Tel: +27 11 974 0575 Cell: +27 82 448 2367
Tel: +27 11 974 0575 Cell: +27 11 448 2367
www.greendoorlogistics.co.zaFTW4778
10 | JUly 2010
GR
APH
ITE
2526
FTW1213SD
CollaborationBY Joy Orlek
South Africa’s transport infrastructure has failed dismally to deliver on its mandate – to
provide the safe and reliable transport of goods with the efficiency to compete in the global economy.
And the single biggest detractor is the volume of cargo moving by road compared to rail, in the view of SA Shippers’ Council chairman, Fanie Pretorius.
“If you look at traffic that’s switched to road, it’s not by choice but rather because of the lack of service delivery.
“Investment in rolling stock and infrastructure has not kept pace with development resulting in deterioration in operational efficiency.”
According to Pretorius, rail accounts for 28% of longhaul transport, a share that has been declining over the past two decades. According to unconfirmed information this percentage is now below 20%
“Companies are moving over 100 000 tons of coal (rail friendly transport) by road because Transnet Freight Rail doesn’t have the
capacity,” he added.And the reasons for the deterioration
in rail service are many and complex.A key factor is the lack of expertise
at TFR.
“The rail utility has lost specialist knowledge in the technical field,” says SASC executive director LM Pelser, “and that has resulted in poor decision-making with regards to equipment
and operations.“On the operations side,” says
Pretorius, “drivers are pushed through a fast-tracked training programme because of the experience lost to
NumBer Of registered Vehicles
Motorised VechilesNumber registered
Mch 2007Number registered
Mch 2008Change % Change
% of Group Mch 2008
% of Total Mch 2008
Motorcars 4 992 401 5 224 652 232 251 4.65 63.36 56.90
Minibuses 268 660 280 632 11 972 4.46 3.40 3.06
Buses 37 348 40 760 3 412 9.14 0.49 0.44
Motorcycles 293 164 315 643 22 479 7.67 3.83 3.44
LDVs - Bakkies 1 732 250 1 856 440 124 184 7.17 22.51 20.22
Trucks 285 807 307 828 22 021 7.70 3.73 3.35
Other & Unknown 213 677 219 634 5 957 2.79 2.66 2.39
Total motorised 7 823 313 8 245 589 422 276 5.40 100 89.80
Towed Vehicles
Caravans 107 923 106 468 -1 455 -1.35 11.36 1.16
Heavy Trailers 125 161 136 595 11 434 9.14 14.58 1.49
Light Trailers 651 698 677 516 25 818 3.96 72.30 7.38
Other & Unknown 18 968 16 510 -2 458 -12.96 1.76 0.18
Total Towed 903 750 937 089 33 339 3.69 100.00 10.20
All Vehicles 8 727 062 9 182 677 455 615 5.22 100.00
is the only way forward
JUly 2010 | 11
FTW4774
CUSTOMISE YOUR SUPPLY CHAIN
www.icmgroup.co.za
KZN: +27 31 332 2678 JHB: +27 11 450 4399
… with innovative transport solutionsNamibiaSouth AfricaAngolaZambiaMozambiqueZimbabwe
• Full / part loads • Refrigerated cargo• Bulk distribution • International courier service • Warehousing • Logistics managementwww.intracom.com.na
Head Office Windhoek +264 61 372 900 [email protected]
40 years of experience
FTW4702
driven to deliver
other countries like Australia – which explains why a number of incidents are clearly caused by human error.”
The National Operations Centre was another grand idea. “However you have a lot of people who don’t understand the industry controlling centrally but not in real time and making decisions on issues that will affect flows.
“The technical limitations of South Africa’s existing railway system are an additional concern – the fact that we
have a narrow gauge infrastructure. But we have to live with it and learn to work smarter.” Pelser points out that it's not always speed that counts, but reliability. “Why is Oryx and the Richards Bay Coal line a success (world best) when it's also narrow gauge. We must not confuse ourselves with passenger rail. The extreme high speeds achieved with passenger trains are not needed for cargo.”
Collaboration is the way,
says Pretorius.“A lot of companies have ring-fenced
wagons. South Africa as a whole needs to change. You need to collaborate as an industry and use wagons effectively.
“Let’s all get together and come up with a collaborative plan – at the moment we’re all covering our own backs. What we need to do is ensure that wagons can do front and back legs to make the system more efficient.”
Globally there was a similar move from rail to road, but the rest of the world has realised the prudence of prioritising rail, says Pelser.
“In Brazil, for example, a lot of cargo moved to road. They realised that they had made a big mistake and invited South African rail specialists to help them – and rail in Brazil is making good progress. Why not use that knowledge in South Africa? In America, China, Japan to mention a few, rail is the preferred long-distance mode.”
While no-one will deny that road is the more flexible option, Pelser believes that shippers have been spoilt by the Just in Time concept. “It’s nice to have your goods overnight, but is it always necessary? The spiral of how to do things more quickly has created expectations – but not everything needs to be done today.”
And the best argument to demonstrate the need to move back to rail is the financial impact of the current reliance
on road transport, says Pretorius.First there’s the cost of road accidents
– the total cost of fatal crashes during the 2007-08 period was R13.27 billion.
“Deteriorating infrastructure is costing motorists more than R200 billion a year while chronic under-spending creates additional user costs.”
Another interesting statistic is the growth in sales of extra heavy vehicles – which tripled between 1999 and 2005 from 2514 to 8841. And South Africa’s traffic authorities haven’t done themselves any favours in terms of legislation to protect the road network.
Pretorius points out that gross vehicle mass in South Africa is 56 tons while GVM in the US is 38.
“Road infrastructure would have been prolonged if our maximum GVMA had remained at 48 tons prior to 1990,” he said. But Pelser points out that the move to higher GVMA was necessary. “If we had not made that move, 16.6% more vehicles would have been needed to convey the same amount of cargo.”
The solution, in his view, lies in collaboration between supply chain stakeholders – sharing of information and searching for solutions together “Jointly agree on future strategies. If you do things in isolation you will not succeed. Obtain the buy-in and understanding of all role players, and success will be the result.
NumBer Of uN-rOadwOrthY, uNliceNsed Vehicles Or BOth
Vehicle Type March 2007 March 2008 Change % Change
Motorcars 399 995 431 599 31 604 7.90
Minibuses 45 342 59 000 13 658 30.12
Buses 4 366 5 941 1 575 36.07
Motorcycles 81 406 112 802 31 396 38.57
LDVs - Bakkies 120 276 135 202 14 926 12.41
Trucks 37 870 56 457 18 587 49.08
Caravans 9 169 10 435 1 266 13.81
Heavy Trailers 13 965 21 808 7 843 56.16
Light Trailers 48 867 61 904 13 037 26.68
Unknown 18 750 27 052 8 302 44.28
All Vehicles 780 006 922 200 142 194 18.23
Source: road Traffic ManageMenT corporaTion
12 | JUly 2010
00515 FTW quarter page 2/3/10 6:24 PM Page 2
Composite
C M Y CM MY CY CMY K
FTW1923SD
NEW SOUTH AFRICA SHIPPING (PTY)LTD
DBNTel: +27 31 461 8500Fax: +27 31 468 1406 Cell: 083 777 1986Email: [email protected]
JHBTel: +27 11 450 4121Fax: +27 11 450 4031Cell: 083 777 1890Email: [email protected]
FTW4323
Underscoring its commitment to the African continent, Bollore Africa
Logistics continued its investment programme last year despite the global recessionary climate.
