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Is constant reinvention the key to winning in today’s fast-paced world? Not judging by the results of some of the world’s best performing companies. In “Repeatability”, the leaders of Bain & Company’s influential strategy practice reveal a powerful truth: successful companies that endure maintain a form of simplicity at their core. More than anything else, a “great repeatable business model” equips companies to deal successfully with complexity, the silent killer of profitable growth. Chris Zook and Jimmy Allen, co-authors of the bestselling “Profit from the Core”, detail the value of repeatability in business, showing how the “big idea” today is really made up of a series of successful smaller ideas driven by a simple and repeatable business model. Based on a multi-year study of hundreds of companies, Zook and Allen show how well-known global firms – including IKEA, Vanguard, Starbucks, LEGO, DaVita, Nike, and FloraHolland – combine a core differentiation model with speed, adaptability and simplicity to land them at the top of the competitor chain for longer periods of time. CEOs, senior executives, managers and investors all need to read this blueprint for reaching the top – and staying there.
Originally posted here:
Repeatability: Build Enduring Businesses for a World of Constant Change
Today the world is at your fingertips. With just a few mouse clicks you ll know what s happening at the other side of the globe. You have all read about the great industrial revolution and now can see its impact for yourselves. People from different corners of the globe have come closer to each other; all borders have been wiped out shrinking the world into a nutshell almost. Yes today with massive advancement in the field of technology, new innovative technologies are coming up and this has indeed reduced the planet s dimension by allowing goods to be transported and messages to be transmitted at a lightning speed. For more information,click here http://comgateway.com.my/1.
This has truly created a phenomenal impact on the entire world. It has opened up a gate way for large scale trade and travel between the far flung countries of the world which people never ever imagined that they could have connected to. Even two or three decades back if any shipping took place across the borders, people had to wait for their parcel or package deal for many months. But today it s a past story. With the advanced technologies applied in the recent freight forwarder & logistic services, you can receive your goods within a day or two of it being dispatched from origin.
With the rising trends of globalization, the import and export business has become one of the leading businesses in many important nations of the world. To run successfully these businesses need the service of an efficient freight forwarder who can tackle the swelling freight demands of the traders most adroitly. A freight forwarding company can offer you the services of efficient freight forwarders. But with so many companies out there you might feel literally puzzled as to which could be an absolutely right choice for you. It s true indeed that with the services of these companies it has definitely become quite easier to send goods or receive goods, be it a parcel that needs domestic shipping or one that needs international shipping.
Now when it comes to choosing a freight forwarding company, you can abide by certain tips. You must opt for a company that handles all the documentation tasks related to freight movement quite professionally. The documentation should be accurate and totally error-free. These companies handle millions of clients each day and the shipment destinations keep varying from one client to another. There s every possibility of making careless errors in documentation but companies who do the job professionally will not do any mistake. An error can really cost you much. Suppose your shipment is for Malaysia. Due to documentation error instead of shipping to Malaysia 2it can ship to Canada.
You ll have to bear the headache of unnecessary delay and even your item may get lost altogether! Also make sure that the company you have chosen has contracted with multiple carriers. This will ship your goods speedily. Also you must research on the company s financial health. See whether it s secured financially. It should not happen that your goods are withheld at a port because the company is unable to pay its bills. So these are some tips for choosing a freight forwarding company.
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Enzo Potolicchio’s 8Star Motorsports is a team that appears to be on the fast track. (Photos courtesy of the Grand-Am Rolex Sports Car Racing Series)
By Jim Pedley | Managing Editor
KANSAS CITY, Kan. Enzo Potolicchio looks too young and sounds too stress-free to be the owner /driver in big-time auto racing. He s 45 years old and he actually looks and sounds like 45; which is odd when you consider his past, present and future.
But as he talks on about racing, business and life, the source of his buoyancy becomes obvious: Potolicchio runs on a undiluted confidence.
The native of Venezuela has a plan for himself and his team and there is no room for doubt in that plan.
In the paddocks of his team 8Star Motorsports there is a Penske-like orderliness. Body panels for his two Daytona Prototype Corvettes are symmetrically stacked and are polished spotless. Tools are precisely located and lined up and crew members wear crisply ironed sportswear.
