Industry Commitment to Collaborate in Policy

Formalisation, Implementation and Promotion

Brenda Horne – SASTALC CEO1 OCTOBER 2015

JOHANNESBURG

As Council we strive to facilitate and aggregate inclusive, innovative, collaborative

public private, stakeholder dialogue, advocacy and cooperation

across all modes of transport.A chain is as strong as its weakest link

Transport and Logistics are crucial links in the total supply chain

Globally Supply Chains Compete Not Necessarily Only Products !!!

3. In collaboration, there is an increase in the understanding of diverse perspectives with the development of higher-level thinking as one of the important results.The coordinated efforts of many can accomplish more than the efforts of one or a few separately.

1. What is Collaboration?

Collaboration enables individuals/organisations/stakeholders to work together to achieve a defined and common business purpose.

2. Collaboration relies on

openness and knowledge

sharing but also some level of

focus and accountability on

the part of allNote: This information is taken from the body of knowledge that comprises AIIM’s Certified Information Professional. - See more at: http://www.aiim.org/What-is-Collaboration#sthash.qfGRHdhX.dpuf

http://www.mccoyouth.org/Advocacy/advocacy-vs-lobbying.html

What is Advocacy?

Advocacy is educating and creating awareness among legislators and the general public of issues facing the community and the importance of aligning public policy to address the need.

http://www.mccoyouth.org/Advocacy/advocacy-vs-lobbying.html

What is Advocacy?The following activities are considered advocacy, not lobbying:•Providing technical assistance or advice to a legislative body or committee in response to a written request;•Making available nonpartisan analysis, study or research;•Providing examinations and discussions of broad, social, economic and similar problems;•Communicating with a legislative body regarding matters which might affect the existence of the organization, its powers and duties, its tax-exempt status, or the deduction of contributions to the organization (the "self-defense" exception); and•Updating the members of your own organization on the status of legislation, without a call to action.

SASTALC - COLLABORATION PARTNERS, OUR ASSOCIATE MEMBERS

CLORCHEM - NCP COLUMBUS STAINLESS PTY LTD DIVINE MERCY TRADING

EVRAZ HIGHVELD EXXARO FRUIT SA - MZANZI

GLENCOR - XSTRATA HULAMIN SISHEN IRON ORE

COMPANY - ANGLO

MMC - MANGANESE METAL

COMPANY

PALABORA MINING COMPANY -

PMC

SAMREC

SAMSUNG SAPPI EXPORT

SERVICES PTY LTD

SASOL

SEABOARD INTERNATIONAL SIYANDA

TRONOX

INNOVATIVE COLLABORATIVE ADVOCACY ACROSS ALL STAKEHOLDERS AND MODES OF TRANSPORT

AURECON BPL - BIDFREIGHT PANALPINA

LOGISITCS

BIDFREIGHT PORT

OPERATIONS - BPO

BARBERRY GROUP GRINDROD LTD IMPERIAL LOGISTICS

ISAHA LANDSEA-LOGISTICS LBH

OCL- OUR CORRIDOR LOGISTICS PROSADC – LOADSMART QUATTRO LOGISTICS

SAVINO DEL BENE

DREYER PROJECT DYNAMICS

T-SYSTEMS

FNB/RMB

THE RIGHT MIX

DEPARTMENT OF

TRANSPORT

IN PROGRESS: BARLOWORLD

LOGISTICS; RIO TINTO; CTRACK;

PROFESSIONAL SHIPPING; QUATRO

PROGRAM; RCBT; HATCH ;

ROSEFULLBRIGHT

IN PROGRESS:

TRANSNET

ESKOM

MANAGING TO TOTAL COST OF SUPPLY CHAINShttp://www.imanet.org/docs/default-source/thought_leadership/operations-process-management-innovation/managing_the_total_cost_of_global_supply_chains.pdf?sfvrsn=2

IMA – INSTITUTE OF MANAGEMENT ACCOUNTANTS – www.imanet.org

http://www.imanet.org/docs/default-source/thought_leadership/operations-process-management-innovation/managing_the_total_cost_of_global_supply_chains.pdf?sfvrsn=2

Across areas such as:• Legislation, • Policy, rules, processes and procedures debate• Planning and implementation • Infrastructure provision, maintenance, efficiency

and sustainability• Tariffs as matter of principle, i.e. “user pay

principle”, surcharges, levies, etc.• Economic regulation • Private sector investment in transport projects• Transport safety and security across all modes• Moving rail friendly cargo back from road to rail• Operational efficiencies across modes and clusters

Aggregation across Southern Africa supply chain requires a national/regional freight transport and logistics council to engage all relevant stakeholders around Key Performance Areas i.e.

