Feb 15, 2017: Logistics firm Siginon is putting up a new Sh30 million tea blending plant in its latest effort to grow earnings from Kenya's top foreign exchange earner.

The firm, which upgraded its warehouses in Mombasa at a cost of Sh500 million just a year ago, said the blending plant would boost value addition in the tea industry.

Under the current plan, Siginon will have an internal capacity to blend the commodity to its customers' preference, a service it is outsourcing at the moment.

Currently, Siginon has a capacity to handle up to 5,000 metric tonnes at each of its warehouses in Mombasa. The firm has been expanding its business in the region and is now targeting the Ethiopian market as its next cargo destination.

The firm's executives said they are currently eyeing Ethiopia, which has lately emerged as a landlocked hub in the Eastern Africa but which has not been served adequately by the neighbouring sea state of Djibouti.

Recently, Siginon Aviation, a subsidiary of the Siginon Group, was appointed as the official ground and ramp handler for Qatar Airways Cargo at the Jomo Kenyatta International Airport (JKIA) in Nairobi.

The aviation wing, which offers services that include freight transportation, warehousing, port solutions and air cargo will be handling perishable produce such as flowers, fruits, vegetables and meat that are the top exports from Nairobi destined mainly for Europe and Middle East.

Singapore Airlines Cargo also renewed its ground handling agreement with Siginon Aviation at the JKIA for three years. The agreement between Singapore Airlines Cargo (Siacargo) and Siginon follows audit of firm's processes, facilities and systems in the newly opened air cargo terminal at the JKIA.

Siginon Aviation has handled Siacargo at the JKIA for more than a decade and the renewal of their contract is a boost to the firm's revenue.

Last year, the logistics firm acquired more than 100 trucks in anticipation of increased business opportunities ahead of the commissioning of the standard gauge railway in June.

Photo Source: Business Daily Africa

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