Mercedes-Benz South Africa (MBSA) was seeking a multiyear port tariff deal from Transnet, rather than single-year discounts that had to be negotiated yearly, said MBSA president and CEO Dr Martin Zimmermann on Thursday.

He told Engineering News Online that intervention from government had resulted in “good, viable rates” for 2012/13, but that there was nothing in place yet for 2013/14.

“We are making progress, but have not yet agreed on a long-term fee model.”

Zimmermann said MBSA was also in continued discussions with Transnet on the creation of a reliable railway connection between East London and Johannesburg.

“This is key for us.”

MBSA currently used the road network to transport its components and cars between the two hubs.

Zimmermann said the local arm of the German manufacturer would also – ideally – like to see reliable railway connections between its East London plant and its two main supply centres of Durban and Cape Town.

“These discussions are also progressing, but not necessarily at the speed we want it to happen,” said Zimmermann.

STRIKE EFFECT
MBSA’s plant staff would work two twelve-hour shifts a day for the next six to seven weeks in an attempt to make up production lost during the recent seven-week strike in the local automotive industry.

“We hope to have no lost units. We think we can get 100% back,” said Zimmermann.

He said production at the East London plant would reach more than 50 000 units this year.

Production would shut down mid-November as the plant geared up to assemble the next-generation C-Class.

Production of this model would start in January.

Zimmermann said the new C-Class would be launched in South Africa in June.

Exports from the local plant would no longer go to the US, he added, as this country now had its own C-Class plant. East London production would go to Europe, Japan, Australia and some Asian markets.

Production of the new model would increase from the current 250 units a day, to 420 units a day.

MBSA brought seven new suppliers to South Africa for the production of the new C-Class.