Over-border consolidations are
on an upward trajectory for
logistics operator Crossroads
Distribution which specialises
in the Namibian and Zambian
markets.
“The Copperbelt has been
particularly
buoyant,” says
managing
director Arend
du Preez,
“with slower,
but steady
growth into
Namibia.”
And he
expects more
of the same
for the year
ahead, which
is in line with
GDP growth forecasts.
A World Bank spokesman
predicts economic growth in
Zambia will reach 4% in 2017
and 4.2% in 2018, based on an
increase in copper prices and
improved power supply.
Namibia’s outlook is also
upbeat. According to African
Economic Outlook, while GDP
growth slowed from 5.3% in
2015 to an estimated 1.3% in
2016, it is expected to rebound
to 2.5%. This on the back of
the recovery of the agriculture
sector and the strengthening of
production and
exports from
new mines.
Crossroads
operates a
mix of its own
trucks and
subcontractors
– and according
to Du Preez
there is sufficient
capacity to cope
with the
volumes.
Border
issues are also minimal,
says Du Preez. “As
long as you have your
documentation in
order, there are seldom
any delays.”
As demand grows,
there’s an equal uptick
in competition on the
routes, but Du Preez believes
this is a positive development.
“Increased competition will
help to drive down logistics
costs which is good for the
region.”
Looking to the future,
Crossroads is not planning to
expand into new markets in the
short term. “We prefer to focus
on strengthening our foothold
in these niche
markets.”
As long as you have
your documentation
in order, there
are seldom border
delays.
– Arend du Preez
