As an international provider of smart supply chain solutions, Barloworld Logistics is a mode agnostic company. By signing an agreement with Transnet Freight Rail to move rail friendly freight from road to rail, it is ensuring a more cost-effective level of service to its clients.
Steve Ford, CEO Barloworld Logistics, says: “We all know the distance between points of demand and consumers is quite enormous, as is the volume of goods. We looked at where we are now and where we need to be in the future. We know there are obvious strains on the country’s road structures. Congestion on our roads creates numerous challenges for the logistics service provider. In addition, road safety and carbon footprint issues have to be considered, which means this agreement with TFR makes perfect business sense. “It is absolutely fundamental for the success of the company to have this partnership with TFR and I do not say that lightly. For the future economic growth of the country, agreements like this between logistical companies and TFR is important, especially with the economic and infrastructural issues the country faces.” Ford says that the partnership with TFR is critical for Barloworld Logistics, which is why the company is committing its best employees to work alongside TFR in order to create a world class supply chain solution that creates value for Barloworld Logistics and TFR. “We are super excited about signing this agreement. We have had a relationship and been working with TFR over the past few years and this agreement formulises it and is a good step forward for us at Barloworld.”
Siyabonga Gama, chief executive of TFR, adds: “We have to accelerate the process of moving rail friendly cargo from road to rail and that requires innovative solutions. Smart partnerships are important in terms of us assisting to collaborate with current service providers and it presents us with an opportunity to provide long haul services and integrated supply chains.
“The business model is designed to allow road hauliers such as logistic companies to retain their relationships with their customers and continue to provide door-to-door services while contracting with TFR for the long haul leg of the service.” Gama believes there are many benefits to a relationship such as this one. “It assists the economy in terms of reduced road maintenance and also in terms of reduced road fatalities. For the truck driver it will build cohesive families. They will now need less time in terms of being away from their families and also healthier truck drivers because it will reduce exhaustion. “The other intrinsic aspect is that we do not see road and rail in being in competition. We see them as being complementary. It is through agreements such as this one that we can begin to look at the logistics space and see who is best placed to play a strategic role in the supply chain. We are not sitting here wishing truck drivers away and truck drivers do not want to wish the rail away. How can we work together because we have expertise in long haul and trucks have expertise in door to door service? This is going to enhance the whole value chain for our customers in South Africa and so we are really looking for a lot of multi-modal transport opportunities in the logistics sector. We think this is a very good deal and a step in the right direction and the organisation thereof means there will be a lot of exchanges between ourselves and Barloworld Logistics. It is a very exciting time for us and is also exciting for the economy,” Gama concludes.
