Amalgamated group provides integrated offering

The Bidvest group last week announced that it was to amalgamate its Safcor Panalpina and Rennies Distribution Services (RDS) subsidiaries from December 1. This tie-up, said MD of the new company, James Reddy, is intended to create a combined entity with a global service offering. “Over the past few years RDS and Safcor Panalpina have played significant roles in contributing positively to the performance of the Bidvest freight division,” he added. “While Safcor Panalpina has operated primarily in the clearing and forwarding industry, RDS has built up a warehousing and distribution network for clients across 20 locations in South Africa. “With many of our clients requiring a more integrated supply chain and logistics service offering, it was a logical conclusion to bring the two companies together.” But, despite the amalgamation, a cost-cutting rationalisation of the employees is not on the books, according to Jenny Retief, services executive of Safcor Panalpina. “There are no retrenchments planned for the joint staff complement of close to 1 500 nationally,” Retief told FTW. “And, while David Leisegang, current MD of RDS, has been appointed MD of Bidvest-owned Island View Storage (IVS), all the other management will keep their present positions. “There is no conflict between the staff skills of the operations, so there is no need to cut the staff,” Retief added. For similar reasons, the physical assets of each organisation will remain the same. “We don’t intend to consolidate any of the premises,” she told FTW.