• Transformation• Promotion and Advocacy• Knowledge and Research• Capacity building, • Industry Networking• Services – legal, transport and trade facilitation,

consulting, training, conferences

Industry

Agriculture

Manufacturing

Mining

Transport & Logistics

Other

2013 COUNCIL SURVEY –Survey, to highlight the issues that industry would like us to address on your behalf as cargo owners and/or logistics services providers”

1. Increasing transport costs (94%) (72% to a large extent)

2. Operational inefficiencies SA (92%) (55% to a large extent)

3. Labour relations in industry (88%) (76% to a large extent)

4. HR problems (80%)

5. Increasing toll roads & e-tolling (78%) (57% to a large extent)

6. Infrastructure quality SA (78%)

UNISA SASC

15

Issues of concern to your organization/supply chain?

Costs, Operations, HR, Infrastructure, Law enforcementSouth Africa and Region

Issues of concern to your organization/supply chain?Costs, operations, HR, infrastructure, law enforcement

7. Cross-border inefficiencies (76%)

8. Private sector engagement with government (72%)

9. Lack of regional integration/harmonisation (70%)

10. Rail vs road options (70%)

11. Shortage skills / experienced SC staff (68%)

12. Introduction of carbon tax (68%)

UNISA SASC16

Issues of concern to your organization/supply chain?Costs, operations, HR, infrastructure, law enforcement

13. Infrastructure quality Southern Africa (68%)

14.Operational inefficiencies Southern Africa (66%)

15.Lack of law enforcement e.g. overloading (64%)

16.BBBEE & Transport Charter (60%)

17.Corruption in logistics activities in Supply Chain Southern Africa (56%)

18.Customs/SARS inefficiencies (49%)

19.Corruption in logistics activities in Supply Chain SA (49%)

UNISA SASC 17

Risks if needs & concerns for SA supply chains are not addressed

• Poor communications

• Poor stakeholder relations

• Poor staff morale

• Poor productivity

• Poor planning

• Poor Implementation

• Poor operations

• System failures

• Excessive costs

• Not competitive

• Loose market share

• Loose global competitiveness

• Slow or no job creation

• Time delays

• late deliveries,

• congestion

• damage,

• shortages,

• accidents PHYSICAL FINANCIAL

ORGANISA

TIONAL

INFORMA TION

0% 20% 40% 60% 80% 100%

10. Lobby government on behalfof members

9. Lobby other bodies on behalfof members

8. Provide regionalrepresentation for members

7. Provide global representationfor members

6. Increase the voice of SAshippers

5. Increase the visbility of SAshippers

4. Lead operational workinggroups/sub-committees

3. Represent shippers inTransnet capital expenditure…

2. Represent shippers in variousTransnet issues

1.Improve regulation in SouthAfrican supply chains

To no extent

To a small extent

To a moderate extent

To a large extent

Mai

n e

xpec

tati

on

s fr

om

Co

un

cil?

