New Grain Terminal Could Boost Transportation

Kenya has marked a historic milestone as a new grain handling and storage terminal has been launched in Embakasi, Nairobi. Constructed by Grain Bulk Handlers Ltd (GBHL),The state-of-the-art facility plays a crucial role in transforming the transportation and storage of grains from the seaport to inland terminals, utilizing the standard gauge rail.

The Embakasi Grain Terminal will enable quick discharge, storage, and transportation of grain from ships to the inland Nairobi terminal on behalf of millers and manufacturers, ensuring more efficiency while also reducing the transport and logistics costs.

Speaking at the launch of the facility, President Ruto said he’s optimistic that the terminal will play a crucial role in helping the country address food security in the country.

“We are thrilled to see the completion of this incredible project as it has also created more jobs for our people. We are proud to have this terminal in our country, and look forward to seeing the positive impact it will have on our community and beyond,” he said.

The SGR terminal also contributes significantly to the commercial utilization of the standard gauge railway, which is a critical component of Kenya’s national transportation infrastructure.

Speaking at the same event, Mohamed Jaffer, Chairman of GBHL said that the journey to the successful completion of this project was not without its challenges, particularly during the COVID-19 pandemic. He added that the pandemic presented unprecedented challenges that threatened to delay the project, but with the support and commitment of stakeholders, GBHL was able to overcome them and complete the project on schedule.

“The terminal will provide immense benefits to our customers and the region, and also create new employment opportunities, providing a boost to the local economy and creating a ripple effect across the supply chain,” he further reiterated.

Embakasi terminal’s primary function is to receive through the Standard Gauge Railway (SGR), store and discharge grains as per demand. It offers a seamless, point-to-point logistics solution with various benefits, including customs clearance facility available at the facility, reduced level of demurrage and pilferage, reduced inventory cost, reduced transit time, increased trade flows, and clients enjoying savings by collecting grain in bulk with the option for bagged.

“Our inland clients have seen the benefits of the terminal during its trial run since its construction. Customers are gaining in using this model without considering other secondary savings” said Jaffer.

GBHL owns and operates two specialized dry bulk discharge terminals at the Port of Mombasa with a total capacity of 414,300 metric tonnes, which includes a 258,500 metric tonne terminal for handling grain and a 155,800 metric tonne terminal for other dry bulk cargo.