“We have always believed in Africa,” said regional director Southern Africa, Philippe Deneve. “In spite of the world crisis, this continent has held firm because Africa will continue to sustain its growth compared to the industrialised countries of the world.”
2009 saw the opening of new branches, new dry ports and logistical bases in Africa, says Deneve. “We have also reinforced our logistics teams in charge of supply chain and warehousing in the mining, oil and gas, telecommunications and capital projects industries,” he said.
“While our competitors were timid in terms of investment, we reinvested in infrastructure and equipment and strengthened our position on the continent.”
While he concedes that 2010
will be a difficult year, he makes it clear that the company will continue its investment programme. “We are confident that things will start moving forward this year.”
Pivotal to its future success as suppliers of custom-made logistics solutions in the southern Africa region is its skilled staff. “SDV has for many years undertaken internal staff training – and this will continue going forward. Each project is different and the teams are the key to our success.”
Africa investment continues – even through the recession
Philippe Deneve ... ‘In spite of the world crisis, this continent has held firm.’
BY Gavin Barfield
Transnet claims to be investing R93.4-billion over the next five years, of which R40.8 billion is being spent on upgrading freight rail infrastructure and rail engineering. The upgrading of the freight rail infrastructure is key to the objective of shifting more freight from the
road network to the rail network, as well as finding the balance between road and rail in respect of the transportation of goods.
In a sensible and far-sighted bid to create sustainable capacity ahead of the demand for that sort of volume, the much-maligned parastatal has secured a R3-billion loan from the African Development Bank which it
says will enable it to ‘revitalise and expand vital rail infrastructure.’
Aimed at stimulating trade, facilitating regional integration and ensuring sustainable economic growth, the Bank said that the loan, which forms part of Transnet’s R93.4-billion capital investment programme, would enable the parastatal to ‘reduce the cost of doing business in South
Africa to internationally competitive levels.’ National roads body sanral, responsible for the national road network of some 16,750 kilometres, claims that about R70-billion will be spent in the next three years on road infrastructure, maintenance and upgrading, with an additional R3-billion earmarked for provision of and improvements to access roads.
R3bn loan to help revitalise rail infrastructure
For FTW subscriptions, please contact Gladys Nhlapo 011 327 4062 ext 353 [email protected]
FTW4640
JUly 2010 | 13
BY James Hall
The logistics industry is no different from other businesses in its need for insurance, the
“invisible necessity” that offers security for shipments from the mundane to the risky. Like all links in the supply chain servicing logistics firms, insurance underwriters have taken their lumps during this past year’s shipping slowdown.
“Our business is import/export insurance, covering all the logistics involved in all legs in the transport of cargo, including warehousing. Our customers have been battling in terms of volumes. In our industry if there is a slow economic climate where clients aren’t sending cargo there’s nothing for us to insure,” said Mike Brews, COO of Associated Marine in Johannesburg.
“Volumes are down and our industry has definitely felt it. I see the tide slowly turning. We are back up to last year’s levels, but definitely there’s been little or no growth on last year so far. Hopefully by year’s end we will see a pick-up,” said Brews, who reported that unlike the logistics firms with whom he deals who have laid off workers his firm has avoided retrenchments and is looking ahead.
“We’ve rebranded and refocused our energies on our services. Maritime insurance has been around since the 12th century, so it is very difficult to make improvements on the product itself. We will differentiate ourselves with quality customer service, reducing claims turnaround times (from initiation of a claim to payment) and further staff training,” Brews said.
“Maritime insurance is all about experience, rather than just looking into a rate guide or rate book. By sea there is a higher risk because
of the longer voyages while other risks face road and rail voyages. We analyse each shipment on its own merits. Containerised cargo, breakbulk, groupage, there are so many variations. The method of conveyance – road, rail, sea, air, even pipes – determines rates, as does the previous history of a client and what risk controls they put into place to reduce losses, such as security at warehousing, armed escorts for valuable shipments that are not necessary for iron ore but needed for an expensive commodity like cell phones. Is the shipment going to a first world or third world country – the US or Nigeria?” Brews said of the varied considerations affecting his customers’ costs.
Little growth yet – but hopes of year-end uptick
Mike Brews ... ‘Maritime insurance is all about experience, rather than just looking into a rate guide or rate book.’
ACROSS LAND AND SEA
ACROSS THE GLOBE
It’s not just our specialist experience in shipping, storing and moving commodities around the world that makes us a trusted
transport partner for many leading companies … it’s also our unrivalled customer service.
Our qualified professionals have the ability and knowledge to help you at every stage of the journey including routes, documentation,
timing and the best possible prices.
Services:WarehousingRoad Freight
Ocean FreightAir Freight
Customs Clearing ServicesLogistics Project Management
Aquarius Shipping InternationalSouth Africa: +27 11 658 0339
Malawi: +265 1 712 294Zimbabwe: +263 4 754 404
United Kingdom: +44 1483 825 120Belgium: +32 329 863 15
Mocambique: +258 843 456 959
Email: [email protected]
www.aquariusshipping.co.ukFTW4763
Simply Superior Shipping Solutions
BY James Hall
MBABANE – Has Swaziland’s 15-year building spree come to an end? Only one major project remains as a national “must do” project, but it’s a big one – a bypass road around the central commercial town Manzini that will enable Gauteng to Maputo traffic to travel through Swaziland without encountering urban encumbrances
that come from passing through towns. Early this year the Mbabane bypass highway opened for traffic.
“There will be a bypass highway around Manzini. It is needed for the Sikhupe Airport under construction east of town. The only question is routing,” a highly placed government source told FTW on condition that the information is used in deep background.
Major highway project for Swaziland in the pipeline
14 | JUly 2010
BY James Hall
A prolonged rainy season has impacted the movement of agricultural goods from
northern SADC countries, John Wheadon of Falcongate Logistics reports.
“We’ve got an abundance of northbound traffic to Malawi, all South African goods, but we are having to park the trucks until agriculture products pick up after the late rainy season. We’re normally busy mid-year,” Wheadon said.
Falcongate transports a gamut of products from cotton and tobacco to timber and tea.
“We’re moving a lot of commodities, tobacco which is delayed because of the rains, grains also – all breakbulk,” he said.
Although Falcongate’s transport work is 100% overborder, imminent South African work visa requirements for foreign drivers won’t affect operations.
July 1 saw the implementation of a law that has been in the books for over two years, but has not been enforced up to now.
The department of home affairs has stated that all foreign drivers driving SA-registered vehicles must be in possession of an SA work permit – or proof that they have actually applied for one.
“All our Malawian trucks have Malawi drivers, our Zimbabwe trucks have Zimbabwe drivers. They come to South Africa to drop off, and go back,” Wheadon said.
Once the harvest is in, shipments may be down due to the worldwide recession, but there’s no danger that clients’ food commodities won’t find markets.
“I don’t think the whole planet will stop wearing t-shirts made from cotton or stop smoking,” Wheadon remarked.
