Rwanda inaugurates an inland port worth 35 million USD
October 22, 2019
By Maniraguha Ferdinand
Global trade enabler DP World inaugurated Kigali Logistics Platform, an inland port which targets to link Rwanda to regional ports like Mombasa and Dar es Salaam and ease transportation costs from the coast.
The port was inaugurated on Monday by President Paul Kagame of Rwanda, 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 TEUs. When operating at full capacity, it has the potential to save Rwandan businesses up to US$50 million a year in logistics costs.
Since the commencement of its operations in the Rwandan capital last year, Kigali Logistics Platform management says it has reduced truck-turnaround time which used to be an average of 10-14 days to three days.
President Paul Kagame lauded the facility and said it is in line with African Continental Free Trade Area that will come into force next year.
“The future of trade and integration on our continent is the African Continental Free Trade Area, which is already in force. Trading will commence in July next year. But trade agreements and economic policies won’t have much impact, without actual infrastructure”, he said
He called on Rwandan business people to make use of the port and expand their businesses even beyond.
“We therefore want to challenge our business people and investors, starting with the industries located in this neighbourhood and from the region and beyond, to make full use of this facility.There is no excuse not to pursue the vast opportunities available to us”, he added
DP World Chairman and CEO, Sultan Ahmed bin Sulayem said that they want to help Rwanda in its ambitions to establish itself as a key services and trade hub for the region.
He emphasized that their target is not only Rwanda but also other countries in the region that will be using Kigali inland port.
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.
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.
This $35 million project spans over 130,000 square metres, including a 12,000 square metre container yard and a 19,600 square metre warehousing facility.
DP World will be managing this port for 25 years, and after Rwanda Government will take over.
Nkemnji Global Tech
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