The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscription FRIDAY 28 May 2010 NO. 1912 FREIGHT & TRADING WEEKLY Import and Export Consolidations by Sea and Air FTW0390 Spain www.hartrodt.com Jnb: Tel: (011) 929 4900 Fax: (011) 397 4221 e-Mail: [email protected]Dur: Tel: (031) 584 6381 Fax: (031) 534 6380 e-Mail: [email protected]Cpt: Tel: (021) 380 5860 Fax: (021) 386 2498 e-Mail: [email protected]Plz: Tel: (041) 581 0696 Fax: (041) 581 0715 e-Mail: [email protected]TRANSPORT IS OUR BUSINESS FTW1856SD RFA draws up anti-toll-road petition BY Liesl Venter Truckers will have no choice but to head for the secondary routes if toll fees planned for Gauteng amount to some R3.50 per kilometre. With the trucking industry in the process of putting together a petition against the planned new tolls for Gauteng, they say if the prices remain this exorbitant they will have no choice but to use the already strained secondary road network. From April, Gauteng will have some 40 new tolls across its freeways from Soweto to Sandton, from the West Rand to the East. Truckers are expected to be tolled seven times more than light vehicles and tolls are expected to be erected every ten kilometres. Gavin Kelly, spokesman for the Road Freight Association (RFA), says they have called on their members to assist with information in an effort to estimate the impact of the new toll fees and a petition is being drawn up. “We believe the toll fees, expected to be in the region of R3.50 per km for truckers, are exorbitant and will negatively impact on the economy. We have asked our members to send us their views and opinions on the proposed fees – once we have all the information we will take it to the Department of Transport and the South African National Roads Agency.” While actively campaigning against the proposed toll fees, Kelly admits they may be fighting a losing battle. “We have been in conversation with Sanral for years. The argument given is that the improvements on the freeway must be paid for and an open tolling system is the ideal way.” He says part of the problem is that there is no real clarity around what to expect come April 2011. “That is why it is important we put a case together and prove to them the impact of these tolls on the economy.” In the meantime a very real concern is that truck drivers, To page 24 Shippers pay the price as unions step up the pressure Major lines announce congestion surcharge BY Alan Peat One union may have capitulated and signed an agreement with transport parastatal Transnet to end a strike that has left importers and exporters facing a massive crisis, but the SA Transport Allied Workers Union (Satawu) is adamant it will not give in. Athough the United Transport and Allied Trade Union (Utatu) signed a pay increase deal, which saw the union’s workers return to work on Monday 24 May, the more aggressive union, Satawu, has refused to sign – and has promised to extend the strike by calling for sympathy strikes from other Cosatu To page 24 Union members are adamant they will not sign a Transnet deal, resulting in ongoing strike action.
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The Freight Community’s Weekly Newspaper for Import / Export decision makers – on subscriptionFRIDAY 28 May 2010 NO. 1912
RFA draws up anti-toll-road petitionBy Liesl Venter
Truckers will have no choice but to head for the secondary routes if toll fees planned for Gauteng amount to some R3.50 per kilometre.
With the trucking industry in the process of putting together a petition against the planned new tolls for Gauteng, they say if the prices remain this exorbitant they will have no choice but
to use the already strained secondary road network.
From April, Gauteng will have some 40 new tolls across its freeways from Soweto to Sandton, from the West Rand to the East. Truckers are expected to be tolled seven times more than light vehicles and tolls are expected to be erected every ten kilometres.
Gavin Kelly, spokesman for the Road Freight Association (RFA), says they
have called on their members to assist with information in an effort to estimate the impact of the new toll fees and a petition is being drawn up.
“We believe the toll fees, expected to be in the region of R3.50 per km for truckers, are exorbitant and will negatively impact on the economy. We have asked our members to send us their views and opinions on the
proposed fees – once we have all the information we will take it to the Department of Transport and the South African National Roads Agency.”
While actively campaigning against the proposed toll fees, Kelly admits they may be fighting a losing battle. “We have been in conversation with Sanral for years. The argument given is that the improvements on
the freeway must be paid for and an open tolling system is the ideal way.”
He says part of the problem is that there is no real clarity around what to expect come April 2011. “That is why it is important we put a case together and prove to them the impact of these tolls on the economy.”
In the meantime a very real concern is that truck drivers,
To page 24
Shippers pay the price as unions step up the pressureMajor lines announce congestion surcharge
By Alan Peat
One union may have capitulated and signed an agreement with transport parastatal Transnet to end a strike that has left importers and exporters facing a massive crisis, but the SA Transport Allied Workers Union (Satawu) is adamant it will not give in.
Athough the United Transport and Allied Trade Union (Utatu) signed a pay increase deal, which saw the union’s workers return to work on Monday 24 May, the more aggressive union, Satawu, has refused to sign – and has promised to extend the strike by calling for sympathy strikes from other Cosatu
To page 24 Union members are adamant they will not sign a Transnet deal, resulting in ongoing strike action.
FREIGHT & TRADING WEEKLY DUTY CALLS
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
Now Media Centre 32 Fricker Road, Illovo Boulevard,
Illovo, Johannesburg. PO Box 55251, Northlands,
2116, South Africa.
2 | FRIDAY May 28 2010
Proposed creation of a rebate ItemOn 21 May 2010 an application appeared in respect of the proposed creation of a rebate item (also known as a Rebate Provision) for: (i) Blends of complex petroleum hydrocarbons, classifiable in tariff subheading 2710.11.90 for use as plasticizers in the manufacture of synthetic rubber, classifiable in tariff heading 40.02; and (ii) Blends of complex petroleum hydrocarbons, classifiable in tariff subheading 2710.11.90 for use as plasticizers in the manufacture of pneumatic tyres, classifiable in tariff heading 40.11.
Comment is due by 04 June 2010.
Proposed reduction in the rate of dutyComment is invited in respect of a notice that appeared in respect of proposed reduction in the rate of customs duty (duty) on pistons, whether or
not fitted with gudgeon pins, piston rings or cylinder liners or sleeves, for motor vehicle engines, classifiable under tariff subheading 8409.91.27.
Comment is due by 04 June 2010.
Sunset review anti-dumpingOn 21 May 2010 a notice appeared in respect of the initiation of a Sunset Review of the anti-dumping duties on acetaminophenol originating in or imported from the People’s Republic of China and the United States of America.
