13.3 C
London
Tuesday, September 19, 2023
HomeWorld NewsMauritian company buys out Rongai transport firm

Mauritian company buys out Rongai transport firm

Date:

Related stories

Macro Briefing: 29 August 2023

* US and China agree to take steps...

Global Markets Rally, Posting First Weekly Gain In A Month

After three straight weekly declines, the Global Market...

Macro Briefing: 28 August 2023

* Inflation “remains too high,” says Fed Chairman...

In search of a new economic playbook

Chinese corporate earnings reports this week are forecast...

FirstFT: Western companies sound alarm over China’s sluggish recovery

Receive free Global Economy updatesWe’ll send you a...
spot_imgspot_img


Companies

Mauritian company buys out Rongai transport firm


BDRONGAI0504A

Rongai Workshop and Transport Limited Managing Director Vanessa Evans during the interview at her Rongai, Nakuru office. FILE PHOTO | NMG

Mauritian conglomerate Rogers Group has acquired Rongai Workshop & Transport Limited through one of its subsidiaries Velogic Logistics as part of its regional expansion strategy.

The multinational did not disclose the value of the transaction which has seen the exit of the Vanessa Evans family which founded the logistics firm in Rongai in 1947.

“In this context, the group’s international development strategy is particularly relevant, with the recent acquisition of Rongai Workshop & Transport Ltd in Kenya, a buoyant market for the logistics sector,” Rogers said in a statement.

Read: Rail transport regaining its allure on sustainability drive

“This acquisition will allow Velogic, a subsidiary of Rogers, to strengthen its presence on the African continent, while benefiting from the growth prospects of this buoyant market.”

The multinational said the buyout will strengthen the market position of its logistics subsidiary Velogic which has been present in Kenya since 2016.

Rongai Workshop & Transport is the second-largest road transport company in terms of regional destinations served, the multinational said.

The trucking firm has tea companies among its top clients and runs a fleet of 160 vehicles besides employing 270 people. It reported sales equivalent to Sh220 million in the quarter that ended in December 2022.

“Synergies with Rongai will allow Velogic … to offer a greater range of logistics services, as well as expand its customer base and transport network in this region of the African continent,” Rogers said.

Other major trucking firms in the country include Anwarali and Brothers, Bollore Logistics, Acceler Global Logistics, Siginon Group and DHL.

The top logistics firms own hundreds of trucks, with a few running fleets of more than 1,000 trucks.

Kenya is a major transport hub, offering an import and export link from the Port of Mombasa to the regional market. Some of the destinations for local trucking companies include Kampala, Kigali, Bujumbura, Goma and Juba.

The start of cargo operations by the standard gauge railway (SGR) in 2018 took away substantial business from truckers, with the government forcing importers and exports to use the rail service for a period of time.

This led to a reduction in rates charged by truckers, with some of the heavily indebted companies closing shops. New registration of heavy commercial trucks in Kenya fell 21.3 percent to 1,639 units in 2019 from 2,083 units the previous year according to official statistics. They rebounded to 2,382 units in 2020 but still trailed the peak of 2,829 units recorded in 2016.

Read: Loans to transport firms grow at record pace on travel recovery

Road transport however remains a major means of delivering goods, including to wholesalers and retailers.

Economic growth in the East African market is projected to increase significantly over the medium to long term, creating demand for truckers as the volume of exports and imports grow.

[email protected]



Source link

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

spot_img

LEAVE A REPLY

Please enter your comment!
Please enter your name here