RFA Vehicle Cost Schedule and Vehicle Types Overview

Otto van Griethuysen

RFA Vehicle Cost Schedule Overview RFA Vehicle Cost Schedule

Vehicles in the - RFA Vehicle Cost Schedule Drop Side, Van Body 01 4x2 Rigid LDV 2400 kg or Less Drop Side, Van Body 02 4x2 Rigid 2400 kg to 5000 kg Drop Side, Van Body 03 4x2 Rigid 5001 kg to 7500 kg Drop Side, Van Body, Tautliner, Flatbed 04 4x2 Rigid 7501 kg to 10000 kg

Vehicles in the - RFA Vehicle Cost Schedule Drop Side, Van Body, Tautliner, Flatbed, Tipper, Tanker, Fridge, Furniture 05 4x2 plus 10000kg Drop Side, Van Body, Tautliner, Flatbed, Tipper, Tanker, Fridge 06 6x4 Rigid Drop Side, Van Body, Tautliner, Flatbed 07 Three Axle Artic 4x2 Truck Tractor Single Axle Semi Trailer Drop Side, Van Body, Tautliner, Flatbed, Tipper, Tanker, Furniture Four Axle Artic 4x2 Truck Tractor Tandem Axle Semi Trailer 08

Vehicles in the - RFA Vehicle Cost Schedule Drop Side, Van Body, Tautliner, Flatbed, Tipper, Tanker, Fridge 09 Five Axle Artic 4x2 Truck Tractor Tridem Axle Semi Trailer Drop Side, Van Body, Tautliner, Flatbed, Tipper, Tanker, Fridge, Lowbed 10 Five Axle Artic 6x4 Truck Tractor Tandem Axle Semi Trailer Drop Side, Van Body, Tautliner, Flatbed, Tipper, Tanker, Fridge, Lowbed 11 Six Axle Artic 6x4 Truck Tractor Tridem Axle Semi Trailer 12 Drop Side, Van Body, Tautliner, Flatbed Four Axle Combination 4x2 Rigid 2 Axle Trailer

Vehicles in the - RFA Vehicle Cost Schedule 13 Drop Side, Van Body, Tautliner, Flatbed, Tanker, Five Axle Combination 6x4 Rigid 2 Axle Trailer 14 Drop Side, Van Body, Tautliner, Flatbed Seven Axle Combination 6x4 Rigid 4 Axle Trailer 15 Drop Side, Van Body, Tautliner, Flatbed, Furniture Five Axle Doubles Combination 4x2 TT Single axle Semi Trailer and 2 Axle Trailer 16 Drop Side, Van Body, Tautliner, Flatbed Six Axle Combination Concept 08 plus 2 Axle Trailer

Vehicles in the - RFA Vehicle Cost Schedule Drop Side, Van Body, Tautliner, Flatbed, Tipper, Tanker 17 Seven Axle Combination Concept 10 Plus 2 Axle Trailer Drop Side, Van Body, Tautliner, Flatbed, Tipper, Tanker, Fridge 18 Seven Axle Interlink 6x4 Truck Tractor Tandem/Tandem Semi Trailers Drop Side, Van Body, Tautliner, Flatbed, Tipper, Tanker 19 Seven Axle Combination 8x4 Rigid 3 Axle Trailer

