by Frank Beeton
M
oving
atters
Frank Beeton scans the transport world for news pertinent to the Logistics Sector.
•
New Dynamics enter
the Truck Market
•
moving matters
In the February issue, we commented on the
performance of the South African truck market during
calendar year 2013. At a final audited volume of
30 922 units, this market for all vehicles over 3,5 tons
Gross Vehicle Mass grew by 11,1% over the equivalent
2012 outcome. To many observers and even market
participants, this was a remarkably strong performance,
and somewhat contrary to the general business mood
in the country.
B
y comparison, the reported markets for passenger
cars and light commercials (under 3,5 tons GVM) only
grew by 1,8% and 5,7% respectively, which seemed
far more in keeping with the general economic climate, as
indicated by Gross Domestic Product growth of only 1,9% in
the comparison between 2013 and the preceding year.
In trying to understand the reasons behind this pleasing, but
somewhat out-of-step result, which materialised in spite of
substantial industrial action during the latter part of the year,
we have identified a number of factors that may have been
influential. These include:
•
The high incidence of sales reporting to the National
Association of Automobile Manufacturers of South Africa
(NAAMSA) in this market. Very few commercial vehicles in
the medium, heavy, extra-heavy and bus segments sold
in this market go unreported, unlike in the light vehicle
categories, where a number of participants do not report
their sales.
•
•
•
Increased South African trade across our northern border,
which relies heavily on road transport for getting goods to
final destinations in Africa.
Shortening of the fleet replacement cycle. This has been
brought about by the widespread availability of support
services from vehicle manufacturers that have made the
determination of running costs, in an otherwise risky
field of activity, highly predictable. These include full
maintenance leases, service contracts, guaranteed buybacks, and insurance packages, all of which take much
risk out of the business, as long as operators stick to the
rules. To fully exploit these facilities that usually run for
five years, operators have taken to turning their fleets
over within that period, and have thus secured extended
periods of low risk and highly predictable operation.
Solid demand for good used trucks to be exported into
Africa facilitates the trade in new vehicles “at home”, and
encourages operators to maintain their vehicles in good
condition.
We have become aware of a practice where local
construction companies procure fleets of new tippers
and truck mixers, use them for a relatively short time “at
home”, during which all warranty issues can be readily
resolved, and then send them off to work somewhere else
on the continent. This situation also effectively shortens
the replacement cycle.
Advances in vehicle technology have played their part in
reducing fuel consumption, extending service intervals,
and accommodating less skilled drivers. All of these
offer compelling arguments in favour of regular vehicle
replacement policies.
It is difficult to say how much each of these factors has
contributed to the strong 2013 market, but they have all played
their part. However, going forward, it will be equally difficult to
judge if and when they will cease to have a stimulatory effect.
Some may phase out over a number of years, but others may
remain in place indefinitely. Only time will tell!
A Tribute to Fritz
Hellberg
B
ack in 1971, when I was still a sprog lorry salesman,
I was tasked with preparing three Nissan Diesel
6TWC13 6x4 freight carriers, with drawbar trailers,
for delivery to a new Hultrans operation servicing Corobrik
| logistics in action
86
in Empangeni. My tasks included driving each of these
cumbersome brutes to the Durban municipal weighbridge
for mass determination. In due course, the combinations
were ready, and they were handed over to their custodian,
a young engineer of German descent, by the name of Fritz
Hellberg.
april 2014