Consider this before starting a transport and logistics venture
In recent times, there has been a spotlight placed on transport and logistics in South Africa as more businesses enter this sector on a yearly basis. And although there are unique challenges when you first start off, success can be achieved if you create a reliable and credible business brand, manage your finances smartly and secure clients before getting started.
According to the latest forecasts, the demand for freight transport will grow in the country by between 200% and 250% over the next 15 to 20 years. This growth will increase in transport routes with higher volumes such as the corridors between Gauteng and Cape Town. This brings good news for new businesses entering the sector due to the massive potential it holds for those who do it right.
Before you begin your transport and logistics venture, it is essential to seek out mentorship from an experienced person in the industry or one who understands the industry, who will guide you through various important aspects such as the Traffic Act, costs involved such as licence fees and maintenance costs, and providing insight on the strategic locations for industrial property to rent or buy.
The Next Step
Once you have the essential knowledge needed, you will then need to assess if you have the necessary skills to get your venture going. From ensuring that the drivers you employ are skilled with a professional drivers licence (Code 10/Code 14) to ensure that you as the owner have the necessary financial and business skills to manage the business successfully. More so, as an owner, there are a number of duties to perform such as staff duty rosters, maintenance programmes and vehicle schedules.
Having the right financial skills is perhaps one of the most important skills to learn and understand in the initial stages of a transport and logistics business. This is because it is capital intensive, typically requiring large sums of capital that goes towards the purchasing of vehicles, employing staff, and renting or buying premises. But more than this, a business owner needs to have enough liquid capital to keep the business running, invest in marketing efforts, and use for emergency situations. Without this, a business will start relying heavily on the revenue generated from daily operations, and this prevents growth and eventually leads to a distressed business.
Gauteng's Transport and Logistics Sector
If you're thinking about starting a transport and logistics business in Gauteng, it is reassuring to know that it is one of the strongest in the country, with key spots being Alberton, Boksburg, Kempton Park, Germiston and Centurion. Furthermore, the future of this sector looks set for more growth as an increase in imports is pushing up demand for these services.
Take Centurion, Hennopspark as an example. The suburb is home to a bustling and ever-growing transport and logistics sector where many new up-and-coming businesses are choosing to rent industrial properties in. It's sought-after status is due to its prime location situated near the Ben Schoeman Freeway, and N1 and N4 highway, which connects it to a number of key points of interests, cities and towns such as Pretoria, Midrand, Kempton Park, Johannesburg, Krugersdorp, OR Tambo International Airport as well as Lanseria Airport.
A great example of a property in Hennopspark that is ideal for a transport and logistics business is situated near the Ben Schoeman Freeway. It boasts ample yard space for trucks and super links for deliveries and dispatching, roller shutter access, an office area with reception and boardroom facilities, and 24hr security with access control.
To find out more, speak to our helpful agents from 3CUBE Property Solutions today.
Author: 3CUBE Property Solutions