Challenged by a lack of capacity and rising prices, air cargo stakeholders are adapting to the new normal in a bid to keep supply chains operational and economies running.
This is according to industry stakeholders who were participating in a webinar on the state of Africa’s air cargo sector amid the COVID-19 pandemic. The webinar, hosted by Messe Muenchen South Africa, the organisers of air cargo Africa Exhibition and Conference assessed the role and challenges of the air cargo sector as restrictions on movement play havoc with operations at airports, airlines, freight forwarders and supply chains.
With many countries on lockdown or restricting movement, cargo capacity has been slashed, creating a challenge for a sector seeking to fulfil its critical role in transporting essential medical supplies and keep import and export goods moving. Panellists in the webinar said stakeholders had to adapt to the new normal, as restrictions would likely continue for months to come. “The current situation requires agility and innovation,” noted Moderator Reji John of STAT Media Group.
Fitsum Abadi, Managing Director of Ethiopian Cargo & Logistics said the airline had adapted quickly, pivoting to a cargo-only carrier and converting many of its passenger airlines to carry cargo. “I never expected to see cargo reclining on seats, but this is in fact what happened at first. We have now adapted by removing the seats of several passenger aircraft to repurpose them for freight, as well as optimising capacity, making Addis Ababa and Lome key regional hubs, and deploying narrow body aircraft to serve regional routes to meet demand.”
Stakeholders reported an increase of chartered flights carrying repatriated citizens, medical supplies or humanitarian aid, which often arrived with little notice. Due to a lack of capacity, costs on scheduled cargo flights, was challenging for producers of perishables for export – such as flowers.
Fabio Weiss, VP, Head of Air Freight Middle East & Africa at DHL Global Forwarding MEA said stakeholders were working together to adapt to the changed environment. “Capacity has declined, but demand is still there. There has been an imbalance of volumes coming into Africa that allow exports going out, and we need to get the mix right for the necessary yields and revenues. The current situation is not sustainable for anyone in the long term. However, we have been working with airports, airlines and customers to find solutions that work for everyone.”
“We are trying to adapt to the new normal as fast as possible,” said Max Conrady, Senior Vice President Cargo at Fraport AG. “We were used to stable, fixed flight plans, and the changes we are experiencing, with many chartered flights, have demanded flexibility from airports, cargo handlers and supply chains. The many operational issues to be solved have demanded a new type of agility. But we are adapting to the new kind of normal, establishing contingency groups within our community to address congestion,” he said.
Nina Engelbrecht-Malherbe, Senior Specialist Cargo at Airports Company South Africa, noted that airports served as a point of regional integration for people and products to connect to the globe. “Airports play an important role in underpinning the economy, getting products to markets, and bringing in essential supplies. We need to be agile, work together with industry stakeholders, understand customers and demands, and link them to the routes they need. We need to work together to help get people back to work. We need to come together as a community to do the best we can; but it is also important that the authorities keep citizens safe without restricting growth and development.”
“It is an unprecedented situation, which demands innovation and cooperation,” said Suzette Scheepers, CEO of Messe Muenchen South Africa. “Fortunately, as we have seen at air cargo Africa shows, this sector is one that can be agile and cooperative, so we are optimistic stakeholders will be able to work together to get imports and exports back on track and support the timeout distribution of medical supplies and humanitarian aid.”
Plentywaka and GUO Transport Partner To Further Expand Bus Travel Offerings And New Routes
Plentywaka, Nigeria’s leading transportation technology company and GUO Transport Services Limited one of Nigeria’s largest transportation companies, with specialization in the interstate traveling industry, have today announced a partnership to further simplify the bus booking travel experience for Nigerians. This partnership would see both companies combine technology, and marketing, to bring transport into one simple product, the Plentywaka mobile app.
Founded in 1980, GUO Transport Services Limited is a division of G. U. Okeke & Sons Ltd. A household name in the transportation industry and one of the largest providers of intercity and interstate transportation, serving more than 200 destinations across Nigeria and West Africa with a modern, environmentally friendly fleet. The company has become an icon in the transportation industry, providing safe, enjoyable and affordable travel to millions of passengers annually.
