Price war erupts in trucking support sector

Leonard Neill A PRICE WAR has erupted in the trucking support sector of the South African airfreight industry with new entrants to the market and existing competitors battling for market share. “It has attracted newcomers and encouraged some of our competitors to cut prices. But we believe that these are short term efforts at survival, and not a professional service which is sustainable and consistent,” says Craig Crozet, manager cargo services at Cargo Service Center (CSC). “Our pricing structure is based on growth, expansion, upgrading infrastructure and flexibility,” he says, emphasising that quality service and reliability remain the crucial factors to combat any price restructuring by competitors. One factor, however, that may affect the performance of all operators is a warning from Customs in Durban of random checks, including stops, which may have an effect on truckers’ ability to meet time-sensitive deadlines. At the same time Durban Customs is planning to be fully EDI compliant and operational by March 17. Plans to renovate CSC’s Durban facility are underway, and Ricky Naidoo has been appointed assistant to Tony Goncalves who will be responsible for CSC’s trucking network countrywide. Major developments have also taken place in CSC’s Port Elizabeth facility, where a new 2.5ton forklift is now in operation. The security system has been upgraded and is now linked to a 24 hour surveillance team, while Antoinette Esterhuizen has been appointed branch manager.