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FREIGHT & TRADING WEEKLYJUNE 2012

Berth pain

Transporters speak out

No escaping a difficult delivery

Bled dry by bribery

‘Spice GirlS’ a winninG duoBackstage at Spice and Herb Importers

DURBAN/RICHARDS BAY

SDV South Africa Pty Ltd, 24 Covora Street, Jet ParkRegional Commercial Manager - Jacques Baudelot, Tel: +27 11 398 5000, Email: [email protected]

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June 2012 Durban/Richards Bay 1

CONTENTS www.ftwonline.co.za

Editor Joy Orlek

Consulting Editor Alan Peat

Assistant Editor Liesl Venter

Advertising Carmel Levinrad (Manager)

Yolande Langenhoven

Gwen Spangenberg

Jodi Haigh

Division Head Anton Marsh

Managing Editor David Marsh

CorrespondentsPort Elizabeth Ed Richardson

Tel: (041) 582 3750

Swaziland James Hall

[email protected]

Advertising

Co-ordinators Tracie Barnett, Paula Snell

Layout & design Tanya Bosch

Circulation [email protected]

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Shipper Profile

‘Spice girls’ are import chart-toppers ................................................. 2

Big Issues

Landside congestion struggles to keep pace with waterside performance ....................................................................................... 4

Excessive red tape creates a breeding ground for bribery ................ 22

Logistics

Logistics efficiency demands buy-in from all links in the supply chain .............................................................................. 4Permit red tape pushes up costs for abnormal hauliers ..................... 12Road congestion compromises forwarders’ delivery guarantees ...... 12JVC celebrates 20 years .................................................................... 14‘Cutting corners on rates is generally an expensive option’ ............. 14Pilot project will address truck turnaround times at port .................. 16Rail has failed to fight negative perceptions ..................................... 18Integrated corridor is good news for logistics efficiency .................. 23Clients embracing ‘green’ consider rail ............................................ 24Shortage of trained drivers creates reliance on foreigners ................ 24Own trucks add value for independent consolidator ......................... 26Honest transporters victimised for refusing to pay bribes ................ 26

Seafreight

MSC helps ease pressure on Durban .................................................. 6RB to get R4-bn investment ................................................................ 6Safmarine intervenes to minimise disruptions during port upgrade ........................................................................................ 8Port congestion sparks anger of surrounding residents ..................... 24Grindrod takes corridor approach ..................................................... 28

General News

Keeping information confidential is a key element of cargo security .................................................................................. 8Sars’ modernisation journey takes another step forward .................. 19Security company extends services to unpacking and customs inspection .......................................................................................... 20CHC invests R20m in warehouse upgrade ...................................... 20

Nadia Rasool and Wencke Lasch, Spice and Herb Importers – Page 2Photo: Shannon Hill; Cover Design: Dirk Voorneveld

2 Durban/Richards Bay June 2012

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By Liesl Venter

Wencke Lasch and partner Nadia Rasool are not your run-of-the-mill spice

traders. In fact they are far from average.

They teamed up in 2007 to open Spice and Herb Importers in Johannesburg and now import 10-12 containers a month filled to the brim with chilli, garlic, turmeric – name it, they have it.

“As individuals we are very different,” says Lasch. The one German, the other Muslim the obvious differences are clear to see. “But as a business partnership it has been extraordinary – a match made in heaven. We each have our own unique strengths and experience.”

They operate three businesses from the premises – Spice and Herb Importers that handle the importing, Spices International that is responsible for the repacking and distribution of the spices as well as some manufacturing, and Spice Me Up that does the milling.

“We love spice,” says Lasch. “And that is generally a good beginning for anything. You have to like your product to believe in it. And you have to believe in it to sell it. Otherwise there is no point to it and you may as well not be in this business.”

The decision to branch out into importing came about five years ago when the women realised that to be more competitive they would have to up their game.

“Nadia had the importing knowledge and I had the infrastructure,” says Lasch, and the rest, as they say, is history.

According to Rasool it was not always smooth sailing. “The first years were tough. I visited India where I met with suppliers and we did a deal to bring in our first container of spice. But we had some serious cash flow problems in the beginning and realised that even before the container had left India we needed to have sold every last bit of spice in it if we were going to pay for its release at the Durban port.”

And that is just what they did – they sold spice. And one container gradually led to two and then to three. And the business keeps on growing.

“We are at present in the process of developing a new range of products that we intend to move into Africa as this is a new market we have identified.”

Their strength lies in their diversity, they say. “We make sure that we have a range of products for our clients to choose from, ranging in price from the top to the bottom end of the market. The one thing we don’t ever negotiate about is quality – what we bring in has to be the best. It is not up for debate, if we are not happy with the content we send it right back immediately.”

That is why each container is sampled for quality on its arrival in Johannesburg. And product is only released once the Department of Agriculture has

given it the all clear.Both women agree that quality

and a high service level is the differentiator between failure and success.

They have opted to use big logistics companies. “In the beginning we thought to support small companies such as our own, but we very soon realised that the companies were charging the exact same rate as the bigger logistics providers but obviously did not have the same clout and pull with big boys like Transnet and Maersk.”

Both agree they need to know where their goods are at any given time and good communication allows for planning. “We know that things go wrong, but we can only give our clients answers when we know what is happening,”

says Rasool. “So we expect a high level of communication from our clearing and forwarding agent. We don’t particularly care why the ship sunk or the truck rolled, but we need to know if they have a plan B.”

Once their containers land in Durban they are transported to the Johannesburg factory by road before being unpacked and then redistributed countrywide. “We have our own fleet of vehicles in Johannesburg, but for the rest of the country we outsource,” says Rasool.

And they give attention to the little things. The drivers of their vehicles look impeccable. “They carry our product and we want people to associate it with excellence, so they have to portray that message.”

‘Spice girls’ are import chart-toppersBringing in 10-12 containers a month

‘We love spice’ ... Wencke Lasch and Nadia Rasool with a load of ginger in their Johannesburg warehouse. Photo: Shannon Hill

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By Liesl Venter

Storage Solutions has recently expanded its Durban and Reef operations to meet client demands.

