PwC has resigned as external auditor of Oceana because of a “strained” relationship with the company, and a lack of transparent communication with the board, amid a tumultuous period at the troubled fisheries and logistics group.

At the last annual general meeting, shareholders holding 38% of Oceana’s shares voted against retaining PwC as the group’s auditors. Oceana was meant to consult with shareholders on the reappointment of PwC on Monday, but instead announced on the day that PwC had resigned.

“Shareholders are now advised that late afternoon, Friday (…) PwC resigned as auditors of the group with immediate effect in respect of the audit of the financial year ending September 2022.”

Oceana said PwC said this was “due to their assessment of significant doubt as to whether there was objective and transparent communication between the board and PwC given the strained relationship, which they assert constituted a significant impairment of their independence.”

Oceana was looking at alternatives to PwC, and discussions with another of the big four auditing firms were progressing.

Monday’s meeting will still go ahead in order to provide shareholders a chance to engage with Oceana’s audit committee.

Oceana owns canned fish brand Lucky Star and also has a presence in other global markets where it sells fishmeal, fish oil and fish. It also owns a logistics company specialising in cold storage and transport of products such as fish, fruit and vegetables, poultry and meat.

The Minister of Finance has noted that they will use “higher than anticipated revenues” – which were generated through taxes, levies and all other manner of government revenue generation – to rescue a number of State-Owned Enterprises (SOEs) that are failing, bleeding capital, or are just not doing what they need to be doing.

Whilst we welcome the move to give Transnet badly-needed funding to repair, re-design or re-build vital pieces of infrastructure and equipment (ports, railways and related equipment for efficient operations), there is concern that the “usual suspects” have once again received “bailouts”.

However – “the funding impasse” of the Gauteng Freeway Improvement Plan (GFIP) (commonly referred to as ‘e-tolls’) has had an interesting twist. The Gauteng Provincial Government has agreed to contribute 30% to settling SANRAL’s debt and interest obligations, while national government will cover the remaining 70 %.

Does that mean it’s paid off now? There is no debt? Zip? Nothing? No need for the e-toll system then?

Ahh – but wait! Evidently, “Gauteng will also cover the costs of maintaining the 201 kilometres and associated interchanges of the roads and any additional investment in road will be funded through either the existing electronic toll infrastructure or new toll plazas, or any other revenue source within their area of responsibility.”

There we have it: e-tolls are not going. In fact, there may even be more gantries – or higher vehicle licence fees (in Gauteng only), or some other smart/ingenious way to charge for the “costs of maintaining” – the reference to “any other revenue source within their area of responsibility” being the key statement here.

However, the reality is that those who have not paid and refuse to pay will not suddenly pay now for maintenance. How will government ensure that they pay now? They still owe and government hasn’t tried to collect the default. Why would it suddenly work now (with the possibility of “new toll plazas”)?

Scrap the system ! It’s being “paid off” now anyway. Any new developments get paid cash through the fuel levy system. Stop using the fuel levy for other things  saving other SOEs comes to mind.

Whilst we ponder this one – some good news! It seems like the Minister is beginning to listen to endless comments, lobbying and interaction from the road freight sector:

• The Economic Regulation of Transport Bill was passed. This should establish an independent transport regulator which will pave the way for greater competition and enable regulated access to the network – as long as private businesses are not punished for being efficient and competitive.
• We need to understand what the Regulator really means for private business. It’s all fine for ensuring decent pricing in monopoly systems (like public transport systems, Eskom, water supply, etc, landing or berthing facilities in our government operated facilities, ensuring that there are no huge/unrealistic increases in tariffs by any authority in the transport world). But it doesn’t work for private business where competition, innovation and efficiencies are at play.
• No amount of argument or discussion must ever allow price-fixing/setting within the private (business) sphere.