Potolicchio s team will wrap up its first full season in the Grand-Am Rolex Sports Car Racing Series with events this weekend at Laguna Seca and then two weeks after that at Lime Rock. There will likely be no driver or team championships when 2013 does end, but there is confidence that those things will come and come soon.
I m here to win, he says.
Potolicchio got involved in racing relatively late in his life. But when he did get involved, he attacked. In the late 1990s, he drove Formula Fords, F2000 and Porsche Super Cup cars. From there, he moved to Ferrari Challenge series.
In 2011, he moved up to DPs, driving for the Peter Baron-owned Starworks Motorsport team. In 2012, he competed with Starworks in the FIA World Endurance Championship driving an LMP2 car. The team won LMP2 at Le Mans and Sebring that year and won the WEC trophy.
The businessman/racer started 2012 with Starworks but abruptly left the sport because of dissatisfaction with Grand-Am officiating. Potolicchio decided, however, to form his own team 8Star and has returned to race in both the WEC in LMP2 and DP in Grand-Am.
A couple of weeks ago, Potolicchio sat down with RacinToday.com for a lengthy interview in the Paddocks at Kansas Speedway, where he was competing in the SFP Grand Prix.
What follows is a transcript of that interview, in which he discusses himself, his team and his plans:
Question: You and 8Star have jumped into big time sports car racing in a big way. Talk about that.
Enzo Potolicchio: We ve set our goals high. We ve always aimed high. That s how I ve been all my life, that s how I ve been in every business I ve been into. When I promised podiums my first year, some people laughed about it.
We showed up at the Daytona test and we didn t have all the equipment ready. We showed up with a car built, but we couldn t even fuel the cars the right way. It s a big team and right now, it s amazing where we re at.
We now have a customer program. The 4 car (which is a 8Star car driven by Emilio DiGuida) with
8Star has been able to attract top stars as drivers.
Sebastien Bourdais, it was the fastest car at Road America. Fastest Corvette, fastest car overall. Emilio is getting up to speed and comes from GT and is getting up to speed with the experience of the car. We proved we can take care of two cars and the 4 car is faster. Some people are always going to say, How can you drive for a team owner who races against you? There is always going to be an advantage on the 3 car (co-driven by Potolicchio). We proved that wrong. The team has no team orders. The only order we gave anybody is we have two identical cars and we proved that the two cars are on the exact same pace. At Sebring we had all the drivers shuffle around both cars they were really comfortable in both cars and then I gave the green flag to bring the customer (Di Guida) in. If it weren t (equal) I wouldn t do it. I m building a brand.
Question: And attracting customers/partners is part of the plan for brand?
Potolicchio: We have been doing well in IMSA Lights, we have a PC program that will start soon and we have the DPs. We have our own ladder system in our shop to attract a lot of South American customers. Being in Florida gives us an advantage. We speak English, we speak Spanish, we speak Italian. We can bring a lot of people internationally to the series and give them a home. I had a person today who told me he had a kid in go-karting and said, Enzo, I m really looking for a home for my kid and heard that that is what you can give me. That made me really proud to hear on the phone. We are now becoming an option. People are looking at us. We have the best equipment, we have hired really, really talented people and it s showing day after day on the track how professional we are and how committed we are to doing well.
Question: Your plan sounds very business-like, right?
Potolicchio: I m a business man. I ve been a business man all of my life. I know what it takes. Obviously it takes a lot of hard work and I m willing to give it and it takes a team. We have team
Enzo Potolicchio has big plans for his sports car operation.
members who are amazing. It s an opportunity for everybody. For me, it s an opportunity to do something I love and for them it is an opportunity to work with the right equipment, the right tools and the budget to do it right. So everybody is motivated.
Question: But two cars right away? It seems to be working. Explain how it is working with Di Guida.
Potolicchio: We have a full time PR at the shop David Hart has been helping us a lot. We have a director of operations. We do all of our accounting in house. We have our own logistic people. We have a big overhead. It s not a shop that s going racing, we re building a brand and a ladder system and to do it right, it needs to be handled as a business more than a mechanic s shop.
