Asset Tracking for Road or Rail & Why It Matters Now

With the ever-increasing demand for logistics and transport, the need for asset tracking follows closely behind. But, what if there’s a chance that rail transport will be making a reappearance on the transport stage? 

Find out more about the possibility of rail transport infrastructure development, how it can affect your business, and how asset tracking for road or rail remains a crucial part of any transportation business. 

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The importance of asset tracking for road and rail

In short, asset tracking is the ongoing management of your business’s assets; these don’t have to be vehicles.

• For example, in the logistics industry, valuable assets that benefit from tracking include containers or industrial racking used to transport goods. Monitoring these assets keeps tabs on the containers and the goods inside.
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• What makes asset tracking especially handy is when companies lease out equipment and need a way to monitor it while it’s not in the hands of the owners. Even with car rental, tracking the vehicle’s movements can help protect the rental company from theft or loss due to fraud, theft, or hijacking.
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• Tracking your assets helps you run an efficient inventory management system, is a great help in keeping you on top of your assets’ condition and when they may need maintenance and can be a huge help in giving you valuable data about its life cycle so you can finetune future asset handling and other related processes.
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• Theft, hijacking, and looting are among the most common incidents targeting assets in transit and fleet vehicles transporting goods on South African roads. These criminal activities can devastate a company’s bottom line, which is why asset tracking is crucial in proactively stopping asset theft or loss.

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Proper asset tracking requires proper asset management: here’s the what, why, and how

Asset management can refer to both managing physical and financial components within a business, but the physical asset management of fleet vehicles and equipment is what’s related here to asset tracking for road and rail. 

Keeping an eye on your assets definitely helps you feel more in control of their security, but the best thing about asset management is that when you zoom out and get a proper overview of your entire operations, proper asset management has the power to make notable changes holistically.

Here are some ways asset management stretches even further to benefit your business. Asset management helps ensure that performance improvement initiatives are collaborative efforts across your business's strategic, tactical, and operational levels:

• Increased production: Why would any business say no to increased productivity? If you can be more productive without spending extra, you may start reaping the rewards way sooner than you think.
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• Improved availability: If you know where your assets are, it’s so much easier to plan and increase availability proactively. For example, let’s say you have 50 generators at different sites, and you have a new lease request. By not only looking at the availability of your assets but also at their location, you can deliver an available generator closest to the customer, delivering fast and efficient service by making sure you always know the location of available equipment.
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• Reduced operating costs: Knowing where your vehicles, equipment, tools, and other inventory are can optimise your business and productivity in so many ways, which automatically leads to reduced operating costs. Knowing in which direction equipment is moving helps you plan ahead and schedule more jobs in that area. With the equipment already in the vicinity, you don’t have to worry about transport costs, reducing what you spend on operations.
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• Increased asset effectiveness: Asset tracking helps you optimise the way you use your equipment in more ways than one. For example, let’s say a local manufacturing company called Jones & Co starts using an asset tracking system because they want to see an improvement in their business’s ROI. Asset tracking effectively helped the company monitor asset performance and usage so they can pinpoint assets that are underutilised, resulting in reduced downtime, streamlined operations, and the increase in profits they were hoping for.

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The importance of asset tracking for proper asset management

In South Africa, we’ve become accustomed to most logistics and transportation directly linked to roads and motor vehicles like trucks and cars. However, asset tracking can also be linked to railway systems. If South Africa’s railway can redevelop into a feasible transportation mode for different types of cargo, asset tracking will still remain at the top of the priority list. 

Because of some obvious differences between road and rail transport, there might be some questions about their similarities and differences, so let’s take a quick look at these.

Are there differences between road and rail asset tracking?

The main differences and challenges between road and rail asset tracking are:

• Road Asset Tracking:
  
  Road networks are more extensive and are both centralised and decentralised, which can make asset tracking ideal for industries like door-to-door delivery while only partly so for cargo that needs to be transported cross-country or even cross-border.
  
  Apart from that, road transport is notoriously dangerous with risks of hijacking, looting, and high accident rates, making fleet driving jobs, especially for valuable goods and commodities, a high-risk job.
  
  This only increases the need for smart asset tracking as vehicles and equipment often leave centralised roads, which, without tracking technology, would make them disappear off the radar.
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• Rail Asset Tracking:
  
  Asset tracking via railway is in some ways less complicated as railways are centralised and ideal for transporting cargo cross-country or long-distance.
  
