Transportation a major setback for Botash

Transportation costs remains a major challenge for the business operations of Botswana Ash (Botash), management has said. 

Unlike other commodities whose pricing is dictated by the volatile global market conditions, Botash Operations Manager Kangangwane Phatshwane explained that market conditions are not so much a factor for their product. However, this is not to suggest that they are immune to market conditions.

“We do not experience price escalations unlike with other commodities of copper and nickel as it has been observed lately. The most challenging aspect in Botash is transportation.” Phatshwane said last week in Sowa Town where Botash had hosted the local media.

Transporting their product to the market is very costly. “We spend P300million to the South to transport soda ash and coarse salt per annum and this impact on our profit margins every year,” added Managing Director Montwedi Mphathi.

This amount is shared between Botswana Railways and South Africa’s Transnet, he explained. Road transport, said Mphathi, costs economies a lot of money more than it can be imagined. Botash uses road transport to transport their product to the North.

As part of the company’s strategic themes, Botash will look into the supply chain and logistics capability to optimise its existing supply chain and design a market strategy with logistics channels in mind. 

Part of the company’s project in line with the theme; is to accessible to customers and develop pre-packs for the market. Mphathi said they are currently concluding warehousing and delivery options in this area. Botash is also looking to set Zambia as a hub to make products readily accesible to customer and develop pre-packacks for the market.

In another development, Botash is looking to develop a new customer base in Sub Saharan Africa for soda ash and salt. The targeted markets are Mozambique, Tanzania, Rwanda, Burundi, Angola and DRC and the existing South Africa.