S uccess in Africa involves sweating your assets and creating efficiencies in order to reduce round trip turnaround times and squeeze in extra trips. That’s the view of Transtech GM Hilton Tait who believes there is too much time wasted at border posts which affects transit times “We have fixed costs for drivers and assets, but we need to spread these costs over as many trips as possible,” he said. Port delays, potential cost increases and a looming port congestion surcharge were all elements that were bound to impact volumes through South African ports, he added. “As things stand we still hold sway, but other ports like Beira and Walvis Bay are making inroads into the cross-border routes. According to Tait Mozambique’s oil and gas sector is a major focus at present with everyone realising the huge potential. “All the global forwarders are trying to get a foot in the door and to claim their share of this business, but for the transporter it’s a different challenge as we need to price ourselves correctly. Initial indications are that return loads will be in short supply and we need to take into account the cost of an empty return leg,” he said. Transporters face an additional challenge – competing with a number of foreign hauliers offering discounted rates and sub-standard service levels. But Tait believes the tide may be turning as shippers and consignees are realising that cheap may not necessarily be the best, and many of these operators are now losing market share. “These operators have trucks that aren’t roadworthy, aren’t maintained, and they seldom meet vendor requirements regarding safety, GIT cover, driver training and other industry norms. But they continue to offer low rates which unfortunately some of the market expects us to match – and it’s simply not possible to do so in a long-term model."
INSERT: Shippers and consignees are realising that cheap may not necessarily be the best. – Hilton Tait