Page 26 - Logistics News - Issue 02 - 2024

T O T A L C O S T O F O W NE R SHIP

TCO White Paper aims to shift

mindsets in transport industry

Michelin has released its latest research – Unlocking the Power of TCO (Total Cost of Ownership):
A Fleet Manager’s Guide to Efficiency and Sustainability – with the aim of shifting the mindsets of
South African transporters to run more efficient and sustainable fleets.

he 2023 Decarbonising South Africa’s Transport Fleet owners calculate the cost per kilometre (CPK)
Sector report noted that in South Africa, transport is to optimise tyre expenses. They achieve this by selecting
Tthe third largest emitting sector, with almost 55Mt durable tyres that can be regrooved or retreaded for reuse.
of CO emissions contributing more than 10 percent to the This has been found to be an impractical way of measuring
2

country’s national gross emissions. This is true globally – the true impact tyres can have on a fleet business.
the transport sector is one of the significant contributors to

greenhouse gas emissions, with most transport today still By choosing quality tyres with a low rolling resistance is
running off internal combustion engines powered by fossil one major way to reduce fuel consumption. A transporter
fuels. who can reduce rolling resistance by 1kg/t for a 40-ton truck
can save more than two litres of fuel every 100km. To put
Many transport operators in the country are dealing things into perspective, a fleet of 50 trucks can save

with a unique set of challenges, which include the R1,331,050 annually (at current rates and costs) by upgrading
rising cost of fuel, load-shedding, safety and security as from grade B to grade A tyres with a low rolling resistance.
well as other logistical issues. The reality is that many
transport operators – especially the small to medium- “We know that the carbon tax is coming and this will be

sized operators – have not yet begun to think about another operating cost that fleet operators must factor in.
how they can run fleets that are efficient, profitable and For smaller fleet operators who are currently under financial

sustainable. pressure, now is the time to manage their operating costs
in a smart, holistic and sustainable way. Essentially, we are
“Currently, transport owners are not managing the helping transporters solve tomorrow’s problems today,”
operating costs of their businesses in a holistic manner. continues Lensley.
By looking at the cost of fuel, driver salaries, maintenance
and repairs, purchasing or renting a truck and the cost of Michelin Connected Fleet helps transporters measure
purchasing tyres individually, transport owners are unable their carbon emissions by harnessing advanced systems to

to see how these often disparate parts of the business provide real-time data insights, allowing fleet operators to
can impact each other and be managed better to reduce make smarter, more informed decisions that contribute to
operating costs and improve sustainability,” comments sustainability and efficiency.

Charl Lensley, B2B Director for the truck and bus division at
Michelin. “Michelin has always been at the forefront of sustainable
and safe mobility. We are excited to introduce the TOC
For example, an average of 30 percent of a transporter’s way of thinking to the local market to help fleet operators

operating costs are towards fuel consumption and 25 realise that they can truly operate efficiently and sustainably
percent towards salaries. What many transporters don’t – there no longer needs to be a trade-off,” adds Amaury
know is that purchasing the right tyres, which accounts for Vadon, Michelin’s MD for sub-Saharan Africa.
five percent of a transporter’s operating costs, can reduce

fuel consumption, time and money lost from breakdowns as Download the full White Paper here: https://pro.africa.
well as increase sustainability. michelin.com/en/michelin-insights/total-cost-of-ownership.

24 NO V E MB E R/D E C E MB E R 2024 www .l o g ist i csn e w s .c o .z a