Top hijacking and car theft hotspots in SA
VEHICLE-RELATED CRIMEPricing the risk of not insuring
After a downtrend over the past 15 years, vehicle hijackings
are on the rise again heading for 1 000 cars and 100 trucks a month. That’s
apart from 4 750 cars and motor cycles being reported stolen each month,
according to new statistics. Can you afford not to insure?
By Udo Rypstra•
according to our willingness to put up with it”. This is a quote from Barry J. Farber, a well-known American
motivational speaker of the 1930s-era, and the
SAPS used it to introduce the latest South African national crime
statistics for 2013/14 - statistics which show that vehicle theft, hijacking
and other vehicle -related crimes are on the uptake again.
Although nine months old now, they show a long-term pattern
and a shift to mall attacks that has manifested itself recently.
Thhe statistics show that the risks have been rising again affecting people using their own or a
company car, as well as those who drive a fleet owner's taxi, bus or truck to earn a living .
There are about 1118 precincts (police stations) in South
Africa and 29 different crime categories which the South African Police Service
reports on. The stats released only deal
with 17 “priority” crimes, of which six have increased in incidence while 11
They indicate that over the last ten years, more than 25
million “priority” crime cases have been reported starting with 2.67 million
crime cases reported at a rate of almost 7300 per day in 2004. But the overall annual rate has been diminishing
with “only” 2.24 million crimes having been reported for the twelve months
April 2013 - March 2014, which means that up to nine months ago, an average of
6149 crimes were reported by the SAPS everyday day!
HIGH-RISK PROVINCES - General Crime
Of these, police stations in the smallest but densely
populated province of Gauteng reported the highest number of 647 409 criminal
priority cases (28.9%), followed by the Western Cape with 486 939 cases (about
22%) and Kwazulu-Natal (KZN) with 348 961 (almost 16%). This makes these three
provinces jointly responsible for more than 66% of all alleged “priority”crime
of General Crime Cases
Gauteng 647 409
Western Cape 486 939
Kwazulu-Natal 348 961
Eastern Cape 212 796
Free State 132 606
Limpopo 126 119
Mpumalanga 120 204
North West 117 913
Northern Cape 50 485
General Crimes: Worst ten precincts in 2014
Precinct Province Number of Cases
Mitchells Plain Western
Cape 25 575
Cape Town Central Western
Cape 18 369
Durban Central KZN 16 401
Johannesburg Central Gauteng 14 791
Park Road Free
State 14 526
Honeydew Gauteng 13 561
Pretoria Central Gauteng 12 682
Utrecht KZN 12 068
West 11 657
Truck hijacking - Up 12.1%
Way back in 1994, when South Africa became democratised, the
extent of the hijacking of trucks and cars (carjacking) was not reported. These
cases formed part of the overall number of cases listed under the single
category of aggravated armed robbery. But these hijacking cases became so rife
that it prompted the Crime Information
Analysis Centre (CIAC) of the South African Police Service (SAPS) to start reporting statistics of both crimes
as separate sub-categories of aggravated robbery from 1997 onwards.
Robbery with aggravating circumstances - this category now
includes sub-categories such as truck hijacking, carjacking, as well as
residential and non-residential robbery, which have increased overall by 10.8
In a surprising development, bank robberies saw a decrease
of 77.4 percent over a five-year period, but increased by 300% from seven
incidents in 2012/13 to 21 in 2013/14.
However, the robbery of cash-in-transit vehicles stabilised
at 145 incidents in the reporting period.
The SAPS says that it hopes that the integrated partnerships
with businesses and the banking sector will go a long way to address these
The CIAC reported 3732 truck hijacking
cases in 1996/7 which nearly doubled to a peak of 6134 two years later
(1998/9), or almost 17 trucks per day or 118 per week.
Truck hijacking was so rife at that stage that it prompted
the launch of Pat O’Leary’s FleetWatch magazine which identified risk areas and
risk management techniques, such as the use of many vehicle tracking,
monitoring and recovery systems that appeared on the market.
