Wednesday, December 18, 2013

Transport Sector: Experts list Challenges, Solutions and Opportunities


 CHALLENGES met solutions and opportunities at the Commercial Vehicle Conference held at the Johannesburg Truck & Bus Show on 24 October, where delegates were able to focus on industry matters crucial to the ongoing viability of this vibrant sector of the South African economy.
Industry analyst Frank Beeton of Econometrix presented an overview of the SA Truck market from 1971 to date, indicating trends in sales of medium (MCV), Heavy (HCV) and Extra Heavy (EHCV) Commercial Vehicles and Buses, indicating how political and economic circumstances influenced the truck market during the past 42 years.
The growing share of EHCV’s in the truck sector is an indication of a change on the market structure underpinned by the development of long haul operations into Africa. Sales wise, the total truck market for 2013 is estimated to top at between 29 000 and 30 000 units with a forecast growth in sales for the next 3 years to 35 600 units in 2017.
With load optimisation, driver wellness, vehicle maintenance and productivity as the key focus areas of self- regulation through a voluntary accreditation process under the government-supported Road Traffic Management System ( RTMS) , Chairman of the Road Transport Management System Committee  Adrian van Tonder of Barloworld Logistics reported on the vast difference which this concept, launched in 2007 with only 74 accredited vehicles and now standing at 4 450 accredited vehicles,  has made to participants.
He quoted case studies to indicate how this unique system of voluntary self-regulation that was mooted in 2007 to assist fleet owners in legal compliance and optimisation of their fleet management requirements has contributed to efficient fleet maintenance and cited examples where fleets under the system have experienced a 50% reduction in downtime, accidents and huge improvements in fuel economy. The poor state of the secondary road network and the negative effects on road safety and maintenance costs were generally lamented.              
Dr Vaughan Mostert of the Department of Transport & Supply Management at the University of Johannesburg focused attention on the challenges facing public transportation, which was beset by uncoordinated planning efforts by local, provincial and national authorities and highlighted the need for a coordinated approach and the realignment of political will as key to any effort to improve the current unsatisfactory situation in the sector.
The extent to which research was being done on an ongoing basis to improve truck specifications and the manner in which the CSIR’s performance-based research is improving the design specification of truck bodies and trailers, resulting in safer and more economical operations of fleets, was demonstrated by Paul Nordengen, Research Group Leader of Network Asset Management Systems at the CSIR ‘s Built Environment Division.
Patrick O’ Leary, Editor of Fleetwatch Magazine stunned the conference with the realities of fatalities and damage resulting from truck accidents and the huge responsibility on the public and private sector alike to address the matter.
South Africa resolute to promote locally made cars
The Department of Trade and Industry (dti), in collaboration with the Department Environmental Affairs (DEA), has produced the Electric Vehicle (EV) Industry Road Map at the Sandton Convention Centre, Johannesburg.
It seeks to promote the establishment of a domestic EV Industry, thereby contributing to the mitigation of the impact made by harmful gases to the environment as well as promoting further investments and job creation in the automotive industry.
Trade and Industry Minister Dr Rob Davies said in a media statement that the road map will achieve the vision through a number of strategic interventions including but not limited to: demand stimulation, public education, investment support and an accommodative regulatory framework.
Davies added that EV Industry Road Map will be constantly monitored and reviewed as the industry is experiencing rapid technological advancement that would need to be taken into consideration.
Tax incentives could include a personal income tax rebate, the reduction of value-added taxes on the selling price of electric-powered vehicles, as well as reduced EV registration costs.
South Africa has already seen the introduction of hybrid vehicles over the last few years, however due to EVs providing greater benefits but having specific peculiarities, a need for a targeted framework in the form of a Road Map for their introduction in South Africa is necessary.
Government said it would also drive additional investment in local EV manufacturing operations through amendments to the existing Automotive Production and Development Programme, which currently provided original-equipment manufacturers that produce more than 50 000 units with a 20% return on projected investment in new plant and machinery.
“There are, however, some significant improvements in these incentives for EV manufacturers that produce over 5 000 EV [units], which will receive a 35% return on their investment,” Davies said at the programme launch.
Research and development support for EV manufacturers would also be provided by several parastatal and independent research organisations, including the Council for Scientific and Industrial Research, the Industrial Development Corporation and Eskom.
The dti has called for public participation/comments in order to align the EV strategy with broader Government policies and plans.
“In June, we will open the road map for public comment, after which an EV industry steering committee, comprising industry and government, will be established. This committee will then evaluate the input from various stakeholders and, by September, submit implementation proposals to Cabinet,” Davies explained.
The DEA announced in February, that it would, as part of a Zero Emission Electric Vehicle Pilot Programme, test a fleet of electric vehicles to determine the viability of EVs under South African conditions.
Nissan South Africa has undertaken to provide the DEA with four Nissan Leaf EVs for the initial phase of the project, which would run for three years.


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