Export focus pays off for Katlego

A DECISION taken two years ago to switch its focus from imports to exports and to target expansion into Africa has paid off for Katlego Global Logistics. “We trebled our turnover last year and so far this year we’ve already done 80% of our 2006 turnover,” MD Moses Maboi told FTW. “70% of our business currently comprises exports – it’s far more lucrative without the risk that comes with imports.” Africa, along with UAE, Iraq, Afganistan and the US, rank among its biggest markets. Recognising the crucial role played by an effective global network, Katlego recently joined the Freight Network Corporation, an independent grouping of freight agents worldwide of which Katlego is the South African representative. “It’s an association that has already brought in new business contracts through our associate members around the globe,” said Maboi. Katlego’s strongest African markets include Angola, the Democratic Republic of Congo, Kenya, Tanzania, Mozambique, Botswana and Zambia. The company is also heavily involved in transport into Sudan for the United Nations. For operators in the region, Maboi believes port congestion and payment issues are the major challenges, with congestion often forcing shippers to use airfreight as a standby alternative. “It’s very costly but sometimes we have no other option.” Katlego has offices in Durban and Cape Town with plans to open a Port Elizabeth branch in January next year. “We will be targeting automotive business which is why a PE office makes sense.” Next on the agenda for the company, which celebrates its tenth anniversary next year, will be to list on the Johannesburg Stock Exchange and Maboi is confident that this will happen in the next two years.