Dubai-based global operator of shipping terminals DP World inaugurated its Kigali Logistics Platform in the presence of President of the Republic of Rwanda Paul Kagame and DP World chairman and CEO Sultan Ahmed Bin Sulayem.
The facility, which has been operational since September 2018 in test mode, has an annual capacity of 50,000 twenty-foot equivalent unit (TEUs), said a statement from the company.
When operating at full capacity, it has the potential to save Rwandan businesses up to $50 million a year in logistics costs, it said.
Since the commencement of its operations in the Rwandan capital last year, Kigali Logistics Platform has reduced truck-turnaround time which used to be an average of 10-14 days to just three days, it added.
Kigali Logistics Platform serves as a gateway to the heart of Africa, connecting Rwanda to neighbouring countries including Democratic Republic of Congo, Burundi, Uganda, Tanzania and Kenya.
The facility will also access the port of Mombasa in Kenya and Dar Es Salaam in Tanzania, securing two trade gateways to the sea, said the statement.
The railway from Mombasa port in Kenya will pass through Uganda to Rwanda and also the railway from Dar Es Salaam to Kigali is under construction and will have its final cargo rail siding located at Kigali Logistics Platform.
Linking railways to the Kigali Logistics Platform has the potential to dramatically reduce logistics costs for exports and imports via international gateways on the coast. At present it costs three times more to transport a container from Kigali to Dar Es Salaam as it does to transport the same container from Dar Es Salaam to Shanghai.
Bin Sulayem said: “We believe in the economic potential of Rwanda and the African Great Lakes region. We are proud to support Rwanda in its ambitions to establish itself as a key services and trade hub for the region, and to accelerate further economic growth by sharing our knowledge and expertise in innovation and technology.”
“As we inaugurate Kigali Logistics Platform, we are delighted by the impact it has already had on businesses and the community. We look forward to building on our strategic partnership with the Rwandan government to expand the logistics and trade sector, by empowering the Rwandan people to increase the attractiveness of the country as a key trade hub in Africa,” he added.-TradeArabia News Service