It’s most probably through vehicle tracking systems and the
establishment of anti-hijacking police units that reported cases reduced by
almost half to 3 333 in 2001/2 and, from
2002/3 onwards, suddenly dropped even more to under 1 000 for a few years.
There was a “hick-up” in 2007/8 when it rose to 1 245
peaking during the height of the global recession at 1 437 in 2008/9 before
settling well under the 1 000 mark again at 886 in 2012.
However, in 2013 the stats went up again to 943 and they
rose further to 988 in 2014 – which
translates to almost 20 trucks per week or into a further, alarming, 12.1
percent year-on-year increase.
Which raises two initial questions: firstly, which routes
are the most prone to hijackings and, secondly, where are the “hot spots”?
TRUCK HIJACKINGS BY PROVINCE
Free State 71
North West 46
Western Cape 40
Eastern Cape 31
Northern Cape 0
The latest statistics reveal that most of the 988 truck
hijackings during the year under review took place along the long-distance N3/M1
route that runs through KZN, the Free State and Gauteng to and
from the warehouse depots at City Deep (near Johannesburg CBD) and
Midrand (near Pretoria CBD).
As usual, most trucks along that corridor were hijacked in
Gauteng (545) where the risk is more than seven times greater than in the Free
State (71) or almost 12 times greater than in KZN (46) or any other province in
The N4 through Mpumulanga (197) to Nelspruit and Komatipoort
on the way to Maputo, Mozambique, poses the second biggest risk.
Police and various newspaper reports about separate
hijacking incidents suggest that trucks being hijacked are mostly truck-trailer
combinations prized for high-value cargo such as fuel, cigarettes (between R500
000 and R10m-plus per load), electronics or just baby and other food that sells
easily in impoverished township communities.
According to the same sources, the modus operandi by what
are mostly syndicates or gangs often pretending to be policemen with fake “blue
lights” police cars and motor cycles, by hitch-hikers (with accomplices hiding
among roadside bushes), overpowering drivers at main intersections or while
they are asleep at truck stops or resting somewhere along the road.Hot spots
Truck hijackings have to be reported to the nearest police
station (precinct) where the crime took place, therefore stations with high
numbers ofhijack cases provide a clue where hotspots are.
The Heidelberg police station (40 cases) in Gauteng,
currently reports “high occurrences” of truck hijackings on the N3 between the
De Hoek Plaza at Villiers and Vosloorus on its website. So does Durban-based
short term insurance brokers Esbrokers, but which has extended the risk zone up
to Zonkisiwe (near Midrand).
A particular hotspot in Gauteng appears to be the so-called
“Truck City” area in and around Alberton, which is located close to the dry
port of City Deep in southern Johannesburg. Suburbs and townships surrounding
OR Tambo International Airport are also used as launch pads.
The police and Esbrokers also report a high incidence in
Mpumalanga between Benoni and Emahleni on the N12/N4 freeway to Komatipoort.
A worrying aspect is that senior police officers are
believed to be fighting each other for control of truck hijacking syndicates
threatening the transport industry.
In June, the Star reported that several highly placed police
sources confirmed that at least two police generals, whose names are known to
The Star, are under investigation for using their subordinates to orchestrate
hijackings and resell the stolen goods. This was after police had arrested four
suspects for truck hijacking and possession of stolen goods at Crystal Road in
Booysens, using the “blue lights” technique.
One of the suspects was a police officer, a sergeant of the
Johannesburg Flying Squad, who was off duty at the time, according to Gauteng
police spokesman Lieutenant-Colonel Lungelo Dlamini.
Worst ten precincts in 2014
Precinct Province Number of cases
Heidelberg Gauteng 40
Alberton Gauteng 34
Vosloorus Gauteng 27
Zonkizizwe Gauteng 26
Grootvlei Mpumalanga 25
Delmas Mpumalanga 23
Kempton Park Gauteng 18
Witbank Mpumalanga 18
Benoni Gauteng 16
More worrying than truck hijacking is the incidence of
carjacking, which fluctuated between 12 912 vehicles in 1996/7, reached a peak
15 846 in 2001/2
and came down to 14 691 in 2002/3.