The application was lodged by Fine Chemicals Corporation (Pty) Ltd, which alleges that the expiry of the anti-dumping duties in respect of acetaminophenol, classifiable under tariff subheading 2924.29.05, would likely lead to the continuation or recurrence of dumping and the recurrence of material injury.
Comment is due by 28 June 2010.
Imminent lapse of anti-dumping dutiesComment is invited in respect of a notice that appeared in respect of the imminent lapse of anti-dumping duties for: (i) Chicken meat portions originating in or imported from the United States of America (USA) – 0207.14; (ii) Carbon black originating in or imported from Thailand – 28.03; (iii) Paperboard originating in or imported from South Korea (Korea) – 4810.92; and (iii) Drawn glass and float glass originating in or imported from Indonesia – 7005.29.
Manufacturers in the Southern African Customs Union (SACU) of any of the aforementioned products are required to submit a duly substantiated information, indicating that the expiry of the anti-dumping duty would likely lead to the continuation or recurrence of dumping and material injury. Comment is due by 30 June 2010.
Electricity levy rule amendmentThe South African Revenue Service (SARS) published proposed draft amendments to the Customs and Excise Act (“the Act”), and in particular its rules and schedules in respect of the electricity levy (environmental levy).
The proposed amendments are in respect of: (i) Schedule No.1 Part 3B – notes – environmental levy on electricity generated in the Republic (South Africa); (ii) Schedule No.1 Part 4 – item 680.04/148.01/01.00; (iii) Section 54F – rules – electricity levy (environmental levy); (iv) Form DA176 – electricity levy account; (v) Form DA185.4A12 – registration (electricity levy); and (vi) Form DA185.4B2 – licensing (electricity levy).
Comment is due by 04 June 2010.
Note: This is a non- comprehensive statement of the law. No liability can be accepted for errors and omissions.
A wEEkLY summary of the main changes to the South African tariff dispensation and amendments to customs and excise legislation. Email [email protected].
FTW4724
FRIDAY May 28 2010 | 3
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Sunter warns of impact of deteriorating infrastructureTime for logistics companies to strategise for post-recession environmentBy Liesl Venter
The oil-price and the country’s deteriorating infrastructure are two very real factors all logistics companies should be factoring into their annual strategies, says scenario and futurist planner, Clem Sunter.
Speaking at a breakfast organised by The Chartered Institute of Logistics & Transport (Ciltsa) in Johannesburg recently, Sunter said it was important for all companies – not just in South Africa, but also across the globe – to look at their relevance in a post-recession economic environment.
“Logistics and transport companies must ask themselves how their industry and business have changed in the past five to ten years, what is the relevance of their existence at present and then also what is the company’s relevance into the future.
Once you have the answers to these fundamental questions you can realistically draw up a strategy taking you beyond 2010.”
He said the deteriorating infrastructure was a very real threat at present that all companies doing future planning should be taking into account and dealing with now. “What are you as a transport business going to do, but also how are you as an industry going to deal with the lack of infrastructure in the coming years?” he asked.
Sunter told delegates that with most future scenario planning there was always the possibility that the threat could and would be addressed – in the case of infrastructure the government might fix it – but that it was important to be ready when it happened.
“It comes down to being able to look at one’s environment, planning as
much as you can for future scenarios and then having the savvy and ability to respond to developments as and when they happen.”
According to Sunter a very real threat for logistics companies will be the oil price, which has in recent years rocketed to more than a hundred dollars a barrel. “While it has stabilised around $80 per barrel there is one scenario saying that in the next ten years oil could increase to $200 per barrel. That is not necessarily going to happen, but do you as a business have a plan, a strategy in place to be able to deal with this scenario should it transpire?”
He said companies putting together strategies beyond 2010 should be taking energy chains into context. “If the recovery continues well all indications are that the oil price will increase.
Using energy chains more efficiently will be crucial and companies looking at
strategies beyond 2010 must factor this component into their planning.”
Clem Sunter ... ‘Look at your relevance in a post-recession economic environment.’
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Shipping lines’ right to ‘cut-and-run’By Alan Peat
For cargo owners asking what is to happen with their products that are on the way to SA by sea, there’s a simple answer.
If the line doesn’t decide to leave its ship anchored off its SA destination port, you can expect your cargo to be dumped off anywhere that the shipping lines choose, waiting until it can be moved to SA at a later date.
And you have no legal rights
to sue the lines for any delay or other loss.
It falls under the legislation referring to the lines’ rights to “cut-and-run”.
These are typical bill of lading (BoL) clauses that would protect carriers should they wish to indulge in that “cut-and-run”.
Transnet has declared the strike as “force majeure”.
And the appropriate clauses in the BoL say: “Force Majeure shall include, but not be limited
to, work stoppages, civil commotion, strikes, accidents, casualties, lockouts, fire, transportation disasters, acts of God, governmental restraints (including governmental import restrictions and voluntary quotas arising from the threat of governmental restraints), war or hostilities, embargoes or other similar conditions.
“If at any time the performance of the contract
evidenced by this Bill is or is likely to be affected by any Force Majeure hindrance, risk, delay, difficulty or disadvantage of whatsoever kind which can not be avoided by the exercise of reasonable endeavours, the Carrier (whether or not the transport is commenced) may without notice to the Merchant treat the performance of this Contract as terminated and place the Goods or any part of them
at the Merchant’s disposal at any place or port which the Carrier may deem safe and convenient, whereupon the responsibility of the Carrier in respect of such Goods shall cease. The Carrier shall nevertheless be entitled to full freight and charges on Goods received for transportation, and the Merchant shall pay any additional costs of carriage to and delivery and storage at such place or port.”
Weighing solution not found overnightAs part of its study of issue of misdeclaration of container weights, Transnet is presently investigating a weighing solution using the recently installed
Navis computer system, according to Mark Wootton, executive manager of ICT Capital Projects and Technology.
“When we looked at this
previously with the Cosmos software it was not possible,” he told FTW. “However, we are confident that we will be able to move forward once Navis is live in all sites.”
But it can’t be expected to be found overnight, Wootton added.
“The exact timing and availability of the solution is still to be determined,
so we would caution against expecting it to be operational in the short-term,” he said.
“Once we have more information it will be provided.”
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Experts debate answer to overloading conundrumStraddle carriers at SA ports fitted with appropriate weighing devices By Alan Peat
It is two years since the International Chamber of Shipping (ICS) and the World Shipping Council (WSC) published guidelines for the safe transport of containers by sea.
In this, these two august bodies (the WSC, for example, represents lines controlling approximately 90% of the global liner vessel capacity) stated categorically that overloading of a container was something that can never be condoned.
