In a time which has seen many companies in the local haulage industry counting pennies and battening down the hatches, Cargo Carriers, a veritable doyen of South African road transport, is having its best ‘˜new business year’ in twenty years.
Among several contracts Cargo Carriers secured this year, the company has entered into a 50-50 equity deal with Caltex Eastern Cape Marketer (CECM) to establish a new transportation business for the distribution of Caltex fuels and lubricants into the rural Eastern Cape. CECM was established after concluding a deal with Chevron, the brand manufacturers and distributors of Caltex products in South Africa, for the transport and distribution of all fuels and lubricants throughout the rural Eastern Cape in December 2005. Initially the company supplied fuel to 35 Caltex service stations using existing Chevron transporters as well as third party service providers.
With CECM having increased its footprint and the number of service stations to 46 in and around the Eastern Cape, the intensified focus and guidance from Chevron for higher Safety, Health, Environment & Quality (SHEQ) standards, as well the need to optimise its transport solutions to efficiently service a wider area, CECM opted to redefine its distribution strategy. According to CECM director Clive Berlyn, the company did not want to simply contract out its last mile distribution. It wanted to form a partnership with a company who would be in it for the long-term.
The new company, dubbed Khanya Carriers, falls under the control of Cargo Carriers and operations currently include the use of eight dedicated bulk tankers to service the area.