Emery link facilitates
door-to-door service
THE JSE-listed Spectrum Shipping has just acquired the business of CSS Logistics for R6-million paid from a share issue.
The acquisition extends Spectrum Shipping's reach to the Western Cape
completing the golden logistics triangle between inland port Johannesburg, Durban and Cape Town.
"This is important to the accelerated expansion of Spectrum Shipping," said c.e.o. Tadek Tomaszewski, "since it will add an export-orientated client base to the company's existing portfolio of mainly importers.
"The company will enhance our leverage in freight negotiations, while the enlarged customer base allows for cross-marketing forwarding opportunities."
CSS Logistics services 45% of the SA perishable fruit export market and has a client list that includes Capespan, SA Peanut, KWV and SA Dried Fruit, as well as various importers. Annual revenue levels peaked at R350-m for 2001.
Historically, it has been the in-house clearing and forwarding arm of Capespan (previously Outspan) which exports approximately 50-m cartons of fruit from SA to 66 countries over six continents.
In the agreement, Capespan has ceded its former CSS business to the new company.
CSS Logistics is also the SA agent for Emery, a company with approximately 500 agencies worldwide.
"The Emery link provides Spectrum Shipping with
an opportunity to offer
a door-to-door service
for our clients," said Tomaszewski. These include a number of companies in the clothing and footwear; textile; paper and timber; and automotive manufacturing sectors.
It is to consolidate certain Durban-based offices and warehouses with the 2 000-square metre CSS warehouse in Durban allowing the company to increase its warehousing business, Tomaszewski added.
CSS will retain its current management structure, he told FTW, and is to be re-branded as Spectrum Shipping within the next two months.
