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Cargo Carriers shines in the Eastern Cape

Cargo Carriers has announced that it is having its best new business year for 20 years through securing contracts including a 50-50 equity deal with Caltex Eastern Cape Marketer (CECM) to establish a new transportation business aptly named Khanya Carriers ('khanya' means 'to shine') for the distribution of Caltex fuels and lubricants into the rural Eastern Cape.

CECM, established in 2005, after concluding a deal with Chevron, for the transport and distribution of all Caltex fuels and lubricants throughout the rural Eastern Cape, initially relied on existing Chevron transporters for its distribution, as well as third party service providers.

Having increased its footprint and number of service stations to 46 in and around the Eastern Cape and other factors, it opted to redefine the way it distributed fuel and lubricants. It wanted more control over the transportation function, and needed to find a partner with the highest SHEQ standards, fuel experience as well as reliability, and as importantly in these uncertain times, a strong balance sheet.

Wanted - a partnership

"We did not want to simply contract out our last mile distribution; we wanted to form a partnership with a company who would be with us for the long haul, and would be committed to achieving long term growth," said CECM director, Clive Berlyn.

With its extensive network, more than 50 years experience in the transport industry and impressive SHEQ and B-BBEE scores Cargo Carriers was identified as the ideal candidate.

"Negotiations led to the signing of a 50-50 equity deal, and Khanya Carriers was born. Management of the new company falls under the control of Cargo Carriers, and operations currently include the use of eight dedicated bulk tankers to service the area," said Cargo Carriers COO, Johan Kruger.

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