TITAN CARGO: Faster, Better, Cost Effective Supply Chain Solutions

“Titan Cargo has evolved into a logistics brand that is associated with innovation, agility, and high-quality tailor-made integrated logistics services for blue-chip customers,” says MD Sugan Naidoo, speaking about the Cape Town-based company positioning itself as a leader in the African logistics space.

Established in 2007, with 350 people, almost 400 vehicles, and almost 200,000 m² of A-grade FMCG warehouse space, the company that claims ‘extraordinary’ has a base for its confidence.

Many argue they are great; lots suggest that they are the best. Most overpromise and under deliver. Few go as far as self-proclaiming ‘extraordinary’, but Titan Cargo uses the tagline “doing ordinary things in an extraordinary way”. Asked about what sets the company apart from the hundreds of others that navigate South Africa’s road network, Naidoo explains that a highly competent and ambitious team combined with full scale integration is a differentiator.

“Our uniqueness lies in our integrated logistics capabilities where we operate a national footprint of modern warehouses, complimented by a modern fleet of linehaul, managed fleet, import and export, primary and secondary distribution trucks for listed companies.

“Our competitive advantage is our people, with a can-do attitude and a positive mindset that underpins our agile and customer-responsive organisational culture.”

The proof is in the trailer. Big brands trust Titan. Heineken Beverages SA, Distell Ltd, Rhodes Food Group, Kimberley-Clark, Freddy Hirsch, Simba-Pepsico, Huawei, Maersk, DSV, Ford, Rhenus Logistics, Aquelle, Huawei and Tongaat Hullett all utilise the company’s portfolio, handling containerised cargo at ports before road and railing product to distribution centres across the region.

A company passionate about transformation and upliftment, Titan Cargo is Level 1 BBBEE rated, 100% black and 50% woman owned. Partnering with big-name clients and investing internally, the company has reached R400m turnover, with no plans to brake anytime soon.

DURBAN EXPANSION  

In KZN, Titan is busy investing in new, additional warehouse space at the Port of Durban in an effort to reduce congestion on site. This new site will allow for streamlined operations where containers come in, are unpacked, and loaded onto rail or truck for haulage around South Africa and beyond. The demand, says Naidoo, comes from clients.

“We are investing in new warehouse space in Durban for our strategic FMCG customers who need back-of-port warehouse space for de-stuffing of imported containers, warehouse storage and distribution. This is part of Titan Cargo’s strategy to invest in back-of-port warehouse facilities that use rail and also alleviate port bottlenecks.”

Reports suggest that congestion in Durban costs the local economy R1 billion annually. Many solutions have been tabled – including road bypasses, container barges, private management of infrastructure, restrictions on transporters etc – but none solve a short-term problem for those struggling to get goods through the largest container port in Africa.

Titan Cargo has recognised the challenge and is taking action.

In Cape Town, a similar problem is being met with a similar solution as the company invests in its Titan Cargo Belcon Warehouse (TBW), something of which Naidoo is particularly proud.

“The TBW is a unique back-of-port FMCG multi-modal consolidation hub that provides seamless and efficient access in and out of the port of Cape Town, through tried and trusted rail services from Belcon, as well as providing for road and rail multi-modal integration.”

94,000 m² of A-grade FMCG multi-principled, multi-product warehouse space is a positive step in the reduction of congestion at the Port of Cape Town as well as promoting reductions in carbon footprints.

“A single train carrying 100 containers from the TBW into the Port of Cape Town will remove 100 road trucks. This TBW warehouse is a gamechanger for road to rail initiatives in the Western Cape and in particular the City of Cape Town. Phase 1 of the TBW warehouse is already operational with over 50,000 m² allocated to road-to-rail FMCG customers. Phase 2 is for a further 45 000 m² that is currently being upgraded in an A-grade FMCG consolidation hub, and this will be ready for further road-to-rail migration into and out of the Port of Cape Town by September 2023,” Naidoo furthers.

ROAD-TO-RAIL

The strategy of moving freight from road to rail goes back more than 10 years in South Africa. Key goals in this strategy are social upliftment, infrastructure and efficiency improvement, and mitigating greenhouse gas emissions. Officially, the process is headed by Transnet but the private sector is actively encouraged and engaged.

Titan Cargo takes environmental commitments seriously and is an active participant in the drive to get more freight onto tracks and off the highways, and especially out of the city centres.

“Titan Cargo has already embraced the road-to-rail strategy of Transnet, and has therefore already migrated over 1500 containers per month from road to rail, utilising the Transnet Belcon Container Terminal into and out of the Port of Cape Town,” highlights Naidoo. “Titan Cargo is a strong supporter of public-private partnerships and believes that the private and public sector can achieve great accomplishments by working together and leveraging each other’s strengths.”

