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Water Meters, Manhole Tamper, Assets In Transit, And Driver Behaviour

Presented to SqwidNET 31 August 2018

2

Table of Contents

MANHOLES 5

WATER METERS 12

FLEET 19

APPENDIX 39

GOODS IN TRANSIT 22

DRIVER BEHAVIOUR 30

EXECUTIVE SUMMARY 3

3

• The number of manholes deployed

has grown by 1.9% over the period

2016 – 2018. To date there are over

2 million sewer and stormwater

manholes across South Africa's

eight major metropolitan

municipalities and over 320

thousand network provider

manholes, accounting 35% and

59% of their respective totals.

Several municipalities and network

providers don‟t have a full view of the

number of manholes they have.

• There is a rising prevalence of cast

iron manhole cover theft.

Municipalities do not have digital or

smart platforms to monitor their

assets.

• Manhole cover providers are

exploring innovative solutions to

minimize the risk of theft of covers.

Manhole Covers

Executive Summary

• The number of meters deployed has

grown by 1.6% over the period 2016

– 2018. To date there are over 3.5

million water meters across South

Africa's eight major metropolitan

municipalities, accounting for 40%

of the country’s total.

• Utilities and municipalities are

exploring using IoT in smart metering

to measure and control household

water consumption. However this

has been subdued due to cost

implications especially in smaller

municipalities.

• Sub-metering will drive new meter

deployments within municipalities.

This presents a greater opportunity

for smart water solutions with large

housing complexes and enterprises

than with municipalities.

Water Meters

• Commercial fleets are mainly owned

by businesses to carry out their

operations, with the remainder of

fleet owned by rental companies.

• CV telematics is on the rise, and

expected to reach 1.9 million units

by 2021.

• Telematics systems allow fleet

owners to operate more efficiently,

and reduce cost of operations. Fuel,

driver wages, maintenance, and

tires, together hold about 62% of the

total cost of operation; a „Connected

Truck‟ plays a huge role in

significantly optimizing these factors.

• Future joint ventures/partnerships

are expected between vehicle OEMs

and aftermarket vendors, becoming

preferred fleet management partners.

Fleet

4

Introduction

Project objectives

The objectives of the project were to determine the market size for manholes and water meters in eight of South Africa‟s metropolitan

municipalities. The manhole numbers were to include those of telecommunication service providers in these municipalities.

Additionally, the research endeavoured to understand the market dynamics for goods in transit and driver behaviour by delivery vehicles

(light, medium and heavy commercial). This research also included the number of vehicles per vehicle segment, overall volume estimate

and the number of average trips and the kilometres an average vehicle completes per annum.

The final component of the research was to identify and provide the market share of the key stakeholders within these focus sectors.

Project Approach

Data was collected through secondary information sources and primary interviews with the eight municipalities, telecommunication,

manhole, water meter, telematics and logistics services providers. The data collected was then cross validated to sense check for

accuracy. Over the six week period there were more than 70 primary interviews conducted.

Project Scope

For goods in transit and driver behaviour, the project scope looked at the dynamics within the whole of South Africa, whereas data

collected for manholes and water meters looked at the major metropolitan municipalities in South Africa, namely:

• Buffalo City Metropolitan

• City of Cape Town Metropolitan

• City of Johannesburg Metropolitan

• City of Tshwane Metropolitan

• Ekurhuleni Metropolitan

• eThekwini Metropolitan

• Mangaung Metropolitan

• Nelson Mandela Bay Metropolitan

MANHOLES

6

Manhole Cover Market Dynamics

Market Dynamics

Municipalities are facing budgetary constraints to monitor and replace stolen manhole covers,

leading to a growing number of human casualties.

Municipalities do not have digital or smart platforms to monitor their assets for

inventory, tamper detection and maintenance purposes and rely on physical count.

Manhole cover providers are exploring innovative solutions to minimize

the risk of theft of covers, including moving away from cast iron

manhole covers to polymer concrete covers.

There is a growing prevalence of cast iron manhole cover theft across both the large and small municipalities,

which are then sold on the black market for scrap metal.

Source: Frost & Sullivan

7

Number of Manholes

Municipality 2018 Percentage

Buffalo City 62 428 1.0%

City of Cape Town 386 806 6.3%

City of Johannesburg 502 445 8.2%

City of Tshwane 282 001 4.6%

Ekurhuleni 316 258 5.1%

eThekwini 374 532 6.1%

Mangaung 69 947 1.1%

Nelson Mandela Bay 174 534 2.8%

Other Municipalities 3 982 186 64.7%

Total 6 151 137 100.0%

Number of Manhole Covers by Municipality, South Africa,

2018 • The number of manholes deployed has grown by

1.9% over the period 2016 – 2018.

• A lot of the spend on manholes comes from

growth in the population sizes and replacement of

stolen and vandalized covers.

Manhole Covers, South Africa, 2016-2018


5.9

6.0

6.2

5.7

5.8

5.9

6.0

6.1

6.2

2016 2017 2018

Nu

mb

er

of

Ma

nh

ole

C

ove

rs (

Mil

lio

n)

Year

8

Manholes by Type

Sewer The rising population particularly

in the metros is driving investment

in sewer pipes and manhole

covers.

01

Stormwater Stormwater manholes have been

a major priority especially for the

larger coastal cities who face

floods.

02

Telecoms Larger cities (CoJ, CoCT) have

more telecoms infrastructure and

manholes due to wider metro and

operator fibre networks.

03

Sewer (49.5%)

Maintenance of manholes is making up a growing portion of water and sanitation budgets within municipalities.

Telecoms (8.9%)

The eight metros combined have more telecoms manhole than the rest of South Africa.

Stormwater (41.6%)

The major metros have faced heavy financial losses recently as a result of flooding.