Rainy seasonaffects southbound cargo volumes
BY James Hall
Hans Houniet of Excellence Forwarding in Johannesburg has been in the logistics business in South Africa for four decades, and elsewhere before that. But the current slump in business the industry is now witnessing is the worst of his experience.
“It is a very, very difficult situation, two full years (of down business) with no end in sight. Business is up a little bit and then down again,” said Houniet, likening the cycles of the past couple of years to a yo-yo that drops on its string but never returns as high as its starting point.
However, the firm’s four trucks still ply the Johannesburg to Durban route carrying mainly chemicals and machinery.
“World Cup activity yielded a boost in logistics activity, and we have always had the feeling that it’s going to get better,” the veteran logistics man said.
Better times hopefully ahead
BY James Hall
The recent Transnet Strike “ain’t over ‘cause it’s over” logistics firms are noting.
“I think the short term repercussion is we have got a large backlog. Hopefully you can clear that. For the long term, if strikes of this nature continue, all business is in jeopardy, not just us in logistics,” said Manie
Kruger of Kwela Logistics.Noting that if their customers
cannot move goods then their contracts cannot be honoured, logistics firms are concerned that the reliability of SA exporters may be compromised.
“Business is very bad at the moment. The recession pays a major role obviously, because our utilisation factor comes down. But
what really affects us is strikes. Transnet seriously affected us. In May it was really coming to a standstill for us. Our company has been seven years in the business and I’ve never seen anything like this,” said Kruger.
Reduced use of warehousing has been one effect of the one-two punch of strike and recession. “Clients were keeping goods in storage for up
to three months normally. Now they don’t store as long as they did. They bring in and take out immediately. They are looking at their cash flow situation,” Kruger said.
“It’s a big part of our business, warehousing,” he said. Kwela runs a 12 000 m² warehouse in Cape Town where the firm is headquartered, and a 4000 m² facility at its Johannesburg branch office.
Strike and recession a two-punch whammy
John Wheadon ... ‘No danger that clients’ food commodities won’t find markets.’
FTW1993SD
JUly 2010 | 15
Being prepared for the unpredictable is one of the few constants in the logistics industry.
And 2010 has provided its fair share of surprises – in the form of the volcanic ash cloud and the Transnet strike, which impacted both air and seafreight volumes.
“It’s challenges like these that demonstrate the importance of networks, global partners, a delicate geographical split of trade routes, and the ability to make quick contingency plans,” says Neil Harris, managing director of logistics operator Freightit.
While Freightit used the recent global economic slow down to focus on increasing back-office efficiency, servicing its customers and opening new strategic accounts in anticipation of recovery in the second quarter of 2010, in reality it was faced with the impact on airfreight volumes of the volcanic ash cloud and the crippling
effect on seafreight volumes of the 17-day Transnet strike. “But through our set-up in Durban we delivered all 29 of our containers within a week of the strike being resolved.”
As volumes have increased, airfreight rates have escalated through the roof on the China-SA route, says Harris. “Europe has also strengthened its rates as everyone tries to make up for lost time, particularly as the World Cup bolsters volumes into the country.”
Streamlining processes through improved freight management systems is crucial – and part of the motivation behind Freightit’s recent investment in the Core Freight system.
“It will further enhance speed of quotations, processing of EDI documentation and management information,” said Harris who told FTW the company would be looking for acquisition opportunities in the industry in the future.
Logistics operator hints at further acquisitions
FTW4705
11BBBEE Rating – Level 6
Tel: 011 869 3921 | Fax: 011 869 1959 | email: [email protected]: 021 934 0210/8271 | Fax: 021 934 0027 | email: [email protected]: 031 577 1568/1683 | Fax: 031 577 8380 | email: [email protected]
1 on 1 serviceGO WITH EXCELLENCE
visit www.excellence1.co.zaTo view our comprehensive service portfolio
EXCELLENCE FORWARDING (Pty) Ltd
BY James Hall
For logistics firms, mid-year proved a time of proverbial feast and famine, if not in that
order. A rush to make up for down shipping time during the Transnet strike corresponded with the feverish activity surrounding the Fifa World Cup games and festivities.
“Business has certainly picked up since last year, though this past couple of months I suppose it’s been an artificial upswing. When the strike ended everything that had been sitting around had to go out and come in. We’re double busy now,” said Arnold Reddy of Reddy Cargo in Johannesburg.
“If it continues the whole year like this we’ll be smiling, and
it just may. There’s a lot more determination in the market place, and a lot of shipping both import and export,” Reddy said.
Despite the ups and downs of shipping activity, the logistics industry still offers an indispensable service. “Basically every manufactured item has to move at some time in its life. If there is no shipping it’s a sign the economy is in trouble,” said Reddy, who this year opened an office in Lusaka. Previously Zambia business was conducted out of the company’s Jo’burg headquarters.
But the firm’s overborder work confirmed the impact that this year’s labour rules changes have had on road freight logistics.
“The most challenging part concerning logistics in South Africa
is drivers, a huge shortage of quality drivers. We used to have a lot of foreign drivers doing cross border. They were allowed three months here on their passports. Now they need a work permit, and there is a huge
application backlog. Government departments never run at optimum level, anyway. We have our HR department trying to assist, but the law change has really hit driver availability,” Reddy said.
New permit law impacts driver skills shortage
‘Reddy’ for the upturn ... part of the Reddy Cargo fleet.
‘Diamonds are a girl’s best friend’BY James Hall
The logistics business in Botswana is “easy,” as long as you have experience, know-how, competent sub-contractors and business savvy. Otherwise, it can be a nightmare for shippers unfamiliar with the transport picture of a country whose shipping needs keep pace with a well-performing economy, says Gertrude Bosekeng, clearing agent for Zebra Shipping, a firm that has been a fixture in the Botswana transport scene for 15 years.
“We do a lot of work for Diamond Manufacturing in Serowe, which is 350 km from Gaborone,” said Bosekeng.
The firm imports manufacturing equipment made in SA for use in the diamond belt.Neil Harris ... ‘Airfreight rates have escalated
through the roof on the China-SA route.’
16 | JUly 2010
BY James Hall
One way for a logistics company to insulate itself from an economic downturn is to take on
commodities whose sales are “recession-proof.” A steady flow of trucks bearing one such product, tobacco, has allowed Aquarius Shipping to weather the ongoing storm.
“We are a little different from other logistics companies in South Africa because we concentrate on fewer commodities, with tobacco being our major income source. Therefore, one could argue that we are controlled by what happens in the tobacco industry as well as the logistics industry. But as far as tobacco is concerned, we were far less affected by the slump in the economy. Volumes remained stable out of Malawi
– after a record season in 2009 it has subsided slightly – but the Zimbabwe crop has grown substantially despite the ongoing problems being experienced there,” said Aquarius Shipping MD Robert Poverello.
Aquarius Shipping roadhauls about 3 500 FEUs of tobacco out of Malawi per annum, 2000 FEUs out of Zimbabwe, 500 from Mozambique and 150 from Zambia along with handling various customers’ tobacco import requirements from around the world.
But while tobacco output is stable, logistics consideration may yet wreak havoc.
