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Transcript of Newtron Company Profile 2010 2 Company Profile 2010 _2_.pdf · The biggest hurdle came in Nigeria,...
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LO GI S T I C S - DO O R TO DOO R SE RVI CE - EX P O R TI NG - CUS TO M S CL EA RI N G - SE A FRE I G H T
F O RW AR DI N G - S E A F R E I G H T C HA R T E R S - A I R F R EI G HT C HA R T E RS A N D B RO KE RA GE WE S T AF R I CA
CCCooommmpppaaannnyyy PPPrrrooofffiiillleee
“““WWWEEE EEEXXXPPPOOORRRTTT AAAFFFRRRIIICCCAAA”””
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LO GI S T I C S - DO O R TO DOO R SE RVI CE - EX P O R TI NG - CUS TO M S CL EA RI N G - SE A FRE I G H T
F O RW AR DI N G - S E A F R E I G H T C HA R T E R S - A I R F R EI G HT C HA R T E RS A N D B RO KE RA GE WE S T AF R I CA
CONTENTS
CONTENTS .............................................................................................................................. 2
NEWTRON: A NEW BEGINNING ......................................................................................... 3
FINANCE ................................................................................................................................. 7
DELIVERY OF CONSIGNMENT .................................................................................................. 8
LOGISTICS PROCESS ................................................................................................................ 8
LOGISTICS PROCESS BANKING AND LC PAYMENT ................................................................... 9
WAREHOUSING ....................................................................................................................... 9
TRANSPORTATION / HAULAGES ............................................................................................. 10
ECONOMIC / PROTOCOL SERVICES ......................................................................................... 10
TRACK RECORD ..................................................................................................................... 10
PROJECTS OVERVIEW ............................................................................................................ 11
CLIENT REFERENCES: ............................................................................................................ 11
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LO GI S T I C S - DO O R TO DOO R SE RVI CE - EX P O R TI NG - CUS TO M S CL EA RI N G - SE A FRE I G H T
F O RW AR DI N G - S E A F R E I G H T C HA R T E R S - A I R F R EI G HT C HA R T E RS A N D B RO KE RA GE WE S T AF R I CA
NEWTRON: A NEW BEGINNING
Newtron was founded by Jaco van Rensburg, servicing clients on a small scale and financing
business through personal credit arrangements with South African Banks. In 1992 Saambou bank
was willing to issue personal loans to potential clients based on some very simple criteria. Market
research and elaborate introductions opened doors to potential clients – and motivating buyers to
superfluous purchases was developed into an art form, supported by generous
payment terms that were very suitable to clients.
In 1996 door to door service delivery meant collecting a wrapped
package from a retailer, hand delivered to a buyer. Newtron opened
a sales office selling any movable product, and financing it
through any financial institution willing to give a personal
loan to a potential buyer. The economy supported low monthly
instalments and long term commitments – a very useful
advantage state of affairs for a door-to-door salesman; however
the longevity of this business was questionable due to the
low barriers to entry for competitors, and the nature of the
products (moving anything from car radios to kitchen curtains and
cutlery).
In 1998 Newtron started targeting larger retailers in favour of
buyers – the successful sales and operational track record
achieved opened the door to manufacturing and
export clients. Newtron became a member of the Exporters Club
of South Africa (administered from the Pretoria show grounds),
and eventually Jaco was elected the President - a career
advancing / door opening move allowing increased access to
retailers and manufacturers. The Pretoria show is a well known
show being hosted every year for the past 62 years at the same
venue.
Jaco attended a freight training course in exports administration
and exporting into Africa financed by Standard Bank, to support the market
strategy change. Newtron started exploring the trade requests and trade
relations between South African companies and interested parties abroad, including the
Indian Ocean Islands, making use of all incentives available to exporters, retailers and manufacturers.
Clover, Nestle, KWV, Enterprise and many other manufacturing companies were targeted with
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opportunities to market their products abroad – which open the doors to the world.
Export incentives and trade finance schemes by the Department of Trade and Industry assisted
potential retailers to reach the African Market through trade delegations, trade shows and trade fairs.
In 1999 the Pretoria Show Grounds arranged a well planned trade delegation of 15 participants to be
first delegation to the SUBEX fair hosted in Madagascar. Representing several South African
retailers and manufacturers, Newtron signed joint venture agreements and trade contracts,
establishing new relationships with parties in the Indian Ocean Islands. An unexpected windfall of the
fair was the delegation’s visit to Mauritius, at the time when the free port in Port Louis had just been
completed where a where Newtron identified a well positioned 20 000 m2 plot of land with existing
warehouses and show rooms.
