Parastatal Transnet has compiled a list of strategic projects to improve its service to the local automotive industry, with a number of these focused on the operations of Mercedes-Benz South Africa (MBSA), said MBSA manufacturing VP Arno van der Merwe on Tuesday.

Speaking to Engineering News Online at the MBSA East London plant, he noted that the local arm of the German Daimler group wished 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 wanted 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 was 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,” said Van der Merwe.

He added that the East London Car Terminal would 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 had built a record 65 000 vehicles at its Eastern Cape plant in 2012, with 60 000 of these vehicles C-Class models. Out of four C-Class models, three were exported to the US, said MBSA president and CEO Dr Martin Zimmermann.

The new generation C-Class would 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 would be exported to Japan, other Asian markets and some European markets and no longer the US. Local assembly of the vehicle would 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 described 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 would see the company launch several new products that could lead to it regaining some lost volume.

The new compact A-Class would 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, coupe and saloon were set for introduction in June and July, with the new S-Class coming in October.

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

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

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

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

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

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

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