SIFAX Group leverages on technology, forex policy

SIFAX Group has restated its commitments to leverage on the opportunities provided by its cutting-edged technology and the new foreign exchange policy of the Federal Government to shore up its earnings in the second half of this year.

The Group Managing Director, SIFAX Group, John Jenkins, at the company’s mid-year business performance review session in Lagos, noted that the period between January and June, 2016, was a very challenging period for businesses in the country, especially those with substantial interest in the logistics value chain like SIFAX Group.

He however projected an improved business performance in the second half of the year, after wading through the storm of economic recession in the first half.

He said: ‘The first half of the year has been very challenging for all businesses in the country. The previous very stringent control of the foreign exchange regime played a lot of role in the under-performance of various businesses. But things are gradually changing as the effect of the new forex policy is beginning to show and we are convinced that the second half of the year will be a lot better.”

On the company’s performance mid-year, Jenkins noted that the various subsidiaries of SIFAX Group recorded a sharp decline in business volume with an attendant decrease in revenue and profit.

“Taking into considerations the subsidiaries business performances mid-year, it’s safe to conclude that SIFAX Group has recorded between 20 per cent and 25per cent volume decline in the first half of the year 2016 when compared with the same period in 2015.”

Specifically, Jenkins noted that Ports & Cargo Handling Services, the port terminal management arm of the Group recorded a drop in vessel operations, throughput and gate activities.

“While the percentage of volume decline varied across all measuring indices but on the average, Ports & Cargo recorded approximately a 10 per cent drop in container business operations and about 50 per cent drop in volumes for general cargo goods compared with the first half of 2015.”

He also added that other subsidiaries in the inland container depot and haulage sub-sectors also recorded a not-too-cheering performance, adding that the Group expects a more robust business performance and increase market share in the second half of the year. These, he said, would be accomplished with efficient service delivery, personalized customer management system, bespoke business solutions and aggressive marketing strategy.

He said the company’s three Off-Dock terminals at Okota, Trinity and Ijora, were well utilised to ease the congestion at the Ports & Cargo terminal.

Reviwing the performance of its Off-Dock inland container depot, Jenkins said SIFAX Off-Dock recorded an improved business performance for the period under review as the throughput volume for January to June, 2016, compared with that of 2015 showed approximately a 54.11 per cent increase for the containers received into the facilities whilst deliveries improved also by 50.23 per cent.