According to the company’s Byron Nieuwstad, this came after it was awarded a multi-million rand contract to handle project cargo for a big mining house.

“We had to be in a position to meet the needs of the client and we decided on a whole new

approach,” he said.Careful planning and logistics

was put in place to ensure that the time-sensitive deadlines could be met.

“It is crucially important that the ports are ready to rise to the occasion when big projects come the way of South African companies and can give the special attention needed for specific types of cargo, but also that they have the capacity to handle big project cargo.”

Nieuwstad believes that it is important for everyone in the supply chain to work together if South Africa wants to be competitive.

“It is not just about a storage and warehousing company having the capacity, or the customer calling for certain requirements. We all have to work together and co-operate to ensure success and that includes the shipper, the ports, the transporters and the storage companies.”

Logistics efficiency demands buy-in from all links in the supply chain

Byron Nieuwstad ... operations expanded. Photo: Shannon Hill

By Alan Peat

A multi-billion rand development programme for the Port of Durban

is designed to match the port facilities to the future growth in container traffic – but doubts have been cast on whether the plans will achieve a fast, smooth flow of containers through the port.

Of the R7.4 billion allocated to the Port of Durban over the next seven years, R6 bn will go to the Durban container terminal (DCT) Pier 2, Hector Danisa, DCT terminal executive, told FTW at a recent media briefing.

While the bulk of the money is allocated to the major programme to strengthen, stabilise and deepen the North Pier, a project that kicked off in February and lasts until December 2017, it also funds a major equipment upgrade and refurbishment of 30 second-generation straddle carriers and six of the older Noell ship-to-shore cranes.

The new equipment is 28 of the latest generation of diesel-electric straddle carriers, which have already been delivered,

and 14 of which have a twin-lift capability, and seven new Liebherr tandem-lift ship-to-shore (STS) cranes – capable of lifting four TEUs – due to be delivered by year-end, and to be sited on the North Pier.

Amongst the plans to revise the staff structure, including an overhaul of the executive committee (exco) and the management teams, there are plans to increase the number of the gangs working at DCT Pier 2 and Pier 1.

For DCT Pier 2 this was to man 15 gangs, and up to 350 supervisory and operational staff have been, or are to be, recruited. At Pier 1, meantime, 12 operators of lifting equipment (OLEs) were recruited and are currently undergoing training, and the resultant six gangs will have the capability to man six STS cranes and two rubber-tyred gantries (RTGs).

But this doesn’t go anywhere near increasing the productivity and efficiency of the landside movement of containers. It was purely a means of stepping up the waterside activities, but was not going to overcome the congestion of trucks waiting

to get into the import or export stacks at the DCT. This is a problem, said Sunny Naidu of Cargo Movers, that has seen delays of up to 14 hours for trucks to get into the DCT in recent weeks.

And the narrow pipe of congestion at the terminal is only going to get worse, according to Kevin Martin, chairman of the Durban Harbour Carriers’ Association (DHCA). From January this year, for a potential 72 months, the berth deepening programme will see 400 000 containers per year or 33 000 per month being

lost in capacity to DCT, he told FTW. Point and Maydon Wharf are being looked at to assist. But, questioned Martin, does Durban really need a further 16 000 vehicles per month to run into each of these already congested road facilities?

“The TPT plans,” he added, “are designed to show relatively impressive performances at the waterside, but the landside ends of the business are seriously constricted by a narrow pipeline – illustrated by the time-consuming queues of trucks that build up waiting to get into the DCT ‘A check’.”

Port of Durban … major equipment upgrades under way.

Landside congestion struggles to keep pace with waterside performance


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By Liesl Venter

There are some exciting times ahead for the shipping industry in Durban with a new port set

to be dug out and the current port getting a long-overdue overhaul.

With Africa being punted as the next global growth area, it’s good news for the country, says Glenn Delve, national commercial director of MSC SA.

The Port of Durban is reaching its limit and there is little space for expansion, although there has been talk of other areas within the port being used to create additional container terminal facilities – and this should be explored prior to the finalising of the dig-out port. And while a new port will be costly it will serve Durban and the country well into the future.

“We will definitely support any expansion of container capacity.” said Delve. “A new port makes sense since there’s no way that Durban would be able to handle any more capacity should the volumes increase and we go

into peaks.”MSC has already tried to ease

the burden on the port while it is being revamped. The line has started to use the Port of Ngqura for transhipments and has also introduced a pendulum service serving Europe, South Africa and the Far East and vice versa to ease the pressure on Durban.

“We constantly engage with Transnet and we are very pleased with the effort they are making to improve and upgrade not only the Port of Durban but all of the ports we visit,” said Delve. “South Africa is in a very good position at present despite the worries in Europe that will undoubtedly affect the entire world. There is no quick fix for the Europe crisis and they remain a major trading partner of South Africa – so it is something we all are keeping a watch over.”

Delve said that MSC ships were already transporting less minerals to China, which is also keeping an eye on Europe. “Of course we are moving cargo but the volumes are a little reduced.”

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Transnet has set aside R4 billion to sustain the Richards Bay terminal which is over 30 years old and has seen minimal investment over the past ten years.

This is due to the focus on other areas of the business and the re-prioritisation of capital investment following the 2008/9 recession.

According to Transnet

Port Terminals, the plant has deteriorated resulting in a decline in productivity leading to customer dissatisfaction.

“The R4-billion investment included in the seven-year plan will restore the plant, enabling it to achieve improved operating efficiencies and deliver on customer expectations,” a spokesman said.

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News of a new dig-out port for Durban and higher first quarter 2012 import volumes

through the existing Durban container port point to a positive future for the KwaZulu Natal region, says Safmarine. “Inbound volumes through the port of Durban have continued to grow this year, with volumes for the first quarter of 2012 reflecting an increase over the same period last year,” says Safmarine’s KwaZulu Natal regional manager, Roy Ramdiyal. And he expects the import volume trend of cargo originating from the Far East, predominantly China, to continue for the foreseeable future.

With volumes clearly on the up, Transnet Port Terminals’ recently announced plans to dig out the old Prospecton airport site at Durban to make way for a new container seaport is good news, says Thabani Dlamini, sales manager for Safmarine KZN.

