African Logistics Properties boosts e-com in East Africa
Africa Logistics Properties has won a contract with a new multinational e-commerce company called Copia Global, which has leased out a 4,500 sqm facility at ALP’s logistics hub in Nairobi.
ALP is disrupting the logistics sector in Kenya and East Africa by bringing in premium warehouses that are Grade A, providing a superior facility to the "godowns" that are currently available on the market.
These godowns are usually 4 metres high with 2,000 - 3500 sqm of space, which means one would need more than one structure to rent the capacity required by Copia.
They also don't provide cold storage facilities which are currently in high demand for FMCG in Kenya, along with pharmaceutical companies and flower companies, and don't incorporate technological softwares in their operations. As such truck turnaround times are unacceptably high.
The ALP facilities come with the international standard height of 12m meaning a customer can now stack their goods 3 times higher than in a godown thus requiring less space, have the technological softwares, provide cold storage facilities and have high loading bays, which all aid in reducing the truck turnaround time and save users operational costs of up to 30%.
Copia's lease will enable it to run thousands of deliveries a day from the e-commerce company's new central distribution centre to its agent network across the region.
The e-commerce sector is expanding rapidly in Africa with revenues last year of US $16.5-billion, and projected revenues of US $28.9-billion by 2022, according to Statista, but a lack of proper infrastructure for further growth is a major problem.
“This new e-commerce partnership demonstrates the degree to which the international quality and design of ALP's distribution and logistics facilities are disrupting the traditional 'godown' warehouse market, which has long suffered from small, poor quality units that are not fit to support the kind of modern logistics operations needed by regional and international companies in Africa,” ALP said in a statement.