Logistics major targets oil and gas sector

RAY SMUTS THERE WAS a time when virtually every single commodity required by the oil and gas industry in West Africa – from toothbrushes to T-bone steaks – was Jumboed in from the United States. But that has all changed and South Africa has assumed the role of a major supply source, and a market Safcor Panalpina is vigorously pursuing. So much so that it came on strongly as an exhibitor at the Oil Africa 2006 Exhibition and Conference at Cape Town’s International Conference Centre from March 22 to 24. It was there that the company, a subsidiary of the Bidvest group, showcased its service offering and expertise in supply chain services for the oil and gas industry. Brad Alison, GM operations for the Western Cape region, has identified the oil and gas industry as one of the “significant opportunities” being targeted by Safcor Panalpina in the local market. According to newly-appointed regional director, Mervyn Cookson, Safcor Panalpina has in the past offered essentially two aspects of the supply chain. “These are forwarding and clearing through customs. But with customers requiring more of a one-stop service, the other legs of the supply chain, such as IT integration, supply chain management and consultancy services, logistics and financial services are being offered our clients on an increasing basis.” Adding that Safcor Panalpina is constantly looking to improve its supply chain to customers, Cookson says the company’s percentage of local market share for both sea and airfreight has remained relatively constant in a scenario affected by lower volumes due to a stronger currency. Total volumes moved in the Western Cape during the 2005 calendar year amounted to 3.8 million tons. Says Cookson: “The prospects look good for 2006 and 2007 and the Safcor Panalpina Western Cape region will be budgeting for revenue growth significantly above the inflation rate as the service offering to existing customers is expanded, new customers are acquired and initiatives for entering new markets implemented.” An effective way of keeping pace with the competition is a happy, well-motivated staff complement, says Cookson. “Safcor Panalpina enjoys the distinction of one of South Africa’s highest industry spend ratios for training and development,” he added.