Family-owned firm flourishes in transport sector

Had things gone according to her expectations, Vanessa Evans would be a policewoman today. But as the managing director of multi-billion Rongai Workshop and Transport Limited says, fate sometimes overrides passion.

Today, she is a successful business woman who has competed with and outshone many in her line of business, forcing them to review their trade strategies.

At 52, Vanessa Evans oversees the business that her late father built on a shoestring budget nearly seven decades ago. He passed on in 2010.

“This business was founded by my late father Gordon Eccles in 1947 in Rongai, Nakuru, originally as an agricultural workshop supplying and servicing machinery and building trailers for the rural farming community in the area,’’ she told the Business Daily.

Three years later, Mr Eccles diversified into transportation of milk and farm produce before he ventured into refurbishing old Leyland vehicles to transport his sisal from Rongai to Mombasa.

Later, he recruited drivers, mechanics and body builders to assist in running the business that now employs 230 people directly. Last year, the company had Sh900 million in turnover.

“My father was an honest man who was keen on business ethics and whose legacy has made the company remain relevant in the market today. He paid attention to customer needs,’’ says Ms Evans.

But how has Ms Evans succeeded in running a family business in an environment where enterprises are beset by wrangles when their founders die?

“The succession had started earlier before my father’s death,” she says. “He had stressed how best he would like his investments to be run and everyone in the family was committed to that,” Ms Evans says.

Although Mr Eccles left no will, his deep passion for smooth succession bound family members together. Ms Evans has three other sisters and the company is wholly family-owned, with Mrs Eccles as the largest shareholder.

It has a fleet of 85 vehicles but the old refurbished Leyland’s are no longer the backbone of the fleet. It has also acquired more than 50 ERF tractors. Today, the Rongai company moves 12,000 tonnes of cargo per month across East Africa.

Finance and marketing director Ritul Bahal says much of the company’s development is funded by retained profits, but when an expansion opportunity arises, the firm applies for short term asset financing.

The company was last year featured among the top 100 mid-sized companies in a survey conducted by the Business Daily. Ms Evans says the rating gave their enterprise a new impetus and a stronger market.

“The experience was humbling and timely. It moulded the credibility of Rongai company more effectively and gave us strong affirmation on the services we offer,’’ she says.

It has won numerous other awards, including Best Commercial Vehicle Operator, Best Tax Payer Operator in the Rift Valley Province, Comprehensive Workplace Health Programmes and the Road Safety Awards.

Ms Evans says that strong manpower and teamwork underline the firm’s success. But she laments on the rules imposed by the industry regulators, terming them unfriendly.

“Kenya has adequate regulatory framework to control the industry axle weight, but there is arbitrary and ineffective enforcement that has somehow stalled the industry, with cartels minting millions from the laxity of the involved officials,’’ she says.

Rongai’s headquarters are in Salgaa in Nakuru, but the company has a branch in Mombasa that houses the container yard.

In dealing with business challenges, Ms Evans says:

“I have learnt to empower people through offering leadership skills. That has really helped our company to withstand hard times in the market.’’

But she admits that her hands are not yet full. With the huge demand for their services in the East Africa region, more work lies ahead.

“Necessity is the mother of invention and hard work is next to godliness. We are optimistic to open a new branch in Kampala and Tanzania to serve our clients effectively,’’ says Ms Evans.

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