Unsustainable rates will compromise safety and insurance cover

In the local transport sector, competitive
pricing and quality service delivery is
the essence of survival, according to
Mervyn Padayachee, GM of MSC Depots
and MSC Logistics in the Cape.
“Over-zealous transport operators are
dropping transport rates to extremely low
operating margins,” he told FTW. “And
I do not believe that they will sustain the
current and future economic status quo.”
Padayachee is also adamant that cheap
transport rates being offered in such a
fiercely competitive environment will
result in vehicle maintenance and the
ability to provide adequate, comprehensive
“goods in transit” insurance cover, being
compromised – all to reduce operating
costs.
“MSC Logistics has taken a logical
decision in affording competitive pricing
and above-average landside service levels
to customers,” he said. “Just as we do on
our shipping activities.
“We do the not believe that lowering
rates on our landside to ridiculous
proportions will do the industry any
justice.”
This all stems from the fact that
intermodal markets indicate what
Padayachee termed “a cautious approach
in dry commodities”.
“Hence,” he added, “aggressive
competition in the local transport sector
has been created.”
But the company has been busy
developing its own customer base,
targeting areas where investment in
equipment is generating more value-added
service for clients.
“There has been significant growth
and gain in reefer (refrigerated container)
export markets,” said Padayachee,
“due to favourable foreign exchange
and client loyalty.”
Brand-new “underslung” gensets
(generator sets) have been procured
for the long-haul of reefers – and what
is termed “cold treatment” protocol. Also,
15 slider trailers (capable of adjusting from
40-foot to 20-ft, or 9-metre centre mount)
were bought during the last quarter to
accommodate heavy commodities without
comprising Road Ordinance Regulations.
There are also expansion plans for MSC
Depots in Cape Town.
“These,” said Padayachee, “are in an
advanced stage of negotiation, and will be
finalised soon.
“This will allow us to expand, and to
double our reefer throughput to
400 reefers per day. Increased electricity
supply and additional back-up generators
– with the latter capable of pre-tipping
84 reefers simultaneously – have been
procured and delivered.”
He also noted that turn-around times at
the MSC Depots have been significantly
improved, and the company was recently
reported by a daily publication to be “a
well-oiled machine”.
The key element of the MSC success
and dominance, according to Padayachee,
is on-going staff training, education and a
collective team effort by every employee.