This (two teams) is not it. We re aiming really high. When the customer with the right funding showed up and I know Emilio is a really capable driver in GT, I said this is the right customer. When he was good to hire somebody like Sebastien Bourdais, I said this is the right one. I m not only looking for the customer to bring cash in and run the car, but I m looking for the guy to have the right mindset for what I want to accomplish as a team and as a brand. And he definitely showed that. He bought the whole idea.
Question: You were part of the highly successful 2012 Starworks effort. Did you learn a lot from Peter Baron and that group?
Potolicchio: I picked up Starworks from almost nothing and I am really proud of what I did. Me and Peter Baron were good, good, good partners. Let s put it that way. We won the world championship but people don t know how far involved I was in the whole thing. We worked really hard together to accomplish what we got accomplished. I think we both learned from each other. I come from a business back ground. I get what racing means. Racing is about image. Everything needs to look right. It s like a pretty girl. You always look at a pretty girl. You need to show that to people to, to a partner, a customer to be real organized in everything you do and I think Peter benefitted from that side of my goals. Yes, he s got really good people working there. He s got a good team going on and I m proud of him. I think it was a 50-50 blend there that was successful.
Question: You bolted from Grand-Am last year. Can you talk about that?
Potolicchio: There was inconsistency with the calls in Grand-Am last year. I was really frustrated about the inconsistency with the race director who was a good friend of us but I really separate what s work and what s friendship and Grand-Am was going in a bad direction because of all the inconsistency in the calls.
We got hit under yellow at Indy when we were fighting for the championship. We were actually leading the championship at that point. We told Grand-Am that Ganassi s bringing a second car with (Juan Pablo) Montoya and we know Montoya has nothing to lose. And he likes to play he calls it rough, I call it stupid and he played stupid to win our race. He came into our championship and instead of being respectful when he took out the No. 5 that was fighting for the championship, and our No. 8 under yellow, he disrespected everybody. And when the series does nothing about it, I told the series, Look, until you make major changes in the direction and the managers of the series, I will not come back. To prove me right, everybody I fingered is not here now. Definitely (Grand-Am) listened and I appreciate that and Ed Bennett was definitely a positive for the series. He figured out what was going right and what was going wrong and he made some key changes in the series that has shown improvements.
Question: 8Star s roster of drivers is impressive. Big names like Bourdais, Michael Valiante, Oz Negri, Pedro Lamy, Nicolas Minassian and Stephane Sarrazin. How were you able to make those hires?
Potolicchio: Sebastien Bourdais, me and Peter hired him for the 6-hour (at Watkins Glen) and he had never been in a DP car and adapted really, really quick. Not every driver adapts to DP. To get it that quick impressed us. When we looked at the (2013) schedule and saw there were no more conflicts with IndyCar, I approached him right away because I needed to find the best teammate available for Emilio and we could trust to do a really good job. So we hired him. He knows my approach to racing. He s been my teammate before and when we offered him a job he took it.
Having the guys that we have on the team, trust me, it makes me proud. We have Anthony Davison, Nic Minassian, Pedro Lamy, Sarrazin who won in P1 racing. Sebastien Boudais. Having them come to 8Star and trusting that we re going to give them a good car, a safe car, that we re going to do our best to improve race by race, it means a lot because they have a big name, they don t need to come and show up with a bad team. They know we re going to push and we re not going to give up. Sarrazin trusted us and he s one of the big names in Europe.
When Toyota called me for Le Mans last year and I actually had him under contract, I was actually glad. He had just lost his job at Peugeot, he came down to a privateer LMP2 team and did an amazing job for us at Sebring, finishing third overall and first and class and I said, You know what Stephane, you deserve a factory ride again. Please do that. Scrap the contract. So we needed to find somebody else for Le Mans and we hired Tom Kimber Smith and we won Le Mans so we now actually make a lot of fun with Sarrazin because he s tried 12 times to win and has not been able to win it and I say I ve been there once but I won it.
It s about building relationships. We are a big, big family. It s reputation. I ve built a reputation in my career and in my life as a person. When you say something and you shake hands people know you re going to go through. I don t go by contracts and paper work. I shake a hand and my word means a lot and people respect that and that word gets out there. If it s good for me or bad for me, I stand by my word. That s why when I offer a job to somebody, people say, that guy you can trust .
Question: Next year in the Unified series, will you field P2 cars?
