THE Africa Global Logistics (AGL) has entered into a five-year service management contract to operate the Malindi Container Terminal (MCT) with Zanzibar Ports Corporation (ZPC).
The global logistic firm is in the final stage of starting managing the MCT in this year’s third quarter after an initial agreement signed last month with ZPC.
The agreement, apart from managing the container terminal for five years, also focuses on modernising Malindi Port and creating a two-hectare Inland Container Depot (ICD) to ease congestion, cutting down dwell time from the current five days to between 24 and 48 hours.
AGL General Manager Mr Eldon Khuty told the ‘Daily News’ that they are responsible for cargo handling operations and maritime services at Zanzibar’s main port infrastructure.
“The AGL is committed to implementing an investment programme for the modernisation and development of the Port of Malindi where we plan to construct a depot zone outside the port to alleviate congestion,” Mr Khuty said over the weekend.
He said the agreement will enable Zanzibar to have a modern infrastructure capable of ensuring imports and exports in conditions of quality, security, and safety that comply with international standards.
Additionally, AGL will go beyond operational improvement at the port as it will also invest in marketing the MCT to attract more ships that call the port to stimulate trade volumes.
ZPC Director General Mr Nahaat Mahfoudh said the contract is aimed at streamlining operations at the Malindi port and enhance efficiency and economy.
“Through this, it will enable Zanzibar to have a modern infrastructure that meets international standards, ensuring safety and security of imports and exports as well as lowering supply chain costs and improving conditions to create value for customers and partners.
“AGL, along with installing modern equipment and new technology, it will also provide training to our people on how to use it,” said Mr Mahfoudh.
The investor will also train and develop skills for locals.
Mr Mahfoudh said ZPC will get a cut of 30 per cent of the revenue generated.
According to the ZPC, Malindi Port is the busiest passenger marine terminal in the East African region, handling an average of 1.5 million people per year.
The port has one berth for large vessels with a quay length of 240 metres, and another way with a length of 113 metres for first-generation container vessels.