Courier services outperform express road

There is no denying the importance of the courier and express service industry for the efficiency and growth of the South African economy, says Shane Kinnear, general manager of WorldNet Express. “Almost all businesses use courier and express services at some point,” he says. “South Africa’s geographical position as the hub of Africa means that fast and effective delivery services are essential for the country as well as foreign businesses involved in international trade.” According to Statistics South Africa, despite the recent global economic slowdown, the courier and express industry has recorded a market turnover of R2 519 million per annum with an approximate growth rate of 3%. “The service generating the most income in the courier industry was overnight delivery,” says Kinnear. “We believe that in the short- to medium-term the courier and express industry is likely to grow steadily.” WorldNet Express, a division of WorldNet Logistics, is about offering an extensive range of seamless high quality express courier services, says Kinnear. “The courier and express industry can be divided into two main market sectors: courier services and road freight,” he said. “In recent years the distinction between the two sub sectors has become increasingly blurred with some courier and express companies, especially the larger operators, now offering both courier and express road freight services. Until recently both sectors performed strongly, but the courier services are now outperforming the express road freight sector in terms of turnover growth.” Kinnear says that while rising demand for road and air courier services to developing economies has also boosted the South African sector in recent years, the increased security measures for road and airfreight due to high levels of criminal activity in the country have increased costs for the sector, while the fluctuation of the fuel price continues to be a challenge. Furthermore clients require faster and more reliable express services from a service provider they can trust. WorldNet Express is well positioned to provide the full range of courier, express and road freight services to its clients,” says Kinnear. “We achieve extremely high levels of on-time deliveries facilitated by speedy customs clearing which is often a challenge in this industry.” For the future WorldNet Express will focus on its core competencies and increase its investment in infrastructure, technology and security, he said.