1
00:00:00,840 --> 00:00:04,680
Speaker 1: The money showed small business focus and all the big

2
00:00:04,680 --> 00:00:06,720
Speaker 1: focus of the week has been on transport. You heard

3
00:00:06,800 --> 00:00:09,360
Speaker 1: us talking about railways earlier, but the other big issue

4
00:00:09,360 --> 00:00:11,760
Speaker 1: of course has been fuel prices. It's a reminder of

5
00:00:11,840 --> 00:00:14,120
Speaker 1: the problems we have and the impact of that on

6
00:00:14,240 --> 00:00:17,840
Speaker 1: smaller firms. Long Cleared on twentwere is the managing director

7
00:00:17,840 --> 00:00:22,120
Speaker 1: of Advantage Advisory Long cleardal Good Evening. I mean, almost

8
00:00:22,160 --> 00:00:24,520
Speaker 1: all businesses really don't have a choice. We have to

9
00:00:24,640 --> 00:00:30,080
Speaker 1: use the rail network. What impact does that have on them?

10
00:00:30,440 --> 00:00:34,199
Speaker 2: Good Evening seven, You you've got it for us and

11
00:00:34,479 --> 00:00:37,080
Speaker 2: is Steven one.

12
00:00:37,640 --> 00:00:41,159
Speaker 3: You had to tread carefully, especially when it comes to

13
00:00:41,280 --> 00:00:44,320
Speaker 3: managing your cost especially in put costs, and we know

14
00:00:44,440 --> 00:00:47,040
Speaker 3: that the fuel price is one of those costs that

15
00:00:47,120 --> 00:00:51,720
Speaker 3: you can't actually money and therefore one of the other

16
00:00:51,760 --> 00:00:55,600
Speaker 3: options that are couse is your transport costs and that

17
00:00:55,640 --> 00:00:58,600
Speaker 3: has a huge impact in terms of your pricing. And

18
00:00:58,920 --> 00:01:02,080
Speaker 3: we know that is soth Africa, we basically move about

19
00:01:02,080 --> 00:01:06,240
Speaker 3: sixty percent of our goods are basically transported using the roads.

20
00:01:06,280 --> 00:01:10,679
Speaker 3: And we've seen that the logistic sector has really has

21
00:01:10,680 --> 00:01:14,479
Speaker 3: had so many challenges considering the fact that even that

22
00:01:14,680 --> 00:01:20,000
Speaker 3: road infrastructure itself. It's not something that is actually working

23
00:01:20,040 --> 00:01:22,760
Speaker 3: efficiently as a supposed to be. You have had as

24
00:01:22,800 --> 00:01:25,120
Speaker 3: well as the President a few weeks ago, you know,

25
00:01:25,160 --> 00:01:28,360
Speaker 3: in terms of the conference, the transport conference as held

26
00:01:28,959 --> 00:01:31,080
Speaker 3: that where he said, I mean, we are losing over

27
00:01:31,240 --> 00:01:35,440
Speaker 3: billion rons a day as a result of the transport inefficiencies.

28
00:01:35,920 --> 00:01:38,880
Speaker 3: So therefore it is a very important element that is

29
00:01:38,920 --> 00:01:42,840
Speaker 3: really impacting SMS. And quite happy that now there is

30
00:01:42,840 --> 00:01:44,959
Speaker 3: at least a massiplant that has come.

31
00:01:44,840 --> 00:01:46,640
Speaker 2: True as a result of real.

32
00:01:46,720 --> 00:01:49,880
Speaker 3: How do we improve and make sure that our raal

33
00:01:49,960 --> 00:01:53,320
Speaker 3: system is efficient and basically reduce the heavy load that

34
00:01:53,440 --> 00:01:55,360
Speaker 3: is on their road infrastructure.

35
00:01:56,080 --> 00:01:59,400
Speaker 1: So there's supposed to be a big investment in real

36
00:01:59,520 --> 00:02:02,080
Speaker 1: we're talking about that twenty minutes ago. Is that going

37
00:02:02,160 --> 00:02:06,160
Speaker 1: to help? Will it somehow kind of help more established players?

38
00:02:06,200 --> 00:02:07,960
Speaker 1: I mean, so often that happens, doesn't it a big

39
00:02:08,040 --> 00:02:10,639
Speaker 1: change comes along and actually helps the established players. Could

40
00:02:10,680 --> 00:02:11,240
Speaker 1: that happen here?

41
00:02:13,440 --> 00:02:14,919
Speaker 2: You know? It's even interesting enough.

42
00:02:15,040 --> 00:02:16,680
Speaker 3: You know when I heard about this must have plan,

43
00:02:16,800 --> 00:02:18,639
Speaker 3: I mean, I said, I said to myself, and I'm

44
00:02:18,639 --> 00:02:20,799
Speaker 3: sure you've reported of this as well, way back ten

45
00:02:20,840 --> 00:02:23,880
Speaker 3: years ago. If you remember, Transit had what they used

46
00:02:23,880 --> 00:02:28,000
Speaker 3: to call mpts the market demand strategy where they're blending

47
00:02:28,040 --> 00:02:32,160
Speaker 3: to invest over three hundred billion in terms of you know,

48
00:02:32,600 --> 00:02:36,160
Speaker 3: TFR as well as the RAL system itself. And therefore

49
00:02:36,680 --> 00:02:38,920
Speaker 3: all of that started, but I don't think it was

50
00:02:39,480 --> 00:02:42,760
Speaker 3: actually you know, even completed at the end of the day.

