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Investment in warehousing supports growth

02 Sep 2022 - by -
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Increasing capacity in Zambia is high on the agenda for Rangel Logistics Solutions, which is seeing growing volumes in the southern African country.According to Tiago Pocinho, country manager for South Africa and Zambia, the company has invested heavily in its facilities in Zambia, and this includes a new 2500-square-metre warehouse in Lusaka.“It is fitted with state-of-the-art equipment and cross-docking facilities, is food grade, and plans are already under way for it to be bonded,” he told Freight News. “We are seeing real growth on several southern African corridors to and from Zambia. Our investment into the country is proving to be very positive, and we are committed to creating the necessary opportunities to grow our business.”Pocinho said the company had been growing its footprint strategically in southern Africa, having first established an office in South Africa and then Zambia. More offices are on the cards. “We are seeing considerable growth on the Zambia-DRC corridor, as well as between Zambia and Mozambique and Zambia and Tanzania.”He said establishing its f leet in Zambia could also not be ruled out, especially considering the strategy of growing the Zambia-DRC rout e. “ We believe there is potential in Zambia, not only in the mining sector but also in fast-moving consumer goods (FMCG) and general commodities, in which we specialise.”He said LCL volumes, in particular, were showing good growth. “We see potential and opportunity in the Zambian market. The new government has brought positivity and investors are once again looking at Zambia.”With more investments comes more development of infrastructure. “From a logistics point of view we foresee growth in the market,” said Pocinho. “The currency is very strong at the moment and the demand for FMCG cargo is on the rise. We have a strong footprint in this market and are growing our mining footprint. With the commodity prices increasing and world demand growing, Zambia is well-placed to become a major commodity exporter.”Currently the second-largest copper exporter in the world, Zambia is also home to a wide range of other minerals which are in high demand. “All of these developments bode well for logistics companies like Rangel,” says Pocinho. “Of course, the market is not without challenges. It is not an easy operating environment for foreign transporters and freight rates at present are high due to the tax regime of the country, but with the new government there is a lot of change happening for the better and it is far easier to do business in Zambia .”He said Rangel also expected the country to continue to work on improving its efficiencies, particularly at the border posts, to minimise the constraints experienced at some of the borders. “In this way Rangel will continue its strategy of opening offices at the main borders to better facilitate the whole transport process and to minimise delays and better serve our clients.”Pocinho added that plans were also in place for the opening of Rangel offices in Tanzania and Namibia later this year.

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