SOUTH STAR, UNITRANS MERGING

MBABANE – Is South Star buying Unitrans Swaziland?

This is the question that has been on the lips of a lot of Swazis along the country’s corridors; those in the corporate sector, employees of the two companies, international world and job seekers.
However, both companies have come out to clear the air by stating that even though there is a E260 million value transaction that is on the cards between the two companies, it is not a sale but a merger that will give birth to a new company, purported to trade under the name Southern Star Logistics.

The directors of South Star are Wayne Lavendale and Nkhanyeti Ngwenya.
The two business gurus used to be part of the successful entities, namely Mr Bread and Swaziland United Bakeries (SUB), which were sold to Premier Foods.
It was reported last year that the business was operating a fleet of 26 trucks.

At least 14 of the trucks are new and were purchased solely to transport fuel around and outside Swaziland. However, and presently, the company has over 150 vehicles.
The company recently won a contract to transport fuel on behalf of Puma Swaziland, a supplier that operates over 25 filling stations in various parts of the country.
Lavendale confirmed to the Times SUNDAY that the transaction would be a 50/50 joint venture company between South Star and Unitrans.

He pointed out that the core business was specialised logistics (petroleum, chemicals, ethanol, gas, agriculture, dry bulk and commodities such as coal and grain).
“We have a fleet of over 150 vehicles. This company will manage and operate all our local assets and contracts. Approximated investment value is E260 million. The new venture will result in a locally owned and operated entity that has the capabilities to compete for work in the region. We will haul freight to and from Swaziland with trips as far as the Democratic Republic of Congo (DRC),” Lavendale said.

Opportunities

He also highlighted that the initiative will uncover a lot of opportunities both locally and regionally. He pin-pointed that locally they will also service the mining industry, construction and inbound logistics which have been mostly done by foreign transport operators. Meanwhile, regionally, the focus will be on specialised logistics and long-haul freight.
Lavendale went on to outline the aims of the partnership.

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