  While railways haven’t been used in South Africa to transport cargo for a while, a change may come soon, affecting how companies transport their manufactured goods.

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Is South Africa looking at a railway revival? Here’s what you need to know

Things seem to be looking up for South African railways, which have been neglected for decades. Many companies that rely on fleets and long-distance transport as an integral part of their business model may be heaving a sigh of relief, as the South African government is considering finalising a rail network improvement plan so cargo transportation, which is currently overburdening the roads, can be shifted to the railways. 

This is not only good news for transport-reliant companies like logistics, freight, and others but also for the South African economy, as it’s reportedly losing about a billion Rand per day due to the lack of railway transportation. With a 31,000 km locomotive network that needs drastic improvements and upgrades, the government has its work cut out. Here’s what happened and what the development strategy entails:

1. The Freight Road to Rail Migration Plan, hosted by the South African Department of Transport along with other industry stakeholders like Transnet and SANRAL, is one of the latest developments after the National Logistics Crisis Committee was assembled in 2023. The plan includes improving South Africa’s logistics crisis by encouraging the private sector to participate in improving rail networks and ports.
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2. Businesses have to deal with sky-high transport costs due to a lack of structural and operational railway maintenance. With the demand for cargo movement steadily increasing, a push toward revamping the railways becomes all the more urgent. The lack of railways and ports also reduces South Africa’s ability to compete as a prominent export country on the continent.
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3. There’s a lot of pressure on road transport, with about a third of long-distance freight being moved from railways to roads within the past five years and a whopping 87% of freight being moved on road networks by trucks. This only causes road damage but severe congestion, increasing the risk of accidents and unwanted harmful emissions. For example, road congestion was reported to have spiralled out of control at the Richards Bay port due to poor rail performance from Transnet Freight Rail’s coal corridor. Transnet had to block trucks and the City of Richards Bay threatened legal action against the port.

The roadmap estimates about five years to implement improvements to the South African railway system, which include:

• Creating more legislation for the road freight sector
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• Improving government regulation of the freight road sector with dedicated operational hours specifically for freight movement
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• Using PPS or public-private partnerships to improve rail infrastructure
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• Making sure there is a smooth skills translation from road to rail workers for improved labour capacity in the rail network.

If this roadmap goes as planned, South Africa’s road-based transport will affect all businesses involved, and it’s best to be informed and prepared. Here’s a helpful look at how road logistics currently affects South Africa’s economy and job market.

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How road logistics industries affect South Africa’s economy, sustainability, and industries that will benefit

With businesses relying heavily on road transport, the road logistics industry plays a key role in South Africa’s economic landscape and job market, contributing R270 billion to the country’s GDP. As the key mediator for commerce, trade, and connectivity, the absence of road transport would be the same as a pizza without a base. 

However, moving from road to rail won’t necessarily have a negative impact on the economy; businesses just need to know how they will be affected and how they can keep on protecting their assets on railway systems using proper asset tracking tools.

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Industries that will benefit from a shift to rail

If the focus shifts from road to rail in the transport industry, several industries will be able to benefit and use rail transport to simplify their transport operations.

1. The Manufacturing industry: The manufacturing industry is known for producing heavy and bulky goods not ideal for road transport. These heavy loads require high fuel expenses and, depending on the cargo transported, have a higher risk of falling victim to hijacking and accidents. As a massive industry in South Africa, these vehicles can cause frustrating road congestion.
   
   Rail transport simplifies the process by removing heavy vehicles from the road, resulting in better fuel economy and increased cargo safety.
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2. The Construction industry: Similar to manufacturing, the construction industry will benefit from using rail networks for transportation. Building materials like steel and aggregates are also heavy and bulky, and rail transportation just makes it that much easier. With a well-developed rail infrastructure that spans different regions in the country, companies can expand their business without drowning in fuel costs.
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3. The Retail and Consumer Goods industry: Because railway networks are centralised, they’re perfect for transporting consumer goods like electronics, food, and other items from production sites to distribution centres, cutting out unnecessary road transport. All that road transport now requires is to deliver stock to specific sites like retail outlets, making it much more convenient and cheaper for consumers to get goods on the shelves.
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4. The Freight and Logistics Industries: why would you go road in freight and logistics if you can save on costs, increase your capacity, and lower your company’s harmful emissions? When it comes to managing goods transportation, taking the most convenient and cost-effective option is a no-brainer, and if South Africa gets their rail networks up and running again, it will be the first choice for these industries.

