The Kenya Ports Authority (KPA) in a bid to reduce costs and enhance efficiency has recently issued a customer notice regarding changes to their storage fees and free period for transit cargo that will . This notice, which comes into effect on May 1st, 2023, states that the storage free period for transit cargo will be extended from the current 9 days to 15 days. Additionally, there will be a reduction in the number of storage bands for transit cargo, from 6 bands to 4 bands.
These changes are aimed at reducing costs and enhancing efficiency for importers and exporters using the port. The extended free period will provide more time for cargo owners to clear their goods and reduce the number of demurrage charges incurred. Demurrage charges are fees charged for the storage of goods beyond the free period, and the reduction in the number of storage bands will simplify the process of calculating these charges.
The customer notice is one of the many steps taken by the authority to improve the operational efficiency of the port and make doing business more cost-effective. It follows other recent initiatives, such as the introduction of the Single Window System, which allows for the electronic submission of import and export documentation, and the upgrading of port infrastructure to accommodate larger vessels.
The KPA’s efforts to streamline operations and reduce costs are particularly important given the competitive nature of the global shipping industry. By reducing the costs associated with using the port, the KPA can attract more business from importers and exporters, thereby boosting the regional economy.
A positive development for importers and exporters using the port, these changes will provide more time for cargo owners to clear their goods and simplify the process of calculating demurrage charges, ultimately reducing costs and enhancing efficiency.
The official launch of the “Kigali Cargo Hub,” the arrival of the first Qatar Airways Freighter, and the partnership between Rwandair and Qatar Airways was a key milestone to witness. It is significant not only for Rwanda’s imports and exports but the entire cargo logistics industry. With the Kigali Cargo Hub’s launch, an increase in network, space availability, and hopefully more competitive per kilo rate are anticipated.
The landing of the Qatar Airways Cargo Freighter at Kigali International Airport was exciting. The partnership between Rwandair and Qatar Airways provides excellent opportunities for the region’s cargo logistics industry. The Kigali Cargo Hub’s launch is also significant for Rwanda’s economy, as it is expected to boost the country’s trade.
The partnership between Rwandair and Qatar Airways will provide customers with alternative options for shipping their goods. Additionally, the Kigali Cargo Hub’s launch will help Rwanda become a hub for trade in the region. It will provide a platform for the country to showcase its potential and encourage other stakeholders to invest in Rwanda’s logistics industry.
The launch of the Kigali Cargo Hub is a significant development for the entire cargo logistics industry in Africa. It will provide shippers with more options, better connectivity, and more efficient transportation of their goods. Additionally, the hub will provide more employment opportunities and contribute to the growth of the Rwandan economy.
The opportunity to participate in the official launch of the “Kigali Cargo Hub,” witness the arrival of the first Qatar Airways Freighter, and the partnership between Rwandair and Qatar Airways was incredibly positive. Our expectation is for networks to expand, available space to increase, and per kilogram rates to become more competitive, and we are eagerly looking forward to witnessing the positive impact these developments will have on both Rwanda’s economy and the wider region.
Multilines International Limited, an East African Authorized Economic Operator (AEO), was invited the
esteemed attendees at the recent launch of the Mutual Recognition Agreement (MRA) between
China and Uganda. The event, held on June 1st, 2023, marked a significant milestone in strengthening
bilateral trade ties and facilitating smoother customs procedures between the two nations.
The event featured notable speakers, including Mr. James Malinzi, Assistant Commissioner Customs
Audit, URA. Malinzi highlighted the importance of the MRA, which was signed in May 2021, and its
impact on trade facilitation. He disclosed that Uganda currently boasts 118 AEOs, while China has
over 5,000 registered AEOs. Recognizing the significance of AEOs in streamlining trade, he announced
that importers will enjoy priority clearance for AEO companies, ensuring expeditious processing of
goods exported between the two countries.
Commissioner Customs at URA, Abel Kagumire, emphasized the crucial role AEOs play in Uganda’s
revenue collection, contributing a substantial 26% to URA’s overall revenue. Kagumire urged local
industries to add value to key export commodities such as timber, coffee, marble, and cocoa, enabling
the exportation of finished products. This value addition would enhance Uganda’s competitiveness in
international markets.
H.E. Ozhang Lizhong, Chinese Ambassador to Uganda, expressed optimism about the implementation
of the MRA, underscoring the exchange of lists between AEO companies in both nations. He
emphasized the tremendous advantages the MRA brings, including expedited customs clearance,
estimated to improve clearance speed by 60% compared to previous procedures. Additionally, the
MRA is expected to save 10% in logistics costs, leading to enhanced trade efficiency.
Highlighting the growth potential, Ambassador Lizhong revealed that bilateral trade volume between
China and Uganda rose by 6.6% in 2022, reaching a substantial $1.14 billion USD. Furthermore, he
acknowledged China’s recent decision to grant zero-tariff treatment for 98% of taxable items
imported from Uganda, further boosting Uganda’s export of value-added products to the Chinese
market. In line with promoting tourism and investment, discussions are underway for the
establishment of a new direct flight between Entebbe and Guangzhou, with hopes of actualization
within a month.
