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Small operators battle multinational dominance

Small operators battle multinational dominance

Small freight forwarding companies remain under pressure in Botswana where the big players are grabbing most of the work.

According to Lucas Barreto, chairman of the Freight & Customs Clearing Agents Association of Botswana (FCCAAB), big forwarding companies continue to dominate the market with small players either being bought out or closing their doors as they simply cannot remain competitive.

“The big companies – especially the multinationals – are still pulling in most of the big contracts especially those in the government sector. The impact of that is that smaller and more often local forwarders are simply not in a position to compete.”

He said this had been compounded in the current economic environment where there were fewer projects on the go.

“There is some road construction taking place and one or two projects in the power sector but not much else,” he said. “Most of the projects currently under way are also being handled by the major logistics role-players. Projects are at present not bringing in more volumes or more clearing. It is relatively quiet.”