Siginon has leave the following logistics outlook for 2020 , in which they highlight the various challenges and opportunities they expect the first year of the new decade will convey .
The year 2020 check off the beginning of new decade . The logistics industriousness across the globe has experience great disruptions from the twelvemonth 2010 to the close of the decennary emanating from various macro and micro economic factor . noted upheavals include mechanisation of cardinal processes , a tightened regulatory environment and customer inclination for controller and substantial clip information on their loading regardless of time or location , no doubt an indication of the shrinking world village . The yr 2019 stretched slender the logistics actor in Kenya and the region and to an unfortunate few , the stretch finally head to closure , problem layoff and sadly an increase on criminal prosecution arising from fail to assemble contractual obligation .
The year 2020 logistics outlook seems to carry over some of that uncertainty particularly for players in the cargo transportation sector . event in the global bowl have shaped cost of doing business and negatively impact the cost of key comment . Some of these event let in the US - Iran tensions that have instantly hiked globular fuel prices , a primal component for surgery . These extra cost will no doubt increase the cost of commodity to an already burdened customer support from a myriad of taxes .
The Standard Gauge Railway ( SGR ) , which was plunge in 2018 , will put to task the business model for conveyer who previously rely on business from consignment off lade from the Port of Mombasa and recently from the Inland Container Depot in Embakasi ( ICDE ) . The SGR is now in full operation with increase air pressure from the politics to ascertain that all goods imported into Kenya are loaded onto the SGR and ferry inland into Nairobi veer off the gravy train for conveyer . The enlargement of the mesh further inland into Naivasha and future plan of link it to the metre gauge rail ( MGR ) onwards to Kisumu and Kampala will enormously reduce cargo volumes and cripple transporters who have been ferrying transportation system cargo from the ICD in Nairobi / Mombasa for cargo destined to Uganda , Rwanda , South Sudan and beyond .
Major substructure projects in the neighborhood are set to catalyse logistics in the region threaten Kenya ’s situation as East Africa ’s working capital . Notable projects admit Ethiopia ’s structure of the USD 5 billion aerodrome while Rwanda is localise to build a mega airport in partnership with Qatar Airways . The completion of these projects will steal the shine off Kenya ’s Jomo Kenyatta International Airport ( JKIA ) and entice major bottom and forwarders off from Kenya to terminate at either of these drome .
2020 also comes with great chance for trade in markets like the United Kingdom ( UK ) who have reaffirmed their interest to trade with Africa following Brexit . The resultant relationship will likely see an increase of exports of key UK exports such as ; motor vehicles , chemical and finished product as well as a number of imports from Africa into UK such as flowers , perishables and in the buff materials . Trade between neighbor East African countries such as Kenya and Uganda are probable to grow with the Kenya government ’s provision of ICD ’s in Naivasha for transportation system shipments . requirement for warehousing infinite adjacent to the ICD ’s in Nairobi and Naivasha is prepare to spike . The spike heel will face a huge opportunity for innocent and adhere warehouses to dish client using the SGR as well as align with the lucrative E - commerce sector .
" We remain optimistic that despite the possible challenges seen in the sphere , the logistics sphere descend with great opportunities that remain to be tap for prosperity now and in future tense " , the company conclude .
For more data : Siginonsiginon.com
