What operational benefits within Uganda are expected following the integration of Africa Global Logistics (AGL) into Mediterranean Shipping Company (MSC)?
The integration of AGL into MSC represents a significant development for us. MSC is the largest carrier globally. We had the opportunity to connect with MSC during the annual summit of the Africa CEO Forum in Abidjan in June 2023. MSC is quite enthusiastic about opportunities in Africa, and we were viewed as a partner with the best infrastructure and knowledge of Africa to assist them with their growth plans across the continent.
The integration was not a sign of weakness by AGL, rather a strategic move to enhance our capabilities. We anticipate that one of the primary advantages will be access to MSC’s extensive resources. We will be able to tap into their global network, financial strength and infrastructure, undoubtedly boosting our Ugandan operations and throughout Africa. Moreover, we see great potential in connecting Africa with Asia, Europe and the US, which opens up new horizons for logistics across continents.
AGL retains its independence, giving us the flexibility to work with various partners like CMA CMG Group, Maersk and others. AGL even operates depots for carriers such as Ocean Network Express (ONE), Hapag-Lloyd and WEC Lines. This flexibility allows us to cater to a diverse range of customer needs. Integration provides a robust framework for delivering efficient logistics solutions, which will be a significant boon for AGL’s operations in Uganda and beyond.
What recent developments and investments has AGL made?
Our recent investments include the construction of a 10-acre facility with 10,000 sq metres of warehousing and a capacity to store over 650 twenty-foot equivalent units (TEUs). Located in Namanve, the facility is strategically located near major coffee exporters in the Central region of Uganda. The location allows us to be closer to our clients, particularly in the coffee export subsector, where demand for logistics services is high.
Additionally, we have acquired 25 new trucks and trailers to strengthen our presence in the oil and gas sector. These investments are significant, both in terms of infrastructure and fleet expansion. The total investment for these projects, including equipment and training is approximately €2m. We are dedicated to modernising our operations and improving our logistics capabilities.
We have already started working on our new inland container depot (ICD) in Namanve, with phase one focusing on laying the groundwork. Phase one is expected to be completed by November 2023, and phase two will involve preparing the yard for container reception and constructing the warehouse. We anticipate phase two to be completed by the end of 2024, possibly early 2025. The estimated projected investment for the new ICD is €8m-10m. Lastly, we are investing in renovating our office to create a more engaging and collaborative work environment, with the aim of boosting employee satisfaction and productivity.
Which specific sectors are you planning to prioritise in the future?
Currently, our company maintains a dual focus, operating within both the oil and gas sector and the traditional business sector. To streamline our operations, we have established a subsidiary, Integrated Logistics Services Tilenga, dedicated to managing ongoing oil and gas projects. While we are committed to the success of this sector, we also recognise the fundamental importance of our traditional business.
Our traditional business serves as the foundation of our organisation, covering essential operational costs and generating additional profits, while the oil and gas sector represents an exciting growth opportunity. We are actively reinforcing our sales team and expanding our workforce to ensure the continued development and prosperity of both sectors.
What’s the future outlook for AGL’s operations in Uganda over the next 2-3 years?
I see AGL Uganda making significant progress. Over the next 2-3 years, our operations will continue to improve. We anticipate implementing better systems, introducing new developments, and enhancing our customer service. Given the dynamic nature of the business environment, we understand the need to remain flexible and prepared for sudden changes, such as blockages or strikes. By investing in our teams and providing them with the right tools and environment, we are confident that we will achieve our growth goals. Specifically, we aim to increase our market share from 6% currently to reach 8% or 10% within the next two years.