Extract from - RFA Vehicle Cost Schedule RFA VEHICLE COST SCHEDULE - Jul-21 Edition-002 Jul 21 18 ASSUMPTIONS : Concept - 18 Seven Axle Interlink 6x4 Truck Tractor Tandem/Tandem Semi Trailers Concept - 18 Seven Axle Interlink 6x4 Truck Tractor Tandem/Tandem Semi Trailers DROPSIDE Body Jul 21 DROPSIDE Body P R I M E M O V E R O R R I G I D R R/km % % Cost Price (excl VAT) Residual Value Finance - Cost of Capital (Interest) - or Monthly Repayment Depreciation - Distance km Insurance (% of Cost Price) Tare Number of Steering Axle(s) Number of Tyres (excl spare) Tyre Size Tyre Price - New Tyre (excl VAT) - Retread (excl VAT) New Tyre Life - Front & Rear Retread Tyre Life - Front & Rear Number of Retreads - Front & Rear T R A I L E R S O R S E M I T R A I L E R S R % % R yrs % R no no ANNUAL FIXED (STANDING) COSTS 2,137,000 25.0% Seven Axle Interlink Cost of Capital (Finance) Depreciation Insurance On Vehicle Staff Overheads Licence Other 100,253 348,898 186,689 737,697 331,629 40,248 0.72 2.49 1.33 5.27 2.37 0.29 0.00 5.7% 20.0% 10.7% 42.3% 19.0% 2.3% 0.0% 3.2% 11.0% 5.9% 23.2% 10.4% 1.3% 0.0% 5.0 Yrs 7.0% 0 or Time 0 5.0 7.5% DROPSIDE Body kg Licence 10,070 20,340 1 0 10 Finance 3.2% 315/80R22.5 Other 0.0% TOTAL ANNUAL FIXED COSTS R R km km no 1,745,414 12.47 100.0% 54.9% 6,800 4,080 110,000 100,000 Maintenance 4.6% Tyres 5.7% VARIABLE (RUNNING) COSTS R R/km % % 80,000 75,000 Fuel Lubricants Maintenance Tyres Other 1,079,297 26,982 145,600 182,603 7.71 0.19 1.04 1.30 0.00 75.2% 1.9% 10.2% 12.7% 0.0% 33.9% 0.8% 4.6% 5.7% 0.0% 0 2 Depreciation 11.0% Cost Price (excl VAT) (1st + 2nd Trailer) Residual Value Finance - Cost of Capital (Interest) - or Monthly Repayment Depreciation - Time Insurance (% of Cost Price) Tare - First Trailer Tare - Second Trailer Number of Axle(s) Number of Tyres (excl spares) Tyre Size Tyre Price - New Tyre (excl VAT) - Retread (excl VAT) New tyre life Retread tyre life Number of Retreads O N V E H I C L E S T A F F - (Cost to Company) R % % R yrs % R R no no 528,280 0.0% 7.0% 0 5.0 Yrs Insurance 5.9% 0 TOTAL VARIABLE COSTS 1,434,482 10.25 100.0% 45.1% 10.0 5.0% 7,716 12,192 kg kg Licence Licence TOTAL ANNUAL COSTS 3,179,895 22.71 --- 100.0% 5,940 7,830 F r o m T o t a l A n n u a l Variable Cost COST SUMMARY 4 Fuel + Oil 34.8% Fixed Cost Total Cost 16 315/80R22.5 Cost per Day R 5,818.05 4,781.61 10,599.65 Veh Staff 23.2% R R km km no 6,800 4,080 120,000 110,000 Cost per Hour R 484.84 398.47 883.30 Cent / Ton . km At 70.0% Payload Utilisation and 75.0% Annual Laden km 73.8 60.7 134.5 2 Drivers - No & Monthly Cost Assistants - No & Monthly Cost no no R R INDICES INCREASES 1 1 38,234 23,241 Overheads 10.4% Edition 001 Base Jan 2021 = 1000 1046 1018 1075 1119 1160 From Previous Edition 001 Base 4.6% 1.8% 7.5% 11.9% 16.0% INDICES and INCREASES A N N U A L F I X E D O V E R H E A D S Total Annual Fixed Cost Finance + Depreciation On Vehicle Staff Total Variable Cost Fuel Cost Maintenance Cost Overheads Other Fixed Standing Costs R R 331,629 Licence 1.3% 0 V A R I A B L E C O S T S Fuel Consumption Fuel Price Lubricants (as % of fuel cost) Maintenance Truck Maintenance Total - Body+Trailer 1+Trailer 2 Other Variable Running Costs Litre / 100 km 51 Rand / Litre 15.116 2.5% 0.640 0.400 0.000 1000 0.0% % Concept - 18 R/km R/km R/km Seven Axle Interlink Annual From Previous From 6x4 Truck Tractor Tandem/Tandem Semi Trailers DROPSIDE Body % INCREASE / DECREASE Edition 001 Base 0.0% 0.0% 0.0% Edition 001 Base 4.6% 11.9% -8.4% Total Annual Fixed Cost Total Variable cost - Incl Fuel & Oil Total Variable cost - Excl Fuel & Oil U T I L I S A T I O N Annual Kilometres Payload Utilisation & Annual Laden km Working daysper Annum Chargeable Hours per Work Day 18-Seven Axle Interlink km % days hrs 140,000 75.0% 300 % 70.0% Total Annual Cost - Incl Fuel & Oil Total Annual Cost - Excl Fuel & Oil 0.0% 0.0% 7.8% 2.5% 18 12 Maximum Total Laden Mass 56.0 Ton

