NVOCC diversifies into imports

Growth and diversification are the central themes as groupage operators compete for a bigger slice of the action. Anna Cox takes a closer look. Gaining strength on Durban - Mombasa route Ray Smuts EXPORTS MAY be easier to control, but even so NVOCC Freight Services is breaking new ground this year by aiming for a slice of the import pie. “Exports are still where we make our money, a segment we can control. The moment you start looking at imports everything tends to be controlled at the port of load,” says Lynn Quinn, sole director of NVOCC Freight Services following the departure last year of co-director and founder Pete Sands. “You are able to influence imports but you cannot control and if you wish to build up a business you have to be in control,” asserts Quinn, who estimates that the company could well diversify to the extent that 20% of its business is derived from imports come year end. Only 17 months old, business at NVOCC Freight Services, with offices in Cape Town, Durban and Johannesburg, is up by around 50% from a zero base. The Western Cape branch, which handles between 13 and 15 containers a month, has experienced similar growth. On the current state of the groupage business in Cape Town - there are only some six players - she says it is reasonably healthy. “It is very competitive as the margins keep shrinking and interestingly enough, while the rand is doing its real number, because we quote dollars it’s actually good for us. But the moment the rand improves one’s margins shrink so business cannot be based on the rate of exchange but on turnover and profit.” The past year has seen NVOCC Freight Services become dominant on the Durban-Mombasa route. From a Cape Town perspective it has made inroads into Europe and the Far East where port routing has changed. Singapore is out and Port Klang in Malaysia in. “We find the port itself much more efficient in that it does not suffer the same congestion or have to contend with the same sheer volumes as does Singapore.” Even though she does not deal directly with port authorities Quinn says NVOCC Freight Services is certainly influenced by what goes on within the ports and she believes there has been “a slight improvement” in container terminal productivity.