Trucknet establishes its position in the global supply chain in an innovative project with the global fuel giant Shell
Trucknet announces progress with the signing of another Memorandum of Understanding to launch a joint venture with Omega Advanced Technologies SA that has a pilot payment agreement with Shell Downstream South Africa (PTY) Ltd
The goal is to bring Trucknet’s solution to South Africa and to later expand in Europe and other countries in the world together with Shell Global and turn every truck into a digital asset for Trucknet
A joint company will be established in which about 60% is held by Trucknet and about 40% by Omega Israel. All rights regarding the pilot with Shell South Africa and the registered patent will be in the hands of the joint company
According to Mr Hanan Fridman, the company’s founder and CEO: “The connection with Shell Global and Omega’s unique solution combine with Trucknet’s comprehensive global solution for the supply chain. This is a natural connection for us, using Trucknet’s large database and turning it into additional revenue for the company as we link with one of the largest fuel chains in the world”
The combination of all these solutions moves us forward towards a holistic solution for smart cities that includes parking lots on toll roads and congestion fees. I have no doubt that the linking of technologies will contribute to enhancing revenues for the Trucknet platform
December 29, 2021, Israel (Tel Aviv: TRAN), Trucknet is pleased to announce that it has signed on the advancement of a Memorandum of Understanding for the establishment of a joint venture with Omega Advanced Technologies SA (PTY) Ltd that has a pilot payment agreement with Shell Downstream South Africa (PTY) Ltd
:Main points
- Subject to a due diligence process and the signing of a detailed Agreement, the Parties will establish a joint venture in the area of identification systems and payment through RFID technologies (Radio Frequency Identification) for refueling stations for vehicle fleets named Omega TAS or any other name agreed upon
- The assignment of rights in the joint company will be about 60% for Trucknet and about 40% for Omega Advanced Technologies Ltd Israel. The two companies will carry out activities in the above-mentioned area through the joint venture only. Trucknet will be entitled to offer its platform to third Parties if they have an activity in the area of identification systems
- Mr Yehuda Lachman, Owner of Omega Israel, will transfer to the joint venture his holding of share capital of approximately 100% of Omega South Africa, while the cooperation Agreement between Omega South Africa and Shell Downstream South Africa (PTY) Ltd. (Shell Corporation) is still valid, subject to obtaining consent from Shell Corporation no later than the date of signing the detailed Agreement
- The company will provide the joint project with the knowledge it has gained for project business development, in addition to business connections in the world of logistics
- The signing of the detailed Agreement is dependent upon completion of a legal, accounting, commercial and operational due diligence process by both Parties, including in relation to Omega South Africa; the Parties will ensure that the mutual due diligence check is completed within approximately 45 days from the date of signing the Memorandum of Understanding
- Upon conducting the due diligence check, the Parties will negotiate prior to signing a detailed Agreement, based on agreement by the Parties in the Memorandum of Understanding as well as agreement on other matters, which could include representations, indemnifications, commitments and additional conditions, as is common in such joint projects
- 7. Signing the detailed Agreement will be dependent upon carrying out the following conditions, as well as additional conditions to be defined in the Agreement
- Obtaining required authorizations for the joint venture as well as approval from the Trucknet Board of Directors, additional regulatory authorizations and third-party endorsement, if required
- Transfer of rights and assets to the joint venture from the patent application filed in South Africa, in connection with the field of activity
- Transfer of 100% of Omega South Africa share capital to the joint project, while ensuring that the existing contract between Omega South Africa and Shell Corporation remains valid
- Mr Lachman and Omega Israel will transfer to the joint venture all their rights of any kind for the intellectual property assets in the field of activity
- 8. The joint venture will receive management services from Mr Lachman, Omega Israel, who will serve as the joint venture’s CEO and Director, and this will be for a period of not less than 36 months from the closing date of the final Agreement, for monthly management fees in the amount of NIS40,000 including VAT
- The Company will provide the joint venture with initial funding up to about $2 million, including business development in additional countries, for a period of approximately three years, as needed. The financing will be provided by owner loans, with redemption terms at the lowest required interest rates by the Israel tax authorities, and will receive priority for repayment of the proceeds from the joint venture
- The Memorandum of Understanding will be valid until the signing of the final Agreement or until 15 March, 2022, whichever is earlier. If the detailed Agreement has not been signed by 15 March, 2022, and the interim period has not been extended by agreement between the Parties, the Memorandum of Understanding will expire and neither Party will have a complaint or a demand against the other Party regarding the Memorandum of Understanding or its termination
