New fees will sound death knell for smaller operators

The huge increase in
the cost of cross-border
transport permits is likely
to put numbers of small and
medium trucking companies
out of business, according
to Dave Watts, Durban
maritime adviser to the
SA Association of Freight
Forwarders (Saaff).
The sheer enormity of
the increases (see tables
below), said Watts, obviously
puts great pressure on the
possible profitability of
a smaller trucking outfit,
and endangers their very
existence.
The actual case study
he released to FTW was
that of a small cross-border
transporter operating 10
rigs. Because it is a general
haulier with no specific
contracts, and hauls to
destinations in Zimbabwe,
Zambia or Malawi nominated
on a week-to-week basis,
it needs the flexibility of
having three permits per
truck. And sometimes these
permits are used only once
or twice in a three-month
period.
“As far as a 12-month
permit is concerned he would
have to find R5 720 x 10 x
3 = R171 600,” said Watts.
“This could be described as
a worst-case scenario, but for
this trucker, who operates to
three over-border countries,
the flexibility the previous
tariff gave him is essential.
“What I do not understand
is why an SA agency
requires a separate permit
per country. What can the
rationale be behind that,
except to provide additional
income?”
The trucker is equally
disturbed about the new cost
issue he faces.
“As a small operator I
just cannot afford this sort
of overhead,” he said. “We
can only try and pass it on
to customers if all other
transporters pass it on. So far
we have had no success in
doing this.
“Together with the recent
fuel price increases and the
general shortage of work,
I am now very concerned
about the future of my
business.”