Rwanda’s largest cargo handling facility launched

Rwanda has taken a giant leap towards transforming its logistics and supply chain industry with the launch of the Kigali Logistics Platform, the largest cargo handling facility in the country. The facility was inaugurated by the President of Rwanda, promising to save Rwandan businesses up to $50 million annually in logistics costs. In an exclusive interview with CNBC Africa, Sultan Ahmed Bin Sulayem, Chairman of DP World Group, shared insights into the vision behind the project and its potential impact on the region. Bin Sulayem revealed that the decision to invest in Rwanda stemmed from the country's strong governance, transparency, and remarkable vision demonstrated by the President. The Chairman emphasized Rwanda's commitment to sustainability, including initiatives to reduce plastic usage and carbon emissions. With its strategic location, Rwanda serves as a gateway to various African countries, facilitating efficient trade routes and connectivity. The Kigali Logistics Platform addresses the pressing need for improved efficiency in logistics across Africa. Bin Sulayem noted that over 200 million Africans reside in landlocked countries, facing challenges in timely and cost-effective cargo transportation. By establishing this cutting-edge logistics hub, DP World aims to enhance supply chain efficiency, reduce import costs, and minimize transit times for businesses operating in the region. The first phase of the project involved an investment of $35 million, enabling the facility to handle 50,000 containers, a significant capacity boost for Rwanda's logistics capabilities. Looking ahead, plans for a second phase are underway, including the establishment of a cold and cool storage facility to support perishable goods storage and distribution. The impact of the Kigali Logistics Platform is expected to drastically reduce the transit time for cargo from 14 days to a mere 3 days, driving down transportation costs and fostering economic growth in the region. By achieving economies of scale through increased container handling, the facility aims to promote higher levels of production and boost the viability of various projects in Africa. Bin Sulayem highlighted the broader investment opportunities in the logistics sector across Africa. DP World currently operates in several African countries, including Mozambique, Senegal, Mali, Algeria, Egypt, Djibouti, and Somaliland, with plans to expand into Ethiopia and Eritrea. The Chairman emphasized the need for private-public partnerships to address the substantial infrastructure gap in Africa's logistics sector. In advocating for increased transparency, governance, and rule of law, Bin Sulayem underscored the importance of creating an enabling environment for attracting investments. The Chairman cited a cautionary tale from Djibouti, where a government's breach of a signed agreement resulted in higher interest rates for investors. Emphasizing the significance of honoring agreements and upholding legal frameworks, Bin Sulayem stressed the role of public-private collaboration in driving sustainable infrastructure development in Africa. The launch of the Kigali Logistics Platform stands as a milestone in Rwanda's journey towards enhancing its logistical capabilities and fostering regional trade integration. With DP World's strategic investment and vision, the facility is poised to revolutionize the logistics landscape in Africa, setting a precedent for sustainable and efficient supply chain operations.