6.2

Million

Manhole

Covers


9

Competitive Landscape

19%

17%

17%

15% 8%

7%

17%

Manholes 4 Africa

Aveng

Maverick Trading

Saint Gobain

National ManholeCovers

Manhole Covers

Other *

*Others include Rocla, Fiberite, S Systems, GCT Fabricators

• South Africa‟s manhole cover market is fairly

competitive, with the smaller providers having a

regional focus, whereas larger providers operate

nationally.

• Some of the larger providers such as Aveng and

Saint Gobain have a primary focus in other areas of

industry, mainly in construction.

• The larger providers have national coverage, which

makes them an ideal partner for track and trace

solutions because of their large footprint and

access to large municipal clients in the Road &

works and water & Sanitation departments.

• Others such Manholes 4 Africa (a subsidiary of

Civilworks Group) and National Manhole Covers

have a strong presence across the country.

Manhole Cover Market Share, South Africa, 2018


10

Network Operators Fibre Size (km) Long-Distance Fibre Metro + Last Mile Access

Telkom 157,000 X X

Liquid Telecom / Neotel 16,000 X X

Broadband Infraco 15,000 X

Dark Fibre Africa 13,000 X X

Vumatel 8,000 X

FibreCo 4,000 X X

NLD 3,600 X

Eskom 5,500 X

Manhole Covers: Key Clients

Metros Sewer Manhole Covers Stormwater Manhole

Covers Fibre Manhole Covers

City of Cape Town 201 000 116 719 69 087

City of Johannesburg 262 800 160 600 79 045

eThekwini 140 000 106 099 53 509

City of Tshwane 170 316 150 707 35 902

Buffalo City 28 800 25 600 8 028

Ekurhuleni 144 432 128 384 43 442

Mangaung 31 248 27 776 10 923

Nelson Mandela Bay 80 472 72 000 22 062


11

Manhole Covers: Leading Service Providers

Service Provider Cast Iron Ductile Iron Concrete Polymer Composite

Manholes 4 Africa X

Rocla X X

Aveng X X

Maverick Trading X

Saint Gobain X X

National Manhole Covers X

Fibrite X

S Systems X X X

GCT Fabricators X

Incledon X

Primus and Wuzland X

Cape Concrete X

Fab Manufacturing X

Salberg X

United Manhole Covers X

Service Providers by Manhole Cover Product Types, South Africa, 2018


WATER METERS

13

Water Meter Market Dynamics

Market Dynamics

Sub-metering, which entails installing individual meters in housing and office complexes with

multiple units, will drive new meter deployments. This presents a greater opportunity for smart

water solutions with large housing complexes and enterprises than with municipalities.

Municipalities are moving towards prepaid and Advanced Meter Reading (AMR) as

they look to minimize their non-revenue water. Advanced Meter Infrastructure (AMI)

solutions may lead to job cuts as they eliminate the need for meter readers.

IoT applications will increasingly run on LPWAN technologies including

NB-IoT, LoRa and Sigfox, driven by the need for increased speed,

longer range, and higher power efficiencies.

South African utilities and municipalities are exploring the use of IoT in smart metering to measure and control

household water consumption and detect large leaks and inefficiencies. However, the high cost of smart

meters is expected to subdue the uptake these solution particularly among the smaller municipalities.


14

Number of Meters

Municipality 2018 Percentage

Buffalo City 120 000 1.4%

City of Cape Town 650 000 7.6%

City of Johannesburg 866 389 10.1%

City of Tshwane 461 400 5.4%

Ekurhuleni 524 520 6.1%

eThekwini 510 000 5.9%

Mangaung 139 469 1.6%

Nelson Mandela Bay 226 413 2.6%

Other Municipalities 5 083 780 59.2%

Total 8 581 971 100.0%

Number of Waters by Municipality, South Africa, 2018 • The number of meters deployed has grown by

1.6% over the period 2016 – 2018.

• New meter deployments in the long-term is

expected to be driven by sub-metering.

8.3

8.4

8.6

8.0

8.2

8.4

8.6

8.8

2016 2017 2018

Nu

mb

er

of

Ma

nh

ole

C

ove

rs (

Mil

lio

n)

Year


Water Meters, South Africa, 2016-2018

15

Water Meters by Type

Residential Municipalities are looking to adopt

smart meter solutions in order to

minimize non-revenue water.

01

Commercial As with the residential segment,

the spend on new meters will come

from private property owners due

to sub-metering.

02

Industrial and Bulk Industrial buildings are investing

in smart water solutions to

monitor and manage their water

consumption.

03

Residential 94.9% A lot of the residential meters are owned and maintained by the municipalities.

Industrial 0.7%

Industrial users are the largest per capita

users of water.

Commercial 4.4%

Commercial properties represent a growing

opportunity for smart water solutions.

8.6

Million

Meters


16


19%

14%

10%

10%

9% 9%

12%

17%

Elster Kent

Utility Systems

Lesira-Teq

Amanzi Meters

Protea Meters

Precision Meters

Sensus

Other

• Elster Kent is considered one of the leading

providers of water meters in the South African

market, with a share of 19%.

• This is followed by Utility Systems (14%) and

Sensus (12%) that have a strong presence in

eThekwini and City of Cape Town

municipalities.

• Though relatively smaller by market share,

Lesira-Teq is one of the few providers in the

market with Sigfox-compliant water meters

and focusing largely on smart water solutions

along with Kamstrup.

• While smart meter solutions are becoming a

growing trend globally, it is estimated that AMI

meters account for less than 5% of the total

deployed by municipalities. The municipalities

are increasingly deploying prepaid water

meters.

