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Unlocking Nairobi’s Burgeoning Growth

The Kenyan logistics market is entering a boom era, expected to cross USD 5 billion in the next three years, according to Ken Research.

Ongoing investment in infrastructure, changing shopping habits and urbanisation are positioning Kenya, and more specifically Nairobi as the gateway to east Africa and are expected to boost cross-border trade and in-country commerce significantly.

But the lack of world class, modern distribution and logistics parks could be the bottleneck that thwarts the billions of USD invested in infrastructure. Modern industrial parks are characterised by access to good road networks with multiple routes and access to transport hubs including rail networks, ports and container depots.

“Fast moving consumer good companies and third party logistics providers will have to relook their supply chain models,” commented Stefano Contardo, CEO of Improvon.

“Supply chains are increasingly becoming a competitive device for businesses, driving savings and increasing efficiency. But not all organisations have strategies able to deal with the drastic transformation happening in the industry,” he explains.

Improvon specialises in providing tenants with Grade-A warehousing, distribution, and logistics parks, built to clients’ specifications and has a distinguished track record with over  two million square metres of built up space.

The Company’s latest development, Nairobi Gate is fast becoming a brand associated with superior logistics in Nairobi, Kenya. The Park forms part of the larger Northlands Mixed Use Scheme, ideally situated on the Eastern Bypass of Nairobi, providing easy access to key arterial roads, only 30 minutes away from Jomo Kenyatta International Airport.

Phase one is built on 100 acres of land and will comprise in excess of 200 000m2 under roof once completed.

Nairobi Gate is ideally suited to accommodate large international businesses with agencies represented in east Africa, as well as large local businesses including specialised goods manufacturers of small, high-value items such as pharmaceuticals and medical equipment as well as specialised electronics and engineering components.

“We believe that Kenya’s warehousing and logistics industry is at the genesis of what will be a significant contribution to not only the country’s growth and prosperity, but to the region’s sustainability as a whole, explains Contardo.

“It brings a ‘built to suit’ concept to Nairobi in response to the demand for grade A flexible distribution properties. Nairobi Gate is differentiated by good access, efficient circulation for trucks, generous loading facilities, multiple roller shutter doors, good height facilitating volumetric capacity for pallet storage,” Contardo elaborates.

The park is strategically located on the Eastern Bypass within a 15 minutes’ drive from Thika Road and 15 minutes’ drive from Mombasa Road. Jomo Kenyatta International Airport, the Inland Container Depot and the Southern Bypass are all a mere 30 minutes’ drive away.

“A-grade warehousing and logistics parks support better supply chain efficiency, saving our tenants time and money,” adds Paul Williamson, Head of Leasing for Nairobi Gate. “It’s all about reducing the turnaround time and increasing efficiencies,” he says. “Larger warehouses allow tenants to optimise their business through state of the art assembly lines, automated sorters, dimension weight scanning and automated packaging. This automation substantially reduces turn-around time and increases efficiencies.”

Grade A warehouses are also designed with wider column grids and a high underside to eaves (typically around 12 meters) to allow for greater volumetric capacity. To ensure safe stacking, floor loads are increased and perfectly level.

“Ensuring goods get to customers can make or break an economy, which means logistics parks such as Nairobi Gate are a critical component to the success of a growing economy,” concludes Contardo.

Established in 1995 with the founders still active in the business, Improvon is a real estate investment company operating across sub-Saharan Africa, specialising in providing tenants with Grade-A warehousing, distribution and logistics facilities built to clients’ specifications. Improvon has a distinguished track record in excess of 2, 000, 000 m2 of built up space which include Nairobi Gate in Kenya,  the N1 Business Park and Gosforth Business Park in Johannesburg, Montague Park in Cape Town, South Africa and York Commercial Park in Lusaka, Zambia.




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