The publication went on to say that the party packing the container was responsible for ensuring that the gross mass of the container was in accordance with the gross mass given on the shipping
documents. Furthermore, the guidelines stated that terminal operators should verify the weights of incoming containers before they were loaded.
But, two years later, it seems that no steps have been taken to enforce these recommendations, according to Shippers Voice (SV) – an independent freight industry information portal and networking site.
This despite the fact that few would deny that the weighing of all containers before they are loaded on board a vessel would represent a major advance in improving vessel safety.
Also, with manufacturers of container handling equipment having been busy developing ways of automatically weighing
containers this should be a fairly straightforward practice.
So, asked SV editor, Dr Andrew Traill, how long might it be before this happens?
Looking at the local scene, Peter Newton, director of Seaboard and Cape Town port users’ spokesman, told FTW he agreed with Traill’s sentiments.
“This is a universal problem,” he added, “and the only (practical) way of
dealing with it is to have terminal operators weigh the boxes on arrival.
“Many are equipped to do this, even if they do not/will not utilise the facility. That’s the case here in SA where the container terminals are state-owned and operated – although the wind may be changing.”
The point is that the latest container straddle carriers at the SA ports are fitted with appropriate weighing devices – intended to automatically trim the carrier to the load it has to lift.
FTW asked Kevin Martin, MD of Freightliner and chairman of the SA Association of Freight Forwarders (Saaff) truckers’ division – the Durban Harbour Carriers Association: Why not
use these to check for overloading?
“This is something we’ve put to Transnet Port Terminals (TPT) on a number of occasions. It seems only sense that – as they have these weighing devices fitted to all the latest straddle carriers – they should link this weight measurement to the documentation in their system.”
Certainly, you’d need an assized weighbridge before you could invoice for a verified overweight container, Martin added.
“The machines are not that accurate,” he said. “But they could certainly show which boxes are seriously overweight – and this would be a major safety contribution for the road trucking and shipping industries.”
‘This is a universal problem. The only way of dealing with it is to have terminal operators weigh the boxes on arrival.’
6 | FRIDAY May 28 2010
FTW1945SD
Citrus exporters shift to breakbulk to avoid strike delaysMiddle and Far East markets a challengeBy James Hall
The adaptability of SA citrus exporters to shift from containerised to breakbulk shipping has ensured largely uninterrupted shipping to the key markets of Japan, Russia, the US and most of Europe, the Citrus Growers’ Association told FTW.
“Citrus to these markets is currently being shipped out in specialised reefer ships where there is little or no effect from the strike as fruit terminals continue operations unabated. The
shipping lines are chartering specialised reefer ships to handle breakbulk because growers can’t get their reefers out,” Mitchell Brooke, logistics co-ordinator for CGA, told FTW.
Brooke said that citrus exiting all four SA ports has been shifting from containers to breakbulk as additional reefer vessels are being put into service for the biggest market, the EU.
“It is quite a relief to the industry that breakbulk can respond to demand at such short notice,” Brooke said.
A CGA survey found that there was still spare storage capacity for citrus products at all of the major ports’ cold stores. This has meant that citrus packing has not been disrupted.
“Western Cape cold stores can be used should fruit need to be diverted if cold store capacity in Maputo, Durban and Eastern Cape suddenly runs short,” Brooke said.
However shipments to the Middle East and Far East are still a challenge.
“We have learned that some reefer ships to bring
citrus in breakbulk to the Middle East have been put into service. But for the Far East there appears no short-term solution,” Brooke said.
As a result, shippers to the Far East are keeping their fruit on the trees, and pickers have been temporarily withdrawn from the groves.
“Citrus is the hardiest of fruit. They can stay on the trees or even in cold storage for long periods and their integrity won't be compromised,” said Brooke, who noted that keeping oranges, lemons
and grapefruit on trees was preferable to paying cold storage fees.
Such fees are also avoided by shippers who packed Middle East-bound reefer containers last week, and whose boxes languished portside this week, their contents safe for now. Unknown is when these boxes will make their way to their destinations. Brooke said interruption in deliveries and potential loss of markets might be the Transnet strike’s legacy that most worries SA citrus shippers.
2010 packaging sales steadyIf the sale of pallets and packaging (like tyres and spare parts) are barometers of the strength of SA shipping and warehousing activity, then 2010 can be read as an about average year according to packaging firms contacted by FTW.
In fact, after last year’s sales, which were also about normal, companies that sell pallets, from cardboard to plastic as well as the traditional wooden types, were anxiously eyeing that status of exporters’ contracts for 2010 to gauge their own fortunes this year.
“Orders from perishable shippers are average, and this means that harvesting
is continuing and the product if not shipped overseas is still transported somewhere,” said the operations manager of one packaging material firm that prefers not to reveal sales figures.
Whether product is exported abroad or alternative markets are found domestically or regionally, the product still requires boxes and pallets to store and move around, it seems, and the ongoing recession has not greatly affected that.
“The packaging business is obviously not recession proof – no business is isolated from trends in commercial activity – and orders have fluctuated
since 2009, but overall the industry is weathering the down times,” a source told FTW.
Zim retains ban on SA animal importsBy Alan Peat
The ban in Zimbabwe on all imports of animal and animal products from SA is still in place, according to a business executive with extensive interests in Zimbabwe.
This followed extensive efforts to try to get some form of official notification from Zimbabwe’s ministry of agriculture or the customs authorities.
The ban was originally imposed on March 30, and, according to the ministry, was because of reports of a series of outbreaks of Rift Valley Fever in the Gauteng, Eastern Cape and Free State provinces in February.
The SA Association of
Freight Forwarders (Saaff) told FTW at the time: “We understand that the ban covers all animal and dairy products” – which would include beef, milk (in all forms), cheese, butter, yogurt, dairy juices, ice-cream, chocolate, chickens, table eggs, hatching eggs, pork products, salamis, pies, processed meats, tinned goods (beef, ham, meatballs, Viennas) and even fish.”
The ministry of agriculture also said that the ban was “a temporary and precautionary measure and will be lifted once the situation is addressed in SA” – and that it was “working together with the SA government” on the issue.
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Groupage operator specialises in West African marketTargeting cargo from Far East and IndiaBy Liesl Venter
Ten months since its launch, Afrilog Groupage Services is finding strong support for its specialist West Africa service.
“We realised it was a bold move starting a new venture in the midst of a global recession, but the economy was already turning and it seemed like the right thing to do,” says business development manager Simon Busang.
