Dedicated auto facilities redeployed to other sectors

The impact on the SA motor
vehicle industry from the
global credit crunch has
spiralled down into the
road transport and storage
sectors of the freight
industry, according to
Lawrie Bateman, director of
MSC Logistics.
“Our company, being a
wholly-owned subsidiary of
the Mediterranean Shipping
Company (MSC), offers a full
panoply of freight landside
operations and storage
facilities,” he told FTW.
“Due to this, we are very
involved with the automotive
industry – as the MSC depots
were strategically placed to
service this industry at the
major focal points of Rosslyn,
Pretoria, Port Elizabeth
and Durban.”
This has seen MSC
Logistics committed to
providing all the necessary
equipment and transport
to serve the stringent time
requirements of the
auto industry.
“While the local
SA vehicle production
component is down 36% to
date this year,” said Bateman,
“another major concern for us
is the drop in exports – down
27.5%.
But, given the global
auto industry crisis, this is to
be expected.
Said Bateman: “The major
motor vehicle centres –
Europe, the US and Japan
– are down 35% in their own
internal markets.”
“Traditionally, being part
of MSC shipping line in SA,”
Bateman told FTW, “when
there has been a downturn in
the industry our contingency
planning has allowed us
to utilise our facilities and
equipment for other new
and existing business within
the group, and the same will
apply now.”
A major concern, he
added, is MSC Logistics’
established, long-term black
economic empowerment
(BEE) commitment.
“To promote this,” said
Bateman, “we have ownerdrivers
operating out of our
facilities on the basis of onetruck,
one-owner.
“The revenues of these
owner-drivers have been
severely affected by the
downturn. While we are
doing our utmost to sustain
our support for these
fledgling businesses, there is
only so much that can
be done.”