A thriving sector with perspectives of optimising efficiency and services using ai

The logistics and freight sector in Mauritius has shown commendable expansion and adaptability, despite facing multiple hurdles. This sector remains crucial for the economy, facilitating the efficient movement of goods and services, both locally and internationally.

Velogic Holding Company leads the sector with a turnover of Rs 3,428.3 million and a profit before tax (PBT) of Rs 288.5 million for the financial year ended June 30, 2023. Celero Ltd follows with a turnover of Rs 1,204.8 million and a PBT of Rs 114.3 million for the year ended December 31, 2023. FTL Group reported a turnover of Rs 1,200.5 million and a PBT of Rs 72.2 million for the year ended June 30, 2023. MFD and Somatrans Bollore Logistics Limited also performed well with turnovers of Rs 1,098.3 million and Rs 934.0 million, respectively, and PBTs of Rs 73.2 million and Rs 62.7 million.

However, the reshaping of supply chains and tense geopolitical situation since the pandemic continues to affect even some main companies. Logidis Limited reported a turnover of Rs 777.9 million but faced a loss of Rs 74.7 million for the year ended June 30, 2023. Ariva Ltée and Cargotech also faced challenges, with turnovers of Rs 731.7 million and Rs 723.3 million, respectively, and PBTs of Rs 57.1 million and Rs 62.8 million.

The logistics and freight sector is influenced by global and regional trends. According to a 2023 report by DHL Freight, the sector is expected to see increased adoption of artificial intelligence (AI) and automation to improve efficiency and sustainability. The Asia-Pacific region remains the largest market, with North America projected to be the fastest-growing region between now and 2027.

Technological advancements, globalization, and the surge in e-commerce are driving growth in the sector. To date, the logistics and freight sector in Mauritius is on a positive trajectory, with leading companies demonstrating strong performance. However, challenges such as technological adaptation, regulatory changes, and economic fluctuations need to be addressed to sustain growth. The sector’s future will depend on its ability to embrace innovation and adapt to global trends.