Sifax Group records 25% volume decline

Sifax Group records 25% volume decline

Sifax Group records 25% volume decline

Sifax Group has announced a 25 per cent drop in volume decline across its subsidiaries for the first half of 2016.

The Group Managing Director, Sifax, John Jenkins, said in a statement that the decline had greatly affected the company’s revenue.

He listed some of the challenges being faced by the company in the cause of doing business to include the inability of customers and importers to source for foreign exchange; their sole reliance on diesel for power generation, which had greatly increased the cost of doing business; and the deplorable condition of the access roads to the ports.

Jenkins said, “Taking into consideration the subsidiaries business performances mid-year, Sifax Group has recorded between 20 and 25 per cent volume decline.

“The first half of the year has been a very challenging one for us as a company. However, the resilience of the management and the dedication of a supporting workforce have been the driving force for the marginal success we have recorded.”

In a review of its key subsidiaries, Jenkins said Ports and Cargo Handling Services Limited had recorded a 10 per cent drop in container business operations.

He added that all the measuring indices for the company in the first half of the year recorded a negative return when benchmarked against the same period in 2015.

He said, “From vessel operations, throughput figures to gate activities, all recorded a sharp decline in volume and activities.

“Being a multi-purpose terminal, the PCHS Limited, aside from containers operations, also handles general/project cargoes, which was the most badly-affected arm of the business during the period under review.

“There was a 50 per cent drop in volume for general cargo goods between January and June, 2016 when compared with the first half of 2015.”

One of the biggest players in the industry, Sifax Haulage and Logistics Limited, was said to have recorded a 20 per cent decline in volume between January and June 2016, when compared with its 2015 mid-year performance.

This is despite the signing of new business deals with clients like APM Terminals Kano and Lilypond containers.

Of the three subsidiaries, only Sifax Off-Dock Nigeria Limited recorded an improved business performance for the period under review.

Jenkins said, “The throughput volume for January to June, 2016, compared with that of 2015 shows approximately a 54.11 per cent increase for the containers received into the facilities whilst deliveries improved also by 50.23 per cent.

“Though the business performance in this subsidiary has been encouraging, its overall impact in the group has been minimal due to its small size and limited financial contributions to the whole group.”

An inland container depot, Sifax Off-Dock, with three terminals at Okota, one at Trinity and another at Ijora, is used to ease congestion at the Ports & Cargo Terminal, according to the firm.

Jenkins expressed the hope that the business environment for the second half of the year would be friendlier and more conducive, with the recently introduced monetary and economic policies by the Federal Government.

He said, “Sifax Group will continue to explore available and emerging opportunities to contribute meaningfully to the growth of the economy of Nigeria.

“We intend to increase our market share with an aggressive marketing strategy and expect to see a recovery from the sharp decline in our business volume.”

Jenkins also appealed to the Federal Government to urgently address the challenges being experienced by the company and the maritime sector at large.

Source:© Copyright Punch Online