Resilient exporters rightsize to sustain strong rand K+N reflects on ‘excellent’ year

RAY SMUTS
AS MUCH as the relentlessly strong rand continues to hammer South African exporters, Kuehne and Nagel’s Kuben Reddi would appear to be impressed by the resilience of some in the face of adversity.
“Everybody is concerned about the currency and ongoing Durban port congestion. But despite a slight drop in our export business we have not lost out to the competition, but rather to other countries and ports like Maputo and Port Elizabeth.
“What exporters have done is simply rightsize their business to avoid any unaccounted for peripheral costs so they can actually sustain R6 or R6,20/dollar,” says Reddi, K+N’s branch manager for Durban and Richards Bay for the past three years.
As K+N celebrates its 50th anniversary, he takes pleasure in admitting the past year has been “excellent”, crediting a strong import and export controller team. He is satisfied that despite tough competition including a number of new players on the block, the company has entrenched itself through superior service.
The current Durban branch import/export split is around 60/40 respectively. K+N also has an office in Richards Bay with clients importing bulk products like steel and coal direct into the port.
“Certainly, we are seeing a significant increase in volumes, especially from China which probably accounts for 40% of all incoming boxes, so we are focusing much of our energies in that particular area.
“We must however also take into account that Africa is starting to open and foresee significant growth for the group as a whole on the continent.” With this growth in mind, K+N has in place a dedicated manager for Africa business development , who can assist with all enquiries into the African region .