Page 33 - Logistics News - March_April 2022

C O MPANY NE W S

FAO South Africa acquires
EIE Group

MATERIAL HANDLING and
warehousing equipment supplier
EIE Group in South Africa will
be known as CFAO Equipment,
effective 1 April, 2022. This follows the recent acquisition of the
company from enX Group by CFAO South Africa, a provider of
Transnet opens up integrated mobility solutions across the automotive value chain.

parts of its freight rail Andrew Velleman, CEO of CFAO South Africa, says that the
network venture will be beneficial for both companies, extending CFAO
South Africa’s market offerings to include the supply of material
handling and warehouse equipment from reputable global
TRANSNET INVITED bids from the private sector to manufacturers, including Toyota Forklift.
operate sections of its freight network as it seeks to
improve deteriorating infrastructure that is damaging “The acquisition of the company by CFAO South Africa is
the country’s mining sector. Transnet, whose rail an exciting opportunity to leverage the organisation’s extensive
infrastructure has been underperforming after years industry expertise. To be a part of CFAO South Africa will
of underinvestment, widespread copper cable theft strengthen our position as the market leader in southern Africa”
and vandalism, will be taking bids from 1 April to 31 says Vuyokazi Bangazi, National Sales Manager, EIE Group.
May, 2022, the company said.

From the sale of new and used vehicles and trucks to supply
The company’s total freight rail volumes declined
by nearly 14 percent from 212.3 million tons in chain, logistics management and assembly for the automotive
2020 to 183.29 million tons last year, the worst industry, CFAO South Africa delivers a range of integrated mobility
performance in a decade, company records show. solutions across the automotive value chain, contributing towards
“This is important for us,” says Transnet CEO Portia the support, development and growth of the automotive industry in
Derby, adding that the move will increase “the South Africa and across the rest of Africa.
dynamism of the sector”.
Until now CFAO South Africa has been operating through:
The rail company’s woes have cost exporters, • CFAO Motors South Africa, a comprehensive automotive dealer
especially the mining and agriculture sectors, billions network of multi-brand dealerships.
of rand in potential revenue, though Transnet said it • Toyota Tsusho Africa, a trading and supply chain management
has no plans to open its coal and iron ore rail lines to specialist company that delivers a range of value-adding
private operators. solutions for the South African automotive manufacturing
industry.
Transnet said the service along one of its • Africa Mobility Solutions, responsible for the export and import of
container rail lines from City Deep near Johannesburg vehicles and parts in Africa, particularly Toyota, Hino and Suzuki.
to the port city of Durban was taking twice as long as
scheduled because of theft and vandalism. “I am proud that we are integrating the network and expertise
of such a reputable industrial equipment supplier into our business.
South African President Cyril Ramaphosa has The evolution of the company to form CFAO Equipment will have no
ruled out privatising Transnet, but in February operational impact on our loyal customers, and we will continue to
directed the state-owned company to allow private rail provide world-class products and services to the material handling
operators to operate on the country’s core network. and warehousing industry that we have become synonymous with.
Transnet said the first phase of the programme would CFAO South Africa remains committed to transformation and is
make 16 ‘slots’ on its rail routes available to private planning a new B-BBEE transaction for CFAO Equipment to retain
operators for specified periods. • the current transformation rating,” says Velleman. •

www .l o g ist i csn e w s .c o .z a M A RC H/A P R IL 2022 31