Since then the stats have been fluctuating between 13 793 in
2003/4, peaking at 14915 units in
2009 before coming down appreciably to 9
540 in 2012.
But since then reported cases have been steadily rising
again to 9 988 in 2013 and 11 204 in 2014 – a 12.3 percent increase – or more
than 30 vehicles a day.
More than half of them (6 057) were reported in Gauteng,
where your chances of losing your car in your driveway, at a mall, intersection
or highway off-ramp are almost three times higher than in KwaZul Natal (2219)
and six times higher than in the Western Cape (944), where criminals also place
stones on the Cape Town airport freeway.
In fact, carjacking has gone up by 22
percent in Gauteng and 21 percent in the Western Cape alone.
By Province Number
Western Cape 944
Eastern Cape 756
Free State 259
North West 242
Northern Cape 29
Worst ten precincts in 2014
Precinct Province Num Cases
Booysens Gauteng 224
Mpumalanga station KZN 203
Moffatview Gauteng 157
Roodepoort Gauteng 138
Rietgat Gauteng 121 Near Hammanskraal
Dobsonville Gauteng 118 Part of Soweto
Dawn Park Gauteng 117 Close to Vosloorus
Chatsworth KZN 113 Near DBN
Springs Gauteng 110
Ntuzuma KZN 108 Near DBN CBD
The precincts of Booysens and Moffat View are part of a
Johannesburg-South cluster of eight police stations also including Mondeor,
Johannesburg Central (formerly John Vorster Square), Sophiatown, Brixton,
Langlaagte and Fairlands.
The following 30 hijacking hotspots have been identified by
the Topix Works website in Gauteng, as published by the Roodepoort Herals and Moneyweb:
•The William Nicol Drive off ramp from the N1 from the
• The corner of Old Pretoria Road and 1st Avenue in
• New Road off ramp in Midrand.
• Riviera Road off ramp near Killarney Mall.
• Intersection of Christiaan de Wet Road and Wilgerood Road
• All the traffic lights along Louis Botha Avenue between
Alexandra and Hillbrow.
• Parkwood and Saxonwold (Rosebank precinct).
• Upper Houghton and Killarney (Hillbrow precinct).
• Between 10th and 11th avenues and 4th and 7th avenues in
Parkhurst (Parkview precinct).
• Glenhazel, Lombardy East and Sandringham (Sandringham
• Orange Grove and Highlands North (Norwood precinct).
• Yeoville, Bellevue and Bellevue East (Yeoville precinct).
• Wynberg, Bramley, Marlboro and Kew (Bramley precinct).
• Outside Megawatt Park.
• The corner of Kelvin Street, Pretoria Road and CR Swart
• The corner of Elgin Road and Pretoria Road (Kemptonpark
• Linksfield Road off ramp.
• Booysens Road off ramp.
• Nelson Mandela Bridge.
• Wolmarans street.
• The corner of Harrow Street and Abel Street.
• The corner of Able and Saratoga Street and Harrow Road.
• The corner of Jan Smuts Avenue and St Andrews.
• The corner of 17th Street and Krause Street Pageview.
• Heidelberg off ramp.
• Traffic light on Kyalami Drive.
• Beyers Naude off ramp.
• Rivonia off ramp.
• Midrand Road.
• Grayston 11th Street and Rivonia intersections.
• Jan Smuts Avenue and William Nicol Drive split in Hyde
Park.Theft of motor vehicle and motorcycle
Motor vehicle theft (including motor cycles) cases totalled
811 347 over the ten-year period and has been on the decrease almost
year-on-year since 2004, when 88 144 units were stolen until 2014, when
57 178 were stolen compared with 58
312 the previous year.
