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Getting your chemicals from A to… BEE September 18, 2018 |

Safety-over-all has always been the rallying cry for chemicals transport – but this is no longer true.

Of course safety is still a non-negotiable, but it’s not the ‘be all and end all’ when it comes to choosing a chemicals transporter.

A decade ago transport contracts in the chemical industry were awarded on SHEQ status and price. Cursory consideration was given to track record. Then along came Broad-Based Black Economic Empowerment (BEE) and those transporters with a level-4 score or better remained in contention.

Trickle down BEE

With the new BEE regulations rewarding chemical companies based on the ownership status of their service providers, it has been difficult for those that dominated the industry to find buyers with R10bn+ to take up the 51% of equity that would allow their customers to claim precious ownership points. And chemical companies couldn’t risk SHEQ non-compliance. For a while there was a stalemate.

In the end the quest for competitive advantage produced new and improved transport options. New entrants to the market got the ownership and SHEQ issues sorted out. But, when demand came knocking, they didn’t have the balance sheet to stay the course.

Fortunately, JSE-listed company, Cargo Carriers has risen to the challenge placed on the industry. They have remedied their shareholding shortcomings and are now a 53% black-owned, level 2 BEE contributor.

Knowing that customers will be well rewarded by contracting a low-risk, high-SHEQ transporter that is black-owned, the company is poised for growth. Both experience and a strong balance sheet are obvious assets for chemicals companies looking for a long-term partner.

Of course the issue of BEE remains an important one. Failing to get as high a BEE rating as possible, is to fail to put your company’s best foot forward. The risk of missed business opportunities due to a low BEE score is increasingly real. Don’t let your choice of transporter become a liability.

The immediate benefits of choosing Cargo Carriers

  • A probable boost to your BEE score on the basis of using a black-owned service provider
  • The experience, reliability and scalability that comes with using a long established
    transporter in the chemicals industry.

The immediate benefits of each of these characteristics are obvious. What is not obvious is what awaits beyond your decision to trust Cargo Carriers with your chemical transportation needs. This is something that money can seldom buy. But in this case it can. It’s peace of mind.

Contact us if you want a report on the BBBEE and the black-ownership levels of major chemical transporters.

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