51
00:02:43,240 --> 00:02:46,040
Speaker 3: And therefore, when we hear that there's another plan as

52
00:02:46,080 --> 00:02:48,399
Speaker 3: well that is coming into place, you already say, look,

53
00:02:48,440 --> 00:02:50,680
Speaker 3: but I mean transit had already started to do this

54
00:02:50,800 --> 00:02:53,519
Speaker 3: way back, and what did it all go wrong? We

55
00:02:53,639 --> 00:02:56,360
Speaker 3: know what has happened in terms of you know, the governance,

56
00:02:57,400 --> 00:03:00,680
Speaker 3: you know impact around a transit. So therefore, what is

57
00:03:00,720 --> 00:03:02,720
Speaker 3: important as much as now we have this master plan,

58
00:03:02,800 --> 00:03:05,679
Speaker 3: but what is important always say get to the policymakers,

59
00:03:05,760 --> 00:03:09,040
Speaker 3: is that let us create all of these master players,

60
00:03:09,080 --> 00:03:12,519
Speaker 3: all of these reforms at the back, and let's consider

61
00:03:12,680 --> 00:03:16,679
Speaker 3: how SMS will be part of that particular valaga. Most

62
00:03:16,680 --> 00:03:19,040
Speaker 3: of these reforms, most of the time, they usually benefit

63
00:03:19,200 --> 00:03:23,079
Speaker 3: big players, and we still remain as smebs at the back.

64
00:03:23,440 --> 00:03:27,280
Speaker 3: And therefore it really contradicts what we keep saying to say, Look,

65
00:03:27,360 --> 00:03:29,280
Speaker 3: the job creation at the end of the day comes

66
00:03:29,280 --> 00:03:31,840
Speaker 3: from the smaller and media businesses. But if you've got

67
00:03:32,080 --> 00:03:34,000
Speaker 3: huge infrastructure programs.

68
00:03:34,480 --> 00:03:37,200
Speaker 2: That way, you find that the players.

69
00:03:36,720 --> 00:03:41,680
Speaker 3: That are going to benefitting is either international players that

70
00:03:41,760 --> 00:03:45,360
Speaker 3: which is bring just two percent of their localization into

71
00:03:45,400 --> 00:03:49,240
Speaker 3: it and no verify so or that imparts of that localization.

72
00:03:49,680 --> 00:03:50,600
Speaker 2: So therefore is very.

73
00:03:50,560 --> 00:03:53,840
Speaker 3: Important that as we'll continue then to enroll this master plan,

74
00:03:54,320 --> 00:03:58,120
Speaker 3: I hope that SMEEs will have to be considered to

75
00:03:58,160 --> 00:03:59,760
Speaker 3: be part of that violation and play critical.

76
00:04:00,560 --> 00:04:02,840
Speaker 1: So how do you how do we make sure that happens.

77
00:04:02,880 --> 00:04:04,440
Speaker 1: I mean, we obviously need you need to start your

78
00:04:04,440 --> 00:04:07,640
Speaker 1: campaign now, but I mean would that mean that they

79
00:04:07,680 --> 00:04:10,080
Speaker 1: get preferential access? Would it just mean they're part of

80
00:04:10,120 --> 00:04:14,560
Speaker 1: the design of it maybe to make sure it suits them.

81
00:04:14,880 --> 00:04:18,560
Speaker 4: So what I love about South Africa we do have policies.

82
00:04:18,760 --> 00:04:23,040
Speaker 4: We do have policies stilling. We do have a localization

83
00:04:23,279 --> 00:04:26,880
Speaker 4: policy that is clear in terms of what sectors have

84
00:04:27,040 --> 00:04:31,039
Speaker 4: to deploy and we have to use some of the resources,

85
00:04:31,080 --> 00:04:34,400
Speaker 4: the goods and the services that are locally manufacturing. But

86
00:04:34,520 --> 00:04:36,120
Speaker 4: when we've picked up at the end of the day,

87
00:04:36,160 --> 00:04:41,080
Speaker 4: you find that that implementation of that particular program is

88
00:04:41,160 --> 00:04:44,840
Speaker 4: not audited in terms of ensuring that indeed it does

89
00:04:44,960 --> 00:04:48,400
Speaker 4: meet those localization targets. So the moment of policies, however,

90
00:04:48,440 --> 00:04:52,040
Speaker 4: in terms of monitoring and enforcing them that indeed they're

91
00:04:52,080 --> 00:04:53,680
Speaker 4: basically implemented of an issue.

92
00:04:53,720 --> 00:04:54,719
Speaker 2: We say that as well.