By Province Number
Gauteng 27 372
Western Cape 9 452
Kwazulu-Natal 8 658
Eastern Cape 3 331
Mpumalanga 2 360
North West 2 054
Free State 2 037
Limpopo 1 026
Northern Cape 326
In KZN, car and motorcycle theft used to be as high as 15
060 cases (41 per day) many years ago but have been steadily reducing to under
9 000 cases (25 per day) last year.
Theft out of or from motor vehicle
By Province Number
Gauteng 42 635
Western Cape 42 369
Kwazulu-Natal 18 590
Eastern Cape 11 515
Mpumalanga 7 785
North West 6 023
Limpopo 5 726
Free State 5 686
Northern Cape 2 976
Theft out of motor vehicles, which were reported as 27 595
(76 cases per day) in 2004, slowed down
to below 16000 cases in 2012, but are well over 18 000 again.
Theft out of a motorvehicle cases include “smash and grab”
cases and are the most predominant in Gauteng and the Western Cape with more
than 42 000 cases having been reported by each last year. This is more than
double the 18 590 cases in KZN.
The thieves have become sophisticated using car jamming
which involves blocking car remotes by using a gate remote because both remotes
operate on a 400Mhz frequency. The thieves jam the frequency so that when the
vehicle's locking system is activated it may indicate to the owner that it is
locking all the doors, but in fact it is being jammed. Motorists then walk away
believing their vehicles are locked, giving the thieves ample opportunity to
simply open the door and help themselves to whatever is in the car and boot.
Car jamming incidents have risen with as many as 40 cases a
week reported in the Northern suburbs of Johannesburg this year. Another
hotspot is the Oasis truck stop in Cato Ridge (KZN).
Three weeks before the release of the crime stats the cost
of vehicle-related crime to the insurance industry was revealed by the South
African Insurance Crime Bureau (SAICB) which said that a staggering R8.5bn
worth of vehicles are stolen and hijacked in SA annually.
Of the R8.5bn worth of vehicles stolen, R4.9bn's worth are
taken across the border, R3.1bn stay in SA as cloned vehicles and R514m end up
in chop shops across SA.
According to Hugo van Zyl, CEO of the SAICB, cloned vehicle
and cross-border syndicates are a growing concern, also because about 39 000
vehicles re-appeared into the system, costing a fortune for the insurance
industry to pay out claims unaware that these vehicles were in fact cloned.
Van Zyl believes data sharing is the key and he has called
on business and crime prevention to stand together now.
Not mentioned in the crime stats is another quote by
Farber: “There's no reward in life
As we all know, risk
can be reduced through preventative measures with the remainder to be insured.
Can you afford to be without it?
• Udo Rypstra
was the founding editor of FleetWatch.
Date: 10 December 2014
Airline Profitability Improves with Falling Oil Prices
Geneva - The International Air Transport Association (IATA) announced
an outlook for improved industry profitability in its Economic
Performance of the Air Transport Industry report. Airlines are expected
to post a collective global net profit in 2014 of some $19.9 billion (up
from the $18.0 billion projected in June). This looks set to rise to
$25.0 billion in 2015.
Lower oil prices and stronger worldwide GDP growth are the main drivers behind the improved profitability.
Consumers will benefit substantially from the stronger industry
performance as lower industry costs and efficiencies are passed through.
The airline industry is highly competitive. After adjusting for
inflation, average return airfares (excluding taxes and surcharges) are
expected to fall by some 5.1% on 2014 levels and cargo rates are
expected to fall by a slightly bigger 5.8%.
The expected $25 billion net post-tax profit represents a 3.2%
margin. On a per passenger basis, airlines will make a net profit of
$7.08 in 2015. That is up on the $6.02 earned in 2014 and more than
double the $3.38 earnings per passenger achieved in 2013.
The return on invested capital (ROIC) is expected to grow to 7.0%.
This is a substantial improvement on the 6.1% ROIC expected to be
achieved in 2014.This is still 0.8 percentage points below the 7.8%
weighted average cost of capital (WACC), so there is still some ground
to cover before achieving sustainable margins.
