Freightliner Finance, a division of DaimlerChrysler Financial Services, recently financed interesting developments in the local road transport industry - they have agreed to financially back a new transport company, Ikcobrews.

The multi-million Rand deal involves the financing of 22 Freightliner Argosy trucks, with Afrit interlinks, which are being used to run the KwaZulu-Natal - Eastern Cape distribution route of South African Breweries.

This broad-based black economic empowerment initiative is centred around Ikubantu Co-operative Ltd in the Eastern Cape. Ikubantu, is funded by the public, private and donor sectors, and run a development fund to self-empower its members, who currently total 6000 people.

Ikubantu has established business units such as Ikcotar, which recently was awarded a multi-million Rand three-year road maintenance contract by SANRAL, and Ikcomills which, in a venture with Premier Foods and the Department of Education in the Eastern Cape have also acquired a number of trucks to help implement a school nutrition programme and establish grain mills and bakery plants in remote parts of the Eastern Cape.

The latest venture is the establishment of Ikcobrews which is a partnership formed between Ikubantu Co-operative Ltd, Oakley Logistics and other SMMEs to execute and implement 40% of SA Breweries’ distribution network between Kwazulu Natal and the Eastern Cape.

The consortium has been awarded a five-year contract by SAB. Freightliner Finance, financed the purchase of the 22 Freightliner Argosy trucks for this contract.


Oakley’s director Nardes Meyer said SAB consolidated its operations in a form where their Natal operation was still outside their centralised operations. “We were given the opportunity to take up 20% of the Alrode brewery distribution and 20% of the Prospecton brewery which serves the Eastern Cape. A request was to come up with a black empowerment structure that would be acceptable to both parties.”

Meyer said the Prospecton- Eastern Cape route is one of the most difficult ones from a security and geographical point of view. Oakley’s decided to tie up with Ikcobantu and build up a relationship on a long-term basis.

“The reason we decided to tie up with the group is that they are located in the area in which we will be operating. The second is the problem of theft and hijacking. As shareholders from Day 1 and having shares in the vehicles there is personal interest and this affects the bottom line - profit.”

He said the SAB distribution contract was for five years and would require the establishment of a new business venture, Ikcobrew Logistics, in which Oakley’s would have a minority stake. The contract would also require the purchase of 32 new truck-tractor trailer combinations to service the route on a 24/7 basis and would involve recruiting drivers.

“We realise that they don’t have the experience. We have the experience and the aim is the transfer of skills in the long run. We will source people from the community to become drivers. In the long term we will also employ people in the management team so they can get to know the business side as well.”

Ikcobrews, in partnership with SAB, is to launch a training academy in Mthatha which will upgrade code 10 drivers to code 14 in order to be able to qualify for job opportunities within and outside Ikcobrews. Eighty code 14 drivers will immediately be employed and more than 200 will be trained.

The first five Freightliner truck-tractors were recently handed over at the Oakley’s depot in Klerksoord, Pretoria. They were Freightliner Argosy 6x4's powered by Detroit Diesel engines. Meyer said the route demanded strong, reliable fuel efficient vehicles and with his accredited workshop staff being familiar with the engines, the choice was the Argosy.