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Diversification is key to limiting risk

12 Nov 2014 - by Liesl Venter
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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.

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