Logistics company achieves top empowerment ranking

Transport and logistics company Cargo Carriers was recently ranked third in the transport division of the 2009 Top Empowerment Companies (TEC) survey, achieving the highest Preferential Procurement score (17.83%) of the top five companies listed in the division. A significant part of Cargo Carriers’ empowerment programme is its owner-driver scheme that was launched in 2003 in business areas identified as receptive to the concept, says owner-driver manager John Sprenger. “Existing employees who had the correct attributes were actively encouraged and supported by Cargo Carriers to become entrepreneurs through owning their own vehicles and driving on behalf of the company,” Sprenger told FTW. “The aim of the owner driver programme is to empower drivers who would otherwise never have an opportunity to become successful entrepreneurs – and an important aspect is the training and the business experience they gain, which they can pass on to their families and local communities.” The success of the scheme however requires a stringent selection and training process, says Sprenger, which results in the owner-drivers entering a service agreement with Cargo Carriers to become independent contractors to the company, as opposed to employees. Training covers a broad spectrum of skills, from driving and communications to finance and life skills. “The owner-drivers are assisted with their finances and unique packages are developed and monitored by a third party administration company to ensure they are in order, statutory returns are submitted, high cost areas are controlled, and retirement funding and medical aid policies are in place.” The four initial owner-drivers selected almost six years ago proved the success of the programme when their service agreement was renewed for a further three years in August 2008, says Sprenger. Since the programme was initiated in 2003 the company has trained 20 owner-drivers, with plans under way to expand this programme. “Real empowerment is a corporate imperative for Cargo Carriers. The owner-driver scheme fosters true participation in the building of South Africa and the economy,” said Sprenger. “Given South Africa’s history, empowerment at a grassroots level such as that which is achieved by the owner-driver scheme is an imperative for Cargo Carriers in positively contributing to those individuals and societies that we engage with every day.”