THE BRIDGE GROUP
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BridginG The gap Paul Levy, Sales Director at The Bridge Group, is excited about the work they’re doing to bring commodities and companies together. Erica Wark reports on why you should be excited too. But first, a little history of the export market in South Africa is essential...
The Bridge Group FEATURE
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undamentally, The Bridge Group is a logistics company, and the largest exporters of container loads of materials in sub-Saharan Africa. From decades of service in this market The Bridge Group has fantastic infrastructure and facilities, strong financial backing, it is the perfect partner to enable smooth trafficking of materials out of, and in to, South Africa. The Bridge was the first entrant to the export market, considered a dangerous investment back in the 1980’s, when the Rand was stronger than the dollar, and thus
The major force that is The Bridge Group eliminates that ‘fear of the unknown’ and thus clients come time and time again to manage this risk the economy was dominated by imports. At that time people were buying everything they needed from the rest of the world, producers within South Africa felt they simply couldn’t compete. One man had a different vision though. In order to compete in South Africa at this time he had to go against the flow of what everyone else was doing, as a man of straw, with no financial backing, but he wasn’t about to let any of that stop him. When Adam Kethro founded The Bridge Group in the 1980’s he took great care in observing existing logistics in the country…. Cargo moved from the interior, following a corridor where road and rail were the only options. Infrastructure was quite poor at this time; 10 years before South Africa had a democracy no-one wanted to invest infrastructure which would better serve
The Bridge Group FEATURE
the people who took over. Moreover, even in the first 10 years of democracy there was a delay where no work on infrastructure was undertaken either. Taking this into account, Kethro decided that to put more trains on an existing track had got to be easier than building an entire new road. It may sound logical to us now, but at the time people thought he was mad use rail, in fact Kethro faced huge opposition against the very concept becoming involved in exporting…hard to imagine now, with an export based economy in South Africa. Determination unshaken, Kethro maintained his endeavours. Predicated on the idea that rail would be the only viable option for future volumes of export, Kethro bit the bullet and built an inland terminal. It is still
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unusual for a logistics company to own its own plants, but taking this leap from 3rd party to asset owner vastly changed his profile. Luckily for South Africa, Kethro’s trailblazing work in the export and logistics arena meant that industrialized Africa was given the potential to keep up with the rest of the world and compete in the export market. Thanks to him, The Bridge Group also hold the corner in this market, being the only people in South Africa which shuttle materials from Zambia to Johannesburg, then on to Durban. Carrying everything from Copper, to nickel, cobalt, cotton, tobacco, chrome, manganese, zinc…. There are now 5 trains running each and every day to Durban Port, the predominant export hub.
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Competition? Having witnessed the successes of The Bridge Group, other companies have of course tried to enter the market. However, any client will confirm that The Bridge Group is in a different league of customer service. There’s no avoiding the fact that business can get risky, but even when things ‘go wrong’ and money stands to be lost, The Bridge Group will stand by you to fix it, and get things back on track. All businesses face financial risk, and there is no ignoring the fact that there is fear and uncertainty for foreign investors or organisations wanting to source materials from African or South Africa dealing with ‘unknown’ businesses. There is a trade risk, and so as a rule clients are more comfortable with local companies moving materials on their behalf, companies with people who know how to manage the risk. It can certainly be an expensive game to play, but this legacy of bravery in business, responsibility and reliability for customers is the reason that so many people use The Bridge Group today.
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So in this world of risk, why is The Bridge Group a safe bet? You will be working with dynamic people, with a wealth of experience and real dedication: Core to an understanding of the Bridge Group is the unique Bridge Culture, which prides itself on flexibility, adaptability and above all, urgency in everything that we do. We have groomed like-minded people who live and perpetuate the spirit and culture of the Bridge Group and to date, we have a staff compliment of 750 employees. As a privately owned enterprise, shareholding in the Bridge Group serves as a motivator for its management and staff: Who are empowered to grow the businesses in which they have a stake. Bridge people pride themselves in dedication to enhancing and developing the Group through strong alliances with our customers and suppliers. The result of this effort and culture is that people choose
The Bridge Group FEATURE
presence allows it to take advantage of the increasing movement of capital between emerging markets and to facilitate trade flows. The strategic partnership of the two largest banks in Africa and China, Standard Bank and the Industrial and Commercial Bank of China (ICBC taking a 20% stake in Standard Bank), offers significant co-operation benefits and new capacity for growth in the years ahead. To look at strategically how the to do business with Bridge. The Bridge company operates, it breaks down to Group is a premium supplier of choice in the 3 sections: industry sectors it services. 1. African trade: As explained, this is the long term playground of The Bridge Group The Bridge Group holds a well earned 2. Importing: A new focus for The Bridge reputation for reliability and strong financial Group, the aim being to fill manufactured backing, the reputation that it has built has products on to those same vehicles for the attracted investment. 1 July 2008 marked return journey, with fewer empty legs this the beginning of a new era for the Bridge means it becomes cheaper for both parties. Group, when Standard Bank Private Equity 3. Trading Businesses and Finance acquired a 30% stake in the business in Businesses : The brand new Bridge terms of a Management Buy Out. The Group baby, which MD Paul Levy is so transaction was facilitated by Standard excited about! Bank Private Equity in order to assist the management of the Bridge Group to Levy explained to me that, at present, 60% of increase their equity stake in the business. all exports are going to China, and in order for the Chinese to work with Africa it has been Standard Bank is a global bank with African necessary to overcome a few difficulties; in the roots. It is South Africa’s largest bank, main, how they pay for materials. The crux of distinguished by its extensive operations in the matter is: clients are happy to pay once on 17 African countries. Outside the African the materials on the vessel at port. However continent, Standard Bank Group operations the African/South African sources producing span to 21 countries, with an emerging the materials don’t want to release from their market focus. Standard Bank’s growing global plants until they have had payment.
Levy’s section of the company now bridges that space in between. The Bridge Group finance that risky distance, making business possible. In practice customers have already proven to be very happy with this; especially since The Bridge Group have had their allegiance with the bank! The risk The Bridge Group takes on your behalf is a measured and tempered by the wealth of experience within the company, allowing you one point of contact, ease of doing business, and peace of mind over your business transactions. This new service further differentiates The Bridge Group from any competitors. The major force that is The Bridge Group eliminates that ‘fear of the unknown’ and thus clients come time and time again to manage this risk.
companies, and India appears to be a strong new emerging market. The footprint of The Bridge Group will expand, aiming to go through eastern Africa too, Uganda and Kenya, cash allowing. The funds that The Bridge Group make from brokering risk and transporting materials will be used to seek to dominate rail, to build and dominate new corridors for business. Though the history may have been complicated, and the endeavours of The Bridge Group vast, the priorities for The Bridge Group are, quite simply: To establish new corridors throughout sub-Saharan Africa, particularly into eastern Africa and south eastern Africa. As always, to secure volume through its facilities
The future for The Bridge Group
If you’d like to make use of the existing network, or perhaps help make these new corridors possible, then please visit www.bridgeshipping.co.za for more information END
While China currently contribute the biggest share of business by far, The Bridge Group do also work extensively with European
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