Water Meter Market Share, South Africa, 2018

*Others includes Aqua-loc, Kamstrup, Meter IT, Ontec


17

Water Meters: Key Clients

Metros Smart Meter Plans Sub-Metering Mandated Prepaid Meters

City of Cape Town

City of Johannesburg x

eThekwini x City of Tshwane x x

Buffalo City – x

Ekurhuleni – x Mangaung x x

Nelson Mandela Bay –

Already Implemented

– Under consideration / Pilot

x Not Disclosed

18

Water Meters: Leading Service Providers

Service Provider Water Meter type

AMR AMI Pre-paid

Elster Kent Smart Meter X X

Kamstrup (*) X

Utility Systems X X X

Lesira-Teq X X

Amanzi Meters X

Protea Meters X X

Precision Meters N/A N/A N/A

Sensus X X

Aqua-loc X

MeterIT X X X

Meter Man X X X

* Focuses mainly on AMI meters that is also compatible with drive-by AMR readings

FLEET

20

Market Definitions and Segmentations

Vehicle

Classification Definition

Gross Vehicle

Mass Rating

(GVMR)

Light Commercial

Vehicle

LCVs represent vans and light trucks. The typical applications include

pickup and delivery, utilities, airport operations, facilities management,

and several other vocational applications.

<= 3500 kg

Medium

Commercial Vehicle

MCVs represent all types of mid-size trucks and vans. Their typical

applications include home delivery, logistics, parcel delivery, utilities,

waste and recycle collection, airport operations, and small and medium

school and transit buses.

Between 3501

kg and 8500 kg

Heavy Commercial

Vehicle

This classification constitutes all types of large trucks. Their typical

applications include line haul freight trucks, refuse trucks, mining and

construction trucks, and other types of vocations that demand high

GVMR trucks.

Between 8501 kg

and 16500 kg and

GVMR >16500 kg


Rental Fleet Fleet owned by various rental companies, these are hired and utilised by businesses to perform

their daily operations. Rental contracts may last for one day to as long as 3 years.

Commercial Fleet Fleet that are owned by businesses to carry out their operations.

21

85%

15%

Commercial

Rental

70%

30%

Commercial

Rental

70%

30%

Commercial

Rental

97%

3%

Commercial

Rental

Fleet Segmentations

LCV MCV HCV Bus


• South Africa‟s fleet can be divided into commercial and rental. The contribution of rental fleet to LCVs accounts for only 3% of total

fleet. Within this segment of vehicles, individuals often opt to own these vehicles as they may be used for both personal and

business purposes.

• 30% of MCV and HCV fleet are owned by rental companies, and are hired and used by business for the distribution of goods. Rental

companies often specialise in certain vehicles depending on the various needs of customers within their geographic location. The

remaining 70% of MCV and HCV commercial fleet vehicles are owned by businesses.

• There are currently 63,000 busses in South Africa. Approximately 30,000 of these are used for public transport. The remainder of

these busses make up South Africa‟s commercial bus fleet. Busses are both owned by bus companies, such as Greyhound and

Intercape, and bus hiring companies

GOODS IN TRANSIT

23

Goods In Transit: Sector Segmentation

Volume Contribution of Transportable Goods Value Contribution of Transportable Goods

• South Africa‟s land transportable GDP consists of Agriculture, Manufacturing, and Mining.

• Manufacturing dominates both the volume and value contributions of South Africa‟s transportable goods. This is

followed by Agriculture. The mining sector remains a significant contributor to South Africa‟s economy, but only 20%

of this contribution is transported by road.

21%

51%

28% Agriculture

Manufacturing

Mining

13%

77%

10%

Agriculture

Manufacturing

Mining


24

Goods In Transit: Sector Segmentation

LCV MCV HCV

209 mt of Manufacturing goods distributed across

41.8mt 94.05mt 73.15mt

115 mt of Mining good distributed across

115mt

87 mt of Agricultural goods distributed across

17.4mt 69.6mt

• The transportable GDP contributions are made up of Agriculture, Mining, and Manufacturing, and are transported

across LCV, MCV, HCV vehicles.

• Agriculture utilises both MCV and HCV for distribution, whereas mining goods are only transported by HCV.

• Manufacturing, which is a broad industry, utilises a variety of vehicle types for the distribution of goods.


25

Agriculture Manufacturing Mining

Grindrod X X X

Cargo Carriers X X X

Shipping & General Transport X X X

FBN Transport X X X

Unitrans X X X

Transnet X X X

Fairfield Longhaul X

Imperial Logistics X

Bras Trucking X

Bigfoot Express Freight X

Wardens Cartage X X

MacDonald's Transport Group X X

Indigo Logistics X

Transitex X X

Reinhardt Transport Group X

Maxillaria Logistics X

NM Freight Logistics X

Imvusa Transport X

Transcor X

Consolidated Trucking + Logistics X X

The Interlogix Group X X

SG Coal X

Goods in Transit: Industry Players


26

0

500

1000

1500

2000

2500

0

20

40

60

80

100

2016 2017 2018 2019 2020 2021 2022

Reven

ue

pe

r u

ser

(ZA

R)

Reven

ue

(Z

AR

Bil

lio

n)

Revenue Average Revenue Per User

Goods In Transit: Last Mile Delivery

e-Commerce Revenue

2018: ZAR 47 Billion

Number of e-Commerce

Users: 30 million

DHL Fastway

RAM Aramex

Interlogix Bex Express

City Couriers Courier Guy

CitiSprint Courierit

Time Freight Globeflight

Skynet Fastvan

FedEx OneLogix

TNT Express Pargo

XINT DSV Group

UPS Courier Freight

Group (CFG)

Mr. D Courier Sendr

Picup Wumdrop

Industry Players

South African e-Commerce Industry, 2016-2022

Last-mile delivery is the movement of goods to end users, typically to a personal or

business address. These goods are typically moved from distribution/consolidation

centres.

Courier, Express and Parcel (CEP) are non-palletized products and shipments

weighing less than 32kg.

E-Commerce revenue is expected to grow at an annual growth rate of 13.2%, and reach

ZAR 78 billion by 2022.

Source: Frost & Sullivan Note: Exchange rate: 1 USD= 14.68 ZAR

27

Goods In Transit: Last Mile Delivery

• The distance travelled by a delivery vehicle depends on a

number of factors:

• The drop factor, which is the number of packages

delivered per drop.

