Executive Summary

The South African (RSA) Transport and Logistics market which is worth over USD $19.92 Billion is in need of investment. Port infrastructure, railway grid, national roads are under pressure to provide: medical, foodstuffs, fuel among others to an increasing population of over 60 million South Africans. South African GDP is estimated at over ZAR 7.356 Trillion / USD 398 Billion. The third (3rd) largest country's GDP in Africa. 80% - 85% of goods are transported by road from where they are produced to their final destination where they are needed. South Africans have lost hope in the inefficient Rail network, that almost always causes delays to bring goods on time. Air transport is the most expensive way to bring cargo to final consumers. This places pressure on Road transport. To make an already bad situation worse, there has been a shortage of Trucks and trailers that needs to bring goods and services to end users. Leading to overloading of the existing trucks causing road accidents. There is a dire market need for new entrants into the South African road transport sector. Huge opportunities exist for: (Mining, Agriculture,Retail, Fuel and Petroleum, Grain, Container) Transportation. I am seeking funding for a minimum amount of USD $290 0000 to buy a minimum of 3 trucks and trailers. The funds will be repaid in 60 months. Business highlights: Year 1 : 3 Trucks & 5 Trailers Year 2 : 5 Trucks & 7 Trailers Year 3 : 7 Trucks & 9 Trailers Year 4 : 7 Trucks & 10 Trailers Victor Omphile Mphafe is the Founder / CEO. He has a Bachelor of Business Administration degree. He also has professional qualifications namely: Small Business Consultancy, Fundamentals of Project Management and several short courses and training he received during his professional work career. Victor brings in over a decade and a half (15 years) in Trade Commerce and Industry. He has worked in Banking, Finanacial servicesand Transport and logistics. He has close to a decade experience leading teams, managing peopleand executingorganisational strategies in the Sales and Operations departments of mid sized organisations. Initial Staff compliment will include qualified and competent truck drivers (three), and a part time mechanic who also can drive trucks. The following roles will be outsourced: 24 Hour Roadside Assist, Bookkeeping and Accounting, Legal Services as well as the Human Resource Function I am seeking funding for a minimum amount of USD $290 0000 to buy a minimum of 3 trucks and trailers. The funds will be repaid in 60 months. Business projected to hit these highlights: Year 1 : 3 Trucks & 5 Trailers Year 2 : 5 Trucks & 7 Trailers Year 3 : 7 Trucks & 9 Trailers Year 4 : 7 Trucks & 10 Trailers Year 5 : 7 Trucks & 10 Trailers The business is projected to make the following Revenue Per Year: Year 1 Sales: USD $901 953 Year 2 Sales: USD $1, 475 928 Year 3 Sales:USD $2, 049 900 Year 4 Sales:USD $2, 104 564 Year 5 Sales:USD $2, 104 564 1. THE PROBLEM The 19.92 Billion Dollar South African logistics, freight and transport sector is struggling to meet the needs of the South African public. The massive population explosion to 60 million people has put pressure on transport infrastructure. This includes rolling stock, locomotives,commuter trains, goods trains, port infrastructure and road maintenance. Exporters of steel have complained as their shipments were being delayed by rail and at seaports, due to these delays, companies started using road freight to move goods within the country and to deal with imports and exports landed at major ports. Placing heavy demand on the road network. About 80% to 85% of all freight is now carried by road. This has created the following problems: There’s shortage of Trucks and Trailers to transport goods. This leads to Rampant overloading of trucks to meet rising demands. Unroadworthy trucks are now on our roads and there are rising incidents of road accidents caused by unroadworthy trucks. Driver fatigue is now a dangerous health hazard to the 12,000 drivers on South African roads. Goods are not delivered on time to the customer. The Net effect of all this has created an Inflation of up to 27% for necessities (fuel, and foodstuffs) hurting poor households the most! 2. THE SOLUTION The market is ripe and HUGE enough [population explosion to 60 million people and valued at 19.92 Billion Dollars]. There is a limited window of opportunity for 2 or 3 major road transport companies to enter this space and revive this sector. I am entering this market with a fleet size of 3 Pre-Owned Trucks and trailers. 