Intercity STC, GN Logistics sign pact
Intercity STC (ISTC) and GN Logistics, a subsidiary of Groupe Nduom, have signed a partnership agreement that hands over the management of the courier aspect of the state transport company to the latter.
The five-year agreement which is subject to renewal is expected to bring GH¢230,000 to STC monthly and GH¢7,000 in indirect savings from operational cost.
As part of the terms, ISTC will put its fleet and parcel centres at the disposal of GN Logistics while the private enterprise delivers parcels at the doorstep of customers. It will also introduce technological innovation that allows parcels to be tracked with the benchmark of international couriers.
At a ceremony to seal the commercial relationship, the Managing Director of ISTC, Nana Akomea, said the contract between the two parties was “a classic example of public private partnership where the weight of the public sector is going to be combined with the energy, ingenuity and market responsiveness of the private sector”.
While Nana Akomea signed the document on behalf of ISTC; the Head of Business of GN Logistics, Mr Benjamin Hyde, endorsed it for his establishment.
The ISTC boss said his outfit was confident that the partnership would work for the mutual benefit of the two companies and consumers who would want their parcels to be delivered quickly, efficiently and cheaply.
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Nana Akomea said the STC chose GN Logistics after careful deliberations which involved more than 12 companies that applied.
“After a series of engagements, the management and board of STC agreed that GN Logistics’ proposal represented the best value for money. We hope our parcels division will receive state-of-the-art logistics to deliver value to the customer,” he added.
He said the benefit for GN Logistics would include getting the support of the ISTC brand that had been in existence for more than 50 years. Additionally, GN Logistics would have access to all STC parcel outlets in Ghana and abroad.
Currently, STC’s international routes are Accra to Abidjan, Ougadadougou, Lome, Cotounou and Lagos, with Niamey expected to come on board soon. In Ghana, STC operates more than 30 routes.
Currently, its fleet is about 80 but Nana Akomea said more than 150 extra buses would be added to the company’s fleet before the end of the year.
“They are getting a guaranteed space that would deliver parcels in. We hope that with goodwill on all sides this business should be profitable to both parties,” he added.
Nana Akomea said the company would also be opening terminals at Madina, Kasoa, Kejetia and Sofoline as part of its expansion projects.
He added that the company was in the process of engaging partners for all its departments, including valuation and driving school, with the backing of technology to turn those departments into profitable ventures.
Mr Hyde, for his part, said the partnership was an opportunity for GN Logistics to grow its business in the area of parcel delivery which was one of its operations, adding that as the private sector was the engine of growth, for any business to win in this competitive environment, it had to be private-sector driven.
“At the end of the contract, it would become necessary for STC not to consider any other business but rather renegotiate STC to get the benefits they required,” he said.