This eye opening visit proved to be fruitful to all delegates as the free port was fairly new and
underutilised at that time – marketing campaigns failed to promote the port within the Southern
African market.
Door to door delivery became the main focus of Newtron – consignment collection, containerising,
clearing and shipping. The South African Trade Fair was hosted in Mauritius the following year
(2000). This Trade Fair established the first step towards a logistics process in the African market.
Newtron was trading as XJ Tradings at the time and represented and sold products from an even
larger number of retailers at this trade fair – including Nestle powdered milk and canned product from
Coca Cola – collecting and delivering the products as required – elevating Newtron to a serious
contender in the export space, overwhelmed by customer requests. This trade fair ultimately became
the training school towards the establishment of Newtron Logistics and Export Specialists.
Newtron focused on improving efficiencies to make them more competitive than any other exporter in
the business, as well as investing energy into the development of the African market. Visits to Abidjan
Ivory Coast, Accra, Ghana, Douala, Cameroon and DRC schooled Newtron in African exports and the
import requirements of each country. Growth was measured by calculating the containers shipped
per month.
The biggest hurdle came in Nigeria, West Africa. Newtron had to come to terms with the bribery and
corruption prominent in all sectors of the country – in any one transaction, a gravy-train of participants
wanted a share of the revenues, making it very difficult to develop a sustainable business. Contracting
for telecoms companies and retailers schooled Jaco again in all areas of importing into Nigeria -
working in the ports on the ground with customs and port operators.
Newtron mastered the logistics process of clearing from ship side and the LC requirements of the
local banks, CCVO’s, manufacturing certificates, certificate of labelling and certificate of conformance
and payment schedules by debit notes, duty calculation, destination inspection and other related
logistics as required when importing into Nigeria (e.g. Cotecna must issue a risk assessment report
before any product may be imported).
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The importing procedure changed when the government decided that the dumping of Chinese goods
in Nigeria must stop – creating havoc in the industry, with suppliers needing to meet the new
requirements legislated. Manufacturers suffered losses with containers sitting in the port for up to 14
months before clearing was possible. The demurrage on a consignment may easily be more than the
costs of importing. With the value of the Nigerian Naira that plummet to a all time low of N150 to the
USD 2010, importers opening a form M have the requirement to trade with foreign exchange, as
working with USD offers a more predictable environment compared to the Naira.
Exporters, agents, forwarders and shipping lines started to show their abilities in West Africa, with
telecommunications companies and banks exploring the local markets to get a piece of the action.
Telecoms companies exported communications towers and shelters with battery packs and
generators. Qualified experts from South Africa and around the world was contracted to assist with
these rapidly developing markets, resulting in ever increasing amounts of money flowing through
West Africa - all other markets had to adapt or be left behind. Jaco became part of this market by
involving himself with telecoms companies, clearing- and logistics providers. The import requirements
changed to accommodate retailers and manufacturers. Shipping lines rerouted their sailing
schedules to become part of the ports on the coastline to collect containers from Europe, Asia, Middle
East and South Africa.
Today, the African market is still growing at a rate exceeding the predictions of many. The governing
bodies adapted in such a manner that guidelines for imports into a country and revenue with taxation
and VAT and examination of containers could be enforced by custom officials and inspections agents.
Banks have joined this party and made agreements and established trade relations with other major
banks and groups. The beer companies didn’t sit back and overlook this opportunity either. As it
stands today the West African coastline will host more than 120 ships per month on route to and from
South Africa and Europe. In some cases the shipping line will wait for three weeks because of the
congestion before a birth space becomes available. The Nigerian Port Authorities will make the call
to transfer containers to a private terminal, TML or Kiri Kiri. Nigeria as one of the 10 busiest ports in
the world, and has developed to a major player in West Africa, accommodating more than 2 births per
port and more than 7 individual ports of entry with private terminals and bonded warehouses on the
West Coast. This coast line has become the trading hub for West Africa.
Importing into West Africa is not as straight forward as importing into the USA or UK. Like the roads
in Nigeria, the process is full of potholes and hurdles - not to mention the “police” who want a happy
weekend from you. A newcomer to this market may easily fall prey to an educated official.
Newtron formed a partnership in 2006 with Jahlive Sadakka Ng Ltd - a well-established Nigerian
company to service clients from the South of Africa to the East of Australia and the West of the USA.
South African companies in the telecoms industry and the banking environment focus on providing
services in Nigeria, Cameroon, DRC and Ghana. Newtron provides the door to door solution for all
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exporters and importers. Trained by experience and educated by the potholes, Newtron advises and
executes the best possible way to import any product from any country in the world to West Africa.
