New warehouse provides one-stop landside logistics

“Our new 10 000 m² warehouse in Germiston is ideally designed to support our clients and to complement our existing long-haul transportation business,” says Arnold Reddy, director of Reddy Cargo Services. “There is a trend for manufacturers to outsource distribution and to focus on their core business in order to reduce overheads. Along with the warehousing facilities, we have local distribution fleets in Durban and Johannesburg as well as our longhaul fleet which together provide one-stop landside logistics to clients,” says Reddy. “We take on a lot more responsibility for our clients by offering the warehouse facilities but we believe it is worth it. It won’t necessarily lead to more transport offerings but it makes it much easier and more cost-effective for clients and also for us as trucks have less downtime when they are delivering from warehouse to warehouse.” The company is keen to own its own warehouse in Durban, according to Reddy. “We are currently renting from Transnet, but there is simply no property available due to the congestion. And if property becomes available it is so expensive that it becomes uneconomical if you want to develop it and remain competitive in the market.” The warehouse was due to be completed a year ago when economic conditions were better. “But we don’t regret building it,” said Reddy. “The timing may not be optimal but we c an sustain the business with our current volumes. “We are retaining the old 2 000 m² premises in addition to the new warehouse and will mainly use that for hazchems. There are very few people who are hazchem certified so we can get that business without much competition,” Reddy added.