1. Executive Summary
PAWALOGIX is a Boksburg; Gauteng (South African) based trucking company that aims to be one of the largest trucking companies in RSA. PAWALOGIX is initially focusing on the mining industry with plans to diversify with new industries served. PAWALOGIX has chosen the trucking industry as the growth prospects are encouraging and stable, with trucking dominating the freight industry in this country. PAWALOGIX will provides logistics services for mines, construction companies, quarries and town councils across South Africa ranging from Mining Equipment, Coal, Zinc, Chrome and other bulk material as well as Sand commodity.
PAWALOGIX wishes to secure a term loan of € 6,000,000 (Six Million Euros).
PAWALOGIX wishes to secure funding in a form of Debt Loan, Convertible Note, Private Equity, Government Grants, and Angel Investment, Combination Of Debt & Equity or any other funding model which will suite the Investors.
2. Services
PAWALOGIX will offer both for-hire trucking as well as private carriers. Most of our business will be derived from the mines and private carriers. For the private carrier segment, truck load (TL) and less than truck load (LTL) will be offered at an early stages of the business. PAWALOGIX services will be especially attractive to the mining industry, as participants in that industry typically use referrals, reputation, and customer service as purchasing variables.
Customer Segments
PAWALOGIX will serve four different market segments. The first, as mentioned earlier is the mining industry. This segment is growing at an annual rate of 3% with 136 potential customers identified. The second segment is the construction industry with a 5 % growth rate and 54 possible customers. The regional mines industry is the third with a 2% growth rate and 66 customers. The last segment is a catch all "other" segment growing at 3% and 132 customers.
Management
PAWALOGIX is led by an enthusiastic entrepreneur called Mandla Magagula, with 15 years experience in the trucking industry. Mandla Magagula resume will be provided on demand for your perusal and ease of references. Over and above the Director, we plan to employ on permanent basis, suitably qualified and experienced individuals who includes (but not limited to) Accounts Manageress, Human Resource Manageress, General Manager, Operations Manager, Billing Clerks, Driver Trainers and Drivers to boost our workforce.

• Have Import & Export Licenses
• Fully compliant with SARS
• Fully compliant with CIPRO
• Have two direct contracts with mines

PAWALOGIX intends to serve businesses in the Mpumalanga, Gauteng, Northern Cape, Western Cape Provinces and Durban South Africa with truck-based loading services. We also plan to do business in the SADC Region as per research and methodology provided.
Over the first three years of operations, PAWALOGIX will seek to meet the following objectives:
 Establish bases in Mpumalanga, Durban, Gauteng and Northern Cape.
 Purchase 30 x 26-wheeler trucks with tri-axle super link site tipper trailers, taut liners and flatbeds trailers to avoid limiting our selves over commodity we can haul.
 Hire 35 full-time truck drivers
 Achieve strong annual revenue based on 1.6 million kilometers of hauling in the third year