Potolicchio: I know what it takes to run a P2 car the right way. And I know what it can do. We have really good data from Sebring. We ve got an advantage over a lot of people because we ran a really successful P1 program so I m going to make my decision later on when all the final decisions and rules for balance of performance comes out and we ll make the final decision. I m in talks already with P2 manufacturers, obviously because I need to have my doors open and they are ready for my decision. So, we ll see what happens but we are definitely waiting for specs.
Loaner program, battery warranty planned to overcome consumer concerns
The i3 — unveiled today in New York, Beijing and London — has a top speed of 93 mph with a 110-lb. electric motor that generates 170 hp and peak torque of 184 lb-ft. BMW says it can go from 0 to 35 mph in about 3.5 seconds and 0 to 60 mph in about 7 seconds.
Photo credit: BLOOMBERG
Can the company that touts itself as the ultimate driving machine produce an electric car using environmentally-friendly materials and still perform like a BMW?
The German-luxury brand claims it has done just that with the compact i3, its first battery electric car formally unveiled today and touted by BMW for its construction and performance.
It is BMW’s latest effort to innovate and keep ahead of its chief rivals — Mercedes-Benz and Audi. BMW is the top-selling luxury brand in the world and United States, and is betting the ambitious i3 will help pad its lead.
“We are at the starting-blocks of a new era — the era of sustainable mobility,” CEO Norbert Reithofer said today while introducing the i3 in New York. “This is what BMW is known for. Our passion for mobility makes us the premium car company.”
He vowed the i3 and electric mobility will do for individual mobility what the mobile phone has done for personal communication.
The i3 is the “world’s first mass-produced car” using carbon fiber reinforced plastic, BMW says.
The car is also expected to help BMW meet more stringent fuel economy and emissions requirements in the United States and elsewhere in coming years.
The five-door, rear-wheel drive compact i3 has the footprint of the 1-series, the smallest BMW sold, and the interior room of the 3-series compact car.
The car — aimed primarily at urban users in densely populated cities — has a pillar-less design with rear coach doors for easier rear-seat access. Vehicle dimensions were not released today.
It is equipped with a carbon-fiber reinforced plastic passenger cell, an interior of “high quality renewable sources and recycled material,” and weighs only 2,700 pounds, BMW said.
The i3 will cost $42,275 including destination before a $7,500 federal tax credit or any state incentives when it goes on sale in the second quarter of 2014. An optional gasoline range extender will be available priced at $46,125, including destination.
BMW plans to address widespread consumer concerns with EVs by offering several unique services and guarantees with the i3:
A battery with an 8-year/100-mile warranty.
Roadside assistance if the battery loses a charge during a trip.
A navigation system that shows charging stations.
House calls for customer test drives and special training for dealers.
A fee-based loaner vehicle program, arranged by dealers.
Dedicated electric platform
BMW is the first luxury brand to develop a dedicated electric car family with its own architecture and drivetrain. The second vehicle in the i subbrand will be the i8 hybrid sports car that also goes on sale in the second quarter of 2014.
There are unconfirmed reports that BMW has additional i models in the pipeline.
BMW has trademarked i0 through i9, said Ian Robertson, BMW’s sales chief.
“We have a lot of ideas,” Robertson told Bloomberg at a media briefing ahead of the presentation today. “We’re not entering this market to be a niche player,” even though there are no concrete additions under development.
BMW plans a host of services to make owning and driving the i3 “enjoyable and easy.”
The company has invested $796 million (600 million euros) in production facilities for the car, including installing annual capacity of 40,000 units at its Leipzig, Germany, plant, and building a new factory in the United States at Moses Lake, Wash., to produce carbon fiber for the passenger cell.
The company’s total investment in the i sub-brand program is an estimated $2.7 billion.
BMW hasn’t given a sales target for the i3. But Robertson said in a statement last week that the company aims to be “a significant player” in the market for electric vehicles, which he has pegged at about 150,000 cars worldwide in 2012.
The United States is expected to be the largest market for the vehicle, BMW officials said today.
BMW is launching the i3 at a time when volume brands such as Nissan, Toyota, General Motors and Audi have scaled back their electric-car programs or offered aggressive incentives or price cuts to stimulate sales.
