Industry buckles under pressure of fuel and toll costs

The fluctuating fuel price remains a major concern to road hauliers who are now also facing the uncertainty surrounding the implementation of the new toll road system. According to Vicki Nell, operations manager for HB Services, while a fluctuating fuel price is par for the course for the industry, the current trend where crude oil prices are constantly increasing exacerbates the problem. In addition, the recent transport strike has increased the labour rate “The toll road system will add further strain to effective costing of the local transport of goods,” she says. “The costing of the three factors – fuel, the strike and the toll system – together will be passed down to consumers and it poses a definite economic challenge at present.” Nell says the state of roads, deteriorating at an alarming rate, is another major concern for hauliers. All of this adds to the bottom line resulting in ever-increasing costs. But despite this road delivery remains a viable option, as it is fast and reliable. Isabel Goosen, operations assistant at HB Services, says while South Africa has a better rail infrastructure compared to many other African countries, it is not a mode of transport the company has considered using to date. “Consolidations make up a high percentage of our business and it would not be practical to use rail for such loads,” she says. “Also packaging costs would go up as most of the products would have to be repackaged for rail, and the transit time would increase.”