2.2. Mission
The mission of PAWALOGIX is to be the leading trucking company servicing South Africa. PAWALOGIX will simplify distribution of goods for South African and SADC mines, becoming their partner in operating efficiently and reliably. PAWALOGIX will use management of logistics, on-time, accurate deliveries from destination to destination in South Africa and SADC Region, and partnerships with distribution centers and warehousing businesses to achieve its goals.
Our mission statement is: "We endeavor to understand our customers' business so well as to be able to offer comprehensive solutions to their problems."
PAWALOGIX is built on the assumption that the transport logistics of quality conveyance and the presentation and delivery of good service technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect. Smart business people who aren't computer hobbyists need to find quality vendors of reliable services, after-sales support, and service. They need to use these quality vendors as they use their other professional service suppliers, as trusted allies and PAWALOGIX is such a vendor. It will serve its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We intend to make sure that our clients have what they need to run their businesses as well as possible, with maximum efficiency and reliability. Many of our information applications and technical support is mission critical, so we intend to give our clients the assurance that we will be there when they need us.
PAWALOGIX offers a new type of logistical experience because we plan to deliver more than the customer's expectations for both the client and their respective clients. With this new form of planned service delivery standards envisaged by our company, the client doesn't have to know anything about transport logistics or terminology to have a clear understanding of what the end delivery result will be like.
2.3. Keys to Success
The keys to success in the trucking business are:
1. Robust communication systems between drivers, bases, and clients
2. Setting delivery schedules that can be met i.e. setting the right expectations
3. Hiring and retaining reliable, safe drivers
4. Understanding what clients are trying to achieve, and helping them find the right distribution solution to create long-term relationships.
5. Identification of several niche markets and implementation strategies. Along these lines the company intends to implement personal selling and direct marketing strategies to the target markets. Our personal selling marketing strategies will rotate around keeping in touch with food manufacturing, mining houses, non- consumables manufacturers and government bodies for major clients and word-of-mouth for more PAWALOGIX progress.
Our key success factors will include the following:
Excellence in fulfilling the promise: completely confidential, reliable, trustworthy expertise and information. This dictates that we have the latest technology and software which shall be used by our Logistics Managers to illustrate delivery end results.
 Uncompromising commitment to the quality of the work: that is, quality data and information used in our service knowledge, information and solutions.
 Developing visibility to generate new business leads.
 Leveraging from a single pool of expertise into multiple revenue generation opportunities: Logistics consulting, project consulting, market research, and market research published reports.
 Successful niche marketing: we intend to find and target the quality-conscious customer in the right channels, making sure that the customer will find us through aggressive marketing.
 Timeous response to client's deliveries: we cannot afford to delay the client's deliveries for whatever reason as this will have a negative bearing on our image and reputation, including future business. We need to be continually communicating with the client.
 Marketing know-how: in an increasingly competitive market there is need to aggressively market our business and the services
 We provide so as to be continuously at the top of our prospective and current clients minds.
 Entrepreneurial Flair: market volatility and increasing duplication of business ideas advocates that we continuously keep abreast of new trends and our competitors.
In addition to the above mentioned, we also need:
1. Provide a service that is technologically superior to our competitors.
2. Utilizing a diverse staff of drivers and billing clerk to provide a wide variety of service styles.
3. A large array of connections.
4. Differentiate from box-pushing, price-oriented businesses by offering and delivering service and support - and charging for it.
5. Increase gross margin to more than 30%.
6. Increase our service to 20% of the total sales by the third year.

South African commercial trucking industry serves as a key link between raw material suppliers, manufacturers, wholesalers, distributors, and retailers in most industries. According to the American Trucking Association, the industry includes dry van, flatbed, refrigerated and bulk/tank trucking over short-haul up to 100 kilometers, medium-haul 100 to 250 kilometers, and long-haul 450 kilometers and up.
PAWALOGIX has an opportunity to entrench its competitive position in the regional transportation market by selectively focusing its target market on various industries. The company has already had experience in servicing such clients through the experience obtained from logistics experience the manager received and it believes that there is a growing demand for reliable transportation solutions in various customer segments.
PAWALOGIX will compete in the market for medium and long haul site tipper trucking in South Africa. This market serves businesses ranging from the conveyance of coal from coal mines to power stations. Customers who frequently require site tippers generally have the appropriate-sized loading dock for the standard site tipper trailers cargo area.
PAWALOGIX will provide its service to clients who are looking to maximise their profits by providing them with transport logistics necessary for their day to day running of their business, as well as State Owned Agencies Eskom and Transnet etc. in the domestic and international markets in procument. Although we will cater to a relatively broad scope of customers, the company will decide what the target market is based on services and trends experienced in the initial months of operation.
We are today experiencing a decline in the economy of unsurpassed nature. Despite the relaxation of foreign exchange policies and macro-economic policies geared towards attracting foreign investors into the country. The fiscal and monetary policies of the government geared towards maintaining growth with social justice have largely failed to contribute towards the improvement of the South African economy.
The current drive and emphasis by the government on diversification of the industrial base away from the minerals sector presents an opportunity for PAWALOGIX to make a valuable contribution towards achieving this goal. This will result in implementation of modern market research techniques and transfer of knowledge. Having undertaken a thorough and comprehensive research of the market (both locally and SADC), we realized that there was a need for a specialized logistics service firm that focuses on delivering the right service after care that are tailored to the client's needs. Though there are businesses providing this kind of service and providing the same delivery equipment currently on the market, some of whom have been in existence for a relatively long period of time, we believe that there is a market need for one, ourselves in this instance that particularly focuses on customer satisfaction and at a very minimal price tag. We intend to continue to provide service of extremely high quality -- something that cannot be over-emphasized in the international arena with the current drive towards globalization.
We appreciate that entering such a market is not a bed of roses and we intend to implement an aggressive marketing strategy, well supported by the other business functions. The above prognosis influenced our decision to enter the market.
The target customer owns a medium business, and is generally dissatisfied with the revenue that the business is generating, or is dissatisfied with the daily management of their business. The customer is likely to operate a business worth between € 409,666 and € 682,593 with growth rates of between 1-10%, and even a negative growth rate.
Market growth, that is, the predicted growth in the small business sector within the Johannesburg Metro area is expected to be around 3% per year. This may increase due to additional Government lending programs designed to match the strengths of research and faculty grant, with the needs of the market and small businesses willing to take new products to market. Regardless of the market growth, the company's intended customer base is far more dependent upon service needs, and a solid reputation of Mr. Mandla Magagula, he is well respected within the community, various business sectors and has built a number of relationships with high profile individuals. PAWALOGIX will focus its marketing budget on a selected industry niche. A narrow-served market focus will help strengthen the company's reputation of a reliable transportation services provider and will generate favorable referrals.
The major customer segment the company is focusing on is the mining industry. Companies in this segment have varying needs, and PAWALOGIX has already gained valuable experience serving such customers. The company management believes that by acquiring its truck fleet it can capture clients and provide better service these clients.
PAWALOGIX will begin by focusing specifically on the segment of mining in Mpumalanga and Durban provinces, expanding after the first year to the entire intended nine provinces. By serving mines, PAWALOGIX can provide an affordable logistics solution for new and growing mining sector by purchasing their own trucks.
Raw material suppliers sometimes require flatbed or bulk/tank trucking which will also is an initial service offered by PAWALOGIX and wholesalers often have their own trucks. These segments are expected to yield some customers, but by focusing first on the middle of the supply chain with manufacturers, PAWALOGIX will be introduced to suppliers and distributors who may require their services without having to engage in full marketing campaigns to these segments.

