Shipping News South Africa

Using IT to mitigate toll costs

Faced with the tool costs on Gauteng roads, companies need to start thinking strategically about the impact that this change will impose on their business models and immediately take the necessary action to manage and restrict these costs as much as possible.

Says Greg Vercellotti, executive director of Dariel Solutions, "Research* shows that the Gauteng Freeway Improvement Project (GFIP) will cost the commercial road freight industry an estimated R1.2 billion every year. Further studies** show that freight transport costs could potentially rise by more than 20%, which will dramatically influence consumer price inflation (for example, bread prices could increase by as much as 2%* as a direct impact of the toll costs.)

"It is critical that businesses that will be directly or indirectly affected by these tolls make relevant considerations and one way of doing this is to turn to technology. Examining a software solution that is customised in a fully integrated goods receiving and delivery solution will ensure that fleets are managed effectively and that costs associated with this toll system are tightly monitored and kept to the bare minimum."

This type of technology solution is a Windows-based platform that is easy to use and allows businesses to optimise their overall business processes, whilst minimising fraud and maximising return on operational costs. Such a solution has the capability to store the mass of loads, weighed on single or multi axle scale, and to restrict entry/departure of any vehicle showing unexpected variances. Furthermore, the number of trucks or vehicles that a business currently has on the roads can be evaluated and a decision made around how many of these are actually necessary. Using customised technology ensures accurate information is gathered, which in turn means informed, viable decisions.

"When one has major freight cost impacts waiting to affect one's business model, such viable decision making is no longer a luxury. In fact, such a technology focus will not only lower toll cost impacts but also effectively manage petrol consumption and reduce vehicle wear and tear. Therefore technology is today's critical answer to managing the business fleet more effectively and more importantly, reach a critical end goal of overall cost savings," concludes Vercellotti.

The road infrastructure changes and subsequent toll costs are unavoidable, however if embraced correctly and if the implications are understood, these changes can be managed successfully.

*Consumer impact of the Gauteng Freeway Improvement Program, March 2011 www.agrisa.co.za/Dokumente/Gauteng_freeway.pdf
**Toll road tariff impact, iAfrica.com, February 2011

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