Importance of Truck Safety Compliance- strides made by RTMS TruckX – 2017 Adrian van Tonder Chairman RTMS National Steering Committee

Agenda RTMS Definition Progress Overview – The view of RTMS Certified Companies Growth of RTMS in SA

The Road Transport Management System RTMS is an industry–led, government-supported, voluntary, self-regulation scheme that encourages consignees, consignors and road transport operators to implement a management systems standard with outcomes that contribute to preserving road infrastructure, improving road safety and increasing productivity. Key focus areas are: - load optimisation - driver wellness - vehicle maintenance - productivity

Practical requirements of RTMS

Brake & Tyre Watch Results Location Inspected Discontinued % City Deep 24 21 88% Middelburg 35 69% Centurion 41 17 42% Midway KZN 26 10 38% Kroonstad 8 7 92% Brackenfell, W. Cape 25 100% Pietermaritzburg 12 11 Port Elizabeth 15 6 40% Rustenburg 5 72% Polokwane 91% 20 83% Bloemfontein Nelspruit/Komati 13 TOTAL (34 events) 692 474 68% 34 B&TW events from Feb. 2006 to date

Road Freight Challenges The Reality: A Culture of Non-compliance Inputs Overloading Poor vehicle fitness (servicing & maintenance) Poor driver fitness (fatigue, health, training) Reckless driver behaviour Border post delays Bribery & corruption – impact on compliant and non-compliant operators Inadequate periodic maintenance (roads) Outputs Poor road safety High cost of road transport/logistics Deterioration of infrastructure High levels of emissions

POST RTMS REVIEW Reduced downtime and increased fleet availability due to improved maintenance practices and scheduling. Reduced road accidents and insurance claim costs. Fleet expansion. Good operational framework to self regulate compliance to standards, requirements and legislation. Improved image as responsible service provider.

RTMS accreditation has become a requirement for all 3rd party transport contractors as well as SA operated sites within SAB Ltd. Accountability for activities Awareness and management of vehicle maintenance Awareness and management of violations Driver health and wellness Management capability & insight to business operations Improved productivity RTMS allows SAB to standardise operations across all contractors and brings a level of confidence that road safety is being managed proactively

Vehicle Maintenance Compliance 62% 96% Compliance with Speed limits When comparing the safety performance RTMS fleets to non-RTMS fleets, a substantial decrease in vehicle overloading incidents, over speeding incidents and accidents as well as an increase in fleet maintenance compliance and driver health & fatigue management can be seen   Pre-RTMS Post-RTMS Average Overloading 23% 2.5% Vehicle Maintenance Compliance 62% 96% Compliance with Speed limits 63% 97% Fatigue Management 54% 95% Medical Fitness 93% Driver Training 24% 92% *RTMS information supplied by RTMS National Committee The significant safety benefits arise from the improved design of the PBS combination in conjunction with self regulation systems required to operate PBS fleets (RTMS)

R 1,9 MILLION LESS ON INSUARNCE CLAIMS!! INSURANCE CLAIMS 2 YEARS PRIOR to RTMS. R2 500 017.51 2 YEARS AFTER RTMS. R 574 816.41 R 1,9 MILLION LESS ON INSUARNCE CLAIMS!! RTMS  

INCREASED DRIVER MORALS: Higher performance bonuses paid (lower diesel consumption). Constant management communication about RTMS processes. Less serious disciplinary actions required. Driver training program – led to better driving skills and improved job satisfaction. Measurable recognition program implemented.

BETTER MANAGEMENT OF DRIVER FATIQUE & OVER SPEEDING: Average continuous driving hours down from 6 to 3 hours. Average speed down from 82 km/h to 75 km/h. 33 % Reduction of traffic fines Diesel consumption 46.62 L/100km to 41.6 L/100km.

INTEGRATED BUSINESS PROCESSES: Interaction with ZZ2 Clinic for driver’s health management. New relationship with Pack houses ensure loading equipment is calibrated Better communication with the Marketing department Producing bigger payloads / minimize overloading

As a company making use of 3rd party haulers we have limited control over what happens outside the mine with our product. • RTMS is a verifiable management system. • As the system is self-regulatory accredited haulers shows a willingness to maintain and improve their operations, management and safety. • The contractor equipment is adequately maintained. • Operators work under a proper fatigue management plan. • Operators are properly trained and behaviour is monitored.

Benefits: Efficiency Improvements Fuel Consumption Improved from 17l/100km to 13l/100km Carbon footprint improved by 24% Cost savings on fuel =R5.7 Million Cost savings on repairs and maintenance =R4.2 Million (2016FY)

Benefits: Reduction in Traffic Violations and Accidents Traffic violations measured and monitored monthly Monthly reporting to management Driver training according to requirements Accidents and incidents measured and monitored monthly Monthly reporting to management Driver training according to requirements

24 abnormal load operators: Growth of the RTMS in SA 228 fleets representing over 11 000 trucks & buses (In 2007 their were 74 certified vehicles) Four bus operators: Buscor 420 buses Intercape 160 coaches GABS 1100 buses Intestate 237 buses (Bloem) 24 abnormal load operators: 258 vehicles Plant hire, construction, engineering, mobile cranes 2 commercial A/L operators (108 vehicles)

Crash rate of RTMS-certified fleets 2013/1: 24.1 million kms 2016/1: 94.2 million kms Estimated savings per annum: R 114.9 million

Effect of RTMS on compliance Com-pliant Non-Compliant Heavy vehicles > 25 tons (approx. 150 - 200 000)

Effect of RTMS on compliance Law Enforcement Com-pliant Non-Compliant Heavy vehicles > 25 tons (approx. 150 - 200 000)

Effect of RTMS on compliance Law Enforcement Com-pliant Non-Compliant RTMS-certified vehicles (over 11 000)

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