Continental Auto Exports — Detailed Logistics & Supply Chain

CAE has evaluated multiple shipping routes from South Africa to the United States to optimise cost, transit time, and reliability. The following table summarises the primary routes under consideration.

Section 19 · Business Plan

Detailed Logistics & Supply Chain

19.1 Shipping Route Analysis

Route	SA Port	US Port	Transit Time	Cost/Vehicle (USD)	Frequency
Route 1	PE/Ngqura	Baltimore	21–24 days	1,800–2,200	Bi-weekly
Route 2	PE/Ngqura	Houston	24–28 days	1,900–2,300	Bi-weekly
Route 3	Durban	Los Angeles	28–32 days	2,100–2,500	Weekly
Route 4	Durban	Jacksonville	22–26 days	1,850–2,250	Bi-weekly
Route 5	PE/Ngqura	Newark/NY	20–23 days	1,750–2,150	Bi-weekly

The primary shipping method will be Roll-on/Roll-off (RoRo), which is the most cost-effective and efficient method for vehicle transport. Container shipping will be used selectively for high-value or specialty vehicles requiring additional protection, or when consolidating multiple vehicles for a single destination.

19.2 Quality Assurance Process

Every vehicle processed by CAE undergoes a rigorous 150-point quality inspection programme prior to export. The inspection covers mechanical systems (engine, transmission, brakes, suspension, steering), electrical systems (all lights, instrumentation, OBD-II connectivity), body and paintwork (panel alignment, paint condition, corrosion check), interior (upholstery, electronics, climate control, infotainment), safety systems (airbags, seatbelts, ABS, stability control), and documentation verification (service history, ownership records, outstanding finance check).

Vehicles that fail any critical inspection point are either rejected from the export programme or referred for remediation before re-inspection. The quality assurance process is documented and auditable, providing a complete vehicle history file for each unit exported.

19.3 Inventory Management Strategy

CAE will maintain a strategic inventory buffer equivalent to 30–45 days of projected sales volume. This buffer serves to smooth supply chain variability and ensure consistent delivery to US customers. Inventory financing is managed through the trade finance facility, with vehicle holding costs (storage, insurance, depreciation) factored into the unit economics model.

The inventory management system will track each vehicle from procurement through delivery, providing real-time visibility of vehicle status, location, compliance status, and estimated delivery date. Automated alerts will trigger procurement orders when inventory levels fall below minimum thresholds for each vehicle category.

19.4 Port Operations

CAE will establish operational relationships with port service providers at both the Port of Ngqura (Port Elizabeth) and the Port of Durban. The Coega SEZ location provides direct road access to the Port of Ngqura, minimising inland transport costs and time. Port operations include vehicle marshalling and staging area management, pre-export inspection and documentation verification, customs clearance and SARS export documentation, vessel loading coordination with shipping lines, and marine insurance verification and documentation.

19.5 US-Side Logistics

Upon arrival at US destination ports, CAE’s US logistics partners will manage the import process including CBP customs clearance and documentation, DOT/EPA conformity verification, port-to-dealer transport via auto carrier, dealer delivery and vehicle handover, and all required import documentation and compliance certificates. CAE will establish service level agreements (SLAs) with US customs brokers and trucking companies to ensure consistent and reliable delivery performance.

This document contains proprietary and confidential information. Distribution without written consent is prohibited.