“The biggest challenges we face are generally from the port operations and transport operations. Fuel prices and freight rates are very erratic and the frequent strikes have to be carefully
monitored. The tobacco we transport is in its raw state from Malawi, Mozambique, Zambia and Zimbabwe, and gets shipped out from Beira and Durban.
“With special reference to transporters, the past two years have been very, very difficult in logistics, not only from an African point of view but a worldwide perspective. We have been very fortunate not to have had layoffs or working day cut backs because we were dealing with a product that had not been greatly affected. In fact, we are looking at expanding into other agricultural products, like sugar, tea, cotton, cocoa, coffee and ground nuts and have made great strides already. In addition to that we are looking at extending into East Africa – Kenya, Tanzania and Uganda,” Poverello said.
Tobacco focusprovides recession-proof buffer
Rob Poverello ... ‘Looking at extending into East Africa.’
Heavy vehicle tolling a hot issueWhile Transnet’s long-term plans – particularly on rail corridor development nationally – should offer some relief to South Africa’s overburdened road infrastructure,
there’s little chance of immediate relief, says Cargocare director Sue Wood.
“A more immediate threat is likely to be the argument between
SA National Roads Agency Limited (Sanral) and the Road Freight Association over the road tolling fees for heavy vehicles, as the system is rolled out early next year.
“The success or otherwise of that discussion will see an impact on cargo owners yet to be assessed from a cost perspective,” Wood told FTW.
“Don’t count the people you get to,get to the people who count.”
Advertise with Cargo Info Africa +27 11 214 7324 [email protected]
FTW4684
JUly 2010 | 17
Tel: +27 31 561 6767 www.almar.co.za Container Sales and Leasing Solutions
“We value lasting relationships on a global scale”
MODULAR ACCOMODATION UNITS
FTW4754
Decisions on insurance cover should not be taken lightly.
“Cargo owners who rely on their logistic operators to insure their goods could face serious repercussions if the scope of their policies are not in line with the risks involved,” says Susan Duvenage, marine marketing manager for short term insurance operator Prestmarine International.
She believes the insurance broker should be actively involved with the logistics operator in structuring the correct cover for individual clients. “There should be explicit agreement that the policy is a contract between the cargo owner and the insurer, merely facilitated by the logistics operator,” says Duvenage.
“The type of cover, duration, and who is responsible for costs such as risk management and excesses should be agreed prior to
attachment of the risk.” According to Duvenage, agents
often find themselves under great pressure to enter into contracts which may contravene their standard trading conditions, leaving them liable for financial losses far exceeding the limits of their trading conditions.
“It is not only loss or damages to cargo that are at stake but also consequential delays following these events such as fines, penalties and loss of profits if deadlines are not met.”
She advises agents to ensure that they have consulted with their legal liability insurers if they enter into contracts that contravene their trading conditions.
“In the current economic enviroment criminals are ruthless. Armed robberies at warehouses as well as hijackings are reported daily, with the value of stolen cargo often exceeding millions.
“In addition, continuous labour disputes and strikes have resulted in malicious damage and delays causing serious trade disruption to the end receiver.”
Perishable cargo and goods ordered for a specific event like the current World Cup are especially at risk, says Duvenage. “For these, delay and loss of market is not automatically covered under a marine policy – additional cover must be arranged for such risks.”
Prestmarine is a short term insurance intermediary with facilities in place to cover marine commercial, personal and specialised liability lines.
Consequential delays need to be be factored in
‘Insurance cover must involve cargo owners’
Susan Duvenage … ‘Insurance broker should be actively involved with the logistics operator.’
FTW4781
523 Commissioner Street, Cementation Properties, Boksburg East Industrial, Tel: +27 11 914 4119, email: [email protected], www.cratelogic.co.za
CRATING, PACKING & EXPORT SOLUTIONS
18 | JUly 2010
Full truck loads throughout South Africa
Same-day deliveriesSpecial ProjectsClosed distribution from customer siteSophisticated vehicle tracking systemOwn dedicated fleetBBBEE
NGL Logistic Solutions +27 11 397 7369/86 ● www.ngllogistics.co.zaMark Scott +27 82 557 4869 ● [email protected] de Villiers +27 82 573 0595 ● [email protected]
FTW4734b
and neighbouring countries
johannesburg (head office)Tel: +27-11-552-8901 30 Graniet Road, Jetpark,Boksburg, 1459 e-mail: [email protected]
national tel: 08610 inter (46837)website: www.interlogistics.co.za
“the bitterness of poor service lingers long after the sweetness of competitive pricing”
cape town Tel no: +27-21-421-43811 harbour road, foregate square foreshore 8000e-mail: [email protected]
international freight forwarderLeave the fancy footwork to us
“the logisti cal solution”
dedicated to your every need
FTW4091
Freight Forwarding & ClearingWarehousing & DistributionSupply Chain Logistics Air, Sea, Road & RIB Project Cargo Cross Border
T +27 11 928 8365 E [email protected]
FTW4392
Johannesburg Cape Town Durban Port Elizabeth United Kingdom
BY Joy Orlek
In a move that could revolutionise the movement of bulk products by rail, logistics
innovator ICM Group has begun trials on its new ‘Skiptainer’ solution that could change the way rail is managed in South Africa.The prevailing consensus among industry sources is that South Africa’s reliance on road – due to the inability of rail to provide an efficient service – is driving up costs.
The Skiptainer, which is a combination of a skip and a container, is easy to fill and empty, easy to load and offload and can be transported on a flatbed rail wagon.
“The core focus at the start will be the minerals business, but once we get it into the market it will take on a life of its own,” says ICM Group CEO Kiall Marsh.
And customers have embraced
it with enthusiasm. “It has significant impact on their business – it means they can get to clients who don’t have a rail siding and it allows us to provide clients who can’t get enough bulk rail capacity with the capacity
they need.“It also has a double-edged
effect – the environmental impact of taking trucks off the road and the commercial impact in terms of reducing supply chain costs.”
A number of units have been
manufactured, trialled and marketed to some major clients who have given the company letters of intent in terms of utilising it.
ICM is however working with Transnet Freight Rail on the project and will only launch once all the processes are in place.
The company has commissioned 500 units, of which 80 are already available.
“Our initial maths estimates that cost saving will be in the region of 30% - which is substantial.”
The Skiptainer is the latest in a string of innovations introduced by the company, most recent among them the G-Track system.
Described as a fully autonomous remote monitoring system, it enables ICM to track movement of cargo during handling and transportation, tracking not only the precise location of the cargo, but every bump and vibration on all three axes.
‘Revolutionary’Cost savings in the region of 30% could be realised
The Skiptainer … a combination of a skip and a container, easy to fill and empty, easy to load and offload and can be transported on a flatbed rail wagon.
Skiptainer pilot begins
JUNE 2010 | 19
D00628 Cargo Ad (310x107)Rep 7/3/09 2:30 PM Page 1
Composite
C M Y CM MY CY CMY K
FTW1988SD
BY James Hall
The future of logistics is the box. Containers, reefers, crates – even breakbulk
must be enclosed by some portable conveyance with right-angled edges. New generation durable cardboards may prove a future material, but for now sturdy pine reigns, according to a firm that uses the wood for off the shelf and custom-made packing boxes.