93
00:04:54,760 --> 00:04:57,039
Speaker 3: I mean we transceate in terms of some of the

94
00:04:57,240 --> 00:05:01,479
Speaker 3: conducts of the signed to find that those localizations would

95
00:05:01,520 --> 00:05:03,599
Speaker 3: have been there as part of the targets, but when

96
00:05:03,600 --> 00:05:06,160
Speaker 3: it comes to implementation then they're left off. So what

97
00:05:06,279 --> 00:05:09,880
Speaker 3: is very important is to bring organizations like SAPs they

98
00:05:09,960 --> 00:05:13,160
Speaker 3: used to they fall under t JICA, so they used

99
00:05:13,200 --> 00:05:15,919
Speaker 3: to be really bad, and the policy makers or the

100
00:05:16,000 --> 00:05:20,000
Speaker 3: monitor or the edit to that monitors localization bring them

101
00:05:20,040 --> 00:05:22,960
Speaker 3: into into all of these programs to ensure that this

102
00:05:23,040 --> 00:05:25,280
Speaker 3: thing is reported yearly to Parliament.

103
00:05:25,680 --> 00:05:27,880
Speaker 2: In terms of if we are moving ahead.

104
00:05:27,600 --> 00:05:31,719
Speaker 1: Or lot, can smaller companies work together? So if, for example,

105
00:05:31,760 --> 00:05:35,760
Speaker 1: have a rail system and that one's got to send

106
00:05:35,880 --> 00:05:39,640
Speaker 1: a container or a shipment and won't fill the container,

107
00:05:39,720 --> 00:05:42,520
Speaker 1: could they work together with another smaller company. I mean

108
00:05:42,720 --> 00:05:44,279
Speaker 1: they might be in the same space, they might be

109
00:05:44,320 --> 00:05:47,560
Speaker 1: sort of semi competitors, but my experience of smaller companies

110
00:05:47,560 --> 00:05:50,159
Speaker 1: that are semi competitors, they're usually quite good friends.

111
00:05:49,880 --> 00:05:55,400
Speaker 3: To So then I look in two to six, you know,

112
00:05:55,440 --> 00:05:58,200
Speaker 3: and it's what we've been saying to sm is we

113
00:05:58,240 --> 00:06:01,640
Speaker 3: are an here right now that you have to collaborate

114
00:06:02,560 --> 00:06:05,839
Speaker 3: even with your competitors, because these are the different times

115
00:06:05,839 --> 00:06:10,360
Speaker 3: that require trust signations in place. So therefore collaboration is

116
00:06:10,360 --> 00:06:12,320
Speaker 3: the word that has to be stroll out.

117
00:06:12,720 --> 00:06:15,360
Speaker 2: We'll put up in terminy for instance, that now you have.

118
00:06:15,480 --> 00:06:19,880
Speaker 3: Systems where you've got these load sharing apps that you

119
00:06:19,920 --> 00:06:23,360
Speaker 3: can use. If you've got your own truck, for instance,

120
00:06:23,400 --> 00:06:26,240
Speaker 3: you've got your load and therefore you share your root

121
00:06:26,760 --> 00:06:28,960
Speaker 3: and then when you return at last.

122
00:06:28,839 --> 00:06:30,240
Speaker 2: You can get some other loads.

123
00:06:30,680 --> 00:06:34,160
Speaker 3: That particular what it does avoid the situation where you're

124
00:06:34,200 --> 00:06:37,080
Speaker 3: paying so much cost you're coming back with empty loads

125
00:06:37,080 --> 00:06:39,720
Speaker 3: at the end of the day, and therefore you're minimizing

126
00:06:39,760 --> 00:06:40,240
Speaker 3: those courts.

127
00:06:40,560 --> 00:06:43,240
Speaker 2: And these are the times where combat it are some.

128
00:06:43,279 --> 00:06:46,960
Speaker 3: Of somehow where's possible they have sit downe and say, listen,

129
00:06:47,080 --> 00:06:50,080
Speaker 3: how do you share the resources you've got storage for instance,

130
00:06:50,120 --> 00:06:53,479
Speaker 3: big storage that you're not using. How about you share

131
00:06:53,520 --> 00:06:56,120
Speaker 3: partly some of your storage with some of the players

132
00:06:56,440 --> 00:06:59,400
Speaker 3: that they can actually use that and you save quite

133
00:06:59,440 --> 00:07:02,160
Speaker 3: a lot of money in relation to what you have

134
00:07:02,160 --> 00:07:05,279
Speaker 3: been hat So it requires a different thinking for enough

135
00:07:05,320 --> 00:07:08,680
Speaker 3: of business owners as the period that we're at right now,

136
00:07:08,880 --> 00:07:11,000
Speaker 3: who say, look, it's all of a collaboration at the

137
00:07:11,080 --> 00:07:12,600
Speaker 3: end of the day, more than just committing.

138
00:07:13,160 --> 00:07:15,880
Speaker 1: I'm Tredo, thanks so much. Lo'm Credo. On Twentwes Managing

139
00:07:15,880 --> 00:07:17,440
Speaker 1: Director of Advantage Advisory