Rubagumya Patience, Acting Commissioner General of URA, emphasized the importance of utilizing
tax revenues for economic development rather than relying on external borrowing. To achieve this,
she stressed the need for closer cooperation between customs and domestic taxes to facilitate
seamless trade operations. Faster clearance of goods through the MRA would attract more business
and contribute to accelerated economic growth. Patience highlighted tourism, agriculture, oil, and gas
as priority sectors for government support, aiming to attract increased investment.
For Multilines International, the MRA is envisioned to create a ripple effect across various sectors in
the trading community particularly the oil and gas, tourism, and construction sectors
, leading to improved economic conditions in the community.
Multilines Rwanda‘s Managing Director, Mrs. Julie Mutoni, played a pivotal role in a panel discussion that focused on the significance of upskilling and continuous learning to drive innovation and growth in the transport and logistics industry. The discussion highlighted the crucial role of professionalism and capacity building in shaping the future of the industry.
The panel discussion emphasized the need to create opportunities for women and other underrepresented groups to enter and excel in the transport and logistics industry. Multilines International firmly believes that fostering a culture of professionalism is essential to promoting ethical behavior and accountability, creating a more diverse and inclusive industry.
As an active player in the industry, Multilines International is committed to collaborating with others to build a stronger, more professional, and inclusive industry. The company is grateful to all the panelists for their valuable insights and to the attendees for their active participation and engagement. By promoting professionalism and capacity building, Multilines International aims to contribute to the growth and innovation of the transport and logistics industry.
Multilines International recognizes that the industry is constantly evolving, and professionals must adapt and upskill to remain relevant and competitive. The company is dedicated to providing training and development opportunities for its employees to enhance their skills and knowledge. Additionally, Multilines International seeks to encourage continuous learning and upskilling among professionals in the industry through various initiatives and partnerships.
The panel discussion moderated by Mrs. Julie Mutoni was an essential platform to discuss the importance of upskilling, continuous learning, and professionalism in the transport and logistics industry. Multilines International is committed to promoting these values to create a more inclusive and diverse industry that drives innovation and growth. By investing in the development of its employees and collaborating with other stakeholders in the industry, Multilines International hopes to contribute to the growth and success of the transport and logistics industry.
Multilines International enthusiastically embraces the recently signed Kenya-European Union (EU) trade deal, which signifies a significant milestone in regional trade. President William Ruto, celebrating it as a “remarkable partnership,” highlights the promising opportunities it brings to Kenya’s business landscape and beyond. The EU, being Kenya’s second-largest trading partner, emerges as a vital economic ally. Spanning 25 years, the agreement solidifies Kenya’s access to a significant export market valued at $1.3 billion (£1 billion), presenting substantial opportunities for local industries, particularly in the agricultural sector, known for exporting vegetables, fruits, and flowers.
Unlocking unparalleled prospects for expansion, the trade deal positions the EU as Kenya’s most important export market. It is expected to boost investment in the manufacturing sector, leading to the creation of numerous job opportunities. Furthermore, it establishes Kenya as a prime destination for European companies seeking entry into the thriving East African market.
As Multilines International, we have well-prepared our extensive cargo freight and transport logistics operations across Uganda, Rwanda, Kenya, and Tanzania to capitalize on the increased trade demand resulting from this agreement. Additionally, we are committed to leveraging these developments to bolster our services and provide efficient transportation solutions throughout the region.
The scale of the Kenya-EU trade deal is truly remarkable as it secures duty-free access for Kenyan farmers to their most significant export market while paving the way for European imports into Kenya. This trade partnership underscores the necessity for local businesses to scale up and enhance their competitive edge against larger European players. With dedication, we support Kenyan businesses in scaling up their operations and thriving in this evolving trade landscape.
In a time of unprecedented global disruptions caused by the Covid-19 pandemic, conflicts, and climate change, the Tanzania Port Authority (TPA) has unveiled a strategic initiative that promises to reshape the trade landscape in the region. The recent announcement of a free 30-day storage period for Ugandan importers signifies not just a shift in logistics dynamics, but also a bold step towards fostering trade confidence and growth. This landmark decision, unveiled at the FIATA-RAME 2023 Logistics Conference in Kampala, Uganda, aims to pave the way for a new era of resilient trade relations.
Navigating the Trade Challenges
Tanzania’s efforts to attract Ugandan importers have faced challenges, including high transportation costs and geographical disparities. The allure of the Mombasa port, with its proximity and cost efficiency, has often overshadowed the Dar es Salaam port. The statistics from 2018 illustrate this point: transporting a container from Dar es Salaam to Kampala cost around $4,800, while the same journey from Mombasa cost $2,700.
