Diversification is key to limiting risk

Having a footprint across southern Africa is part and parcel of the growth strategy of Transport Holdings, but it’s also necessary for sustainability. According to Rudi Nagel, business development manager of the Botswana-headquartered company, it also allows the company to diversify its offerings and be far more versatile. Botswana is well positioned for a regional logistics hub. “There are new opportunities in the Botswana mining sector, and as always we will remain very close to our loyal customers who have looked after us for many years. Coal sounds like a wonderful opportunity, but there are inherent challenges in exporting the right quality at the right price with larger deposits of better quality found in other parts closer to ports than Botswana. We’d have to watch that space carefully, and if one then brings the current slow economic situation into the equation it becomes increasingly important to extend one’s footprint and broaden one’s horizons.” he told FTW during a recent visit to Gaborone. “Botswana is heavily dependent on mining that by its very nature is volatile – which is why it’s even more important to diversify and limit one’s risk by operating across different countries and different commodities. That helps ensure longevity.” He said the business had worked hard to achieve this – diversifying into several new commodities and countries in the past few years – and efforts to continue to work further afield were ongoing. “It does not really matter whether it is steel in Zambia, coal in Mozambique or general cargo in Botswana itself, but rather the ability to be able to operate across commodities and borders.” Nagel said the company was also continually looking for opportunities to invest in sustainable business opportunities. “It is important to have the resources in place to cater for what the market requires at a moment’s notice.” He said volumes into and out of Botswana had been fairly stagnant in recent months, encouraging the company to look for opportunities elsewhere. “Volumes in Mozambique – where we are growing our footprint –have been consistent, while we have seen an increase in transit cargo to Zambia.” He said exploration in the mining industry was positive for future growth. CAPTION Transport Holdings’ fleet … operating across different countries and different commodities.