Return loads make road a viable option

Road transport works well for Botswana because of the availability of return load capacity, says Anthony Lee, managing director of Transport Holdings Limited. “Using the road network makes sense as it is fast and efficient. Our road infrastructure is also fairly good and because we are able to exploit return load capacity it also makes business sense to use road.” While the road and rail debate has often reared its head, not just in South Africa but also Africa, most roleplayers agree that it is not about one or the other, but rather the two modes of transport working together. “In principle it is true that some commodities are better suited to rail than road especially in terms of bulk commodities,” says Lee. “But practically it does not always work, especially when the time value of money is considered. Add the return on investment requirement to the mix and it becomes a very grey area.” In the meantime countries like Botswana remain dependent on the road network. “With no manufacturing industry in Botswana everything is imported and most of it is brought in by road.” According to Lee the past year has not been easy for business with the global recession affecting volumes and price. “We were not as badly affected as what we thought, but we saw a drop of at least 40% in the volumes in the mining industry. Other business remained stable. I do believe we have hit the bottom and that we are now moving forward.” For Transport Holdings this means implementing a brand new IT system. “This system will allow for fully integrated labelling, track and trace as well as warehouse management – all crucial aspects of our business.” He says it will also allow the company to be more aggressive in its pursuit of new customers and markets in the coming months as the world moves out of recessionary times.