Garth Bolton Cargo Carriers The Impact of Toll Roads and The Effectiveness of the SA Supply Chains

ADDRESS BY GARTH BOLTON TO FUTURE FUEL DISTRIBUTION STRATEGIES 3-11-11

BETTER UNDERSTANDING OF COMPETITIVE ENVIRONMENT
CORRECT COMMONLY HELD MISSPERCEPTIONS
APPROPRIATE MODE FOR FREIGHT
WHATS BEST FOR SOUTH AFRICA
APPROPRIATE FUNDING ROAD Vs RAIL

Cheapest car running cost.
Kia Picanto R1:49/km
Hyundi Atos R1:55/km
Ave Sedan R3:50/km
Lux 4x4 R9: 00/km
Truck R14:00/km

5000 0.55c
10000 R1.10 60km/hr=1km/min
20000 R2.20
30000 R3.30 Based on 150 hrs/Month
40000 R4.30 =9000mins/Month
50000 R5.50
Should be considered in evaluating congestion
Is considered when selecting transport mode

Freeway built to 15000veh/hr reduced to 7000veh/hr (100km/hr vs. 30km/hr)
You destroy half the value of the freeway
Just when you need it the most

M 1 150 000 passes/day
X 17.75c/km
X 300 days
X 100 kms
=R789 750 000/yr
@12% yield would allow investment
Of R6.65 Bill
It cost R66.5m/km to build
Roads with less passes are cheaper
This excludes tolls

Certain Rail and Bus Public Transport Subsidised to the Extent of 50%
Taxi’s Not Subsidised Excepting Recapitalisation R50000
Gautrain If 120 000 Pac’s per day X 300days divided into Interest of 9% of R30B being R2.7B, amounts to R75/ticket for interest alone
Why subsidise when people prepared to use other modes. (another M1)

Petrol Diesel
Sales Million Liters 11313 9119
Fuel Levy c/l 177.5 162.5
Fuel Levy Collection R20.1B R14.8B
Tot R34.9B
Road Allocation by Govt. R29B
Diesel Pays For 42% of Roads yet Occupies
Only 20% of The Space

Steel Coil 50t/day 20 Days = 1000t/month
Road Rail
Rate R80/t R40/t
Ave Stock 500t 2000t
Steel R4000/t
Cost Capital 20%
Transport R960k R480k
Stock hold cost R480k R1600k
Total R1440k R2080k

PAVED LENGTH % POOR RM M/KM
SANRAL 16290 11.7 1932 R15468 8
PROV 48179 22.8 10980 R87840 8
METRO 51626 4.1 2127 R10635 5
MUNI 37651 3.2 1363 R 4089 3
GRAVEL
PROV 136628 50.6 69216 R13843 .2
METRO 13880 8.8 1227 R 245 .2
MUNI 302189 28.5 86245 R17249 .2
TOTAL 606443 R149357

LAND EXPOPRIATION
DESIGN & PLANNING
LEVELING GRADIENTS
BRIDGES
VERGES
FENCING
WATER CONTROL
PAVEMENT
TRUCKS ONLY REQIRE INCREASE IN PAVEMENT AND BRIDGE SPECIFICATION

Cars Taxi’s Busses 75%
Road Freight 19%
Road 94%
Rail Freight 6%
Investment Share Road 15 X Rail
Chinees Walls Rail Not Govt. Investment

Delayed maintenance causes its costs to increase by 600-1800%
Can you allow this when you can borrow at 10%
Need to grow all parts of the economy equally and not let any part deteriorate .

Cars 120000 @.40c =R48000/day
Med Trucks 15000 @R1.00 =R15000/day
Heavy Trucks 15000 @R2.00 =R30000/day
=R93000/day
X 300day X 185kms =R5.161m/year
- 10% for Maintenance =R.516m
=R4.644m
@12% yield Allows Investment =R38.7B

BALANCE ENFORCEMENT SELF REGULATION
OVERLOADING HIGHLY LUCRATIVE 10% PROFIT 135%
ENFORCEMENT SELF FUNDING. FINES PAY FOR IT
LACK OF ENFORCEMENT UNSCRUPULOUS FLOURISH , COMPLIANT WITHER AND DIE
COST OF ENFORCMENT 100M,ROAD DAMAGE 600M
GOVT HASENT THE WILL .RESPONSIBILITY LIES WITH GOVERNMENT.

Moving 100 ton of Sugar from Point A to Point B Option 2: 3 X 33.3 ton vehicles
Less congestion
No greater axle weights
Less drivers
33% more efficient
Less pollution

Has monopoly and needs to service clients
It’s a profitable venture
Invest to stop destroying value and make money
Create jobs and an investment friendly environment
Make SA effective and efficient

Garth Bolton Cargo Carriers The Impact of Toll Roads and The Effectiveness of the SA Supply Chains

by Nigel Brown on Nov 09, 2011

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Garth Bolton Cargo Carriers The Impact of Toll Roads and The Effectiveness of the SA Supply Chains — Presentation Transcript