The company specialises in concessions to West Africa, a market traditionally serviced by Europe.
“South African companies traditionally favour business with East Africa and the SADC countries. We identified a market opportunity in West Africa and have
consciously marketed to clearing and freight forwarding companies who want to move cargo to this region of Africa,” says Busang.
“West Africa poses several challenges of which the first is no doubt the fact that the area has been dogged by political instability. Also it has always been serviced by Europe, which is closer than southern Africa, and also there is less of a language barrier as most of the countries are French speaking.”
This was no deterrent. “We now have a range of offices throughout West Africa and are able to manage the process of transporting cargo in and
out of the region.”Packing in Durban and
Johannesburg, Afrilog Groupage Service is especially targeting cargo from the Far East and India en route to West Africa. “We can offer better rates and transit times for cargo from these regions than if it were routed through Europe.”
Busang believes the recession definitely impacted on trade partners and West Africa, like the rest of the continent, is realising the importance of doing business with its neighbours.
“For a long time there has been a perception that if something is manufactured in Africa it is of a lesser quality but that is changing and more trade is taking place between African countries.”
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FREIGHT & TRADING WEEKLY SASCSOUTH AFRICAN SHIPPERS COUNCIL
Things are looking up after annus horribilisFear that growth is partially driven by re-stocking of supply chains.
In FTW’s search for the latest state of play in the courier/express industry, a leading authority on the subject supplied us with his time and effort – and conjured up the following story. He didn’t want to be quoted by name. So, thanks Anonymous.
By Alan Peat
The good news is that, for the express parcel industry, business is picking up and most international and domestic companies have seen growth in volumes and yields during the past six months.
The bad news is that this growth comes off a low base, with the preceding year being the industry’s annus horribilis.
For this industry the game of ‘Survivor’ has not yet seen its final episode and, locally, there are likely to be some casualties over the next year
as some of the more highly geared express companies find that their weak balance sheets, poor cash management practices, and inability to stay away from high-volume low-yielding business affect their liquidity and, ultimately, their ability to stay in business. The improvement in market conditions will not come quickly enough for those who are thus weakened, and for those who haven’t cut their costs during the last year. There is a fear, though, that the growth is temporary and is partially driven by re-stocking of supply chains.
The problem, too, is that even in the good times it’s an unforgiving industry.
Highly competitive, the margins are tight and it’s a voracious consumer of resources – both physical and human. Most costs tend to be variable, so the dreams of achieving economies of scale remain elusive for
most, especially in relatively low-volume economies such as South Africa. Express companies are key enablers of high-velocity supply chains where customer demands are high and companies need to be sharp to survive. Customers demand every shipment is picked up on time,
that it is delivered on time and fully intact, that it is billed accurately, that it is accounted for and reported accurately, and that information must be transparently available on the internet in real time. Goods moving through express supply chains tend to be high value and need special security processes and controls. The business
complexity is amplified when one considers the millions of shipments moving daily and the geographic spread of operations.
The growth of business-to-consumer deliveries has opened new markets, but has brought attendant complexities. In South Africa, with our wide geographic spread, long distances, and low economically active population, the cost of these deliveries is relatively high and the customer’s appetite for high prices is low.
The cost of regulatory compliance is a serious cause for concern, especially those that are specific to the industry. These range from ICASA’s operating permits to the Civil Aviation Authority’s new Part 108, 109, and 110 of the Civil Aviation Regulations. The latter has seen the costs of security inflate enormously and whilst everyone agrees that
aviation security is an area of no-compromise, customers generally are intolerant of accepting additional charges. Also, the cost of sustainability has yet to be felt in South Africa, but the global players are taking it very seriously and the investments in our future are and will be substantial. The bottom line? The industry’s margins will be squeezed even tighter.
Despite the complexities, there are many express companies that have got it right. Those that have got it right are those that do the basic job right, the first time. The cost of errors is legendary and, all too often, is caused by a lack of well defined process and poor training and execution. Those that have got it right exercise serious fiscal discipline and understand the importance of strong balance sheets and cash flow, and continually drive unit costs down.
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‘Highly competitive, the margins are tight and it's a voracious consumer of resources.’
Two-tier product caters for varying customer needsChoice of named-day service or next available upliftBy Joy Orlek
Independent airfreight consolidator CFR Freight has developed a two-tiered product to cater for the varying needs of the market.
“On many routes, our clients have the choice of a name-day service or next available uplift, depending on the urgency of their shipment,” says airfreight general manager, Dave Graham.
And because airfreight is a volume-driven market, competitive rates are an added benefit on the company’s high- density routes.
On the import leg, the US and China continue to dominate, while Africa is emerging as the top contender in the company’s export portfolio, with the likes of Nigeria showing significant growth.
Graham took over the airfreight helm late last year, bringing to the position an intricate understanding of the US market.
“There are real challenges in doing business with the US,” says Graham, “particularly on inbound – the whole known/unknown shipper concept, whether or not your customer is an independent air carrier and so on. It’s unlike any other origin or destination in the world, mainly because of all the TSA requirements – and not a lot of people here fully understand the intricacies involved.”
Complementing the product competence of locally based CFR staff is the company’s strong agency muscle, says Graham.
Through its worldwide
agency network – the Air Cargo Group – the company is able to offer a global, door-to-door option, which offers considerable advantages to forwarders who don’t have an
international network.In Cape Town CFR
has signed a joint venture agreement with Zacpak Warehousing to form Zacpak Cape Town Depot.
“This enables us to offer
a neutral container unpack facility to the forwarding fraternity, as well as handle our own import and export groupages,” says director and shareholder, Sean Menzies.
Dave Graham … strong agency muscle.
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12 | FRIDAY May 28 2010
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‘Industry has adapted to Security 108’By Joy Orlek
The express cargo industry is expanding faster than the rest of the economy and will continue to do so for the foreseeable future, says Airlink Cargo MD, Alwyn Rautenbach.
“The market for electronic goods is continuing to grow – as is the risk of transporting them by any other mode than airfreight,” says Rautenbach, who has seen particular growth on the Zimbabwe route.
Dollarisation of the economy has provided a more stable trading environment, and service providers like Airlink Cargo are reaping the benefits.
Lesotho, Swaziland and Zambia are also big growth markets for express freight, he said.
And while speed in the air is of the essence, equally important is speed on the ground – and that’s where
Rautenbach believes Airlink has the edge.
“Cargo is accepted just two hours before flight departure.
