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Rwanda looks to dry port to boost international tradeFriday, January 22, 2016 > 09:43:32
Rwanda is set to establish a dry port in an effort to allow heavy cargo trucks from Mombasa and Dar-es Salaam ports to load and offload containers without delay.
The move, according to Rwanda ministry of trade and industry seeks to boost international trade and competition in the global market.
The small Central African country being land locked sees the new initiative as a platform that will address challenges affecting transportation of goods from Mombasa and Dar-es Salaam ports to Rwanda.
A dry port is an inland terminal directly connected by rail or road to a sea port, providing services for handling, temporary storage, inspection and customs clearance for international trade.
Speaking to reporters on Wednesday, Francois Kanimba, Rwanda minister trade and industry said that, the facility would help flourish Rwanda exports.
“Our country aims to enhance the logistics sector to support the export of products for regional and international markets. The logistics facility is expected to significantly contribute to the development of this strategy,” he said.
Rwanda has signed an agreement with Dubai-based global marine terminal operator Dubai Port World to develop and operate the dry port in Kigali special economic zone in the city suburbs of Rwanda, Capital Kigali.
The 25-year renewable concession agreement with Dubai Port World will see a 35 million U.S. dollars dry port developed.
“There had been cases where offloading and loading containers takes almost a week, forcing trucks to make only two trips per month. But with new infrastructure, the trucks will do as many as five trips per month. This will reduce transport costs and transit time, spurring investment in the surrounding areas,” Kanimba said.
He said that the government will construct roads allowing those trucks to reach the dry port without passing through the city centre.
The port at Masaka will occupy 30 hectares of land. The first phase of infrastructure will cover 13 hectares, where residents have already been expropriated, while the second phase will be worked on after five years.
The post genocide country has eased the cost of doing business which has significantly transformed the country’s economy in a short period of time.
World Bank Doing Business’ report for 2016 ranked Rwanda top business friendly destination in East Africa, and the 7th top reformer globally.
The Country has demonstrated consistent strong performance in the World Bank Doing Business Rankings in recent years with good progress made across all the key indicators.
The country has boosted investment opportunities by introducing a new investment law that clarifies potential investment opportunities in the country as well as the key areas the government is marketing to investors.
The investment law, launched in July last year seeks to bring 1.12 billion U.S. dollars worth of foreign direct investments (FDIs) by the end of the year.
Figures from Rwanda Development Board (RDB) put the country’s actual FDIs at 257 million U.S. dollars in 2013 and 521 million U.S, dollars in 2014. Enditem