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P&O Nedlloyd takes on landside partner - Freight & Trading Weekly - 5 March 2000 edition -
- Freight & Trading Weekly
5 March 2000 edition
P&O Nedlloyd takes on landside partner
Joy OrlekP&O NEDLLOYD has realised its long-held objective of closer involvement in its landside movement of cargo with the acquisition of a 34,3% shareholding in South African independent cargo logistics company Confreight Cargo Management Centre (CCMC).
CCMC is the holding company of inland transport operator Cross Country Containers and Cargo Management Centre.
"This new partnership is in line with a global industry trend to establish a horizontal integration of value-added services to customers world-wide," P&O Nedlloyd managing director Nigel Pusey told FTW.
"The association with CCMC will ultimately lead to a more cost-effective and streamlined approach to the supply-chain management of the whole cargo movement process," he said.
CCMC managing director Richard Foulds believes the alliance with P&ON will give CCMC additional strength in the Southern African transport and logistics industry. "So far we have grown our business solely through a process of internal growth. We realised that in order to expand even further we had to align ourselves with an established international partner," Foulds said.
"We needed to be associated with an operator who was serious about Southern Africa and our solid working relationship with P&ON over the past few years drove our decision to form this partnership," he said.
The benefits of the union for both companies are considerable, according to both Pusey and Foulds.
An investigation will be undertaken into the control of terminal offices and elimination of unnecessary duplication. Computer systems will ultimately be aligned and future joint activities could involve the strengthening of infrastructure in Southern Africa and involvement in possible privatisation moves by Spoornet. Foulds will continue as managing director and there will be no management changes in either of the subsidiaries.
Certain teams will be designated to look after P&ON business, but existing clients will continue to be serviced without change.
CCC was established 11 years ago by Richard Foulds and the late Grant Wells.
It is represented nationally in Durban, Cape Town, Johannesburg, Pretoria, East Rand and West Rand. It has own offices in Zimbabwe and Botswana and is represented through agents in Lesotho and Swaziland.
CMC specialises in empty container storage and other terminal-related activities countrywide. Headquartered in Durban, its has facilities in Johannesburg and the East Rand.
P&ON purchased the 34,3% shareholding previously held by the GW Wells Trust. Viamax, a wholly owned Transnet subsidiary, holds a further 24,1% share. The balance is held by the R Foulds Family Trust (34,3%) and the CCMC Share Trust (7%).
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