The real cost of non-compliance
Is enforcement of the National Road Traffic Act (Act No 93 of 1996) and Regulations (as amended) (NRTA) by Provincial Road Traffic Authorities sufficient to protect SA road users given pressure on both local and cross-border carriers to cut costs and base their rates on non-compliance, thus compromising road safety in a highly competitive market?
Acts and Regulations:
Are they decreasing RoI?
Does the National Road Traffic Act (Act No 93 of 1966) and Regulations (as amended) hinder or assist SA road transport Operators to get a fair return on investment?
Useful or useless?
While Section 49 of the NRTA prescribes ‘draconian’ legislation under ‘Duties of an Operator’, there appears to be little or no evidence of this being taken seriously by Operators who are required to be registered and identified by name on the relevant Operator Cards displayed on their vehicles.
No formal qualification is required to hold this critical post in either public or private operator fleets, leaving this Section of the ACT totally ineffective, especially in the light of AARTO that has failed to materialise.
What's the most critical consideration?
Many argue that brand and specifications are the most critical aspects when motivating vehicle Capex. There are many who argue (especially accountants) that it’s the supplier who offers the best discount, while others simply remain with the brand they support due to personal relationships that build customer confidence – especially in the board room. However, most OEMs have turned their marketing strategy away from selling to long-term rental with full maintenance contracts. What is your take on this crucial development in HCV operation?