COST ELEMENTS We will discuss each cost element separately Fixed Cost and it s impact on your transport company Defined as: Vehicle costs when the vehicle does not move There are certain anomalies depending on personal preferences e.g. On vehicle staff overtime Variable cost and it s impact on your transport company Defined as: Vehicle costs incurred while the vehicle is moving There are certain anomalies depending on personal preferences

FIXED COSTS Cost of Capital Interest Depreciation and residual value % used Re-Payments Insurance On vehicle staff Overheads Licence fees Other Fixed costs

Fixed Costs Cost of Capital Interest Management decision on interest %

Fixed Costs Depreciation and residual value % used Management decision Depreciation policy. Management decision - Residual Values

Fixed Costs Re-Payments Generally either Interest + Depreciation OR Re-payment

Fixed Costs Insurance % of capital employed OR actual values

Fixed Costs On Vehicle staff Basic salary Cost to Company Anticipated overtime Could be variable Meals and Night outs Could be variable PPE costs Training costs Customer special requirement cost

Fixed Costs Overheads Administration Office staff Admin employees Telephone, IT, Office equipment costs, office rent and depreciation Printing and stationary. Non-vehicle capital costs Head office fees.

Fixed Costs Overheads Operational Office staff Operational employees Vehicle communication / tracking On vehicle equipment including Tarpaulins, pipes, couplings, etc These costs can be included in fixed costs as Capital employed OR Variable costs If you cost them directly to the vehicle OR As a separate heading in Fixed OR variable cost

Fixed Costs License fees Licence fees for the province where your vehicles are registered COF costs

Fixed Costs Other Fixed Costs Toll fees Could be variable Cross border costs Consultant fees Tyre maintenance contract Depending on the fleet size and contact stipulations. Any other costs deemed to be fixed for the fleet

VARIABLE COSTS Fuel Lubricants Maintenance Tyres Other Variable costs

Variable Costs Fuel R/km Fuel cost in R/Litre Fuel consumption Litre/100km OR km/Litre Fuel is a valuable commodity and must be controlled This is one of the most important costs depending on km travelled per annum It could be as high as 35% to 50% of your total cost or 75% to 85% of your variable cost

Variable Costs Lubricants Generally a % of fuel is used Between 2.5% and 5.0% of the fuel cost

Variable Costs Maintenance R/km Own inhouse maintenance cost OEM maintenance cost Take into account the rand value per vehicle per month

Variable Costs Tyres R/km From your own records In consultation with your tyre supplier Industry average Take into account the rand value per vehicle per month

Variable Costs Other Variable costs R/km - Could consist of Toll fees On vehicle staff overtime If not included in fixed costs Meals and Nights out If not included in fixed costs

Variable Costs Variances depending on annual km Assuming Fuel Consumption, Maintenance and tyre prices does not change FUEL Maintenance Tyres Variable % of Total Cost Km per Annum % of Total Cost % of Variable cost % of Total Cost % of Variable cost % of Total Cost % of Variable cost 48 000 km 16.5% 75.1% 2.2% 10.1% 2.8% 12.9% 22.0% 140 000 km 33.9% 75.2% 4.6% 10.2% 5.7% 12.7% 45.1% 200 000 km 40.6% 75.3% 5.5% 10.2% 6.8% 12.7% 54.0%

Fixed cost influence Low km per annum Fixed costs determine your profitability Time per load is of essence No of loads per month is of essence Variable costs?

Variable cost influence High km per annum Variable costs determine your profitability Km travelled per month is of essence No of loads per month is of the essence Fixed costs?

Questions Contact RFA 011 974 4399 Otto van Griethuysen 082 564 6842

Thank you for joining us in the TRANSPORT MONTH on this topic Understanding expenses in your transport company