THE SAME NAMES keep cropping up in South Africa’s young fleet management industry. Some of those management groups have long been setting the pace while others only really came to the fore over the past five years.
Fleet Africa, of Super Group, the large listed transport group in Johannesburg, is one of those that set the pace in SA’s fleet management industry. After it made its name in its first big contract (the well-known Blue Ribbon Bakeries) and then took over the SA Post Office fleet with great success there was no holding it back. Especially after it clinched one of SA’s biggest contracts, with the Johannesburg City Council in February 2001, it developed into one of the biggest in the country.
Over the past six years, Fleet Africa has also signed fleet management contracts with the Department of Transport, the Eastern Cape provincial administration and several smaller contracts. GM SA’s service and maintenance contract for all its Isuzu LDVs in June 2005 was one of its recent breakthroughs.
Imperial Fleet Services, part of the listed Imperial group, is also known throughout SA. Some of its well-known contracts are the management of Albany’s huge vehicle fleet (clinched in 1995), Nedbank’s Group scheme (since 2003) and several others. It also has major interests in Namibia, Swaziland, Botswana and Lesotho.
DaimlerChrysler, a controlling shareholder in private company debis Fleet Management (another Gauteng group) is also pleased with the growth of this fleet management company, which will be 10 years old in November 2008 but already one of the big guns.
This fleet manager also provides innovative solutions to a wide range of clients, including the municipality of Bela-Bela (Warmbaths), Kungwini municipality (which includes Bronkhorstspruit, Bronberg and Ekangala) and Canon SA.
However, it’s actually the development of Pretoria’s DigiCore group (listed in 1998) that reflects the growing popularity of outsourced fleet management in SA. This company, which develops, manufactures and provides quality service and management solutions to SA’s transport industry, surprises every year with its good results.
When announcing its latest financial results for the six months to end-December 2006 a few weeks ago, CEO Nick Vlok again spoke of the strong and ongoing growth of all its markets. He referred specifically to the outstanding performance of DigiCore Fleet Management, a private company within the group, which made a sound contribution to group turnover growth of 31% (to R190m) and profit growth of 41% (to R50,4m).
DigiCore Fleet Management MD Mark Rousseau says that the fleet management division is faring excellently, growing by more than 35% over the past year. Large fleet management contracts with Government institutions and a well-known transport company, which are at an advanced stage of negotiation, could increase the company’s turnover further.
Keep an eye on its progress in SA and in its various overseas markets.
Strong and ongoing growth of its market.