Conference Highlights Opportunities for the Air Cargo Industry on the Continent
The air cargo industry has a key role to play in helping drive economic growth in Africa. There are also tremendous opportunities that it can leverage, through the Africa Continental Free Trade Area (AfCFTA). These opportunities were explored at the Chartered Institute of Logistics and Transport’s Air Cargo Conference, held at the Air Cargo Africa expo and conference at Emperors Palace, Gauteng, on 23 February 2023.
The Programme included:
- Increasing connectivity and the movement of air cargo across the region by Dr Joachim Vermooten – Owner: Vermooten and Associates
- What is needed for AfCFA to work and what is the impact of AfCFTA on the supply chain? by Devlyn Naidoo – Executive: SARS and Other Government Agencies (OGAs): the SA Association of Freight Forwarders
- Potential and possibilities on the Continent: Airlink Cargo’s perspective by Hardus Kuschke – Executive Manager, Cargo: Airlink Cargo
- Data Driven Decisions Enabled by Digital Transformation by Munya Husvu, CEO: ISB Optimus
- The role technology will be playing within the African cargo space in the next decade vs. the African unemployment challenge by Gerhard van Zyl – AsimoTech
- Video telematics and the use of Artificial Intelligence by Divan Delport – Sales Director – MiX Telematics East Africa
- Trade opportunities in Africa for South African business by Thina Nodada – Director: Waymaker Trade Solutions
- Changes to Dangerous Goods Regulations for Air Cargo by Elliot Molemi – General Manager, Compliance: Professional Aviation Services
Key takeaways from the event
Increasing connectivity and the movement of air cargo across the region by Dr Joachim Vermooten – Owner: Vermooten and Associates
“AfCTA creates a new basis on which African air transport liberalisation can be based, with the objective of creating an internal integrated air transport market, instead of a small step “piecemeal” approach based on arrangements between individual States.”
“The African Continental Free Trade Area (AfCTA) provides a new opportunity to re-start African air transport liberalisation with the objective to actually achieve a truly internal single African air transport market. This is in contrast to the current Single African Air Transport Market (SAATM), which only seeks to implement the Yamoussoukro Declaration of 1988 (35 years ago) still based on Bi-lateral Air Service Agreements (BASAs) between States, of which the implementation is inadequate.”
Potential and possibilities on the Continent: Airlink Cargo’s perspective by Hardus Kuschke – Executive Manager, Cargo: Airlink Cargo
“There is endless potential for growth in Africa – due to the increase in demand. Aviation traffic is predicted to more than double by 2037. The boom in the movement of cargo will accelerate development. Cargo yields are declining at the moment, but are still higher than pre-Covid levels.”
“There is endless potential for growth in Africa:
- There are freighter operations to main hubs, but there is a need for connectivity to smaller hubs.
- E-commerce is underdeveloped.
- Africa’s annual economic growth remains strong.
- The need for bonded transport continues to grow.”
“There are however some limitations:
- Frustrations: Support functions from an airline’s perspective, like reliable port and rail infrastructure for jet fuel.
- Challenges: Inconsistent authorities, border control processes, corruption and competitiveness. Some IT systems are incapable of integration.
- Security: Security standards are poor in some countries.”
What is needed for AfCFA to work and what is the impact of AfCFTA on the supply chain? by Devlyn Naidoo – Executive: SARS and Other Government Agencies (OGAs): the SA Association of Freight Forwarders
“What is required for AfCFTA to work and how do we make it work?
- Overcoming supply-side constraints to boost African trade.
- Closing the infrastructure deficit to boost AfCFTA’s development impact.
- Eliminating non-tariff barriers to increase cross-border trade.
- Establish inter-governmental international trade department support.”
“Equally important to the elimination of tariff barriers (Free Trade Area) is the elimination of non-tariff barriers and the creation of an intact continental logistics network to support the growth of intra-Africa trade.”
“Supply chains are dependent on an efficient logistics network. This includes, inter alia, efficient port infrastructure, road and rail networks, a secure and safe trading environment and efficient customs and other government agency compliance processes and procedures.”
