Highway

Trekker CC
Coach/Bus
Cross
Feasibility Plan

Border

Kelvin Kamalata
0814477230

Submitted for investment and Joint venture

purposes.

P.O BOX 2139

P.O BOX 2139
17 HAHNEMANN STREET, WINDHOEK-WEST. TEL: 061-241456
17 HAHNEMANN STREET, WINDHOEK-WEST. TEL: 061-241456
FAX: 061-243107
FAX: 061-243107
Email: highwaytrekker@iway.na / kelvinmzina@hotmail.co.uk
Email: highwaytrekker@iway.na / kelvinmzina@hotmail.co.uk

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

Contents
INTRODUCTION...................................................................................................... 5
PROJECT DESCRIPTION......................................................................................... 6
Background......................................................................................................... 6
Projection Definition............................................................................................ 6
Project Impact...................................................................................................... 6
Sector Description............................................................................................... 6
INVESTMENT DESCRIPTION.................................................................................7
Operations........................................................................................................... 7
Services to be Supplied.......................................................................................... 7
Target Market....................................................................................................... 7
Organization of the project................................................................................... 8
Operations Management...................................................................................... 8
Investment Plan................................................................................................... 9
Other Technical Aspects....................................................................................... 9
Financing of the Investment.................................................................................. 9
FINANCIAL ANALYSIS............................................................................................ 10
Cash Flow......................................................................................................... 10
Other Related Issues.......................................................................................... 10
MARKET ANALYSIS AND FORCASTS..................................................................10
Summary of Findings......................................................................................... 10
KEY ASSUMPTIONS OF COSTS AND REVENUE..................................................11
Financial sustainability.......................................................................................... 11
Economic Viability................................................................................................ 11
OTHER CONSIDERATION ASPECTS.......................................................................11
Route permit....................................................................................................... 11
Public Awareness and Sensitisation........................................................................11
Conclusion........................................................................................................ 12

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

INTRODUCTION
Highway Trekker CC registered Namibian corporation with registration
CC/2009/0523 since 2009. The corporation was established with the zeal to operate
Local and Cross Border Passenger transport in Namibia with focus on establishing
routes to South Africa (Cape Town), Zambia, Botswana, Zimbabwe and Angola. With
its head office in Windhoek-west at 17 Hahnemann Street, Highway Trekker CC has
established itself throughout its operation, however with the need to expand its fleet
in order to carter for its clientele.
Highway Trekker CC is a full service bus transportation solution and related services
supplier. Our clients consist of Business Men and Women, Tourists from across the
Region and beyond, Relatives and friends working across the borders of Namibia
and its neighbours and Students studying across the town/city borders and beyond
who wish to make use of our services.
The added value of Highway Trekker CC is its knowledge, know-how and
experience. Bus transportation services needs are evaluated and assessed; ideas
and solutions offered for each client to meet their individual needs.
Its introduction brought good results to the travelling public and its competitors
reduced their fares and this benefited the public especially students, tourists and
traders across the region.

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

It is in this vain that we intend to introduce a fleet of durable and latest versions of
bus/coach in order to meet customer demands.
Our focus for investment and joint venture purposes are on the under listed routes
and due to demand on the routes and that there are existing operators, we intend to
put up in phases on the following:
Phase I
Windhoek- Cape Town
Oshikongo-Windhoek-CapeTown
Rundu-Windhoek-CapeTown
Walvis Bay-Windhoek- Cape Town

Phase II
Windhoek-Lusaka
Windhoek-Johannesburg
Windhoek-Lubangu
NOTE: In this feasibility plan we shall concentrate on phase I.
PROJECT DESCRIPTION
Background
The country is experiencing some economic growth and prospects for the future are
encouraging. There has been marked growth in the transport sector. There are signs
of transport needs in the most parts of the country and the region as a whole
especially when the Walvis bay opens fully for motor traders.
Projection Definition
Highway Trekkers has been trading since 2009 with the desire to be the leading
Cross-Border and local bus/coach passenger transport provider in Namibia and