• Package size.

• Vehicle used.

• On average, a delivery van delivers 50 parcels per trip.

• Motorcycles are also utilised by last mile delivery services,

such as Mr D, where the number of packages delivered per

trip would be significantly less, but trips would be made more

frequently.

• The last mile delivery space has been disrupted with

innovations such as drone delivery, and the “Uber” business

model where non-professional couriers are utilised to deliver

goods. These innovations are yet to disrupt the South African

market.

Average packages delivered per trip: 50

Average trips per day: 2

Average radius travelled per delivery

vehicle : 5-10km

It is estimated that 110 million packages are

delivered across South Africa per year. Last mile

delivery of packages is able to reach consumers via

trucks, cars and motorcycles.


28

Goods In Transit: Temperature Controlled Logistics

Dairy products

Such as milk,

Cream, butter,

Cheese,

Yoghurt and

Dairy beverages

0 to 7°C

Pharmaceuticals

Such as

Vaccines, Insulin's,

Cryoproducts

And thermolabine

products

0 °C to 8 °C

Frozen food

such as poultry,

Seafood, frozen

meals , frozen

fruit, veg and

ice cream

-18 to -28 °C

Processed food

such as fruit,

vegetables,

chocolate and

baked goods

-1 °C to 16°C

• The cold chain involves handling and management of sensitive products such as blood, biomedical

items, laboratory samples, vaccines, temperature-controlled drugs, meat fruits, vegetables, and

other perishable items.

• These critical items need to be continuously preserved in controlled and specific temperatures, else

they will be damaged.

• Complete traceability and visibility on all goods transported is crucial, specifically when items are

recalled. Goods should ideally be tracked from production or harvest up until consumption.

TCL requirements

for different end

user segments


29

• Imperial Logistics Fast „n Fresh is the leading provider of temperature controlled

transport and services in south Africa.

– The Fast „n Fresh arm of the company operate from depots across Cape

Town, Gauteng and Limpopo. It also operates from client sites across South

Africa.

– Key clients include McCain, Woolworths and Tiger Brands

• Aspen Logistics specialises in the Fast Moving Consumer Goods (FMCG)

industry, by provided temperature controlled transport.

– Their clients include a variety of Blue Chip companies which supply to major

retailers.

• Fairfield Longhaul specialises in refrigerated transport for the movement of

goods such as perishables, fish, meat and dairy.

– FairField Longhaul operate across South Africa

Imperial

Logistics: Fast ‘n

Fresh

DB Schenker

Aspen Logistics

(Barloworld) CCS Logistics

Laser Logistics

Bidvest

Panalpina

Logistics

LMC Express Röhlig-Grindrod

Sequence

Logistics DHL

Supergroup:

Digistics

Crystal Cool

Logistix

Express FZ

Logistics DSC

HFR Fairfield

Longhaul

Industry Players

Goods In Transit: Temperature Controlled Logistics


DRIVER BEHAVIOUR

31

Distance Travelled Per Fleet Segment

20,000km 30,000km 40,000km 50,000km 60,000km

HCV

Bus

MCV

LCV

• The average annual distance travelled by commercial

vehicles differs by vehicle segmentation.

• On average, HCVs travel twice the average distance

of MCVs, and three times as much as LCVs.

Average Annual Distance Travelled By Fleet Segment

Per Trip (km) Number of Trips Per Year

LCV 90 278

HCV 150 267

MCV 260 231


32

Commercial Vehicle Telematics: Market Dynamics

Market Dynamics

There are no mandatory regulations/government compliances in place within the CV industry.

Telematics deployment, mandated by the state, can act as a driver for the telematics industry. As

a result, the SA telematics market is largely influenced by precautionary rather than regulatory

factors.

Services covering features for anti-theft, driver behaviour, and productivity are

dominating and are the most preferred services among fleets in South Africa.

Approximately 1.3 million telematics units are installed in vehicles

across South Africa to date.

South Africa is expected to experience 13% growth within the truck telematics market, and is considered

developed in terms of telematics penetration. A major shift in the South African fleet industry is expected, with

more fleet companies looking to utilize fleet management solutions to focus on total cost of ownership and the

economics of fleet expenditures.


33

• The South African telematics industry is dominated by low-

end and basic fleet management solutions such as tracking,

recovery, and location based services.

• There are only a few foreign telematics providers in South

Africa, which include TomTom Telematics (supplying through

Tracker) and Geotab.

• Telematics for vehicle OEMs are fairly new and recently

established in the market. OEMs include MAN Truck &

Busses, Volvo Group, and Scania.

• Future joint ventures/partnerships are expected between

vehicle OEMs and aftermarket vendors, becoming preferred

fleet management partners.

• The telematics installed base, currently estimated to be 1.3

million units, is expected to reach 1.9 million units by 2021.

• The penetration of telematics in the LCV segment (17.6%) is

low compared to the MCV/HCV (52.9%), but contributes more

than 45% to the total installed base.

• Key End-User Groups include FMCG industry, transport and

logistics, cold chain, material handling, emergency,

rental/leasing, manufacturing, government, fleet insurance,

and risk management.


18%

17%

13% 12%

11%

29%

South African Telematics Market

CarTrack

MiX Telematics

Ctrack

Altech Netstar

Tracker

*Other

*Other industry players include Pointer Telematics, Geotab, TomTom

Telematics, Digit Vehicle Tracking (Digicell), GPS Tracking Solutions ,

SmartSurv Wireless, Autotrak, Autowatch Telematics (PFK

Electronics)

Note: A share of Tracker systems is represented by solutions powered by TomTom Telematics.

