REEF TANKERS: Passionately Driving Up Standards

For a quarter-century, one specialist haulage business in South Africa has been growing, adapting, and progressing. Reef Tankers, established in 1998, is a specialist logistics firm with a national presence. The company moves vital products – liquid and gas fuels, and chemicals – allowing for industry and economy to accelerate.

Executive Managing Director, Vic Ferreira, tells Enterprise Africa that the company has gone above and beyond to ensure its quality and excellence mirror that of its clients. This can’t be done, he says, without being driven by passion.

“That is our ethos, we are Driven by Passion and that transcends the company.”

Currently, a team of more than 460 people oversee an industry-leading fleet of vehicles and manage a client list that includes some of the most integral organisations in South Africa. Growth over the past 25 years has been impressive, and Ferreira wants to utilise the company’s robust platform to improve and diversify, taking pole position in the markets it serves.

“We are focused on petrochemicals, mainly diesel. In the last three years, we have embarked on a diversification project and we now have 14 vehicles that transport various chemicals,” he says, reminding of the intense competition in the South African logistics industry. “We also have two LPG tankers that we have been running for more than two years for Total Gas, and we have an emulsion tanker working for AECI. This diversification project is about understanding how we can grow and what opportunities are out there.”

He adds that expansion into the chemicals space has been a major success, and the company is also very excited about the LPG industry where it expects to sign contracts with clients imminently, opening investment into new equipment and infrastructure.

RADICALLY REDUCING EMISSIONS  

High on the agenda for Reef Tankers is an ongoing drive to reduce emissions. This mission reflects the need from clients to demonstrate decarbonisation through the value chain. By investing in modern vehicles, alternative fuels, innovative technologies, and industry certifications, Reef Tankers positions itself ahead of others.

“We have recently embarked on a journey with our first Compressed Natural Gas (CNG) vehicle, made by Scania,” says Ferreira. “We are working for a distributor, handling all local deliveries. Instead of using diesel prime movers we found a CNG prime mover to transport that product. We are very excited about the ability to move CNG with CNG power as it is environmentally friendly and reduces emissions.

“We are busy running a tyre innovation with Michelin – the Green Tyre project. The tyre runs cooler, saving money on fuel costs. We are running the pilot and it is all about improving efficiency and reducing emissions,” he adds.

The company has also introduced vehicles with Euro 5 technology to its fleet. South African legislation dictates that new vehicles should be of a minimum Euro 2 standard, but Reef Tankers is again keen to separate itself from the market, aiming instead for Euro 5 which legislates that carbon dioxide in emissions is drastically reduced and innovation is required to improve SCR catalytic converters and modern combustion chambers.

“It’s a big positive for us – we want to be a part of the battle against carbon emissions,” Ferreira highlights.

Reducing emissions and contributing to longer-term sustainability goes beyond technology for Reef Tankers. The company is embarking on a number of campaigns to ensure it is sustainable and true to its promises.

SUSTAINABLE & SAFE

When it comes to moving hazardous and dangerous cargo around South Africa’s vast and unpredictable road network, bigger and faster is not better, says Ferreira. Those that adhere to world-class standards, and those that focus on safety and reliability are the partners that offer more.

“Our safety culture is impressive,” he states. “We drive zero-harm very hard. We have an academy in which we train all staff, and we have learned a lot through that process. It’s all about employing the right people, spending the right amount of time with them, and getting them through the relevant assessments. We end up spending a lot of time on this process and that means we know people very well – that has been a great success.”

The highly skilled and involved culture means that the Reef Tankers can back up its claims with independent certification. Without the energy of the team, and the enthusiasm for being better, this would not be possible.

“We are ISO certified, and we have been certified for 15 years. We have ISO 9001, 14001, and 45001 accreditations. We have the SANS 1395 accreditation which is becoming important and is increasingly requested by local companies.

“We are affiliated as a signatory and award-winner with the Chemical and Allied Industries Association (CAIA) and that measures incident stats and runs campaigns around innovation. That is a very important signatory for us as it is essential to gain this awareness for our industry,” explains Ferreira.

The company is also Road Transport Management System (RTMS) certified with the equivalent of an ISO 39001 management system, and Safety and Quality Assessment for Sustainability (SQAS) accredited.

“Few of our competitors can boast such a high level of compliance,” says Ferreira, adding that the company is also a Level 1 BBBEE company.

