Roy Cokayne
Listed logistics and transportation group Cargo Carriers has expanded the capability of Buks Haulage Limited (BHL) following its acquisition last year of a 55 percent stake in the Zambian-based transport company, in a move designed to boost growth in its mining business and diversify its earnings through sub-Saharan Africa.
Cargo Carriers reported yesterday that the BHL fleet had already been strengthened with the purchase of 80 trucks from China, which had allowed BHL to replace ageing vehicles and increase its fleet from 75 to 126 trucks while boosting the company’s business by 60 percent.
About 160 new jobs had also already been created by BHL’s expansion, it said.
BHL’s primary business is the transportation of copper concentrate, lime and sulphuric acid in Zambia and the Democratic Republic of Congo although it also offers logistics solutions to the manufacturing and agricultural sectors.
Murray Bolton, the joint chief executive of Cargo Carriers, said yesterday that there was no doubt that the centre of gravity for mining had moved north and if Cargo Carriers wanted to be a player in this market, it needed to have a strong presence there.
Cargo Carriers acquired the 55 percent stake in BHL for $2.2 million (R19.9m).
Bolton said global mining, agricultural and chemical businesses were looking to expand into the world’s fastest-growing continent but were faced with challenges to find logistics partners that delivered the required safety and environmental standards.
He said the partnership between Cargo Carriers and BHL would appeal to international companies seeking to take advantage of the high-growth opportunities Africa offers.
When it announced the transaction last year, Cargo Carriers said the acquisition achieved both its stated growth objectives of achieving growth by acquisition and risk diversification through business in neighbouring countries.
“This transaction expands Cargo Carriers’ ability to take advantage of the burgeoning mining economy in Zambia,” it said. Shares were unchanged at R10.15 yesterday.