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.”