“Skills development and capacity building for a young supply chain are key.”
Data Driven Decisions Enabled by Digital Transformation by Munya Husvu, CEO: ISB Optimus
“We see a world where every employee will work side by side with digital workers. When human and digital workers work side by side, amazing things happen! It creates a world of endless possibilities!”
“To be a digital enterprise, you need digitized processes – and a digital workforce that complements your human workforce. ‘Complement’ is an important word, because despite concerns about AI, automation, and Robotic Process Automation (RPA) eliminating jobs, we believe very strongly that digital workers should complement the strengths of people.”
“Digital workers transcend RPA: Their core attributes are bots that are intelligent, using AI to learn and improve over time; they use analytics to ensure that their work is effective; and finally, they are capable of discovering processes that can benefit from their help.
People’s core attributes feature creativity, connecting dots, building strong relationships, and having empathy and compassion for others. For people, this manifests in driving strong customer engagement, identifying opportunities, whether that be a new sales opportunity or business model. We also strive at problem solving -arguably one of our best skills.”
The role technology will be playing within the African cargo space in the next decade vs. the African unemployment challenge by Gerhard van Zyl – AsimoTech
“On the one hand, we face the African unemployment challenge. The unemployment rate in Africa (estimated) 2022 was estimated at 8%, which means 41,9 million are without work.
On the other hand, we perceive the opportunities available through technology-led productivity. Since we compete with the rest of the world, we need to keep abreast of global developments in areas such as autonomous vehicles (drones), Artificial Intelligence, augmented reality, object and image recognition and other breakthroughs.
Thus, our logistics industry needs to maintain a balance between people skills and automation in the workplace. This calls for a commitment to a spectrum of skills development that fuses traditional methods with innovation and even quantum-leaps.”
“By lowering standards education, we are not doing our youth any favours.”
Video telematics and the use of Artificial Intelligence by Divan Delport – Sales Director – MiX Telematics East Africa
“Artificial Intelligence (AI) in video telematics has transformed the way we manage and monitor vehicle fleets by improving safety, enhancing efficiency, reducing costs, and providing real-time insights. AI-powered systems can monitor driver behaviour, optimise routes, reduce idle time, and improve productivity. This technology provides real-time insights into driver behaviour and vehicle performance, enabling fleet managers to respond quickly to issues as they arise. As the technology advances, we can expect even more benefits and applications in the future.”
Trade opportunities in Africa for South African business by Thina Nodada – Director: Waymaker Trade Solutions
“South Africa could position itself as a brains-trust country for skills development across the rest of the continent as momentum picks up for the realisation of trade under the AfCFTA.”
“What we’ve seen is that there is a strong emphasis on skills and knowledge development from African countries to partner with South Africa in achieving these aims. “If South Africa got its act together, a lot of goodwill could be invested through the transference of goods, services, skills and knowledge needed to achieve AfCFTA’s aim of boosting trade across the Continent by at least 52.3%. It would take a bit of a mind-shift though, as South Africa still sees itself in different terms in relation to the rest of the Continent.”
“We must stop thinking of ourselves as the gateway to the Continent. We aren’t the gateway to Africa, never have been, and never will be. What we can be is an enabler of trade improvement.”
Changes to Dangerous Goods Regulations for Air Cargo by Elliot Molemi – General Manager, Compliance: Professional Aviation Services
“The new dangerous goods regulations have undergone a rigorous Carcom (Civil Aviation Regulations Committee) process and are awaiting the Transport’s Minister signature. The express parcel industry has over the years seen the introduction of drop-off facilities, enabling customers to drop off parcels, with little inconvenience. Examples of these facilities include Aramex’s Drop Box, Courier Guy’s PUDO and DSV’s Locker, which are stationed at shopping complexes and filling stations.
These products of convenience have come with their own problems. Customers are likely to include hazardous items like lithium batteries, corrosives and flammable liquids – out of ignorance. The SACAA has come up with a set of regulations that seeks to minimise such incidents. The regulations when summarised will require a company offering the parcel drop-off facilities to educate their users on the dangerous goods. This will be done by:
- Requiring that the user declares if their package contains dangerous goods or not.
