Companies join forces to create ‘substantial’ over-border haulier

More and more small
companies are joining forces
in an effort to grow their
market share and remain
viable in the current economic
conditions, says Donovan
Schipper, operations director
of Truckhire SA.
Schipper and Pat Ferrari,
who owned Shangani
Transport, last year joined
forces with Kevin Lees
and partner Rory Bennett,
directors of Truckhire,
to form Truckhire SA, a
South African branch of the
Botswana-based haulier.
“It makes economic
sense for small companies
to pool their resources and
knowledge. Ultimately the
client benefits,” said Schipper.
According to Ferrari,
the merger went smoothly
with little disturbance to the
service offered to individual
clients who are now all on
board with Truckhire SA,
while all benefit from the
holding company, Truckhire.
“The entire process has
been beneficial to our clients
who welcomed the opening
of the South African office of
Truckhire SA in November
last year,” said Ferrari.
The company offers a
consolidation service into
Botswana and transport across
Africa, also specialising
in exporting, importing,
seafreight and airfreight.
“Small companies don’t
stand a chance. They
cannot compete with the big
operators, but then again
they are continually facing
the onslaught of the fly-bynights,”
said Schipper. “By
merging we have grown our
business. That would not have
happened if we had remained
independent.”
Merging of small
businesses within the
transport and logistics
industry is a worldwide
trend, according to
PricewaterhouseCoopers
(PWC).
In a recent study the
company found that 27%
of transport and logistics
companies globally completed
a merger or an acquisition in
the preceding 12 months.
With 2010 having been a
year of recovery following the
economic meltdown, deals
and mergers have become
a common method of survival.
According to PwC, at least
27% of CEOs surveyed said
that mergers and acquisitions
were key to growing their
businesses in the coming
months. At least 40% had
either completed or were in
the midst of either merging
or acquiring in the coming
12 months.
According to Ferrari, the
combined experience of
herself, Lees and Schipper
measures up to that of the big
players in the industry.