If maximum raised: Pawalogix is a fully compliant South African based seed business with two direct contracts from mines to provide transport logistics. The funds will be used to purchase 30 x mechanical truck tractors with 40 tonne site tipper trailers, working capital and other assets. Detailed loan breakdown below:
Loan required is broken down as follows:
Cash required will be used to fund the months of operation before cash flow breakeven is achieved and to allow for adequate cash reserves to reduce the risk of running low on cash if targets are not met. Other current assets include office supplies, software for accounting, scheduling, and resource management and light equipment. Long-term assets include:
30 new 26-wheelers, estimated at € 170,648 each including trailer combination. The business will purchase new in order to better ensure that deliveries are made on time and that the usual risks of aging equipment are avoided.
€ 51,194, 00 is budgeted for 2 x 1- tonner bakkies for transporting spare tyres in case of emergency.
A further € 3,413 is budgeted for the purchase of 10 spare tyres for truck tractors and trailers to keep abreast with emergencies and maintainace.
An additional € 45,051 is budgeted for satellite-tracking equipment for truck, and € 17,064 is budgeted for office furniture.
Other long term assets include: 6 x light vehicles which will be used by Management for their day to day running of the business and the budget plan for that is estimated at € 255,972.
The business will also purchase a property which will be used as both office space and truck park. This property will have at least truck wash bay, service bay and security watch bay. This property will be zoned for business and fenced for security reasons and also have proper asphalt and the budget plan for the property including office space partition and asphalt is estimated to cost € 341,296. PAWALOGIX will also purchase a heavy tow truck in case of a breakdown which requires the truck to be towed to the yard or to the Dealership and the budget for that is estimated at € 273,067.
Lastly, a 22 seated stuff bus will be purchased to transport drivers between shifts and the budget for that is € 54,607.
TOTAL FUNDING REQUIRED: € 6, 000, 000

My email address is mandla.magagula42@gmail.com

If minimum raised: Should we not be able to raise the maximum required loan. We have been approved for funding by a reputable Investor subject to us providing a Loan Surety Bond and have an Insurance Company willing to provide such a Loan Surety Bond which will result in funds being disbursed to our account by the willing Investor. We will refund the requested minimum € 95,000 with negotiable interest rate of up to 20% within 60 days upon funds disbursement.