Singapore shipping firm expands Africa network with new inland corridors

Photo source: PIL

Singapore-based cargo shipper Pacific International Lines (PIL) has strengthened its inland shipping operations in East and Southern Africa with the launch of two new intermodal corridors. Intermodal transport involves moving goods using multiple modes of transportation, such as ships, trucks, and trains. The new corridors connect Kigali, Rwanda, with Dar es Salaam, Tanzania, and Durban, South Africa, with Gaborone, Botswana.

In August 2024, PIL completed its first shipment via the Kigali-Dar es Salaam corridor. Two 40-foot containers filled with macadamia nuts were trucked from Rwanda’s capital to Tanzania’s main port, where they were loaded onto a PIL vessel and shipped to Ningbo, China. This followed the July launch of the Durban-Gaborone corridor, where PIL oversaw the transportation of goods from Ho Chi Minh City, Vietnam, to the port of Durban before forwarding them by truck to Botswana, a 920km road journey that takes approximately three days.

Benjamin Loong, PIL’s head of intermodal, said these new intermodal routes allow customers to transport goods directly to inland destinations. Previously, customers needed to arrange transport from the port to the final destination themselves. Now, they can book the entire journey through PIL. Loong explained that when PIL launches a new corridor, it means the company has secured agreements with local vendors and established teams on the ground to oversee the inland transportation segment.

PIL opened its first branch office in Rwanda. The land-locked republic serves as a conduit for trade with resource-rich but governance-poor Democratic Republic of Congo (DRC). According to Loong, “Rwanda is a very good example of a corridor where we do see the potential for growth in the future, and we want to be able to provide our own customer service, rather than having a third party represent us there.” He said these new routes complement PIL’s existing inland network, such as the Dar es Salaam - Kampala corridor.

Loong noted that a significant portion of the imports into countries like Rwanda and Uganda consists of consumer goods not manufactured locally. Exports, on the other hand, are largely natural resources such as timber. In South Africa, PIL handles fewer imports, but the majority of exports are minerals. He highlighted a notable increase in lithium and cobalt shipments from the Copperbelt region through South African ports. While most of the imports PIL handles into Eastern and Southern Africa come from China, the exports from the region are more diverse, including destinations in the Middle East and Southeast Asia, in addition to China.

Cargo from Southern Africa used to be exported mainly through Durban and Cape Town. But increased congestion, deterioration of infrastructure and higher operating costs in South Africa have led many exporters to shift to ports in Mozambique.

 

References

'PIL introduces intermodal services to strengthen connectivity', Pacific International Lines, 28 October 2022

'PIL launches intermodal service between South Africa and Botswana', Pacific International Lines, August 2024

'New intermodal corridor between Rwanda and Tanzania', Pacific International Lines, August 2024