JOHANNESBURG has signed a R2,4bn deal with Super Fleet, the fleet management and maintenance arm of Super Group, to outsource its 6000-vehicle fleet and all its transport operations.
The five-year contract is worth R360m a year, and will run at the same time as a R60m contract to supply the fire department with 104 fire engines for 10 years.
The city’s outsourcing programme is part of a broader plan to overhaul the council’s services to meet the challenges of efficient management.
Super Fleet will provide a full maintenance service, including procurement, licensing, fleet management, insurance and disposal of 6000 vehicles.
This will involve nine departments, including metropolitan police, waste management, water and sanitation, roads and stormwater, parks and recreation, emergency management services, core administration and metropolitan electricity.
Executive chairman Larry Lipschitz said all vehicles would be replaced within two years with the fleet reduced to an optimal level of 4000 vehicles.
The city will benefit from having its vehicle requirements supplied on a 90% availability basis as a result of standardisation, parts preplanning and the fast tracking of repairs.
Super Fleet will employ all 408 council staff members who have been involved in fleet maintenance. Most of these will operate under the management of Super Group’s fleet workshop chain, Power Plus Performance. Four of the city’s workshops have been integrated into Power Plus Performance.
Lipschitz said the contract would benefit a number of Super Group divisions. Power Plus will supply the workshops, Femo the parts, dealerships the vehicles and Super Rent the short-term rentals.
The technology arm of Super Group Logistics will take charge of fuel management, remote engine monitoring and tracking. All vehicles will be managed by Super Fleet’s in-house fleet management software and monitored by their 24-hour call centre in Sandton.
Super Fleet has operated in the fleet management market for the past 10 years and, with 9000 vehicles under its control, is the market leader.