“The new port has the potential to provide greater capacity and improve service efficiency levels because it will help reduce the traffic burden on Langeberg and Bayhead Road and allow for quicker truck turnaround times. It will also provide employment opportunities in the region.

“A larger, more efficient port will help improve transit times, service reliability and vessel turnaround, while offering the benefits

of increased efficiencies and flexibility. It also has the potential to reduce shipping’s impact on the environment because when ships are delayed in port, vessels need to speed up to make up for lost time. Not only does this increase costs because of the extra fuel used, but increased fuel usage also negatively impacts the environment,” he said.

“In order to minimise any inconvenience to our shippers during the container terminal upgrade, we have decided to use other available terminals such as Maydon Wharf to load/discharge containers for our 225 service (SA-West Africa-Med) and to reduce our transhipment volumes via Durban.

“We have also decided to have Cape Town as the only call on the South African coast on the FEW3 service (Far East-West Africa) as doing so will avoid inconvenience to Cape Town shippers concerned about service disruptions that may occur as a result of the planned upgrade in Durban.”

Safmarine has also achieved success through its ‘overstay’ initiative, aimed at moving uncleared containers out of the port.

“This initiative benefits all parties concerned as the process assists in reducing the congestion at the port and is a more cost-effective option for our customers than storing uncleared containers at the port,” explains Ramdiyal.

Roy Ramdiyal … ‘Overstay initiative moves uncleared containers out of the port.’

Thabani Dlamini … ‘New port will potentially reduce shipping’s impact on the environment.’

Safmarine intervenes to minimise disruptions during port upgrade‘Dig-out port is good news for improved service efficiency.’

By Liesl Venter

Never under-estimate the importance of security.

This is the advice from security expert and national manager of Protea Coin Cargo Protection, Douw Steyn.

“Container volumes are increasing on a daily basis – and with that theft. And it is not necessarily just a South African problem,” he says. “More and more of the theft and damage to the cargo of LCL containers is taking place before it arrives in South Africa.”

He says it is important to ensure that containers have the best security in place.

“Clients and freight forwarding companies who give out information on the contents of the containers or who don’t handle the waybills and other documentation with care and utmost confidentiality are often very challenging,” he says. “It is important to safeguard this information as it ensures that cargo is not targeted by criminals. Clients and all role-players in the supply line of cargo must always take great care of their documentation and handle it with utmost confidentiality on a need-to-know basis.”

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By Liesl Venter

Bunker shortages and relatively high port costs remain two of the major

industry challenges at the Port of Durban.

According to Hendriette Theron, global business development officer for BBC Chartering and Logistics, these are both issues that are constantly monitored by the company which runs two liner connections that offer regular calls in Durban as well as Richards Bay.

“As long as the situation does not change from a supply point of view, the prices will be kept artificially high. However, we believe that it is in the interests of the region to become more competitive which will in the long run also push local providers to improve their offerings,” she told FTW.

“We follow this situation closely – especially with regard to the bunker situation. Our bunker desk strives to secure necessary supplies in advance for the vessels. In most instances our ships will have taken on sufficient fuel before they move through the ports of South Africa.”

The South African ports

of Richards Bay and Durban play an important role for the company, which is headquartered in Leer, Germany.

“It’s not just for project and heavy lift cargoes – they are also important bunker hubs for our vessels moving past South Africa,” said Theron.

With a fleet of more than 140 modern vessels, the company serves the South African region on a monthly basis through the South America–Middle East service while the BBC Far East Service offers a minimum of one westbound service connecting Asian loading ports with destinations on the East Coast of South America.

According to Theron, to date they have seen an increase in traffic for both loading and discharge activities in Durban and Richards Bay.

“We have almost trebled our loading activities over a three- year time frame,” she said. “This is also due to the fact that loading activities have been very low for us over the past three years, but South Africa remains an import market, too. We could see a substantial increase in discharging activities over three years as well.”

Theron says they remain confident that the region overall will continue to positively develop, although growth in shipping activities has put pressure on port infrastructure to meet the increasing demand.

“Competing ports in Mozambique and Namibia are also alternatives for shippers trying to avoid South African ports. In order to remain attractive the region will have to push investments in infrastructure not just on the port side but also in hinterland connections,” said Theron.

Hendriette Theron … ‘Durban and Richards Bay are important bunker hubs for our vessels moving past South Africa.’

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By Liesl Venter

Escalating costs are gradually taking their toll on abnormal road hauliers who are

finding it increasingly difficult to operate.

According to Carl Webb, managing director of Project Logistics Management (PLM), a big part of the cost is the manner in which permits have to be obtained and the fact that abnormal carriers are not allowed to return to their base depots with normal loads.

“We cannot apply for permits online or at a post office that is easy to find for example. In other words it means driving to the permit office, queuing, paying cash for the permit and then driving back to the vehicle to deliver the permit as the vehicle is not allowed to move without the permit physically on board – all of that costs money. And this process happens for

every single load.”In addition, abnormal carriers

all return empty after delivering their cargoes which means the costs increase.

“We are not allowed to return with a normal load, so unless you have an abnormal return load the vehicle comes back empty. And of course this happens more often than not because we have an imbalance of exports and imports. So more than 50% of the abnormal vehicles return to Durban empty, increasing the cost of logistics in the country.”

Webb, who has been advocating an online permit system as well as permits for longer periods of time, says further costs are incurred through corruption and bribery.

“It is rife at the moment and it is happening right here in South Africa. It is not just a cross-border problem. And if we don’t pay the bribes the truck is

impounded and the loads stand which costs money.”

Webb says it is reaching the stage where fewer and fewer people are interested in doing abnormal loads.

The intolerable situation these road hauliers face is clearly seen in an incident at the Durban port some weeks ago where trucks, loaded with abnormal cargo, were ready to leave the harbour at just after 5pm, but as they did not have official escorts were forced to stay.

“The problem came in,” says Webb, “when Transnet National Ports Authority forced the vehicles to leave, stating that regulations prohibited them from staying on the harbour premises. So you are not allowed to stay in the port until you have an escort and you are not allowed onto the roads. The result was huge fines as the vehicles were pulled off immediately they exited the port.”

