Mzanzi signs 5-year deal with Shell
On 6 July 2006, Paddy Milner, Shell LSDR, signed a multi-million rand deal with empowerment company Mzanzi Africa Logistics (Pty) Ltd to distribute Shell petroleum products to Shell customers in South Africa.

The five-year deal, worth over R120 million, is a consolidation of long-standing relations between 17 individual Bulk Vehicle Operators and Shell. After years of working as “individual operators” (BVO’s), the natural progression for growth and sustainability was for these BVO’s to combine their resources and form a single entity. Mzanzi, a 90% BEE company was created to achieve this. Paddy Milner described his joy at representing Shell management and staff in signing a deal that has culminated “at the end of a long journey from being employed drivers to empowered shareholders”. In Paddy’s words, “that is meeting 100% of the ideals of empowerment”.

Siyoyo Mehlomakulu, Mzanzi CEO, is thrilled about the deal. “We are proud to be associated with Shell as this deal provides business opportunities in ways that are sustainable, credible and of benefit to both parties and the country as a whole”.

Siyoyo worked closely with Paddy during the two years that he worked at Shell. “We were disappointed when Siyoyo advised he had decided to leave Shell, and thus are now delighted that Mzanzi have chosen Siyoyo as their CEO, as he knows our systems and culture.”

“This is our contribution towards empowering our people and equipping them to compete with others in the transport and logistics sector”, says Shell SA’s distribution manager, Dougie Zulu. “The oil transport business is very competitive, which means that new entrants face the challenge of being resourceful, effective and efficient to survive. Many owner-driver schemes in the transport industry has proven to be unsustainable due partly to the business skills of participants and the levels of capital investment involved. We want to address this issue and make this a success.”

Operations Director and former Shell employee, Vern Kenned expressed his excitement about the possibilities of the deal. “This is a great empowerment opportunity with real upliftment possibilities for a very diverse group of people and their families”. He also stressed that they would use their collective depth in experience to make a real success of the venture. “We take pride in the fact that we’re not coming in from the cold and that we have operated fatality-free and with minor / minimal incidents to the benefit of Shell. Mzanzi will strive to continue this into the future.”

Mzanzi directors Siyoyo Mehlomakulu (CEO), Vern Kenned (Operations Director), Leslie Maaroganye and Albert Mukhithi are joined by Paddy Milner, Shell LSDR (2nd from left) and Dougie Zulu, Shell SA Distribution Manager after the signing of the contract (far right).