Tuesday, April 23, 2024

Kenya, Netherland sign MoU on Cool-Logistics Corridor

Indepth


Kenya has signed a Memorandum of Understanding with the Kingdom of the Netherlands to develop a cool-logistics corridor a move that the east African country hopes will revitalize perishable exports.

“The MoU I signed with the Dutch Ambassador in Kenya, Maarten Brouwer, will facilitate private investment in cool-logistics infrastructure to support the transportation of fresh produce by sea,” said Transport Minister Kipchumba Murkomen.

Kenya’s perishable exports could soar, creating millions of jobs, thanks to the new agreement with the Netherlands. The signed Memorandum of Understanding (MoU) paves the way for a “cool-logistics corridor” – a sea freight system specifically designed for fresh produce.

Boon for Kenya’s horticultural exporters

This project has the potential to double or even triple Kenya’s horticultural exports. This surge could create up to 3 million new jobs within the horticultural and agro-logistics industries.

The MoU, signed with the Dutch Ambassador to Kenya, facilitates private sector investment in cool-logistics infrastructure.

The project encompasses various logistical aspects, including port facilities, transportation networks, and regulations. It aims to revolutionize fresh produce transportation which will benefit trade between Kenya and the Netherlands, while propelling Kenya’s agricultural sector forward.

The CS acknowledged Kenya and the Netherlands long-standing relationship built on trade, transport, and development cooperation with nearly half of Kenya’s flower exports already reaching the Netherlands and avocado exports rapidly increasing as well.

This cool-logistics collaboration promises to further strengthen ties between these two key gateways – Kenya to East Africa and the Netherlands to Europe.

The Mombasa-to-Malaba corridor prioritizes sustainability. Sea freight boasts a significantly lower carbon footprint compared to air freight – a 95% reduction in emissions.

Additionally, sea transport offers a more cost-effective solution. Developing this system will enhance Kenya’s competitiveness in the global market.

The MoU presents an exciting opportunity for the private sector, and along with other ongoing developments around the Port of Mombasa, like the Dongo Kundu Special Economic Zone, creating a favorable environment for such investments.

This private sector-led initiative empowers businesses to adapt their infrastructure to seamlessly integrate with the cool-logistics system.

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