“Screening and fixing the paperwork as well as the physical constraints between the cargo and Charlie apron where our aircraft are parked are all time consuming, and two hours gives us enough time to ensure that flight schedules are not compromised.”
The additional demands of Security 108 – which calls for screening of all cargo prior to departure – has added an extra dimension for express operators. “But because a lot of the courier companies have registered as regulated agents, it works well because they screen the cargo and provide us with screened cargo and we don’t have to do it again.
“But then there’s another portion of cargo that is passed on to us for
screening and which tends to take a bit of time and paperwork.”
But on the whole, says Rautenbach, there has been minimal impact on business.
“The industry has adapted to the different time frames and the system is working.”
Alwyn Rautenbach … industry expanding.
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New vehicles brought in as Zambia emergency freight growsBy Joy Orlek
Specialists in the movement of cargo to Zambia, Ka Go 2, has recorded a very good start to the year, particularly in the emergency and express field.
“Express freight is a big part of our business to Zambia,” says director Richard Hall. “We’re sending at least two vehicles a week – and it’s a mix of cargo ranging from TV sets to spares for the mining industry.
“Our emergency fleet gets up to the Copperbelt in three days,” says Hall, and is a particularly useful service for urgent mining-related spares and equipment.
The company is one of
a select few that offers an emergency option, and has done since it was launched three years ago.
While business on the route declined by 15-20% thanks to the recession, a spurt at the end of last year helped to lift revenue to reasonable levels, says Hall.
“And because declining volumes meant we didn’t have to turn trucks around so quickly, we sent vehicles into the Congo to load there – so we played it as it went.”
2010 is by all accounts looking positive, says Hall.
“We have recently been inundated with calls for express loads and have invested in a few new vehicles to cope with the growth.
“Our express and
emergency fleet is up to 10, which we believe is an optimal number.
“If we are inundated we have contractors we can call on when we need them.”
And for the moment Zambia will remain the company’s focus market.
“We have a big yard with offloading facilities and a bonded warehouse and offices – and are looking at putting in a small fleet in Zambia for distribution of cargo from Zambia to the Congo.
“We’re not planning to branch out just yet – our focus is rather to keep service levels up to scratch.”
Richard Hall ... ‘2010 is looking positive.’
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Training vital for aviation safetyBy Alan Peat
Training and risk assessment are vital tools in ensuring aviation safety, according to Dries Viljoen, AAFSA divisional CE for training, quality assurance and corporate services.
The risk assessment and training courses provided by AAFSA – the training division in Bidair Services – are specially designed to ensure trainees are able to effectively meet every safety issue they are faced with, he told FTW.
“In view of the continuous threat to f light safety and security and the risks associated with this sector of the aviation industry,” he added, “finding the right training for employees in
the industry is critical. Ensuring that the training is of a high standard is equally vital, with every employer looking for quality and value for money.”
Viljoen also pointed out that every CEO/MD was liable, accountable and responsible for ensuring total compliance with all the regulatory authority requirements – as laid down by the SA Civil Aviation Authority (SACAA) and the Department of Labour.
“Employers are also aware that the investment they make towards the training of their most valued asset, namely their staff, will have a positive impact on their business and give them a positive return.”
To meet this demand, each of AAFSA’s instructors is a specialist in his subject field – adding up to many years of experience in international commercial aviation, airfreight, safety, security and quality management systems, safety auditing and risk assessment.
“This ensures that we give our clients the quality training that they are entitled to,” Viljoen said.
Backing up its promises, it is a SACAA-approved and accredited aviation training organisation (ATO); and rated a national key point (NKP) by the Safety and Security Sector Education and Training Authority (Sasseta) and the aerospace sector of
the Transport Education Training Authority (Teta).
“We are also approved and accredited in terms of safety and security training under cargo security Part 108, in X-ray screening and interpretation, dangerous goods, live animal regulations, perishable cargo regulations and various other cargo-related training,” Viljoen added.
It is also a member of the International Air Transport Association (Iata) ground handling section and the Airports Council International (ACI) world business partner programme.
“The AAFSA vision,” said Viljoen, “is that the high standard of safety and security training in the aviation industry is never negotiable – and is our first commandment.”
Dries Viljoen ... Safety is never negotiable.
AMI to double warehouse capacityConcerns that strong rand could stifle export growthBy Alan Peat
It is a not-so-fond farewell to 2009 but has it taken the recessionary woes with it?
That is what Mike Scott, MD of AMI has asked, while at the same time suggesting that there’s a very strong ‘maybe’ in the answer.
“There was growing optimism for 2010,” he told FTW, “and certainly our airfreight volumes have increased 28% year-on-year – albeit from the
recessionary levels.”However, he expressed
concern about the strength of the rand, and its stranglehold on exports.
“It is also concerning how long it is taking the SA economy to shake off the recession,” Scott added, “and whether our main overseas trading partners will indeed show meaningful growth.
“The World Cup will be a memory in six weeks’ time, and then we truly have to stand alone with regard to
economic growth. “I predict a tougher than
expected end to 2010.”Looking to the future,
Scott pointed out that AMI had outgrown its current Johannesburg handling facility – and is to move into its new Pomona building on June 6.
This will double the company’s warehouse capacity.
“As a Section 108 regulated agent, this facility will be compliant with CCTV and access
control,” said Scott. “All our clients’ export cargo is made known through our accredited warehouse.”
AMI currently has a 70:30 ratio of export to import cargo, and intends to focus on increasing its import volumes.
“The increased warehouse space will allow us to open an off-airport import degrouping facility,” Scott added, “with the idea of making it a neutral, multi-user facility for agents.”
He also told FTW that
the opening of King Shaka International Airport (KSIA), some 30 kilometres north of the Durban metropolis, would put pressure on the airfreight fraternity.
“The majority of freight agents,” Scott said, “operate in and around the old Durban airport.
“However, AMI has committed to taking a unit at King Shaka from August, as we have seen increased volumes and see opportunities for further growth.”
Express cargo volumes on the riseBy Liesl Venter
The express cargo sector continues to grow and expand as more and more clients realise and appreciate the benefit of a dedicated vehicle to move their cargo, says Quinton de Villiers of NGL Logistics.
“Our volumes are continuing to increase as we are seeing more people seek the very dedicated
service that we can offer with express cargo.”
According to De Villiers, the 2010 Fifa Soccer World Cup possibly has a role to play in the dramatic increase in express cargo as many people don’t want to take a risk at present and not get their cargo. “We are finding our clients are preferring to use a dedicated express cargo vehicle than to rely on
break bulk at the moment – just in case it does not get here, be it in time for the World Cup or because of the World Cup.”
