Unifreight drives growth through strategic tobacco transportation focus
Unifreight’s 2023 financial report highlights a robust year for the company, despite initial setbacks caused by the introduction of the new Zimbabwean currency, the ZiG.
The logistics giant has made significant strides in the tobacco transportation sector, leveraging fleet expansion and strategic market positioning to drive growth and revenue.
“Despite a challenging first quarter marked by subdued volumes due to the introduction of the new Zimbabwean Currency, the ZiG, we remain optimistic about Unifreight’s future. Our growth is underpinned by quality contracts we have been able to execute following the completion of the fleet expansion project in 2023,” stated Peter Annesley, group chairman of Unifreight.
Tobacco transportation has become a cornerstone of Unifreight’s operations in 2023.
The company transported 38 million kilogrammes of tobacco from regional floors, marking a 70 percent increase from the previous year. This significant surge not only solidified Unifreight’s market leadership but also played a crucial role in its revenue growth.
“We have successfully secured a larger share of the tobacco market and now transport over 20 percent of the total Zimbabwean tobacco crop,” Annesley added.
This impressive market penetration underscores the effectiveness of Unifreight’s strategic initiatives and its ability to capture and maintain market share in a competitive landscape.
A key driver of Unifreight’s success in the tobacco sector has been its substantial investment in fleet upgrades. The addition of new prime movers and enhancements to the Collection and Delivery (C&D) fleet have significantly increased the company’s operational capacity.
The upgraded fleet includes fife FAW 8.140ft 5t van bodies and 10 FAW 28.290FL van bodies, enabling Unifreight to meet diverse customer needs and expand its service offerings.
Looking ahead, Unifreight is poised to build on its 2023 achievements with a strategic focus on continued fleet expansion and diversification of revenue streams. The company has outlined several key initiatives for 2024 and beyond, aimed at sustaining and enhancing its market position.
“Although the 2024 season has only achieved 75 percent of the bumper 2023 season, we still managed to secure well over 30 million kilogrammes from the regional floors and have grown our market share. We aim to grow our share even more in the 2025 season,” said Richard Clarke, chief executive officer of Unifreight.
Unifreight is also committed to upgrading its 35 depots, starting with major centers and implementing the latest fleet monitoring technologies to optimise operations. Additionally, the company plans to expand into cross-border and contract haulage, with a goal of adding between 30 and 60 new FAWs to the cross-border fleet by year-end.
As Unifreight continues to navigate the evolving logistics landscape, its strategic investments and focus on core sectors like tobacco transportation position the company for sustained growth and success in the coming years.-eusinessweekly
