Road hauliers reel as costs escalate

2012 was a particularly difficult year for the road freight industry, not just from a cost perspective but also in terms of legislation, says Gavin Kelly, spokesman for the Road Freight Association. And now, more than ever, long-term solutions have to be found to ensure sustainability as costs continue to escalate in the form of tolls, fuel and taxes. “We continue to meet with various government departments to discuss legislation that affects our industry but also to lobby against many regulations that are implemented merely as increased revenue mechanisms.” This is a task performed not just in South Africa but also across the region where non-tariff barriers to trade are encountered every day. “We have seen an escalation in costs in terms of fees and taxes across the borders as our operators are stopped and requested to pay for certifications and inspections. In fact the fees have increased between 100% and 450% in some cases.” The RFA remains embroiled in legal battles with the Cross Border Road Transport Agency over the increase in their permit fees by over 1000% in some cases. With a carbon tax set to be introduced in the near future and the price of fuel continuing to escalate, the introduction of tolls in Gauteng comes at a particularly bad time for the industry. “The extensive lobbying by the RFA against the exorbitant costs resulted in a significant reduction in the toll fees for the freight industry. We have also lobbied for a further reduction in the proposed discount structure and an additional discount for RFA members,” he said. In terms of 2013, Kelly said ongoing discussions with the National Treasury over the introduction of a carbon tax as well as talks with the Department of Transport around the implementation of Aarto remained high on the agenda. CAPTION Still trucking ... but cost escalations are squeezing the industry.