SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate an understanding of the economics of transport 
SAQA US ID UNIT STANDARD TITLE
255794  Demonstrate an understanding of the economics of transport 
ORIGINATOR
SGB Transport and Logistics Operations 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 11 - Services Transport, Operations and Logistics 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard will be useful for people who are required to ensure that freight, including goods, passengers or livestock, is moved from origin to destination in terms of stakeholder requirements, and in compliance with legislative requirements and international codes and practices.

This unit standard will recognise the essential knowledge and skills required to consider the various aspects of transport economics as they apply to own transport operation.

People credited with this unit standard are able to:
  • Demonstrate an understanding of transport in the national economy.
  • Demonstrate an understanding of the economics of multi-modal transport.
  • Demonstrate an understanding of demand and supply elasticity.
  • Demonstrate an understanding of fleet utilisation as it relates to transport economics.
  • Demonstrate an understanding of maintenance in transport economics. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    The credit calculation is based on the assumption that learners are already competent in terms of the following outcomes or areas of learning when starting to learn towards this unit standard:
  • Communications and Mathematical Literacy at NQF Level 4. 

  • UNIT STANDARD RANGE 
    Specific range statements are provided in the body of the unit standard where they apply to particular specific outcomes or assessment criteria. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate an understanding of transport in the national economy. 
    OUTCOME RANGE 
    Transport includes all modes of transport, and combinations of different modes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The role of transport in the supply chain is described with reference to the physical distribution of goods from points of supply to consumers. 

    ASSESSMENT CRITERION 2 
    Own transport operations role is described with reference to specific suppliers, types of freight, and delivery points. 

    ASSESSMENT CRITERION 3 
    The effect of booms and fluctuations in the demand for goods on transport is explained with reference to the transport dependency of product supply. 

    ASSESSMENT CRITERION 4 
    The effect of Rand value fluctuations is explained with reference to import and export cycles, the origin and/or destination of products, and the consequent demand for certain types and modes of transportation. 

    ASSESSMENT CRITERION 5 
    The location of ports and harbours, and the viability of routes linking these nationally and internationally, are discussed with reference to the consequent demand for certain modes and types of transportation. 

    SPECIFIC OUTCOME 2 
    Demonstrate an understanding of the economics of multi-modal transport. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The possibilities for links between own transport operation and other modes to facilitate and/or extend service delivery are identified and described with reference to cost and customer demand. 

    ASSESSMENT CRITERION 2 
    Multi-modal options are investigated for potential improvements in efficiency and cost effectiveness of service delivery. 

    ASSESSMENT CRITERION 3 
    Benefits offered by multi-modal options are matched to identified customer needs, and decisions with respect to multi-modal options are based on an understanding of what is important to particular customers, and what will bring 'felt' service benefits. 
    ASSESSMENT CRITERION RANGE 
    Benefits include:
  • Price; carrying capacity; frequency; convenience; speed; security.
     

  • ASSESSMENT CRITERION 4 
    Recommendations for multi-modal service delivery are supported by accurate and detailed cost benefit analyses. 

    ASSESSMENT CRITERION 5 
    Recommendations on links with other modes are consistent with the type and intended destination of the freight. 
    ASSESSMENT CRITERION RANGE 
    Type includes:
  • Bulk, small items, live items.
     

  • ASSESSMENT CRITERION 6 
    Recommendations are realistic with respect to the possibilities and limitations of multi-modal transport links for own particular transport operation. 
    ASSESSMENT CRITERION RANGE 
    Limitations includes:
  • Transport configuration; loading and off-loading requirements; distance; routes; service availability at destination points; seasonal demand; permits and licenses.

    Recommendations include:
  • Reference to the requirements for, and availability of, specialised handling equipment or infrastructure.
     

  • SPECIFIC OUTCOME 3 
    Demonstrate an understanding of demand and supply elasticity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Alternative operators and/or modes of transport for a particular geographic area, or specified routes and/or destinations, are identified in terms of price, carrying capacity, frequency, convenience, speed, security. 

    ASSESSMENT CRITERION 2 
    The shortfall or surplus in current service provision is determined with respect to the transport requirements of the region or route. 

