Barloworld Logistics to expand supply chain solutions across GCC and African markets to capitalize on trade growth
Barloworld Logistics, a leading provider of smart logistics and supply chain solutions, plans to expand their current supply chain solutions from UAE to the GCC and Africa capitalizing on the ongoing transformation of the region. According to Ernst and Young's 2012 Rapid Growth Markets (RGM) Forecast, exports from the Middle East and Africa are predicted to grow by more than 12 per cent over the next ten years.
Similarly, the 2012 African supplychainforesight report has noted great potential for the African continent as a logistics market. This is due to the fast growth of GDP in some African regions and increased demand for cargo services across most industry sectors. As a result the African logistics market is set to grow over the next five years.
Africa, in particular, has emerged as a key supplier of the resources and raw materials that are powering the growth of emerging economies such as China, India and Russia; a trend that is expected to significantly influence the future demand for logistics and supply chain solutions, with Africa and the GCC as a hub. Many of the products driving the demand for cargo services are derived from natural resources from Africa's well-known industries of mining, chemicals and agriculture.
Frank Courtney, Barloworld Logistics' Chief Executive for EMEA region, said: "Africa's positioning as a strategic target market makes it imperative to have a strong and well-established logistics sector to supplement the desired growth. According to the African supplychainforesight survey, 58 per cent of respondents are planning to expand their sales into Africa and 44 per cent of respondents are planning to sell through partners. The study also found that 75 per cent of respondents find it difficult to find reliable service providers and partners in Africa. As an African Supply Chain company, Barloworld Logistics is committed to addressing this gap by further expanding its presence across strategic locations in Africa and the GCC. We have in-depth knowledge of the African market, being a homegrown company established in South Africa and this gives us a competitive advantage to better understand and cater to the distinct requirements of domestic markets."
"With the presence of state-of-the-art logistics facilities, free zones, dedicated sea ports and airports; we believe that the GCC is well-positioned as a distribution hub to serve Africa. Barloworld Logistics is focusing on Africa and the Middle East, particularly the GCC region with a range of smart supply chain solutions," added Courtney.
According to the 2012 African supplychainforesight research survey, South Africa, Angola, Nigeria, Kenya and Egypt represent the largest trading economies in the African trade zones with annual GDP growth rate ranging from 5 per cent to 9 per cent. These countries, which currently serve as economic drivers within their relative trade zones, are expected to generate strong interest for trade and investment from the BRIC (Brazil, Russia, India, China,) countries.
Ethiopia, Tanzania, Mozambique and Namibia are recognized as future economic growth drivers in the African region while Sudan, DRC, Angola and Nigeria are also stepping up trade and investment activities, creating long-term prospects for logistics and supply chain management services across Africa.
The 2012 African supplychainforesight survey report shows that China allocates up to 33 per cent of its total outbound investments for Africa on infrastructure development. Other Chinese investment flows involve the mining sector (40.74 per cent), business services (21.58 per cent) and finance (16.4 per cent).
"We see the above trends in favour of both the African and Middle East logistics sector, where the GCC serves as a hub. Our immediate plans therefore are to offer reliable logistics and freight forwarding solutions to GCC companies doing business with Africa and the Middle East," concluded Courtney.
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About Barloworld Logistics:
Over 70 per cent of potential savings and service enhancements in a supply chain come from the re-engineering and integration of logistics processes. Only small savings can be extracted by "pushing" suppliers harder.
The logistics division was established in 2001 and is now South Africa's leading integrated logistics player. Barloworld Logistics creates strategic advantage for their clients by optimizing and integrating the client's logistics processes and information flows, thereby radically reducing their costs and increasing their service levels. The company now has 2,300 staff across 87 offices. The integrated logistics solution offerings include supply chain consulting and design, inventory management solutions, transportation management services, warehousing and distribution design and management, freight forwarding and clearing and supply chain software and planning.
For more information about Barloworld Logistics, please log on to: www.barloworld-logistics.com or www.supplychainforesight.com
For further information, please contact:
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© Press Release 2012