- Providing information about dangerous goods to the user through the website or other electronic forms.
- Displaying dangerous goods prohibition messages and other signages at drop off facilities.
These regulations extend to other courier products at shopping malls like Postnet and Pepkor’s Paxi – if their parcels end up in an aircraft.”
The CILTSA Air Cargo Conference was sponsored by Air Cargo Africa, AsimoTech, ISB Optimus, Messe Munchen, MiX Telematics and Professional Risk.
The Chartered Institute of Logistics and Transport supports the professionals who plan the systems, who bring in the raw materials, who manage the movement of people and goods, who ensure safety standards, maintain mobility, and keep the economy working.
We are the leading professional body for everyone who works in supply chain, logistics and transport. We are a global family, representing professionals at all levels across all sectors, with a mission to give individuals and organisations access to the tools, the knowledge and the connections vital to success in the logistics and transport industry.
Founded in 1919 with a mission to improve industry practices and nurture talent, our Institute supports over 35,000 members in 35 countries. Through our educational suite, our strong community and our commitment to high standards, we help professionals at all levels to develop their careers and access better jobs. Visit www.ciltsa.org.za and https://ciltinternational.org/ for more information
Contact Persons: Catherine Larkin – CVLC Communication
Telephone: 087 822 2858 / 083 300 0331
E-mail: [email protected]
Postal Address: P O Box 44945, Linden, 2104, South Africa
Work hard and play harder at Mega-T 2023
It’s back! It’s bigger and it’s even better! Mega-T, the new outdoor trucking, trailer, and transport expo, will be hosted for the second time on 5, 6 and 7 October 2023 at the Diamantvallei Landgoed showgrounds, 20km east of Pretoria. After a successful first edition in 2022, this event, powered by The Road Freight Association (RFA), is firmly positioned as a powerful Business to Business Expo.
Mega-T Expo is the perfect combination of business and pleasure,” explains HP Steyn, the event organiser.
Mega-T Expo is the perfect combination of business and pleasure,” explains HP Steyn, the event organiser.
“It serves as a hub for the trucking industry to network, showcase cutting-edge technology, connect with suppliers, and exchange business ideas. Established businesses can exhibit their products and services, reaching their target market.”
“The show covers a wide range of categories including trucks and trailers, tracking and security, parts and maintenance, financing and insurance, navigation and fleet management, and refueling systems.”
Gavin Kelly, CEO of The Road Freight Association (RFA), adds that the feedback received from participants in the 2022 show was overwhelmingly positive. “Some exhibitors signed deals during the two-day event, whilst others networked tirelessly and started building/growing relationships with potential customers and learning about the latest innovations in trailers, trucking and transport,” he says.
“We had quality visitors and quality time for many businesses seeking new contacts or reviving old ones.” As a result of feedback received, the show has been extended by one day to include a Saturday, enabling families to come and experience the thrills and spills of Mega-T!
“All in all, most people I personally interacted with said that they had benefitted from being at Mega-T.
There were a number of exhibitors who wish to increase the size and style of their stands for the Expo this year or move into the upper sections of the Expo closer to the entertainment area and market the Expo amongst their circle of businesses and friends”.
Several prominent brands in the industry have already secured their space for the 2023 event. This includes petroleum wholesaler Mammut Petroleum, Indian multinational tyre company Apollo Tyres and German braking systems manufacturer Knorr-Bremse AG.
Career planning: an exciting addition to the show line-up
Building upon the achievements of the previous edition, Mega-T 2023 will introduce an exciting new focus on career planning. Recognising the importance of nurturing future talent and promoting the transport industry as a viable career path, the expo will incorporate educational elements to enlighten students about the vast career opportunities available in this dynamic field. By inspiring and educating young minds, Mega-T aims to contribute to the growth and development of the industry while fostering a pipeline of skilled professionals.