Webb said it was important for the industry to get a voice within the Abnormal Load Technical Committee of the Department of Transport in order to address their concerns, but this has proved impossible to date.

Permit red tape pushes up costs for abnormal hauliersBribery and corruption add to transporters’ woes

Carl Webb … ‘More than 50% of abnormal vehicles return to Durban empty.’

By Liesl Venter

The Port of Durban has some serious challenges to address, with surrounding roads and services not having kept pace with port upgrades.

According to Joe de Villiers, director of Cargocare Freight KZN, the congestion on the port entry road has become so critical that it is increasingly hampering the guaranteed time delivery service to clients.

“It is fast becoming a major obstacle to the flow of business,” he said. “At present a large percentage of the container traffic is handled by the terminals in the Bayhead/New Pier area.

This entire area is serviced by a single, outdated road that has to serve both the import and export traffic.”

De Villiers says Durban remains a critical area of focus for most freight companies in the country.

“If operations are disrupted here it affects our service across the board. It is not uncommon to have 3 or 4km queues of trucks waiting to enter the Bayhead Road.”

While the Durban market is undoubtedly tighter than that of Johannesburg, more effort is going into quality service and Cargocare has recently upgraded its operations systems in the city to improve sales capacity in the Durban and surrounding areas.

“But we also need to address the issues around the container terminal and the congestion if we want to improve operations effectively.”

De Villiers says while port

authorities have over the years increased and improved handling capacity at the terminals to handle increased volumes, the infrastructure around the port has not kept pace.

The increased volumes have also led to additional container depots being opened in the area, which has just exacerbated the entire situation.

According to De Villers the time has come for the port to consider a major road between the terminals and South Coast road to take some of the pressure.

In the meantime freight companies have to find solutions around the congestion to ensure that business does not suffer.

Road congestion compromises forwarders’ delivery guarantees

‘The time has come for the port to consider a major road between the terminals and South Coast road to take some of the pressure.’


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By Liesl Venter

Durban-based JVC Freight Carriers celebrates its milestone 20th anniversary

this year, and owner Raj Maistry believes his philosophy has paid off.

“Being prepared to compete with transporters on rates and value-added services – along with hard work and dedication – has been the winning formula at JVC, says Maistry, who has worked in the shipping industry all his life.

“I can’t imagine having done anything else,” says the Durban-based businessman who started JVC Freight Carriers twenty years ago this year.

“But I would not have been able to build up this business without my wife’s support and dedication,” says Maistry. “She took on multiple roles to allow me to focus on the business and for that I am very grateful. As for retirement – I am not ready to step out entirely and I must admit I don’t know if I ever will be ready for that. I am blessed with an extremely good staff complement that is the

reason behind our success. In 20 years we have only had one staff member leave,” he says. “It is their dedication and hard work that has allowed me to semi-retire.”

He recalls starting the business at a time when transport brokers had a bad reputation in the industry. “In the first few years it was difficult as we had to gradually rebuild the reputation – and while people knew me and trusted me they were still wary as they had had their fingers burnt. It took time to convert clients.”

Maistry entered the shipping industry immediately after school and worked for 17 years in sales and marketing for shipping lines. “It was while calling on clearing and forwarding agents as well as importers and exporters that I realised one common occurrence was people being let down on the transport side. It led me to start JVC Freight Carriers where the ethos has always been honesty, integrity and communication.”

This is the key to successful transporting because most people understand that things sometimes go wrong, says Maistry.

“Continuous feedback to customers as to where the cargo is at any given time is a must.”

But communication within the business is just as important. “We hold monthly staff meetings where we discuss at length what we have done wrong, what we have done right and what we can improve or learn lessons from. This way we are always doing it better to ensure we have satisfied customers.”

The company has had an ISO accreditation through Dekra

since May 1998 and a level 3 BEE rating.

For Maistry it is all about finding solutions to the challenges. “The port inefficiencies, the limited operating times of container depots, meeting the deadlines from when cargo arrives to when penalties set in, turning trucks around faster are all daily challenges. The secret to success lies in finding a way around it all and ensuring your customer is happy and satisfied at the end of the day.”

JVC celebrates 20 years

Team work … Neren Moodley, Matthew Andrew, Malusi Shange, Hector Farrel, Anthony Adams, Danny Manikum, Vickash Haripersad, Raj Maistry (sitting), Safish Deepanand, Nithia Govender and Niren Jayram.

By Liesl Venter

Hiring a transporter on the cheap should be reason for concern, but more often than not people are willing to take the risk.

Rogan Brent, director of TCS Logistics, warns against this very practice saying that cheap more often than not results in expensive.

“Responsible transporters do

not take unnecessary risks or chances with someone’s cargo and they make sure that everything is in place to ensure it reaches its destination in one piece.”

In a recent incident in KwaZulu-Natal a bridge was badly damaged when the transporter moving cargo did not take the time to measure his load.

“Mistakes like that are usually

avoided if one chooses a reputable company,” Brent told FTW.

He believes it is important for exporters and importers to understand the complexities of road transport and that much has to be taken into consideration when a rate is determined.

“It is a good idea to get several quotes. If one quote is much less than the others it should be a

warning sign raising the question why are they so much cheaper?”

In another incident an exporter found his goods held up in Chirundu for more than a month because the transporter did not have the right equipment and the trailers were illegal in Zambia.

“For every day that cargo is not delivered the costs of not operating increase.”

‘Cutting corners on rates is generally an expensive option’

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By Liesl Venter

South African Inland Logistics is set to take part in a pilot project at the Port of Durban

to find ways of improving transporter turnaround times and decrease congestion.

According to the company’s Gerald Naidu, they were approached by Transnet to take part in the programme that will attempt to set slots for transporters to pick up their containers.

“Congestion has been the Achilles heel of the Durban port for a very long time. I think everyone is in agreement that the situation cannot continue which is why we have agreed to take part in this project. It is not just the port authorities’ problem, but all of us that are affected by it and we should all be trying to find a solution,” said Naidu.

