Policy uncertainty puts roadfreight industry under pressure

The transport sector faces
some big policy issues in 2017
and if not resolved they will
hit operators hard.
Road Freight Association
technical and operations
director, Gavin Kelly, said the
ongoing uncertainty around
policy and legislation was a
growing concern.
“We are going to have to
face these big issues and
at some point answers will
have to be given,” he said.
“How the country finances
and maintains roads is one
of these issues. Is it going to
be a levy or a toll? We simply
cannot afford a similar
process to that of the original
Gauteng e-toll programme.”
He said uncertainty
when it came to policy and
legislation made for difficult
operating conditions as it was
impossible to plan for the
future, while the impact of
new regulations and charges
without much notice had
huge impact on cash flows.
“Transporters have had
a tough few years and there
seems to be no big change
in this outlook in 2017. The
industry has been under
tremendous pressure with
increases in taxes, fees, fines
and tariffs.”
Kelly said
all of the
uncertainty
continued to
play havoc
with rates,
making it near
impossible to
give quotes.
“You may be
selling your
service at a
particular
rate – but
by the time the job has to
be done there has been so
much change you are losing
money on the transport. More
often than not operators
are shooting in the dark –
and one thing is clear, as
an industry we need to get
clarity on many of these
issues so that we can move
forward and plan for them
regardless of whether we
like or dislike what is being
implemented. At least we can
plan.”
He said this included
the ongoing
threats of
banning
trucks off
roads during
peak hours.
“It just
adds to the
uncertainty
and the impact
is being felt.
Previously it
was the small
players in
particular who
were taking the punch – so
much so that we saw several
businesses close down, but
even the big operators are
feeling it now.”
He said with the
re-introduction of the permit
system, possible truck bans,
an ongoing tolling debate,
several exorbitant fees and
fines, not to mention a host
of unnecessary tariffs, the
new B-BBEE codes that
had to be adhered to were
for many the final straw.
“The requirements for
preferential suppliers in our
industry is very difficult as
one simply does not just
find someone down the
road with the right
credentials to supply
these items. For
many operators
this may be the
death knell.”
Kelly said
the RFA was
working hard
towards finding some of
the answers to the many
questions impacting the
industry.
“The politics have to
settle and we have to
bring some stability to our
industry going forward or
we are going to see more
operators closing shop.”
INSERT
We have to bring some
stability to our industry
going forward or we
are going to see more
operators closing shop.
– Gavin Kelly