Then there is better news:

• Third-party access to the freight rail network is being seriously considered – and perhaps there will actually be movement now.
• Private-sector partnerships for the Durban Pier 2 and Ngqura container terminals (which the Road Freight Association has been calling for – for at least the last 10 years), is also now on the cards.
• Allocations to the SAPS to increase capacity to deal with crime.
• Processes and structures in place to deal with white-collar crime and corruption.
• Funding for critical infrastructure

However, there are some glaring omissions:

• Government needs to ensure we can release ourselves from fossil fuel (in this case oil) dependency. Now is the time to support, fund, develop and grow alternative energy systems. Locally developed, manufactured and supported.
• Use of our great coal resources to implement short to medium term energy solutions. There are very clean and green methods around the world that can be implemented. But our largest resource – sun/solar – needs to be developed and expanded as quickly as possible. This requires funding.
• Water security – along with food security – will (like the solar development) create the millions of job/employment opportunities that our country needs.

There was a greater expectation (perhaps in the form of a very loud bang) to the end of e-tolls. It didn’t happen. Is there a lesson to be learned from this?

Infrastructure that is of common good to the whole country, the economy, the development of society and upliftment of South Africa, needs to be developed at a cost shared by all South Africans – at the cheapest, least expensive and least intrusive means possible.

There is much potential in this speech – yet there is much we as South Africans require from our leaders in terms of direction. In terms of development. In terms of growth.

By Gavin Kelly – CEO of the Road Freight Association

24 October, Johannesburg – Inospace, South Africa’s leading owner and operator of serviced logistics parks, is casting off its industrial overalls and leaping into the new tech space with its own technology platform, Inocircle.

“The Inocircle online platform aims to resolve business pain points and add material value to small and medium enterprises (SMEs),” says Jodi Sher, chief marketing & product officer at Inospace.

Already the biggest owner of serviced logistics parks in South Africa, Inospace is positioning itself to be a proptech provider with a war chest aimed at finding solutions to its customer’s logistics pain points.

Months after the announcement of its R1,25 billion deal with Fortress REIT, Sher said the company was aiming to set the gold standard of African CRE management with the adoption of technology and a laser focus on what its customers need.

“Inospace’s tenants are not being kept up at night by what they pay in rent. For every Rand our clients spend on rent, they spend R5 on electricity and R10 on transportation, so our focus has been on creating technology solutions around those areas,” explained Sher.

While it pioneered the development of service logistics parks, Inospace made a quiet entry to the proptech space in 2020, creating its own property management system which initially focused on innovative concepts to manage a large multi-let real estate platform that has short leases and offers flexible terms.

These proptech systems align with Inospace’s increased focus on streamlined efficiencies, cost-reduction and improved decision-making. And now, having grown to 50 logistics parks, the business has the ability to scale up its technology offerings through Inocircle.

The Development of Inocircle

The Inocircle propriety technology platform took time to develop, but now serves as a space-as-a-service by offering useful business tools that go way beyond cost savings and efficiencies.

“We don’t want to be a fast follower, and one of the things we’ve spent a lot of time on is looking for inspiration outside our industry, and then translating it for real estate —making us a first mover in our industry,” says Sher.

Online retail has transformed consumer expectations on service levels and put immense pressure on the logistics sector to figure out how to change the supply chain to meet those expectations. As a warehouse owner and manager, Inospace has been able to leverage its position by looking at problems from its customer’s viewpoint.

“When you take a step back and think about it, there’s no other business in the world where you spend three months negotiating a contract with someone and then ignore them for the next five years – that’s a real constraint on our industry. Which is why, if we can add value using new ways to leverage technology, we are going to change the industry,” says Sher.

“It’s a self-imposed constraint that many property owners put on themselves. As a traditional landlord it’s great having a passive income, but tenants want more than just space these days, and it starts with how we create customer centricity and change the relationship using technology.”

The Inocircle offering

The value of a property is no longer defined solely by the space and its location, but by the blend of technology-enabled service and a superior tenant experience. The Inocircle technology platform is a realisation of that, delivering solutions to some of the most critical challenges facing property managers and tenants.

Today’s property managers are tasked with everything from community relations to rental collections and vendor management. Inocircle helps in this regard, offering property rental tools which manages deals, properties, and lease expirations. It also offers real estate analytics and data which make it possible to assess future risks and opportunities.

On the consumer end, Inocircle incorporates facility management, and offers customised customer-support services. A subscription service will help tenants manage their supply and procurement demands, and access industrial and logistics-related goods and services offered by various vendors at preferential rates.