The pilot project will work on a booking slot arrangement for transporters who will have to pick up their containers at the exact time set aside for them. “We believe such a system could result in quicker turnaround times, effectively decreasing congestion.”

He said working with port authorities made much more sense, which was why the company welcomed being part of the pilot. “It is counter-productive to only point fingers at the port and to find fault. Transporters need to be part of the solution.”

Naidu said in light of Durban being the gateway into South Africa as well as Sub Saharan Africa there was much to be gained from an efficient port by everyone.

“We are quick to beat them up when they don’t perform, but we should also be looking at what

they are doing right and what they are doing to improve efficiencies and take that into consideration as well.”

According to Naidu, there is much to be positive about in the context of Durban. “Port authorities remain upbeat about

the improvements and upgrades happening at the port which will ensure the city retains its role as a strategic and logistical hub.”

He said it was therefore important to see continued efforts to upgrade not only the port but Durban itself.

Pilot project will address truck turnaround times at portBooking slot arrangement to be introduced

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Improved infrastructure in and around the Port of Durban is essential to ensure the

country remains competitive, according to Sayed Mohamad, group logistics manager for CHC Resources.

“There is no doubt that we need more infrastructure at the Durban port, especially in terms of access. There is only one road leading into the harbour and that is why we have congestion to start with.”

Mohamad says with trucks piling up on any given day, leading to complaints from residents in the area, it has become crucial for Durban city officials along with Transnet to try to find a solution.

“The reality is that as a country we rely on road to move our cargo. So if one vessel arrives with 3000 containers on board to offload it means we need 3000 trucks to pick them up. The result is severe congestion when you only have two lanes for those trucks.”

He said while there were clear moves from government to move cargo to rail there was still reluctance in the market to take the big step. “For the most part people don’t trust rail as they have negative perceptions of it. It does not really matter if those are true or not, because the reality is that they are not using rail. And while we are using road in and out of that port we must ensure that the necessary infrastructure is in place.”

According to Mohamad there is more benefit in a trucking highway than trying

to move people from road to rail. “In ten years we have not seen any improvements in the rail system or in people’s perceptions of it. Customers want their goods as soon as possible and rail just takes too long.”

Railed goods from Durban to Johannesburg take an average of five days to arrive as opposed to overnight when using road, he said.

“It is not about what the transport and logistics industry wants, but rather about satisfying the customer, who is poised and ready to make the next sale. And to do that he needs his goods fast.”

Mohamad says infrastructure must be a priority for the city fathers who sometimes take their time to address problem areas.

“The recently completed bridge at the port to ease traffic took some seven years alone to sanction. It needs to happen faster if we want to be competitive.”

Sayed Mohamad … ‘People don’t trust rail.’

Rail has failed to fight negative perceptions‘More benefits in a trucking highway’


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SA Revenue is Service continuing its modernisation of the cross-border

trade environment, with the conversion from the old specific Customs CCA procedures to the standardised import and export BOE process and the roll-out of the new ACM requirements in the month of May. And specialised forwarding and clearing software service provider Core Freight Systems has given its thumbs up to the rate of progress to date.

“We have accommodated the new Sars requirements within our integrated cross-border functionality,” says Core Freight’s Glenn Lawson. “We will monitor its ongoing usage by our clients to identify areas for enhancement in line with actual operational experience.

“Our objective is not only to provide an EDI message which is technically correct but to provide a system that assists our users in managing their business in the optimum manner. This addresses both the specific operator activities and its management from an organisational perspective.”

Lawson has represented Core Freight at the relevant Sars technical and business forums throughout the “modernisation journey” and has actively participated where appropriate to contribute to implementing the best solution for the industry.

“The Core Freight application incorporates modern windows-based technology and a logical process-flow which makes it easy to use across all transport modes – air, sea, road and rail,” says Lawson. “It therefore provides comprehensive and relevant functionality for South African freight forwarding and customs clearing. The CoreXchange module is particularly effective in allowing the transfer of data between the CoreFreight database and other applications, avoiding the effort of manual recapture and the associated potential error and cost.”

Sars’ modernisation journey takes another step forward

Glenn Lawson … ‘We have accommodated the new Sars requirements within our integrated cross-border functionality.’

Recognising the critical role that motivated staff play in the success of any business, Transnet Port Terminals last year set up a People Transformation and Development Unit (PTDU) headed by Moshe Motlohi, former terminal executive at DCT.

“Its purpose is to establish value-adding practices that can be implemented throughout TPT in order to equip management and employees with skills to benchmark themselves against the best in world with quality, speed, cost, safety and morale the key focus areas,” says Motlohi.

TPT focuses on staff motivation


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Continuous research and development of new methods of securing containers and

other cargo leaving the port of Durban is part and parcel of the work at Protea Coin Cargo Protection.

Responsible for securing containers for road and rail using a unique patented locking system, the company specialises in the clamping of containers from the port of entry to the client, says national manager Douw Steyn.

“And making sure that security is never breached means investing in research and development.”

According to Steyn it is an ever-evolving industry in which Durban

plays an integral role.“Durban is our main port of

operations. The main lines, road and rail, run from Durban to City Deep where the biggest inland port is stationed. Road traffic goes to various depots and client premises, as well as cross-border from here. All the containers are clamped by Protea Coin Cargo on the railway lines.”

From Durban all containers being moved by train are clamped regardless of where they are going in South Africa, while export containers are de-clamped before being loaded onto vessels.

“More and more importers are making use of LCL containers,” says Steyn. “We have therefore extended our services and can

assist with the unpacking of the containers in various warehouses to ensure that the client’s stock arrives in full as per the manifest. We also assist with customs inspections. We complete a report supported by photos to confirm the load and if there is theft or damages it is documented for the client.”

According to Steyn, security of cargo plays an integral role in the transport chain. “At the moment there is especially a great demand in securing fuel wagons on the road and railway lines because theft is taking place on a very big scale. Also the securing of static containers in depots and on the roads after accidents or breakdowns has been on the increase.”

Clamped and secure … securing of static containers in depots and on the roads after accidents or breakdowns has been on the increase.