Even when the company is forced to move goods through the metros surrounding busy ports, it has taken the decision to invest in the latest vehicles – with modern technology – to ensure minimal air pollution and maximum efficiency.

“We have already implemented a strategic decision to be climate friendly and to make a positive contribution to protect our climate for generations to come,” confirms Naidoo. “We have implemented green technologies for all our warehouse machinery and we have implemented a fleet renewal program that has already given us great results through having fuel-efficient latest-generation trucks. Additionally, we are exploring solar and battery energy at all our warehouses. Our flagship Intermodal solutions tick the box for sustainability for us and our clients, removing hundreds of trucks and replacing it with singular train units.”

The national warehouse footprint of the company has allowed for the large fleet to be catered for carefully. Daily technical inspections from a team of experts ensure client cargos remain safe and secure while in transit. The company also enjoys the support of OEMs when it comes to fleet maintenance and upkeep to keep trucks and trailers in top operating condition.

“Importantly,” adds Naidoo, “our highly skilled and loyal drivers protect the longevity and condition of our fleet. We have created a culture wherein our people consider Titan Cargo as their own and this forms a large part of our competitive advantage.”

In the future, ongoing development and growth of the fleet is already planned. Renewal and acquisition will happen in line with growing demand from clients.

“These programs are continuously adding to the much-needed future transportation capacity that Titan Cargo needs,” explains Naidoo. “We are investing in new fleet capacity ahead of demand so that as our customers grow, we are able to meet their new capacity demands. Our fleet programs are very progressive and aggressive.”

Again, the strategy has been verified in the faith that clients have shown in Titan. Powerful growth has been achieved, moving from two customers just a few years ago to more than 20 blue-chip customers today. The fleet boomed from 20 to 200, and team grew from 15 to 350 people in the same period of time. “Our growth is testament to the fact that our service offering is extraordinary, and the market is receiving this well,” says Naidoo.

OVERCOMING THE BUMPS

Growing a sizeable organisation in South Africa has not been easy recently. Success in business is never simple, but when added economic pressures and global Covid shutdowns are added to the mix, you get an extraordinarily tough environment. Several additional factors also come into play when considering growth and sustainability, but Titan Cargo has used all the experience from within its team and the communities in which it operates to develop a company that adds real value.

“Titan Cargo’s key strategy to mitigate against economic shocks is to rapidly scale up its existing warehousing and transport business, as well as on-board more blue-chip customers. Additionally, Titan Cargo has over the years developed a very flexible model of operating warehouses efficiently for flex-up and flex-down demands and this is what helped us to thrive and grow during the worst economic shocks of the past,” details Naidoo on the company’s vast experience.

He takes the choice of optimism amid a myriad of negative factors and, importantly, is well-prepared for challenging conditions.

“We are concerned about the ongoing energy challenges in South Africa. However, Titan Cargo has taken an approach of contributing and implementing energy solutions as opposed to complaining. Titan Cargo firmly believes that if all of us come together and assist the South African government, we will make a positive influence in alleviating the energy challenges we are faced with, and leave future generations with a vibrant and growing economy.

“The availability of skilled logistics people is always a challenge,” he adds. “However, our solid market reputation has assisted us greatly in attracting the right people. We also recruit from the communities within which we operate in, as local community upliftment is one of our sustainability strategies. We hire for attitude and personality and we train for skills.”

He highlights the company’s agility and nimble approach as key in remaining in pole position in around the country’s ports, saying that challenges have presented opportunities. As clients have been faced with true difficulty, Titan has been able to display strength – not unnoticed by the rest of the industry, demonstrated by its growing number of blue-chip clients.

TOP GEAR?

As the company cruises into top gear, beating rivals on price, efficiency, and results, ambition has not diminished. There is no plan for consolidation or slowdown. According to Naidoo, growth remains the driver of everything the company does.

“We are currently exploring warehouse collaborations in Southern African Development Community (SADC) countries as well as in the Indian Ocean Islands. There are definitely opportunities in SADC and Indian Ocean Islands for A-grade FMCG warehouses that are highly integrated with road transport for route to market capabilities.

“Our brand has become synonymous with giving blue-chip customers competitive advantage in their route to market strategies. Our uniqueness lies in our simplicity.”

Clearly, Titan’s approach of doing ordinary things in an extraordinary way is paying off. Every seemingly unnecessary task, basic process, or simple action as grouped into a larger structure and reinforced with quality. But this extraordinary ability and delivery is only capable with great people, and Naidoo pays tribute to Titan’s unique human resource.

“We intentionally protect our nimble-footed flat organizational structure, openly encourage and reward innovation and creativity so that we adapt quickly to market changes and are able to respond rapidly and flexibly to customer needs.

“We have created an empowering environment where our people thrive, are passionate and want to solve customer challenges. This we believe is our competitive advantage,” he concludes. “We do what we say and deliver what we promise, consistently and with appreciation for our customers.”