AARTO Update: Tshwane pilot project precursor to national roll-out

November 2008

The recent launch of the Tshwane pilot scheme of the Administrative Adjudication of Road Offences Act has not been without some teething problems, reports the Road Traffic Management Corporation, in response to recent press articles.

Despite adequate preparation on the part of the RTMC in readiness for the launch in July, which was restricted geographically to Tshwane and only to certain sections of the Act, one of the major hindrances to the overall efficiency of Tshwane’s implementation was the delay by Telkom to install a fixed data line. A 3G wireless system has been put in place temporarily, but this has significantly slowed down the processing of violation notices. In addition, communication between various systems used at national and municipal level and with service providers such as SA Post Office and FNB, have hampered the smooth application of AARTO in the region.

Added to technical challenges, human nature has also played its part in complicating matters, as despite an extensive information campaign through print and electronic media and through the distribution of literature through post boxes, at public libraries and civic centres as well as shopping malls, the public has mis-applied the publicised 50% discount on AARTO issued infringement notices, and has taken it upon itself in many cases to apply the discount to old fines issued under the previous system.

It will naturally take some time for the public to adjust to the change over and to learn the terminology which AARTO employs and which differentiates the Act from the previous Criminal Procedures Act. However, operationally deployed metro police officers of the TMPD were fully trained prior to the launch and are fully conversant in the language and procedures of AARTO.

AARTO has also prematurely become synonymous with the points demerit system, although this element of the Act was never part of the pilot phase project. Nor will it be in the forthcoming Johannesburg roll out – demerit points will only come into play when AARTO rolls out nationally in order not to prejudice negatively the drivers of Gauteng.

Up to the end of October, just under 30 000 infringement notices had been served on drivers in Tshwane, but due to the nature of the new system which offers options for responding to infringement notices in a series of 32 day cycles, in can take up to 100-120 days for all of an infringer’s options to be exhausted. For this reason we have not yet seen the conclusion of many of the notices and therefore the success or failure of the pilot cannot be adjudged on this basis. To enable a proper assessment of the success or failure of AARTO, time must be allowed for a reasonable volume of infringement notices to reach the different levels in the process.

One of the key successes, however, of the pilot can be measured in the reduction in the number of court cases dealing with less serious traffic violations. Following the introduction of AARTO, the number of infringers who have elected to be tried in court has reduced substantially. The number of summonses issued in accordance with the AARTO legislation has also reduced, as the AARTO system, as its name suggests, promotes administrative adjudication of less serious traffic violations. Up to the end of September, only 23 infringers of 17 358 infringement notices served elected to appear in court.

Overall, given the technical challenges, AARTO has performed well since the pilot was launched in July, and Johannesburg is already preparing for its own trial period. JMPD trainers have been trained by the RTMC and they are commencing training on their operational officers. In addition, local contravention management system service providers to JMPD have started inter system testing with eNaTIS in order to be ready for the upload of speed and traffic light infringements.

With the increase in the volume of transactions set to increase significantly, stress testing of the system will be carefully monitored before proceeding with further roll out at national level, but the RTMC is confident that AARTO will be successful in its key objectives of reducing the strain on the criminal justice system, changing driver habits and as a direct result, reducing the number of traffic accidents on South Africa’s roads.

Visit www.aarto.co.za

For more information, please contact:

Relebogile Mabotja
Media Liaison
Ukhozi Productions
011 728 1063
media@ukhoziproductions.co.za

SAVRALA Manufacturer of the Year 2008 Awards

Friday, 17th October 2008, The Ballroom @ Gallagher Estate, Midrand

Congratulations to all the winners!

