Rwanda launches phase-I of East Africa’s first-ever inland port
Rwanda is launching East Africa’s first-ever inland port built in Kigali making landlocked countries free from market barriers.
October 21, 2019: Rwanda has launched East Africa’s first-ever inland port in Kigali making landlocked countries free from market barriers. Global port operator DP World and the government of Rwanda have set up a state-of-the-art logistics hub, located 20 kilometres from the capital, close to the international airport. The facility was inaugurated by Rwandan president Paul Kagame.
The Dubai port operator established an $80 million project subsidiary in Rwanda which is meant to reduce on the cost and duration traders have been incurring to move their goods from the main ports in Mombasa in Kenya and Dar-es-Salam in Tanzania. Rwanda is working closely with Tanzania on a new standard gauge railway from Dar es Salaam to Kigali that will add a direct rail corridor to the two existing road routes, further improving connectivity for containers and bulk goods.
We are pleased to have inaugurated our Kigali Logistics Platform which could save Rwandan businesses up to $50 million a year in logistics costs. (1/3) https://t.co/joPAym7C72
— DP World (@DP_World) October 21, 2019
The first phase of the port launched includes a container yard and goods storage facilities, space for cargo forwarders, shippers and transport operators. It hosts a 12,000 square metres container yard with a capacity to hold 50,000 units and two 19,600 square metres warehouses with an estimated annual capacity of 640,000 tonnes each.
A statement released by the United Arab Emirates-based Dubai Ports World in November last year said the Kigali port will help Rwanda serve as a regional hub for intra-African trade, despite being a land-locked country. DP World has signed a 25-year concession agreement with the Rwanda government to construct and manage a facility dubbed 'Kigali Logistics Platform' (KLP).
The port provides a platform for traders to boost their accessibility to the global market and enhance their business improvement through a one-stop-shop.
Currently, the cost of transport of a 20-foot container from Shanghai in China to Mombasa port costs between $500 - $1,000, whereas transport cost for the same container from Mombasa to Kigali varies between $3,000 and $4,000. The introduction of this facility will serve the inland logistics problems, delays and cost by providing a one-stop-shop for all logistics requirements and cargo services.
The facility offers container handling, stuffing and de-stuffing, warehousing, storage, and other cargo handling services. Imports from overseas can be routed through the KLP for onward distribution to the surrounding countries of Uganda, Tanzania, Burundi and the DRC, a growing region of over 40 million people.
Customs officers at the incoming port use highly advanced e-tags, to seal incoming containers. These active RFID tags allow real-time tracking of cargoes on route to Kigali, for complete transparency and added security. A dedicated customs team inside DP World Kigali will handle final customs clearances.
DP World Kigali is also establishing a road transport solution that will allow clients to fully outsource their end-to-end logistics needs, including international shipments, clearances, repacking and final deliveries.
