DP World is building up its logistics capabilities, signing a 20-year concession with an automatic 20-year extension with Mali to build and operate a 1,000-hectare modern logistics hub outside Bamako, the capital and largest city of Mali.
The multimodal logistics platform, Mali Logistics Hub (MLH), will have inland container depots (ICD) and Container Freight Stations (CFS) that will facilitate the import and export of goods, it said in a press release.
With its prime location on the main road corridor from Dakar, Senegal to Bamako and close to the Dakar-Bamako rail line, MLH will be capable of handling 300,000 teu and 4m tons of bulk and general cargo.
Construction work for the first phase of the project with an estimated initial investment of $50m is expected to start in 2019 and take about 18 months, supporting the growth of the Malian economy by streamlining the import and export of goods when it is completed.
DP World will also provide Mali with three locomotive trains to boost cargo and passenger traffic along the Bamako-Dakar rail system.
Furthermore, the Mali logistics hub will significantly reduce processing times for products entering the Malian market as part of efforts to reduce obstacles to trade and economic development. DP World will also implement its online paperless facilitation platform to accelerate the movement of goods as part of the agreement.
DP World has been expanding its logistics facilities in Africa and the Middle East, recently closing a deal in Egypt.
The concession agreement was signed in Dubai by Suhail Al Banna, ceo and md, DP World Middle East and Africa and Moulaye Ahmed Boubacar, Mali’s Minister of Equipment and Transport.
DP World chairman and ceo Sultan Ahmed Bin Sulayem said: “The Malian market is expected to grow over the next two decades and is driven by a robust economic and population growth. Thus, the Mali Logistics Hub is much needed and will provide the country with a logistics platform that aims to facilitate the import and export of goods via the Port of Dakar, which is operated by DP World.”
He added: “DP World’s investment will significantly cut processing times for goods and thus facilitate trade. We are committed to enabling trade in the region and helping local businesses and people prosper, and look forward to working together.”
Boubacar said: “We are excited to partner with DP World on this project. The Mali Logistics Hub will dramatically improve the cost and time of trade for Mali. The project will provide us with a first-class logistics facility comparable to global standards and will be the largest in terms of capacity”.
“We are confident that with DP World as a partner we will be able to meet the expectations of our people, traders and exporters to have access to more markets and to bring more efficiency and cost effectiveness to international trade. The project also gives the Republic of Mali the opportunity to be connected to global trade lanes, and to speed up access and transport in and out of the country.”
Mali is a landlocked country and depends on gold mining and agricultural exports for revenue. Cotton and gold exports make up about 80% of export earnings.
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