Imperial Logistics offers new bonded storage solution in Kenya

23 April 2019

Imperial Logistics has acquired International Healthcare Distributors in Kenya and thereby gained access to bond licences for the bonded storage of pharmaceuticals, chemical products and electronics. This extension of the JSE-listed supply chain and logistics leader’s route-to-market capabilities in East Africa will speed up the delivery of medicines to patients and reduce multinational clients’ duties and tariffs, says Imperial Logistics’ African Regions CEO, Johan Truter. 

“These bond licences allow us to create a distribution hub in Kenya for products destined for Uganda, Tanzania, Ethiopia, Rwanda and beyond, with fewer links in the supply chain. Multinationals will be able to export products into the east and central African markets through Kenya more efficiently, with less risk, less complexity and at a lower total landed cost. Optimal stock levels and less stock outs will also be enabled,” he expands. 

The bond licences, issued by the Kenya Regulatory Authorities, enable Imperial Logistics to offer bonded warehousing for 1 200 pallet spaces of ambient pharmaceutical products as well as 84 pallet spaces of cold chain pharmaceuticals. On the electronics side, Imperial Logistics can offer 450 pallet spaces of bonded storage, while 650 pallet spaces of bonded warehousing for chemical products will be available in an independent facility, Truter reveals.

Truter outlines the function and benefits of bonded storage: “Also known as a customs and excise warehouse, this facility enables companies to import and store products from a different country of origin without declaring or clearing them through customs if these products are later to be exported to another destination. 

“The products will be stored in a state-of-the-art, good manufacturing practice and good distribution practice compliant warehouse in Nairobi, Kenya. The clearing, freight-forwarding, warehousing and distribution is managed using world-class systems that provide visibility of our clients’ products throughout the process. These systems include SAP Enterprise Resource Planning and SAP Extended Warehouse Management, as well as the Soloplan transportation management system.”

Truter notes that Kenya, with its central location and developed infrastructure, is the ideal gateway to many countries on the continent. “The largest port in East Africa, Mombasa, is strategically located and provides a direct link to approximately 80 ports worldwide and a railway line to Uganda and Tanzania. High levies, delays and other logistics challenges have, however, resulted in multinationals placing their distribution hubs in Dubai, Europe, or South Africa, with limited focus on Kenya.”

He says that this new offering is in line with Imperial Logistics’ strategy to customise and expand its route-to-market capabilities to meet clients’ specific needs and give them a competitive edge. “This in turn drives real economic growth and quality of life through the efficient and cost-effective movement of goods. This is exactly what our new Kenya bond store offering will achieve,” Truter concludes.

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