State-owned company Transnet has compiled a list of strategic projects to improve its service to the local auto- motive industry, with a number of these focused on the operations of Mercedes-Benz South Africa (MBSA), says MBSA manufacturing VP Arno van der Merwe.

He notes that the local arm of the German Daimler group wishes to see an improved infrastructure link between the Eastern Cape and the country’s economic hub, Gauteng, with rail just one such opportunity.

MBSA also wants to see a more efficient logistics corridor between East London and Port Elizabeth, with options that could include improved rail, road and sea transport. The Port Elizabeth region is another of South Africa’s automotive production sites, housing Volkswagen and General Motors and their component suppliers.

“We would also like to see an overall improvement in the efficiency at ports, especially in the rates structure. We cannot depend on the current system of rebates forever,” says Van der Merwe.

He adds that the East London car terminal will also need to expand its capacity to cater for the almost doubling in production planned at the MBSA plant, following the introduction of the new C-Class model.

MBSA built a record 65 000 vehicles at its Eastern Cape plant in 2012, with 60 000 of these vehicles being C-Class models. Out of four C-Class models, three were exported to the US, says MBSA president and CEO Dr Martin Zimmermann.

The new-generation C-Class will start production in 2014, with “more than four out of five exported once we ramp up to 100 000 units a year”.

The new C-Class will be exported to Japan, other Asian markets and some European markets and no longer to the US. Local assembly of the vehicle will see a more-than-R2.5-billion investment in the local operation, funded by MBSA.

While the global Daimler group had an excellent 2012, with vehicle sales at 2.2- million units, up from the 2.1-million seen in 2011, MBSA could not quite mirror the success of its parent company.

Revenue was down to R33.8-billion in 2012 from R34.9-billion in 2011, with passenger car, bus, van and truck sales down to 30 269 units in 2012 from 32 029 units in 2011.

Zimmermann describes 2012 as challenging for MBSA, with passenger car product availability an especially big problem for the manufacturer. It had little A-Class stock available during the second half of the year, for example.

However, 2013 will see the company launch several new products that could lead to it regaining some lost volume.

The new compact A-Class will make its debut in April this year, with the veil on the new CLA to be lifted towards the end of the year at the Johannesburg International Motor Show. The new E-Class cabriolet, coupé and saloon are set for introduction in June and July, with the new S-Class coming out in October.

The new GL sports utility vehicle is also on its way to South Africa, as is the new Sprinter van.

On the truck front, the Actros truck is set to receive new hypoid axles, which has achieved “excellent results” in reducing fuel consumption during local test cycles, says MBSA commercial vehicles VP Kobus van Zyl.

Zimmermann is especially positive that the new A-Class will attract new, younger customers to the Mercedes-Benz brand.

He adds that MBSA has not experienced negativity from its parent company about the future of South Africa following the recent labour upheaval seen in the country.

However, he notes that the company’s management makes an effort to bring their German counterparts to South Africa to ensure a first-hand experience of the country. He says that looking at South Africa from “far away” can be “frightening”.

Van der Merwe adds that South Africa is just one of many “complicated” places in the world right now and that investment decisions will be made on competitive factors such as costs and infrastructure, rather than emotion.

However, he adds that it is important for South Africa to “pull together”, and build “long-term sustainability”.