KENYA – Logistics firm, Cold Solutions, has launched its flagship cold storage facility in Tatu City setting in motion its USD 70 million (Sh10.5 billion) investment plan of three years ago.
The 15,000 square meters grade ‘A’ cold storage complex on six acres at Tatu City becomes one of the largest in the country and will cater for multiple products such as fresh fruit and vegetables, pharmaceuticals and vaccines, meat, poultry, and frozen foods.
The warehouse is classified as a grade ‘A’ facility because of its high quality, size, hook height and dock levelers, large lay-down area around the warehouses and its specialty as a cold storage.
According to the Cold Solutions Kenya chief executive Grant Ochieng’, the cold storage facility will help cut post-harvest losses in agriculture, fortify supply chains in the hospitality, retail, and pharmaceutical sectors.
“We believe this facility will not only meet but exceed your expectations, providing you with a competitive edge in your industry. Your success is our success, and we are honored to be your trusted logistics partner,” said Mr. Ochieng.
Cold Solutions Kenya is a portfolio company of ARCH Cold Chain Solutions East Africa Fund, a private equity fund advised by ARCH Emerging Markets Partners Limited.
The firm hopes to set up another storage facility in Mombasa, in line with the plans it gave out in June 2020, when announcing the USD 70 million investment plan.
The demand for cold storage solutions has been rising especially in the agricultural sector where the United Nations’ Food and Agriculture Organization estimates that over 40% of food in sub-Saharan Africa perishes before reaching consumers.
In another report by IT Industry News, the cold chain tracking and monitoring market solutions reached 725 000 units worldwide in 2022.
Growing at a compound annual growth rate (CAGR) of 9,8%, the industry is expected to reach 1,2-million units in 2027.
“During the same period, the installed base of active tracking devices used for refrigerated cargo carrying units is forecasted to grow at a CAGR of 13% from 2,4-million units at the end of 2022 to 4,4-million units by 2027,” says the report.
Furthermore, according to Martin Backman, principal analyst at Berg Insight, the market for real-time tracking solutions for cold chain applications continues to grow as the demand for up-to-date and relevant logistics data increases.
“Real-time tracking is a very cost-effective way to prevent high-value cargo from being spoiled or damaged,” continues Backman.