34

Commercial Vehicle Telematics

Fleet Tracking

People Tracking

Asset Tracking

Route Planning

Driver Monitoring

Remote Access

• 10-15% Increase in Productivity

• 10-15% Overtime Reduction

• 20-25% Reduction in Fuel Expenses

• 5-10% Reduction in Total Miles

• 20-30 min Day/Driver Labour Savings

• 15-20% Increase in Vehicle Utilisation

• 20-30% Reduction in Vehicle Idle Time

Fuel, driver wages, maintenance, and tires, together hold about 62% of the total cost of fleet operation; a „Connected

Truck‟ plays a huge role in significantly optimizing these factors.

22 30 26 5 1 6 10

0 20 40 60 80 100

Percentage Contribution (%)

Cost of Fleet Operation Other (Tax, Interest)

Driver Wages

Fuel

Maintenance

Tires

Insurance

Depreciation

Benefits After Deployment of Fleet

Management Systems


35

Telematics and Insurance

Usage Based Insurance

Insurance brokers are increasingly making use of telematics for usage based

insurance. Telematics data is used to determine an individual‟s premium for vehicle

insurance. Each vehicle is fitted with a Black Box used to record data such as distance

travelled, speed, time of travel, and date of travel. Information recorded is then

relayed to the driver through a mobile application.

South Africa's vehicle's in operation: 12 million

Approximately 60-70% of these vehicles are uninsured

Many motorists who have vehicle insurance often opt for the lowest premiums, without

understanding the disadvantages and benefits of the policy they are investing in.

MTN and Huawei, in partnership, have brought usage based insurance to the South

African market. It makes use of on-board devices, which connect to a mobile app,

which provides analyses of the drivers behaviour. Given the significant number of

uninsured vehicles, a large market opportunity exists. Partnerships will be key in

opening up these opportunities.

Asset-Based Cover

Person-Based Cover

Usage-Based Cover


Evolution of Insurance Coverage

36

LCV MCV/HCV Bus

2017: 2,345

2016: 2,347

2017: 297

2016: 280

2017: 217

2016: 245

Driver Behaviour: Incidents Per Vehicle Segment

Total Fatal Crashes per Vehicle Segment

0 50 100

Human Factors

Vehicle Factors

Road & EnvironmentalFactors

Contribution (%) 2017 2016

Contributing Factors in Fatal Crashes

Fleet drivers are at a higher accident risk

than most drivers, as they spend a

significant portion of their day on the road. It

is the responsibility of fleet owners to ensure

that their drivers are safe at all times. LCV

fatal crashes are significantly higher than

those of MCV/HCV. This is followed by

minibus taxis, which experience an average

of 1,000 fatal crashes each year.

Accidents are a significant cost for fleet owners, and result in

down time and delays. South Africa‟s fatal crashes can mainly be

attributed to human factors. This reinforces the importance and

benefits of driver behaviour monitoring in commercial fleets, as it

can improve safety, and reduce unforeseen costs.


37

Telematics and Logistics Trends - 2018

• Big Data Utilization

• The use of big data and Advanced Analytics is used to enable efficiency gains. Big Data will shift from descriptive

analytics to predictive analytics using advanced analytics algorithms. These will be beneficial to businesses as it

will reduce costs, improve fleet management, reduce risk and improve system integration.

• Driver Behaviour Monitoring

• A shift away from pure vehicle monitoring to driver behaviour monitoring will occur. This will increase efficiency by

reducing collisions and speeding. This will allow drivers to safely perform their daily operations, and in turn reduce

down time.

• Increased demand for faster turnaround times

• Customers are increasingly wanting same-hour or same-day delivery.

• Companies will have to improve last-mile delivery to keep up to customer satisfaction.

• Localisation of warehousing will occur as companies can no longer rely on 2-3 large depots to meet consumer

demands.

• Companies have changed to outsourcing last mile deliveries to favour customer satisfaction and reduce risk.


38

Telematics and Logistics Trends - 2018

• IoT Connectivity

• In 2018, it is expected that more things will be fitted with sensor technology such as RFID, to easily monitor and

control assets. This will increase the availability of real-time data. With the rise of connectivity, logistics safety and

cyber security will be paramount.

• Mobile applications increase the accessibility of telematics data in real time.

• Automation and Robotics

• The presence of robotics will be an increasing trend in 2018 and beyond. Cobots (Collaborative robots) can work

with people and are involved in packaging, picking, shipping, delivery.

• At the end of 2018, it is estimated that 30% of new robots will be 3 times faster than those deployed 2 years ago.

And up to 45% of mainstream global e-commerce and omnichannel companies, will be using robotics for order

fulfilment warehousing and delivery.

• Autonomous trucks are being used by companies such as Uber for long haul deliveries.

• Blockchain

• Blockchain technology will impact key functions within logistics. The platform is able to verify digital transactions,

eliminating the uncertainty within the industry. It is expected to become the next operating system by keeping a

record of all logistics transactions. Routes, movement of goods, insights into drivers, will all be recorded.


APPENDIX – MUNICIPALITIES

40

Buffalo City Municipality Overview

• Buffalo City Municipality (BCM) is one of the smaller municipalities out of the eight in the report, in terms of

population and economic activity but along with Mangaung municipality is a closer approximation of the rest of

the country.

• This municipality faces budgetary constraints to fund and monitor its critical infrastructure.

Metrics Measure

Geographic Size (sq km) 869 333

Population 2 750

Number of Households 272 518


41

Buffalo City Municipality – Water Meters

119.0

119.5

120.0

120.5

2016 2017 2018

No

. o

f M

ete

rs (

00

0)

Year

Water Meters Deployed, 2016 – 2018, Buffalo City, CAGR = 2.3%

119.5

119.7 120.0

• There are currently 120,000 meters in the BCM,

growing at 2.3% per year.

• The municipality still relies on physical water meter

readings.

Meter Split by User

Residential : 95.1%

Commercial : 4.3%

Industrial & Bulk: 0.6%

Key Providers Honeywell / Elster Kent

Market Highlights

The BCM has struggled with accurate

water bills leading to some discontent

with the public and has experienced a

10% drop in annual water sales.