Plentywaka has in the last 20 months, completed over 350,000 rides and recently launched its interstate travel service called travelwaka, which provides affordable tickets from major bus travel companies such as GUO Transport Services Limited and other transport companies. Plentywaka creates ease of ticket purchase for travel commuters across the country and it’s travelwaka service offers commuters the luxury of booking bus trips directly on the Plentywaka mobile app, while also giving its users comparison options from a wide range of travel companies in a single search. This enables users the opportunity to plan their entire journey without having to leave the comfort of their homes or stand in long queues.
In light of this partnership, GUO Transport Services Limited and Plentywaka will be providing millions of bus commuters access to explore different states across Nigeria through the Plentywaka app. GUO Transport Services Limited will onboard over 600 vehicles to boost Plentywaka’s fleet size to 820+ vehicles. This will also mean major routes like Lagos – Abuja and 200 more destinations will now be open up on the Plentywaka App for customers to book them at affordable rates.
“The partnership with GUO Transport Services Limited is great for our users especially because we know a lot of them have been looking for routes that GUO operates on. We are very excited to have developed the technology behind an easy-to-use mobile app that will make the travel experience seamless for Nigerians.” said Onyeka Akumah, Co-Founder and CEO of Plentywaka
“We are excited about this partnership with PlentyWaka because their values and offerings align closely with ours. We can now move more people from across Nigeria conveniently and without hassle. We believe that every single traveler deserves easy and comfortable rides to and from their destinations. Considering how much PlentyWaka has contributed to this, we are glad to get on board with them.” says Kene Okeke who is the Director Of Operations for GUO Transport Services Limited
Starting from today, commuters can now use the Plentywaka mobile app to either book their daily rides using the bus service or book and buy bus travel tickets from the comfort of their homes, cutting off long queues and bag rustling. Even more, the long weekend is here and you can book GUO bus tickets to states within Nigeria and enjoy a 5-10% discount.
Plentywaka will continue to sign leading bus operators in Nigeria as we aim to become the largest aggregator of bus operators in the country providing a better way to manage and monitor their bookings and customers.
Meet Riaan Rautenbach Changing the Future of moving Cargo, using Cloud-Based and Machine Learning Technology
Riaan Rautenbach, Founder & CEO at LIVE FR8™ (Source: Riaan Rautenbach)
Riaan Rautenbach is an entrepreneur, founder and CEO of South Africa based tech startup LIVE FR8™. A disruptive game changing cloud based App that gives solutions to existing problems in the transport and logistics industry. In this interview with Alaba Ayinuola, Riaan shares his entrepreneurship journey, challenges, impacts and successes of the App. Excerpts.
Alaba: Could you us briefly tell me about LIVE FR8™ and the problems it’s solving?
Riaan: LIVE FR8™ is a South African start-up that offers Cargo Suppliers and Transporters improved low cost logistics services using Cloud Technology. The App can be used on any Smart Device. Cargo Suppliers add loads and Transporters find loads on the App. Cargo Suppliers and Transporters connect using the Cloud. Cargo Supplier lists the loads by weight, category, source address and destination, on the database. The algorithm helps Transporters to search for specific loads in the specified area, thereby turning empty loads into full loads. The Transporter nominates the price to move the cargo to the destination. The Transporter only pays a small fee to LIVE FR8™ once a load has been obtained successfully. The Supplier and the Transporter transact directly with one another, and rate each other. The continuous rating system will remove dishonest, corrupt, non-performing and non-competitive role players. Transparency will drive improved performance and cost effective logistics operations.
Alaba: Why did you start your business?
Riaan: After 30 years’ hard work and experience in transportation of goods by road, sourcing return loads, making deliveries on time, determining whereabouts of Cargo in transit in 5 African countries, I came up with this idea. With my experience in cost accounting, as a marketing manager, financial manager and general manager, I have identified problems in the transport industry. I have spent a lot of time thinking of and finding a solution. I developed an App that addresses the various problems and challenges in the Transport industry: improved communication; finding Cargo geographically in real-time; monitoring and managing dispatch staff, controllers, drivers and Cargo in transit. Reducing communication costs; no expensive programs; no costly servers; no monthly fees; no broker fees; no bidding platform but a closed quotation system. Reducing empty trip costs that results in expensive transport rates, reducing transport pollution and a rating system indicating the performance of Cargo Suppliers and Transporters.
