Diesel restrictions cause massive cost hike for Angola truckers

Diesel restrictions on foreign truckers in Angola have now steadied up, according to Eben Pieters, director of the Cape Town-based road transport and forwarding specialists, Orion Logistics. This is a pleasant change from this time last year as the restrictions were first implemented. There was no clear detail in writing of just what the new regulations were – and their application at fuel stations seeming to change from day to day. So bad was this uncertain situation that some trucks were impounded and drivers arrested for alleged fuel offences. But there is clarity on the rules now. “You are now allowed to fill only the manufacturer’s specified number of tanks (two on most long-haul truck brands),” he told FTW. “But no extra fuel is allowed.” This really pushed up the fuel prices per trip to Angola immensely. With no extra tanks being allowed to leave Angola, and provide cheaper fuel for the whole return leg and some, Pieters estimated last year that the extra fuel cost amounted to R30-R40 000 a month. And that still remains the case. But the alternative switch to seafreight by shippers as fuel costs rocketed under the new restrictions, as was suggested to FTW last year, does not seem to have transpired. The congestion at Angolan ports, like Luanda, is just so bad that any cost advantage is overcome by the extreme delays in cargo delivery, according to Pieters. And, in fact, the congestion problem at African ports in general has actually resulted in some valuable extra business for Orion. “We are now running in 13-24 days from Cape Town and Johannesburg to Angola,” Pieters said, “and then on to the DRC’s major river port of Kinshasa – where port congestion is even worse. I even heard of one case where the seafreight cargo transit time was seven months.” But, meantime, although the Angolan diesel price is comparatively cheap – 42% lower than the average world price, said the World Bank – it has been rising rapidly, he added. It has almost doubled in the last couple of years. And, at this time last year, the price of diesel in Angola was about R4 per litre compared to R13 in SA. But now the Angolan fuel cost has risen over 66% to the equivalent of R6.65/l (March 23 price), compared to R10.05 on the Reef and R9.74 at the coast in SA. And the comparative price differential has also taken a knock. In early 2014 it was a 225% difference but is now only 46.47% (taking it at coastal prices). “But despite all this,” said Pieters, “there is still more to be made in Africa - if you know what you’re doing.” INSERT Last year the estimated extra fuel cost amounted to R30-40 000 a month. – Eben Pieters