Rhenus South Africa is expanding its storage space and diversifying its warehouse operations scarcely a year since moving into the 16 152-square-metre state-of-the-art facility in Durban. This comes as its Durban warehouse space has grown by 53% in just two years. Increased demand for warehouse space, as well as more service offerings such as the addition of a Special Storage Warehouse (SOS) bond store, are driving strong growth for the global logistics prov ider.Kishore Kanayelal, regional director at Rhenus South Africa, says that the strong growth over the past year can be attributed to several factors. “We are seeing the automotive and medical industries, in particular, demanding more warehouse space. Also for food items with extended shelf life.” Covid-19 has disrupted supply chains worldwide, with importers increasing their stock levels to ensure reliable delivery to their clients.“ The exorbitant airfreight rates are also having a strong knock-on effect, with some customers opting to save on airfreight rates through larger consignments, resulting in higher stock levels,” he says. “Due to uncertainty in supply and demand, importers are increasing stock holding to avoid stock outs.”Kanayelal adds that another driver in the demand for warehouse space is a growing realisation that outsourcing warehousing can be a cost-effective and efficient solution to stock challenges. “Overheads, labour, security, ASIB compliance, etc quickly add up,” he says. “But through shared costs and our advanced warehouse management system, we can offer cost-effective, customised and comprehensive solutions.”The Rhenus facility is strategically and conveniently located near King Shaka International Airport and Durban Container Terminal . The warehouse includes 1 250sqm of bulk handling area and 5 823 racked pallet positions. Another imminent development is the approval by Sars of an SOS bond store within the facility that will bring additional benefits to Rhenus clients. Improved cash f low as a result of deferred duty and VAT payments, as well as speed to market are some benefits of the bond store. The company has also seen increased demand for its unpacking and cross-docking services. “Clients are increasingly looking to get their goods to market quicker, at a reduced cost. Cross-docking means less handling of goods, reduced labour costs and faster delivery times.”He says irrespective of what plays out over the coming months, Rhenus finds itself in an agile position to tailor-make solutions whether for high-value vulnerable cargo, food-grade warehousing, e-commerce, or a retail solution. “The growth of our warehousing division is an indicator that our economy is starting to recover – which is good news for everyone.”The exorbitant airfreight rates are having a knock-on effect, with some customers opting to save on airfreight rates through larger consignments.– Kishore Kanayelal“
