New operators offer unsustainable rates
CLIVE EMDON
RATE-CUTTING and the critical shortage
of qualified and experienced drivers in the
industry are issues that need to be resolved,
says Gordon Jay, MD of Transworld Road
Freight.
According to Jay new operators are entering
the field at an alarming rate and offering rates
that are not sustainable in the long-term.
“We know the cost structures and have a
good sense of what is possible when dealing
with road levies, staffing, and maintenance. A
lot of the rates they are offering are below the
normal level of running costs.”
In addition there is general concern in
the industry at the shortage of experienced,
qualified drivers, many of whom are being lost
to Aids.
Newly qualified drivers attract higher
insurance excesses while there are additional
risks involved in using inexperienced drivers,
especially for cross-border work, as they have
little idea of how to deal with officials in a
foreign country, says Jay.
Transworld Road Freight specialises in the
Namibia route. The company moves 80-90
tons of general cargo from Johannesburg to
Windhoek each week and 40-50 tons from the
company’s Cape Town depot, says Jay “We also
handle a lot of bonded cargo.”
Referring to the problems attached to
incidental costs such as unnecessary fines
incurred in routine customs checks, Jay says on
the Namibian route the Skilpadshek customs
on the South African side “are a law unto
themselves”. He gave the example of a R1 500
fine for a truck’s registration being wrongly
entered in documentation. His January letter
to the Customs department has yet to be
acknowledged.
At the Botswana Pioneers’ Gate one of his
drivers was instructed to move his load more
towards the rear axle. He did so and when
he reached the Mamuno border post he was
fined 5 600 Pula (R7280) for being overloaded
on the back axle. When Jay suggested going
to court over the issue, he was told the truck
would be impounded until then. “They would
hold the truck as ransom which is a totally
unacceptable practice.”
‘Unnecessary’ fines add to hauliers’ headaches
10 Apr 2007 - by Staff reporter
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