Kenya is taking strides towards solving food insecurity as a new grain handling and storage terminal was launched in Embakasi, Nairobi. The state-of-the-art facility, commissioned by President William Ruto, is set to play a crucial role in transforming the transportation and storage of grains from the seaport to inland terminals, utilizing the standard gauge rail.
President Ruto expressed optimism in the terminal as one that will play a crucial role in helping the country address food security in the country.
The Embakasi Grain Terminal, constructed by Grain Bulk Handlers Ltd (GBHL) will enable quick discharge, storage and transportation of grain from ships to the inland Nairobi terminal on behalf of millers and manufacturers, ensuring more efficiency while also reducing the transport and logistics costs.
“We are thrilled to see the completion of this incredible project as it has also created more jobs for our people. We are proud to have this terminal in our country, and look forward to seeing the positive impact it will have on our community and beyond.”
The SGR terminal also contributes significantly to the commercial utilization of the standard gauge railway, which is a critical component of Kenya’s national transportation infrastructure.
Mohamed Jaffer, Chairman of GBHL remarked that the journey to the successful completion of this project was not without its challenges, particularly during the COVID-19 pandemic. The pandemic presented unprecedented challenges that threatened to delay the project, but with the support and commitment of stakeholders, GBHL was able to overcome them and complete the project on schedule.
“The terminal will provide immense benefits to our customers and the region, and also create new employment opportunities, providing a boost to the local economy and creating a ripple effect across the supply chain,” he added.
Mujtaba Jaffer, Group CEO, Grain Bulk Handlers Limited, greets President William Ruto during the commisioning of the facility in Embakasi, Nairobi.
Embakasi terminal’s primary function is to receive through the Standard Gauge Railway (SGR), store and discharge grains as per demand. It offers a seamless, point-to-point logistics solution with various benefits, including customs clearance facility available at the facility, reduced level of demurrage and pilferage, reduced inventory cost, reduced transit time, increased trade flows, and clients enjoying savings by collecting grain in bulk with the option for bagged.
“Our inland clients have seen the benefits of the terminal during its trial run since its construction. Customers are gaining in using this model without considering other secondary savings” added Mr. Jaffer.
GBHL owns and operates two specialized dry bulk discharge terminals at the Port of Mombasa with a total capacity of 414,300 metric tonnes, which includes a 258,500 metric tonne terminal for handling grain and a 155,800 metric tonne terminal for other dry bulk cargo.
To date, GBHL has moved a total of 4 million tonnes of bulk grain since the commissioning of the Embakasi terminal. Customers are gaining a 15% direct savings in using this model without considering other secondary savings that are derived from reduced inventory costs, demurrage and unnecessary storage
charges. This efficient logistics model offers a platform for inland grain transportation in the region.
The total investment cost in all the SGR related assets is USD250 million, with this Embakasi terminal costing USD70 million. There are further expansion plans that are ongoing with a total investment of USD65 million, making the total capital being deployed towards enhancing the volumes transported on the SGR
at USD315 million.