SIFAX expands infrastructure, portfolios to match growth projections, says GMD
The SIFAX Group, a business conglomerate with diverse investments in various sectors of the economy, has said its decision to massively invest in infrastructure and also increase its business portfolios is informed by the need to meet its growth projections, which include transiting into a mega corporation.
The group had in the last few months invested heavily in the acquisition of equipment across its various subsidiaries. This is in addition to expanding its facilities, having made a foray into other countries.
Group Managing Director of the SIFAX Group, Mr. Adekunle Oyinloye, who spoke at its mid-year press conference in Lagos, noted that the company has set a very big ambition for itself with a five-year strategic growth plan that will generate a 300 per cent increase in turnover.
He said: “As a proactive company, SIFAX Group is already preparing for the future. We have an ambition of becoming a real mega business with substantial presence globally. Our first major footprints would be in Africa. We are already in some West Coast nations while efforts are on to do more. We have a 5-year strategic plan that encapsulates our vision.
“A key part of the plan is massive investment in equipment and facilities. Across our companies, more harbour cranes, reach stackers, haulage trucks, forklifts, baggage tow tractors among others have been acquired to match our ambition as a market leader in all the sectors we operate.
“Facilities are also being expanded. For example, we have acquired two new off dock locations in Lagos so as to improve cargo evacuation from the port and provide more options for our clients to clear their consignments without stress.”
Oyinloye further said the new vision of the group necessitated a new management team, which is currently driving the business, adding that the management is delivering on the mandate of the Executive Vice Chairman of the Group, Dr. Taiwo Afolabi, which is to turn the business into a big global brand.
Oyinloye however commended the government for responding to the situation with the award of the road construction contract but urged that a more sustainable solution of linking the ports with a functional rail system would complement the road infrastructure.
Meanwhile, Managing Director, Ports & Cargo Handling Services Limited, John Jenkins had while speaking at the event, noted that the company’s container throughput for the first half of 2019 was 130,000TEUs while its general cargo volume was in excess of 100,000 tons.
“We are expecting our throughout for 2019 to be in the region of 280,000 to 290,000 TEUs on the back of an improved port access roads. Already we have crossed the 130,000 TEUs mark for the first half of the year. This figure is 275 TEUs less than what we achieved in 2018,” he noted.
According to him, major challenge confronted by the business, especially its Nigerian operation, in the first half of the year, was the traffic gridlock caused by the poor access roads around the Lagos ports.