Managing Director, Clinton Holcroft said the company had outgrown its existing premises in Johannesburg and the new facility will increase yard space to more than 50,000m2 allowing them to take on more work and improve repair turnaround times. "Construction at the new factory situated in Boksburg near Carnival City will be completed in December and we plan to start the move during January."
Holcroft said the extension and upgrade of its Durban operation in Phoenix Industrial Park would start around March and is expected to be completed by the later part of 2014. The under roof area will increase by more than 3000m2 and result in improvements to operating efficiencies.
'The extensions to our Durban factory will accommodate a new leading edge technology panel press and cater for an increase in manufacturing capacity.
Turning to this year's performance, he said there had been steady growth overall in volumes over last year. "The first half years orders were up 23% on the corresponding period last year. The second half, however, has been more subdued and is slightly lower than previous. This is largely due to retailers cutting back on replacement trailers due to tight consumer spending. Increasing diesel costs and the weakening rand have also caused some transporters to taper off on new vehicle replacements."
We have however, seen a significant increase in the refurbishing and rebuilding of refrigerated trailer bodies in an effort to replace ageing vehicles with a limited budget.
Holcroft said he anticipated 2014 would see steady growth on this year's figures. With the average age of fleets increasing as well as rising diesel costs, there is a need to replace older truck bodies and trailers with new lighter models which will reduce fuel and maintenance costs. "I am optimistic there are opportunities for real growth next year - certainly there appears to be positive upside over this year which has been fair to good."
"We believe that aerodynamics has an important role to play in saving long distance transporters on fuel costs and reducing carbon emissions. With this in mind we have introduced the option of a new roof diffuser and side skirts for our trailers." Recent road tests done in co-operation with SPAR and Mix Telematics have shown impressive fuel savings of at least 2.5% in normal operational conditions. This is significant considering the high impact of fuel costs for transporters.
"These innovative developments and our new equipment and factory extensions planned for 2014 will introduce exciting growth opportunities for Serco and are an indication of our confidence in the South African market."
