SA road freight at risk of overregulation

SA road freight at risk of overregulation

The South African road freight industry is facing severe operational challenges, not least of which is overregulation when it comes to safety, as well as the lack of government enforcement of compliance standards.

That’s the view of Crossroads Distribution CEO Pieter Vermeulen, who says there is a risk the industry is overregulating itself to the detriment of compliant operators. “While we’re doing what we need to do – to the letter of the law – non-compliant operators continue to act with impunity, hiring foreign workers at low rates and skimping on maintenance and fleet management, putting themselves and the public at risk,” he says.

“We’ve created an uneven playing field by overregulating, while the rules we’ve set aren’t being evenly applied across the industry, and there’s very little by way of government enforcement to change this status quo,” Vermeulen adds. His concerns echo those of Road Freight Association (RFA) CEO Gavin Kelly, who noted that the association is “closely monitoring” ongoing efforts by the Department of Transport to enforce stricter safety regulations, with particular attention to the Administrative Adjudication of Road Traffic Offences (better known as Aarto) and Road Traffic Management Corporation initiatives.

In his keynote address at the recent annual RFA Conference, Kelly also suggested that trucking operators were at risk of going out of business as they struggled to comply with the increasingly arduous legislative and regulatory landscape.

Pieter Vermeulen, CEO of Crossroads Distribution, says there is a risk that the industry is overregulating itself to the detriment of compliant operators.

Vermeulen believes that the industry faces multiple challenges on several fronts, including congestion at border posts and ports due to enormous administration backlogs and failing systems, as well as rampant crime and labour supply issues. RFA chairperson Penwell Lunga concurred, calling on business to play its part in ensuring the industry’s continued growth. “You are the man in the arena,” said Lunga, citing the famous speech by US president Theodore Rooseveld, and going on to highlight the role of business in uplifting the industry despite its many challenges: “Without trucks, South Africa stops!”

 

  • Crossroads Distribution, a subsidiary of Community Investment Holdings (CIH), is a diversified transport, logistics and supply chain services group operating domestically and regionally, with international capabilities. The company has a strong customer base in its sector and plays a significant role in logistics and supply chain management in Southern Africa. Employing approximately 750 people, owning more than 320 vehicles, and having access to sub-contractors and warehouses, Crossroads focuses on combining skilled professionals and advanced IT systems to provide efficient and cost-effective logistics and supply chain solutions. The company is ISO 9001, ISO 14001,ISO 45001, RTMS, and SQAS-certified.

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Focus on Transport

FOCUS on Transport and Logistics is the oldest and most respected transport and logistics publication in southern Africa.
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