“We deal with logistics companies, all kinds of firms actually. We’ve been called upon for some unusual and elaborate special orders,” said Coleen Watson, general manager of Crate Logic in Boksburg.
Watson is frank about the trickle down effect a recession-era shipping environment has had on shipping industry suppliers like hers. “Business has not been good, and doesn’t compare to last year at all. It’s a struggle every month to just hang in there but we really can’t complain compared to
other companies – we haven’t had downsizing or short weeks. Now we are seeing some orders, some nice big ones coming in,” Watson said.
The orders would have to be monumental to compare with a recent job at Richards Bay.
“We had an assignment for a chemical company, to dismantle and pack up a 45-tonne gas plant. We broke it all down and crated it. They rebuilt it elsewhere,” Watson recalled.
On the opposite end of the spectrum, an artist required a crate to transport an unframed oil painting to accompany him on a plane trip.
“It was so weird we won’t even call it a crate. It was a strange box. But it did the job,” Watson said.
The era of “one size fits all” crates seems to be over.
“They’re never ready made. We get the data for the shipment from the logistics company and we make it in the factory. The crate is assembled on site in kit form, or arrives fully assembled for packing,” said Watson.
Customisation is key when it comes to crating
“Our industry remains a system and process driven environment and continued development and improvement are therefore key,” said Gideon Botha, national operations manager at Kapele Freight.
“The success of our growth has been our dedication to a ‘customer focused’ approach, with highly competent and dedicated staff in all our business divisions. Our Level 1 BEE status combined with our extensive national and global infrastructure also contributes positively to our business success,” Botha noted. To this is coupled innovative products.
“We have recently developed a new ‘Rate Management System,’
which allows customers to complete a detailed door to door quote for all modes of transport within seconds. Ultimately, our customers see the benefits of improved turnaround times on estimates and transport mode comparisons,” Botha said.
Developing expertise in one particular industry can make a firm a formidable service provider to customers even during a recession. “We are strong in five verticals, with a solid customer base in these industries. Moving specialised commodities requires quite a lot of expertise because of the complexity, time sensitivity and tight deadlines due to the critical nature of these commodities,” said Botha.
New system provides speedy modal comparisons
After last year’s recessionary environment, business is looking positive, says Cargocare director Sue Wood, with most growth evident within the East and its major trading partners in the developing world.
“Certainly the traditionally strong euro trading zones are cooling
in what’s beginning to look like an even stronger East to West push. Suth African companies who continue to rely strongly on exports to Europe could be forced to reconsider their strategy as the region begins to count to the cost of a shrinking economy.”
‘Look East for growth’
20 | JUly 2010
on Projects into:
Durban:Tel: +27 31 465 7913Fax: +27 31 465 7903E-mail: [email protected]
www.rfbtrans.co.za
Tel: +27 11 396 9067/45Fax: +27 86 615 1947E-mail: [email protected]
FTW4154
FTW1721SD
The need for innovative supply chain solutions that reduce and ultimately eliminate waste
throughout the supply chain is now more critical than ever, says Cargocare director Sue Wood.
“It was clear from the end of the first quarter that the challenge for 2010 would be predominantly a financial one,” says Wood. “Despite the many other key issues set to challenge the logistics business in the next five years, the financial pressure seems to be creating a logistical environment that lends itself to the rapid development of supply chain initiatives.”
On the one hand you see service providers across the board taking extreme measures to try to improve on profits lost last year, while on the other there’s increasing price sensitivity from consumers, Wood points out.
“Clearly the strains brought to bear on carriers during the recent strikes locally have put a damper on the upward business trend, bringing threats of rate increases and surcharges both locally and globally.”
Sue Wood … ‘Threats of rate increases and surcharges both locally and globally.’
Financial pressuresdemand innovative thinking
BY James Hall
One barometer for measuring the fortunes of the logistics industry is in containers and their utilisation by shippers. By this measure “last year was a tough year all around,” said Warren Jacobs, sales manager for Durban-based Almar Container Group.
“We are a regular supplier to a number of logistics companies. We deal with them either on a sale or lease basis, where the majority of cargo is exported. A number of the containers are supplied on a sale basis where the container is ultimately utilised for onsite storage or conversion. We get a feel for the condition of logistics businesses from our customers. We are seeing an improvement in the movement of larger cargo volumes into Africa as a lot of companies are bouncing back after a slow period. With the
increase in overborder work, our forecast for growth is positive,” commented Jacobs.
That being said, the second half of the year looks set to be characterised by a container shortage. “We have regular suppliers for second hand containers, in certain shipping lines and leasing companies, but supply worldwide is tightening up and as the container shortage starts to take root we are seeing an increase in prices,” said Jacobs.
To ensure availability, new boxes manufactured in China are purchased.
“We have continued with our new-build programme in 2010 to supplement our lease fleet and to ensure availability of new equipment. There has been a significant price increase in new-build containers in the first half of 2010 and the trend looks set continue with prices rising further,” he noted.
Container demand pushes up prices
JUly 2010 | 21
Cape Town AirfreightJohannesburg Head Office
Cape Town Seafreight Durban Airfreight
Durban Seafreight East London
Port Elizabeth Pietermaritzburg
Pretoria Komatipoort
FTW1922SD
FTW1976SD
Reducing the cost of logistics is the clear objective of every participant in the
supply chain – and collaboration by all parties to identify areas of optimisation and cost reduction is increasingly being recognised as the means to this end.
“Collaboration,” explains Glenn Lawson, head of customer services at Core Freight Systems, “implies the sharing of information – and the efficient sharing of this data is generally a function of the information technology systems in place along the chain.
“This data should provide input to the decisions and subsequent action taken to optimise the movement of the goods,” he told FTW.
Supply chain executives should therefore be examining the attributes of the IT systems used within their areas of responsibility, says Lawson, “whether reviewing the system end-to-end or in the usage of the internal applications within their own organisations – and which are required to contribute to the
overall supply chain.” Core Freight Systems provides
a comprehensive software package for South African freight forwarding and customs clearing operations. “The application is designed to realise not only efficiencies in the traditional forwarding and clearing processing within an organisation, but to facilitate the interaction with other relevant third party applications in the overall supply chain as required. This enables their clients to participate through “collaboration” in order to optimise the logistics supply chain. This is achieved primarily through two modules of the CoreFreight suite, CoreQuery and CoreXchange,” says Lawson.
CoreQuery is an on-line internet-based application which shows the updated status of all shipments as processed through the CoreFreight application.
The CoreXchange functionality is designed to accommodate the efficient import and export of data from the CoreFreight database itself, he added.
Freight system facilitates collaboration along the supply chain
Glenn Lawson … providing a comprehensive software package.
Cargo Carriers has recruited 150 experienced drivers, and a further 25 people for management and supervisory roles to cope with growing volumes, according to marketing director Andre van Vuuren.
Thanks to new and renewed contracts, the first six months have already delivered a 40% growth in annualised income for the business, he said.
And in terms of growing market share, price isn’t the only issue by a long way. “Sure, it’s got to be competitive, but we find, especially in these unstable times, that a combination of financial stability and muscle, a rapidly improving BBBEE rating, and top scores for our SHEQ audits (Safety, Health, Environment and Quality).
