Page 5 - Logistics News - August 2021

TH O UGHT LEAD ERS HIP

uly saw extensive damage wrought to small businesses that depend on the
many shopping malls and some private lifeline provided by these companies.
J properties, including delivery trucks. Most
small businesses were looted to the ground and It is estimated that some companies
vandalised. Some might never open up again as most could take up to two months before
do not seem to have insurance. It is estimated that they may possibly resume normal
the impact could cost the KwaZulu-Natal economy operations. This means most small
somewhere in the region of R20 billion and 150,000 businesses could lose significant income
jobs lost. The impact in Gauteng will be just as big. during that time. In addition, they
will still incur expenses that need to Victor Nemukula, MD,
As most logistics companies could look for be paid. The ripple effect is that these Shumani Industrial
alternative routes into Africa and bypass South obligations may not be honoured. Equipment.
African ports, the impact on small businesses and
job creation could be very severe as most stand to While Shumani itself so far remains unaffected,
lose existing contracts. some of our large customers have been directly
impacted as their businesses have been vandalised
Productivity was disrupted for several days, and and looted. Obviously, it is still early days to
the subsequent loss has impacted earnings. Most determine the full extent of the consequences to
premises and warehouses were burnt, meaning some which we ourselves might be exposed as a result.
key customers could not operate as a result. Small
businesses will struggle to survive as they might not We anticipate an immediate knock-on effect on
get paid on time due to cash flow issues. payments as some customers are currently unable
to operate on various sites. The implication for
Those companies with operations in both our bottom line is that we cannot invoice while L O GI S T I CS NEWS
KwaZulu-Natal and Gauteng have been doubly this situation persists, which translates into under
affected, again meaning there will be no work for invoicing for some months ahead. •

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