26th Mar 2014 13:25
LONDON (Alliance News) - AfriAg PLC Wednesday said the agri-logistics unit in which it owns a 40% stake is expanding its fleet of Mercedes articulated trucks to 14, from six, and has already taken delivery of the first five new trucks after winning new contracts.
In a statement, the agricultural investing company said the AfriAg SA (Pty) Ltd logistics unit has also taken delivery of eight new 15.2 meter refrigerated trailers, which are being prepared for operation.
"The new fleet is expected to commence operations in April once they have been registered for cross-border operations," the company said.
The need for the new vehicles was driven by new contracts, including a two-year deal with the largest commercial growing organisation in Mozambique for fresh vegetables for export.
"This new two year contract requires AfriAg to move, in a strictly controlled cold chain environment from source to final destination, multiple loads per week of fresh produce by truck to Johannesburg in South Africa and airfreight the majority of this production on to the UK for distribution to the major UK supermarkets," it said in a statement.
It has also recently secured logistics contracts to manage and move lucerne, or alfalfa, forage exports from the Douglas and Kimberley regions in South Africa to dairy and government animal feed contracts in the United Arab Emirates. About 50 containers are currently being shipped weekly from Douglas to the Port of Durban and on to the Middle East, it said.
"The outlook for 2014 for AfriAg SA appears to be strong and we see new capacity required for two way traffic north and east of the South African border, and the group expects to add additional fleet capacity over the coming year," AfriAg Chairman David Lenigas said in a statement.
"AfriAg will continue to evaluate opportunities in the agricultural sector which are complementary to AfriAg SA and the other investments held," Lenigas added.
AfriAg shares were down 6.7% at 0.816 pence Thursday afternoon.
By Steve McGrath; [email protected]; @SteveMcGrath1
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