Cargo Carriers records 40% growth
22 | JUly 2010
a level one B-BBEE company
Head Office: 5 Carlisle Street | Paarden Eiland | T +27 (0)21 511 9748 Airport Branch: Unit 1 | Aeropark | Aviation Crescent | Airport City Business Park
Airport Industria | Tel: +27 (0)21 386 6654/[email protected] www.capecrating.co.za
FTW4600
Our services: Crating, Packing, Container Loading & Unloading, Rigging,
Transport, Hazardous Packing, Project Cargo, Stevedoring, Lashing & Securing
We’ve earned our stripesthrough quality personalised service
Tel: (+267) 3923327 Fax: (+267) 3924913E-mail: [email protected]
ZEBRA SHIPPINGCall your Botswana partner
FTW2852Agents for
FTW4573
Tel: +27(11) 822-4111 Fax: +27(11) 822-4222 Email: [email protected] Web: www.cargocare.co.za
Your BEE Agency of Choice
uon
time u
as promised u as quoted u
BY James Hall
Abnormal transport has been struck by the ongoing recession like all other wings of the logistics
industry, where the work of any transport firm is tied to the productivity of its clients. A recent uptick in abnormal loads transported northward into Africa may signal improved conditions.
“It looks like business is picking up a bit. We’re seeing a slight increase in loads up into Africa – earthmoving machinery, heavy construction vehicles, machines and generators,” said Lampie Grobler of Fritz Kroon Transport in Pretoria, which has been handling overborder abnormal loads for nearly a decade.
“This year’s largest abnormal load
was an EH 3500 dump truck, completely assembled at 147 tonnes,” said Grobler of an order shipped to Zambia’s copper belt. Using South African drivers, Kroon also moves into DRC, Zimbabwe, Mozambique, Namibia, Malawi and Tanzania heavy equipment that is imported into South Africa or locally manufactured.
With an abnormal load, the challenge is to find cargo for the return trip.
“Most trucks come back empty, but we’ve built quite a relationship with our customers, so if they need something shipped down, we do it. We’ve moved mobile cranes, excavators, transformers from north to south,” said Botha, who advised that a firm needs a “hands on” approach to securing all necessary permits to ensure smooth passage.
Abnormals to Africaon the increase
One of the variety of abnormal loads transported by Frits Kroon ... the challenge is to find cargo for the return trip.
BY Gavin Barfield
In an example of teamwork and efficient logistics, Röhlig-Grindrod moved an enormous PET
(polyetheleneterapthalate) plant from Bellville, Western Cape, to the Middle East.
Getting the 1 722 cubic-metre breakbulk cargo to its destination
involved the purchasing and forwarding of 49 forty-foot containers, as well as the part-charter of a vessel.
Because of road embargoes on the movement of abnormal cargo during
the December and January holiday periods, the 18 breakbulk pieces were transported to the port within a 12-hour period to make the booked vessel.
Teamwork and efficient logistics …
JUly 2010 | 23
Hazardous Non Hazardous FoodgradeTank Containers Flexi Tanks
HANS CALITZ ( 021 9393144 * [email protected] central-logistics.co.za braidco.com
JOHN CONNOLLY ( 031 7763628 * [email protected]
FTW4596b
Specialists in software for Freight management
Shipping
Distribution
Warehousing
Logistics
FTW4232
Call ANTHEA +27 21 448 7203 Email: [email protected] www.macro.co.za
Service is our priorityThe preferred neutral transport supplier to SA’s biggest clearing
+ forwarding agents, importers and exporters
T +27 11 873-4786 F +27 11 873-6066
BEE ACCREDITED
Shipping & General Transport Nationwide Transport and Warehousing specialists
FTW4725
BY James Hall
The new ISO1772 requirements for containers exported by sea will force
shippers to take container sealing seriously. This is according to Kevin Norwitz, CEO of one of the country’s largest security seal manufacturers and distributors, Vikela Aluvin (Aluvin). The new rules, following those now enforced by US customs, are expected in the next few months.
“Increasingly, if a container arrives with an inappropriate seal, US customs will get involved because they see a need to inspect. A proper, conforming seal obviates this unnecessary delay as officials trust its ability to indicate
whether any tampering has occurred en route,” said Norwitz, adding that exporters should take care to confirm that their seal suppliers are genuinely ISO17712 compliant.
“Time is of the essence when exporting containers and everything possible should be done to expedite delivery to their ultimate destination, including using the correct security seals,” said Norwitz.
While some shippers are penny-pinchers when it comes to security seals, to their own detriment, the entire industry has been slow to adopt innovative electronic seals, which marry radio technology to standard bolt seals. For six years Vikela Aluvin has been developing, through its international partners, seals that provide tracing via real-time information through GPS/GMS.
“The problem is that no one really wants to be the first to implement. They perceive the cost
as being too high. But someone will realise that the cost of even this technology is low compared to the value of the contents of the container and will do it. Then we’ll see everyone getting on board. Everyone wants it but no one wants to pay. But with ISO17712, shipping lines could become increasingly obliged to bring conformity to container sealing, and the temptation to be “penny wise and pound foolish” could be diminished. This, in turn, could lead to a proliferation of electronic sealing,” Norwitz said.
‘Customs won’t stop containers with conforming seals’
Correct security seals speed up the logistics process
Kevin Norwitz ... ‘Cost of technology is low compared to the value of contents of the container.’
‘Providing tracing via real-time information through GPS/GMS.’
24 | JUly 2010
FTW1876SD
WAREHOUSING
Johannesburg Cape TownTel +27 11 979 0853 +27 21 905 1250 Fax +27 11 979 0660 +27 21 905 0188
Email [email protected]
FTW4589
Marine and General Short Term Insurance Specialists
www.prestmarine.co.za
e-mail: [email protected]
FTW
3603
Prestmarine InternationalFSP Ref No: 165
BY Joy Orlek
The global recession has taught the industry one of its most valuable lessons, in
the view of ICM Group CEO Kiall Marsh – that there’s far too much fat in the supply chain.
“Companies are trying to find ways of taking waste out of their systems,” says Marsh, “and one of the areas where there was a huge amount of fat was the fourth party logistics (4PL) arena.
“We’ve seen a growing awareness of the value of dealing with someone who physically does the work on a 3PL basis but who also has the expertise to offer the 4PL-type of consultancy services and information.”
By dealing with the people who physically do the work, you effectively eliminate a huge amount of waste out of the system, he said.
“The recessionary climate is also forcing the 3PL companies to improve their service offerings. In fact it’s a wonderful way to shake the supply chain right.”
And while the past year has been a challenging one for all, Marsh believes it has also offered wonderful opportunities – “and our business has grown as a result.”
This despite the key challenges facing the logistics industry, not least of which was the recent Transnet strike.
“And the challenge is not just the strike period but the ripple effect it sends to the market once
the strike is over. Once vessels start to sail again, you alleviate the bottleneck at the port and that moves up the supply chain to the roads, rail, packing and up to the Reef. The industry continues to feel the effects several weeks down the line.”
Recession shakes up the industry
Taking the fat out of the supply chain
Kiall Marsh … ‘Forcing 3PL companies to improve their service offerings.’