“The industry outlook is improving. The global economy continues to
recover and the fall in oil prices should strengthen the upturn next
year. While we see airlines making $25 billion in 2015, it is important
to remember that this is still just a 3.2% net profit margin. The
industry story is largely positive, but there are a number of risks in
today’s global environment—political unrest, conflicts, and some weak
regional economies- among them. And a 3.2% net profit margin does not
leave much room for a deterioration in the external environment before
profits are hit,” said Tony Tyler, IATA’s Director General and CEO.
“Stronger industry performance is good news for all. It’s a highly
competitive industry and consumers—travelers as well as shippers—will
see lower costs in 2015 as the impact of lower oil prices kick in.
Airline investors will see ROIC move closer to the WACC. And a healthy
air transport sector will help governments in their overall objective to
stimulate the economic growth needed to put the impact of the global
financial crisis behind them at last,” said Tyler.
2015 Forecast Drivers
Oil Prices: Oil prices have fallen substantially in recent months and
this is expected to continue into 2015 with the full-year average price
expected to be $85/barrel (Brent). If that assumption is correct, it
would be the first time that the average oil price has fallen below
$100/barrel since 2010 (when oil averaged $79.4/barrel).
Fuel Prices: Jet fuel prices are expected to average
at $99.9/barrel in 2015 for a total fuel spend of $192 billion which
represents 26% of total industry costs. It is important to note that the
impact of lower fuel prices will be realized with a time lag, due to
forward fuel-buying practices. Improving fuel efficiency continues to be
a priority for airlines. Fuel efficiency is estimated to have improved
by 1.8% in 2014 and a further improvement is expected in 2015. Fuel
efficiency improvements could be accelerated by reducing the 5% of
wasted fuel burn as a result of airspace and airport inefficiencies.
Economic Growth: Global GDP is expected to grow by
3.2% in 2015, up from 2.6% in 2014. This will be the first time that
global GDP has broken over 3.0% since 2010 (when global GDP grew by 4.1%
in a post-recession bounce back), this time boosted by the fall in oil
Passenger Trends: Passenger traffic is expected to grow by
7.0% in 2015 which is well-above the 5.5% growth trend of the past two
decades. Capacity growth is expected to outstrip this slightly at 7.3%,
pushing the passenger load factor to 79.6% (slightly down on the 79.9%
expected for 2014). The fall in the price of fuel is expected to lead to
cheaper airfares for consumers. After adjusting for inflation, average
return air fares (excluding surcharges and taxes) are expected to fall
by 5.1% to $458 in 2015. Total passenger numbers are expected to grow to
3.5 billion and passenger revenues are expected to grow to $623
Cargo Trends: Cargo volumes are expected to grow by
4.5% in 2015 (slightly ahead of the 4.3% growth expected for 2014). The
air cargo business has faced weak markets and increasing competition
since 2011. There has been an uptick in demand recently but cargo
remains a tough business. The real cost of transporting goods in 2015 is
expected to fall by 5.8%. In total, some 53.5 million tonnes of air
cargo is expected to be flown in 2015. Total cargo revenues are expected
to rise to $63 billion, but that is still some 5% lower than in 2010.
All regions are expected to report improved net profitability in 2015
over 2014. However, there are stark differences in profitability among
the regions. Current and forward-looking industry financial assessments
should not be taken as reflecting the performance of individual
airlines, which can differ significantly.
North America: The strongest financial performance
by far is being delivered by airlines in North America. Net post-tax
profits are the highest at $13.2 billion next year (up from $11.9
billion in 2014). That represents a net profit of $15.54 per enplaned
passenger, which is a marked improvement from just three years earlier.
Net profit margins forecast at 6% exceed the peak of the late 1990s.
