CONTRACTUAL LOGISTICS
– SOUTH AFRICA

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Unitrans Supply Chain Solution (‘Unitrans’) is a black-empowered transportation and logistics company with diversified operations in many sectors of the South African economy.

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CONTRACTUAL LOGISTICS
– SOUTH AFRICA

logistics-sa-icons-white-01

Unitrans Supply Chain Solution (‘Unitrans’) is a black-empowered transportation and logistics company with diversified operations in many sectors of the South African economy.

contractual-stats-01
contractual-stats-02
contractual-stats-03

 

 

2020 HIGHLIGHTS

Unitrans Centralised Control Tower (‘UCT’) established to monitor the efficient and safe movement of vehicles utilising various integrated technologies Watch

±2 500 vehicles managed by the UCT facility

Number of accidents and incidents decreased by 8%

R26 million spent on training with the focus on driver training

contract-logistics-map2-01

2020 HIGHLIGHTS

Unitrans Centralised Control Tower (‘UCT’) established to monitor the efficient and safe movement of vehicles utilising various integrated technologies Watch

±2 500 vehicles managed by the UCT facility

Number of accidents and incidents decreased by 8%

R26 million spent on training with the focus on driver training

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Distracted driving
45%
improvement

LOOKING AHEAD

Continue striving towards zero harm for our drivers and third-party road users

Actively pursue new opportunities and expand existing operations, with a healthy pipeline of new projects with reasonable prospects of success

Implementation of a rolling five-year capital expenditure plan to remain abreast of changes in technology and to ensure the reliability of environmentally sustainable vehicles

Driver awareness
42%
improvement
Fundamental driving
32%
improvement
Traffic violations
45%
improvement
Driver awareness
42%
improvement
Distracted driving
45%
improvement
Fundamental driving
32%
improvement
Traffic violations
45%
improvement

LOOKING AHEAD

Continue striving towards zero harm for our drivers and third-party road users

Actively pursue new opportunities and expand existing operations, with a healthy pipeline of new projects with reasonable prospects of success

Implementation of a rolling five-year capital expenditure plan to remain abreast of changes in technology and to ensure the reliability of environmentally sustainable vehicles

‘Our purpose is to provide safe, efficient and costeffective logistics solutions to our customers, thereby adding value to their supply chains.’

– Terry Bantock

‘Our purpose is to provide safe, efficient and costeffective logistics solutions to our customers, thereby adding value to their supply chains.’

– Terry Bantock

Terry Bantock, CEO | Contractual Logistics – South Africa

Terry completed a business science honours degree at the University of Cape Town in 1987. Thereafter he commenced his career in the supply chain and transport industry, including 15 years with the Imperial Group and 11 years in senior roles with Brait and Buildmax Limited. Terry joined Unitrans as chief operating officer in March 2017, and in December 2018 he was appointed chief executive officer of Unitrans Supply Chain Solutions.

Following a successful restructure, the leadership team has invested significant time in changing the culture of the company in order to become more agile in a dynamic and competitive market.

Our customers have expectations that go beyond the provision of ‘vanilla’ road transportation and warehousing services. Unitrans has developed a solid track record of meeting this customer requirement by using information and systems to provide value-adding services, both internally and to our customers.

Technology drives operational efficiencies

Over the past 48 months, we established a Unitrans Control Tower (‘UCT’) to monitor the efficient and safe movement of vehicles through various integrated technologies in partnership with leading technology and IP service providers. Approximately 2 500 vehicles are managed using this facility.

The facility tracks vehicles against defined route plans and manages their performance through live exception-based reporting. Monitoring our vehicles assists in mitigating the risk of goods-in-transit theft and hijackings, ensures load integrity, and contributes to increase operational efficiencies and utilisation.

The centralised management of exceptions allows for rapid resolution of on-road operational issues. Focus has been improved on task execution management through visibility and driver behaviour management. This has not only improved driver performance, but also increased operational fleet utilisation. The track and trace functionality of the system, which monitors adherence to road and contract regulations, has assisted in providing our customers with a safe and reliable service.

The integration of the UCT into customers’ supply chain receiving and dispatch points, as well as improving supply chain management through visibility and information availability, is a premium value-adding service that we offer our customers.

The management of and the measurement against these critical success factors does not only have a direct impact on the bottom line of the business, but also serves as a great contributor to reduced CO2 emissions – in support of a more sustainable and environmentally friendly fleet.

Our focus on road safety

Road safety is an ongoing challenge, particularly in the context of South Africa’s poor road safety record. According to the World Health Organisation (‘WHO’), South African road fatalities per 100 000 people are 2.1 times higher than the global average.

We are striving towards zero harm for our drivers and third-party road users. The UCT uses leading in-vehicle cab systems to monitor driver behaviour and fatigue. The vehicles are monitored for speeding, driving hours and route adherence to the journey management plan on a real-time basis. Potential accidents are responded to immediately through impact alerts and panic alarms.

This has reduced traffic violations and distracted driving behaviours which could lead to potential accidents. The number of accidents and incidents decreased by 8% year on year. Drivers consistently receive refresher training. During FY20, R26 million was spent on training with a significant focus on driver training.

Revenue growth

A restructured Unitrans has focused significantly on business development and has enjoyed solid growth in renewed and new contracts. Annualised revenue of renewed contracts was R205 million and annualised revenues for new business acquired was R400 million. Contracts lost equated to approximately R64 million, resulting in a net gain in market share in excess of R300 million. We actively pursue new opportunities and the expansion of existing operations, and have a healthy pipeline of additional new projects with reasonable prospects of success.

New vehicles enhance the fleet profile

We have implemented a rolling five-year capital expenditure plan to remain abreast of changes in technology and to ensure the reliability of environmentally sustainable vehicles.

Vehicle and asset finance is used to finance newly acquired vehicles over a period which generally matches the associated customer contract. We have entered strategic alliances with original equipment manufacturers (‘OEMs’) in order to maintain the vehicles. Most OEMs provide ‘trade back guarantees’ in order to guarantee the minimum value of vehicles on disposal. Trailer maintenance is performed using internal resources, and Unitrans assumes the residual value risk on trailers.

This finance and maintenance model, combined with the operational efficiencies of new vehicles, creates a vehicle fleet that ensures we remain competitive and positions the division for growth.

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