Authorities have underscored the importance of putting in place effective transport management systems in a bid to reduce operation costs for business operators.
Principal Secretary in the Ministry of Trade and Industry-Francis Zhuwao- made the sentiments at the launch of Fastex Logistics and Courier-a company that deals with courier and first of its kind for Malawi-Freight Exchange management system.
Chief Executive Officer for Fastex-Patrick Chatangwa told MIJ Online that the services aim at addressing Challenges transporters and businesses face when moving goods which has led to increased operations cost.
“The transporters’ main challenge is to come back from a trip without a load, and this is what causes the rate that they charge a client to be higher because they charge in anticipation that they will not have a backhaul or return load.” He said
According to Chatangwa, the high cost of transportation is also impacting on consumer prices as businesses pass the cost to consumers.
“The Backhauling Management System will reduce number of empty journeys as we allow transporters to advertise or announce their empty tracks in advance and we match them with companies or individuals needing transportation services, in such a way the transporter is making extra revenue from return loads.” Explained Chatangwa
Meanwhile Francis Zhuwao-Principle Secretary in the Ministry of Industry and Trade, responsible for SMEs and Cooperatives- has described the backhauling management system as crucial in improvement of the country’s exports as businesses will now utilise opportunities of trucks that come into the country.
“This is a very good initiative coming from the private sector at a time there are transport challenges in Malawi due to information gap, so this is a good move that Fastex has taken.
This will also assist the country in the generation of forex because we have tracks coming into the country with imports from South Africa and other countries but they go back empty. So, the information system will assist in linking up local businesses looking for transport for their exports. Said Zhuwao.
On his part, Darius Mayuni-Programs Manager for Portland Cement described transportation costs as a key contributor to operations cost as companies are spending more on both inbound and outbound logistics.
“We import a lot of clinker which is a key ingredient in our cement manufacturing from outside the country and transporters do charge costs for bringing the load and even the return trip so the costs are always on the high side.
So we are hoping that the return load management system will assist us to share the cost for return journeys.