Consider this before starting a transport and logistics venture
Category Advice
In recent times, there has been a spotlight placed on transport and logistics in South Africa as more businesses enter this sector every year. Although there are unique challenges when you first get started, 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 bring about an 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.
Getting Started
Before you begin your transport and logistics venture, it is essential to seek out mentorship from an experienced person in the industry or someone who understands the industry. This person should guide you through various important aspects such as the National Road Traffic Act. He or she should also provide guidance on the costs involved, such as licence fees and maintenance costs.
The Next Step
Once you have the essential knowledge, you will then need to assess if you have the necessary skills to get your venture going. This involves ensuring that the drivers you employ have professional drivers licences (Code 10/Code 14). It also means making sure that you, as the owner, have the necessary financial and business skills to manage the business successfully.
Having the right financial skills is perhaps one of the most elements in the initial stages of a transport and logistics business. This is because it is capital-intensive, typically requiring large sums of capital to purchase vehicles, employ staff, and rent or buy premises. Over and above this, a business owner needs to have enough liquid capital to keep the business running, invest in marketing efforts, and get through emergencies. 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 economic regions 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 Hennopspark in Centurion 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. Its sought-after status is due to its prime location situated near the Ben Schoeman Freeway, and N1 and N4 highway, which connects it to several key points of interests, cities and towns such as Pretoria, Midrand, Kempton Park, Johannesburg, Krugersdorp, OR Tambo International Airport and Lanseria Airport.
Available Property
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 24-hour security with access control.
To find out more, speak to our helpful agents from 3CUBE Property Solutions today.
Author: 3CUBE Property Solutions