Implications for

SqwidNET

There may be an opportunity to offer

smart solutions for remote water meter

readings to provide more accurate billing.


42

Buffalo City Municipality – Manhole Covers

250

260

270

280

2016 2017 2018No

. o

f M

an

ho

les

(00

0)

Year

Total Base of Manhole Covers, 2016 – 2018, Buffalo City, CAGR = 1.7%

264

268

273

• Buffalo City currently has 272,816 manhole covers,

which grew at 1.7%.

• The municipality is facing a financial challenge in

monitoring its manhole covers and its ability to replace

those stolen.

Manholes Split by

Type

Sewer : 46.1%

Stormwater : 41.0%

Telecoms : 12.9%

Key Providers

National Manhole Covers

Fab Manufacturing

Cementile

Market Highlights Buffalo City continues to experience the

theft of their manhole covers.

Implications for

SqwidNET

Despite the opportunity to offer track and

trace solutions for manhole covers, the

municipality‟s budgetary constraints may

limit the potential of deploying such

solutions.


43

City of Cape Town Municipality Overview

• The CoT‟s recent struggles with water access has placed pressure on it to improve water management, and is

one of few municipalities to mandate sub-metering.

• As one of the two most developed municipalities, the CoCT also has made extensive investment in utility

infrastructure to meet the growing demand for its large population.

Metrics Measure


Population 4 232 276

Number of Households 1 360 860


44

City of Cape Town Municipality – Water Meters

610

620

630

640

650

660

2016 2017 2018

No

. o

f M

ete

rs (

00

0)

Year

Water Meters Deployed, 2016 – 2018, Cape Town, CAGR = 2.1%

623

637

650

• In 2018, there were 650,000 municipal water meters in

the CoCT.

• The municipality is exploring smart solutions in

response to water shortages and the high and rising

number of inaccurate water bills.

Meter Split by User

Residential : 94.3%

Commercial : 4.7%


Key Providers

• Honeywell / Elster Kent

• Utility Meters

• Sensus (Industry & Bulk)

• Protea Meters

Market Highlights

The CoCT has been installing smart

water meters (mainly Honeywell) to help

households manage their consumption.

Implications for

SqwidNET

There may be scope to partner with

providers such as Honeywell and Elster

for municipal meters in the residential

segment and Kamstrup for gated

communities.


45

City of Cape Town Municipality – Manhole Covers

144

146

148

150

152

154

2016 2017 2018No

. o

f M

an

ho

les

(00

0)

Year

Total Base of Manhole Covers, 2016 – 2018, City of Cape Town, CAGR = 2.8%

301

305 318

• The number of manholes has grown by 2.8% since

2016, reaching 317,719 in 2018, most of which were

sewer covers.

• The CoCT is also deploying a number of non-metal

manhole covers to minimize theft.

Manholes Split by

Type

Sewer : 52.0%

Stormwater : 30.2%

Telecoms : 17.8%

Key Providers

• Saint Gobain Pam

• National Manhole Covers

• Cape Concrete

• Maverick Trading

Market Highlights

The theft of water meters, manholes and

fire hydrants has cost the CoCT R40

million over the past two years.

Implications for

SqwidNET

There is scope to offer track and trace

solutions for both the municipality and

telecoms operators who have an

extensive fibre network.


46

City of Johannesburg Municipality Overview

• Despite its small size, the municipality has the largest by population, development and economic activity

requiring extensive investment in infrastructure.

• The municipality has a range of challenges related to the damage, vandalism, tampering and theft of its utility

infrastructure.

Metrics Measure





47

City of Johannesburg Municipality – Water Meters

0.9

0.9

0.9

0.9

0.9

2016 2017 2018

No

. o

f M

ete

rs (

00

0)

Year

Water Meters Deployed, 2016 – 2018, City of Johannesburg, CAGR = 0.6%

856

861

866

• The CoJ currently has 866,389 water meters across

residential, commercial and industrial segments.

• There is a shift towards prepaid meters in order to

minimize non-revenue.

Meter Split by User

Residential : 93.4%

Commercial : 5.2%


Key Providers

Elster Kent

Sensus

Precision Meters

Lesira Teq

Market Highlights

AMI meter solutions are expected to

minimize the need for meter readers

resulting in retrenchments which the

municipality is looking to avoid.

Implications for

SqwidNET

The need for smart water solutions is

more prevalent in gated communities,

office parks and industrial properties. It

will require SqwidNET to partner with

some of the leading providers to grow its

presence in the market.


48

City of Johannesburg Municipality – Manhole Covers

144

146

148

150

152

154

2016 2017 2018No

. o

f M

an

ho

les

(00

0)

Year

Total Base of Manholes, 2016 – 2018, City of Johannesburg, CAGR = 3.0%

399 411

423

• There was an estimated 420 manhole covers in the

CoJ, a majority of which were sewer.

• Like the CoCT, the CoJ is has been deploying non-

metal manhole covers in response to the high and

rising theft of covers in the city.

Manholes Split by

Type

Sewer : 52.3%

Stormwater : 32.0%

Telecoms : 15.7%

Key Providers

United Manhole Covers

Aveng Manufacturing

GCT Fabricators

Market Highlights

The city does not have a good record of

the number of its manholes relying on a

physical count and estimate. It also does

not have sight on damaged or tampered

manholes, relying on the public to report

faults.

Implications for

SqwidNET

The level of sewer and stormwater

infrastructure is an opportunity to offer

smart solutions to reduce theft and

improve maintenance.


49

City of Tshwane Municipality Overview

• City of Tshwane is the second largest municipality in Gauteng by population and economic activity and

represents a growing opportunity for housing and infrastructure investment.

• In line with its drive to become a smart city, the municipality has looked to deploy smart meter solutions for its

water and electricity services.