Benefits of B-2-B Expos
The lengthy hiatus of expos due to the Covid-19 lockdown has served to emphasise the importance of trade exhibitions. The Mega-T Expo provides a targeted platform for industry-related companies to increase brand success through engagement and meaningful interactions. Face-to-face interactions with prospects and professionals are far more successful than other methods such as phone calls or emails.
What makes Mega-T different is its combination of business and pleasure: It is a fun-filled experience for the whole family – with activities for both kids and adults, a beer garden, tyre-flipping, and the Big Rig. Combined with great food and fantastic music, this makes Mega-T a “must attend”!
Win with Mega-T
A set of passenger vehicle tyres is up for grabs, courtesy of Apollo Tyres. To stand a chance of winning these, participants will be required to share a link that promotes the event. The winner will be announced on the Saturday of Mega-T.
With a strong track record, notable sponsors, and a fresh focus on career planning, Mega-T 2023 is shaping up to be an extraordinary event that combines networking, innovation, business opportunities, and educational initiatives.
For more information on the show, visit Mega-T
JC Auditors offering free online safety performance assessment for transport operators
In a commendable move to promote road safety, leading certification body JC Auditors has announced that it will provide transport operators with free access to an online safety performance assessment tool. This initiative aims to assist fleet operators, especially smaller fleets, which often lack the resources to evaluate their overall safety performance. This online assessment would also enable an operator to identify its performance in relation to the Road Transport Management System (RTMS) National Standard.
The RTMS is a comprehensive framework designed to improve safety, efficiency, and compliance within the transport industry. It consists of several key pillars, including load management, driver wellness, vehicle maintenance, journey management, and driving behaviour.
By making this online safety performance assessment tool accessible, JC Auditors aims to enable transport operators identify and mitigate risks, which will not only help the individual business but also contribute improving South Africa’s road safety record. The assessment tool comprises a series of carefully crafted questions focusing on the key pillars of RTMS. Operators can complete the online evaluation, the results of which will be available in a report detailing key risks and recommended improvement actions.
This valuable feedback empowers operators to identify potential risks and take pro-active measures to enhance safety standards within their operations.
Oliver Naidoo, Managing Director of JC Auditors, highlights the importance of this initiative, saying: “It is vitally important that transport operators – regardless of their fleet size – have access to resources that can help them enhance their safety performance. By providing this online assessment tool for free, we aim to support South African fleets in adopting RTMS and holistically improving road safety and operational performance.”
JC Auditors, who have been actively advocating for safe transport operations in the country, took the lead in discussing safe and sustainable road transport during the May Transport Forum they hosted.
Naidoo highlights four crucial outcomes from the event, shedding light on pressing industry issues. “First and foremost,” he asserts, “we need to build capacity in SMEs to embrace safety systems as an integral part of business.” The old adage that the strongest chain is only as strong as the weakest link rings true.
Serious truck accidents often cause closure of national roads for hours on end – impacting other transporters (many of whom are professional, safety focused entities), as well as public road users. Such accidents have a negative social impact (fatalities and injuries) and also severely affects the overall cost of transport, contributing to inefficient supply chains which ultimately affects the economy. So, it is in the national interest that we should aim to gradually increase the number of safety-conscious, professional transporter on our roads.
Additionally, Naidoo emphasises the growing need to promote initiatives aimed at changing driving culture within the industry. Furthermore, it was observed that the transport sector often does not fully optimise telematics capabilities, despite its ability to identify high-risk behaviour- a matter that requires urgent attention. Lastly, he notes the importance of fostering increased stakeholder collaboration in collective efforts to improve fleet safety performance, which emerged as the fourth key takeaway.
Speaking at the online event, Dr Paul Nordengen, RTMS National Steering Committee chairperson, highlighted the significant advantages witnessed in the heavy vehicle transport sector through the adoption of the RTMS in South Africa. Dr Nordengen also reported on the significant productivity and safety gains observed in the Performance Based Standards (PBS) pilot project.
Dr Nordengen stated: “Companies that have implemented PBS are experiencing a wide range of benefits – including improved road safety, reduced environmental impact, and cost savings.”
