MBSA seeking multiyear tariff deal with SA ports
Mercedes-Benz South Africa (MBSA) is seeking a multiyear port tariff deal from Transnet, rather than single-year discounts that have to be negotiated yearly, says MBSA president and CEO Dr Martin Zimmermann.
He says intervention from government has resulted in “good, viable rates” for 2012/13, but that there is nothing in place yet for 2013/14.
“We are making progress, but have not yet agreed on a long-term fee model.”
Zimmermann says MBSA is also in ongoing discussions with Transnet on the creation of a reliable railway connection between East London and Johannesburg.
“This is key for us.”
MBSA currently uses the road network to transport its components and cars between the two hubs.
Zimmermann says the local arm of the German manufacturer will also like to see reliable railway connections between its East London plant and its two main supply centres in Durban and Cape Town.
“These discussions are also progressing, but not necessarily at the speed we want them to happen,” says Zimmermann.
Strike Effect
MBSA’s plant staff will work two 12-hour shifts a day for the next few weeks in an attempt to make up production lost during the recent six-week strike in the local automotive industry.
“We hope to have no lost units. We think we can get 100% back,” says Zimmermann.
He says production at the East London plant will reach more than 50 000 units this year.
Production will shut down mid-November as the plant gears up to assemble the next-generation C-Class.
Production of this model will start in January.
Zimmermann says the new C-Class will be launched in South Africa in June.
Exports from the local plant will no longer go to the US, he adds, as that country now has its own C-Class plant.
East London production will go to Europe, Japan, Australia and some Asian markets.
Production of the new model will 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.
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