In addition, clients will create business profiles on Inocircle, allowing them to request maintenance support, and manage their accounts with real-time access to a business directory.

Launch partnerships

For its launch, Inocircle is partnering with vendors including MiWay Insurance and 2Ship, a fully integrated client facing transport management system. Through MiWay, Inocircle will provide new and existing clients with discounted non-life insurance and a range of business insurance products.

The partnership with 2Ship will offer tenants access to an integrated online transport platform. This will allow them to find the most affordable and fastest courier and delivery solutions for any shipment.  The logistics service also provides a seamless integration layer between all the major e-commerce stores and most South African local and international courier companies.

“Inocircle users will be able to track deliveries, receive e-mail updates and pay using an e-wallet, without having to open accounts with various courier companies,” says Sher.

Additionally, through exclusive offers, Inocircle will give its clients access to various support services, ideal for SMEs, including an IT help desk, tender notifications, marketing services, and legal and labour advice.

“By streamlining how we work with our clients through this platform, we are improving efficiencies for our clients and enabling them to focus on the operations and growth of their businesses.” says Sher.

Local market leaders including Bidvest International Logistics provide a fascinating perspective on where this vital part of the nation’s economy rests and what needs to be done to address increasing threats

Johannesburg, 18 October 2022 – South Africa’s logistics industry is battling a war on many fronts.

Bad weather, equipment breakdowns and shortages and congestion continue to hamper the country’s ports and adding days to the supply chain, creating havoc downstream.

The conflict in Ukraine and the weakness of the rand are exacerbating the situation, with inflation skyrocketing to the detriment of consumers.

In addition, South Africa is now firmly in the crosshairs of cyber criminals. Anti-virus provider Kaspersky’s research shows that ransomware attacks in South Africa doubled between January and April 2022 compared to the same period last year.

The 2021 cyber attack on Transnet was especially damaging, impacting ports, harbours and pipelines to the point that the state enterprise was forced to declare force majeure at several container terminals.

Lesiba Sebola, Director of Information Technology at Bidvest International Logistics (BIL), says it’s paramount to safeguard IT infrastructure given how central it’s become to operations.

“The bottom line is the financial losses incurred. Transnet not being able to operate their ports affects us, and obviously if there are attacks in our own environment that necessitates downtime of the infrastructure and it would be difficult to conduct business,” he says.

Sebola says the most prevalent form of attack is phishing that seeks to get information from users.

“You need a multifaceted approach to protecting your information. We have perimeter security, which involves firewalls. And with operating systems there’s always updates you need to do, whether it’s an operating system update or security update to eliminate vulnerabilities that the providers have identified.”

Anti-virus software is another must as part of your end-point security.

“Your end-point security is also important to protect the confidentiality of your company information in case of the stolen end-point devices. Sometimes we tend not to think about stolen goods and how they can be used in the process of a cyber attack.”

However, Sebola stresses the most important aspect of cyber security is user awareness.

“The majority of successful attacks happen here. If your users are not aware, it’s like taking a key to your house and throwing it over the security fence for attackers to use.

“At BIL, we have an online program where staff can learn about security and the different types of attack, e-mail impersonations, for example. If they spot an e-mail that looks a bit suspicious, we’ve got a special process to which they can send an alert for us to investigate. This forms part of our induction process and occurs on a quarterly basis. We also hold an annual Computer Security Day in November.”

Like Sebola, Craig Rosewarne, MD of cyber security company Wolfpack Information Risk, believes everyone is at risk of cyber attacks.

“You could be an individual, a nonprofit, a small charity, it doesn’t matter. The hacker doesn’t care where

the money comes from,” he says.

“The harsh reality is that attacks can’t be prevented, but organisations can defend against them, provided they recognise the complexity of digital crimes and tackle them accordingly.”

For Sebola, this means continuously monitoring networks to establish any irregular patterns.

“You have to have an incident response plan in place, but you also can’t have a prescriptive one that is generic. This plan will tell you who needs to be involved, who the contact people are, and not just from IT. You need to establish who is involved from legal, operations and the communications side, because there are various aspects that you want to consider.