The associations and relationships established over the past 10 years is the key to the success of
Newtron. Money and opportunities are flowing on the streets of West Africa – our projects for
Guinness, the clearing for V-Mobile, the containerising for Andrews and the MTN towers shipped,
road freighted and air freighted over the past 10 years give us the running start over and above the
other importers in West Africa. Newtron is fully versed in the process from collection up to the
delivery destination, when importing, exporting and clearing any consignment into West Africa.
We Export Africa It has been a long route to today. The roads have been gravel and tar. The flights have been bumpy
and shaky but we managed to delivery every consignment to the doorstep of the buyer for each and
every client who requested our services
To date, we have not lost any parts or equipment, nut or bolt, containers or paperwork - nor have we
participated in any irregular business activities. Logistics is the movement of a consignment from one
place or country to another place or country. Newtron provides this logistics solution for importing into
West Africa including documentation, containerising, LC verbiage, form M, clearing & forwarding,
shipping and delivery up until the consignment is
delivered to the destination.
This may be done by road, by air or by ship.
Newtron is an established logistics provider for
manufacturers, retailers and exporters.
WE ARE YOUR LOGISTICS
PROVIDER FOR EXPORTING
INTO WEST AFRICA
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NEWTRON SPECIALISES IN LOGISTICS (DOCUMENTATION, BANKING) AND
EXPORTS, FOCUSING ON AFRICA, OFFERING THE FOLLOWING SERVICES:
AIRFREIGHT
SEA FREIGHT:
ROAD FREIGHT
PROJECT MANAGEMENT
WAREHOUSE MANAGEMENT
DOOR TO DOOR DELIVERY
FULL LOGISTICS PROCESS (INCLUDING DOCUMENTATION PROCESS)
LC ESTABLISHMENT AND DRAFT LC
PAYMENT AGAINST LC
BANK DOCUMENTS SUBMISSION FOR PAYMENT
FINAL EXCHANGE DOCUMENTS
CONTAINERIZING
PACKAGING
TRANSPORT TO
AND FROM THE
PORT
FINANCE
We always require a
deposit for all work quoted
from our clients.
The split 75% of the total
quote value for clearing
charges as deposit while the 25% balance will be paid as soon as we deliver the consignment at the
door step of the consignee. We always acknowledge receipt of payment and receipts are issued
immediately. However in some cases and subject to a formal written agreement contract, we could
procure through our bank to finance a project. We have a Bank bond in place as freight forwarder with
customs, which enable us to discharge our air freighted goods to ensure delivery within 48 hours at
specified airports.
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DELIVERY OF CONSIGNMENT
Prompt Delivery of consignment is very essential to ensure good freight forwarders / customer good
relationship. Once the Airway bill of the consignment is faxed or mail to us after execution at the point
of loading and the landing confirmed by the airline; we can deliver the consignment within 48 hours in
local area and 72hrs outside local area of specified airports.
All sea freighted consignments are delivered in less than ten (10) working days when the
consignment is transferred to our bonded warehouses. In some instances Port Authorities do transfer
the containers to private terminals; this could cause a delay in delivery period. All consignment to be
delivered are electronically captured and always accompanied by Delivery Waybills on delivered.
LOGISTICS PROCESS
Documentation for export requires
specified detail with reference to pro-
forma invoice and other shipping
documents and cross reference to LC
requirements and conformity. The
logistics process Newtron provides
contains the drafting of all required
documents in accordance to the
requirements of the established LC.
NEWTRON LOGISTICS
DOCUMENTATION INDICATION AS REQUIRED FOR EXPORTS: (Required as standard with LC transactions)
Packing list, two originals and three copies,
Bills of Landing full set less one
Certificate of Origin Manufacturing certificate stating the standards adopted
Manufacturing Certificate stating language labelling
Manufacturing Certificate stating part or final shipment
Certification proven original document sent to consignee bank
Courier receipt
SAD500 Customs Declaration form F178
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NaTIS Certificate (if vehicles) Customs release notification
UCR unique consignment reference NPA Export Cargo Dues Order
LOGISTICS PROCESS BANKING AND LC PAYMENT
Drafting the terms of the Letter of Credit and choosing a local corresponding bank may prove
cumbersome to a manufacturing company. South African banks may not accept certain terms and
conditions from banks in some African countries. All letters of credit are established in terms with the
required corresponding banks, which may be required to confirm the LC, before shipment. Terms
may vary from bank to bank and payment may be hold back, if any discrepancy is filed against the
shipping documents submitted for payment against a letter of credit.