TPA’s Vision: Bridging Gaps and Building Confidence
TPA’s strategic move holds the promise of reversing this narrative by fostering a conducive business environment. Dr. Jane Buberwa, an expert based in Dar es Salaam, stresses the pivotal role of customer-centric strategies in attracting traders. She asserts that providing better customer care can significantly contribute to Tanzania’s vision of expanding port capacity to 30 million tonnes by 2030.
“Better customer care can woo more freight forwarders, even considering the distance factor,” Dr. Buberwa affirms, underlining the transformative potential of exceptional service quality.
Strategic Incentives: Empowering Trade
Beyond rhetoric, TPA is backing its commitment with strategic initiatives. A dedicated Ugandan shed for consolidation and deconsolidation purposes, specifically for imports, is a tangible testament to this commitment. This facility operates around the clock, offering a consolidation center that caters to the requirements of stakeholders. Additionally, the 30-day storage period serves as a crucial asset, facilitating practical and realistic import planning.
Mr. Yesaya Masangya, Marketing Manager at TPA, underscores the significance of this storage period. He emphasizes that it aligns with the needs of traders while ensuring compliance with industry standards.
Building the Trade Ecosystem: A Collaborative Approach
Dr. Abdul Mkongwa, an economist from the University of Dar es Salaam, recognizes the far-reaching impact of empowering traders. By offering opportunities and demonstrating unwavering commitment, Tanzania’s ports can emerge as preferred choices. Dr. Mkongwa notes that traders communicate among themselves, and the positive reputation of the ports can drive increased utilization and engagement.
Multilines International Limited: A Potential Participant
As a prominent freight forwarder in the region, Multilines International Limited emerges as a potential key player in this transformative journey. With a comprehensive suite of logistics services encompassing air and sea freight, customs brokerage, warehousing, and distribution, Multilines is poised to support the anticipated surge in trade activity driven by TPA’s strategic initiatives.
In Conclusion: Charting a New Trade Landscape
TPA’s introduction of a free 30-day storage period for Ugandan importers signifies more than just a pragmatic incentive; it symbolizes a commitment to nurturing thriving trade relations. With a well-defined vision and support from potential stakeholders like Multilines International Limited, Tanzania stands poised to usher in a new era of dynamic regional trade.
As we witness this strategic evolution, Multilines International Limited remains dedicated to offering top-tier logistics solutions aligned with evolving trade demands. Delve into Multilines’ array of services, and embark on a journey towards seamless trade excellence.
Multilines International proudly sponsored at the groundbreaking Private Sector Foundation Uganda (PSFU) Gala 2023, a night of celebration, recognition and collaboration within Uganda’s private sector. The event held at the esteemed Kampala Serena Hotel, brought together influential stakeholders, government officials and developmental partners.
Key among other discussions was the call for more collaboration among the business community in the Private sector, and the unveiling of transformative partnerships between PSFU and renowned organizations in the sector such as UNHCR, UN Women, KCCA, and Uganda Baati. These collaborations aim to address various challenges, including business opportunities in refugee settlements and initiatives to empower women.
As a cargo freight, transport and logistics organization, while our primary commitment lies in providing efficient and reliable cargo freight and transport logistics solutions, our participation in the PSFU Gala reflects our broader dedication to collaborative partnerships, corporate social responsibility and positive environmental initiatives.
As we reflect on the success of the #PSFUGala2023, Multilines International remains committed to its core mission of delivering exceptional logistics services and supporting community initiatives that align with its core values of innovation, accountability and Integrity.
Multilines International, recently extended its support to a heartwarming initiative orchestrated by Mr. Davis Mukyenga, in partnership with Rocket Health Uganda. The initiative, known as the Jajja Florence Happy Children’s Home Medical Camp and Donation Drive, aimed to provide essential healthcare services to the underprivileged children and adults at Jajja Florence Happy Children’s Home.
The core objective of the Jajja Florence Happy Children’s Home Medical Camp was to conduct comprehensive medical examinations for more than 46 children and 10 adults residing at the Jajja Florence’s Happy Children’s Home. These medical check-ups were vital in identifying and addressing health concerns and ensuring that the beneficiaries received the necessary healthcare and medication.
In collaboration with Rocket Health, the initiative took a significant step towards ensuring sustainable healthcare access for the beneficiaries. The intitiative also led to the launch of Jajja Florence’s Health Wallet, which guarantees ongoing medical care for the children and adults at Jajja Florence Happy Children’s Home. The Rocket health Wallet not only promises to enhance their overall well-being but also secures their access to healthcare services when needed most.
Multilines International is proud to have supported this initiative and shares in the commitment to the well-being of the children and adults at Jajja Florence Happy Children’s Home and the wider community. This commitment reflects our dedication to making a lasting change in the community and ensuring that healthcare, essential supplies, and educational opportunities continue to reach those in need.
The Jajja Florence Happy Children’s Home Medical Camp, has showcased the power of collective compassion and support. Multilines International is honored to have played a part in this initiative and is committed to continuing its support in the years to come.
