Import demand in SADC on upward trend

Demand for road freight
transport of imported
components, FMCG and
durable
consumer goods
has picked up
in some parts
of the SADC
region in recent
months.
Dhiren
Krishna, CEO
of Durbanbased
GSF
Trucking, which
has a fleet of
46 trucks and
a 12000sqm
depot in
Durban, just
12km from the
port, said he was confident
that the recent upswing
would continue into 2017. The
company transports general
cargo, ranging from FMCGs
to machine components,
durable consumer goods
and hazardous cargo, across
Durban, Johannesburg,
Zambia and to other parts of
the SADC region.
Krishna said there were
broad signs of increased
demand for machine
components and durable
consumer goods such as home
appliances,
while demand
for SA
agricultural
exports,
including beef
and citrus to the
EU and steel for
the construction
sector in South
East Asia,
remained
steady. GSF
trucking
provides
services to
major food
retailers and
appliance manufacturers
and moves cargo across the
continent for CMA CGM.
“Business was pretty
quiet at the start of this year
but volumes have started
to increase in the last three
months and we have also
acquired a lot of new clients.
We are looking to grow our
market share further,” he said.
Krishna said his hands-on
approach to the business,
which offers a one-stop
shop, including door-to-door
delivery, customs clearance
and insurance, was what
differentiated the company
from competitors.
“We sit directly with our
clients and we understand
their needs. A lot of the times
clients call for favours when
their shipment is running at a
loss and they want us to come
to the party to offer them
preferential rates. It’s about
value for money coupled with
relationships.”
Krishna said the company
offered major clients free
access to its depot facilities
which were not otherwise
rented out for storage.
He added that a major
challenge in the local transport
sector was the number of
new start-up operations
set up by inexperienced
business operators, who
bought trucks and handed
over the running of their
business to a broker who
competed on price without
considering customer service
and industry standards. He
said these businesses cut
fees by as much as 10-15% of
established truckers’ prices
but eventually shut down
after a few years.
“Our industry is not
regulated and some
competitors want to take
on work at any cost, even at
the cost of losing their own
businesses and running at a
loss,” he said.
“There is a need to set up a
business forum for truckers
to engage on issues affecting
the industry,” he added.
INSERT
A major challenge in
the local transport
sector is the number
of new start-up
operations set up
by inexperienced
business operators.
– Dhiren Krishna