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Masaka ICD to Open in January, Cutting Time and Cost of Imports to the Region.

11/18/2018 12:00:00 AM   |      |   

Masaka ICD to Open in January, Cutting Time and Cost of Imports to the Region.

Dubai Port World will in January 2019 start operations at the first phase of its inland container depot and logistics hub in Masaka, Rwanda.

The dry port east of Kigali is expected to help realize the country’s ambitions of becoming the region’s trade and logistics hub.

Built at a cost of $80 million, the port sits on 30 hectares of land given on a 25-year concession by the government of Rwanda to the Dubai-based investor in 2016.

It is located close to the Special Economic Zone and linked to both the Northern and Central Corridors. This will cut by half the time and costs incurred in transporting of goods.

“By January next year, traders will benefit from the first phase, which covers 13 hectares and features an inland container terminal with modern warehousing space, a container yard, administrative and service buildings and a large parking area. It is a hub that provides everything that a trader needs,” said Sumeet Bhardwaj, the chief executive of Dubai Ports World Logistics Rwanda.

The facility will provide container handling, loading and unloading from trucks, warehousing, and cold storage, which are currently a challenge for many traders in the country. Imports from overseas can also be distributed through the logistics chain to neighboring Uganda, Tanzania, Burundi and the DR Congo.

The facility will also enable traders to outsource logistics services including international shipments, clearances and final delivery of goods.

Rwanda and Tanzania are currently working on a joint modern railway project that once completed, will feed into Rwanda's inland container depot.

Market estimates show that the cost of transporting a 20-foot container from China to Mombasa is about $500-$1,000, which increases to about $4,000 when transporting the same container from Mombasa to Kigali.

Dubai Port is currently in negotiations with the government to begin the second phase of construction, which will include modern cold storage facilities on seven hectares.

In 2016, DP World was granted a 25-year greenfield concession to develop and operate a new logistics centre in Kigali.

The DP World Kigali Logistics project’s first phase was to be built on 969,000 square feet with a 129,000 square feet container yard and a 211,000 square feet warehousing facility.

It was envisioned to have an estimated annual capacity is 50,000 teus and 640,000 tonnes of warehousing space, with the total project cost estimated at $35 million.

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