“When you have cyber insurance, part of the requirement is that you inform them of any breaches.  It’s important to keep logs from the IT side. Make sure you contain the attack so you can preserve the evidence. This is important in terms of the analysis later on to prevent such a breach from happening again.”

One of the leading globally operating logistics service-providers Rhenus Group has launched a new storage warehouse in Durban, South Africa. This strategic addition expands the Rhenus warehousing space to more than 24,000 square metres, strengthening its local capabilities significantly and creating new jobs.

The new Rhenus facility measures 7,700 square metres – growing the company’s warehousing capacity in Durban by more than 50 percent in just two years. This facility plays an integral role in serving the Port of Durban, which handles 32 percent of all South Africa’s ships. The additional premises are set to attract new clients from various industry sectors – including ones that Rhenus currently services like automotive, healthcare and food and beverages.

The warehouse is strategically located at Northfield Business Park in the north of Durban, just 21 kilometres from the King Shaka International Airport and 24 kilometres from the Durban Container Terminal.

The facility offers a range of solutions such as loading and offloading, packing, cross-docking, picking, as well as the capability of handling food graded items. With its new cross-dock area, the warehouse boasts high efficiency and quick loading and unloading turnaround times.

According to Kishore Kanayelal, Regional Director KwaZulu-Natal at Rhenus South Africa, increased demand for warehouse space, as well as more service offerings, have been driving strong growth. With KwaZulu-Natal having experienced many challenging circumstances, the launch of a new warehouse comes as welcome relief to a community in need of good news.

“We are proud that we have created more than a hundred new jobs to service the demand in our area. These additional 7,700 square metres strengthen our local capabilities significantly,” Kishore Kanayelal explains.

The offering of cross-docking means more efficient goods handling, reduced labour costs and accelerated delivery times – which are real benefits to Rhenus clients. “The launch of this new warehouse marks an exciting time for us as a business. It showcases our commitment to delivering innovative solutions that meet our clients’ transport and warehousing needs,” concludes Kishore Kanayelal.

By this expansion, Rhenus Warehousing Solutions is enlarging its portfolio of individual solutions and value-added services for the South African automotive, healthcare, food, and beverages sector.

Businesses of all sizes, both new and old, are increasingly adopting more sustainable practices in response to the worldwide environmental issue.

Greener methods decrease waste, improve the environment, and satisfy environmentally concerned clients. It can also increase efficiency and lower operational expenses, resulting in more earnings.

Reduced environmental impact, reduced costs

According to the World Trade Organization, global product and commercial services trade have expanded by around 7% per year over the previous 30 years. This entails that businesses are utilising more energy, packaging materials, and warehouse space year after year.

Fortunately, many organisations are implementing strategies to reduce emissions and waste throughout their supply chains. This not only improves the environment, but it may also save operational expenses. Optimising transportation routes, for example, saves CO2 emissions and fuel costs. Packaging optimization minimises waste and packing material costs.

All while these practices are effective, they stem from informed decision-making. How would you know where there is extra logistical expenditure if you are lacking the data to understand where you’re overspending?

Public Image considerations

Adopting green supply chain efforts may improve your public image, which is vital given current consumers’ high rise in environmental awareness.

The growing pressure to hold various governments and companies responsible cannot be overlooked. Customers who care about the environment want businesses to respond to the need to manage our planet’s finite resources responsibly and sustainably.

Where to start?

To green your supply chain, consider all parts of your organisation. Everything from production and storage to shipping and waste disposal is evaluated with the objective of selecting goods, services, and procedures with the least environmental effect.

Understanding your company’s spending, supply chain, and consumption trends is critical for enhancing sustainability.

Below are a few ideas for reducing your environmental footprint, cutting expenses, and increasing efficiency:

• Sourcing locally = Reduce waste, CO2 emissions, and fuel expenses by obtaining supplies locally.
• Down-size warehousing = Reduce shipping distances and expenses by employing smaller regional warehouses.
• Ship materials directly to the point of use = Ship raw materials for manufacturing directly to the site of use to save gasoline and perhaps minimise the requirement for protective packaging.
• Conserve energy = by employing low-voltage lighting and motion sensors or timers on lighting systems in your warehouse.
• Go electric = Reduce your paper use by switching to electronic technologies.
• Consolidate shipments = Shipments should be aligned and consolidated to decrease carbon emissions and perhaps reduce labour and fuel expenses.