Alaba: What has been the impact of leveraging technology in running your business?
Riaan: The business runs remotely, from any location with internet access. The business model has immense scalability and flexibility. Within 7 months, the App was active in 57 countries. Overhead costs are drastically reduced due to the technology LIVE FR8 App utilises, with no offices or expensive servers required. Technology is the future and using disruptive fourth industrial revolution technology which is Cloud-native and functional is exciting and will lead to transformation of the transport industry.
Alaba: What is one of the biggest lessons you have learnt on your business journey?
Riaan: We have learnt that our product, as a world first “Cloud Technology” App for Logistics is more difficult than expected to market in an existing resistant market. Training is an essential part of our marketing.
Alaba: Kindly share of the impact and success of the App?
Riaan: LIVE FR8™ empowers entrepreneurs in Africa and is available in 19 African countries. It levels the playing field for smaller Transporters anywhere in Africa, lowers operational costs for established businesses and empowers them to compete on equal footing. It transforms anyone with access to an electronic device, into a logistics manager. The App brings a huge competitive advantage to everyone who uses the App. It also empowers isolated communities in Africa to put food on the table by coordinating their logistics on their mobile phones. Though there have been many challenges I believe we will soon make a breakthrough in the market and more people will comprehend how much they can benefit from using the App to improve logistics processes, reduce costs, increase vehicle utilisation and drastically reduce pollution from carbon emissions.
Alaba: What’s the future for LIVE FR8 in terms of its expansion to other African and International markets?
Riaan: Africa: LIVE FR8 will be available in all African countries by July 2021. LIVE FR8 is currently available in 19 African countries: Angola, Botswana, Burundi, Democratic Republic of Congo, Eswatini, Kenya, Lesotho, Madagascar, Malawi, Mauritius (Including Reunion), Mozambique, Namibia, Nigeria, Rwanda, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.
International; LIVE FR8 is available in the following countries outside Africa; America, Australia, All European Union countries, India, New Zealand, Pakistan, Turkey, Canada, The United Kingdom.
Alaba: Could you share your thoughts on the current state of Logistics in Africa, and where you see it in five years?
Riaan: Logistics face many challenges in Africa such as: Inadequate communication; Border congestions; inadequate road and rail infrastructure; old technologies; trade relations between countries. In five years most of the above, I believe, will be improved by Africa. I am positive, because there are already projects, led by African governments, authorities, entrepreneurs and private sectors to improve all of the above mentioned challenges. LIVE FR8 can play a vital role with its low cost communication between Cargo Suppliers and Transporters. Loads are exposed for free to Transporters, and Transporters can find loads with a geographic search using little data.
Alaba: How can South Africa support small businesses now and beyond?
Riaan: Smaller businesses help to create and sustain jobs. Support is vital to help businesses gain revenue and stay operational. Small-business owners value relationships they have with their customers and need the support of local consumers. As it may be more of a challenge for small businesses to stay relevant, they continuously need to work on adding new products/developing their products and providing new benefits for their customers. This is good as it generates healthy competition with their larger competitors. Small businesses tend to be more innovative as they constantly need to find new ways to sell goods and service. By supporting small businesses you are also supporting your local community to stimulate the economy.
Alaba: Any advice for young African entrepreneurs in tech and logistics?
Riaan: All young African entrepreneurs must believe in themselves and never give up. You can find solutions, keep asking questions about current affairs, search and find answers on how current affairs can be improved. Believe in Africa with all its valuable resources. All economic activities can be improved by young entrepreneurs who seek and find solutions using technology to improve supply chains, transport, more efficient low cost ways of communication and moving goods to people, factories, markets and harbours for export. Africa is the future!
B I O G R A P H Y
Riaan Rautenbach started working as a clerk, then became a learner coder, thereafter I was an Accountant. I then started part time studies at Unisa while working. I was later promoted to Financial Manager and for 4 years I was a Sales and Marketing Manager. I worked as a General Manager in Maize and Wheat Mills and a Poly woven bag factory. I lived and worked in five African Countries: Botswana, Nigeria, South Africa, Swaziland and Zambia. I traded with Angola, DRC, Zimbabwe, Mozambique and Malawi.
