Polar Nexus Integrated Cold Storage Business Plan › Section 7 › Products & Services

Polar Nexus generates revenue from three complementary streams. This
structure diversifies income, raises the yield per pallet position, and
increases customer stickiness — value-added services in particular are
difficult to replicate in-house and create high switching costs.

7.1 Storage rental

The foundation of the business is rental of pallet positions across
four temperature regimes — ambient, chilled (0–4°C), frozen (−18 to
−25°C) and a dedicated blast-freeze capability. Storage is billed per
occupied pallet position per month under contract or ad-hoc terms. A
flexible racking design (combining mobile, drive-in and selective
racking) allows the temperature mix to be re-balanced as demand evolves
between chilled and frozen, protecting utilisation across seasons and
customer cycles.

7.2 Handling and throughput

Every pallet that enters and leaves the facility generates handling
revenue — receiving, put-away, picking and dispatch. Because perishable
stock turns several times per year, handling is a substantial and
recurring income stream that scales with throughput rather than just
static occupancy. Dock management, cross-docking and transport
coordination round out the handling offer, positioning Polar Nexus as a
flow-through hub and not merely a static warehouse.

7.3 Value-added services (VAS)

The highest-margin and fastest-growing stream comprises services that
transform the facility from storage into an integrated logistics
platform:

• Blast freezing to rapidly arrest deterioration
  and lock in product quality for export and processing
  customers.
• Case and unit picking, kitting and repacking for
  retail and QSR replenishment.
• Labelling, re-palletising and packaging to meet
  retailer and export-market specifications.
• Quality inspection, grading and sampling on
  intake and dispatch.
• Export documentation, traceability and compliance
  support for outbound consignments.
• Real-time telemetry and reporting giving
  customers visibility of temperature integrity and stock at all
  times.

VAS revenue is modelled to grow from roughly 15% of total revenue in
Year 1 to about 22% by Year 5 as the service catalogue matures and
customers consolidate more of their operations on site.

Figure 9

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 Polar Nexus Integrated Cold Storage (Pty) Ltd.