New look SACD moves into logistics

Joy Orlek THERE'S A quiet revolution in progress at SA Container Depots. After 25 years as a licensed depot operator, the tables have turned as the company broadens its scope and moves into containerised logistics. It was a question of 'adapt or die' as changing industry trends forced a change of focus for the company which, for the first 12 years of its existence, was the only one in South Africa with a licence to handle LCL (less than container load), groupage and overstay containers. 'Strategic facilities offer unique benefits' "The fundamental trigger was the fact that our big customers like Maersk/ Sealand and P&O Nedlloyd had opened their own depots," managing director Graham Peinke told FTW. "Last year we were looking at losing millions of rands in turnover unless we went out and found new customers." Peinke, sums up the current seafreight climate simply: "Too many shipping lines competing for too little cargo means very narrow margins and therefore no chance of a rates increase. Add to that the continuing trend for lines to operate their own depots, and SACD was facing a gloomy future." While everyone is currently jumping on the supply chain management bandwagon, business development director Geoff Popple believes that SACD is in a unique position in terms of strategically located facilities served by a road and rail network spanning the whole of South Africa. "We're in all the nodal areas and can guarantee not missing the stack dates." The change of direction did however ruffle many feathers, not least those of the clearing and forwarding industry. But here SACD has sent out a clear message. "We are not encroaching on their territory but rather partnering them to provide the customer with a superior service," says Popple. "We do lots of business with the clearing and forwarding industry, in a partnership role. We have a lot of muscle as part of the Bidfreight Group, under whose wing Safcor Panalpina incorporating Renfreight falls, but ultimately the customer dictates the company with which he wants to deal." Supporting the new-look SACD is a new corporate image and a new sales focus. "We've trebled the size of the sales team and a dynamic young sales force has joined the ranks," says Peinke who is enthusiastic about the company's early wins.