NETSHITUNI COACHES
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NETSHITUNI COACHES
Anything is Possible at Netshituni PRODUCTION: Karl Pietersen
Established as a family transport company more than 30 years ago, Netshituni Coaches helps students, teachers, nurses, and workers from all over Limpopo and Gauteng to travel safely and efficiently. With a plan to expand its fleet and grow its service portfolio, the future looks very exciting, as Director Luciana Netshituni explains. www.enterprise-africa.net / 3
INDUSTRY FOCUS: TRAVEL
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Providing a regular, reliable, safe, comfortable and affordable transportation service has always been at the heart of Netshituni Coaches – the Limpopobased provider of commuter and charter bus services. Established by Andries Netshituni in 1984, the idea was to help students, teachers, nurses, and other professionals get to work in the province which is sparsely populated with the majority of people living in rural villages. Growing from a handful of taxis and minibuses moving people around Limpopo, the company has become one of the transportation industry’s big success stories, growing into Gauteng and starting a cross-border service while overcoming a number of significant challenges through its more than three decades of operation. Today, the company employs more than 100 people and is planning significant expansion in the coming months. Netshituni moves hundreds of students and workers every single day, and commands strong brand loyalty thanks to the superior service that is delivered. In 2013, after the sudden passing of Andries, wife and co-director Luciana Netshituni stepped in at the helm of the business. Her entrepreneurial flair is helping to drive the company and the brand in a big way. Soon, Netshituni will invest into new buses and coaches to add to its already strong fleet.
// WE ARE ALWAYS TRYING TO FIND SOLUTIONS AND WE NEVER DO THE SAME THINGS. IT’S ALWAYS ABOUT KEEPING PEOPLE HAPPY AND THAT MAKES IT FUN // 4 / www.enterprise-africa.net
“The villages are growing, they are building more hospitals and schools, and the population is growing,” explains Luciana. “The current buses we have get very overloaded and are at capacity. We want to add 20 or more buses to cope with the demand we have. We like to use Scania or MAN buses and it is likely that we will use a local partner to source these buses as we expand. “Depending on demand, we could end up with more than 20 new buses. They will be added gradually and not all at the same time. There are many malls, schools and offices being built so depending on the population growth, we could add more than 20 to deliver an effective service – this is an ongoing investment programme.” Working with individual travellers as well as corporate clients, tour operators and events companies, Netshituni currently operates more than 60 coaches and buses. By adding more to the fleet, the company is not only investing into its own growth strategy, it is also investing into its community by creating much needed jobs. “With each new coach we bring to fleet, we create three more jobs,” says Luciana. DRIVING EXPANSION Ever ambitious, Luciana wants to add different services to the Netshituni business portfolio. Plans include growing the number of destinations and diversifying the type of service offered. Located in the village of Tshikhudini, in the north eastern corner of Limpopo, Netshituni is close to South Africa’s borders with Zimbabwe, Mozambique and Botswana and helping people to travel across the borders is one area where Luciana sees growth potential. “We already work on cross-border services and we provide routes into Zimbabwe,” she says. “We can offer services into Namibia, Malawi, and across the SADC region but this would usually be on a charter service rather than a regular service. In peak season, we operate into Zimbabwe on a daily basis.
“Currently, we are working on a permit for Mozambique as we see demand there. Cross-border is a big thing for the company. Right now, the cross-border buses are full because we are coming into the Christmas period. The buses are each full of 70 people and their luggage as people come into South Africa to buy many different things. Even when we are not as busy, we are still carrying 45 people in each bus.” The company prides itself on being able to offer transport to any destination, in any country in southern Africa. This is a valuable service for those in the tourism industry. Tourism has received a number of investments from government in an effort to boost job creation. And tourism is certainly an industry sector where Luciana sees potential. She tells Enterprise Africa that the company is studying the domestic airline industry as one where the company could grow. The idea was suggested by Luciana’s 17-year old son and has started discussions about what the future could hold for Netshituni in South Africa’s skies. “The idea came from my son who is fascinated with aeroplanes and who wants to be a pilot. He asked me, if he can qualify as a pilot, could we use our transport knowledge to look at the air travel industry? I looked into it and realised that it was certainly possible with the way our economy is right now and the trouble there is with our airlines. I feel it is definitely something we can venture into with the help of my son. He will have to complete his training at flight school so it remains an idea for now, but it is something I am very excited about exploring.” The air travel industry is one which has been highlighted by the South African government, and many governments across Africa, as one which has major potential for creating jobs through its contribution to tourism. At the opening of the Airlines Association of Southern Africa’s (AASA) 48th Annual General Assembly in Zambia, CEO Chris Zweigenthal
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INDUSTRY FOCUS: TRAVEL
// WE HOPE TO CONTINUALLY CONVINCE THE CUSTOMER THAT WE ARE THE BEST AND CONVINCE THEM THAT WE WILL DELIVER WHATEVER THEY NEED TO FEEL COMFORTABLE // said that Southern African airlines – and the destinations and economies they serve – must differentiate themselves through excellent customer service, efficiencies and value-for-money travel, trade and tourism propositions. This is in line with the offering that Netshituni already delivers through its bus and coach business. Netshituni will also welcome another second-generation family leader when Luciana’s youngest son enters upon completion of his studies. “My other son likes the idea of being involved in the daily management of the company but he is only 12 and still has to complete his education. I am excited about getting them involved in the company and time will tell how successful we can be.”