‘Growing awareness of the value of dealing with someone who physically does the work on a 3PL basis.’
JUly 2010 | 25
FTW1980SD
FTW1754SD
BY James Hall
Namibia’s road infrastructure is up to the job of handling increased volumes required
by the country’s trio of transport corridors, and border operations with South Africa are easing the flow. If only the other border posts were as efficient, local logistics firms have said.
“Namibia is fairly stable in terms of logistics. Definitely the investment in roads is paying off. Because of the infrastructure I won’t say you’ve got guarantees but you’re pretty much sure when loads and vehicles will arrive. The challenge we are facing are border post issues not with South Africa but other African countries,”
said Nic Hendrikse of the Namibian logistics firm FP du Toit.
For now, the solution to border post crises is to have a troubleshooter on the scene to handle issues that arise.
“What we’ve been doing on our side is appointing agents at various border posts, and using them to speed up the process. We are also trying to convince clients receiving shipments in those countries that they need to appoint clearing agents on their side of the border,” Hendrikse said.
Realising the expense of a clearing agent is outweighed by potential losses from delayed shipments, customers are cooperative. “They have no problem with that,” said Hendrikse.
Speeding up border procedures smooths the flow
Green issues influence new refrigeration systemsBY James Hall
“Activity has picked up tremendously in comparison with last year,” says Ilse van der Merwe of GEA Refrigeration Africa, speaking from the Cape Town headquarters of the firm that engineers and designs refrigeration systems and facilities making use of these systems.
“We’ve seen the perishable warehousing industry demonstrate quite a bit of growth, and the prospects are looking good for the rest of the year,” she said.
“We deal with the entire country and we have seen a number of larger firms like supermarket chains making substantial investments in their logistics networks through the construction of refrigerated distribution centres over the past year or two. Smaller
distributors are also constructing distribution centres for their goods,” said Van der Merwe.
“In our transport division we are consolidating the refrigeration units on the market now to fewer numbers that make the selection easier and more cost efficient for the customer,” Van der Merwe said.
These vehicles are also using recently introduced environmentally friendly refrigerants. The logistics industry demand for green products is also reflected in other product lines.
“We have also consolidated our models on the industrial side. Our new V series compressor range offers 20% more cooling capacity in terms of the same energy usage as earlier models,” Van der Merwe noted.
Namibia's investment in roads pays off
26 | JUly 2010
Your safest bet for Warehousing Cargo
IndustrialWarehousing
24-Hour Operation
Tel: +27 (31) 465 8310 Fax: +27 (31) 465 8329E-mail: [email protected] www.roheksa.co.za
FTW4423
l Containerised Cargol Break Bulkl Hazcheml Express Deliveriesl Abnormal Loadsl Cross Borderl Vehicles of all sizes
Your Cargo Our Business
HENDOR 4363670861
FTW4610
T +27 31 205 5007 F +27 31 205 2177E [email protected] [email protected]
www.sa-il.co.za
we measure twice,cut once
● Local Cartage ● Long Distance Road
● Rail ● LCLs● Breakbulk ● Processing of CTOs
FTW3968(b)
BY Alan Peat
A regional freight company recently played a vital role in relocating 22 black rhino into a
Zambian national park.“This was the result of a
complicated game swap agreement between SA, Namibia and Zambia,” said Adrian Friend, SA-based MD of Celtic Freight.
The company’s Zambian operation was contacted earlier this year by the Frankfurt Zoological Society to assist with one of its projects, he told FTW, which saw the North Luangwa National Park being restocked with the black rhino.
“The plan was to airfreight the final five rhinos from Durban,” Friend added, “and heavy rigging equipment and crane trucks were needed at the bush airstrip and boma to offload and relocate the rhino.”
This saw Celtic Freight moving rigging equipment, trucks, spares, tools, and workshop staff along dirt roads, river crossings and a steep escarpment into the Luangwa Valley.
“On the morning of the move
tension mounted amidst the dust and heat, with the SA and British ambassadors having arrived by small aircraft to join the local authorities and dignitaries there to view the spectacle.”
News of the successful departure from KwaZulu Natal’s new King Shaka airport of the Safair C130 Hercules with the five rhino on board was passed around, with a planned arrival at 12:30 at the Lubanga airstrip.
“The spectacular site of an aircraft that size landing on a tiny dirt strip was something to behold,” Friend said. “Clouds of dust, the noise of the engine brakes, together with the cheering of the crowd, waiting for the arrival of the final rhinos in this ambitious seven-year project.”
This was when the rigging and transport job really started – with the crates containing these 1.3-tonne, rather bad-tempered beasts, being slid out of the rear of the aircraft, manhandled to a tractor-pulled trailer, and then rigged on to the waiting trucks to ferry the short distance to the rhinos’ holding bomas.
“The rhino experts advised us that
it was essential to keep voices to a minimum, to prevent the animals panicking,” said Friend. “The National Geographic film crew on site making a documentary of the whole movement advised that it was the first ‘silent’ rigging operation they had witnessed – with hand signals and facial expressions used to get the job done.”
The next morning was the task of getting the rigs back up the Luangwa Escarpment – with chains, winches and a grader all assisting in the four-hour battle over some 50 kilometres.
“This was achieved without mishap,” said Friend, “and the trucks, staff and equipment all returned safely to the Lusaka base.”
Heavyweight logisticsoperation comes up trumps
Rigging equipment in place at the airfield in time for the project.
JUly 2010 | 27
simpler • better • smarter
+27 11 706 3545 www.corefreight.com
“Facilitating Collaboration in the Logistics Supply Chain”
FTW1986SD
BY Ray Smuts
It’s a harsh reality that as successful as ostrich meat has become, and continues to be
despite depressed conditions, ostrich skin exports have taken a knock, ascribed to a general fall-off in demand for luxury goods, including high-fashion leather handbags, boots and gloves.
In good years, the annual export revenue split between meat and skins would be 50/50 for South Africa’s R1.2 billion a year ostrich export industry, around R600 million each, but Dr Francois de Wet, MD for Mosstrich, a leading ostrich exporter, points out that demand for leather is down at least 20% over the past year.
What is more, much like South African exporters, the ostrich sector has had to struggle against a relentlessly strong rand currency which shows no sign of relaxing in the foreseeable future.
“We tend to forget that in September last year we had budgeted for R11.40/euro because the rate at that stage was R11.50/euro.
“As we know, the rate went down to R9.30/euro and then up to around R9.50/euro, so percentage-wise we are between 15% and 20% down on bottom-line.”
De Wet explains that the unsatisfactory exchange rate notwithstanding, the industry is obligated to pay a rather high price for meat in order for the producer to remain on the farm rather than quitting and taking up another farming pursuit.
“We buy the whole bird from the farmer and pay according to carcass weight and skin quality but because the demand for luxury leather goods has dropped drastically, we are probably paying 40% less for skins than two years ago.”
Given that ostrich feathers
only realise about 10% of export revenue and the depressed leather market, that leaves only meat, for which Mosstrich is still paying based on an exchange rate of R11.40/euro.
“That,” says De Wet, “is our predicament. Even though international demand for ostrich meat has remained strong over the past two years and the euro prices earned are stable, when we convert euros to rands, we are earning far less.
