https://www.engineeringnews.co.za

Rail investment to take toll on 2013 extra-heavy market, says UD Trucks

15th January 2013

By: Irma Venter

Creamer Media Senior Deputy Editor

  

Font size: - +

This year could be a further growth year for the truck industry in South Africa, with sales expected to increase by 3% over 2012, to reach 28 114 units, said UD Trucks Southern Africa (UDTSA) corporate planning and marketing GM Rory Schulz on Tuesday.

The truck market numbered 27 296 units in 2012, up 3.7% from 2011’s 26 302 units. Truck exports from South Africa were up 32.9%  in 2012, to 1 065 units.

Schulz said the South African truck market was unlikely to again see such rapid growth as prior to the global economic crisis in 2008 and 2009, but added that the current growth pattern “was more sustainable and realistic, making planning easier”.

South Africa’s truck market reached 37 059 units in 2007.

2013 would not be a great year for extra-heavy trucks, however, warned Schulz, as the meagre, below-market gains of 1.2% growth last year were likely to be erased, with this segment of the market expected to contract by 2.4%.

This move, said Schulz, could be attributed to developments in the rail sector, actively fighting to lure back freight from road transport operators.

“What we see is a healthier shift in goods moving to rail.”

Schulz added that the muted fortunes of the extra-heavy segment in 2012 had been helped along by the opening of Transnet’s new R23-billion multiproduct pipeline from Durban to Gauteng, which had eaten into fuel tanker demand.

He said there was no reason for truck operators and suppliers “to panic” about the resurgence of rail in South Africa as freight operator Transnet moved to re-invest in South Africa’s rail sector. He warned, however, that market dynamics would change.

“We need to support that shift in transport logistics in South Africa when we do our planning.”

UDTSA expected South Africa’s heavy truck market to grow by 6.1% in 2013 over 2012, the medium truck market by 7.8% and the bus market by 5.3%.

The local arm of the Japanese truck brand was hopeful of a stable year in 2013, following on from its own sales contracting by 7.4% to 2 992 units in 2012. However, UDTSA ended the year as the country’s top truck exporter, at 245 units.

Schulz believed that 2014 would be a stronger year for UDTSA, part of the global Volvo group, as it would start the introduction of an entirely new product line-up, aimed especially at the value-plus market, through to 2017.

UDTSA MD Jacques Carelse added that UD Trucks positioning within the Volvo group was as the “smart, modern, Japanese value brand”.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Vikela Aluvin (Pty) Ltd
Vikela Aluvin (Pty) Ltd

Complete range of security sealing solutions including security seals bags and labels.

VISIT SHOWROOM 
Sulzer Pumps (SA) (Pty) Ltd
Sulzer Pumps (SA) (Pty) Ltd

Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.042 0.851s - 122pq - 2rq
Subscribe Now