NHS to set up logistics arm

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NATIONAL Handling Services (NHS) says it will set up a logistics company to improve revenue streams, amid the myriad challenges within Zimbabwe’s economy.

NHS chief executive Godknows Marawanyika said establishing a logistics arm would remain a priority for the company.
“NHS aspires to establish a logistics arm in 2023 and the focus will be on improving the financial base and strengthening the going concern of the organisation,” Marawanyika told The Financial Gazette on the sidelines of the company’s first annual general meeting earlier this month.
“We continue to pursue a growth strategy buttressed by increased investment in ground support equipment and cargo facilities at airports and border posts.
“A feasibility study has been commissioned on the logistics company.”
Once the feasibility study is completed, the board will be engaging the shareholders for the implementation of the diversification strategy.
NHS is expected to benefit from increased activity emanating from the completion of the Robert Gabriel Mugabe International Airport (RGM).
“NHS will, as a matter of priority, continue to invest in key pieces of equipment to position itself to handle the new capacity at the expanded RGM, increase customer demands and embrace new technology,” NHS board chairperson Franklin Mukarakate said.
In its 2021 annual report, NHS revealed that the Covid-19 pandemic suppressed economic activities in major source markets in Europe and America, which slowed down activities at the Zimbabwe Dry Port in Walvis Bay, Namibia.
As a result, the port had failed to meet some of its obligations to Namibia’s National Port Authority.
In 2021, NHS, on the other hand, made a profit before tax of $18,17 million and a net profit after tax of $2,79 million.
In terms of inflation-adjusted figures, the company recorded total revenue of $974,98 million, up from $696,65 million in 2020, representing a 40 percent increase in real terms.
Traffic revenue rose 52 percent to $649,84 million in 2021 from $427,95 million in 2020. Freight and cargo revenue increased by 13 percent to $290,29 million in 2021 from $257,43 million in 2020.
Ancillary revenue increased by 209 percent to $34,84 million from $11,25 million in 2020.
A total expenditure of $770,99 million was incurred during the period under review, compared to $290,14 million incurred in 2020.
This represented a 167 percent increase in expenditure, mainly due to the inflation pressures during the period under consideration.
NHS acquired four conveyor belt loaders for US$295 000 and locally manufactured six baggage trolleys for US$6 500.
According to the company, these additional pieces of equipment resulted in improved handling capacity and customer satisfaction.
The company has a recapitalisation programme in place meant to capacitate operations given the expansion work at the airport.
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