Africa Global Logistics (AGL) is keen to grow intra-African trade with Kenya as its main base, where the company remains among the biggest users of the Port of Mombasa and the Standard Gauge Railway.
The firm which has officially launched in Kenya has also made inroads into the East African Community (EAC) market, with plans to widen its reach as the African Continental Free Trade Area (AfCFTA) takes shape.
According to management, the company which is a provider of comprehensive logistics solutions, with shareholding from Mediterranean Shipping Company (MSC), aims to streamline supply chains and empower businesses to thrive in the continent's dynamic economic landscape.
MSC overtook Maersk in 2020 to become the world’s largest ocean carrier.
"By investing in a world-class logistics network, we unlock Africa's immense potential," said Philippe Labonne, president, AGL Group.
"MSC’s acquisition highlights the long-term commitment of the company to invest in Africa’s supply chains and infrastructure, supporting the needs of our clients on the continent.”
Intra-African trade remains a significant challenge for the continent, with complex regulations and underdeveloped infrastructure hindering the free flow of goods.
As part of the MSC Group, AGL aims to contribute to the sustainable development of Africa and emerging markets, Labonne noted.
Africa's economic transformation hinges on a robust and efficient logistics sector. Fragmented supply chains and complex regulations however often hinder growth, leading to increased costs and delayed deliveries.
“AGL's Kenyan launch signifies its commitment to being a long-term partner in Africa's growth story. The company plans to create local jobs, foster partnerships with local businesses, and promote Intra Africa Trade, “ AGL regional managing director (East Africa), Jason Reynard, said.
AGL Kenya has been utilising its multi-modal logistics solutions (warehousing, transportation, and customs clearance) for several years to support Kenya's socioeconomic growth.
“We believe that logistics isn’t just about moving goods from one place to another, it’s about building bridges, forging connections, and unlocking the incredible potential that lies within Africa,” Reynard, said.
AGL identifies Kenya as a strategic location and “vibrant economy”, that serves as the “perfect gateway” for its operations in Africa.
“By establishing a strong presence here, we are laying the groundwork for greater trade cooperation and collaboration among African nations,” Labonne noted.
Africa Global Logistics Kenya recently secured land at the Naivasha Special Economic Zone as part of its plans to increase its cargo business.
It is among companies that were allocated land by the government in January, when President William Ruto commissioned a power sub-station to support operations at the facility. AGL has 20 acres of land at the SEZ.
The firm plans to use the space for cargo handling, mainly transit goods being moved by the SGR from Mombasa to the Naivasha Inland Container Depot, before being transferred to the Metre Gauge Rail for delivery to Malaba.
The move is geared towards promoting and facilitating international trade by simplifying customs procedures and encouraging seamless cross-border logistics operations, the firm said.
“This allocation at the Naivasha Special Economic Zone is certainly in line with our commitment to providing best-in- class logistics services. This will increase efficiency and aid in the growth of Kenya’s logistics sector,” Reynard said.
AGL is among the biggest users of the Standard Gauge Railway and Metre Gauge Rail freight services between Mombasa-Naivasha and Malaba, where cargo is then moved by road into the hinterland.
According to the government, the Naivasha SEZ provides first-world infrastructure and bureaucratic and administrative efficiency at globally competitive prices and more so, for the fact that it is geo-strategically located.
Its value proposition includes modern transport infrastructure that connects landlocked Eastern African countries via rail or road.