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.