“After the earlier hype about electric cars, the expectations for the i3 are now so low that BMW is actually in a position to positively surprise with that car,” said Juergen Pieper, an analyst with Bankhaus Metzler in Frankfurt.
BMW’s chief competitors are entering the market but adopting electric drivetrains for vehicles initially designed for conventional gasoline or diesel engines.
Mercedes-Benz started rolling out its new generation of the Smart ForTwo Electric Drive in May and will launch its B-class Electric Drive in the U.S. market in early 2014. The B-class is a five-door compact and will use a lithium ion battery from Tesla.
Audi has ditched plans to make electric versions of its two-seat R8 supercar and the subcompact A1 hatchback.
Because the i3 was designed solely as an electric car, BMW cites “numerous advantages over conversion vehicles in which the original combustion engine is swapped for an electric motor.”
The i3′s standard navigation system can monitor traffic and set up a route to avoid major congestion. It also remembers the owner’s driving style and can determine if there is enough charge left to drive a selected route, BMW said.
Life, drive modules
One of the key advantages is that the i3 doesn’t compromise interior space, BMW said.
The i3 architecture has two modules which BMW calls the “life module” and the “drive module.”
The life module is the passenger cabin made of carbon fiber reinforced plastic that is as strong as steel but 50 percent lighter — and even 30 percent lighter than aluminum, the company said.
The high tensile strength of the carbon fiber gives added protection to the passenger cell. But according to BMW that also means it could use a smaller and lighter lithium-ion battery that requires less charging time and increases range.
Although the interior has more environmentally sound materials, it has the “same premium feel,” of the mid-sized 5-series sedan, BMW said. About 25 percent of the plastics in the interior and the thermoplastics used for the exterior come from recycled or renewable sources, the company said.
The drive module is made from aluminum. The lithium ion battery is mounted in the underbody section of the car. BMW said this area absorbs the least energy in the event of a crash “and the vehicle shows barely any deformation here as a result.”
Placing the battery in the underbody also gives the i3 a lower center of gravity, adds to its agility and makes rollover unlikely, BMW said.
In the event of a crash, when passenger restraint systems are triggered, the battery is disconnected from the high-voltage system and the connected components are discharged. The safety feature prevents the possibility of a short circuit which could lead to electric shocks or cause a fire.
0-60 in 7 seconds
The i3 has a top speed of 93 mph. BMW said the 110-lb. electric motor generates 170 hp and peak torque of 184 lb-ft. The BMW i3 goes from 0 to 35 mph in about 3.5 seconds and 0 to 60 mph in about 7 seconds, the company says.
BMW said it built a recuperative mode into the vehicle that is activated when a driver lifts his foot from the accelerator. The electric motor goes from driving to generating power for the lithium ion battery.
The car can even coast at high speeds.
The i3 will have a range of 80-100 miles that can be increased 12 percent by putting the car into an “Eco Pro” mode and another 12 percent in “Eco Pro+” mode.
The optional range-extender is a two-cylinder 650cc gasoline engine with 34 hp that’s mounted adjacent to the electric motor above the rear axle.
The range extender increases the car’s driving range to 160-180 miles. It does not directly drive the rear wheels. The range extender adds 330 pounds to the i3′s curb weight and has a fuel tank with a capacity of 2.4 gallons.
The i3 has a turning circle of 32.3 feet, making it easier to maneuver in an urban setting, a 50/50 weight distribution which is considered optimal in performance cars, and electric power steering.
BMW CEO Norbert Reithofer: “What the mobile phone did for communication, electric mobility will do for individual mobility.”
Photo credit: REUTERS
The rear-drive powertrain came from the BMW ActiveE, which has been undergoing trials in the United States since last year. BMW has leased 700 ActiveE models, which are based on the 1-series coupe, in New Jersey, New York, Connecticut, Boston and three California cities. The ActiveE two-year leases expire in 2014.
Before the ActiveE, Mini conducted a trial with 450 electric Mini Coopers in 2010 and 2011.
The i3′s standard navigation system can monitor traffic and set up a route to avoid major congestion. It also remembers the owner’s driving style and can determine if there is enough charge left to drive a selected route, BMW said.