Overall Leasing Rental
Gold: Toyota SA
Silver: Hyundai Automotive of SA
Bronze: General Motors SA
Gold: Nissan SA
Silver: Ford Motor Co. of SA
Bronze: General Motors SA
Gold: Toyota SA
Silver: Hyundai Automotive of SA
Bronze:  Honda SA

Manufacturer of the Year 2008
Toyota South Africa

Toyota South Africa scooped the Overall Gold Award and also took 1st place in the Rental Section at the 2008 SAVRALA 2008 Manufacturer of the Year Awards. From left: Len von Graevenitz (Vice President Vehicle Sales Dealer Network), Ernie Trautmann (General Manager Vehicle Sales) and Liezl Dodkins (Manager – Car Rental Fleet Sales)

Toyota strikes back

Toyota has made a return to top dog position at the Southern African Vehicle Renting and Leasing Association’s (SAVRALA) Manufacturer of the Year – taking the 2008 award by a mere 0.3 percentage points in a year that saw most manufacturers drop points compared to last year. Colin Windell reports.

Toyota South Africa’s score of 63,7 to take the overall gold award was enough to keep them ahead of Hyundai Automotive (63.4) whose silver award second place performance – albeit 1.0 points down on last year – was enough to put them ahead of last year’s winners, General Motors South Africa, which slipped to third place and the bronze award.

Toyota fought back from fifth overall last year to record a 2.2 percent improvement overall. In the Rental Section top honours went to Toyota with a 3.9 percent improvement over last year with Hyundai in second place and Honda – one of the biggest movers for the year – moving up 5.1% from fifth in the segment last year to third place.

This segment also saw the only other big move of the year with Renault improving its score by a massive 6.5% – with Nissan the biggest loser dropping 3.3% to finish ninth overall.

Although Nissan did record a drop of 7.6% in the Leasing Section, its score of 68.6 was enough to keep it at the top of the pile, just 0.1 points ahead of Ford/Mazda and 0.5 points ahead of third-placed General Motors.

The Leasing segment, which probably best reflects the volatility of the passenger car market this year, saw some manufacturers taking a pounding with Mitsubishi dropping 10.6%, Land Rover 8.7% and Volvo 8.6% – with only Honda (up 5.4%) and Subaru (up 1.1%) making any meaningful positive inroads.

With input obtained from a detailed survey of the members of SAVRALA, which is conducted twice during the course of the year, awards are bestowed upon those motor manufacturers and importers who have provided the respective Rental and Leasing and Fleet Management companies with exemplary service in areas of communication, service support and value. Makes and models are specifically not taken into account.

According to Anthony Calcutt from KA Smart – the person responsible for the collection and analyses of the survey data – areas showing the biggest improvements were ‘Parts Availability’ and ‘Preparedness to embrace new and/or effective theft prevention measures’.

“The question with the best score overall indicating a current strength in the industry is ‘Product Reliability’,” he says. “Those questions that scored worst point to areas in which the Rental members require more effort and input from the manufacturers and relate to ‘Technical Training and Regular Technical Representative Contact’ as well as the ability to provide appropriate support in integrated processes such as IT system links.

“Manufacturer labour rates showed a marked decline in score since the last survey, reflecting the increased economic pressures everyone is currently under.”

The Leasing and Fleet Management top position remains unchanged from last year with Nissan in first place albeit at a much reduced margin with only 0.6 percentage points splitting the top three.

“The support provided to these SAVRALA members at a dealer level was recognised as being the only area that showed any real signs of improvement over last year’s scores,” says Calcutt. “Communication and marketing, including pre-launch product information is one area that is deemed to be critical, enabling members to be in a position of knowledge and providing the ability to quote and sell new product when it is launched.

“It is unfortunate this question is one that often receives the lower scores and only 7 out of the 22 manufacturers included in the survey managed to score above 50% for ‘Manufacturer Contact’.

“The willingness and amount of effort that goes into completing this survey by the different SAVRALA rental and fleet management companies, as well as the acceptance, input and feedback from the different motor manufacturers, goes a long way in strengthening the relationships between these business partners.”

Paul Pauwen, president of SAVRALA, says: “The past 12 months have been challenging on all fronts. In a nutshell, it is safe to state the world will never be the same.