This improvement has been driven by consolidation, helping to raise load
factors (passenger + cargo) to 65% this year, lower fuel prices and
ancillaries, which together push breakeven load factors down below 60%
Europe: European airlines continue to struggle as
evidenced by the highest breakeven load factors among all regions
(64.7%). European airlines compete vigorously in the continent’s open
aviation area. But they are hampered by high regulatory costs,
infrastructure inefficiency and onerous taxation. As a result, and
despite the industry in the region achieving the second highest load
factor, financial performance has been poor. Net profits of $4 billion
next year (up from $2.7 billion in 2014) represent only $4.27 per
passenger and a net profit margin of 1.8%.
Asia-Pacific: Airlines in the Asia-Pacific region
are expected to achieve a net profit of $5.0 billion in 2015 (up from
$3.5 billion in 2014) for a 2.2% net profit margin. That translates into
$4.30 per passenger. Some strengthening of cargo markets, particularly
important in this manufacturing region, plus lower fuel costs, are
expected to drive the moderate improvement on 2014.
Middle East: Middle East airlines have one of the
lowest breakeven load factors (58.6%). Average yields are low but unit
costs are even lower, partly driven by the strength of capacity growth.
Passenger capacity is expected to expand by 15.6% in 2015 (up from 11.4%
in 2014). Post-tax net profits are expected to grow to $1.6 billion in
2015 (up from $1.1 billion in 2014). This represents a profit of $7.98
per passenger and a net profit margin of 2.5%.
Latin America: Latin American airlines have faced a
mixed environment. Weak home markets have hampered performance, but a
degree of consolidation and some long-haul success is expected to boost
net profits to $1 billion in 2015 (up from $700 million in 2014). That
would be a profit of $3.53 per passenger and a net profit margin of
Africa: Africa is the weakest region, as in the past
2 years. Profits are barely positive ($200 million in 2015 which is an
improvement on the break-even performance in 2014), and represent just
$2.51 per passenger. Breakeven load factors are relatively low, as
yields are a little higher than average while costs are lower. However,
few airlines in the region are able to achieve adequate load factors,
which are the lowest among the regions by almost five percentage points.
Performance is improving, but slowly.
Connectivity, Jobs, Taxes and Environmental Performance
Despite relatively weak profitability, the airline industry continues
to add value to its consumers, to the wider economy and to governments:
- Aviation’s global connectivity now spans 16,161 city-pairs (2014),
which is nearly double the number in 1994. This connectivity is a
catalyst for economic benefits both for users and the wider economy.
Over that same period, airlines have halved the cost of air transport,
after inflation, which has been a major stimulus for trade, tourism, and
foreign direct investment associated with global supply chains.
- The number of aviation jobs is rising although the pace of hiring is
expected to taper slightly in 2015. Total direct employment in the
sector is expected to reach 2.45 million (up 1.5% on 2014). The total
airline payroll in 2015 is expected to reach $149 billion (up from $142
billion in 2014). Average unit labor costs are expected to fall by 2% in
2015 as productivity per employee improves by 4.8% (almost double the
2.5% improvement in 2014). Airline employees are also extremely
productive for the economies in which they work, generating gross value
added (GVA – which is the company level equivalent to GDP) of $108,610
per employee in 2015 (up 6.3% on 2014).
- The industry tax bill is expected to grow to $125 billion in 2015. That is a 7.2% increase on 2014.
- Airlines’ environmental performance continues to improve. Airlines
are expected to use some 282 billion liters of fuel in 2015. In doing
so, the industry is expected to emit 751 million tonnes of carbon. While
that is a 5.1% increase on the previous year, it is decoupled from the
6.8% (ATK) increase in overall capacity to meet consumer demand.
Investments in new aircraft are a major driver of fuel efficiency
improvements. In 2015 airlines are expected take delivery of 1,700 new
aircraft worth $180 billion. About half of these are expected to replace
less fuel-efficient older aircraft.
The industry remains committed
to achieving carbon-neutral growth from 2020. This is in addition to a
1.5% average annual improvement in fuel efficiency to 2020 and
complements the long-term goal of cutting net emissions in half by 2050
(compared with 2005 levels).