- During the interim period, the two companies will not initiate or conduct negotiations or engagement with any third Party, in connection with the establishment of the joint venture, which may hinder the possibility for the Parties to enter into the joint venture as specified in the Memorandum of Understanding
- Excluding the provisions of the Memorandum of Understanding regarding exclusivity in negotiations (No Shop) and maintaining confidentiality which will oblige the Parties for all intents and purposes, everything stated in the Memorandum of Understanding is for negotiation purposes only, and there is no obligation by either Party to enter into a detailed Agreement, or any other agreement, in connection with the joint venture
Omega Advanced Technologies Ltd
Omega Technologies was established in Israel in 1988. Its main activity is technological solutions to improve efficiency in business processes while integrating new technologies, such as secure and encrypted RFID mechanisms into various ecosystems. The product package of Omega Technologies includes solutions for payment as well as for fleet management, mainly for the oil, transportation and banking industries
The Principles Document specifies that the Parties will work to promote cooperation between the companies, at their discretion, and to sign a detailed and binding Agreement within 120 days from the date of the signing of the Principles Document. If the Parties do not reach agreement and do not enter into a detailed Agreement within the stated period and the period has not been extended, the Principles Document will have no binding validity
The information provided above regarding the cooperation with Omega is to the best of the Company’s knowledge, based on the data in its possession that has not been reviewed by the Company independently. In addition, the Company is unable at this stage to evaluate the prospects of the Parties entering into a binding Agreement, if at all, and the extent of Omega’s expected use of the Trucknet platform
About the Company
Trucknet Enterprise provides a green, cloud-based ALL-IN-ONE digital platform that enables transportation and logistics companies to reduce transport costs and save resources by optimizing shipments across all modes of transportation, through artificial intelligence (AI), business intelligence (BI) and ML machine learning). The platform includes an online tool for calculating CO2 emissions from vehicle fleets and offers smart automatic matching between trucks and cargo, based on location. In addition, an easy and fast payment solution is available for the B2B market
Trucknet’s platform enables transportation and logistics companies to significantly minimize empty rides through automatically prioritizing available vehicles with other transport and logistics companies. Based on location, the system carries out smart matching between empty trucks and available cargo
Trucknet’s solution enables full automation and optimization for land transport for companies managing commercial vehicle fleets and for customers of logistics services. The system assists companies to significantly lower service costs and improve efficiency and profitability through reduction of the number of empty trucks on the roads. This results in a reduction of air pollution and GHG emissions, traffic accidents involving trucks as well as less damage to the environment
Data from the Israel Central Bureau of Statistics show that in 30% of traffic accidents heavy-duty vehicles are involved and 23% of the pedestrians killed in urban areas are from heavy vehicles (trucks and buses)
The Company aims to establish a unique professional system in the area of shared transport. Trucknet’s software platform interfaces with all leading work scheduling systems, TMS and leading telematics systems. Transport companies can improve and optimize vehicle fleet management and sharing of resources, by mutual use of digital documents (without the need to print). Trucknet has developed user-friendly interfaces for the driver and for the end customer offering complete connectivity, monitoring and transparency as well as providing solutions for payment through the system
Trucknet operates in the international transportation and logistics market, which is assessed at about $19.36 trillion. As of 2020, the Company has approximately half a million trucks connected from roughly 4,000 companies. Some data from the world about trucks that travel empty (without cargo): in Europe 27% of trucks on the roads run empty, in the United States 36% and in Asia 46%
Trucknet conducted a joint pilot project with the Renault Group during October 2020, in which a connection was made to Renault’s Bid system that tenders each work order. Through the system, contractors were identified on the basis of their location in relation to Renault’s requests. The pilot proved that connection to Trucknet’s platform led to improvement in the efficiency and profitability of logistics services by 17%; savings achieved were up to €115,000 in two weeks for 268 trips out of a total of 371 (68% success rate)
The results of the pilot demonstrated the platform’s ability to improve efficiency and save transportation costs for logistics companies. This is due to the fact that the Trucknet platform adjusts shipping orders for (transport) contractors, based on their geographical proximity to the location of cargo, thus, allowing them to submit lower price proposals and save costs
The Company, established in 2016 by CEO Mr. Hanan Fridman, employs approximately 40 people spread across offices in the world. Trucknet has signed agreements and pilot projects with leading companies in and outside Israel, including DSV, La Poste, DPD, ChronoPost, Allcargo, Israel Post and more