De Villiers believes there is a lot of opportunity for companies wanting to expand in the express cargo sector.
“We have looked at improving our express cargo service in and around South Africa and are not
focusing at present on cross border. This is a strategy that is working for us and we are very happy with the volumes we are getting.”
The economic recovery of the country following the recession also has a role to play in the improvement of express cargo volumes, says De Villiers. “People are not necessarily holding back any more but are moving volumes again
and that bodes well for the industry and the next few months.”
Along with partner Mark Scott, the aim of the company is to continue to focus on express cargo in the next few months. “It is very important to us to offer the best possible service and as our volumes in this sector grow, so must our service delivery and offering.”
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Industry set to grow after recessionBy Alan Peat
With the global recessionary conditions that prevailed throughout most of 2009, the express/courier industry suffered as business and trade slumped.
But, while this has been the case in the short-term, the trade should take cognisance of the long-term, according to Jasen Smallbone, national sales manager of UPS.
“We believe that the following trends will allow the growth of business over the long-term: • As countries around the world recover from the recession, global trade
should resume; • Just-in-time (JIT) inventory management, increased use of the Internet for ordering goods, and direct-to-customer and made-to-order business models require transportation service to be effective; • Outsourcing supply chain management is becoming more prevalent as customers increasingly view effective management of their supply chains as a strategic advantage rather than a cost centre.”
Looking at the challenges faced by the industry locally, Smallbone said that he saw opportunities rather
than challenges when it came to transportation
“UPS is in the business of helping its customers overcome the challenges of international trade,” he told FTW. “To do this, we have formed an integrated, global transportation network, and broad product portfolio.”
Smallbone headlined one example of a major challenge faced by the transportation industry as a whole. That was the recent airspace closures in Europe, resulting from the volcanic eruption in Iceland.
“This,” he added, “was a clear example of how good contingency planning, a f lexible network and
dedicated personnel can mitigate the challenges posed by even the most unexpected and disruptive of events.
“Our f lexible, integrated infrastructure allowed us to shift air volume to our European ground network, minimising delays.”
2010 showing better than expected growth in volumeBy Alan Peat
Last year’s global downturn also saw the courier/express market suffering heavily, according to Jasen Smallbone, national sales manager of UPS.
“The financial crisis led to a decline in consumer spending and business trading activity and, consequently, to less shipments being moved than in previous years,” he told FTW.
But, despite this difficult environment,
records show that UPS responded well, he added, both in SA and globally.
“Throughout 2009,” Smallbone said, “UPS maintained its industry-leading margins, expanded its market share outside of the US, continued to generate strong cash f low – US$4.1-billion for the full year 2009 – and invested in new capabilities to better serve our customers.”
According to its more recent records, the company achieved better-than-expected growth
in volume, revenue and profit in the first quarter of 2010.
Its first quarter global earnings increased 37% over the first quarter in 2009, and revenue increased 7% to US$11.7-bn, compared to the first quarter of 2009.
Said Smallbone: “This, along with other indicators, leads us to be optimistic about the year ahead.
“The recent recession gave us the opportunity to increase efficiencies and operating leverage, and
this positions us very well to be at the forefront of the recovery, providing our customers with the high levels of service and value for money they expect.”
Smallbone was optimistic about the future, and believed global trends would be a major stimulus that powered economic recovery.
Part of his company’s attraction, he reckoned, was that it was the only operation in the transportation industry offering an end-to-end global service portfolio.
This is everything from package transportation and supply chain management to freight forwarding, international trade services and brokerage.
“Our strong growth over the past decade was no accident,” Smallbone added. “It was due in large measure to the more than 400 000 UPS employees worldwide, including those in South Africa, using their skills, knowledge, and passion to serve our customers – best described as a ‘can do’ spirit.”
Jasen Smallbone ... Looking to the long term.
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Good progress in Lebombo border upgrades Upgrading of the border post between South Africa and Mozambique is progressing well, according to Brenda Horne, CEO of the Maputo Corridor Logistics Initiative (MCLI).
Horne said the border post was a hive of activity where various projects were under way.
“Phase 1 of the upgrading of the Lebombo border post on the South African side is under way and will see the separation of traffic – so light vehicles, freight, buses and pedestrians will all be separated. The design is of such a nature that it will allow it to be incorporated should the border post ever be turned into a one-stop border post.”
According to Horne, much work is also taking place on the Mozambique side where the entire Ressano-Garcia border post is being upgraded and refurbished. “Also here the upgrade has been designed to incorporate the changes on the South African side and to be later incorporated into the one-stop border post. Upgrades and work are also taking place around specific freight facilities.”
Horne said while a 24-hour joint
one-stop border post was not yet a reality, the concept was growing and work at both border posts had taken this into account as a definite for the future.
Brenda Horne … on track to 24-hour operation.
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Transnet needs industry support to justify capex ‘Logistics companies have lost faith in the parastatal’By Liesl Venter
It is imperative that Transnet regain industry support to meet its volume targets for continued capital investment to continue.
Speaking at the monthly Transport Forum in Johannesburg recently, Dr Andrew Shaw of the Department of Public Enterprises, said many shippers and freight logistics companies had lost faith in Transnet. In a study conducted by the department it was found that many respondents were disappointed that Transnet
had consistently fallen short of fulfilling South Africa’s transport requirements and that it was not fulfilling its strategic role in the economy.
“There is no doubt that Transnet should be a national service provider in the transport sector – rail and ports – as owner of national infrastructure which forms the backbone of transport and logistics in South Africa,” said Dr Shaw. “We believe it must be used as a transporter of bulk, high-volume products and material and become
more widely used than is presently the case.”
He said, according to the DPE, it was imperative that Transnet became a preferred transporter and handler of freight in South Africa and delivered a reliable, efficient and effective service to all sectors in the industry.
He said with billions being spent on major projects such as the Iron Ore channel expansion, the coal line, the re-engineering of the Durban Container Terminal, the widening of the Durban harbour entrance, the Ngqura
container terminal and the new multi-product pipeline, Transnet would soon have to start delivering and proving to the DPE where they were heading.
“To do so, Transnet must increase its market share of total freight to rail to an annualised 250 million tons – that is a 10% growth by 2014,” said Dr Shaw. “We also want to see the establishment by the Department of Transport of a Rail Economic Regulator and the implementation of the national freight logistic strategy.”
