HARARE: Pioneer Transport is targeting $6 million revenue by end of this year as the company continues to operate viably despite its exit from Unifreight Africa Limited. Pioneer Transport is now operating under the custodian of the management team and workforce.
Pioneer Transport finance director Mr Nicky Ngido said company performance has been encouraging and $4,7 million revenue has been recorded since the takeover .
“Revenue to date is at $4,7 million and the target of $6 million by year-end is still achievable. Cash flow challenges have not spared us but we have managed to fund our current operations including salaries though we are behind with some statutories and a few other creditors.
“The future would be to replace the assets and this is planned for the first half of next year,” said Mr Ngido. He said this year’s focus has been to protect assets from inherited creditors who had gone aggressive and that has been achieved to date.
The company’s debt including statutories was sitting at $3 million when the management took over but more than half a million has been channelled towards debt clearance. After takeover the company inherited a $3 million debt including the statutories, but those creditors who had gone aggressive totalled around $700 000.
Pioneer Transport managing director Mr Christopher Mamhiwa said the business overview in a snapshot is encouraging to an extent that they have managed to keep wheels turning. He said they have managed to maintain the clientele while they have also acquired new clients.
“Our revenue has remained stable although it has also been affected by the weakening South African rand. As a way of mitigating the situation we are targeting markets like Zambia and Mozambique, which trade in US dollars.
“It is also encouraging that we managed to maintain the same fleet that we took over in January 2015. Our view is to replace the fleet in the first half of next year,” said Mr Mamhiwa. “I feel encouraged by the hard work being expressed by the employees who have helped us to get where we are today. The fleet is sitting on 92 tractors and 197 trailers.”
He said the company is also working on the headcount which is “heavy” when compared to the company’s assets but that is set to be corrected by bringing in more trucks next year. The new management team has already implemented processes to reduce running costs while organisational restructuring is being looked at to assist with streamlining and cost savings.
The company is determined to remain one of the leading transporters in the region and will continue to offer bulk freight solutions in Zimbabwe and the Southern African region.