Mossel Bay-based, Mosstrich, won the ‘Open’ category of the Absa Cape Regional Chamber Exporter of the Year Award last year.
In 2008, its tenth anniversary, the company had increased export turnover by 67%, which was to increase by another 7% to R325 million in 2009.
Among its export achievements is individually packed special ostrich steak portions for big restaurant groups in Europe, packing for the French retailer, Picard and supplying such Belgium retail chains as Delhaize and Makro.
The company has diversified its export meat range to also include South African game meat such as springbok, blesbok, kudu, wildebeest and eland, springbok kebabs going down particularly well with Swiss retailers.
The European meat market requires very strict quality and hygiene controls and Mosstrich has in he past few years been audited twice by EU inspectors, with positive feedback.
As overseas supermarkets have become more insistent on quality and hygiene certification, Mosstrich has achieved full HACCP accreditation and become the first ostrich/game abattoir with A-grade BRC (food safety) accreditation,
thereby strengthening its position as a preferred supplier.
Jimmy Wright, Mosstrich’s marketing manager for ostrich meat, points to the importance of having good logistics partners to enable it (Mosstrich) to extend the high service levels to ensure total customer satisfaction.
Mosstrich has forged relationships with Morgan Cargo, which handles all air shipments, Röhlig Grindrod, which is charged with seafreight forwarding and Safmarine which handles the ocean freight.
“Our successful partnerships with these logistics companies entails a thorough understanding of each other's business procedures, good working ethic, solid personal relations, knowledge of our ostrich and game industry and sound communication,” says Wright.
“They are our long-term partners and act as an extension of our company, doing the job of getting our cargo to our customers in superb condition, at the right place and on time every time.”
Exchange rate knocks ostrich export industry
Francois de Wet ... ‘When we convert euros to rands, we are earning far less.’
28 | JUly 2010
Almar Container Group ...........17African Cargo Management ...............................7Aquarius Shipping ...................13Associated Marine ...................25Cape Crating ............................22Cargo Care Freight...................22Cargo Carriers ..........................19CAT-WWL Logistics .................3Central Logistics ......................23Compu-Clearing .........................2Core Freight Systems ...............27Crate Logic ..............................17DHL Express ..............................5
Edgin Logistic Solutions ..........20Excellence Forwarding & Logistics ...............................15FP du Toit Transport ................ 11Falcongate Logistics ..................8First Class Logistics ...................6Freight IT .................................18Freightmax .................................1Frits Kroon Transport ..............24GAC Laser ...............................21GEA Grenco ...............................6GMA Logistics ...........................7Greendoor Logistics ...................9Hendor Transport .....................26
ICM Holdings ......................... 11Inter Logistics ..........................18Improvon ..................................14Kingfisher ..................................6Kintetsu World Express .............4Kwela Logistics .......................24Leo Shipping Services ...............3Lombard Insurance Company ............................... IBCMacro 2000 ..............................23MSC Logistics .........................10New South Africa Shipping .....12NGL Logistics .........................18Prestmarine International .........24
Reddy Cargo Services ..............28RFB Logistics ..........................20Rohek ......................................26Röhlig-Grindrod .......................21Safmarine .................................12SDV South Africa ..................IFCShipping & General Transport ..................................23South Africa Inland Logistics ........................26United Maritime Logistics .......25UPS .....................................OBCVikela Aluvin .............................8Zebra Shipping .........................22
Advertisers' Index
Domestic & Overborder
Abnormal Loads
Warehousing
Crating and Fumigation
Packing/Unpacking containers
Hazchem compliant
Your full landside logistics link
JOHANNESBURG: 011 021 5214-8 DURBAN: 031 206 2910/[email protected] [email protected] [email protected]
SERVING SOUTH AFRICA
FTW4765
Röhlig Grindrod's Longmeadow warehouse, equipped with internet connectivity, provides
state-of-the-art service, says marketing officer Lia Liebenberg. The 5000 m² facility has inventory control system scanning equipment in place, as well as the latest alarm system and closed-circuit TV cameras that monitor 16 areas inside and out.
Three electronic scales are installed,
and dock levellers are in place at five loading bays, which can accommodate trucks from one-tonners to Super Links. 20ft to 40ft containers’ palletised or loose cargo can be packed and unpacked on site, while battery-powered forklifts can heft up to 4.5 tonnes.
Already a variety of cargo has been handled at the facility, from building materials and vehicles to clothing and foodstuffs.
Warehousing with a difference
BY James Hall
When times get tough, the tough cut prices, hoping they can muscle out the competition by offering low-cost service. But when service quality suffers as a result, it’s not just the company’s reputation that takes a hit but the entire logistics industry’s credibility is lessened.
“We managed to keep our heads above water last year. There was a hell of a lot of competition that led to the cutting of rates. What this has done is drop overall rates in the market quite dramatically and it is always difficult to bring prices back up again,” said Warren Jayes of Leo Shipping.
As volumes increase again, profits will increase, but this will take a while, he believes.
In the meantime, his firm continues to operate on
its primary route bringing commodities by road out of Zimbabwe to Durban for export by sea.
“The (Zimbabwe) cotton harvest is up 30% over last year, when our company alone moved 16 000 tonnes of cotton. We expect a bumper crop this year, so we expect to move the same amount or more this year. Off season, though, we seek various other commodities for the route,” Jayes said.
He sees some light at the end of the recessionary tunnel. “As much as people are complaining about the economy, this year is better than last. We had a pretty good year last year and it has continued this year, but the overall industry has suffered and we are concerned because we are a part of that industry,” Jayes noted.
‘Cut prices equal cut service levels’
The 5000m² facility in Longmeadow
Lombard literally takes the load off your back by
providing all the guarantees you require to move cargo.
We cater for the full bouquet of Customs & Excise bonds
– Transit, Deferment, Bonded Warehouses etc - and
understand the complexities of this essential statutory
environment. A Lombard Guarantee wil l also give you
the security required to establish credit facil it ies for
Port dues, Rail costs, Air Cargo charges and even
Fuel usage. If you are in the business of clearing,
forwarding or moving Cargo – speak to our people.
Physical Address: Ground Floor, Building C, Sunnyside Office Park2 Carse O’ Gowrie Road, Parktown, 2193, Johannesburg, South Africa
Phone: +27 (0) 11 551 0600 Fax: +27 (0) 11 551 0676 www.lombardins.com
Customs and Excise Bonds Credi t Insurance Trade F inance Construct ion Guarantees Min ing Rehabi l i tat ion Guarantees Fuel Guarantees Ut i l i ty Guarantees
Guaranteed to keep your business moving, night or day
Tim
esqu
are
9763
9763 Freight & Trading®.indd 1 5/15/09 10:47:21 AM
FTW1694SD
MCC
AN
N E
RIC
KS
ON
116542FTW
1473SD
![TRANSNET PORT TERMINALS Notices... · TRANSNET PORT TERMINALS An Operating Division of TRANSNET SOC LTD [Hereinafter referred to as Transnet] Registration Number 1990/000900/30 REQUEST](https://static.documents.pub/doc/80x56/600560c52af56b6cdb7b80d6/transnet-port-notices-transnet-port-terminals-an-operating-division-of-transnet.jpg)
