EGL embarks on regional expansion

Launch of empowerment company imminent IT'S HAPPY birthday EGL Global Logistics South Africa as the company this month celebrates its first year in business. When it opened its doors in Johannesburg, Cape Town and Durban with a staff of 14 last June, managing director Pam Cornish set herself a one year target in which to start showing profits. "We did it in three months, and exceeding expectations has been the pattern so far," she told FTW. In its first year the company has grown its revenues by 20% annualised and the business has been significantly more profitable than anyone expected, says UK-based executive vice president Peter Singleton. "In hindsight it would appear that EGL SA could not have picked a worse year to open a new business. "As a US company quoted on NASDAQ, EGL's core business is very much the US domestic market and hence it is not surprising that revenues were hit hard in 2001, both before and after September 11. "Add to this the South African problems due to the rand fluctuations and it should have been a recipe for disaster. But in truth it's turned out to be anything but disastrous." With a staff of 67, and an office recently opened in Port Elizabeth, EGL is well on its way to achieving many of its set objectives ahead of schedule. One of these is the replication of EGL's domestic model in South Africa. The company is the largest domestic carrier in the US, says Cornish, who was keen to bring this model to South Africa. The delivery of several new vehicles next week will realise this goal. Black empowerment is also high on the agenda and market demands have encouraged an earlier launch of EGL's empowerment arm. Details are still to be released, but the creation of an empowerment company within EGL is imminent. The EGL global network has been one of the factors which has given the company leverage, says Cornish, and expansion of this network within Africa is on the cards. The company will open its own office in Mauritius next month and a group of senior staff members will embark on a tour of southern Africa shortly to tie up agency arrangements. Building up South Africa as a gateway into Africa is part of this growth plan. Fully fledged warehousing operations are currently under construction in Johannesburg and Cape Town. "These will be used as the distribution hubs for South and southern Africa," said Cornish. "EGL has aspirations to open other facilities in Southern and Central Africa over the next twelve months, so watch this space!" said Singleton