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FUELLING CONCERN One element of the Netshituni business which is causing management a headache is the price of fuel. South Africa’s fuel pricing is regulated and all sellers must stick to prices advised by the government. Since January, the price of diesel has risen from R12.74 per litre to R15.64. This is an 8.61% increase on the same period from last year, and the rising prices are set to continue. According to Luciana, this is unsustainable. “We are expecting the diesel price to go up again and not come down anytime soon so we are unsure - it is scary,” she admits. “When you are providing a good service, but people are complaining about the prices which are out of our control, that is not nice. Most of the people we carry are workers and students and those people do not have a choice – they have to go to school or work.
“We have not seen a drop off in passenger demand but it does affect the lower end of the market where earnings are small.” At the end of October, price increases on diesel for November are expected to increase by around 25-30 cents per litre. Typically, coach fuel tanks can be as large as 600-700 litres. To ensure customers keep coming back to Netshituni, the company has installed many innovative offerings in its vehicles so that comfort and safety are felt by all. These innovations bring a feeling of luxury to travel and this drives customer loyalty. “There is competition” admits Luciana, “but we have Wi-Fi on our buses, we have phone charging points, we have air conditioning, we have reading lamps, and we have reclining seats. These are just some of the innovations that we install to make sure the passenger feels at ease on the bus and keep their lives going while they are on the bus. Netshituni is the only operator in Limpopo to offer these services. “Some of the villages we provide
NETSHITUNI COACHES
for are very poor and Limpopo is a poor province, so our Wi-Fi does help the young people to get information while they ride. Yes, it helps us separate ourselves from the competition, but it is also helpful for the children to get more information for school or work. We have found that the Wi-Fi really does help them to research and acquire knowledge. “We hope to continually convince the customer that we are the best and convince them that we will deliver whatever they need to feel comfortable. We will always listen to the customer – that is the key to keep them coming back.” DRIVING BUSINESS FORWARD With the plans that are being put in place, the quality services that are being delivered daily, and the reputation of the Netshituni brand and name, the future looks extremely exciting for this ambitious business. Expansion of cross-border services, growth of the company’s fleet, development of the employee base, and the floating of ideas around air travel
make for an exciting pipeline that will keep Luciana and family busy for some time to come. “This is still a very exciting business,” she says. “I get bored very quickly so our business is never the same, every day is different. I never wake up and say ‘I’m going to the office and I’ll be home at five’, it’s different every single day and that makes it challenging and keeps the mind working. We are always trying to find solutions and we never do the same things. It’s always about keeping people happy and that makes it fun.” In 2004, Amazon founder and entrepreneur-extraordinaire, Jeff Bezos said: “One of the huge mistakes people make is that they try to force an interest on themselves. You don’t choose your passions; your passions choose you.” This is very much the case in Limpopo at Netshituni Coaches. The passion that runs through the business from top to bottom is an example to follow for other growing enterprises in the region. “I’m very happy with the business and happy with the direction we are moving. The only thing that concerns
me is the impact of the economy on the lower end of the market because it is sad that we provide a fantastic service but people are still left using all of their money on food and transport only. I really hope the economy improves so that there is more money for the lower end of the market. I think it will pick up – the President has sent out a delegation to attract investment into the country and he is making changes so that people can benefit and we can all make something of ourselves,” says Luciana. The wheels keep on turning at Netshituni, and the business is now positioned perfectly for strong growth in the future. The key is to continue delivering service of the highest level and encouraging customers to keep coming back. With the growth of the local population set to continue, it seems like the sky is literally the limit for this industry leading travel expert.
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ENTERPRISE AFRICA
NOVEMBER 2018