What other payment guarantee may be used? Direct Bank deposit Payment Guarantee Promissory Note Provisional Payment As the logistics provider we will draft the letter of credit and draft the required document to conform
with the requirements to ensure payment in accordance to the terms accepted by the financial
institutions. Requirements set by most financial institutions on export transactions require:
Approval and conformance to the corresponding banks requirements
Pre approval of the draft shipping documents
Confirming the letter of credit with the local financial institution
Confirm the letter of credit before shipping date
Claims against letter of credit for payment
Swift MT700 letter of credit acceptance
Payments of duties and taxes at destination port
WAREHOUSING
Without warehousing services, imported consignments
that are not removed on landing are exposed to danger of
pilferage, detention or overtime etc. We have addressed
this problem by having secured warehouses in all our
areas of operation. We service and provide up to
standard security space fitted and well equipped with
modern facilities. We manage and provide a 24/7
services at our warehouses.
In Nigeria our largest warehouse is situated in Lagos, has about 5000 m³ storage facility. Although the
majority of our consignments come through Lagos Airport and various Lagos seaports in Lagos State,
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we also operate Skeleton offices at Abuja International Airport, Warri Sea Port, Port Harcourt and,
Calabar ports. We have an office at Calabar seaport because of the free export zone enjoyed by the
area in line with Nigeria Government policy.
We equally have joint venture warehouse agreements with warehouse owners and operators in other
African Countries that allow us to make use of their bonded warehouses when needed.
Part of our services we provide include warehouse and stock management, in- out booking, packing,
repacking, coding and transports to and from the warehouses in all of Africa.
TRANSPORTATION / HAULAGES
Transportation and good haulage systems cannot be trivialised in ensuring good clearing services.
We have vans for heavy and lighter consignments, for deliveries within state limits of a country.
We also have big trucks with security escorts for night deliveries of consignments securing the safety
and prompt delivery. This enables and ensures early morning delivery at the consignees’ destination
or factory. Containerised consignments are always loaded by truck and trailer. All containerised
consignments are always escorted during the morning and night journeys. Proper records of
transactions are taken by our drivers and personnel at the point of destination or off loading of
consignments. All drives are in position of a legal driver’s license and a mobile phone for direct
communication and updates. Some trucks are equipped with tracking devices and logbooks.
ECONOMIC / PROTOCOL SERVICES
As part of our contribution to the promotion of culture and
tourism, we organise and undertake tours, picnics, hotel
accommodation, seminars and related activities at the request
of our clients. We want them to know and feel Africa.
We assure you that we have the personnel and facilities to
carry out your instruction satisfactorily with respect to the
services required and look forward to your visit and
participation.
TRACK RECORD
Company registered 1996
South African export licence obtained in 1999
10 years extensive experience in West Africa
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PROJECTS OVERVIEW
Import of Energem loading bays rebuild, parts and maintenance
Import and clearing warehousing of V-mobile backbone - mobile and satellite communication system
Import of Siemens communications systems Greece to West Africa
Warehousing and delivery of Likusasa towers for mobile telecommunication
Containerizing, packing, shipping, clearing of Geo Stott manufactured Communication
Satellite Towers door to door
Biggest satellite antenna installed
11.3m Victoria Island, Lagos State
During 2006 delivered 1550 FCL in
one month as Head of Logistics
Cash in Transit vehicles for Banks
and Security companies (Pic)
Cement plant expansion and
equipment Project Management
Parts, repairs on parts and
maintenance for major companies around Africa
CLIENT REFERENCES:
Folawiyo Energy Nigeria
Energem Petrolium Corp Guernsey
Energem Petrolium Malawi Ltd
Glo Nigeria
CTP Ltd Cape Town
Inbal South Africa
Sumbo Sowole Chemo-Technics Nigeria
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F O RW AR DI N G - S E A F R E I G H T C HA R T E R S - A I R F R EI G HT C HA R T E RS A N D B RO KE RA GE WE S T AF R I CA
MBM Exclusive Outdoor Furniture South Africa
SKB Logistics Nigeria
Reckitt Benckiser Nigeria
Pacman M.E Dubai
Siogrem Enterprises Nigeria
Panzer South Africa
ICMS Nigeria
OTT South Africa
Naijatalk Ltd Nigeria
Terraseis Group of Companies
Standard Bank South Africa
Stanbic IBTC Nigeria
Venture Otto SA
Telkom Management Services South Africa
Thank you for your support