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
New trade agreements open opportunity
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