Niche logistics provider OneLogix aims to more than double the size of its automotive logistics site at Umlaas, in KwaZulu-Natal, in a project that is named ‘Umlaas 3’.
OneLogix CEO Ian Lourens said on Thursday in Johannesburg that the R280-million development, next to the N3 highway, would add 40.5 ha to the current 24 ha site, with all three of its Abnormal Logistics businesses set to benefit from the project.
Vehicle Delivery Services (VDS) clears, inspects and delivers cars and bakkies for vehicle importers and manufacturers, while TruckLogix delivers new trucks. Projex provides logistics and abnormal load solutions.
“Umlaas 3 represents a big step for us in the journey of OneLogix,” said Lourens. “We think this is prudent capital allocation.”
The development will add 11 000 VDS bays and 1 500 TruckLogix bays to the Umlaas site.
“Of the 11 000 VDS bays we can fill 8 000 today,” said Lourens.
Apart from parking bays, the development will also include fuel facilities, driver accommodation and offices.
Construction will start in April, with the project expected to be completed by June 2020.
Lourens said the development would be aided by the upgrade of the Umlaas interchange, as well as the expected arrival of a railway line at the site, which could unleash the site’s “big potential”.
“Rail is a competitive threat for us, but we can work together.”
Lourens said it was possible for OneLogix to enter into a public-private partnership with Transnet at the site.
“The site is also outside the rust belt in Durban.”
OneLogix on Thursday reported a 26% increase in revenue, to R1.44-billion, compared with the same period in 2017.
Operating profit was down 9%, to R102.7-million.
Trading profit was up 7%, to R108.2-million.
Trading margins had, however, declined from 8.9% to 7.5%, partly due to significantly higher fuel costs.
The OneLogix model also changed from the outright purchase of vehicles to renting vehicles, increasing operating expenses, as well as margins.
OneLogix’s Abnormal Logistics business contributed 49% to revenue and 52% to trading profit.
Primary Product Logistics was responsible for 43% of revenue and 40% of trading profit.
Logistics Services, albeit small in contribution, contributed 8% to revenue and 8% to trading profit.
Looking ahead, Lourens believed that trading conditions for all group companies were expected to remain challenging for the foreseeable future.
He said the group would continue to extract maximum efficiencies from existing businesses in order to protect and grow their individual market shares in their respective niche markets.
He added that OneLogix would remain mindful of start-up and acquisitive opportunities, which had, over the years contributed to the success of the group.