Online logistics company Apexloads is targeting to onboard at least 1,200 firms in its platform to drive its regional growth plans.
The logistics firm which links cargo owners to transporters has signed a Memorandum of Understanding with the Kenya International Freight and Warehousing Association (KIFWA) in a move also expected to reduce delays associated with cargo haulage.
“As we are looking into establish ourselves in Africa, KIFWA is one of our biggest stakeholder,” said Charles Thuo, Apexloads Founder and Chief Executive Officer. “By partnering with KIFWA, if we can get their 1,200 members on the system that would be a stepping stone to cleaning up logistics in Africa.”
According to KIFWA, fragmentation in cargo haulage and the inability to track cargo movement among various players in the logistics and transport sector has been identified as key bottlenecks which contributes to high transport cost and elevated prices to the end users.
Apexloads which connects transporters to cargo owners on its platform is banking on the agreement to reduce such industry non-tariff barriers.
“KIFWA has all these networks and we are going to use this partnership as a catalyst to scale through the EAC because we need to work together because a clearing agent in Kenya needs to work with a transport company in Kigali and both our system working together we are going to make that a reality,” added Thuo.
Speaking during the signing of the agreement, KIFWA National Secretary Frederick Aloo said the deal will help organize freight, coordinate consignment logistics and ensure last mile delivery of cargo to clients within Kenya and across the region efficiently.
“One of the biggest challenge that our members face is trust issues especially in dealing with customers across borders. If we can have a system that assures these people of this trust I think we see many of our members onboarding,” said Aloo.
Through the agreement, KIFWA also expects to realized a reduce cost of transport associated with delays in cargo haulage since the platform provides transporters available in various locations in real time.
“If we can have a system that is predictable, reliable and that you can track it easily, I think in terms of the cost it is going to contribute largely in reducing the cost of logistics,” stated Aloo.
The efficiency achieved under the deal is further expected to enhance KIFWA’s tax revenues which stood at Ksh 791 billion as at the close of last year.
Since founding, Apexloads says it has on-boarded 5,549 logistics firm with the new partnership now expected to push signups to at least 7000.
