‘Risk mitigation starts with better infrastructure’

Infrastructure – or the

lack thereof – poses

some of the biggest

risks to road transport

in southern Africa,

according to Gerhard

van Zyl, operations

director at Professional

Aviation Security and Risk

Management.

“If one considers that

the transport sector

has been highlighted

as a key contributor

to South Africa’s

competitiveness in Africa

and around the world,

then one understands

the significance

and importance of

infrastructure,” he

told FTW. “The lack of

infrastructure as well as

the lack of maintenance of

infrastructure increases

costs in the logistics sector.

And the cost of logistics

will continue to escalate as

we are not solving the root

cause of the problems that

we face.”

Improving roads,

railways and ports not only

in South Africa but across

the region is essential if

intra-regional trade has

any potential of achieving

real growth.

According to Van Zyl,

a big concern is that

road infrastructure is

continuing to deteriorate

while volumes continue to

increase.

“Millions of rands are

being invested in the port

network, but the majority

of roads have massive

maintenance backlogs.

It’s a major risk to the

transporter who has to

move the bulk of cargo via

this mode.”

Van Zyl said another

major business risk was the

dearth of skilled labour.

“Companies are spending

thousands of rands on

training their own pool

of drivers – but this has

its own complications as

these drivers are often

headhunted out of the

business that has trained

them,” he said. “It would

be a major advantage to

our industry if we had

an advanced truck driver

training school delivering

a skills pool from which

transporters could draw

their drivers. That would

already make a major

difference.”

Crime is another major

challenge for the industry.

“Syndicates are becoming

more militant and actively

targeting high-value cargo

which seldom moves

without armed escorts.

This again increases

logistics costs.”

According to Van Zyl it is

essential that solutions be

found to these challenges

if South Africa and the

region want to compete on

a global scale.

“The management of

risk is a growing expense

that cannot just escalate.

The risks have not changed

and neither have the

conversations about the

risk, but the incidents

are getting worse as are

the costs involved. As

a country and region

we cannot afford

to become

uncompetitive.”

Van Zyl

said bringing

in experts

could

improve risk

management

within

companies

significantly.

“Instead of trying to

do it all in-house it is far

better to partner with

people and create a supply

chain that is the best of

what each stakeholder

provides,” said Van Zyl.

“Working in isolation

cannot address the many

risks the freight and

logistics sector faces, but

having experts introducing

the latest and newest

technology, bringing the

elements across the supply

chain together, one stands

a better chance of finding

long-term solutions.”

INSERT

"It would be a major

advantage to our industry

if we had an advanced

truck driver training school

delivering a skill pool."

– Gerhard van Zyl