GROWING THROUGH PARTNERSHIP

In a marked difference to other country strategies, South Africa is seeing more freight moved back to the tarmac, as the declining rail network and challenged air freight space make hauling vital cargo over road a more realistic option. The region has major potential as an exporter, but port congestion has put the brakes on for those looking at international markets. It’s a tough time, and that is why it pays to partner with a reliable partner that understands the workings of the logistics industry. 

Reef Tankers has relationships with the country’s best technology organisations, and works closely with international automotive brands to ensure its growth can continue through the delivery of success for clients. For Ferreira, the key is efficiency.

“We are one of few companies that has a control tower, and from here we can take orders and communicate those to our terminals and depots,” he describes. “We can then create a schedule and this is vital to ensure that you have no miscommunication around orders. We are extending our control tower so that we can measure different things including efficiency, performance, utilisation, and we are implementing the risk side of things. Not many companies have that facility and we are building a strong partnership to further that.”

The risk for Reef Tankers is large. In its fleet, the company boasts two Q55 fuel tankers capable of carrying 48,000 litres of diesel and 52,000 litres of petrol. This extremely valuable and highly sensitive payload simply cannot be mismanaged. The situation is similar for each vehicle and so risk mitigation is critical.

“Compliance is critical. Our customers are always auditing us,” says Ferreira.

“Many companies run a third-party forensics system, but we have an internal forensics department which works with management – that is a great value-add. That department works with the oil companies and that means we know about activity in the industry, and that is useful info for our contract managers, fleet coordinators, and customers.”

Reef Tankers also runs an inhouse maintenance response allowing for fast turnaround should vehicles require attention, and the entire fleet is equipped with tyre repair kits and 360 cameras. “This means we are more efficient than others,” says Ferreira.

He is also proud of the fact that the SA public can see Reef Tankers coming. A preventative maintenance schedule is implemented every six days, keeping vehicles sparkling and actively checking over for issues. To ensure longevity, vehicles also receive a refurbishment review every 24-36 months to ensure optimal performance. “We do a lot of KPI tracking – we are big on monitoring and measuring. This creates a culture of excellence internally,” he adds.

ADAPTING & CHANGING

Going forward, Reef Tankers must continue to adapt to changes in the market if it is to remain in front of the pack. The company knows how to ride out peaks and trough in the economy, but with shocks now coming from all angles, at all times, the requirement for nimbleness is essential.

“The whole fuel sector has changed. We have had local refineries closing down and disinvestment from overseas,” Ferreira details. “The country is now reliant on just two refineries. A good portion of stock is stored on sea, and everybody is importing products. That brings external challenges – war, climate, logistics, currency etc. Everyone is always watching product availability.”

With many long-haul transporters also impacted by uncertainty in the coal sector, Reef Tankers – a major mover of fuels – is having to find fresh flexibility as it works to keep customers happy.

“It has been a challenging period, and we have had to change the way we manage, change our mindset, and change our strategy,” Ferreira reiterates.

“We have to be agile and flexible within our contracts to ensure we are in the right space. And it’s not just us, the oil majors are feeling the struggle. Running costs don’t ever decrease and so you have to ensure you have the throughput. That is why we measure utilisation so closely – we must ensure profitability.”  

This goal is shared internally and agreed on by department heads at yearly Operational Excellence meetings. Each of the fleet managers, contract managers, and senior leaders engages with realistic targets, using their experience to assist each other in the overarching mission. “It creates a culture of collaboration and this is a critical concept as it develops ownership for those that design the plans and for those that participate in them,” says Ferreira, again highlighting the importance of the Driven by Passion mantra that is carried through out the business.

The end result is success. Reef Tankers continues to ride in top gear, growing year-on-year, taking on new customers, opening up new markets, and upskilling more people. There is no constant shifting of lanes – with Reef Tankers the destination is clear for all, and the company gets there by doing the best and being the best.

“Our integrity, our operational fundamentals, our alignment with our customers is second to none. Our team is totally committed to ensuring excellence is maintained and safety is the priority,” concludes Ferreira.

As quick as the industry changes, Reef Tankers is on the pulse. Always improving safety and sustainability credentials, and delivering unrivalled quality for clients, this industry leader delivers what few others can on the trying roads of South Africa – trust.