    ASSESSMENT CRITERION 3 
    The demand elasticity of a market is determined in relation to the number of providers and/or alternate modes of transport available for the region or route and the impact of key determinants on customer choices. 
    ASSESSMENT CRITERION RANGE 
    Key determinants include:
  • Price, carrying capacity, frequency, convenience, speed, security.
     

  • ASSESSMENT CRITERION 4 
    Business opportunities for own transport operation are determined in relation to demand, and own ability to satisfy demand within operational and ethical constraints. 

    ASSESSMENT CRITERION 5 
    The impact of just-in-time supply requirements on demand elasticity is explained with reference to customer demands, fleet or infrastructure constraints and supplier flexibility. 
    ASSESSMENT CRITERION RANGE 
    Fleet/infrastructure constraints include:
  • Capacity, scheduling, flexibility (configuration and mode).
     

  • ASSESSMENT CRITERION 6 
    The effect of seasonal demand on demand elasticity is explained with reference to demand fluctuations, and the implications for type and mode of transport. 

    SPECIFIC OUTCOME 4 
    Demonstrate an understanding of fleet utilisation as it relates to transport economics. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The importance of monitoring vehicle, vessel and/or craft utilisation is explained with reference to return on investment, and actual fleet requirements. 

    ASSESSMENT CRITERION 2 
    Add-on options to vehicles are described in terms of their advantages for vehicle utilisation. 
    ASSESSMENT CRITERION RANGE 
    Add-ons include:
  • Demountables and containers; articulated vehicles; trucks/coaches (rail); barges.
     

  • ASSESSMENT CRITERION 3 
    The importance of procuring suitable vehicles, vessels and/or craft is discussed in relation to the type of operation and freight carried, and the need for optimum vehicle utilisation. 

    ASSESSMENT CRITERION 4 
    The advantages of flexible vehicle, vessel and/or craft configuration are discussed in relation to fleet utilisation. 

    ASSESSMENT CRITERION 5 
    Relative advantages and disadvantages for procurement versus third party arrangements are discussed with reference to income, costs and optimal fleet utilisation. 

    SPECIFIC OUTCOME 5 
    Demonstrate an understanding of maintenance in transport economics. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The importance of making provision for maintenance in costing a transport operation is described with reference to direct and indirect costs of maintenance, and the impact on the profitability of the enterprise. 
    ASSESSMENT CRITERION RANGE 
    Costs include:
  • Consumables, parts, spares, maintenance facilities, skilled labour, downtime.
     

  • ASSESSMENT CRITERION 2 
    Factors which lead to compromises in the provision for maintenance are identified and discussed with reference to reliability, ability to meet service level agreements, and market perceptions of the organisation. 

    ASSESSMENT CRITERION 3 
    The importance of proper provision for maintenance is explained with reference to ethical business principles and current compliance standards for the sector. 
    ASSESSMENT CRITERION RANGE 
    Compliance standards include:
  • Civil Aviation Authority (CAA) International Civil Aviation Organization (ICAO), Federal Aviation Administration (FAA), International Aviation Safety Assessments (IASA), National Road Traffic Act, 1996 (Act No 93 of 1996) as amended, South African Rail Commuter Corporation (SARCC) Standards of Training, Certification and Watchkeeping (STCW), South African Maritime Safety Authority (SAMSA).
     

  • ASSESSMENT CRITERION 4 
    The importance of maintenance scheduling is explained with reference to downtime, and the impact on service level agreements and contractual obligations. 

    ASSESSMENT CRITERION 5 
    Factors affecting maintenance downtime are identified and included in planning for maintenance scheduling. 
    ASSESSMENT CRITERION RANGE 
    Factors include:
  • Location of maintenance centres; the complexity and duration of the task; cost of task; skills and/or equipment availability.
     

  • ASSESSMENT CRITERION 6 
    The schedule minimises downtime, and maximises fleet utilisation, without compromising safety and reliability. 

    ASSESSMENT CRITERION 7 
    Maintenance scheduling complies with vehicle warranty prescriptions. 

