Africa next logical step owing to trade and development opportunities

1st February 2013

By: Chantelle Kotze

  

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Logistics solutions provider Seko Logistics aims to increase its market share in Africa to 5%, up from the current 1%, through the establishment of new offices across Africa in the next five years.

The company plans to open new offices in Kenya, Tanzania, Djibouti and Zambia this year. This follows the establishment of offices in Uganda and Ethiopia in April and May 2012 and in Morocco and Tunisia last month, says Seko Logistics regional director for East Africa Hubert Vermaak.

Seko Logistics executive MD for Europe, Middle East and Africa Bob van der Putten tells Engineering News that the company plans to open offices in Kenya in the second quarter of this year and in Djibouti and Zambia by the third quarter, adding to its existing coverage in Libya, Egypt and South Africa.

The logistics provider’s latest expansion is driven by the strong energy, mining and technology industry sectors in Africa, which are core vertical markets for the company.

Seko Logistics currently services Ethiopia, South Sudan, Djibouti, Uganda, Burundi, Rwanda, the Democratic Republic of Congo, Kenya and Tanzania. The establishment of new offices will further enable the company to service Zambia and Mozambique, say Seko Ethiopia joint MDs Nebiyu Woubishet and Dawit Woubishet.

Seko Logistics’ 400 m2 warehouse in Kampala, Uganda, has an additional 200 m2 of office space, while its 850 m2 warehouse in Addis Ababa, Ethiopia, has an additional 250 m2 of office space. The company also has an office at Entebbe International Airport, in Uganda, says Vermaak.

The company’s offices in Uganda and Ethiopia use its global Web-based ware- house management operating system – Seko Real-Time Enterprise Database (RED) – which runs its portal, called MySeko, to provide customers with seamless visibility of their supply chains.

Seko RED, which is used in every country where the company operates and is available to any Seko client, enables the customer to view, report and track pur- chase orders, stock-keeping unit numbers and shipping trends in real time.

Seko Logistics’ African offices will focus on their core services, which include air freight, ocean freight, road freight, customs clearance, transportation, warehousing, special project cargo, warehousing, customisable information technology solutions and door-to-door delivery services, says Van der Putten.

“The sectors we serve in East Africa include government, energy, construction, consumer goods and the automotive sector, as well as the textiles and leather sectors for the fashion, retail and apparel industries,” says Vermaak. Other industry sectors that are served by the company include healthcare, pharmaceuticals, aerospace and technology.

Seko Logistics, as a global provider of supply chain solutions, including transportation, logistics and technology solutions, sees significant opportunity in Africa.

“Expanding into Africa has become a strategic competitive advantage for us, as countries throughout Africa continue to outperform global gross domestic product growth figures, with Ethiopia and Uganda comprising two of the fastest-growing economies,” says Seko Global Logistics CEO William Wascher.

Van der Putten adds that East Africa, specifically, has shown some of the most promising growth in trade and develop- ment, particularly in trade with China.

“As we have developed our operations into a global footprint, with locations throughout Europe, North America and Asia, Africa has become the next logical step for us, with more clients demanding a local presence and facilities to service their increased trade within the region.”

Seko Logistics has achieved a global growth rate of more than 20% as a result of its technology, employees and global presence. As its global clients demand more services and capabilities in Africa, the company’s goal is to expand its network of locations on the continent to provide exemplary logistics solutions for shippers, manufacturers and retailers serving Africa, says Vermaak.

As the company grows and enters new markets, finding and retaining good partners and talent become a challenge and East Africa is no exception, he adds.

“We are, however, fortunate to have had an established network prior to our expansion through our Africa gateway operations in Amsterdam, which provides air consolidation services for European Union shippers to the rapidly growing markets in Africa, as well as our expe- rience in South Africa, Libya and Egypt,” he concludes.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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