New trade agreements open opportunity

Despite economic

headwinds, there

are significant

opportunities for trade

growth on the continent thanks to

infrastructure upgrades and new

trade agreements,

according to

MSC Logistics

director

Mervyn

Padayachee.

“According

to recent

news

reports, Zimbabwe and South

Africa have signed agreements on

mutual assistance between the two

countries’ customs administrations

– and a Memorandum of

Understanding on trade

cooperation, which will strengthen

economic ties,” he said.

“These agreements impact

positively on the transport

industry,” said Padayachee, but

the fortunes of the continent rely

heavily on the global economy.

“Zambia’s economic policy is

inconsistent, the decline in the

price of copper, removal of state

subsidy on fuel and electricity,

and the slow-down of foreign

direct investment have

weakened the economy.

“And Zambia is not the

only country to face

economic problems –

Fitch ratings have

downgraded

Namibia’s

economic

outlook

from stable to negative.”

Drought was another factor

that had negatively impacted

agriculture and trade in the likes of

Lesotho, Swaziland and Zimbabwe,

he added.

In South Africa,

the economic

downturn has

taken its toll on

transport operators.

“The demand

for cost-effective

transport solutions

has put pressure on

us to keep rates low

and competitive for

our clients.

“However,

with the Automobile Association

reporting that the diesel price

has risen by 23 cents per litre this

month and with other operating

expenses increasing, it is quite

a challenge for the roadfreight

industry.”

On top of that there’s been

increased competition from new

entrants to the market, with many

freight companies also choosing to

diversify their business offerings to

include transportation.

There’s no denying the

challenges. But where there are

challenges there

are opportunities

– and seizing those

opportunities

demands

innovation.

“With this

in mind MSC

Logistics has

implemented new

diesel management

systems to improve

operational

efficiency by shortening

driver turnaround times,” said

Padayachee.

“We have also recently removed

the administrative and logistical

burden of the new Solas VGM

requirements by offering clients a

weighing service at very competitive

rates.”

INSERT & CAPTION

New diesel management

systems improve

operational efficiency

by shortening driver

turnaround times.

– Mervyn Padayachee