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Infrastructure investment a top priority

17 Oct 2024 - by -
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Transcom Sharaf is making significant strides in diversifying its operations and expanding its footprint across southern Africa. According to CEO Guy Harvey, the company has strategically moved into various sectors to reduce reliance on seasonal agricultural commodities, marking a new phase in its growth."By diversifying into minerals, project cargo and reefer products, we've managed to smooth out the seasonality that often impacts agricultural commodities," said Harvey, indicating that it has been a positive move for the business which has already seen an increase in volumes. “We have expanded from 15 to 50 reefer plug points in just six months, which ref lects growing demand.”He said it was not just imports into Zimbabwe, Zambia and the Democratic Republic of the Congo (DRC) that were growing, but commodities such as citrus exports out of Zimbabwe were also on a positive trajectory. According to Harvey, investment in new infrastructure continues to be a priority. Construction is set to begin in September on a bulk handling terminal with a capacity of 30 000 tons, signalling a strong push into the agricultural sector. Additionally, Transcom Sharaf has added a 7 500-square-metre warehouse to accommodate increased demand. "We need more space due to product diversification, especially for items that can’t be stored together," said Mohammad Sharif, the company’s general manager.The expansion drive includes not only warehousing but also its container terminal operations. The company is expanding its domestic and transit terminals, with 5 000 square metres dedicated to transit operations and 7 500 for domestic use.Harvey told Freight Newsthat targeting more mineral commodities was a strategic focus in the company’s growth strategy, with large volumes of manganese from Zambia, as well as chrome, lithium and vermiculite from Zimbabwe being moved. "We see a lot of potential in the mining sector and our role in the corridor is set to increase," he said. He said agriculture would continue to be a cornerstone of the business. The reefer business was expected to grow significantly. "While we don’t have direct services to Europe, we’re seeing strong demand from the Middle East and China, and we are working closely with farmers and horticultural associations to develop these markets."Transcom Sharaf has also expanded its presence in Zimbabwe, adding more staff to its operations and sales teams. The company expects continued growth in and out of Zimbabwe, particularly as producers look for alternatives to South African routes.He said they were positive about the overall outlook for Mozambique. "The country is resilient and we are f lexible. We wouldn’t be investing in these projects if we didn’t believe in the long-term potential of Mozambique," Harvey concluded. LV

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