3 trim levels
BMW said today it will offer the i3 in three different trim levels: Mega World, Giga World and Tera World. Pricing was not disclosed.
The base Mega World has standard 19-inch forged aluminum wheels, navigation, BMW’s ConnectedDrive infotainment system, the eCall collision notification system, an alarm, a 7.4 kW on board charger and LED headlights and tail lights. The cloth interior is made from recycled materials.
The Giga World package adds upgraded wheels, a leather wrapped steering wheeling and wool cloth. It has a garage door opener, sunroof and satellite radio.
The range-topping Tera World also adds a leather interior, ConnectedDrive and other driver assistance systems as standard.
The Driving Assistant Plus safety system is optional. It has a Collision Warning system that primes the brakes and can stop the car at speeds up to 35 mph to help avoid an accident. The package includes active cruise control and a stop and start feature.
The parking assistant feature is also optional.
Bloomberg contributed to this report.
Transporting goods by sea remains the most common way to trade globally, but in Africa cargo spends an abnormally long time in ports before it is moved inland, presenting a serious obstacle to the successful integration of sub-Saharan economies in worldwide trade networks. The port of Durban, however, has managed to buck the trend.
A World Bank study, titled Why does cargo spend weeks in sub-Saharan African ports? Lessons from six countries1, found the average cargo waiting time to be 20 days and that more than half of the time needed to transport cargo from ports to hinterland cities in landlocked countries in sub-Saharan Africa is wasted because of the time it spent in ports.
The average cargo dwell time in Durban is four days, which is on a par with ports in East Asia and Europe.
The African Development Bank s definition of dwell time is the time cargo remains in a terminal s in-transit storage areas while awaiting shipment for export or onward transportation by road or rail for import.
Dwell time is one indicator of a port s efficiency: the higher the dwell time, the lower the efficiency. And longer dwell times have an adverse effect on economic growth.
Long transport times reduce trade
A 2012 working paper produced by the National Bureau of Economic Research, titled Time as a trade barrier2, concluded that longer transport times dramatically reduce trade and estimates that each day in transit is worth 0.6% to 2% of the value of the goods.
Long transit delays also significantly lower the probability that a country will successfully export its goods.
Africa s estimated infrastructure deficit of $48-billion a year is often singled out as the culprit for hampering trade in and around the continent, but reasons for bottlenecks are far more complex and a lot more challenging to resolve.
Shantayanan Devarajan, the World Bank s chief economist for the Africa region, says that long dwell times are in the interest of certain players in the system and that dealing with the proximate cause of the problem, such as the apparent lack of berths in African ports, is unlikely to trigger a solution.
Specifically, importers use the ports to store their goods; in Douala Cameroon, for instance, storage in the port is the cheapest option for up to 22 days, Devarajan wrote in the foreword of the World Bank study.
Customs brokers, meanwhile, have little incentive to move the goods because they can pass on the costs of delay to the importers. Worse still, when the domestic market is a monopoly, the downstream producer has an incentive to keep the cargo dwell times long as a way of deterring entry of other producers.
The evidence in the study shows that discretionary behaviours increase system inefficiencies and raise total logistics costs.
In most ports in sub-Saharan Africa, the interests of controlling agencies, port authorities, private terminal operators, logistics operators (freight forwarders) and large shippers collude at the expense of consumers, the report said.
Surveys demonstrate that low logistics skills and cash constraints explain why most importers have no incentive to reduce cargo dwell time as, in most cases, doing so would increase their input costs.
Moreover, some terminal operators generate large revenues from storage, and customs brokers do not necessarily fight to reduce dwell time because time inefficiency is charged to the importer and eventually to the consumer.
Durban port is considered a good benchmark for sub-Saharan ports. Its average four-day waiting period for import and export cargo is much closer to best practice in East Asia and Europe, which is a three- or four-day waiting period.
South Africa s commercial ports have been placed firmly in the hands of the state through Transnet. With the exception of these ports and Mombasa in Kenya, all other ports surveyed in the study are run by private container terminal operators.
Lessons from the Durban port
The demand at South African ports surpasses all countries in East and Southern Africa and has a critical role to play in the international trade landscape for the region, according to a 2011 World Bank working paper.