    ASSESSMENT CRITERION 8 
    Vehicle, vessel or craft service and maintenance costs are tracked in relation to reliability over the lifespan of the vehicle to inform decisions around new vehicle procurement. 

    ASSESSMENT CRITERION 9 
    The possible benefits of outsourcing the maintenance function to improve service delivery are investigated in terms of the relative costs and benefits. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation Options:
  • Providers of learning towards this unit standard will need to meet the accreditation requirements of the relevant ETQA.

    Moderation Option:
  • The moderation requirements of the relevant ETQA must be met in order to award credit to learners for this unit standard. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    The following essential embedded knowledge will be assessed through assessment of the specific outcomes in terms of the stipulated assessment criteria. Candidates are unlikely to achieve all the specific outcomes, to the standards described in the assessment criteria, without knowledge of the listed embedded knowledge. This means that for the most part, the possession or lack of the knowledge can be directly inferred from the quality of the candidate's performance. Where direct assessment of knowledge is required, assessment criteria have been included in the body of the unit standard.
  • Customer service.
  • Ethical business practices.
  • South African National Standards (SANS) codes.
  • Corporate governance.
  • Company policies and procedures.
  • Cost benefit figures. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems and make decisions using critical and creative thinking.
  • Note: Transport as an industry provides solutions for moving people and goods from point of origin to point of destination. Doing this cost effectively and safely requires identifying and solving problems. 

  • UNIT STANDARD CCFO WORKING 
    Work effectively with others as members of a team, group, organisation or community.
  • Note: Essential to the standard - teamwork is core to all transport operations. 

  • UNIT STANDARD CCFO ORGANISING 
    Organise and manage themselves and their activities responsibly and effectively.
  • Note: Organisation is at the heart of accepting contracts, allocating, scheduling, tracking and delivering people and goods. 

  • UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information.
  • Note: Core to the standard - knowing what must be moved, how and by when determines the nature of the transport assignment. 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively, using visual, mathematical and/or language skills in the modes of oral and/or written presentations.
  • Note: Critical to understanding client needs and keeping them informed of progress throughout. 

  • UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically showing responsibility towards the environment and health of others.
  • Note: Technology plays an essential role in all aspects of transport operations. 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation.
  • Note: Transport impacts every area of life, and is in turn impacted by a myriad of external factors. 

  • UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Notes to Assessors:

    Assessors should keep the following general principles in mind when designing and conducting assessments against this unit standard:
  • Focus the assessment activities on gathering evidence in terms of the main outcome expressed in the title to ensure assessment is integrated rather than fragmented. Remember we want to declare the person competent in terms of the title. Where assessment at title level is unmanageable, then focus assessment around each specific outcome, or groups of specific outcomes.
  • Make sure that evidence is gathered across the entire range, wherever it applies. Assessment activities should be as close to the real performance as possible, and where simulations or role-plays are used, there should be supporting evidence to show the candidate is able to perform in the real situation.
  • Do not focus the assessment activities on each assessment criterion. Rather make sure the assessment activities focus on outcomes and are sufficient to enable evidence to be gathered around all the assessment criteria.
  • The assessment criteria provide the specifications against which assessment judgements should be made. In most cases, knowledge can be inferred from the quality of the performances, but in other cases, knowledge and understanding will have to be tested through questioning techniques. Where this is required, there will be assessment criteria to specify the standard required.
  • The task of the assessor is to gather sufficient evidence, of the prescribed type and quality, as specified in this unit standard, that the candidate can achieve the outcomes again and again and again. This means assessors will have to judge how many repeat performances are required before they believe the performance is reproducible.
  • All assessments should be conducted in line with the following well documented principles of assessment: appropriateness, fairness, manageability, integration into work or learning, validity, direct, authentic, sufficient, systematic, open and consistent.

    The following particular issues should be taken into consideration when assessing against this unit standard:
  • Assessment may be by means of answers to short questions, a written assignment, or case study.

    Definition of Terms:
  • Terms have been clarified as far as possible through the use of range statements. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  61489   National Certificate: Transport Operations  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  TETA 
    Elective  65649   National Certificate: Official Statistics  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  PSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Diversity technology Training Institute 
    2. Ikusasa Lethu Projects and Training (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.