• Saturday, February 24, 2024
businessday logo

BusinessDay

Red Express introduces GSA services in expansion push

Red Express-logistics

Lagos-based logistics and cargo generating company, Red Express Plc, has ventured into cargo General Sales Agent Services (GSA) as part of its business expansion strategies.

The service, which was introduced recently, would help connect passenger baggage and packages from one airport location to another at a faster rate.

The company’s Managing Director, Olusola Obabori, noted that the introduction of the new service would enable the logistics firm expand operations to other neighbouring countries like Niger Republic, Benin Republic and Burkina Faso, adding that plans are underway to expand operations in West-Africa.

“We are a company focused on growth, and part of our growth platform for the current financial year is to work to a large extent with airlines on cargo consolidation both locally and internationally” said Obabori.

He stated that the company had plans to invest in core aviation practices in the future, but wanted to partner operating airlines at the moment to consolidate on its cargo services.

The company’s foreign business is majorly done on the FedEx platform, and has Red Star Freight that is into major cargo movement from Nigeria to other nations across the globe.

Mudiaga Okumagba, Red Star’s Chief Operating Officer, Red Star Freight, explained that the company was fully a domestic organization and managed by Nigerians, adding that it was a licensee of American-based FedEx, which enabled it to ship goods and cargo through the FedEx network, and got GSA license two years ago.

“We have partnered Aero Contractors, and we hope to work with other domestic airlines in a couple of months. Also for the international routes, we hope that before the year ends, we will have something to do with Lufthansa Airline” said Okumagba.

Related News

Recall in November 2018, the company extended presence to Burkina Faso through Red Star Burkina Faso Office, to carry out pickup and delivery of time-sensitive and time-definite shipments within the West African nation.

The logistic and cargo generating firm was appointed Licensee of FedEx and TNT in Burkina Faso, and was given the power to handle all FedEx and TNT inbound and outbound packages in Burkina Faso including, but not limited to pickups, deliveries and customs clearance of courier services and bulky freight packages.

Review of the company’s unaudited earnings report for nine months ended December 31 2018, showed that revenue surged 27 percent to N2.68 billion from N2.1 billion reported in the previous corresponding period. Proceeds from cargo accounted for 57 percent of total turnover.

Red Star reported increased turnover in each business segment except logistics which contracted 13 percent. Receipts from cargo business jumped 43 percent, logistics upped 27 percent, and freight segment grew 5 percent.

The company’s net income skyrocketed 73 percent from N71.2 million to N123.6 million in the first nine months of its financial calendar, buoyed by strong revenue growth, elevated other income and reduced operating expenditure.

Red Star Express Plc works in air express service, provide transportation, warehousing and other supply chain management services.

 

Israel Odubola