CHALLENGES FACING THE ROAD FREIGHT TRANSPORT INDUSTRY

1. CHALLENGES FACING THE ROAD FREIGHT TRANSPORT INDUSTRY BARNEY CURTIS Executive Director FESARTA (Federation of East and Southern African Road Transport Associations) Road Freight Transport Workshop, Johannesburg. 27th-28th September 2011

2. OBJECTIVE OF THE PRESENTATION • To detail the main challenges faced by road transporters operating in the region (including East Africa) USAID Workshop, Johannesburg, 27th Sep 2011

3. CONTENTS • What is FESARTA • Challenges • Photos USAID Workshop, Johannesburg, 27th Sep 2011

4. WHAT IS FESARTA • A regional association, set up in 1993, according to Article 13.13 of the SADC Protocol on Transport Communications and Meteorology, to: • represent the road transport private sector at regional road transport forums • Work with the National Road Transport Associations (NRTAs) to remove non-tariff barriers along the road transport routes USAID Workshop, Johannesburg, 27th Sep 2011

5. WHAT IS FESARTA • A Section 21 company (association not for gain) registered in South Africa • Its membership is the 12 or so NRTAs in East and Southern Africa • It is the road transporter’s and other interested parties’ voice at regional COMESA, EAC and SADC forums USAID Workshop, Johannesburg, 27th Sep 2011

6. NON-TARIFF BARRIER SYSTEM • COMESA/EAC/SADC Tripartite system to eliminate non-tariff barriers to trade • Hosted in each of the three RECs, though SADC is the most active • Anyone can raise an NTB • REC will confirm, then take up with State • Don’t exactly correlate with problems USAID Workshop, Johannesburg, 27th Sep 2011

7. REGIONAL RECOMMENDATIONS • Recommendations agreed at REC level. Some are now annexes to the Protocol • Member States are required to implement the recommendations, but don’t always comply • The Protocol does not have “teeth”, like the EAC Acts, which are supra-national USAID Workshop, Johannesburg, 27th Sep 2011

8. INTER-STATE RECOGNITION • One Member State may not recognize the arrangement that another State may have with its transporters • Eg Tanzania customs requires transporters to license with it; not recognizing the home customs licence • A transporter’s own customs will know the transporter better USAID Workshop, Johannesburg, 27th Sep 2011

9. CHARGES, LEVIES, TAXES • Transporters are seen as “cash cows” • Charges are summarily introduced without consultation with those who are paying the charges • Charges are not transparent, eg CBRTA permits, GFIP toll system, entry fees into Zambia and Swaziland, DRC border charges USAID Workshop, Johannesburg, 27th Sep 2011

10. OVERLOADING CONTROL • Load limits not harmonized. Eg 9 to 10 tons single axle, 48 to 49 tons artic. • Weighbridge allowances on gvm/gcm. Eg SA 2%, Zim 0%, Malawi 5% • Weighbridge calibration not always done regularly and/or accurately • Weighing of empty trucks USAID Workshop, Johannesburg, 27th Sep 2011

11. INFRASTRUCTURE • Borders. Many were built decades ago and have not been upgraded • Bridges. There are ferries where there should be bridges egKazungula. The Tete bridge is limited to 48 tons gcm • Road design. Many need upgrading eg Dar to Chalinze USAID Workshop, Johannesburg, 27th Sep 2011

12. INFRASTRUCTURE • Bypasses. Eg Lusaka, Lubumbashi • Road maintenance well below standard. EgKapiri – Nakonde, Nata – Kazungula • Weighbridges. Many are still single axle, are not suited to multi-axle units and should be phased out USAID Workshop, Johannesburg, 27th Sep 2011

13. BORDER POSTS PROCEDURES, DOCS • Very little joint management of borders • Most are still two-stop borders. Only Chirundu is one-stop • Authorities at borders often don’t communicate, with duplication and inefficiencies • Operating hours insufficient for traffic USAID Workshop, Johannesburg, 27th Sep 2011

14. BRIBERY AND CORRUPTION • Borders. Delays, smuggling, complex and excessive documentation . Drivers are not “saints” and can be involved in smuggling • Weighbridges. Readings differ along a corridor • Road blocks. Often illegal and there to earn private income USAID Workshop, Johannesburg, 27th Sep 2011

15. MARKET ACCESS • Bi-lateral agreements not managed well • Third Country Rule in place in most States • COMESA carrier licence to liberalize cross-border transport, but some States don’t comply. Eg Kenya’s restrictions • Overlapping between COMESA and SADC creates confusion USAID Workshop, Johannesburg, 27th Sep 2011