It said Durban port could teach sub-Saharan African ports a few lessons namely that the onus was on public sector players such as customs and the ports authorities to put pressure on the private sector of port users to comply and reduce cargo dwell times.
Prohibitive charges for storage, coupled with strict enforcement and the possibility to preclear with customs with advantages attached to it and service level agreements binding both parties are critical tools for the reduction of cargo dwell time, the paper said.
In the late 1990s, Durban port was notoriously inefficient with high levels of congestion, characterised by long berthing delays for container vessels, long train turnaround times in the port and long queues for road trucks, which resulted in dwell times of six to seven days on average.
But in 1998, the paper said, shipping lines lost their patience and introduced a vessel delay surcharge.
This was a wake-up call for Transnet Port Terminals and the National Port Authority. A committee was created involving the port stakeholders with a defined strategy and several measures, which seem to have had the most important impacts.
Major stakeholders acknowledge that the introduction of the punitive storage charge after day three is probably the most important single factor affecting dwell time at Durban port, the working paper said.
This means that, after 72 hours, containers incur heavy storage charges. The result is that storage charges in Durban are almost six times as high as other ports in the country.
But investment in infrastructure has certainly also helped the process. At the time when Durban adopted its port liberalisation policy, South Africa s trade infrastructure was ageing and had been neglected for many years, and most of the country s ports were not performing well.
From 2002, Transnet invested more than $700-million in ports over a five-year period, focusing on creating capacity and equipment. An average dwell time for cargo of four days at Durban port has been achieved and maintained since 2006.
More investment is also on the way. Just last month, Minister of Public Enterprises Malusi Gigaba unveiled Transnet s seven new state-of-the-art ship-to-shore cranes at the Durban Container Terminal as the company surges ahead in its drive to boost productivity and efficiency in arguably the southern hemisphere s biggest and busiest port.
The cranes are part of Transnet s rolling R300-billion seven-year investment programme the market demand strategy , the state-owned enterprise said.
Over the next 20 years, Transnet Port Terminals, which currently operates 45 cranes in seven ports across the country, will buy 39 new ship-to-shore cranes.
While Durban may remain top dog when it comes to the continent s ports, improvements elsewhere will undoubtedly have positive spin-offs for South Africa.
Ga l Raballand, World Bank senior economist and co-author of the cargo dwell-time study, told the Mail & Guardian that reducing dwell time could possibly increase competition in Sub-Saharan Africa.
But, he added, what matters in transport are economies of scale and, therefore, there is somehow a first- mover advantage the biggest economy is likely to attract more flows, which are going to lead to reduced transport costs, which will reinforce its position. South Africa is the gateway because it is also the largest economy.
- ^ Why does cargo spend weeks in sub-Saharan African ports? Lessons from six countries (econ.worldbank.org)
- ^ Time as a trade barrier (www.nber.org)
- ^ http://mg.co.za/article/2013-06-14-00-durban-port-leads-way-for-african-trade (mg.co.za)
published: 2013-06-07 17:12:09
If there’s one thing History’s Ice Road Truckers1 has taught us, it’s that trucking ain’t easy. And in frigid climates, it’s especially dangerous. The History Channel has had success with an unscripted series about the trucking industry, and now it looks like Showtime may be giving the topic a whirl with a new drama in development.
Better known and celebrated (presently) for his poetry, Tony Tost2 has already made the transition from poetry to TV writing with a few episodes of Longmire. And today, Deadline3 reports that he’s developing a drama for Showtime4 called Heartland Trucking. The project would be a scripted look at the world of truckers in middle America, centering on a family run business that serves truckers along with its own criminal agenda.
I’ve often wondered what it was like to be a trucker. I blame Over the Top for my interest in the subject (as well as my curiosity about the world of competitive arm-wrestling). There’s so much traveling involved, so much time spent on the highways and managing that huge vehicle on the road, moving things from A to B. Stopping at rest stops. Spending time away from home. There’s potential for a drama in that kind of lifestyle, though it sounds like Tost’s project focuses on a family run business, so it’s unclear how much of the show would take place on the road. Either way, the concept seems interesting. We’ll have to wait and see if this one moves forward, and if so, who’s cast in the lead.
In addition to Tost’s involvement, the project is being developed by Television 360 (Game of Thrones) and Fox 21.