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

SADCs. The main base is in Windhoek-West with established operational points in

Cape Town and Lusaka.
Project Impact
This project compliments the current bus service providers on the Cross border
routes and regional.
Sector Description
There are a number of players on the intended route. The currently notable bus
operators on the Windhoek-Cape Town route are;

Company
Inter-Cape

Baileys

Area of Operation
Throughout
Walvis Bay

Namibia/Cape

Percentage
Influence
Town-Windhoek70 %

Throughout Namibia/Cape Town-Windhoek

30%

There are also a number of smaller operators working from a number of towns with
the largest concentration in Windhoek. These are generally small and their
catchment areas are rather limited. These often operate on local routes within towns
of major cities in the country.
The demand in most parts of the country is not being met and in some instances
customers wait for long hours in the queues before getting to their destinations.
The transport industry has a lot of potential on both the local and cross border
routes. From the market intelligence it has been established that at present there is
no single direct bus service between Windhoek and Angola.
There are a few smaller buses that operate between borders of Angola and Namibia.
INVESTMENT DESCRIPTION
Operations
The project will comprise of two 60 seater buses semi to full luxury coaches that will be
transporting passengers from:
1. Windhoek - Cape Town

Services to be Supplied

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

Highway Trekker wants to provide to the market a good reliable transport service between
Windhoek and Cape Town including all the other towns in Namibia. Some of the offering
envisaged at start up shall include at least two departures from Windhoek per week.

Target Market
Potential customers on the Windhoek-Cape Town route will emanate from the
following;

1. Businessmen and women from Zambia, Angola, Congo

2.
Tourists from across the region and beyond
3. Relatives and friends working across borders
4. Students studying across borders

5. Visitors from across countrie

Organization of the project

It is important that the following matters are given due consideration:

Maintenance of the bus be done by the dealership of the bus model since
they have specialised staff

Tyre replacement is a major concern since the buses will be covering long
distances and the wear and tear on the same is expected to be high, hence
the need for provision in our budget to mitigate the same.

It will be necessary to ensure that the bus is kept in a roadworthy condition at

all times

We intend to operate from Windhoek as the Head office and sub-offices in

Cape Town, Walvis Bay and Oshikango

Operations Management
The passenger transport business requires specialist skills. The company will need
to employee a qualified operations Manager. This is a critical position in the company
since Highway Trekker seeks to be the leading travel choice in the industry. The

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

company shall not compromise on this particular position and has so far indentified
the following:
I.

Managing Director
Kelvin Kamalata being the found of Highway Trekkers boosts with extensive
experience and knowledge of the business. Having had hands on
experiencing through establishing one on the main passenger companies in
Zambia and Namibia which is so far still on the Tanzania and Malawi route
Zambia-Namibia Express, Zambia-Tanzania Express. Behind his knowledge
is a Bachelor of Business Administration (Honours) from the University of
Namibia and a Bachelor of Arts Degree in International Relations and Political
Science from Mulungushi University in Zambia. He has traceable experience
in managing people and ensuring that there is maximum utilization of the
Human Resources in an organization.

Other Staff
Local management will compromise of Managers, Drivers, Bus attendants, Sales
reps and Agents.

Investment Plan
In order to ensure that the objectives of the projects are met the company is planning
to make the following investments;
Option 1(New Fleet)

No.
1
2
3

Description
Coach/Bus(US$300,000.00)
Working Capital
Total Project Cost

Amount
N$3,500,000.00
N$600,000.00
N$4,100,000.00

Option 2(Used Bus)

No.
1
2
3

Description
Used Bus(N$650,000.00)
Working Capital
Total Project Cost

Other Technical Aspects

Amount
N$650,000.00
N$120,000.00
N$770,000.00

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

Transport business is subject to transport and communications concerns, the

business should ensure that the the protocols governing countries are followed;

Use of Highway Trekker CC existing route permits for South Africa, Botswana
and Zambia

Financing of the Investment

The project will be financed through Joint-Venture Investment or any other available
means of financing to commence the operations.
Option 2
Debt

N$770,000.00

100%

The company is planning to get an operating lease of N$770,000.00 through JointVenture means to enable it purchase Used Buses identified. However if means allow
the Option 1 with purchase of new buses is what the company intends to have.

