New warehouse provides one-stop landside logistics

“Our new 10 000 m² warehouse
in Germiston is ideally
designed to support our
clients and to complement our existing
long-haul transportation business,”
says Arnold Reddy, director of Reddy
Cargo Services.
“There is a trend for manufacturers
to outsource distribution and to focus
on their core business in order to
reduce overheads. Along with the
warehousing facilities, we have local
distribution fleets in Durban and
Johannesburg as well as our longhaul
fleet which together provide
one-stop landside logistics to clients,”
says Reddy.
“We take on a lot more responsibility
for our clients by offering the
warehouse facilities but we believe
it is worth it. It won’t necessarily
lead to more transport offerings but
it makes it much easier and more
cost-effective for clients and also for
us as trucks have less downtime when
they are delivering from warehouse
to warehouse.”
The company is keen to own its
own warehouse in Durban, according
to Reddy. “We are currently renting
from Transnet, but there is simply
no property available due to the
congestion. And if property becomes
available it is so expensive that it
becomes uneconomical if you want
to develop it and remain competitive
in the market.”
The warehouse was due to be
completed a year ago when economic
conditions were better. “But we don’t
regret building it,” said Reddy. “The
timing may not be optimal but we c
an sustain the business with our
current volumes.
“We are retaining the old
2 000 m² premises in addition to the
new warehouse and will mainly use
that for hazchems. There are very few
people who are hazchem certified so
we can get that business without much
competition,” Reddy added.