Gauteng Business News

Send  Share  RSS  Twitter  03 Nov 2011

TOLL ROADS: Curbing Company Costs Brought on By Toll Roads is Possible


Recent Gauteng Business News

ItÂ’s no secret that the changes within South AfricaÂ’s national transport infrastructure have brought about much debate and even fury within the Gauteng consumer and business communities as they look to avoid high company costs. But no matter the sentiment to the imminent toll costs on the N1, the reality is that companies who rely on the use of these roads on a daily basis, need to start thinking strategically about the impact that this change will impose on their business models, and take the necessary action - immediately - to manage and restrict these costs as much as possible. This is the sentiment of local IT Company Dariel Solutions.

Says Greg Vercellotti, executive director of Dariel Solutions; “Considering the sensitivity of this issue, I don’t need to paint the picture in too much detail, but research* shows that the Gauteng Freeway Improvement Project (GFIP) will cost the Commercial Road Freight Industry an estimated R1,2 billion every year. Further studies** show that freight transport costs could potentially rise by more than 20%, which will dramatically impact consumer price inflation (for example: bread prices could increase by as much as 2%* as a direct impact of the toll costs!)

Technology is the Key to Help Curb Company Costs

Adds Vercellotti; “It’s critical then that relevant considerations are made for businesses that will be directly or indirectly affected by these tolls, and one way of doing this, is to turn to technology. Examining a software solution that is customised in a fully integrated Goods Receiving and Delivery Solution will ensure that fleets are managed effectively and that costs associated with this toll system are tightly monitored and kept to the bare minimum.”

This type of technology solution is a unique, windows-based platform that is easy to use, and allows businesses to optimise their overall business processes, whilst minimising fraud and maximising return on operational costs. Such a solution has the full capability to store the mass of loads weighed on single or multi axle scales and to restrict entry/departure or any vehicle showing unexpected variances. Furthermore, through using such a solution, the number of trucks/vehicles that a business currently has on the roads can be evaluated and a decision made around how many of these are actually necessary. Using customised technology ensures accurate information is gathered, which in turn means informed, viable decisions.

Continues Vercellotti; “When one has got such major freight cost impacts waiting to affect their business model, such viable decision making is no longer a luxury. In fact, such a technology focus will not only lower toll cost impacts, but will effectively manage petrol consumption and reduce vehicle wear and tear. Therefore technology is today’s critical answer to managing the business fleet more effectively and more importantly, reach a critical end goal of overall cost savings.”

Understanding Implications Will Lead to Low Company Costs

The road infrastructure changes and subsequent toll costs are unavoidable, however if embraced correctly and if the implications are understood, these changes can be managed successfully. “It is only a matter of time before the tolls start impacting businesses across a variety of sectors and as such, planning for these infrastructural changes now by re-evaluating business models and taking the necessary steps to ensure minimal impact on company costs for the long term is crucial.” concludes Vercellotti.

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