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How the shift towards rail transportation helps the environment

With so many sectors heavily relying on road transport, it’s no surprise that South Africa is one of the countries with the highest CO2 emissions in the world. The South African government plans to reduce the national CO2 levels by 42% in 2030; however, one of their main obstacles to achieving this goal is the transport sector, including freight and passenger transportation. 

Rail transport produces notably fewer carbon emissions and other air pollutants than road-based transport. This is the main reason why a shift towards rail transport is one of the most important steps the government needs to take to achieve its 2030 sustainability goal, and as it also offers many benefits for the transport industry, looking at rail asset tracking can help you make a seamless transition from road to rail.

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Road vs. rail: the pros and cons

When switching to rail transportation, Cartrack can make this one of the easiest transitions with the most advanced technology available. So, while asset tracking isn’t something you should be concerned about, there are some things you need to consider if you’re still on the fence when it comes to road or rail.

Road pros and cons

While road transportation does have its conveniences, there are also downsides. Here they are in a nutshell for your convenience:

1. Can lead directly to pickup and dropoff points
   
   Road transportation lets you take cargo or assets to the customer or recipient’s doorstep. Even though delivery companies can use rail networks for long-distance goods transport, road transport from this perspective is not only a pro; it’s essential.
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2. Doesn’t require an extra transportation mode
   
   If you’re doing road only, there’s no on-and-offloading from one transportation mode to another that may pose extra risks like asset damage, loss, and theft.
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3. It already exists
   
   You know it, and we know it—the road networks are already there, and while they may not be in perfect condition, it’s a pre-laid-out, functional route you can use without having to wait for infrastructure development.

The cons of road transportation are no secret, but it’s important contextually to look at the big picture:

• Poor road conditions: From potholes to a lack of paintwork, broken streetlights, and no road signs—drivers literally need to be streetsmart to navigate South African roads.
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• Drivers need to rest: Road transportation is often long-distance, leading to driver fatigue and overworked staff that leaves you with higher risks for accidents and irresponsible driving.
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• Risk of accidents and hijackings: South African roads are dangerous, and drivers cannot always avoid hijacking hotspots. Additionally, if a vehicle gets stranded due to a fault or accident, both the driver and assets become sitting ducks for crime and looting.

Rail pros and cons

1. Cost effectivity: According to studies, switching long-haul freight from road to rail transport can help your business save from 10% to a whopping 40% in costs. Add asset tracking, and you’ve got the ultimate roadmap to cost-effectivity.
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2. Safety: As previously mentioned, rail transport helps you avoid all the road transport-related risks like road accidents, hijackings, lootings, and other crimes.
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3. Long-distance convenience: Rail transport helps your assets travel further for less while enabling you to transport more cargo at a time.

In the end, no matter whether you choose road or rail, asset tracking is one of your biggest allies in improving your business operations holistically. Here’s how Cartrack’s advanced tracking and asset monitoring technology helps your business reach new, more profitable heights.

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No matter road or rail, Cartrack turns asset tracking into your business’s biggest profit-boosting asset

Don’t lose visibility of what keeps your business running; let Cartrack offer you a comprehensive asset-tracking product designed to optimise every part of the process and help you get the benefits and increased ROI your business deserves, whether you’re using road, rail, or both.

• Cartrack’s asset tracking software is conveniently located on the Cartrack fleet management platform and, by connecting with the GPS tracking devices attached to your assets, allows you to track your assets in real time conveniently. Our asset-tracking features allow you to:
  
  
  1. Run real-time diagnostics for proactive decision-making and troubleshooting
  2. Receive live alerts when fault-codes are triggered
  3. Optimise asset longevity with smart algorithm-based maintenance alerts
  4. Let your productivity shoot through the roof with remote scheduling based on asset location that allows you to calculate utilisation rates so you know when to reallocate or purchase new equipment.

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Contact us and start tracking your assets on road and rail

You now have a heads up about future rail development, but don’t wait for that to happen. Ensure the safety of your assets and the success of your business today.

‍Contact Cartrack and start building your business’s success.

Contact Cartrack today and get increased visibility with instant peace of mind.