Cargo Carriers subsidiary BHL has expanded its fleet with the purchase of 80 FAW trucks from China.
BHL’s MD, Buks van Rensburg, says: “The new FAW trucks from China are considerably cheaper than equivalent alternatives.” Going directly to the source has enabled BHL to reduce its costs structures, giving it a competitive edge in Zambia’s logistics industry. “After testing the FAW trucks in Zambian conditions, we found they are suited to the African terrain and have far better fuel consumption (about 8%) than their nearest competitors. It’s a big win all round given the rate at which input costs are rising and the state of the world economy.” BHL provides logistical solutions for the mining, manufacturing and agricultural sectors in Zambia and operates in Zambia, Namibia, the DRC and Mozambique. Cargo Carriers acquired a 55% stake in BHL in June last year and the new partnership is well on its way to achieving its immediate goals.Cargo Carriers is enabling BHL’s rapid expansion, while BHL gives Cargo Carriers a broader footprint in sub-Saharan Africa and the chance to take advantage of the boom in the Zambian mining industry.
The purchase of the FAW trucks is an important sign of both Cargo Carriers’ and BHL’s intent. It allows BHL to replace ageing vehicles and increase its fleet from 75 to 126 trucks while boosting the company’s business by 60%. The savings achieved by the direct-from-source purchase will add further value to the partnership and have significant impact for the Zambian job market (160 new jobs have already been created by BHL’s expansion). Efficient cross-country and cross-regional transportation will encourage Zambian businesses to seek new opportunities both inside and outside the country, stimulating local business expansion. The expansion of Cargo Carriers and BHL bodes well for current and future customers, as well as for international companies seeking to take advantage of the high growth opportunities that Africa offers. They will now be able to rely on global best practice logistics partners thathave the expertise, the local knowledge and the access to capital to partner them strategically in Central and Southern Africa.