Cryostead Logistics (Pty) Ltd Business Plan › Section 5 › Business Model & Revenue Strategy

5.1 Revenue Streams

Cryostead’s revenue model is structured around three primary income streams, designed to provide a blend of predictable base revenue and margin-enhancing ancillary income:

Figure

5.2 Contract Structure

The Company will pursue a deliberate contracting strategy designed to balance revenue certainty with pricing optimisation:

• Anchor Tenants (40–50% of capacity): Long-term contracts of 12 to 24 months with minimum volume commitments, providing a stable revenue base. Pricing includes annual CPI-linked escalation clauses.

• Medium-Term Clients (30–40% of capacity): Contracts of 6 to 12 months with food processors, retail suppliers, and pharmaceutical distributors, offering flexibility while maintaining reasonable revenue visibility.

• Spot/Seasonal (10–20% of capacity): Short-term storage for seasonal agricultural products, export surges, and overflow demand from competitors, priced at a premium to contracted rates.

5.3 Pricing Strategy

Pricing has been benchmarked against prevailing market rates in KwaZulu-Natal and adjusted for the facility’s superior energy efficiency, technology capabilities, and service levels. The Company targets a modest premium of 5 to 10 percent above commodity cold storage rates, justified by measurably lower product loss rates, superior reporting, and value-added service integration.

All contracts include annual price escalation provisions linked to the Consumer Price Index (CPI) or a minimum of 5 percent per annum, whichever is greater, ensuring revenue growth keeps pace with cost inflation.

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