Truck stops promote driver safety and responsible investment
The first in TSRF’s truck stop investment strategy is the Harrismith Highway Junction Truck Stop, which is one of four truck stops the fund plans to roll out over the next 18 months and is among the biggest in Africa.
The Harrismith Highway Junction Truck Stop is the fruit of the fund partnering with a truck stop company and has resulted in the provision of the following services to members:
parking;
clinic and wellness facility;
to rest fully;
driver’s clubhouse including a laundromat;
facilities;
including an ATM and facilities for the purchase of airtime;
space; and
Letswalo says the fund is very excited about the truck stop investment strategy as it ties in perfectly with the wellbeing of its members and assists in reducing the carnage experienced on South Africa’s roads due to truck drivers suffering from fatigue, due to driving for long distances and the paucity of adequate rest facilities.
The Harrismith Highway Junction Truck Stop has developed to the point that it provides employment for more than 200 people; around 1 400 trucks use the facility daily. Furthermore, companies are buying reserved parking bay spaces for their drivers.
The truck stops is will also be to assist in creating a pool of skilled drivers, as there is huge shortage of this requisite skill. In collaboration with Scania and the Transport Education and Training Authority, truck stops will be used as a training ground during the day, as trucks only park overnight.
This is also creating employment for the local population and assisting the transport sector employers with scarce critical skills.
Letswalo says truck stop site allocation is important. All the truck stops will be located near major cities, at a natural stopping point determined by travel time or at borders. Sites must be highly visible and easily accessible from major roads that are primary transport routes.
“We are planning on extending the truck stop concept to sub-Saharan Africa through our neighbouring states, as it is not only a good example of responsible investment and aligning the fund’s investment strategy with its members’ interests, but also represents an investment that offers good returns, with yields of around 20% per annum, which provides a competitive advantage for the fund.
“The truck stop concept was actually an idea of one our members, after which we researched the model and found that it is not only sustainable, but in a unique asset class.
“For example, Highway Junction is one of the few truck stops in the world where fuels from a number of different brands are offered, because many of the companies have long-term relationships with specific petroleum brands.
“Furthermore, members know that the truck stop represents part of their investment, so they use it both for their physical wellbeing as well as to ensure good retirement investment returns.
“The truck stops will also assist in taking care of the medical requirements that the truck drivers have, as they provide 24-hour access to clinics where primary healthcare is offered.
“This investment forms part of our alternatives allocation in terms of our investment strategy and is compliant with Regulation 28 of the Pension Fund Act,” says Letswalo.