Speaking at UD Trucks’ 2026 media engagement on 27 January at Zwartkops Raceway in Centurion, Gauteng, Van den Heede said the South African transport and logistics sector is being reshaped by rising operating costs, infrastructure constraints, skills shortages, and growing customer expectations around vehicle uptime, efficiency, and sustainability.
Against this backdrop, he explained that the company’s strategy has evolved beyond simply selling vehicles to offering integrated transport solutions aimed at supporting customers throughout the full operating life of a truck.
Van den Heede began his presentation by outlining the broader global environment in which the logistics industry operates. He highlighted the following key forces that shaped 2025: political shifts under new world leaders; ongoing geopolitical conflicts; climate change pressures; moderate global GDP growth; changing trade dynamics, such as US tariffs; rising digital consumption; and accelerating technological innovation, particularly in artificial intelligence (AI) and space exploration.
He described the current operating environment as a ‘RUPT’ world – rapid, unpredictable, paradoxical, and tangled – characterised by fast-paced AI development, geoeconomic confrontation, tariff and sanction uncertainty, the rivalry between the US and China, misinformation, and growing cyber threats.
“As a truck company, we talk about these issues because all these disruptors influence what moves, how it moves, how fast it moves, how far it moves, where it moves, and at what cost it moves,” Van den Heede said. He gave the example of sudden tariff changes, which have a direct impact not only on logistics flows but also on broader global business activity.
A shift from cost to lifetime profit
A central theme of Van den Heede’s presentation was UD Trucks’ focus on total profit over lifetime (TPOL) rather than the more traditional total cost of ownership.
He said fuel efficiency, vehicle uptime, service support, and predictable maintenance costs were now critical considerations for operators, particularly in South Africa, where logistics underpins key sectors such as agriculture, mining, and manufacturing.
“Total cost of ownership looks mainly at costs, but it doesn’t fully consider productivity, uptime, or the strength of the service network needed to keep trucks on the road,” he said.
TPOL, by contrast, considers the vehicle purchase price, operating costs such as fuel and maintenance, uptime, productivity, and eventual resale value.
Digitalisation and connected fleet management
Digitalisation and connectivity also featured strongly. Van den Heede highlighted UD Trucks’ growing investment in telematics and data-driven fleet management tools that allow operators to monitor vehicle performance, driver behaviour, and maintenance requirements in real time.
These technologies are increasingly important for improving operational efficiency and managing risk in South Africa’s strained logistics network.
UD Trucks collects extensive data on vehicle performance, including where and how trucks fail, and the warning signs leading up to failures. This data is analysed using AI and machine learning to design preventative maintenance action plans.
“The technology is not ready-made, but this is a challenge we took on to serve our customers on their journeys,” Van den Heede said.
Viable sustainability
Sustainability formed another pillar of the presentation. While acknowledging the practical constraints local operators face, Van den Heede said UD Trucks is aligning with global trends towards lower emissions, improved fuel efficiency, and alternative energy solutions while remaining cognisant of what is currently viable in the South African market.
UD Trucks Aftermarket Director Sanjay Naipal expanded on the financial impact of vehicle downtime on transport operations. He demonstrated how fixed and variable costs – including vehicle and trailer instalments, insurance, driver salaries, licensing, fuel, and maintenance – are typically accounted for, but that the cost of lost operating time is often underestimated.
“Four weeks of downtime can wipe out a customer’s entire year’s profitability,” Naipal said.
He explained that UD Trucks is increasingly focused on proactive maintenance and breakdown prevention through customised service plans and AI-driven insights. Vehicle telematics systems communicate directly with the company, enabling service intervals to be planned in advance, parts and technicians to be scheduled, and workshop time to be reduced.
AI is also being used to predict breakdowns by analysing fault codes and vehicle histories, warning customers before a failure occurs. The system is still being refined as more data is gathered.
In addition, UD Trucks is expanding its telematics offering to include advanced dash cameras that provide insights into driver behaviour, including unsafe following distances, lane changes, and driver fatigue.
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