FINANCIAL ANALYSIS
Projected Income and Costs
Windhoek-Cape Town
Revenue per Month
Direct Costs
Gross Margin

N$360,000.00
N$100,517.00
N$259,483.00

The margins can improve depending on the slight increase in the fares and demand.
Cash Flow
Transport business is generally cash based market and in some instances
customers will have already paid days before departure.
Accordingly the company should be able to provide transport at the appointed dates
in order to fulfil the customers desires.
Other Related Issues
MARKET ANALYSIS AND FORCASTS

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

Namibia has registered growth in the bus/coach passenger transport sector over the
past years or so. This has been largely driven by the activity in the cross border
trade within SADC/COMESA/SACU regions.
The Windhoek-Cape Town has significant tourists and traders travelling there for
holiday and business respectively. The same can be said for the people travelling
and conducting business between Namibia and South Africa and Angola as it
provides easier access between Luanda in Angola and Windhoek-Cape Town via
Oshikango and Katwitwi borders pause an increase in traffic.

Summary of Findings

The route has a lot of potential for one to run a route between WindhoekCape Town or Walvis Bay Windhoek-Cape Town / Oshikango-Windhoek-Cape
Town

The route has potential to service Zambia, Congo, Angola, Botswana and
South Africa

The route poses potential to create a direct route between South Africa to
Angola

KEY ASSUMPTIONS OF COSTS AND REVENUE

Officially there is repository of data or information on bus operators. The level of
transport business can be imputed from number of people that cross the borders and
those that move between towns per day.
The company is planning for at least two departures and two arrivals per week
between Windhoek and Cape Town.
Smaller operators on the route may be able to offer lower fares but their volumes are
insignificant to effect pricing on the route.
The main risk of the project is that of competition, fortunately enough as indicated in
our research there is no competition at the moment and Namibia like Botswana
transport policy allows an operator on a new route to operate for 56 months before
another operator can be considered.
Otherwise all our assumptions are based on 100% utilization of the bus. The market
is very competitive on local routes as there are many players and that is the more
reason Highway Trekker intends to embark on both cross border and local routes.
Financial sustainability

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

The business is financially viable with the projected returns per annum, the company
should pay back many folds the original investment. Once stable, it is not expected
that business would experience any financing problems and thus should be
sustainable.
Economic Viability
The Namibian economy is poised for growth in Trade, Tourism and recreation whilst
preserving its cultural heritage. The country intends to deploy, empower and retain
effective and efficient human capital, whilst establishing and maintaining superior
infrastructure. This in return creates an enabling environment for investment
opportunities such as the one we have embarked on. Highway Trekker CC vision is
to be the World class public transport provider in Namibia and SADCs.
OTHER CONSIDERATION ASPECTS
Route permit
A route permit is necessary for the bus business. This permit confers exclusive rights
to the bus company to carry passengers within and across the borders of Namibia.
Highway Trekker CC has existing route permits to allow for immediate operations.
Public Awareness and Sensitisation
The company recognises the need to engage with stake holders. Some of the
recognised stakeholders include the bus operators, local communities and local
authorities including the Ministry of Trade and Ministry of Works and Transport
Communication.
A project of this nature requires a lot of advertising and the buses themselves will be
self advertising since they shall be labelled as Windhoek- Cape Town Express and
according to routes.
Conclusion
From the foregoing it is evident that opportunities exist for new joiners. The
economic outlook for the transport sector for the country looks encouraging to
ensure commercial viability of the project. The government policy on transport is
supportive to new investment in this sector.
The business of bus service operations has its challenges which include sourcing of
the bus and employment of qualified and licensed staff.
In conclusion this plan indicates that the routes have alot of potential and the
company since it has vast experience and skills that are required for this kind of
operation.

Highway Trekker (Windhoek-Cape Town Express) (C) 2015

Contact:
Kelvin Kamalata
Managing Director

Highway Trekker CC
P.O Box 2139
17 Hahnemann Street, Windhoek West
Email: highwaytrekker@iway.na
Cell: 0814477230