According to a recent report by Statistics South Africa, there’s been a 13,7% and a 0,4% rise in the real value of buildings completed and plans passed respectively between January and September 2006 and the same period in 2007.In addition to this, the state’s R416 billion infrastructure plan, and the full effect of the country’s construction boom can be felt.

Furthermore, the same is factual for the cement industry, which experienced a demand increase of 13% in the first half of 2007. This figure also includes demand from SA as well as its neighbours, according to the Cement and Concrete Institute. The increase is a reflection of demand over the past years and the industry is confident of a continuation of this upward curve.

Still, leading listed transport and specialised logistics company Cargo Carriers is well positioned in the industry, has consequently been showing great success in its cement logistics operations in the past year. Not only was its longstanding contract with industry heavyweight Afrisam (formerly Holcim Cement) extended by three years, but it has also been successful in securing some work from Ash Resources, a key player in SA’s cementitious supplies sector.

Rudolph Verster, General Manager of the Steel & Powders Business Unit of Cargo Carriers’ Chemical, Fuel and Steel Division, explains: “Our new cement contracts in our Powders Business Unit were concluded mainly due to our good service levels and competitive pricing. Through these contracts we are active in regions where construction is booming. This has taken us into areas is SA like Bloemfontein, Richards Bay and Sasolburg, and across the borders into Swaziland and other SADC Countries.”

Additionally, with years of consistent economic growth and wealth creation in the country, SA’s urban landscape is developing rapidly. Some of SA’s most impressively expanding cities are those Cargo Carriers is now operating in. In terms of Bloemfontein, for example, the residential sector is blossoming with intense residential construction leading infrastructural development.

The city, focusing on growing its tourism appeal, has also just completed the third and final phase of its waterfront complex development. The situation across the border in Swaziland is slightly different. While the new Sikhupe International Airport approximately 50 kilometres outside Manzini is underway, and construction on the country’s biggest resort complex, Royal Jozini, has recently begun, the Kingdom’s transportation infrastructure remains limited.

Elsewhere in the Southern African region the transportation situation also demands creative road-bound responses. Verster reports: “There is no railway running across Lesotho, and J&G Transport, a 100% owned subsidiary of Cargo Carriers based in Maseru, Lesotho, is therefore responsible for moving cement, mostly for domestic consumption, from the railway siding in Maseru to destinations throughout the country. We have grown the number of trucks employed on this route over the last few years.”

With construction and related companies causing a buzz amongst JSE analysts, and increased foreign investment in SA’s cement industry, Cargo Carriers is set for growth alongside its business partners in the industry.