“South Africa has also changed tremendously. It is nevertheless a testimony to the strength of our institutions that the changes have been democratic and our economy has been resilient in the face of a potential global collapse. In fact, at the risk of sounding over optimistic, it seems that South Africa is, once again, weathering the storm better than most countries and I am hopeful that will see an improvement in business confidence in the near future.

“Significantly I am also proud to report that, thanks to Sarel Visagie, the SAVRALA Academy will soon be a reality. It will offer upgraded levels of qualifications in fleet management and updated rental modules will also be made available.

“At the risk of stating the obvious, vehicle manufacturers and importers are key partners of our businesses and I’d like to think that the association provides a good platform to promote sound relationships. In 2009 we plan to introduce into the questionnaires a section relating to the BBBEE scorecard.”

.

Overall Silver & Rental Silver Awards
Hyundai Automotive of SA
Overall Bronze & Leasing Bronze Awards
General Motors SA

Leasing Gold Award
Nissan SA
Leasing Silver Award
Ford Motor Company of Southern Africa

Rental Bronze Award
Honda SA

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Many thanks to all the motor manufacturers and importers for their generous support of the 2008 SAVRALA Manufacturer of the Year Awards

SAVRALA sets the record straight on roadside arrests

September 2008

The Southern African Vehicle Rental and Leasing Association (SAVRALA) wishes to advise the public that an email headed ‘Roadside Arrest on Outstanding Fines’, which is currently being circulated on an association letterhead, contains certain information that is factually incorrect.

SAVRALA is a trade association representing the majority of South Africa’s vehicle rental, leasing and fleet management companies and according to current president Paul Pauwen, in the course of 2005 the misleading email was distributed to association members by SAVRALA’s car rental general manager at the time.

“Within minutes however, the inaccuracies were brought to his attention and the communication was immediately revoked. Unfortunately as it went out electronically it remains in the public domain and continues to resurface periodically,” explains Pauwen.

Pauwen says that in tandem with the Johannesburg Metro Police Department (JMPD), SAVRALA has recently published a brochure headlined ’Traffic Fine? Arrest for Contempt of Court?

Traffic-related issues covered include:
• What to do in the event of a traffic fine or arrest for contempt of court
• How to re-direct or re-issue a fine
• Where and how to pay a traffic fine
• Registration and licensing issues
• www.payfine.co.za - view and pay your fines

The document provides contact numbers for JMPD car registration and licensing authorities, JMPD pay points, accident enquiries as well as for the fraud and corruption hotline.

“As it was initially developed with SAVRALA’s members top of mind, also included is a section that is particularly relevant to fleet owners and company proxies,” concludes Pauwen.

“Now available as a download from the association’s website www.savrala.co.za, the information it contains has gone a long way in setting the record straight and we believe that members of the public will find its clear and concise content extremely useful.”

Who’s driving 2010?

August 2008

It was on 15 May 2004 at the World Trade Centre in Zurich that FIFA President Joseph Blatter unveiled South Africa as the stage of the first FIFA World Cup to be held on African soil, sparking scenes of boundless joy among millions of South Africans on the country’s streets.

Four years on, on 14 May 2008, Blatter says that he is more determined than ever that the country will play “magnificent” host to the world in 2010 , stressing that he continues to have the utmost faith in South Africa’s capabilities to stage the event.

“It is a question of confidence and trust. Confidence and trust in a continent, and confidence and trust in a country like South Africa, a well organised country, able to organize this competition.”

Danny Jordaan, CEO of the 2010 FIFA World Cup Organising Committee South Africa says that that a key pillar of the 2010 event is to leave a lasting legacy that will be felt in South Africa and the rest of the continent long after the tournament has come and gone. “We want to leave world-class sporting infrastructure and facilities in our country and long-term jobs for our people. That process is well underway and we are well on target to meeting all our deadlines agreed with FIFA.”

To this end 2010 has been used as a catalyst to drastically improve the country’s infrastructure and, in particular, the public transport systems with R13.6-billion to be spent by the South African government on upgrading the long-term transportation facilities to be in place for fans in 2010.