Metrics Measure





50

City of Tshwane Municipality – Water Meters

448

452

456

460

464

2016 2017 2018

No

. o

f M

ete

rs (

00

0)

Year

Water Meters Deployed, 2016 – 2018, City of Tshwane, CAGR = 0.9%

453

457

461

• The number of meters in the municipality grew by

0.9% over 2016-2019.

• The City of Tshwane has been struggling with

accurate meter readings culminating in intense public

discontent.

Meter Split by User

Residential : 95.0%

Commercial : 4.1%


Key Providers

Elster Kent

Lesira-Teq

WaterWatch

Market Highlights

The municipality has been moving

towards prepaid meters for both

electricity and water to improve bill

accuracy.

Implications for

SqwidNET

Due to their relatively high cost, the shift

towards smart meters is expected to

fairly gradual. A larger potential

opportunity may lie in the gated

communities and business parks.


51

City of Tshwane Municipality – Manhole Covers

228

232

236

240

244

248

2016 2017 2018No

. o

f M

an

ho

les

(00

0)

Year

Total Base of Manhole Covers, 2016 – 2018, City of Tshwane, CAGR = 2.5%

234 240

246

• There are currently 246,099 manhole covers in the

municipality growing by 2.5% over the period 2016-

2018.

• The municipality continues to experience theft and

tampering of lamp poles, manholes and cables.

Manholes Split by

Type

Sewer : 49.7%

Stormwater : 37.6%

Telecoms : 12.7%

Key Providers

Fiberite

Salberg Concrete Products Pty Ltd

Wuzland Manhole Covers

Aveng Manufacturing Infraset

Market Highlights

A majority of the providers are moving

away from cast iron covers in order to

minimize the risk of theft.

Implications for

SqwidNET

The city continues to experience high

incidence of theft and tamper to

manholes and other infrastructure but

does not have the manpower resources

to monitor them. A smart solution could

help combat the theft.


52

Ekurhuleni Municipality Overview

• Relative to its larger counterparts in the Gauteng Province, the City of Ekurhuleni has struggled with upgrading

its utility infrastructure to meet the needs of its large and growing population due to limited funding.

• As part of its 2025 development strategy, the municipality is exploring smart city solutions.

Metrics Measure





53

Ekurhuleni Municipality – Water Meters

488

496

504

512

520

528

2016 2017 2018

No

. o

f M

ete

rs (

00

0)

Year

Water Meters Deployed, 2016 – 2018, Ekurhuleni, CAGR = 2.0%

505

514

525

• With its large population, the municipality had 525,000

meters growing at 2.0% per year.

• Despite upgrading its water billing system, the

municipality has been struggling with non-revenue

water.

Meter Split by User

Residential : 95.6%

Commercial : 3.9%


Key Providers Elster Kent

Lesira Teq

Market Highlights

The municipality has embarked on a

project to replace ageing meters which it

expects will improve billing accuracy and

minimize losses.

Implications for

SqwidNET

The municipality represents a big

opportunity for water meters, however

budgetary constraints may limit the

potential for smart meter solutions with

respect to municipality meters.


54

Ekurhuleni Municipality – Manhole Covers

250

260

270

280

2016 2017 2018No

. o

f M

an

ho

les

(00

0)

Year

Total Base of Manhole Covers, 2016 – 2018, Ekurhuleni , CAGR = 1.7%

264

268

273

• There were 272,016 manhole covers in the

municipality in 2018, growing at 1.7% per year.

• The municipality has been moving towards plastic

manhole covers in response to the theft of cast iron.

Manholes Split by

Type

Sewer : 45.7%

Stormwater : 40.6%

Telecoms : 13.7%

Key Providers

GCT Fabricators


Wuzland Manhole Covers

Market Highlights

A track and trace solution can aid the

municipality to crack down on nefarious

metal scrap yard owners.

Implications for

SqwidNET

There may be scope to partner with GCT

Fabricators and Wuzland who have a

large presence in the Gauteng area.


55

eThekwini Municipality Overview

• eThekwini municipality‟s ambitions to become a smart city has seen it invest in refurbishing and expanding the

city‟s infrastructure, including the waterfront and port.

• With the expected increased economic activity, there is strong emphasis on improving the city‟s utility

infrastructure in line with the expected increase in jobs and population size.

Metrics Measure





56

eThekwini Municipality – Water Meters

480

488

496

504

512

2016 2017 2018

No

. o

f M

ete

rs (

00

0)

Year

Water Meters Deployed, 2016 – 2018, eThekwini, CAGR = 0.2%

490

500

510

• The number of meters in eThekwini grew by 0.2%

during 2016-2018 to reach 510,000.

• The municipality is exploring opportunities to help

minimize water wasted through inefficient metering.

Meter Split by User

Residential : 94.5%

Commercial : 4.6%


Key Providers

Elster Kent (may be losing some of its

market share in the municipality)

Sensus

Utility Systems

Market Highlights

In line with its aspirations to become a

smart city, the municipality has been

trialling AMI solutions.

Implications for

SqwidNET

As with the other major metros there is

scope to partner with providers serving

gated communities and business parks,

but also the municipality is open smart

solutions.


57

eThekwini Municipality – Manhole Covers

308

312

316

320

324

2016 2017 2018No

. o

f M

an

ho

les

(00

0)

Year

Total Base of Manhole Covers, 2016 – 2018, eThekwini, CAGR = 1.2%

313

317

321

• There were 321,023 manhole covers in the

municipality which has grown 1.2% over the period

2016-2018.

• The municipality has experienced a spate of

challenges due to the loss of manhole covers, with

1,000 covers damaged or stolen a year.

Manholes Split by

Type

Sewer : 45.5%

Stormwater : 40.2%

Telecoms : 14.3%

Key Providers


KFC Engineering

Saint Gobain Pam

Manholes 4 Africa

Market Highlights

The municipality has struggled to monitor

the assets of the city such as manhole

covers, and is relying on residents to

report damage to the infrastructure.

