LOGISTICS MARKET REVIEW: In the past few months transport, freight and logistics have suffered due to many failures which included port backlogs, ageing road and rail infrastructure, load shedding and many of the same ills that are currently faced by all sectors in South Africa. But there has been a silver lining, starting with the fact that, compared to 2022, the Ctrack Transport and Freight Index is tracking 2.8% above year-ago levels.
Following four consecutive monthly contractions in 2023, the final Ctrack Transport and Freight Index for the year defied expectations to record growth during October. At an index level of 120.7, the Ctrack Transport and Freight Index is tracking 2.8% above year-ago levels.
While the improvement at the start of the fourth quarter is encouraging, a note of caution is appropriate as the strain that has been evident across multiple sub-sectors in recent months has not disappeared and, in some instances, is expected to escalate.
However, the growth in the overall index during October showcased the interdependence and intertwined nature of the logistics sector, where the underperformance in one sub-sector typically leads to growth in another.
Fragmented growth among the Ctrack Transport and Freight Index sub-sectors remains an ongoing theme of late. Four of the six sub-sectors increased compared to a year earlier, while every month, only Sea Freight contracted.
“A brief look at the overall Ctrack Transport and Freight Index could give a false sense of improvement, as a detailed analysis reveals that underlying stresses in certain sectors are masked by improved performances of others,” says Hein Jordt, Chief Executive Officer of Ctrack.
The recent implosion of Transnet’s port operations is a case in point. Given the underperformance of South African ports, notably Durban, but others as well, the whole logistics supply chain in South Africa has once again been severely disrupted. The Sea Freight sub-component tumbled in October, declining by 5.2% compared to September, reflecting the inability of ports to handle cargo due to a multiplicity of contributing factors.
NEW HEADQUARTERS: Last month, on 15 November, the official groundbreaking ceremony of SANY SA’s new headquarters took place. The development, an R300-million mega-construction project, has been in development for three years and will result in a campus that will house SANY SA employees as well as facilities to carry out three primary functions – manufacturing, logistics and training.
Considered to be SANY’s central southern Africa hub, the cuttingedge premises will consist of a 12 500 m2 floor area that includes a 9 500 m2 assembly plant and a 2 300 m2 administration building. It will also feature a 525 m2 staff canteen and a fully equipped gymnasium.
The assembly plant makes SANY the first overseas yellow metal original equipment manufacturer (OEM) to invest in local production. “This project is a win-win for SANY and South Africa,” says General Manager Samual Zhang.
“SANY will be able to provide shorter turnaround times to its clients, and improved value for money, resulting in more cost-competitive pricing due to local content.”
Additionally, the South African economy will benefit from the numerous employment opportunities that will be available for the construction phase and upon project completion.
“We will hire and train people from surrounding areas,” Zhang adds. “Part of our expansion drive involves making a positive impact on local communities.”
REMANUFACTURED PARTS: In 2023 Bell Equipment, Hitachi Construction Machinery, John Deere Construction and Forestry division and Volvo Construction Equipment aimed to align their parts and services with sustainable innovations and customer-centric Solutions.
In a terrain marked by technological advancements and environmental considerations, several key players in the construction machinery sector are leading transformative initiatives to enhance sustainability, cost-effectiveness, and overall customer satisfaction.
Hitachi’s remanufacturing drive Hitachi Construction Machinery has embarked on an ambitious journey to contribute to a circular society by initiating the production of remanufactured parts for construction machinery in South Africa.
Recognising the environmental impact of conventional manufacturing processes and the significance of sustainable practices, Hitachi Construction Machinery is extending its successful parts remanufacturing business from mining machinery to construction machinery in February this year. This expansion signifies a commitment to meeting not only the specific needs of the construction industry but also contributing to the broader goal of environmental sustainability.
Remanufacturing involves the meticulous process of collecting genuine components, such as hydraulic cylinders and pumps, from machinery in use by customers. These components are then disassembled and repaired at specialised works, providing remanufactured parts with performance equivalent to new ones.
The benefits extend beyond environmental concerns. Hitachi Construction Machinery emphasises that customers in South Africa can now purchase remanufactured parts with a warranty, reducing component procurement costs.
