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CAPITAL EQUIPMENT NEWS

JANUARY 2017

4

F

rom humble beginnings

back in 1999 with a

single Wirtgen 1000C

milling machine, Road

Milling and Sweep-

ing (RMS) today owns

a strong 21-unit fleet of milling machines,

making it the single biggest privately-owned

operator of such specialised gear in South

Africa. Founded by Cecil Aling and a business

partner at the time, today the family-owned

business is being steered by two of Cecil and

Glynn Aling’s three daughters, Leigh Camer-

on and Lesley Kafka, who share their father’s

passion for anything mechanical, but with

a premium taste, of course. Over the years,

RMS has supported the Wirtgen brand for

its milling equipment needs purely driven by

the understanding that though premium calls

for premium capital outlay, the returns, in the

long run, are massive.

Road Milling’s core business is the rent-

al of milling machines for rehabilitation of

asphalt and concrete roads. The company

operates on a national basis and has re-

cently successfully completed cross-border

contracts. “We work all over South Africa

in terms of the milling work we do. In the

past year, we have done quite a lot of cross

border work,” says Lesley Kafka, general

manager of RMS. “We still have ongoing

work in Lesotho that will pick up in 2017.

We have also worked in Namibia, Botswa-

na, Swaziland and Malawi.”

Kafka foresees increased cross-border

work moving forward as most of the South

African civil contractors spread their wings

into the rest of Africa for greener pas-

tures. This is considering that most of the

cross-border contracts RMS has are with

local South African companies doing work

outside the country. According to Kafka,

98% of the company’s cross-border work is

through the South African contracting fra-

ternity working elsewhere in Africa.

Sticking to core business

Over the years, RMS has stuck to its

core niche business of renting out milling

machines, but with a few other value adds

such as lowbed trucking services, road

sweeping, tippers and water carts. The

company now owns its own three lowbed

trucks used mostly for transporting its

rented milling machines to sites, but these

can be outsourced to any other customers

in need of lowbed trucking. However,

Kafka says sticking to the milling business

only is a difficult decision from a strategic

point of view. “We ask ourselves whether

we need to stick to our niche or diversify

the business,” says Kafka.

“Diversification has got its own pros and

cons. Sometimes you become too thinly

spread. Ours is a capital intensive busi-

ness, so to diversify you need to invest

huge amounts of capital into equipment.

Diversifying is also a bit challenging in the

sense that all of our people are focused

on milling; our operators know how to mill

and are not versed with any other work,”

reasons Kafka.

But, Leigh Cameron, financial manager

at RMS, believes that if ever the decision

to expand the product portfolio is made,

the immediate possible and closest option

would be recyclers. She believes that recy-

cling is aligned to what the company does

and will allow it to continue dealing with

the very same customer base.

RMS reports increased demand for its

PREMIUM

PAYS

SUPERIOR DIVIDENDS

Over its 17-year existence, Road Milling and Sweeping has carved itself a

niche rental business to become the largest privately-owned operator of

milling machines in South Africa. With a clear understanding that the success

of a business of this nature largely depends on machine uptime, the company

has vested its trust in premium Wirtgen milling machines over the years, a

decision that is continually paying dividends, writes

Munesu Shoko

.

Road Milling’s core business is the rental

of milling machines for the rehabilitation

of asphalt and concrete roads.