Annah Ngxeketo, the founder of SMME operator Mamoja Trading & Projects, shared her company’s transformative journey in transporting mining products during the event. She noted that, since achieving RTMS compliance, Mamoja has witnessed tangible advantages in their business operations. Challenges such as prolonged downtime, missed vehicle servicing, and driver incidents, have been effectively addressed through RTMS implementation. The company has implemented a comprehensive maintenance schedule plan that undergoes continuous monitoring. Additionally, they conduct route risk assessments, enforce a speeding policy, and ensure drivers are managed in a professional and progressive manner.
“The adoption and implementation of RTMS as well as other international standards play a pivotal role in enhancing road safety in South Africa and ensuring the efficient transportation of cargo throughout the country,” concludes Naidoo.
Statement from The Road Freight Association
The future of the Administrative Adjudication of Road Traffic Offences (AARTO) – from a Constitutional point of view – awaits the consideration and judgement from the Constitutional Court, where the matter was heard in November 2022. The Court reserved judgement, and there are indications that the judgement should be handed down before the end of May 2023.
Whilst this is awaited, the Road Traffic Infringement Authority (RTIA) has been at pains to make it clear that it will continue with the preparatory tasks required for a national roll-out – looking at full implementation across the country within three years of the initial roll-out phases.
The Road Freight Association (RFA) has interacted with both the Department of Transport (DoT) and the Road Traffic Infringement Agency (RTIA) since the first publication of the draft AARTO Act and the resulting regulations, dating back to 1997. We have placed on record that, despite well- substantiated motivation for serious adjustment to both the manner of implementation of a demerit system, as well as the ability for law-abiding citizens to access and manage their proposed demerit points, the Department has not amended the regulations in any way to ensure that the compliance costs do not become a serious burden on law-abiding citizens – whether fleet operators or individuals.
In addition: the RFA has noted that the issuing of points to vehicles is unfounded; will have a serious impact on the vehicle supply sector (both new and used); the sustainability of fleets and individuals with regard to personal transport needs (there is no reliable, efficient, safe and affordable public transport system available in the country); and, not have the effective and sustainable behavioural change required to improve road traffic legislative compliance.
The article is factually incorrect: the source of the article is unknown to the RFA and this may be bad reporting, incorrect interpretation or – indeed – incorrect statement of the facts.
Drivers will commence with ZERO points (not 15 as stated in the article) and will “earn” demerit points as and when applicable through the AARTO process, where demerit points are allocated. Currently the threshold is a maximum of 12 points (the proposed amendment recommends 15 points) whereupon – from point 13 – the various sanctions of suspension or cancellation of a driving license will occur, as defined in the AARTO legislation.
There are numerous challenges: the scourge of corruption and poor traffic policing have not been addressed nor resolved, neither has the process to ensure that manipulation of the system through targeting of certain fleet operators (or individuals) can be prevented.
In addition, the proposed Tribunal System has a number of flaws that leave prospective procedural queries hanging, and the whole rehabilitation programme has more queries than answers, there are numerous charges relating to taxis that carry no demerit points and the addition of extra levies to cover administration processes point to revenue generation.
The process of addressing the comments received from the last round of public comment has not been completed – a final proposal relating to the proposed regulations was not completed before the current impasse was created through the legal process (which now awaits the decision from the Constitutional Court).
The RFA trusts that, once the Constitutional Court has handed down its judgement (either way), that the Department of Transport and the RTIA will carefully consider and apply the comments from all parties that submitted comment and take special note of the comments from the Association which cover the impact this legislation will have on fleet operators.
In its last iteration/form, the RFA is of the opinion that AARTO will not be implementable without the comments and proposals it tabled in 2019.
The Association is aware that the RTIA has taken many of these into consideration, and that another draft of the proposed regulations is ready for public circulation – pending the judgement from the Constitutional Court.
It is crucial that a sustainable, fair, reliable and manageable system is introduced to change and improve road user behaviour, and that this does not become a huge financial millstone around the necks of compliant fleets (or individuals).
By Gavin Kelly – CEO: The Road Freight Association.
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