Competitive environment promotes under-cutting by smaller operators

Gauteng industries remain extremely competitive following the global economic crisis that affected the entire business community, says Mahaveer Chavda, CEO of Chavda Freight. “Faced with challenges such as the expected increases in the price of fuel as well as the toll fees one can expect higher expenses and lower profits for business in Gauteng.” With the province not escaping the global economic meltdown, the impact is still being felt – and the highly competitive environment has seen the emergence of several new trends. “The increases in costs increase the possibility of liquidation and unemployment in Gauteng. Another challenge that we are faced with is the number of transport companies in Gauteng that are prepared to run at a loss to obtain the business at the end of the day,” he told FTW. According to Chavda, there is much opportunity for development in Gauteng despite the challenges. “The potential for economic growth is huge as Gauteng is the central business hub for South Africa and Africa and lends itself to investment growth.” With freight and transport volumes in the province increasing rapidly the outlook is positive, he said. “It leads to a situation where there are more competitors, but it also means that new industries will develop that will increase the profits and economy of the province.”