Self-regulation: Piloting the Road Transport Management System on the North-South Corridor

An initiative by the Southern African Development Community (SADC), in conjunction with the Road Transport Management System (RTMS), Federation of East and Southern African Road Transport Associations and TradeMark Southern Africa, to pilot the RTMS along the North-South Corridor (NSC) will be launched toward the end of 2011.

This initiative is dependent upon the successful harmonisation of overloading legislation in the region, which will level the playing fields for all transporters participating in the pilot project.

There are many potential benefits in a self-regulation system such as this, as it encourages compliance in all areas of road transportation and includes weigh less (prolonged road life), vehicle road worthiness (road safety for all users), legal cross-border documentation and loading (customs compliance), to name but a few.

However, not all corridor stakeholders are aware of the RTMS system and we therefore hope through this article to create a better awareness on the subject of self-regulation and benefits of being recognised as an authorised economic operator.

What is RTMS?

RTMS is a South African initiative; it is an industry-led, voluntary self-regulation scheme that encourages consignees, consignors and transport operators engaged in the road logistics value chain to implement a vehicle management system that preserves road infrastructure, improves road safety and increases the productivity of the logistics value chain.

This scheme supports the Department of Transport’s National Freight Logistics Strategy.

All stakeholders in the road logistics value chain are aware of the problems concerning road logistics, which affect their industry.

The country’s road infrastructure is deteriorating rapidly due to overloading and poor maintenance. Furthermore, the large number of accidents attributed to heavy trucks is unacceptable.

Both road safety and road infrastructure are public concerns subject to strict regulation by governments, particularly when abused. Overregulation, road deterioration and high accident rates pose a significant threat to the long-term sustainability and global competitiveness of the road logistics value chain.

This has prompted users of road haulage (consignors and consignees) and providers of road haulage (hauliers) to jointly develop strategies aimed at protecting the road network, improving road safety and transport productivity for the benefit of the country’s citizens and the industry itself.

The industry further recognises that poor compliance to transport regulations creates an unfair competitive environment. It is therefore felt that a self-regulation scheme is required to create standard rules for the industry, and that these rules should become the ‘business norm’ – supporting principles of good corporate governance.

It is for this reason that industry is leading this initiative, to ensure its quick adoption by all businesses participating in the road logistics value chain.

Furthermore, industry recognises its critical role in the economy’s growth. Efficient movement of goods between a country’s centres of production and its shipping ports boosts competitiveness in international markets. RTMS is one of the innovative and proactive initiatives that will make
this possible.

Benefits of the RTMS to transporters

Internal

• While overloading is contained, there is the opportunity to optimise payload. Records show that RTMS members have a higher average payload, yet overload less than non-members.

• There is the opportunity to run performance-based standards vehicles on special routes i.e. vehicles that are longer and heavier than normal vehicles – one member has had an average payload of 46.2 tonnes over 24 months. Axle loadings remain within regulation.

• Drivers are likely to be better looked after e.g. health and training etc. due to auditing.

• The safety record of the company will most likely improve.

• Vehicles will be better maintained, have less breakdowns and so give better utilisation.

• The business will be run better. There will be less wastage and the bottom line will be improved.

• There is the opportunity for management to be exposed to and take on board improved and standardised systems from the RTMS.

• The owners and top management will have an improved insight as to what actually happens in their companies, not merely what they are told by staff.

• Staff in the companies will have to carry out what they say they do, since they will be audited on an annual basis.

• When and if the RTMS gains “critical mass” and the industry is committed to it, the ability to obtain contracts will be affected by whether the transport company is part of the RTMS.

External

• Potential for improved and less-cost insurance, registration, licence fees etc.;

• Potential for lesser toll fees;

• Potential for easier transit through borders;

• Potential for easier access to work permits for foreign drivers;

• Potential to have self-escorts for abnormal loads;

• Potential for less weighing at weighbridges;

• Potential for less enforcement on dangerous goods;

• The image of the company is improved in the eyes of the public and its client’s country;

• Less damage to roads and improved road safety;

• Enforcement can focus on those not in RTMS and those likely lawbreakers; and

• The country has improved access to statistics on road transport.

The test for RTMS efficacy is:

• If it is a major problem and cost for a company to become accredited to RTMS, then that company should not be in business; and

• If a company is operating professionally and efficiently, it should have no trouble or cost to become accredited.

How to become accredited

Accreditation is built on three principles: loading within the legal load limit, driver wellness, and vehicle fitness.

Ten rules and requirements have been developed around these principles:

• Maintain an inventory of nominated vehicles;

• Assess the vehicle mass before each laden trip;

• Verify the mass determination method;

• Maintain vehicles in a roadworthy condition;

• Ensure vehicle and load safety;

• Manage driver wellness;

• Provide training and education;

• Assign tasks and responsibilities;

• Keep records and documentation; and

• Perform an internal review (self-audit).

Mike Fitzmaurice