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.”