Security company extends services to unpacking and customs inspection

By Liesl Venter

CHC Resources is upping its game in Durban with a R20-million refurbishment plan at the Prospecton premises.

According to Sayed Mohamad, logistics manager for CHC Resources, the investment in Durban will benefit the entire company, as Durban is the link to countrywide efficiency and productivity.

“Durban remains a crucial focus for the company as this is where it all starts and ends,” he told FTW. “Our growth strategy is based on Durban functioning well and being able to address the needs of our operations in

the rest of the country. It is for that reason that we are investing in upgrading the premises.”

In 2010 CHC spent some R9 million on the premises. With the latest upgrade a further 5000 sqm will be added to the warehouse creating a total of 30 000 sqm. “The new extension will be under roof and includes an undercover bond store that will allow us to accommodate under-cover SOS and OS bond facilities. We will also see 11 extra dock levellers added.”

According to Mohamad, the extension and upgrade of the facility takes its operations to the next level. “We will be able to double our capacity by one

shift once this is complete while also being able to address any future growth with ease.”

Mohamad said the entire upgrade was expected to be completed by no later than the end of July.

“We hope to see all the new elements in operation by August 1,” he said. “Durban is a very important link in the business. Everything comes here before being distributed to our various depots. Through this programme we will be able to handle any growth and increase in capacity.”

He said another focus of the extension was to assist more third party customers and to

handle more customs-stopped containers.

“It gives us a competitive edge in the market due to our ability to now handle large volumes of containers.”

CHC invests R20m in warehouse upgrade

The new warehouse extension under construction at CHC Container Depot in Durban.


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By Liesl Venter

Transporters are being bled dry with little other option than to pay bribes or lose thousands

of rands while trucks stand for paperwork to be completed.

Whilst various provinces already interpret the TRH 11 – the document regulating the transport of abnormal goods – differently, the problem is exacerbated by corruption and bribery, victimising those not willing to cough up and pay.

More and more truckers are voicing their concern over what they call an archaic system that increases the cost of abnormal transport ten-fold.

According to Carl Webb, managing director of Project Logistics Management (PLM), the TRH 11 permits for abnormal vehicles can only be purchased at the department of transport’s office and must be paid for in cash

or by cheque.“You have to drive to the

office, pay for the permit and then drive back to your vehicle as the original document must be in the vehicle at all times. So often we compare our transport systems to those in Australia, possibly because it is a relatively favourable comparison, but there

they can apply online for the permit, pay by credit card and have it emailed to them. The costs are therefore immediately lower.”

The permit is also issued for a period of time while South African abnormal load hauliers have to apply for a permit for

every trip. “The system we are using is archaic and it is increasing costs,” said Webb.

Add to that the problems with bribery. Truckers are complaining about officials in Estcourt in KwaZulu-Natal who are taking the permit off the truck driver. They claim the driver is charged with trumped-up charges and the permit confiscated. Once money changes hands the permit is given back and the truck can continue.

According to Webb, it is becoming increasingly difficult to operate in South Africa. “You are doomed if you do and doomed if you don’t. If we pay the bribes we are in the wrong and if we don’t pay the bribes we are victimised and our trucks are stopped all the time.”

Another concern is the amounts of money trucks are being charged to drive through towns. “In Piet Retief the fee is now R750 to go through the town with a 3-metre-

wide load as they claim that one cannot use the heavy vehicle bypass and must be escorted through the town. Balfour on the other hand charges R2500 for any abnormal load being escorted through the village. And it is all cash up front.”

Operators who specialise in abnormal loads are finding it increasingly difficult to operate without passing on the extravagant costs to their customers.

“Many operators don’t want to do abnormals any more, partly because of the ludicrous requirements and legislation, but also because of the corruption involved,” said Webb. “And if one looks at the abnormal requirements then it becomes crucial to ensure we have specialists in this area as this is the cargo going to the mines, to the power stations, to the projects – and is critical cargo in most instances”

Excessive red tape creates a breeding ground for bribery

‘Online permit applications would make a huge difference’


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By Liesl Venter

The development of the Durban-Free State-Gauteng corridor, which effectively

integrates and coordinates port and rail transportation for an improved customer experience across the country, will bring major benefits, says Sheldon Cockcroft, Bridge Shipping Group’s chief operations officer.

Apart from the proposed expansion and refurbishment of Durban harbour, there are a number of infrastructure development projects in the pipeline. “This is great news for the logistics industry and its clients,” says Cockcroft.

The corridor continues to play an integral role in the country’s supply chain since the economic hub of Gauteng is not situated near a port and is highly dependent on Durban.

Improvements in the

infrastructure on the corridor will therefore go a long way to improving the country’s logistics offerings.

“We are also seeing investment in the Richards Bay container areas as well as developments at the Port of Ngqura near Port Elizabeth to handle manganese as well as in Saldanha to accommodate the iron ore channel – all of which is welcomed,” says Cockcroft. “The ideal outcome would be increased capacity for exports and imports. Instead of having to unpack cargo destined for Gauteng when it arrives in Durban harbour, the improved infrastructure will, hopefully, allow more cargo to be sent via rail. This, however, requires buy-in from clients who need to make cargo flows more rail-friendly and, in this way, they will add substantially to their bottom line.”

He is confident that other positive knock-on effects will accrue as a result of the infrastructural development. “The biggest benefits will be seen in growth in the informal sector, with farmers being able to sell their produce and ship it more effectively, while mines will be able to increase their production due to better access to transportation,” says Cockcroft.

Furthermore the company has, after careful analysis of the needs of its customer base, also decided to acquire a warehouse facility adjacent to the Port of Beira in Mozambique.

The construction of the 7 200sqm warehouse, together with a 9 000sqm yard and 250sqm office will provide Bridge Shipping with a solid presence in Mozambique.

Colin Emanuel, CEO of the Bridge Shipping Group, says

a number of benefits will be derived from Bridge Shipping’s Beira operation, including the ability to offer customers a choice between the ports of Durban and Beira.