3. MARKET POTENTIAL We seek top enter the lucrative South African logistics market (19.92 Billion (Mining, Agriculture, Retail, Tanker, Grain, Container) Transportation. To penetrate the market with a fleet size of 3 Trucks. To choose the 34-ton Flat Deck super links for long haulage Cross border loading general goods, project cargo (construction, earthmoving and mining machinery from South African ports inland into SACU, SADC and rest of Africa). Most transporters are not fully exploiting this export and import opportunity due to several reasons. Market Size This business plan is based on the GDP of South African economy. It is the 3rd largest economy in Africa after Nigeria and Egypt. Current population size is 60 Million plus. The size of the economy (nominal GDP) is over ZAR 7.356 Trillion / USD 398 Billion. The South African Johannesburg Stock Exchange has a lot of listed companies in : Mining, Construction, Manufacturing, Agriculture, Services and Retail Sectors. There are lots of Importers and Exporters in South African coupled by a very strong production driven private sector. Total market for South African logistics and freight has been estimated to be approximately USD 19.92 Billion annually (2023). Target Market Niche market identified is : Mines Retail Chain Stores Agricultural / Farming Community Manufacturers & Importers Freight Forwarding Companies Projected Market Share The size of the economy is estimated at over ZAR 7.356 Trillion / USD 398 Billion. The South African Johannesburg Stock Exchange has a lot of listed companies in : Mining, Construction, Manufacturing, Agriculture, Services and Retail Sectors. There are lots of Importers and Exporters in South African coupled by a very strong production driven private sector. Due to the existence of this large market, it is indeterminate to estimate in absolute terms the market share of the company. Total market potential has been estimated to be approximately USD 19.92 Billion annually (2023). It is estimated to grow at a Cumulative Annual Growth Rate of 5.92%.By 2029 the Market Value will be USD 28 Billion. Entering this huge market with 3 trucks is not even scratching the surface. Putting this in context if my company makes USD 901,953 a year.Estimated market share for my business therefore is-: 901 953 / 19 920 000 000 000 x 100% … This is a drop in the ocean. This is a clear indication of Market Potential as there are unique opportunities in this sector. Competitors and their Market Share The main market players are: Imperial Logistics Unitrans Cargo2Go Cargo 2 Congo There are also companies operating own fleet as a risk mitigation measure. In the petroleum space. Shell Engen BP In the retail and Fast-Moving Consumer Products (FMCP) space. Woolworths Pick n Pay. Ackerman’s Clover Coca-Cola SAB Miller South African freight and logistics is broad and cannot be properly discussed in a brief business plan. The main point is that it is a huge market with almost no barriers to entry if you have a truck! & opportunities are Limitless!!! Competitive Advantage A 5-year transport contract will be in place if the trucks are bought from reputable blue chip Truck dealerships that also have long termtransport routes into SACU, SADC and rest of Africa. I have a transport and logistics mentor with over 31 years track record in this market. Prior skills and knowledge running a trucking business for 5 years learning invaluable lessons. There are unlimited number of PROFITABLE Loads to pick and many routes to choose from (short distances or long haul whichever can bring more returns) Management team with a clear understanding of transport and logistics 3 Truck Drivers with 10 years + in the trenches in the South African transport and logistics space Have identified a neglected market niche (in the niche sectors above) and have positioned the company to enter with a minimalistic capital investment(choosing Pre-Owned Trucks & Trailers which works just like New Trucks to cut costs) Product Strategy There is a need to transport goods from where they are made to the ultimate final consumer and a reliable transporter is required. Our aim is to reliably transport goods to their intended destination. Promotion Strategy The company will adopt the following strategies to increase its clientele base: 100% of on time deliveries every time. To earn the preferred transporter tag  Branded trucks and trailers  Networking with successful truckers Pricing Strategy The company has the following price list:  Only accept profitable trucking contracts  Aim to get return loads to maximize on fuel saving by always carrying cargo.  Negotiate contract terms that includes price adjustments. At all times the company ensures that it makes at least 50% profit per single trip. Distribution/Place Strategy The company makes direct distribution to the client’s destination of choice.