0% 50% 100%

23. Provide entry to conferences

22. Facilitate conferences

21. Provide information on…

20. Provide training in SCM

19. Facilitate training in SCM

18. Represent shipper issues in…

17. Provide alliances with other…

16. Provide alliances with universities

15. Provide alliances with ETD…

14. Provide supply chain knowledge

13. Identify stakeholder needs

12. Conduct research on particular…

11. Provide platform for networking

To no extent

To a small extent

To a moderate extent

To a large extent

EXPECTATIONS FROM COUNCIL -

SURVEY 2013 – TRANSFORMATION STRATKEY PERFORMANCE ACTIVITIES/AREAS

COLLABORA-TIVE

ADVOCACY

KNOWLEDGE HUB NETWORK

TRAINING & CAPACITY

BUILD

REV GEN SERVICES

Conduct research on particular supply chain problems 1 1 1

Facilitate conferences 1 1 1

Facilitate training in SCM 1 1 1

Identify stakeholder needs 1 1 1

Improve regulation in South African supply chains 1 1

Increase the visibility of SA Shippers 1

Increase the voice of SA Shippers 1

Lead operational working groups/sub-committees 1 1

Lobby government on behalf of members 1

Lobby other bodies on behalf of members 1

Provide alliances with ETD providers 1 1 1

Provide alliances with other associations 1 1

Provide alliances with universities 1 1 1

Provide entry to conferences 1 1 1

Provide global representation for members 1 1

Provide information on conferences 1 1

Provide platform for networking 1 1 1

Provide regional representation for members 1 1

Provide supply chain knowledge 1 1 1

Provide training in SCM 1 1 1

Represent shipper issues in national publications 1

Represent shippers in Transnet capital expenditure planning1

Represent shippers in various Transnet issues 1

Weights 14 7 7 4 5

COUNCIL

FEES FOR SERVICES

SEED

FUNDERS/ DONATIONS/ SPONSORSHIP

MEMBERSHIP FEES

KPA’S

NETWORK

CAPACITY BUILDING

TRAINING & DEV

COLLABORATIVE ADVOCACY

INNOVATIVE KNOWLEDGE

HUB

SERVICES

BOARD

CEO SECRETA

RIAT

TECHNICALEXPERTS

PPP

INDUSTRY FORUM

MEMBERSFUNDING IN FUNDS/KIND

ONE VOTE EACH

ASSOCIATES

COLLABORATIVE INTENT

NO VOTE

SASTaLC BUSINESS MODEL

BO

AR

DO

PER

ATIO

NS

MEM

BER

S

REVENUE SOURCES

SASTaLC

Coordination

Facilitation

Communication

Evaluation

Corporate

governance

Aggregation

Integration

STRATEGIC PILLARS

7 Pillar Strategy of Goals to achieve Council’s vision

System Integration & Visibility

Ensure Efficient Structure Governance and Programs Operations

Aggregate Innovative Collaborative Advocacy

Facilitation of Networking,Research, Capacity Building and Training

Coordination of Public-Private Dialogue & Interests

Integration of Institutions, Regulations, Infrastructure Development & Information

Communication With All Stakeholders

Evaluation of SASTALC & Supply Chain Performance on a Continual Basis by Enabling Visibility

C

o

u

n

c

i

l

Southern Africa ShippersTransport and Logistics Council

VISIONED COUNCIL INDUSTRY FORUM

SASTALC EXCO AND SPECIALIST

TETA & TERTIARY

INSTITUTIONS

TRANSNETPUBLIC

ENTERPRISES

DOT & AGENCIES, i.e.

SAMSA, SANRAL, CBRTA

MUNICIPALITIES & PROVINCES,

ET AL

DTI – EXPORT COUNCILS,

TREASURY & SARS

INDUSTRY ASSOCIATIONS &

LABOUR

Contextualise the LPI for Regional Expansion

WB 2014 LPI Customs Infrastructure Int shipments Logistics Q &C Track & Trace Timeliness

LPICountry score rank score rank score rank score rank score rank score rank score rank

Germany 4.12 1 4.10 2 4.32 1 3.74 4 4.12 3 4.17 1 4.36 4

HK, China 3.83 15 3.72 17 3.97 14 3.58 14 3.81 13 3.87 13 4.06 18

South Africa 3.43 34 3.11 42 3.20 38 3.45 25 3.62 24 3.30 41 3.88 33

Malawi 2.81 73 2.79 62 3.04 48 2.63 108 2.86 70 2.63 100 2.99 100

Namibia 2.66 93 2.27 125 2.57 81 2.70 97 2.69 86 2.56 106 3.15 82

Angola 2.54 112 2.37 114 2.11 140 2.79 84 2.31 128 2.59 103 3.02 96

Botswana 2.49 120 2.38 112 2.23 125 2.42 129 2.58 99 2.40 127 2.94 103

Zambia 2.46 123 2.54 86 2.31 115 2.13 152 2.47 114 2.47 120 2.91 105

Lesotho 2.37 133 2.22 129 2.35 110 2.48 122 2.23 137 2.35 132 2.60 139

Zimbabwe 2.34 137 1.89 154 2.25 123 2.25 143 2.50 108 2.22 143 2.93 104

Tanzania 2.33 138 2.19 135 2.32 114 2.32 137 2.18 145 2.11 150 2.89 107

Mozambique 2.23 147 2.26 126 2.15 135 2.08 154 2.10 153 2.08 152 2.74 134

Congo, Dem. Rep. 1.88 159 1.78 158 1.83 156 1.70 160 1.84 158 2.10 151 2.04 159

RANGE OF LPI’S GREATEST CHALLENGE TO REGIONAL

TRADE GROWTH

SOLUTIONINNOVATIVE

COLLABORATION TO WORK

TOGETHER TO IMPROVE QUALITY OF SUPPLY CHAIN

SERVICES Regional Expansion: Overcoming Logistical Challenges to enable Southern African Supply Chains

Cost As A Component Of Total Supply Chain• Cost are very important – every R = impact on global competitiveness• Port regulator has demonstrated the importance of its role in SA (ER) great

expectation for the STER to facilitate process of effective adjudication of pricing structures and operational efficiency standards

• However we have to focus on ALL elements from plant to destination • Equal focus on operational efficiency and costs• All elements have to be benchmarked - individually and collectively• All elements have to be regularly evaluated - individually and collectively• Equal collaborate advocacy – across all elements – public private dialogue• Very important that all stakeholders contribute to create a greater

understanding of the impact of all elements collectively across our distribution chain.

