Integrated global logistics company Kintetsu World Express (KWE) implemented a new facility in Mobeni, KwaZulu-Natal, on April 1, which will accommodate its tender project with bio polymer producer LignoTech South Africa (LTSA) as well as other strategic initiatives the company is embarking on.

KWE secured a two-year agreement with LTSA in October 2010 to provide warehouse storage and handling services for the company, notes KWE national warehouse manager Kevin Higgins.

He explains that the original contract comprised a period of two years with completion set for 2012. However, towards the end of 2011 LTSA approached KWE and requested warehouse capacity to accommodate a storage volume of 9 500 t of cargo, an undercover loading and offloading area and the availability of at least six container docking bays at any given time.

A facility of these specifications had to be within sufficient distance between the Durban port and Umkomaas, KwaZulu-Natal, where the company manufactures and tranports its goods, as well as adhere to a specific budget.

Higgins explains that, when LTSA approached KWE with the specifications, its warehouse facility in Jacobs was only 8 300 m² with the ability to accommodate only 6 500 t of LTSA cargo, rendering it unable to accommodate the volume of 9 500 t of cargo. KWE’s contract with Jacobs was valid until July 2013, requiring it to source a tenant to take occupation of its old facility and source a new one.

To ensure a facility large enough to accommodate LTSA’s specifications, Higgins managed to source a development project in Mobeni, comprising the redevelopment of a portion of the Seardel Textiles property in that area.

“While an original concept was already in place, we aimed to design a building that would accommodate all LTSA’s requirements as well as other strategic initiatives that KWE was embarking on,” Higgins reiterates.

“After several design meetings we agreed to keep the budget within scope and managed to negotiate a mutual agreement, whereby we fell within the budget allocation of LTSA, KWE as well as the facility developer.”

Higgins points out that the company not only needed to ensure that LTSA’s needs were taken care of but also ensure that all of its infrastructure requirements were met and fell within the budget constraints.

“We presented the solution to LTSA and they were impressed by the design and the pricing model so in addition to handling LTSA’s dry products they required that we also handle their liquid products,” he says.

KWE consulted with LTSA and was given permission to build a tank farm on the warehouse site within the parameters of a strict budget.

“Following a thorough research programme we managed to source a manufacturing company that could manufacture the tank according to the specifications, which comprise two 500 m3 tank of stainless steel, a weighbridge, agitators and a heating facility,” Higgins notes.

The tank farm also required pumps and associated piping for the off-loading and loading of road tankers, flexitanks and isotanks, a raised pump suction about 1 m above tank flow, a flow meter and other auxiliary equipment.

Higgins notes that KWE also managed to source a weighbridge service provider and after negotiations with suppliers managed to adhere to the budget parameters.

“After much negotiation with LTSA, we finally extended contracts in July 2012. The new warehouse facility in Mobeni was fully operational by April 1, while the tank farm is now nearing completion. This process is extremely complex and we had to work with many different local municipalities to get approval for the tanks and operation thereof,” Higgins points out.

“We are extremely proud of our achievement on the new development and believe that this has opened other service opportunities in terms of offering liquid storage and handling services as well,” he concludes.