Integrated corridor is good news for logistics efficiency

Sheldon Cockroft … ‘also seeing investment in the Richards Bay container areas.’


www.ftwonline.co.za

By Liesl Venter

Making the big shift to rail is not as daunting as many would think, says transport

broker Thaven Naidoo of JTR Freight Services.

“When it comes to the green revolution then rail makes a lot of sense and many of our clients who are embracing ‘green’ are willing to make the transition to rail even if it does take slightly longer to deliver their goods,” he told FTW. “There are many excuses why people don’t want

to use rail and prefer road, but using the right mode of transport for the right commodity is more important than debating whether to use road or rail.”

Naidoo believes that rail is much more reliable than many are making it out to be and says major inroads have been made by Transnet on the Durban to Johannesburg corridor.

“One must remember there will always be road transport – we will never have a situation where there are no trucks on our roads, but we should try to put

some emphasis on rail.”He believes that transport

brokers like himself play a major role in educating clients on the benefit of using rail. “Promoting rail is an important task in the current economic environment and also in terms of our infrastructure in the country.”

He believes anyone trying to move large volumes of cargo out of the Durban port should not be considering anything other than rail especially in terms of the congestion - with only one road into and out of the port.

“Rail is a good option that is often left behind due to negative perceptions,” he said.

Clients embracing ‘green’ consider rail

Thaven Naidoo … ‘Major inroads have been made by Transnet on the Durban to Johannesburg corridor.’

By Liesl Venter

A shortage of well-trained drivers remains a major concern for the industry who are finding themselves relying more and more on foreigners.

According to Gerald Naidu of South African Inland Logistics, there are just not enough trained South African drivers in the system resulting in companies employing foreigners.

“We have instituted an in-house training programme for our drivers to ensure they have the necessary skills when they go out on their own,” he said. “The importance of training cannot be emphasised enough, especially in the light of the costs involved – not just of the truck but also the cargo being transported. It can run into millions.”

According to Naidu, before training can commence one first has to attract drivers to the industry. “Not everyone is suited to be a truck driver and it is therefore important that we attract the right type of people to the industry. Our reliance on foreign drivers in this instance once again remains a concern.”

Naidu says to ensure drivers deliver according to expectations it is also important that they are continuously trained to ensure their skills remain up to date.

“It is not just about training once off, give them a truck and off they go. For drivers to be able to meet the expectations of their employers it is important that there is training available to them on an ongoing basis.”

Shortage of trained drivers creates reliance on foreigners

Gerald Naidu … ‘In-house training programme introduced.’

By Liesl Venter

An efficient port is vital for the success of Durban, says Raj Maistry of JVC Freight Carriers.

“The port plays an integral role in the city and in the country. It is important that we all work together to ensure it is run efficiently.”

According to Maistry, the impact of a not-so-fluid port can be felt not just by those in the freight, transport and logistics industries but in the direct areas surrounding the port.

“The residential areas are affected by congestion that occurs when trucks back up at the port due to inefficiency or lack of capacity. It does spill over and becomes very difficult to manage.”

Despite the building of a staging area for trucks waiting to enter the port, eliminating the long queues in the streets, residents from areas including the Bluff, Clairwood, Merebank, Wentworth and Umbilo in April took to the streets, marching down Edwin Swales Drive

demanding a ban on trucks in the area. They accuse freight companies of causing extreme congestion and fatal accidents. Freight companies on the other hand say they have no choice but to use the roads in these areas due to the waiting times and delays caused at the port.

While transport officials mull the conundrum, long-time role players like Maistry say the answer lies in improving port efficiency to allow for faster turn-around times for trucks.

“We need to look at port management to start asking questions around why one shift moves more boxes than another. The first step is to manage the productivity of the port by asking the right questions and finding solutions to those questions.

“At least 80% of my customers are Johannesburg-based. They are not situated at the port and don’t want to hear the port held up as the reason for every late delivery. The reality is that if it goes wrong at the port the entire transport leg is delayed.”

Port congestion sparks anger of surrounding residents

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By Liesl Venter

Independent consolidator CFR Freight has seen significant growth in its share of the LCL

market in Durban over the past ten years – with more to come, says branch manager Clive Nel.

“Our loyal customers have played a major role in the success of this branch,” said Nel who hinted at big plans in the pipeline. “Ten years ago we were a staff complement of only six people, now there are 30 employed by CFR in Durban,” he said. “We were also one of the first branches to own a truck and we now have a fleet of three to add value to the clearing and

forwarding community as a one stop shop for their LCL cargo.”

The handling of transhipment cargo heading for the East and West Coast of Africa as well as the Indian Ocean Islands is a big part of the business, said Nel. “We also handle a lot of cross-border cargo heading for southern Africa along with all the cargo that is released in Durban. We ensure unpacking takes place before it is transported to Johannesburg for distribution.”

Nel says the company is continuously focused on looking at opening new direct services across the world to ensure exports are moved

more efficiently.“From an import point

of view our Durban branch remains a hub for everything that is not directly linked to Johannesburg,” said Nel. “Durban is the gateway into Africa and having a well-run office in the city is extremely important for any company moving cargo across this continent.”

With authorities all looking at establishing a system where cargo is cleared at the port of entry, Durban’s role will become even more significant.

“There are some exciting times ahead for Durban,” said Nel.

By Liesl Venter

Corruption on South Africa’s roads is rife, with truckers often bearing the brunt of it.

According to Rogan Brent, director of TCS Logistics in Durban, an unwillingness to pay bribes ultimately leads to victimisation.

“Two of our trucks were recently stopped and the drivers told that the loads were not compliant with their abnormal permits. In both cases we were told that we were 50mm wider than what was declared,” Brent said.

With a bribe of R800

requested, the truck drivers were told they would not be allowed to leave until the money had been paid to the official at the weighbridge.

Brent was called.“I took the decision not to pay

the money because I knew that the charges were not correct. We called in the senior commanding officer of the region in an effort to resolve the matter, explaining and showing that we had not infringed our permits, but in no uncertain terms I was told that they were not interested.”

Short of paying the money requested Brent decided to have new permits issued to the stipulation requested by the official. The cost to hold the trucks for 24 hours at the weighbridge until they were released was R10 000 and the cargo was in fact within the permit allowance in both cases.

