Pioneer group recapitalising to cater for growing business

Zimbabwe’s listed Pioneer Corporation Africa is investing heavily in new vehicles and facilities to cater for the growing volumes of freight and people it is carrying. The investments will help improve efficiencies and moderate increases in rates. Pioneer has been able to offer competitive rates through the triangulation of freight services. Vehicles bring highvalue mineral ore from the Zimbabwean mines to South Africa for processing. Travelling in escorted, highsecurity convoys, the distinctive trucks “paint Beitbridge yellow when we get to the border,” says group chief executive officer Albert Ushe. Mainly fast-moving consumer goods are carried on the return leg, which is via Johannesburg. By balancing the loads, Pioneer has been able to keep rates competitive, and has also “turned around” its business after the recession, he says. Reported results for the first six months of 2011 saw an increase of 17% in revenue, and 168% in profit. Profitability has been driven largely by “re-modelling and re-structuring strategies” implemented in 2010 to streamline business operations, reduce overheads and achieve operational efficiencies. Investment in new vehicles has paid off because the owners of the high-value cargo do not want to entrust it to trucks that could break down along the way. “Plus, they know that if there is a problem, we will have another truck there within hours,” says Ushe. By the end of the year, Pioneer transport division will have added over 80 new truck tractors to its fleet. In addition, a new information technology system and freight software will be launched to enable customers to track and trace their shipments at all times. Further investment includes the purchase of Unifreight Limited and the Swift brand in January 2011. Freight consolidator Swift has a network of depots throughout Zimbabwe and operates its own fleet of trucks. It has three brands – Swift Express for air and road courier services, Swift Freight and Swift Full loads. Included in the Unifreight purchase is Contract Logistics, which offers fleet management and hire and passenger services. Fleet management and hire services include providing the administrative and operational functions of fleet management. Passenger services provided by Contract Logistics focus on contract transport for companies, such as mines. With the new acquisitions bedded down and the recapitalisation of its fleet under way, he is confident that the Pioneer group is well positioned to serve the growing transport needs of Zimbabwe and its neighbours as the regional economy continues to grow. “Transport is key to that growth,” he says.