The challenges of transport and logistics management across the African continent present significant opportunities for companies that can leapfrog traditional supply chain practices and adopt automation technologies.

Real time transport and logistics visibility is transforming the way transport organisations operate, providing them and their customers with live updates on the location and status of the vehicle fleet as well as the goods that have been ordered. Without this technology, companies do not have insights into deliveries, leading to inefficiencies and customer dissatisfaction, and an inability to keep up with competitors.

With the needs of customers in the region in mind, SEIDOR in Africa has developed a transport solution for SAP Business One referred to as Transport One that provides real-time, end-to-end transport visibility for SMBs that have implemented the ERP solution to automate key functions across their business.

Daisy Ndanyi, Head of Technical Account Management at SEIDOR in Africa, East Africa Region, says the Seidor Transport One solution was developed in consultation with SEIDOR’s large base of customers in the transport and logistics industry.

“What we have now is a seamless solution that integrates with SAP Business One and provides our clients with the information they need to optimise their transport and logistics operations,” she says. “Real-time visibility allows for accurate tracking and tracing of assets, and their location and status, throughout the supply chain.”

Ndanyi adds that any business that operates a fleet of commercial vehicles requires information about the whereabouts of any given vehicle at any time. Incorporating the latest GPS technology, SEIDOR’s solution is far more than just a tool to help commercial drivers to navigate from location to location. “It allows SMBs to monitor vehicle location, geo-fencing, vehicle speed, odometer reading and routes taken.”

As part of a modern mobile transport tracking software tool, the solution provides information that is critical to cost assessment, excellent customer service and improved efficiency.

Here are six key ways the solution can maximise ROI:

1. Tracking and calculating cost and profit per kilometre

Road-transport operators and logistics companies need to measure and control variable vehicle cost factors like fuel, tyres, maintenance, and repairs to gain accurate insights into actual costs and profitability.

2. Daily loading and delivery planning tools and reports

Labour planning and management is a challenge for many transport companies. Accurate and timeous reports make it possible to eliminate wasted time and spend while knowing what cargo needs to be loaded and delivered daily. Order delivery accuracy and on-time delivery are improved by planning tools that are part of the solution.

3. Monitoring fuel use

Fuel monitoring functionality reports fuel levels per vehicle, driver, and trip, recording important data from costs to consumption. This improves the company’s fuel efficiency, emphasising visibility around fuel spending and transactions at the driver level. This can result in significant fuel cost reduction and also eliminates fuel theft. A fuel tracking system also helps businesses determine if speeding is a common occurrence within the fleet.

4. Reduced downtime and increase asset availability

Preventive maintenance of vehicles minimises vehicle downtime, reduces costs and avoids breakdowns that result in safety and security risks. Alerts ensure that vehicles are serviced regularly, and parts are available when needed thanks to streamlined requisition systems.

5. Accelerated transactions and improved cash flow
By automating everyday financial tasks and integrating them with other business processes, transport businesses are always able to get the information they need when they need it. They can effectively track and access all customer-related information, for example, better servicing customers at every point of contact, helping ensure repeat business, and driving improved cash flow as a result of accurate monitoring and management of revenue and expenses. Timely billing based on real-time proof of delivery to maximise cashflow. This is enabled by the driver portal. An integration to mobile payments has eased the handling of cash to drivers and other payments.

6. Vehicle asset management
The solution enables automated tracking, vehicle details, licensing, tracking and reporting on vehicle values and costs, as well as annual depreciation as a result of distances travelled. The system also ensures that the business complies with all necessary regulations, enabling fleet managers to anticipate new regulations and avoid sanctions or fines.

“In addition to the many cost-saving and efficiency benefits, the solution is also affordable, quick to implement and integrates easily with SAP Business One,” says Ndanyi.

“The extremely positive response we have had from our SMB customers in the transport sector demonstrates just how beneficial this add-on is proving to be. We will continue to add features and functionality as the demand arises.”