‘High logistics costs must be addressed’

With major growth being experienced in the sub- Saharan and North African markets, it is essential that the high cost of cargo delivery be addressed on the continent. The costs involved in delivering freight across the continent remain unreasonably high, posing a major challenge to the players in the market, says Alwyn Nel of Kingfisher Freight Services. “Toll fees, duties and taxes are just some of the costs that have to be taken into consideration,” says Nel. “In addition infrastructure that is falling apart adds to the costs resulting in high maintenance fees and delays at borders, airports and seaports.” The African market, however, remains extremely important despite this. “If you consider the amount of capital investment taking place from the global market leaders, the proximity of South Africa, the potential for business development, as well as the inability of many African countries to produce goods due to the collapse of infrastructure – it is a market ready for development and product purchases.” He believes that opportunities abound for those willing to take the chance. “Anyone with entrepreneurial drive and flair can succeed in Africa by managing their liability and exposure and making sure that contracts are well tied up and secure.” The focus at Kingfisher Freight Services has been on expansion – and this includees vehicle availability and new warehousing facilities. “We have gone through a major restructuring process after the management buy-out of the shares of other partners,” says Nel. “Emphasis has now been placed on further market share, business development and service delivery in all aspects of the company’s portfolio, while expanding our footprint in Africa significantly.”