‘Rates have been one of the biggest casualties’

A recession can create just as much opportunity as it can challenges, says CronTrans group CEO Henu Cronje. With innovation and effectiveness at play, along with a positive attitude, he says, companies such as CronTrans and others do not have to be wiped off the map just because of a global downturn. Having been involved in transport and logistics for the past 19 years, the company offers a diverse range of services from transportation and materials handling to logistics management. “With the recession northbound volumes dropped dramatically from February until recently,” says Cronje. “But it does seem to be slowly picking up. One of my biggest concerns has however been the effect on rates. We have continuously had to revise rates just to keep business as competitors were dropping rates as a way of staying busy. The pressure on the mining industry to cut costs also played a role. At this stage I don’t know when, if ever, the rates will be back to ‘normal’.” Cronje says while volumes and profit have been low during February to May this year, there has been a stabilisation during June and the figures are slowly climbing. “During the past few months we have actually acquired various new customers and expanded our current customer base.”