Logistics & Transport News South Africa

Taxes put pressure on road freight industry

Consistent pressure from numerous forms of taxes render the road freight industry verging on uneconomical.
Taxes put pressure on road freight industry
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This is according to Heinrich Schaefer, CEO of HFR Transport, an independent refrigerated transporter. These taxes include cross-border taxes, e-tolls, inspection fees and vehicle licensing fees. With more taxes on the cards, such as the carbon tax now postponed to 2016, transportation companies must operate 'lean and mean'.

A key focus on financial stability for this industry means maintaining highly efficient operations that avoid time and cost wastage, so clients can benefit from optimised rates. For refrigerated fleets carrying foodstuffs and temperature controlled or sensitive products, the emphasis on time efficiency is even greater.

"The drive for improved efficiencies is literally never-ending in this industry. As we are constantly faced with an increasingly competitive market and more pressure on our margins from taxes and legal requirements, the need for strategic solutions grows. Technology plays an important role here," Schaefer says.

Communication is critical

Clear communication lines between drivers and depots are critical for customer service. "We are committed to providing our customers with the best on time service delivery, ensuring compliance to transport legislation, responsible business practice and conformance to all safety measures," Schaefer continues.

Assisting HFR Transport in meeting these standards is its partnership with Tracker Business, leading tracking and fleet management solutions company. According to Schaefer, the flexibility that Tracker is able to deliver means the solution meets their needs head on in terms of integration and their specific fitment needs.

Being able to track and trace vehicles using real-time information enables fleet managers to effectively plan fuel stops and necessary maintenance intervals. Navigation enables more deliveries to be made in less time and the speed and mileage of these jobs is also monitored so valuable opportunities for saving money can be identified.

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