Transport Operators (Professional Carrier)

What will this mean     to your business?

Topic 1 Road Speed Governors - a financial catastrophe for heavy hauliers?

Gazette No 38142 dated 31 October 2014,

Amendment to regulation 215 of the Regulations came into force on 1 December 2016.

Regulation 215 of the Regulations is hereby amended by the substitution of sub-regulation (1A) of the following sub-regulation:

(1A) No person shall operate a -

       (a) minibus;

       (b) midibus;

       (c) bus; or

       (d) goods vehicle the gross mass of which exceeds 3 500 kilograms,

first registered after 1 December 2016, unless such minibus, midibus, bus or goods vehicle is fitted with a speed governor, restricting the speed of such motor vehicle to the speed limits as contemplated in regulation 293.

The implications of these amendments have created a far reaching financial catastrophe for SA Carriers!

Topic 2 Leveraging what others miss

Smart thinkers see all the moving parts, while the rest focus on just a few. They understand that competitive advantage comes from leveraging what others miss. Most operators would agree that the only reason for operating a vehicle is to get maximum return on capital invested in a vehicle. That return relies on managing both costs and revenue.

Many operators place a disproportionate focus on only one of those factors and use Operating Cost Estimates (OCE’s) as a guide to operating costs. Smart operators know that by managing both, cost and revenue, they double their ability to respond to competitive market forces.

Working with all

three Ps

Transport Management  Budgeting

Topic 3 Professional approach to Transport  Management Budgeting (Part-1)

Budgeting was chosen as Topic 3 in this Professional Carriers Conversations section.

As “demand-driven” service providers, road transport operators (RTOs) are particularly vulnerable in stalled-growth SA economy; as demand falls and rates begin to tumble. Apart from these challenges, the industry is heavily dependent upon imported equipment and consumables in the areas of vehicles, parts, tyres and fuel.

Reference to the change in the ZAR/USD exchange rate chart is evidence of the extremely severe situation driving the dilemma Carriers face – it could quickly worsen to the point of financial disaster for this capital-intensive industry, especially sparsely funded privately-owned Emerging Operators.

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Johannesburg, South Africa