“It is absolutely impossible to avoid the corruption. If we take the matter up with the Department of Transport we are

told to go to the SAPS and if we do complain our trucks are victimised and every single one stopped with something found wrong on them.”

It is a situation the country cannot afford. “We have been forced into a corner,” he told FTW. “South Africa is becoming increasingly difficult to operate in and therefore more and more operators are giving their drivers

cash up front and sending them off with the message to not phone home and just get the goods delivered no matter what. That is not something we should be proud of or be promoting.”

He says while they do their best not to entertain corruption, authorities are going to have to step in and put a stop to what has become an easy money-making racket.

Honest transporters victimised for refusing to pay bribes

En route and legally compliant ... SA becoming an increasingly difficult operating environment. Photo: Shannon Hill

‘If we do complain our trucks are victimised and every single one stopped with something found wrong on them.’

Own trucks add value for independent consolidator

Clive Nel … ‘exciting times ahead for Durban.’


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port facilities and site access■ Monitoring of shipments, vehicle planning to meet vessel dates

and arranging suitable vehicles for transport■ Supervision of loading ex vessel onto vehicles where necessary■ Transport of abnormal and superloads■ Transport of general cargo including stuffing/destuffing of

containers■ Monitoring of vehicles en-route■ Liaison with site personnel receiving cargo

CONTACT DETAILSDurban Johannesburg Tel 031 765 1901 Fax 031 765 3376 Tel 011 450 4495 Fax 011 450 3064Carl Webb: 082 886 6003 or Sonja Van Schalkwyk: 071 681 6560 John Du Bourg: 082 880 1177

www.projectlogistics.co.za FTW5597


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By Liesl Venter

A presence at strategic locations along development corridors in Africa to assist

customers in moving commodities through the corridors and shipping them is what Grindrod Freight Services’ growth strategy is all about, says the division’s CEO, Dave Rennie.

“For this reason we have made significant investments in the Port of Maputo and at Terminal de Carvão (Maputo Coal Terminal). Durban and Richards Bay are however also major ports in Africa and are therefore very important in Grindrod’s operations, with many of the business units providing key functions along the supply chain. We have dry bulk terminals in both Durban and Richards Bay and a liquid bulk terminal in Durban,” he told FTW. “Our corridor management team (GCM), a specialist rail management company within the Grindrod rail division, manages the rail co-ordination on behalf of the group’s customers to the terminals in Richards Bay and Maputo.”

According to Rennie, these two ports are therefore integral to the company’s growth strategy.

“Africa has the coal to contribute to the rising global demands. Botswana, for example, is sitting on a coalfield of around 20 billion

tons and the quickest route to market for this landlocked country would be via the Waterberg to Richards Bay or Maputo. Apart from this, there is a need for junior miners to have capacity in Richards Bay. This has led to the expansion plans of the Grindrod terminal facilities in Richards Bay,” he said. “Opportunity lies not only in the port but along the supply chain for many of the business units. The Grindrod rail division is positioning itself in terms of rail operations – shunting, locomotive manufacturing and leasing and rolling stock maintenance – as well as growing the locomotive fleet to support the growing client base.”

Rennie says with regard to Durban, Grindrod is focused on

the transportation of containerised cargo – a feeder service by sea to other smaller African ports – and inland by rail and road, also providing all the other services related to containerised cargo such as warehousing, bonded storage, packing and unpacking, handling and distribution. It is an area where the company does see itself growing.

“The Grindrod Intermodal facility in Bluff Road now provides 9000 sqm undercover state-of-the-art warehousing with 28 000 sqm of open storage area. The open storage yard includes a bonded area,” said Rennie. “This facility also specialises in the handling and storage of mineral and mining products with a capacity to handle up to 40 000

tons. The ferrochrome is delivered by tipper trucks, stored in the yard, packed into containers and then shipped to Asia.”

He says while there are challenges to Durban and Richards Bay, they are not unique to Grindrod. “The biggest challenges remain related to congestion in the Durban port. Low shipping container volumes and freight rates are obviously also a concern. The result is that discretionary cargo is moving away from southern Africa and transhipment cargo intended to serve the region has found alternative hubs. Availability of rail resources remains a challenge in Richards Bay but Transnet Freight Rail has come a long way in creating a more efficient service on this corridor.”

Grindrod takes corridor approachRail division positioning for growth

Grindrod’s intermodal facility in Bluff Road now provides 9000 sqm undercover with 28 000 sqm of open storage area.

AON South Africa .................21Aviocean Natal ......................23BBC Chartering ......................7Bridge Shipping Group ...........3Canada States Africa Line (Mitchell Cotts Maritime) .....25Cape Global Investments ........6Cargo Care Freight ................19Celtic Freight & Logistics .....21Central Weighbridge Company .................................2CFR Freight ..........................27CHC Container Depot ...........22Compu-Clearing ....................13Core Freight Systems ..............1

Destrans .................................16DP World Cargo Services .....14Evergreen Agency .................21Expolanka Freight ...................6Frits Kroon Transport ..............3Generator & Plant Hire .........25Gotrans Freight Services .......11Grindrod Intermodal .............17International Liner Agencies ................................10JLR Services and Warehousing..........................19JVC Freight Carriers .......15, 27Kalmar Industries South Africa ......................................9Kapele Freight & Logistics .....9

Kayhil Freight .......................22Kintetsu World Express ..........5Kodav Logistics Solutions ....16Land and Sea Shipping .........13Lombard Insurance Company ............................ IBCMacro 2000 .............................6MACS Maritime Carrier Shipping ................................11Mitsui OSK ..........................20MSC Logistics ......................18MSC Shipping .......................25New South Africa Shipping ....6Port Maputo ..........................17PLM Project Logistics Management ..........................27

Protea Coin Cargo Protection ..............................21RFB Logistics .........................8SACD Freight .........................5SDV ....................................IFCSouth African Inland Logistics ................................19Spedag South Africa .............19Storage Solutions ....................9TCS Logistics........................13TSI Central Station ...............23United Maritime Logistics ....11UPS ...................................OBCZiegler .....................................5

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