Warehousing and distribution hold strong growth prospects

JOY ORLEK THE DURBAN office of clearing and forwarding company Reegans Freight fulfils a critical transport and warehousing link in the company’s global operation. An overnight roadfreight service between Durban and Johannesburg ensures a steady stream of cargo moving to and from the busy port. “Because of constant problems with the rail leg we tend to move most of our cargo by road,” says MD Vee Naidoo. Established seven years ago with a strong focus on exports, Reegans has seen a major turnaround in its business mix which is now weighted strongly in favour of imports. “The value of the rand played a large role in this,” Naidoo told FTW, “and we’re now handling 90% imports to 10% exports.” These are a varied mix of textiles, clothing, building materials and glassware moving into the country with building materials to Angola and West Africa a strong feature of its export business. And Naidoo is upbeat about the company’s future growth prospects. Through its membership of the Worldwide Cargo Network Association, it has a network of agents in 67 countries. “We believe the biggest potential is in warehousing and distribution, both domestically and into Africa.” Reegans offers warehousing facilities in Johannesburg and Durban with a fleet of 11 vehicles serving a range of overborder destinations, including Botswana, Lesotho and Swaziland.