16. IMMIGRATION CONTROL OF DRIVERS • Unfair application of visitors visas and work permits. Eg South Africa • Visitors visas can be very expensive and difficult to obtain. Eg Angola • Limit of annual stay by a driver in a State. Eg Botswana and Zambia limit 90 days total in a year USAID Workshop, Johannesburg, 27th Sep 2011

17. OTHER DRIVER ISSUES • General Health. Bad eating and exercise habits, leading to diabetes, etc. • HIV/AIDS. Being away from home encourages bad sexual behaviour • Driving licence. The professional driving permit (PrDP), or equivalent, is not harmonized and sometimes not acceptable USAID Workshop, Johannesburg, 27th Sep 2011

18. ROAD SAFETY • Advanced driver training probably the most important factor in road safety • Poor management of drivers and their driving hours on trips • Inadequate truck stops. To link with Wellness Centres and emergency services • Left-hand drive trucks questionable USAID Workshop, Johannesburg, 27th Sep 2011

19. HIJACKING • Not well publicized • Especially with high value loads, eg copper, cigarettes, liquor, TVs • Drivers’ trips to be better managed with vehicle tracking and direct phone contact • Drivers don’t manage stops well enough • Insufficient truck stops USAID Workshop, Johannesburg, 27th Sep 2011

20. FITNESS OF VEHICLES • Importation of old trucks compromises the ability to maintain a good level of fitness • Rate-cutters do not maintain their vehicles to the required standard • Enforcement of standards by authorities not effective enough USAID Workshop, Johannesburg, 27th Sep 2011

21. LEFT-HAND DRIVE TRUCKS • Transporters in less developed transport industries import USA 2nd hand lhd trucks • Authorities believe lhd trucks compromise road safety • Mozambique and Zimbabwe deciding to ban their importation • Affected transporters will struggle USAID Workshop, Johannesburg, 27th Sep 2011

22. ROAD USER CHARGES • Not harmonized and some countries very high, eg DRC USD300 for 180 kms • South Africa does not implement • Toll road fees complicate the matter • COMESA recommended US$10/100 kms. SADC recommended country-specific • SADC process is struggling USAID Workshop, Johannesburg, 27th Sep 2011

23. 3RD PARTY INSURANCE • Three systems. Yellow Card, Fuel Levy, Cash • Systems not harmonized, drivers have to carry cash • Some States Yellow Card fees very high • Overlapping of COMESA and SADC complicate the matter USAID Workshop, Johannesburg, 27th Sep 2011

24. DIMENSIONS OF VEHICLES • Overall height. SADC recommended 4.3 metres. States vary between 4.1 and 4.6. A high-cube 12-metre ISO container on a standard trailer requires 4.5 metres. • Overall width varies between 2.5 and 2.6 metres • Artic length varies between 16.5 and 18 metres USAID Workshop, Johannesburg, 27th Sep 2011

25. DANGEROUS GOODS • Lack of knowledge and regulations • Becoming a serious problem for road safety • States introducing restrictions which may not be reasonable. Eg Zimbabwe • Insufficient and unprofessional emergency services USAID Workshop, Johannesburg, 27th Sep 2011

26. ABNORMAL LOADS • No harmonized regulations • States apply punitive charges without professional calculations • Escorts a problem across borders USAID Workshop, Johannesburg, 27th Sep 2011

27. CUSTOMS DOCS AND PROCEDURES • Not really a transporters issue, but can create serious problems • Licensing by foreign states • Bond payment delays at borders, due to “briefcase” agents • Continually changing requirements • Delay in implementing a transit bond USAID Workshop, Johannesburg, 27th Sep 2011

28. RELATIONSHIP WITH AUTHORITIES • In some states, relationship is not good, eg in East Africa • Authorities apply tough and punitive measures. Transporters try to outsmart them. Stalemate • Self-regulation not yet far enough forward to make a difference USAID Workshop, Johannesburg, 27th Sep 2011

29. TRIPARTITE ACTION PLAN • Many initiatives to try and solve the problems • Most notable is the Tripartite Trade and Transport Facilitation Programme • FESARTA works with TMSA on it • USAID programme fits with this plan USAID Workshop, Johannesburg, 27th Sep 2011

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40. THANK YOU USAID Workshop, Johannesburg, 27th Sep 2011