Dr Andrew Shaw … ‘Transnet must increase its market share of total freight to rail to an annualised 250 million tons.’
Long-term demand calls for major railway freight hub in GautengThere is no doubt that Gauteng needs a major railway freight hub, says Deidre Strydom, senior manager capital planning for Transnet.
“City Deep is saturated
and various studies have shown that we can only reconfigure it. It cannot be expanded, so it goes without saying that Gauteng needs a major railway freight hub that is
bigger than City Deep.”According to Strydom
capacity plans indicate that existing terminals in the province will not cope with a long-term demand.
“The solution lies in
maximising the footprint of our existing terminals before we develop new super terminals, but also to look at developing a major railway freight hub that is close to the
customers, that has good access to road infrastructure, is close to the main corridors and allows for good growth opportunities for the logistics infrastructure.”
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DoT’s grand plan has to answer some serious questionsBy Alan Peat
In a recent presentation to a parliamentary committee, the department of transport has unveiled its national transport master plan, 2050 (Natmap).
This, it said, was “a plan to develop a dynamic, long term, sustainable land use/multi-modal transportation systems framework for the development of network infrastructure facilities, interchange termini facilities and service delivery”.
The department’s consultants on the project advised that it was a vision “which could result in a transport system that was equitable to all stakeholders, met international standards and was technologically sustainable”.
But, despite the grand presentation, the master
plan faced some serious questioning from the committee.
Recorded in the minutes, for example, was the committee chairman’s comment on the current co-ordination of the country’s transport network.
He said that a recent household survey had shown that public transport was not well co-ordinated in terms of the linkages between road, rail and air travel.
He also expressed concern about what he termed Natmap’s “seeming
insensitivity to the plight of the poor”, and questioned if it had been crafted with poverty reduction in mind.
The chairman also cast doubts on whether Natmap had the ability to achieve the transformation of the taxi industry by making this a formal economy and removing it from the periphery of economic development.
As an answer to this, the department pointed out that its presentation “stressed the need for integrated transport networks and the need for forward planning that took into account the situation of all South Africans, including the poor, in developing infrastructure”.
The committee also questioned whether Natmap was feasible when it came to capital resources and funding, and also requested an
explanation of the role that would be played by Transnet infrastructure in the implementation of the plan’s development projects.
The department said there was “a need to unwind the unequal delivery legacy with respect to passenger transportation and cost recovery,” and that the master plan had “strategies in place for addressing these”.
It added that SA was a developing economy and it relied on competitively priced freight and passenger mobility to be globally competitive.
The department highlighted that the presentation outlined the details of proposed new institutions, changes to existing institutions and Natmap’s funding mechanism.
It also pointed out that information was provided on the funding requirements of Natmap’s national and provincial projects – which the department estimated at R261-million and R515-m respectively.
Looking at the role played by the National Planning Commission (NPC) the committee asked the department to explain how Natmap’s vision and strategic direction were shared by other structures of government.
In its briefing to the committee, the department said that a particular point amongst the financial and legal issues was “institutional fragmentation”.
This, it added, hindered coherence and focus by the department on policy formulation and strategic planning.
‘SA is a developing economy and relies on competitively priced freight and passenger mobility to be globally competitive.’
planning flaw at new King shaka airportBy Alan Peat
In a presentation to Parliament of its national transport master plan (Natmap), the deputy director general of transport highlighted a major planning f law in the new King Shaka International Airport (KSIA) north of Durban.
In discussing the status quo in South Africa’s
transport infrastructure, Lanfrac Situma admitted that the situation of airports was a particular concern in achieving an integrated transport system, linking road, rail, air and sea.
As an example of this, he said, examine the experience of the new KSIA.
It is located a great distance away from public
transport and could only be accessed by car.
“This was a mistake in planning,” he added,
“that had failed to take into account the fact that not all South Africans owned a motor vehicle
and could not therefore access an airport located 30-kilometres away from the city.”
asia overtakes europe in sa trade volume stakesBy Alan Peat
With new trade and investment links between SA and the Far East – mostly China – Europe’s pre-eminent position as an SA export destination has been usurped, according to Luke Doig, senior economist at the Credit Guarantee Insurance Corporation (CGIC).
For the whole of last year (see graphic) Europe had a 29% share of SA’s total exports, but had been overtaken by Asia, with 31.2%.
And, in the first quarter of this year, Asia has upped its share to 33%, while Europe still languished at 29%.
Doig also reckoned that with Europe’s “low demand
outlook” it seemed set to lose further attraction – especially as Asia would appear to be continuing to cement its first spot as an SA export destination.
There’s also a challenge being established by Africa, which took a 17.4% share of SA exports in 2009, and 15.6% in the first quarter of 2010.
The shAre of sA exPorT desTinATions As A PercenTAge of ToTAl exPorTs:
00515 FTW quarter page 2/3/10 6:24 PM Page 2
Composite
C M Y CM MY CY CMY K
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King Shaka International Airport ... can only be accessed by car. Photo: Sonja Brink.
Economic downturn hits macadamia and litchi exportsBy James Hall
Fair to better exports were recorded for macadamia nuts and litchis, according to figures given to FTW by the South African Subtropical Growers’ Association. However, sales for the tasty products were affected by the economic downturn.
With up to 85% of SA-grown macadamias exported, 5 500 tonnes of ‘kernels’ were shipped in 2009, down from an estimate a year ago of 6 850 tonnes but still considered an “average crop,” according to Derek Donkin, CEO of the Tzaneen-based
growers’ association. KwaZulu Natal remains the primary growing area, and the US, Europe and the Far East (mainly Japan) the key export destinations. 2010 shipments are expected to rebound to 6 800 tonnes, about the 2008 levels.
“We are hopeful that the markets will absorb the 10% increase. It will be a good crop,” said Donkin.
Litchis recovered from last year’s unusually low production levels when bad weather accounted for a two-thirds drop in exports. Macadamia exports are recorded by the calendar year but litchi figures are issued at the end of the
primary growing season, now ended, and this year 3 600 tonnes (1,8m 2kg cartons) were exported, up from last year’s 2 600 tonnes. But weather was still erratic in some growing areas of Mpumalanga, and with market demand down internationally for a fruit considered exotic and a luxury by overseas consumers, exports were still far down from 8 600 tonnes shipped in 2008.