(x-head) Implications for car rental sector
Just two years ahead of D-Day, there is valid concern that the host cities, provincial and national Departments of Transport may just not get it together in time – a concern shared by elements within FIFA according to a news item that aired on SABC 3 TV News on 7th May.

In a bid to get the heads up on the situation, the Southern African Vehicle Rental and Leasing Association (SAVRALA) invited independent transport consultant Richard Gordge to provide its members with a general overview of the scale of the 2010 event an outline of the overall transport plan, a breakdown of the travelling market and its demands as well as the level of interface between the public and private sectors. The need for improved co-ordination and closer involvement is dire he adds.

In a nutshell, Gordge is of the opinion that the car rental sector will have a “very substantial role to play in 2010” anticipating that the demand across certain self-drive and chauffeur-drive categories – as well as in-car navigation – “will be very high.”

(2008-05-SAV-Autonews-FIFA)

John Broadway departs for Perth

June 2008

John Broadway PictureJohn Broadway (previously managing director of ABSA Vehicle Management Solutions) has relocated with his family to Perth, Australia.

In recognition of his sterling commitment and service to SAVRALA over many years – five as president of the association – John was awarded a Certificate of Appreciation prior to his departure in May.

Congratulations to Keri Kirsten who has taken over the reins at ABSA Vehicle Management Solutions and is currently Chairman of SAVRALA’s Leasing Section.

 

 

SAVRALA’s 2008 Golf Day STEPS forward with R100 000

Thanks to the unprecedented support shown by SAVRALA’s members, the 2008 Community Outreach Golf Day held during April in Benoni, raised R100 000 for STEPS Charity.

In a letter of thanks to the association, Karen Moss, CEO of STEPS Charity said she has been amazed by the generosity shown over the past three years.

“It has been an honour to work with your association and members over the past three years and we are so pleased that the golf day has grown in stature and fundraising year-on-year. Without SAVRALA’s assistance, we would never have been able to achieve as much as we have been able to.

“Since receiving SAVRALA’s first donation in February 2006, some of our milestones to date include:

  • 2006: 1st Ponseti clubfoot seminar – Focus on paediatric orthopaedic surgeons
  • 2007: 2nd Ponseti clubfoot seminar – Focus on Public Health
  • 2008: Johannesburg Hospital Ponseti Clubfoot Clinic Project
  • 2008: 1st Annual Clubfoot awareness week 3 – 9 June (Started in SA, STEPS UK then joined us)
  • 2008 – Karen Moss nominated for Shoprite Checkers Woman of the Year (Health category)

“These are only the first steps in our long-term programme working with medical professionals to revolutionise clubfoot care for all South African babies, no matter their socio-economic status.

“As you may know, congenital clubfoot is more common in South Africa than the world average and there are around 2 000 babies born here every year that need treatment for clubfoot. Although we are encouraged by our progress, there is still so much more work to do with government as well as private and public health care facilities to ensure that the Ponseti method becomes the accepted standard for clubfoot.

“On behalf of the future generations of clubfoot babies of South Africa, STEPS extends our warmest gratitude to you and all the wonderful members of SAVRALA.

On a personal note, I am so touched by the fact that due to our combined efforts, so many babies have the chance for the pain-free and effective treatment that my husband Steve and I were able to get for our son Alex in the US.

We trust that we will have the opportunity to work with SAVRALA again in the future.”

The 2009 SAVRALA Community Outreach Golf Challenge is scheduled for February 2009.

Leasing legalities

January 2008

On the legislation front, the AARTO saga continued during 2007. Inconsistent application of the law between municipalities remained a problem in terms of ‘re-directing’ or ‘re-issuing’ of traffic fines into the driver’s name.

The major challenge for leasing companies remains the acquisition and maintenance of accurate and complete driver details in respect of all vehicles on fleet. While it is unclear when the AARTO will actually be implemented, it is clear that legal requirements are being more stringently enforced.

