HRMP Logistics CEO Musa Makhunga
Logistics company HRMP has inaugurated a R17.5-million warehouse expansion at Dube TradePort (DTP) TradeZone 2, in KwaZulu-Natal.
For the past six years HRMP, which specialises in the transport of heavy-duty break-bulk, has operated from a leased warehouse at DTP TradeZone 1. However, with the ongoing expansion of its business across the value chain, acquiring a 5 600 m2 site through a notarial lease to build its own warehouse became a viable option.
HRMP Logistics CEO Musa Makhunga highlighted the advantages of DTP’s leasehold model and support from Ithala Development Finance Corporation in funding leasehold property development.
He pointed out in a statement that leasehold ownership enables the right to use a property for a set period, providing similar benefits to ownership without the upfront cost of land purchase.
He said the model was often misunderstood, but that it offered significant benefits for business growth and development.
Leasehold ownership means that an entrepreneur can develop a business without buying the land upfront, instead, at the end of the long-term lease, giving the land and premises back to the original owner.
The new warehouse signifies HRMP’s evolution from a micro into a small- to medium-sized business.
“From the first time I contacted DTP in 2017 looking for warehousing, to now, they have worked with us finding solutions to our challenges.”
Established in 2018, HRMP Logistics had two employees, leased 2 000 m2 of warehousing at DTP TradeZone 1, and hired vehicles from other logistics businesses, including DTP's AiRoad.
Today, the company employs ten people, has its own premises, and five trucks capable of transporting up to 34 t of cargo each.