Joy Orlek SOUTH AFRICA’S largest clearing and forwarding agents last week convened a “Council of 10” to represent the views of its members to government regarding the Department of Transport BEE charter process. “The charter is of considerable concern, particularly to larger agents, requiring massive stretch in terms of black management representation in the next five to ten years,” says Safcor Panalpina chairman Philip Womersley, prime mover behind the initiative. “Currently black management in our industry runs at 10%, of which 8% is male and 2% female. “The targets being bandied about in the draft charter are around 30-40% black representation over five to ten years, with the precise periods open for debate,” says Womersley. By comparison, the financial services charter draws a far more realistic picture. Current black representation in financial services comprises 10% at senior management level, 17% at middle and 28% at junior level. Their target is set at 20%, 30% and 40% respectively over a 5-year period. To page 20 From page 1 Considerably more achievable in Womersley’s view as it represents a stretch of some 10% versus 20-30% in the freight industry, which begins at a much lower base. “Additionally the managerial skills required in our industry are very industry-specific making recruitment from other industries difficult.” A further issue in the freight forwarding industry is foreign ownership of companies and its implications in terms of black equity. South African companies are expected to achieve 25% black equity over a period not yet specified. For foreign-owned companies there will be zero movement on equity and they are therefore required to make greater concessions elsewhere. This will probably be in the form of Enterprise Development which effectively means investing in a potentially competitive business. Six of the top ten players fall into the foreign-owned category including the likes of DHL Danzas, Exel, Hellmann, Kuehne & Nagel, Schenker and UTi. DNA Micor, Megafreight, Ršhlig Grindrod and Safcor Panalpina are the local members. The charter clearly impacts to a far greater degree on larger agents, which is why the SA Association of Freight Forwarders was unable to get a clear mandate from its members in this instance. Saaff members include many smaller agents. Saaff executive director Ed Little attended last week’s meeting, where the industry majors were well represented with the exception of KN, DNA Micor and Megafreight who had other commitments. Another point for debate is the sector into which the clearing and forwarding industry will fall in terms of the charter. Draft charters have been drawn up for the road, maritime and aviation industries. Another meeting of the “Council of 10” will be convened before the end of the year.