No movements occurred in Fringe Benefit Taxation legislation during 2007. However, SAVRALA submitted a letter to the National Treasury requesting a status update on the question raised by SAVRALA in 2006 of the possibility of tax relief being granted for actual business mileage claimed for a company car driver, as is the case for car allowance drivers. No response has been received to date.

Finally, the advent of the National Credit Act in June 2007 had little impact on the leasing industry

2007 and beyond – strengthening the relationship

Jan 2008

“At the macro level, the underlying business climate remains positive thanks to lively resources and infrastructure sectors. We would like to see government demonstrate more resolve in its war on crime as it could bite into business confidence,” says Paul Pauwen, president of SAVRALA.

“At our industry level, growth has been spectacular over the past couple years to the extent the pursuit of volumes might have been achieved at the expense of margins and, given the current state of the South African automotive market and the knock-on effect on residual values, a revisit of risk-reward profiles might be long overdue.

“On the traffic fines front, after successfully negotiating a good arrangement with the Road Traffic Management Corporation, our hopes were shattered when it decided not to ratify the agreement. We are nevertheless persevering in engaging constructively with the authorities and we have been promised our latest representations will be discussed this month.”

SAVRALA members are important contributors to the South African economy. Together they represent more than 90% of rental fleets and an even larger share of the leasing and vehicle management market. It is estimated next year the combined leasing and rental fleets will exceed 200 000 vehicles.

With 2010 in mind, the question arises as to whether there will be sufficient capacity to support rental fleets of more than 75 000 vehicles – particularly in terms of airport infrastructure, panel shops, parts availability, channels for disposal of used vehicles and the availability of human skills. The situation with respect to Kombi/minibus type vehicles is also an area of concern.

“Going forward it is necessary to raise the profile of SAVRALA even further, to the extent that eventually, authorities, corporate and leisure clients understand the benefits of prescribing membership of the Association as a pre-qualification criterion for tenders.

“A focus on strengthening our relationship with related industry bodies is even more relevant nowadays. We have so much in common and a stronger voice will be more effective when engaging with government. The need for a joint effort has become more apparent on the risk management front to help reduce accidents, fraud, abuse and theft of our vehicles. We must continue engaging with the relevant bodies in this regard.

“We must also increase the momentum in education, and skills development is a must to ensure successful transformation in our industry.”

(2008-01-Pres speech excerpts)

Traffic Fine Update

January 2008

Throughout 2007, the traffic fines project continued to demand significant resources, time and effort from the association and its members. Although progress may seem incredibly slow – even seeming to go backwards at times – SAVRALA has been able to ensure that the concerns of the industry are related to the correct authority. Furthermore, that these concerns are continually raised and addressed at every possible opportunity.

In brief, SAVRALA’s engagement at a very high level with the National Prosecuting Authority (NPA) resulted in the formation of a Technical Committee for Services and Procedures (TCSP) which the association has used as the primary vehicle to make progress regarding industry issues.

After successfully negotiating a good arrangement with the Road Traffic Management Corporation, our hopes were shattered when the TCSP decided not to ratify the agreement. We are nevertheless persevering in engaging constructively with the authorities and we have been promised that our latest representations will be discussed at their next meeting to be held in November 2007.

The TCSP has issued guidelines and requirements which are difficult, if not impossible, for SAVRALA members to comply with albeit that they consistent with existing legislation. The association has presented alternative recommendations some of which have been accepted. The association continues to explore alternative avenues to address the recommendations that were rejected.

Prior to the full implementation of the new fines system, the Metros continue to collect fines, using an ever-changing and inconsistently applied set of rules. The scale of the problem is enormous with some estimates indicating that the car rental industry receives one fine for every three vehicles per month!

Given the inconsistency shown by the Metros, the implementation of ENaTIS will be beneficial for the industry – subject to the resolution of when the liability for the fine will transfer – which the car rental industry believes should be when the fine is redirected. To get approval on this is a key objective for SAVRALA.

SAVRALA and the Department of Transport (are discussing an interface between ENaTIS and the systems used by members to enable them to further improve the efficiency and application of the new system.

(2008-01-SAV-Traffic fine update)