Furthermore, the supply of these remanufactured parts within South Africa shortens the lead time to delivery and minimises transportation costs. As part of its future strategy, the company aims to extend the availability of remanufactured parts to neighbouring countries, offering sustainable solutions to a wider market.
MARKET OUTLOOK: Strong growth and increased competition are to fuel forklift industry innovation and development, with the market expanding by 50% between 2022-32.
This is according to the fourth edition of the Interact Analysis market report on the global forklift industry.
Strong growth in shipments of 4-5% is forecast for the global forklift market out to 2032, with greater competition driven by emerging technologies and rising global demand for logistics. Poor demand in China led to a contraction of 12.4% in shipments during 2022, with the Americas and EMEA regions also witnessing a decline, leading Interact Analysis to reduce its forecast for 2023/24. Order volume is expected to fall by around 6% in 2023 to 2 million units, marking the first time since 2019 it has dipped below the shipment volume.
Covid-19 pandemic-related supply chain issues caused a significant difference between order and shipment volumes, leading to a historical peak of 370,000 units in 2021, as shipments lagged far behind orders.
The sector has been catching up ever since, but with a sharp fall in order volumes, Interact Analysis predicts 2024 will be a low point for the market.
However, there are clear signs of a recovery. This is particularly evident in the performance of major forklift manufacturers, with an increase in the growth momentum of the new truck business among these companies in 2023, following relatively slow growth over the past two years.
In its latest report, The Global Forklift Market – 2023, Interact Analysis reveals new business revenue for major forklift companies grew by 21% year-on-year during the first three-quarters of 2023.
TROMMEL TECHNOLOGY: Due to its rotating barrel design, the minerals-bearing materials can be manipulated to process easier and in the case of coal and diamonds the action of the trommel can actually be used to liberate the minerals and reduce the need for further processing.
The action also suits sticky materials and those prone to clogging gravity-fed inclines and other types of screens. Why haven’t mobile trommels been used in the mining industry in southern Africa before?
The answer is that the machines have simply not been available to date and the arrival of MDS Heavy duty HeatTrack Trommels on African shores now brings parity to the market.
They will allow African mines to process minerals in the same efficient manner as their American, Asian and European counterparts in certain applications. Terex-owned MDS recently concluded an exclusive distribution agreement with the country’s largest multi-franchise distributor, ELB Equipment, where it will be sold among the likes of its Powerscreen, Terex Minerals Processing and other mining OEM suppliers.
HIGHWAY HEROES: For Phineas Muhlanga from Reef Tankers and Gobatlamang Gabonewe from Megabus Kuruman, 24 November was not just any day.
Sure, they might have been at Emperors Palace, not a usual spot when they are on the clock – but it was the fact that they were announced as the best truck driver and bus driver in South Africa on the day of the event that cemented the day as no ordinary one.
Hollard Highway Heroes aims to raise awareness about the vital role of truck and bus drivers in transporting goods and commuters while promoting driving excellence and safer roads. “Phineas and Gobatlamang, among a group of dedicated truckers and bus drivers, navigate the highways daily to deliver goods and services, competing for the prestigious title of Highway Hero,” said Olivia Kumalo, the Key Accounts Manager at Hollard Trucking Risk Services.
She emphasises that both winners demonstrated exceptional dedication to safe driving practices, ensuring timely deliveries while prioritising the safety of fellow road users.
This year, the Hollard Highway Heroes competition expanded its reach to include both bus and lorry drivers for the first time.
“We also welcomed all fleet owners across the country, regardless of their insurance affiliation with Hollard. We take pride in making this competition more inclusive and having the opportunity to honour our heroes,” says Kumalo.
Using telematics, participants are evaluated based on various criteria, including adherence to speed limits, avoidance of daytime fatigue driving, responsible night-time driving, and overall distance covered daily.
With an estimated 80% of South Africans actively using the roads as drivers, passengers, or pedestrians, this competition plays a crucial role in improving the driving habits of truck and bus drivers, ultimately making the roads safer for all, and reducing risks for fleet owners. The overarching goal is to minimise accidents and ensure safer journeys for everyone.
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