‘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.”