Good volumes moving to Tete and Malawi

The construction of a Tete-Nacala rail link has translated into good volumes for Falcongate Logistics, and managing director John Wheadon is expecting more of the same in the year ahead. “The year started off very well for us – and we’re doing a lot of consolidations up to Tete and Malawi which will continue for the next few years.” Adding further impetus to good growth numbers is its express delivery service, which offers a range of small vehicles for urgent shipments from 1-8MTs. “Significant volumes for the mining sector are moving to Tete and Blantyre,” said Wheadon. “We’re doing two consolidations a week and an express service every three days.” While volumes are growing and the outlook is positive, transport in Africa is not without its challenges. “A new RIT requirement through Mozambique is a case in point,” said Wheadon, “resulting in over 400 trucks being parked recently. “They call it the single window system, but it’s causing a nightmare. Agents were supposed to register but none of them did which meant for six days trucks didn’t move.” It’s still very problematic, he said, and underscores the major issue facing transporters in Africa – a lack of harmonisation. “In the case of the Mozambique RIT, it’s a revenue-generator. They were the only country not charging it, but the lack of training and their antiquated computer system aren’t able to handle it which resulted in implementation problems which ultimately impacted the transporters and their clients. “We’re all part of SADC, which was formed to harmonise trade between the territories. But that’s non-existent. Every country is looking out for itself and what money it can make from the freight industry.” Falcongate’s consolidation service is mainly focused on Malawi and Zimbabwe, which is beginning to show signs of good growth, he said. And with volumes on the express service exceeding expectation, the company is looking at buying more bakkies to serve this growing market. INSERT & CAPTION Every country is looking out for itself and what money it can make from the freight industry. – John Wheadon CAPTION The waiting game ... good growth prospects into Africa but not without challenges.