Corruption and permit costs challenge operators

Corruption remains one of the biggest challenges on the route from Johannesburg to Lusaka, the capital city of Zambia, says Duene Reddy, the head of operations for Reddy Logistics. “Even when everything is done legitimately, there is nothing you can say or do, it is almost like being held to ransom unless you give someone something,” he says. Having your truck on the ramp at a weighbridge is another sure way to add to the cost of a single journey into Lusaka. “Officials at the weighbridge don’t use a computerised system, they simply come over to your vehicle, tell you your vehicle is overweight and you have to give R100 in order to pass,” he adds. “Everything is about paying to get the delivery to its destination. As transporters, we have been forced to cut profits in half,” he says. Reddy, who is based in Luanda, says another problem relates to the use of vehicles registered to the company in South Africa. “There are insurance and permit costs galore. So we decided to register our vehicles in Zambia and this has made business easier,” he says. However, overcoming one hurdle often means preparing for the next one, says Reddy. He says they use two routes to Lusaka, either via Botswana or via Beitbridge border in Zimbabwe. “Botswana is faster but often when we get onto the other side at the pontoon, we find one of the ferries near Vic Falls always broken, so time saved is lost because we have to wait for the ferry to be repaired or drive, which takes time. “On the other hand, we experience diesel shortages when trucks have to refill in Zimbabwe, so we have many challenges but seem to have found a way to overcome the odds,” he adds. The pressure, though, shows no signs of abating. “Just two months ago we were paying R380 for a month Cross Border Road Transport Agency permit, which now costs R2 660. If you do the maths for the 20 trucks we operate cross border, you will see our costs have soared,” he says. And Reddy says it is hard to pass on increased costs to customers. “They look elsewhere for business. The Cross Border Agency fees have made business that much more difficult, we are in competition with operators in other countries, they have different cost factors to ours, and can beat us in terms of price, and so it is a huge challenge.” Reddy says in addition one needs a permit to Zimbabwe, costing R 1400, and more permits getting into Chilli Labombwe near Lusaka. The entire trip via border posts totals around R6 000 a truck. “It is a tough industry,” he says.