Rising fuel prices have hit KAL Group's fuel sales, with sales volumes falling to 307.4 million liters in the six months to March compared to the same period last year.
Additionally, KAL Group CEO Sean Walsh said the company has seen a significant decline in gasoline sales from its fuel business, The Fuel Company (TFC), and its cargo division has lost market share. He said he noticed an increase in diesel sales as a result of the acquisition. The use of private cars also decreased.
“We found that as soon as (petrol) prices exceeded R16 per litre, the travel patterns of the general public decreased. In our group, petrol sales fell by 5-6% and diesel sales fell by 5% to 6%. Sales increased by about 3-4%.”
In the six months to March 2022, diesel sales accounted for 54% of TFC's fuel sales, rising to 55.3% in the same period a year later and finishing at 56.5% at the end of March this year. .
KAL Group saw a 2% decline in fuel sales during the reporting period, while industry talks believe competitors' sales losses were between high single digits and low double digits.
Mr Walsh said the group's biggest logistics challenge was the cost of transporting grain by road rather than rail due to the reduced quality of service on Transnet freight rail.
“The difference in cost per tonne between road and rail is between R300 and R400 per tonne. With around 20 million tonnes of grain having to be transported each year, 80% of grain transport could go back to rail. Hopefully, the country and everyone in it will save a lot of money.”
KAL Group also owns agricultural trade and retail chain Agrimark, plastics manufacturers Agriplus and Tego Plastics, and through its membership in the agricultural business chamber Agbiz, improves port services and improves port services. He is also deeply involved in negotiations with the government and Transnet. Government's Freight Logistics Roadmap Goals. Mr. Agbiz is also the co-chair of the B4SA Initiative’s Transportation and Logistics division.
“Over the past three to six months, we have seen a significant upturn in the collaborative efforts and interventions that Transnet is prepared to consider to resolve issues,” said new CEO Michelle Phillips. , really adding value and performing the role more efficiently than the previous incumbent.”
He expects it may take several years before these efforts begin to bear fruit.
