LOGISTICS & DISTRIBUTION
Rail freight has been proven to reduce logistics costs in Africa
KENYA , ETHIOPIA AND Djibouti are set to cut down container transportation costs by as much as 50 % and improve operations at the ports of Mombasa and Djibouti respectively , with the launch of freight cargo services on their newly completed standard gauge railway ( SGR ) lines .
Transportation of containers and general cargo from the two ports to the landlocked countries of Ethiopia , Uganda , Rwanda , South Sudan and parts of Democratic Republic of Congo is not only expected to be much faster , safer and more efficient , but also substantially contribute to reduction in carbon emissions from the thousands of trucks currently used in moving exports and imports .
In Kenya for example , the launch of the 472km SGR line linking the Port of Mombasa to the country ’ s capital Nairobi in June 2017 has proved a game changer for shippers and also other logistics stakeholders in Eastern Africa . This is because it now costs $ 500 , an equivalent of 50 % less to transport a 20ft container ( TEU ) from the port to Nairobi ’ s newly launched Nairobi Inland Container Depot ( ICD ).
The SGR line , which cost $ 3.8bn to
50 February 2018