Cargo Carriers has launched into 2019 from a significantly stronger position to embark on its next growth trajectory.
In 2018, Cargo Carriers Holdings took a strategic decision to acquire all of the remaining issued ordinary share capital of Cargo Carriers. This culminated in the delisting of the company on the Johannesburg Stock Exchange in January 2019.
There were a number of key motivators for delisting.
First and foremost, this development will provide Cargo Carriers with the flexibility it needs to enhance existing sustainable broad-based black economic empowerment (B-BBEE) ownership structures which already exist in the group. Our customers and supply-chain partners have always appreciated Cargo Carriers’ unwavering commitment to transformation, understanding that this transformation is more than just a requirement for doing business in our country.
It is an absolute imperative in an industry that has generally been slow to change and where the ownership of many large hauliers does not represent the demographics of the country. This is despite the laudable steps taken by some of South Africa’s foremost transport logistics companies to drive meaningful transformation in their businesses.
Cargo Carriers’ Level 2 B-BBEE rating, which I consider to be one of the major milestones during my year-long tenure as chief executive officer of Cargo Carriers, attests to this unwavering dedication to ensuring growth that is distributed fairly across society and that creates many opportunities for all South Africans. The company currently boasts as much as a 53,06% black and 12,55% black-women ownership. We remain committed to a sustainable and meaningful ownership structure and look forward to disclosing further details regarding our transformation drive in due course.
Strategically, as a private company, Cargo Carriers is also no longer obliged to disclose tactical decisions publicly until such time that we are ready to do so. This will ensure that we safeguard our competitive edge in an increasingly saturated road haulage industry. While many of our key markets have stabilised, we need to remain vigilant.
Our customers operating in various key industrial segments of the economy are well aware of our ongoing focus on innovating road haulage. This has ensured that we remain the first point of contact for cutting-edge road transport and logistics solutions. Customers can therefore be assured that we will continue to benchmark and implement positive changes to constantly improve on our performance.
Moreover, Cargo Carriers will enjoy cost and management time saving from our delisting. As an example of this, as a private company, we are no longer required to publish an integrated annual report.
However, I need to emphasise that Cargo Carriers will never compromise on its Corporate Governance obligations and the reconstituted board will also soon make decisions on governance structures.
Importantly, Cargo Carriers remains committed to Safety, Health, Quality and the Environment (SHEQ), a strategic pillar of our state-of-the-art transport logistics solution to leading participants operating in highly-regulated industries. Our commitment to SHEQ, combined with a robust B-BBEE status, has provided Cargo Carriers with a strategic competitive edge as a transporter of chemicals, gas, steel, powders and fuel, complemented by our leading agricultural and supply-chain solutions.
The company’s strong family values that have been maintained from inception and throughout the period that we were a publicly-listed company will remain firmly in place. This is demonstrated by Cargo Carriers’ ongoing commitment to our loyal employees, customers and supply-chain partners.
The restructured board comprises Mr. Nelson Mwale (Chairman), Mr. Solly Letsoalo (CEO), Mr. Garth Bolton, Mr. Murray Bolton, Ms. Beverley Fraser, Ms. Pamela Mogotlane and Mr Pieter Rörich (Alternate). I am confident that the new board has the skills, expertise and experience to steer this strong, viable and cash positive business into the future.
Lastly, we would like to advise that Mr Junaid Kriel (CFO) has resigned to join his family in Cape Town, thus we are recruiting for a replacement Chief Financial Officer. We have engaged the services of FD Centre until such time a new CFO commences.