Ziegler to treble warehousing capacity

In line with its 4PL expansion strategy, Ziegler ZA is set to treble its warehousing capacity when it moves to new premises in Spartan later this year. Renovations are currently under way and when complete the facility will have all the bells and whistles – from full hazchem compliance to highly sophisticated security systems and a larger bond store. “We have very strong global 4PL systems and this development is in line with the focus of our parent company,” chief operations officer Paul Lawrence told FTW. Several global customers – largely in the energy sector – have already come on board and reserved dedicated space in the facility, with another pending, said Lawrence. “It’s one of the positive outcomes of South Africa’s energy crisis. We’ll be doing the warehousing, distribution and importing for a large producer of generators, and the same for a company that specialises in solar energy.” Ziegler recorded some growth last year and the company is upbeat about future growth on the back of its warehousing development and the positive benefits flowing from its recent BBBEE deal. Earlier this year the European company sold a share of its South African business to a blackowned consortium headed up by BHP Billiton executive chairman Dr Xolani Mkhwanazi. The move has elevated the company to level 3 BBBEE status, which has opened new doors, according to Lawrence. “We’re now able to secure business from which we were excluded in the past. We’re also looking at participating in the empowered black property ownership element of the new BEE codes.” However a major challenge at present, says Lawrence, is the unsustainable level of rates. “People are importing less because of the weak rand and our manufacturing is not up to speed – which means there’s little benefit from the weak rand for exporters. Shippers are less inclined to use airfreight because of the cost and seafreight rates are under pressure. When you’re doing RFQs (request for quotation), it’s often more about rates than value add – which is not sustainable for the industry in the long-term.” The company’s expansion plans are focused on opportunities in Africa where border presence is high on the agenda. “We’re now well established at Beitbridge and are busy with options for Groblersbrug and Komatipoort.” INSERT & CAPTION We have very strong global 4PL systems and this development is in line with the focus of our parent company. – Paul Lawrence