Implications for

SqwidNET

SqwidNET should consider partnering

with a leading provider such as KFC

Engineering whose product portfolio is

mostly cast iron covers that are prone to

theft.


58

Mangaung Municipality Overview

• Despite its relatively larger land mass, the Mangaung Municipality is one of the smaller ones among the

selected eight, in terms of population and economy size.

• As a result, investment in water, roads, sewerage and electricity infrastructure is also relatively smaller.

Metrics Measure


Population 793 644



59

Mangaung Metropolitan Municipality – Water Meters

0

0.4

0.8

1.2

1.6

2016 2017 2018

No

. o

f M

ete

rs (

00

0)

Year

Water Meters Deployed, 2016 – 2018, Mangaung, CAGR = 5.3%

126 132

139

• There were 139,469 water meters in 2018 for

Mangaung, 95.0% of which were residential.

• Growth in the number of new meter connections

averages 5.3% over the three year period, 2016-2018.

Meter Split by User

Residential : 95.1%

Commercial : 4.3%


Key Providers

Elster Kent – Has been the dominant

provider of water meters in the

municipality, having won a majority of the

meter tends in the region over the last 20

years.

Market Highlights

There is a strong drive to switch most of

the residential to prepaid waters to

minimize waste.

Implications for

SqwidNET

Smart water solutions is a longer-term

opportunity as the municipality is mostly

prioritizing revenue protection from

curbing basic water waste.


60

Mangaung Metropolitan Municipality – Manhole Covers

144

146

148

150

152

154

2016 2017 2018No

. o

f M

an

ho

les

(00

0)

Year

Total Base of Manholes, 2016 – 2018, Mangaung, CAGR = 0.4%

148

150

152

• There were over 150,000 manhole covers in the

municipality with a growth of 0.4% per year over the

period 2016-2018. Manholes Split by

Type

Sewer : 44.7%

Stormwater : 39.7%

Telecoms : 15.6%

Key Providers

National Manhole Covers

Astro Concrete

Incledon (Key Distributor)

Market Highlights

The municipality has spent over R550

million on upgrading of streets and

stormwater.

Implications for

SqwidNET

The municipality does not have a digital

solution to monitor the status of manhole

covers. The opportunity to offer track and

trace solutions could be curtailed by

budgetary constraints.


61

Nelson Mandela Bay Municipality Overview

• The Nelson Mandela Bay (NMB) Municipality is currently towards its smart city initiative by investing in

infrastructure while also providing basic utilities to the townships.

• There is also growing pressure on the municipality‟s water resources which it is looking to protect.

Metrics Measure





62

Nelson Mandela Bay Municipality – Water Meters

200

208

216

224

232

2016 2017 2018

No

. o

f M

ete

rs (

00

0)

Year

Water Meters Deployed, 2016 – 2018, Nelson Mandela Bay, CAGR = 3.8%

210

218

226

• There were 226,413 water meters in the NMB growing

by 3.8% during 2016-2018.

• The municipality has mandated sub-metering which is

expected to largely affect the residential segment.

Meter Split by User

Residential : 95.3%

Commercial : 4.2%


Key Providers Elster Kent

Water Watch

Market Highlights

Over the period 2016-2020 property

developers are expected to install water

meters in all the individual units to enable

direct billing of their tenants.

Implications for

SqwidNET

There is an opportunity to partner with

key water meter providers in the NMB

with the view to providing smart solutions

to help the municipality effectively

monitor consumption.


63

Nelson Mandela Bay Municipality – Manhole Covers

144

148

152

156

2016 2017 2018No

. o

f M

an

ho

les

(00

0)

Year

Total Base of Manhole Covers, 2016 – 2018, Nelson Mandela Bay , CAGR = 1.5%

148

150

152

• The number of manhole covers in NMB grew by 1.5%

during 2016-2018 to reach 152,472.

• The NMB is experiencing losses estimated at R21m a

year on its sewer system due to theft and vandalism.

Manholes Split by

Type

Sewer : 46.1%

Stormwater : 41.3%

Telecoms : 12.6%

Key Providers Saint Gobain Pam

Rocla

Market Highlights

The municipality does not have the

manpower and resources to effectively

monitor its 3900 km of sewer system,

having had to replace close to a 1000

covers in 2014 alone.

Implications for

SqwidNET

There is an opportunity to the main

providers such as Rocla to offer a smart

monitoring solution.


64

List of Abbreviations

Acronym Definitions

AMI Advanced Meter Reading

AMR Advanced Meter Infrastructure

BCM Buffalo City Municipality

CAGR Compound Annual Growth Rate

CEP Courier, Express and Parcel

Cobots Collaborative Robots

CoCT City of Cape Town

CoJ City of Johannesburg

CoT City of Tshwane

FMCG Fast Moving Consumer Goods

GDP Gross Domestic Product

GMVR Gross Vehicle Mass Rating

HCV Heavy Commercial Vehicle

IoT Internet of Things

LCV Light Commercial Vehicle

LoRa Long Range

LPWAN Low-Power Wide-Area Network

MCV Medium Commercial Vehicle

NB-IoT Narrow Band- Internet of Things

NMB Nelson Mandela Bay

OEM Original Equipment Manufacturer

RFID Radio Frequency Identification

SVR Stolen Vehicle Recovery

65

Contacts

Siyathemba Magobiane

Senior Consultant

+27 (0)21 680 3564

+27 (0)83 722 8805

[email protected]

Craig Parker

Research Director

+27 (0)21 680 3292

+27 (0)72 878 0698

[email protected]

Zaheera Ahmed

Research Analyst: Mobility

+27 (0)21 680 3261

+27 (0)76 292 8248

[email protected]

Lehlohonolo Mokenela

Consultant

+27 (0)21 680 3567

+27 (0)72 365 4600

[email protected]

Documents

Water Meters, Manhole Tamper, Assets In Transit, And ... · Amanzi Meters Protea Meters Precision Meters Sensus Other • Elster Kent is considered one of the leading providers of