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Overborder road rates tumble

10 Dec 2003 - by Staff reporter
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Kevin Gesseau . . . Too many hauliers chasing too little cargo Alan Peat THERE ARE no big fortunes to be made on the main overborder road transport routes at the moment, with too many truckers chasing too little cargo, according to Kevin Gesseau of specialist overborder haulier Ikamji Freight. There has been no growth in either the Malawi or Zambia markets, he said, with the same tonnages coming out every year - mostly of tobacco, sugar and tea. “Rates on these routes have been cut as there are too many hauliers and not enough business,” said Gesseau. “The rates have slumped to the same level as they were two years ago.” It is also a situation of a lack of return loads. “But hauliers on these routes are still running, return loads or not, they’re so desperate for business.” Haulage on the Zimbabwe route, strangely enough, is picking up, according to Gesseau. With a bankrupt economy, and complete dearth of foreign exchange, he can’t explain why. And there are no specific products on the growth trail. “Just general cargo,” said Gesseau. It’s also a bit dead to Mozambique at the present time, he added. “It’s not as busy as last year.” The high exchange rate of the rand in the last year is only now making its impact on SA exports - and Mozambique is suffering from this added price pressure in his view. There has also been a change in the type of cargo moving into Mozambique, Gesseau added. “There are a lot more mini-manufacturing companies moving into Mozambique,” he said, “with the demand for materials and components that they generate.” There is also more cargo flowing out of Mozambique all the time, Gesseau added. “It’s continuing growth,” he said. “Slow, but steady.” Gesseau also credits the Maputo Port Development Company’s efforts at enlivening cargo movement through the port. “A great effort,” he said, “and increasing volumes of cargo.” But the problem on this route is that the Mozambique customs at the Ressano Garcia border post have exceeded their capacity limits. “So there’s a bottleneck on the Mozambique side.”

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