The relationship between speed and vehicle operating

cost
It is important that any fleet manager know the magnitude of the elements of vehicle operating cost.
One variable that effects these elements and ultimately the vehicle operating cost, is speed. There is
a direct relationship between speed and Fuel; Oil, Tyres; Depreciation and vehicle maintenance cost.

As such the driving behaviour of staff must be closely monitored and corrective measures
suggested to lower vehicle operating cost. E.g. even though the speed limit on the highway (lets say
the N1 between Cape Town and Pretoria) is 120km/h, it does not mean that your truck must travel at
that speed. This is because a truck is much more economical (minimising vehicle operating cost) at
a driving speed of 80km/h. Another variable that then comes into play is travel time, but the savings
in vehicle operating cost from travelling at appropriate speeds must then therefore be weight against
the cost of longer travel.

Attached is a vehicle operating cost model that I used during my studies. It currently shows the
values in 2007 rates, but you can just update these values for your year under review. In the sheet
"Unit Cost" you simply update the values in green, and then in the second sheet "Cost Model" you will
then see the cost per kilometre for each element of vehicle operating cost at a constant speed of
60km/h. You can then change (increase or decrease) the speed of the different vehicle types to
display the individual or total vehicle operating cost.Through this you can find the optimal operating
speed at which your vehicles must travel to minimise vehilce operating cost.

Assignment 1

New speed limits proposed for South

Africa
The Road Traffic Management Corporation is promoting a number of interventions to reduce the
number of fatalities on South Africa’s roads – including speed limit changes.
Presenting to parliament on Tuesday (15 February), the corporation said a programme is currently
underway to reduce the speed in urban areas, particularly around schools and routes that cyclists
frequent.
An accompanying presentation indicated that the speed limit should be reduced from 60km/h to
50km/h on urban roads, and from 120km/h to 110km/h on major roads.
This is in line with a recommendation made by the United Nations that countries of the world should
look at reducing speed by 10km/h to reduce the number of fatalities, RTMC chief communication
officer Simon Zwane said.
Speaking to BusinessTech, Zwane said that as a member of the UN’s roads council, this decision
was binding for South Africa and the government is promoting the lower limit. However, he noted
that authorities have not yet begun a formal process to change the regulations.
The United Nations has called on policymakers to act for low-speed streets worldwide, limiting
speeds to 30km/h (20mph) where people walk, live and play.
The Department of Transport and the Road Traffic Management Corporation (RTMC) has previously
looked at a proposal to review speed limits in South Africa, with a particular focus on the country’s
highways.
This proposal would see the baseline top speeds across the country’s roads reduced by 20km/h.
It would also effectively drop the speed limit on the country’s highways from 120km/h to 100km/h,
while the top speeds on main roads would drop from 100km/h to 80km/h. Speeds in residential
areas would decrease from 60km/h to 40km/h.
(Source: https://businesstech.co.za/news/motoring/558466/new-speed-limits-proposed-for-south-
africa/)
Assume you are an intern at Golden Arrow Bus Services. You are approached by the general
manager, Mr Derick Meyer, that asks you to prepare a report on the impact that this application
might have on one of GABS's service operations.
Thus you are asked to answer the following (+- 3 pages):
"To what extend will the reduction of speed limits impact the service operations of the Sea Point to
Cape Town route (including reverse leg) in terms of timing and vehicle operating cost."
Use any resources you deem neccesary, i.e. 
https://gabs.co.za/RouteandTimes.aspx

Padvervoerbestuur - Road transport management - 744