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Huge trucking
deal is underway
Are you ready for some big numbers?
Here they come...
SABOT Management Limited (SABOT) - a transportation and logistics company servicing Southern and Central Africa - has placed an order for 201 new Volvo FH13 trucks, making it one of the biggest trucking deals in Africa. The total value of the new trucks is estimated at US$30,150,000. That's a massive R215,421,750.
SABOT, a subsidiary of AIM listed company CAMEC plc, also announced its long term strategy to increase its trucking fleet to 500 vehicles, making it the biggest haulage company in the Southern hemisphere. The company's current fleet of 202 trucks is valued at US$7,440,000 (R53,158,800) and with the new order, SABOT's trucking fleet value increases to US$37,590,000 (R268,580,550).
To compliment its purchase of the 201 new Volvo trucks, SABOT also placed what is trailer manufacturer Afrit's biggest order yet of 240 tandem axle flatdeck Superlink trailers valued at US$8,400,000 (R60,018,000). The company also ordered 30 Afrit triaxle trailers, valued at US$840,000 (R6,001,800). The company's existing fleet of 256 Interlink trailers is valued at US$6,400,000 (R45,728,000) raising the total fleet value to US$9,240,000 (R66,019,799).
The company also currently owns 19 tankers valued at US$2,850,000 (R20,363,250) and is in the process of purchasing another 15 valued at US$2,250,000 (R16,076,249). Including trucks, trailers and tankers, SABOT's total fleet is now worth US$58,330,000 (R416,767,850).
Volvo has delivered 14 of the 201 trucks from this new order. The balance will follow in batches of 107, then 40 and finally the last 40 units.
"We are pleased to have concluded this deal," says Calvin Moonsamy, financial manager at Auto-Sueco, the Volvo distributor in South Africa. "With the trucks being manufactured in Sweden, our aim as the liaison between Volvo Sweden and SABOT is to ensure that delivery of the trucks is conducted without any delays. Furthermore, we are proud to be associated with a company that has the foresight to acknowledge the importance of re-investing in itself and in Africa," says Moonsamy.
Afrit's trailer order came in two phases. The first production run, to get things started, was 40 trailers with the balance of 200 being completed by delivering 2 Superlink trailers every day - five days a week.
"This huge order has accelerated Afrit's introduction of mass production- as well as customised production lines, which gives us a competitive edge and the ability to increase market share. This is the largest order that has ever been placed. The next step for Afrit is to complete similar mass production lines for Sliding Curtain combinations as well as side- and end-tip trailers," says Albert van de Wetering, marketing director at AFRIT.
SABOT's decision to only use one manufacturer for trucks and trailers means that maintenance will be conducted through one central point, which means that all parts are standardised. This ensures that time is saved rather than contacting a variety of suppliers.
"The reason for this huge investment is to develop strength in the industry and to grow our representation in Southern and Central Africa. The region as a whole is growing, as is the demand for fast and efficient road transportation. We are currently the only haulage company in Africa that is prepared to reinvest in the company. Our mission is to ensure that our customers are confident that they can rely on SABOT's reputation of quality service with a full maintenance back up system," says Adrian Smuts, director of Sabot Management.
SABOT has subsidiaries in Johannesburg, Messina, Beit Bridge, Harare, Chirundu, Lusaka, Kitwe, Kasumbalesa, Lilongwe and Lubumbashi. The major activities include the haulage of food aid, minerals, glass, fertiliser, tobacco, salt, flour and general cargo to name a few.
Importantly, SABOT plays a major role in its holding company, CAMEC plc's mining operations.
"It currently takes three months for a train to reach Johannesburg from Lubumbashi and the only economical way to transport infrastructure between the two cities is through a reliable transportation infrastructure. Approximately 40% of our fleet is dedicated to CAMEC's mining operations in moving goods back and forth between South African and the Democratic Republic of the Congo (DRC).
"From South Africa, we transport various commodities that are either unavailable or scarce in the DRC i.e. steel needed for warehousing and housing, mining equipment and machinery, food products, etc. and from the DRC, we return with a full load of CAMEC's export copper, cobalt and cathode," says Adrian.
"The key to our success is that we carry full loads of cargo to and from South Africa. Some of our competitors only carry half loads of cargo, which means that they either have to charge double to compensate for a return trip or they run at a loss. With our new fleet of trucks and trailers, we are positive that our business will grow even further. This investment is evident that we are here for the long run," concludes Smuts.
SABOT has 30 years of international transport experience and carries a staff compliment of 1 000 - some of whom have up to 25 years service. Their strength lies in their infrastructure as each country of operation ensures that loading, offloading, obtaining permits and border clearances are carried out efficiently.
Strict maintenance schedules ensure that the fleet runs 24 hours a day - seven days a week. Moreover, if a truck experiences any mechanical problems during transit, a replacement truck and a mechanic is immediately despatched which ensures that there are no delays. This ensures that clients always receive their goods within a reasonable time frame and in good condition. This is extremely important with the haulage of food aid to neighbouring countries as climatic conditions could impact negatively.
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