Serco chief executive officer , Clinton Holcroft said it was clear this sector was hit hard by the unrest and that it was imperative to restore supply chains as quickly as possible . He estimated that more than 100 trucks had been destroyed and even more had been damaged during the rampage in the greater Durban area and parts of Gauteng , which also saw warehouses and cold storage facilities torched by arsonists .

Serco , that is one of South Africa ’ s leading trailer and truck body builders with branches in Durban , Johannesburg , Cape Town and Port Elizabeth , holds a major portion of their builds directly linked to perishable food distributors , although recently they have included focus on growing the range of dry freight options they offer , to better serve the transport market arising from the current ‘ new normal ’ market conditions caused by the Covid-19 pandemic .

" We have stepped up our production and repairs in the short term to accommodate the demand , but there is a variety of limiting factors involved – availability of truck chassis , as well as a four-to-seven-week manufacturing lead time from confirmed order ,'' said Holcroft .

Rental vehicles can be hired in while critical transport equipment is replaced , but this comes at a cost which will ultimately impact transporters and the consumer . The replacement costs for new equipment are a significant cost to bare if not fully covered by SASRIA , with a truck and refrigerated semi-trailer costing around R3.2-million and a smaller truck and refrigerated body costing around R1.4-million .

The current situation is further exacerbated by uncertainty as to how long SASRIA will take to settle claims , resulting in some retailers not being able to reopen or replace vehicles until confirmation is received .

Holcroft added that the economy had already been under severe strain prior to the violence , with the third wave of the Covid-19 pandemic taking its toll on business and industry . Delays in sourcing truck chassis earlier this year due to global

shortages of semi-conductor chips and certain electronic components had severely hampered any resurgence of growth in the truck body and trailer building sector as well as the motor industry generally .

“ Exorbitant increases in shipping costs and steel prices which have gone up as much as 65 % since this time last year have only served to dampen an already battered manufacturing sector . There is a lot of turbulence in the market at the moment but with the Covid vaccine roll out gaining traction , it is anticipated that business will improve as global economies start reopening , and locally businesses start rebuilding as the SASRIA funds make their way to the businesses impacted by the recent unrest . Looking on the bright side , Serco has recently broadened its product range and introduced drop side bodies , single skin van bodies and curtain-sider truck bodies . Sales in that area continue to grow and to some extent will plug the gap left by the drop in orders for refrigerated vehicles . With the shortage of trucks and imported components starting to improve , we hope the second half of the year progresses on a more positive note ,” said Holcroft . CLA

Serco

Serco , CEO Clinton Holcroft notes that the local economy was already under pressure prior to the ongoing pandemic effects , recent unrest and looting .