Litchis grown in approximately 350 orchards varying in size from five to 50 hectares are shipped via containers packed either
inland at pack houses or at port – usually Cape Town. Of the 35 410 hectares devoted to subtropical fruit cultivation in SA,
the largest area, 40%, is used for macadamia; 35% is used for avocado; 21% for mango, and just 2% for litchi.
New study offers insights to investors in AngolaBy Ed Richardson
An overview of Angolan laws and decrees regulating private investment has been published by the United Nations Conference on Trade and Development (Unctad) to help stimulate
investment in the country.According to Unctad,
meaningful investment across the economy will flow once the government has formalised the legal framework for investment.
The study, published in Portuguese, gives an overview of Angolan laws
and decrees regulating private investment and foreign direct investment in particular.
The development of the legal framework since Angola’s independence in 1975 is described, and its impact on investment flows is briefly assessed.
In addition, national institutions concerned with investment are introduced and their historic development described.
Angola's involvement in international conventions and regional agreements on investment is also analysed. An overview
of the international agreements on foreign investment signed by Angola follows. Examples of investment contracts between Angola and private investors also are provided.
FOR SALEGrindrod buys Dutch companyThe Grindrod Group has acquired the Rotterdam-based Associated Bunker Oil Contractors (ABC) group – an established barge company supplying marine bunker fuels to ships in the ports of Rotterdam, Amsterdam and Antwerp.
Iata objects to general airspace closuresThe Geneva-based International Air Transport Association (Iata) has slammed European governments and air navigation service providers over airspace closures in the past few weeks. The
association called for them to urgently develop more precise procedures to identify ash contaminated airspace and allow more flights.
Small business body writes off millionsThe government’s wholesale small business promotion agency Khula had written off R220.6-million of its loans advanced to its intermediary clients and partners between 2003/04 and 2009/10, said trade and industry minister, Rob Davies.
ORTIA advises on World Cup road closuresOR Tambo International Airport has advised of
various road closures at the airport leading up to and during the 2010 Soccer World Cup. According to a spokesman for Acsa, various roads, such as the lower roadway, which is normally used for pick-ups at arrivals, will be closed to the general public.
Mozambican ports get faceliftMuch effort is going into the upgrading and development of the ports of Maputo and Matola, to the west of the capital, as well as the revitalisation of the Maputo Corridor, reported the Maputo Corridor Logistics Initiative.
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like light motor vehicle drivers, will revert to the secondary road network, already suffering from huge maintenance backlogs, in an effort to avoid the tolls.
Sanral, however, maintains that tolling will result in cost savings in the long run. According to CEO
Nazir Alli, the “user pays” model is the most equitable.
“The congestion on the roads is costing us millions. The bottom line is that if we don’t improve and maintain our roads it will cost us even more. Tolling fees are used directly for those roads where tolls are charged meaning they are always maintained.”
The same, however, cannot be said for the strained secondary network where the backlog is estimated to be millions. And in the current economic climate, more cost to transport is only going to impact negatively.
“It will be unaffordable for some of the smaller operators,” says Kelly.
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From page 1
sister unions in the transport industry, particularly in the road freight and private port-related companies.
“The ports will continue to remain idle, and freight rail operations and engineering will continue to merely limp along,” said Satawu policy officer and strike negotiator, Jane Barrett.
“We now have no option but to step up the pressure both directly and indirectly on Transnet.”
Which makes it a bit of an impasse, with acting CE at Transnet, Chris Wells, pointing out they’d already offered workers an above-inflation increase on pensionable earnings. He grumbled that Satawu had rejected this “generous” offer – which, he added, “is at the limit of what is reasonable in the current economic environment”.
The Transnet offer is an across-the-board, above-inflation increase on pensionable earnings of 11%, with a new medical aid dispensation – and providing full-time employment to some
1 000 contractors at Transnet Capital Projects.
It also ensures that none of Transnet’s employees will earn less than R50 000 per annum; and it will give all bargaining employees an ex gratia payment of R1 000.
But replied Barrett: “Satawu wishes to repeat what it has said all along – the 11% offer on basic wages is NOT an 11% increase on the wage bill. Neither is it an 11% increase in take-home pay for most workers. A lower percentage is to be applied to various allowances. In terms of the wage bill, there are considerable savings for Transnet going forward.”
Satawu is also sniping at Wells and others on Transnet management who argue that Utatu is the “majority” union amongst its 54 000 workforce.
To make matters worse, the major shipping lines – like Maersk Line, Safmarine and MSC – have re-imposed the “congestion surcharge” on all cargo container consignments, and most of the other lines on the SA trades are likely to follow this lead.
Indeed, a shipping line
executive told FTW: “Virtually every carrier is professing to have implemented a congestion surcharge.”
That surcharge, at the moment, is between US$100 and US$150 a box, but might even increase beyond that if the strike does drag on through this week.
The strike action, even if it had to come to an end overnight, has left the country reeling with estimates that it has cost the economy billions. Shipping lines are having to conduct an almost impossible sleight-of-hand with ship movements, with ships stuck off various South African shores while others are in ports waiting to be unloaded.
In the meantime the impact on the perishable industry continues to take its toll with fears being that the entire fruit export industry could be compromised this year.
In the meantime, Transnet has warned those employees who are electing to continue with the strike to respect the rights of colleagues who want to work and not to be led into criminal behaviour.
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new initiative aimed at curbing truck hijackingsBy Liesl Venter
Truckers and transporters are being called to join forces with the South African Police Service and Business Against Crime in an effort to curb the spate of truck hijackings in Gauteng.
The newly launched SAPS Truck Hijacking Business Initiative calls on the various role players to get together at least once a month in an effort to communicate and improve relationships to bring about a solution to an ever-increasing problem.
According to Gauteng police spokesman Colonel Eugene Opperman, truck hijacking is a major concern to police, especially in Gauteng, where at least 60% of the country’s total number of cases are reported.
Says Lorinda Nel, National Project Manager for Business Against Crime: “We need the trucking industry to join this initiative. The strength of this
initiative lies in the diversity of the skills we have on board and the more people who are joining forces to address the problem, the better the solution we can come up with.”
Truck hijacking has continued to be a problem across the country with the latest police statistics indicating an increase of some 15.4% in the 2008/2009 financial year.
“In finding solutions to this we should look at what strategies and approaches have worked in the past and draw lessons from these approaches,” said Opperman. “We believe joining hands with the transport industry will make a huge difference.”
The next meeting of the initiative is set to take place on June 8 at 10am at the offices of Business Against Crime in Sandton.
Anyone interested in joining the initiative or attending the meeting can contact the organisation.
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