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: 

Establish tariffs in a transport function 
SAQA US ID UNIT STANDARD TITLE
255804  Establish tariffs in a transport function 
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 read and interpret financial information in order to form an accurate picture of the performance of the business. They will use this information to set tariffs for future business operations.

People credited with this unit standard are able to:
  • Access and analyse financial information as a basis for tariff setting.
  • Investigate the market and demand elasticity.
  • Determine costs and set tariffs.
  • Monitor and review the costing process and tariff structures. 

  • 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 
    Access and analyse financial information as a basis for tariff setting. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Sources of financial information within the business are identified and described in terms of the insights they provide into costs and profitability of the operation. 
    ASSESSMENT CRITERION RANGE 
    Financial information includes:
  • Income statement; balance sheet; invoices; transport department submissions; vehicle operational information (trip sheets, vehicle logs, petrol cards/fleet management, depreciation, accidents).
     

  • ASSESSMENT CRITERION 2 
    Financial information is reconciled to own reports and submissions of actual services delivered. 

    ASSESSMENT CRITERION 3 
    Financial variances are noted, investigated and corrected according to company procedures. 

    ASSESSMENT CRITERION 4 
    Interpretation of financial information provides an accurate description of business performance and profitability. 

    ASSESSMENT CRITERION 5 
    Analysis of financial information identifies possible irregular practice for further investigation. 

    ASSESSMENT CRITERION 6 
    Departures from the norm in costs, expenditure or income are investigated for further action in line with company procedures. 

    ASSESSMENT CRITERION 7 
    The importance of provision for depreciation is explained with reference to overall cost structures and the sustainability of the transport operation. 

    ASSESSMENT CRITERION 8 
    Contributions to costing and budgeting reflect a good grasp of the financial status of the organisation, and are realistic in terms of its financial history and projected operations. 

    SPECIFIC OUTCOME 2 
    Investigate the market and demand elasticity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Market research identifies all alternative operators and/or modes of transport for a particular geographic area, or specified routes and/or destinations. 

    ASSESSMENT CRITERION 2 
    Research investigates the transport requirements of the region or route and the shortfall or surplus in current service provision. 

    ASSESSMENT CRITERION 3 
    Research investigates and establishes the average cost of transport services to various commuter profiles, together with the quality of the service available. 

    ASSESSMENT CRITERION 4 
    The demand elasticity of the 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 price on customer choices. 

    SPECIFIC OUTCOME 3 
    Determine costs and set tariffs. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Profit margins for a sustainable operation are identified from projected income and expenditure, as the basis for costing and tariff setting. 

    ASSESSMENT CRITERION 2 
    Profit margin targets set by the business are analysed in terms of their implications for the operation, and factored into costing exercises. Profit objectives are benchmarked against similar operations in the market. 

    ASSESSMENT CRITERION 3 
    All costs affecting the transport operation are identified and included in the detailed costing process. 
    ASSESSMENT CRITERION RANGE 
    Costs include:
  • Vehicle finance costs; compliance costs (licensing, registration); fixed costs (wages, salaries, other benefits); overheads (secretaries, rentals, buildings, staff costs, phones); operating costs (fuel/power/coal, lubricants, tyres, wheels); handling costs (loading, offloading, stowing, dunnage); support services (stevedores, agents, warehousing, brokers, demurrage); opportunity costs (spoiled product due to delays); consequential losses; off-spec product (pipelines); contamination in the pipeline; general average costs; insurance.
     

  • ASSESSMENT CRITERION 4 
    Projected income for projects or service provision on contracted routes covers costs and required profit margin for the duration of the assignment. 

    ASSESSMENT CRITERION 5 
    Final tariff set is realistic in terms of costs and expected profit margins, company performance capability and market demand elasticity. 

    ASSESSMENT CRITERION 6 
    Required service levels to support tariffs are determined and clearly articulated for marketing and/or proposal purposes and service level agreements. 

    ASSESSMENT CRITERION 7 
    Proposals submitted comply with company requirements for format, disclosure, and scope of authority. 

    ASSESSMENT CRITERION 8 
    Submitted proposals are tracked and feedback obtained on their acceptance or rejection is gathered for purposes of improving the costing process. 

    SPECIFIC OUTCOME 4 
    Monitor and review the costing process and tariff structures. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Financial performance is monitored on an ongoing basis to determine the viability of the tariff and sustainability of the transport operation. 

    ASSESSMENT CRITERION 2 
    Feedback on proposals is reviewed for insights into costing, profit objectives, tariffs set and demand elasticity to improve costing process, and realistic, competitive proposals. 

    ASSESSMENT CRITERION 3 
    Ethical considerations with respect to market demand elasticity and set tariffs are integrated into the costing and review processes. 

    ASSESSMENT CRITERION 4 
    Adjustments, where necessary, balance profit objectives with affordability in line with the principles of ethical business practice. 

    ASSESSMENT CRITERION 5 
    The tariff setting process is ensured to comply with relevant legislation and regulations, and ethical practices as reflected in the company's code of conduct. 

    ASSESSMENT CRITERION 6 
    Unfair practices are rejected and/or reported as required by company policy and procedures. 
    ASSESSMENT CRITERION RANGE 
    Unfair practices include:
  • Unfair pricing; bribery; nepotism.
     


  • 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.
  • South African National Standard (SANS) codes.
  • Specific legislation - related to transport operations.
  • Company policies and procedures. 

  • 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: Costing a transport operation involves identifying problems and making provision for them in realistic costing models that will enable operations to run profitably. 

  • UNIT STANDARD CCFO WORKING 
    Work effectively with others as members of a team, group, organisation or community.
  • Note: Information will be gathered and discussed with others; negotiation is involved in setting tariffs. 

  • UNIT STANDARD CCFO ORGANISING 
    Organise and manage themselves and their activities responsibly and effectively.
  • Note: An important part of ensuring that all factors are considered and monitored. 

  • UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information.
  • Note: Critical - costing for tariff purposes must account for all relevant information. It must be critically evaluated to ensure realistic costing. 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively, using visual, mathematical and/or language skills in the modes of oral and/or written presentations.
  • Note: Setting tariffs implies communication and negotiation. 

  • UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically showing responsibility towards the environment and health of others.
  • Note: Scanning information systems for data; benchmarking national and internationally. 

  • 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: Consideration of all the factors that impact cost, internal and external, implies viewing the world in this way. 

  • 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 for this standard must include an actual or realistic simulation of a costing exercise.
  • Assessment will be conducted in the context of a particular mode of transport.

    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 


    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.