Unsustainable rates will compromise safety and insurance cover

In the local transport sector, competitive pricing and quality service delivery is the essence of survival, according to Mervyn Padayachee, GM of MSC Depots and MSC Logistics in the Cape. “Over-zealous transport operators are dropping transport rates to extremely low operating margins,” he told FTW. “And I do not believe that they will sustain the current and future economic status quo.” Padayachee is also adamant that cheap transport rates being offered in such a fiercely competitive environment will result in vehicle maintenance and the ability to provide adequate, comprehensive “goods in transit” insurance cover, being compromised – all to reduce operating costs. “MSC Logistics has taken a logical decision in affording competitive pricing and above-average landside service levels to customers,” he said. “Just as we do on our shipping activities. “We do the not believe that lowering rates on our landside to ridiculous proportions will do the industry any justice.” This all stems from the fact that intermodal markets indicate what Padayachee termed “a cautious approach in dry commodities”. “Hence,” he added, “aggressive competition in the local transport sector has been created.” But the company has been busy developing its own customer base, targeting areas where investment in equipment is generating more value-added service for clients. “There has been significant growth and gain in reefer (refrigerated container) export markets,” said Padayachee, “due to favourable foreign exchange and client loyalty.” Brand-new “underslung” gensets (generator sets) have been procured for the long-haul of reefers – and what is termed “cold treatment” protocol. Also, 15 slider trailers (capable of adjusting from 40-foot to 20-ft, or 9-metre centre mount) were bought during the last quarter to accommodate heavy commodities without comprising Road Ordinance Regulations. There are also expansion plans for MSC Depots in Cape Town. “These,” said Padayachee, “are in an advanced stage of negotiation, and will be finalised soon. “This will allow us to expand, and to double our reefer throughput to 400 reefers per day. Increased electricity supply and additional back-up generators – with the latter capable of pre-tipping 84 reefers simultaneously – have been procured and delivered.” He also noted that turn-around times at the MSC Depots have been significantly improved, and the company was recently reported by a daily publication to be “a well-oiled machine”. The key element of the MSC success and dominance, according to Padayachee, is on-going staff training, education and a collective team effort by every employee.