Rhenus Logistics has significantly expanded its footprint in Gauteng and Cape Town, setting the stage for substantial growth in the warehousing and distribution sectors.The company has expanded its Samrand facility in Pretoria and its outsourced bulk facility in Germiston to strengthen its presence in the Gauteng region. These combined developments provide a total of 13 000 square metres of additional operational space.According to Cornell Van Rooyen, CEO of warehousing solutions, Africa and the Middle East, a new 25 000-sqm facility is being developed, with completion planned for mid-2024 in Meadowview in Johannesburg. This development will serve as the new Rhenus South Africa head office, accommodating various business units, including contract logistics, air and ocean, Rhenus Express and all functional departments, such as finance, human resources, information technology, customer service, and sales.Looking further ahead, the company is embarking on another significant project, this time in Cape Town, where it plans to establish a warehousing and distribution hub for Rhenus Express, spanning 15 000sqm. This hub is scheduled to open its doors in the fourth quarter of 2024."These developments are a testament to our commitment to providing world-class logistics solutions in South Africa. With these expanded facilities, we will be better equipped to meet the growing demands of our clients and provide them with innovative and efficient supply chain solutions," said Van Rooyen. "We've noticed it's getting harder to find more warehouse space in Johannesburg and Cape To w n . T h i s shortage makes it tough to keep our prices competitive and in line with the market, especially in areas where the markets are already well-established and mature. This highlights the importance of finding smart solutions to tackle this problem."According to Van Rooyen, while there are numerous appealing alternatives to consider, it's still crucial to prioritise proximity to one's current operations when planning new developments.This approach helps avoid any disruption to an extensive existing customer base and the customer locations.He said with the express sector growing, it required ongoing investment and facilities for Rhenus Express, with further expansions to its f leet and facilities situated closer to Pretoria. "In 2024, we will continue developing in Johannesburg and Cape Town to accommodate the growing demand for comprehensive Contract Logistics and Distribution (CL&D) solutions. More warehousing customers seek end-to-end logistics solutions where Rhenus manages and monitors their inventory from inbound processes to final-mile delivery. Our warehouse management systems offer complete transparency, enabling customers to track their transactions from initiation to final order fulfilment.This includes access to online Proof of Delivery (POD) records and performance reporting, with upcoming enhancements through integrated systems via MS PowerBi for even greater convenience."Van Rooyen said the expanding array of online shopping choices continued to fuel the growth of e-commerce in the country, attracting numerous new entrants. He pointed out that e-commerce logistics in South Africa had advanced over the past decade, however it remained in a developmental stage, facing several challenges from both a network and technology perspective, necessitating significant infrastructure investment to meet rising demand. Currently, only about 6-7% of consumer goods are purchased online in South Africa, in stark contrast to Europe and many other parts of the world, where this figure already stands at 25-30%. This underscores the substantial potential for growth and innovation in the e-commerce sector"This, in turn, influences the decisions regarding depot and building infrastructure. To efficiently accommodate the rapid-paced cross-dock and express distribution operations, significant investments must be directed towards larger Regional Distribution Centre (DC) space and substantial automation and online system enhancements," he said.
