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SA Logistics Sees Kenya as Better Option to Expand – Land Cargo News

It is from a recent report of land cargo news – OneLogix transportation carrier is the logistics company belonging to South Africa is under discussion to expand its logistic services to Kenya’s transport market. It is thinking to buy the local subsidiary Kuehn+Nagel for expanding its transportation carrier services. OneLogix is a listed logistics company in stock exchange which is carrying out discussions with the Swiss logistics company for expansion and trying to close the deal at 1 million dollars. Kuehn is a special transportation carrier company expertise in bulk vehicle haulage business. They are thinking to invest on buying new fleet for business expansion, IT infrastructure, in developing technical skills and in building capacity to carry out operations. Apart from these investments, the main aim of OneLogix is to improve the boom of imported vehicle transporting business.

Final Throes

It is revealed by OneLogix that they are in final phase of discussion and are expecting to finalize the deal in this month. If this deal succeeds, the opportunities will increase more for transportation of vehicles from Mombasa to different destinations of Kenya and other neighboring countries effectively by advanced fleet systems, said by Geoff Glass, financial director of OneLogix. OneLogix Logistics Company has already expanded its services into Tanzania, where it is trying to expand its business further to transportation carriers. It is expected by industry insiders that the company is going to target only those car dealers and car companies who were carrying out import operations in huge. It means for the transportation carrier expansion, OneLogix will concentrate only on car companies and dealers who import cars in huge amount as most of the individual buyers are willing to drive their vehicles personally from Mombasa port.

Bulk operation costs less than single operations. If anyone needs to transport their vehicle from one place to other, the individual cost will rank high but if they opt for bulk transportation services, the cost of transportation will get reduced automatically enabling safe delivery. Transportation Carriers especially car carriers will offer their services at cheap prices if you bring huge car volumes. They are safer to handle your cars avoiding transportation damage, said by Charles Munyori, Auto Bazaar Association Secretary of Kenya. He said that 7,000 cars will get imported every month whose transporting operations are completely carried out by transporters belonging to Mombasa. Delights Kenya, Skaldo Transporters, and Corner Garage Transport services are listed as some of the major car transport carrier services in Kenya. It is reported from recent data taken from the economic survey 2015 that – a remarkable growth is recorded in road transport sector which is 15.2 percent with revenue output of Sh600 billion compared to Sh521 billion a year before. It is expected to grow continuously as vehicle usage increased more compared to previous years. In addition to vehicles, transportation of heavy equipment which is required in the field of construction, oil, gas and mining sector are expected to increase further by using special logistics transportation carriers and international firms. The deal is still under negotiation, which is yet to be signed after finalization.

Source From: http://www.businessdailyafrica.com/SA-logistics-firm-negotiating-to-buy-30pc-in-Kuehn-Nagel/-/539552/2847232/-/62a6ku/-/index.html