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Kigali Logistic Platform to boost international trade and competition in external market.

Kigali, 16th January, 2016 - The Ministry of Trade and Industry has signed a concession agreement with Dubai Port World which will be responsible for developing and operating the Kigali Logistics Platform (KLP). With benefits for the local economy, the move is also expected to boost international trade and competition in external markets.

The KLP refers to a defined inland location for the consolidation and distribution of goods that has functions similar to those of a seaport, and which includes customs clearance services.

Functions that could be expected to be typically present at the KLP include, inter alia, container and break-bulk/bulk handling and storage facilities, space for stakeholders dealing with freight transport (for example, freight forwarders, shippers and transport operators) and the provision of accompanying services such as customs inspections, tax payment, maintenance and repair, banking and ICT connections

Speaking at the signing ceremony of this agreement, The Minister for Trade and Industry, François Kanimba said that this agreement will help to reduce transport costs and increase profits for businesses. 

“There are cases where offloading containers takes almost the whole week, forcing truckers to make only two trips per month. But with this new infrastructure, the trucks will do as many as five trips per month. This will surely reduce transport costs and increase profit for businesses,” Kanimba told journalists.

“The KLP is not only expected to improve the existing logistics infrastructure in Rwanda, but leveraging its central position will also help to position platform as a transit hub for neighboring countries,” he added.

Suhail Albanna, Senior Vice President and Managing Director of Dubai Port World for the Middle East and Africa region, said that the preliminary study shows that at least $30 million will be needed to establish the Kigali Logistics Platform.

“Good leadership and the friendly business environment growing in Rwanda attracted our interest to this infrastructure investment,” added Suhail.

He went on further to state, “we bring to Rwanda world-wide expertise and knowledge of the logistics arena; it is an encouragement to the business and export sector to be able to globally compete”.

Rwandan Economy to benefit substantially from the KLP

The move to establish the KLP will create a logistics hub in Rwanda and help to provide a consolidated volume of imports.  With this infrastructure, the turnaround time of trucks and containers is set to reduce significantly, thereby reducing associated transport costs.

Moreover, the logistics hub will consolidate common services for vehicle parking, container stacks and ancillary facilities. Additionally, it will bring together stakeholders in the logistics industry.

The KLP will also provide a warehousing complex creating synergies with the other infrastructure and allow manufacturers to access value added services and solutions for inputs and finished products at one location. 

Approximately 13ha of land in Masaka, Kigali has been booked and expropriated by The Ministry of Trade and Industry for the establishment of the KLP.

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