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Digitalization in logistics – A user’s experience
Geraldine Mamburu, Founder & MD PDQ Logistics (Source: Geraldine Mamburu)
In some cultures, children are sometimes named after events that would have taken place close to or during their birth. Jokes around naming children Quarantine Buthelezi, Social-distance Moyo, or Pandemic Ndlovu, were circulating in 2020 and made for a good laugh, however, one couple in India took this a little too seriously and named their twin boy and girl, Corona and Covid.
Looking back, I do not recall ever coming across a proposal to name children after any of the variations around the word digital, after all, every second Point of View that was being released was around digitalization and digital transformation. It got me thinking, and realised that a lot of these terminologies are thrown about in the corporate space, but what does this actually mean to the end-user? How does the user interact, make use of, and appreciate digitalization?
Being in the logistics space has found me interacting with a lot more digital platforms over and above e-commerce, social media, and the all-so-dreaded-virtual-meeting platforms. My favourite most convenient app (which is currently the best thing ever since sliced bread in my books) has got to be Truck Fuel Net (TFN). TFN offers a cloud-based, real-time software management solution that helps me manage all my on-road refuelling and driver spend needs. Given that the bulk of operational costs in road freight is fuel, one must have their finger on the pulse and be on the constant lookout for the best price, over and above monitoring driver efficiency. The TFN Management system helps me decide, where, when, and how much the driver can refuel.
Sidebar – I’ve been driving a Ford Kuga 1.6 AWD for a few years (NB: No fire starter jokes allowed) and for such a small engine, that car can chow fuel – I’m talking 11 – 12km/100! I never used to fill up because it was painful watching all that money go down the drain. When I filled up the truck for the first-time round, let’s just say I needed to sit down because I felt a little dizzy.
Every day, we transport goods worth millions of Rands. It goes without saying that the safety and security of the driver, the goods we carry, as well as the trucks themselves, is of paramount importance. TFN’s solutions enable us to run a cashless operation. In the road freight sector, cargo, equipment, and increasingly drivers, are all targets for criminals and if we can take one incentive out of the equation, the better off we are.
Whilst on cashless operations, I would like to give SANRAL a standing ovation. Now, now, before your eyes roll all the way to the back of your head, let me just say that we might have qualms as “Gautengers” about how they went about the e-toll saga, but their app is such a lifesaver! With an e-tag fitted on the vehicle, I can manage my account quickly and securely. The app works in real-time, allowing me to be kept informed of my spend on vehicles. And lo and behold when I do forget to top up (because …you know …admin), I immediately get a notification the moment my funds are depleted, allowing me to top up immediately whilst the truck is still on route, contributing to a seamless operation. Well done SANRAL. Sometimes the government does get it right …sometimes.
The South African logistics sector contributes about 12% towards the GDP, according to Stellenbosch University and the World Bank. Of that percentage, approximately ¾ is attributed to road freight alone. With such modestly generous figures, it’s encouraging to see various organisations come up with digitally inspired solutions to cater to this industry.
This brings me to my most used platforms, Car Track and Tracker. I can only assume that before the advancement in technology, one must have had to have a great deal of faith, composure, and trust. Not to say that we no longer require these skills, but the ability to log onto these apps and be able to get real-time updates on the exact location of a customer’s goods in transit certainly prevents a blood vessel or two from popping (in the event that you cannot reach the driver.) As for Google Maps, it goes without saying, that this is the backbone of my interaction with these tracking platforms.
There are a bunch of other digital platforms such as Linebooker that I am still to explore as the business continues to grow. However, it’s been interesting to know that before we start thinking self-driven trucks (think of that one scene from Terminator, were the machine is operating the truck…but I digress) and other seemingly complex technological advancements aimed at this industry, there are still digital channels that make the day to day operations in logistics that much easier.
What other digital platforms are you using or have you heard off that have made a world of a difference in the logistics space?
Article by: Geraldine Mamburu, Founder & MD PDQ Logistics