Two years ago Uzuko Carriers Ltd was formed as the result of an empowered joint venture between Caltex Eastern Cape Marketers and Cargo Carriers. The Eastern Cape-based transport company was established in June 2010 to handle the ‘last mile’ distribution of the Caltex brand in the province, and to help grow the Caltex footprint. Since then it has increased its annual volumes by 260% over the last 2 years.   The company now supplies 48 filling stations in the rural areas of the Transkei, the platteland towns of the Karoo, as well as the Nelson Mandela and Buffalo City Metros.

“We needed a locally-based carrier that would maintain the high standards of safety and reliability established by Cargo Carriers,” says Clive Berlyn, CEO of Caltex Eastern Cape Marketer. “Many of the Uzuko drivers and staff were recruited from Cargo Carriers and have the same professional attitudes and strict work ethic. The partnership is working well. Efficiencies and turnaround times have improved and our loads have increased by nearly 10%.”

Uzuko Carriers has also distinguished itself by successfully piloting ePOD (Electronic Proof of Delivery). This is an integrated, handheld, web-based tool that enables total visibility across the supply chain for Uzuko Carriers’ fleet managers and Caltex retail customers. It was developed by Cargo Carriers and has improved the control of drivers and fuel consumption during its trials. Another significant advantage is that ePOD has sign-on screen technology and transmits signed proof of delivery the moment the goods are received. This reduces debtor days and debtor queries for regional marketers and improves working capital management for the brand owner. “It’s so much better, says Berlyn, “Paperwork was a big problem. We work in outlying areas and had to send someone to collect the receipts. There was always a delay. With ePOD the receipts come in regularly every two hours. And we know exactly where our trucks are.”    

Establishing a regional marketing office in a joint venture with a reputable carrier is gaining popularity. Chevron has proved the success of this approach with Caltex Mpumalanga North Marketers and Caltex Eastern Cape Marketers, both of whom are in a joint venture with Cargo Carriers.  With Uzuko Carriers being the initial joint venture, we learnt as we went along, says Berlyn, “it was a risky ride, there are challenges, but it’s been fun and it is going  well.”  He explains the reason behind his choice of Cargo Carriers as a joint venture partner. “Cargo Carriers brought high B-BBEE and SHEQ scores as well as extensive industry experience and world class bulk vehicle operators and equipment to the partnership. When we met the management of Cargo Carriers we realised that we shared the same values. They were people we could see ourselves partnering with.”

“This equity partnership allows us to expand our footprint in the fuel industry and creates opportunities for us to partner other regional marketers and distributors,” says Andre van Vuuren, Marketing Director of Cargo Carriers.   “Companies interested in contracting out their last mile distribution should contact us.  Our involvement reduces their need for Capex as they grow and allows them to utilise our market- leading SHEQ and BEE statuses.”