TitanCrete Readymix — Fleet & Logistics Strategy
The fleet and logistics strategy — the mixer and delivery fleet, the delivery radius and scheduling, and the logistics model underpinning on-time supply.
Section 9 · Business Plan
Fleet & Logistics Strategy
The fleet and logistics strategy — the mixer and delivery fleet, the delivery radius and scheduling, and the logistics model underpinning on-time supply.
In ready-mix concrete, logistics is not a support function — it is
the product. The company’s decision to own and professionally manage its
fleet, rather than rely on third-party haulage, is central to protecting
margin, controlling delivery reliability, and defending the two-hour
placement window that defines the market.
9.1 Fleet build-out
| Asset class | Role | Year 1 | Year 3 | Year 5 |
|---|---|---|---|---|
| Truck mixers | Concrete delivery | 20 | 48 | 75 |
| Concrete pumps | Boom & line placement | 4 | 9 | 14 |
| Tipper trucks | Aggregate & bulk haulage | 6 | 14 | 22 |
| Tankers | Cement & water transport | 3 | 7 | 10 |
| Total fleet | 33 | 78 | 121 |
Table 16. Fleet scales to 121 vehicles by Year
5, with mixers and pumps internalising the most service-critical
logistics.
9.2 Telematics and dispatch
Every vehicle is fitted with telematics, and dispatch is managed
through an integrated platform that sequences batching, loading and
delivery against live order books. This yields measurable benefits:
higher asset utilisation, lower fuel and maintenance cost per cubic
metre, reduced waste from returned or expired loads, and the
on-time-in-full performance data that wins and retains framework
contracts. Logistics cost is held at roughly 8.5% of revenue at launch,
improving toward 7.6% by Year 5 as routing density and fleet scale
improve.
9.3 Asset financing
Fleet is a natural candidate for asset-backed finance, and the
company funds a substantial share of its vehicle and equipment growth
through instalment-sale and leasing structures secured against the
assets themselves, rather than from scarce equity. This is the principal
reason the true capital programme exceeds the headline raise: expansion
finance of approximately R225 million is drawn progressively to fund
fleet and plant growth, amortising over the useful life of the
assets.
decision, not a vanity one
Outsourced haulage would lower the opening capital requirement but
would surrender control of the company’s single most important service
variable and expose margin to third-party rate inflation. By owning and
telematics-managing the fleet — and financing it with asset-backed debt
rather than equity — TitanCrete converts a cost centre into a
competitive moat while keeping the equity cheque focused on the plant
network.
9.4 Maintenance and fleet replacement
Mixers and pumps are depreciated over approximately eight years, and
a disciplined preventive-maintenance regime — supported by
telematics-driven condition monitoring — protects uptime and residual
value. Replacement capital is embedded in the growth-capex programme,
ensuring the fleet does not age into unreliability during the hold
period and that residual values support the asset-finance security
package.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of TitanCrete Readymix South Africa (Pty) Ltd.