Rate instability likely to continue

Strategic investments are
helping SDV contain costs and
grow in a “very competitive”
market, says Jean-Baptiste Rambaud,
executive director of SDV Zambia.
In 2008, parent company Bolloré
Africa Logistics acquired road carrier
White Horse and transport agent Sael.
Included in the White Horse deal
was a fleet of more than 350 trucks
and 400 trailers.
“The trucks have given us the
capacity to position ourselves as a
logistics leader in the region,” he
says.
While White Horse is
independently managed, SDV
provides strategic direction in order
to ensure that synergies between the
two companies are identified and
developed.
There is constant juggling to
ensure a balance between exports and
imports.
“Four months ago, for example,
there was not a lot of cargo coming
in, but a lot was going out. Just three
months later, there is more coming in
than is being exported by road.”
As a result, there is “a lot of
instability in rates,” which is likely to
continue, he says.
In June this year, Bolloré Africa
Logistics and Höegh Autoliners
entered into a partnership agreement
for sub-Saharan Africa excluding
South Africa.
Bolloré Africa Logistics will act as
the shipping agent for ro-ro operator
Höegh Autoliners.
Rambaud says the strength of the
Bolloré network, which employs
around 15 000 people across Africa,
is what is needed by the international
investors in Zambia and the Congo.
They want to work with suppliers
who have the financial strength,
resources and network of SDV.
“However, in this competitive
market, you get business on service
and rates,” he says.
The Bolloré group does not
“hesitate to invest” in order to
provide the levels of service needed,
while reducing costs, he says.
SDV also investigates new routes
on an ongoing basis. “We have
moved a lot of freight to Dar es
Salaam and Beira because of delays
in Durban.”