RTMS (Road Transport Management System) TruckX – 2016 Adrian van Tonder Chairman SA RTMS National Steering Committee General Manager Technical Barloworld Transport

Agenda Background and problem statement RTMS (Road Transport Management System) Overview Growth of RTMS in SA

Reality Check

Brake & Tyre Watch Results 32 B&TW events from Feb to date

Excess heavy vehicle maintenance and repair costs Road condition Average maintenance and repair cost (R/km) Average percentage increase in the truck maintenance and repair cost Average percentage increase in company logistics cost GoodR FairR %2.6% BadR %10.4%

Road Freight Challenges The Reality: A Culture of Non-compliance Inputs o Overloading o Poor vehicle fitness (servicing & maintenance) o Poor driver fitness (fatigue, health, training) o Reckless driver behaviour o Border post delays o Bribery & corruption – impact on compliant and non-compliant operators o Inadequate periodic maintenance (roads) Outputs o Poor road safety o High cost of road transport/logistics o Deterioration of infrastructure o High levels of emissions

The Road Transport Management System RTMS is an industry–led, government-supported, voluntary, self-regulation scheme that encourages consignees, consignors and road transport operators to implement a management systems standard with outcomes that contribute to preserving road infrastructure, improving road safety and increasing productivity. Key focus areas are: - load optimisation - driver wellness - vehicle maintenance - productivity

Practical requirements of RTMS

Growth of the RTMS in SA 200 fleets representing trucks & buses (In 2007 their were 74 certified vehicles) 24 abnormal load operators: 258 vehicles Plant hire, construction, engineering, mobile cranes 2 commercial A/L operators (108 vehicles) Four bus operators: Buscor 404 buses Intercape 152 coaches GABS Over 1000 buses Intestate (Bloem)

Fleet availability – 65% > 92.7% The fleet stock replacement cycle at the time was 33 years which was far above the industry norms for vehicle replacement. Current average Fleet stock replacement cycle 8.5 years Fleet management was generally viewed as a fleet maintenance service, which led to the various activities being dealt with on a decentralised somewhat fragmented basis. During the financial year 05 / 06 the organisational structure of fleet services was reviewed and consequently aligned with a proposed business model which provided functionally aligned vehicles to the operations in terms of an internal price recovery agreement. Fleet management was generally viewed as a fleet maintenance service, which led to the various activities being dealt with on a decentralised somewhat fragmented basis. During the financial year 05 / 06 the organisational structure of fleet services was reviewed and consequently aligned with a proposed business model which provided functionally aligned vehicles to the operations in terms of an internal price recovery agreement. Overview Fleet Statistics Strategy and Culture The Electricity Services fleet comprised a fleet of 840 vehicles ranging from off road utility vehicles, sedans, ldv's and panel vans to light, medium and heavy trucks as well as a variety of truck mounted aerial platforms Functional alignment - 40% > 95%

Introduction Feb Oct 2012

Incident rate Benefits derived from adequate investment in fleet Fleet functional alignment Fuel efficient technology

Statutory Compliant International benchmark 7.5%

RTMS standard (SANS 1395) was published in Dec SANS 1395 is closely aligned to ISO RTMS auditors will be appointed and managed by SANAS under SANS RTMS certified companies / depots. Currently vehicles are RTMS certified (In 2007 when RTMS started 74 vehicles were certified) RTMS AGM – 27 August 2015Resolution passed – Annual Membership fee – R50 / Vehicle / year The way forward… The way forward…

Thank You