• Lets look at the current work/documents on the table from DoT – it is our responsibility to play our role as users/shippers & service providers

Areas currently on the DoT/Industry table to name but some:1. The Launch of the National Transport Forum – Member Pillar 1 2. White Paper on Transport3. Green Paper on Rail4. Development - Integrated Multi-modal Transport Planning and Coordination draft bill5. NATMAP 20506. National Freight Logistics Strategy7. National/Regional Corridor Strategy8. National Land Transport Strategic Framework 2015-20209. Road Infrastructure Planning Strategy10. Maritime Technical Committee Discussion Document11. Re-visiting and potential redrafting of the ports bill12. Twenty First Amendment) to the National Road Traffic Regulations. The Government Gazette is No 38142

published on 31 October 2014 – consignee/nor13. Mandatory verification of gross container weights – SOLAS 1 July 201614. STER (Single transport economic regulator) ……………..and many more

SARS – CUSTOMS BILL AND RULES TREASURY – OSBP - TRANSNET – MDS – ROAD TO RAIL - INTERMODALOPERATION - PHAKISA – THE BLUE ECONOMY – SA FLAGGED VESSELS

IMMIGRATION – BORDER MANAGEMENT AGENCY - SIPS DTI – INTEGRATED EXPORT DEVELOPMENT BILL- DOCUMENTS IN THIS REGARD AVAILABLE FROM SASTALC

SASTALC SERVING OUR INDUSTRY (>92 Newsflashes since July 2014)-• Strengthen mandate through > 25 industry associations – local, regional,

continental, global• Double membership since July 2014• Department of Transport joined as strategic government department member =

PPP• Acknowledged by SADC & COMESA as regional industry organisation• MoU with Africa Union of Shippers Councils• Facilitated SG of global shippers forum – 2 s/h engagements on Safe Container

Packing and Mandatory verification of container weights• Facilitated engagement with SAMSA & Keys s/h’s – Mandatory Verification of

Gross Container Weights – (All export containers to be shipped from 1 July 2016)• Facilitated a visit by high level delegation of Congolese Shippers Council

to engage with TRANSNET/ TPT/TFR/other terminals• Facilitated 3 industry meetings for TFR - Road to Rail strategy• Submission to Minister of Transport - proposed freight truck ban over peak hours

SASTALC SERVING OUR INDUSTRY (92 Newsflashes since July 2014)-• Nominated to the board of the EMC - various meetings• Participated in the NBF Afri-ID Working Group North South Rail Corridor

Meeting• Participated in the various TRANSPORTSIG Transport Forums• Participated in the Rail Working Group Meeting – Luxemburg Protocol – register

for rail equipment – finance security• SADC Business forum in Gaborone - first SA shippers/transport representation• COMESA Business Council Nairobi – Transport association meeting invited by

USAID• Submission to National Port Regulator – pricing application• PCC’s • Participate in SARS stakeholder meetings• Participate in associate member activities• Submission to the NPR – on 5 year evaluation & sent out survey• Submission to DTI on the RIA of the Export development bill and sent out survey

SASTALC SERVING OUR INDUSTRY (92 Newsflashes since July 2014)-• Tripartite Transport and Transit Facilitation Programme Meeting in Gauteng in

August-Harmonisation of cross border transport –• Prior meetings:

• Vehicle load management strategy and implementation plan &• Vehicle load management MoU (VLM MoU)

• This meeting considered the validation of the following:• Tripartite vehicle regulations and standards• Driver Training and Licencing for Commercial Vehicles• Harmonisation of Cross border Third Party Motor Vehicle Insurance Schemes• Proposed Self regulatory Scheme – RTMS• Tripartite Transport Registers (TRIPS), information platform and systems

• Vehicles, Drivers, Operators, Infringements, etc.• Draft multi-lateral Cross border road transport agreement (MCBRTA)• Implementation Plan for the Harmonised Tripartite Cross Border Road Transport Regulations and StandardsDOCUMENTS IN THIS REGARD AVAILABLE FROM SASTALC

• Mentoring women and youth industry associations• Conference presentation to promote the SA transport infrastructure and

services as a voice of the shipper and their service providers• Logistics business breakfast – facilitate public private sector dialogue !) Ports

and Shipping 2) Road Regulations 3) Changing Customs Environment 4) Rail -right balance – opportunities and challenges

Please diarise the date of our last Logistics Business Breakfast

Date: 13th October 2015Topic: Rail and Intermodal Transport

“The benefits and challenges of the right balance”

PUBLIC PRIVATE DIALOGUE

BIDFREIGHT PORT OPERATIONS - BPO

BARBERRY GROUP

SEABOARD INTERNATIONAL

IMPERIAL LOGISTICS

Industry Commitment to Collaborate in Policy Formalisation,

Implementation and Promotion

Please Strengthen Our Hands Through Your Membership

THANK YOU Brenda Horne – SASTALC CEO

TEL 0828022338

brenda@sashippers.net

www/sashippers.net

SAFE TRAVELS – REMEMBER LIGHTS ON SAVES LIVES