MAERSK LINE EAST AFRICA
SUPPLY CHAIN
Future strategic plans Containerised trade and the economy in the East African region is growing at faster than developed markets . Economic growth in the region ranges from + 4.5 to + 7 percent rise in GDP ( Gross Domestic Product ) and the population is 160 million , around half of the USA .
Although there is immense potential in the market going forward , there are still challenges . These include the cost of electricity , large trade deficits , insecurity , bureaucracy and overreliance on agriculture . But the ongoing political stability , high population growth , growing middle-class , increasing foreign investment , and new Oil & Gas discoveries means the region is clearly poised for more growth .
Felder added : “ Infrastructure development is very high on all the governments ’ agenda in the region . There are plans to improve ports , develop a standard gauge railway between Mombasa , Kampala and possibly extending to Kigali , and to rehabilitate the railway from Da El Salaam to the hinterland countries , so infrastructure as an enabler to growth is at the forefront of everyone ’ s minds .”
Maersk Line has also made a concerted effort to localise many management positions previously held by expats . For example , it recently hired a local CFO for its Tanzanian agency who replaces an expatriate . Despite this , Maersk is a global company , and expatriation is still used as a vehicle for
“ The market in East Africa is now approximately one million TEU in both directions and is growing at around 10 percent per year , which is more than double the global containerised growth on average ”
– Steve Felder
Safmarine truck
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