Nairobi’s first modern logistics centre draws new e-commerce operator

Africa Logistics Properties (ALP) has signed a long term lease for nearly 4,500 sqm of its flagship ALP North Logistics Warehousing Complex with Copia Global, the fast growing e-commerce FMCG distributor that specialises in supplying rural Kenya.

ALP is currently constructing Kenya’s first international standard grade-A logistics warehousing on two sites in Nairobi. ALP North, ALP’s first project, is a 50,000sqm logistics and distribution complex at Tatu Industrial Park in Northern Nairobi due for completion in September.

“Copia has a fast growing business model serving the rural regions of Kenya with FMCG products. By operating from Nairobi’s first grade-A logistics distribution complex, it will gain significant competitive advantage, benefitting from lower supply chain costs per pallet, and ultimately benefitting Kenyan consumers,” said Toby Selman CEO of ALP.

The rapid rate of fill at the logistics park has been driven by features such as the high floor load bearing capacity, 12 m operating heights, and lower operating costs due to environmental features such as solar powered electricity.

The ability to stack products up to 12 m high, alone, reduces overall warehousing costs by 30 per cent compared to traditional ‘go-down’warehouses.

The e-commerce sector is expanding rapidly in Africa with revenues last year of $16.5bn projected to reach $28.9bn by 2022, according to international statistics portal Statista.

In this, East African e-commerce sales are set to surpass West African e-commerce sales for the first time in the first quarter of this year, according to JLL’s Africa Prime Industrial Report.

The need for sophisticated warehousing and logistics facilities is key for e-commerce operations.

“Copia provides a unique direct to end consumer e-commerce enabled shopping service, bringing choice, convenience and opportunity to rural and peri-urban customers across Kenya. This involves a complex and challenging supply chain. We are very excited to be relocating our fulfilment centre operation to ALP North Logistics Park. The facility is ideally located for us and our suppliers and perfectly suited for us to reliably meet the day definite delivery needs of our customers. It will allow us to continue our rapid growth in using e-commerce to supply FMCG,construction and farming inputs more effectively and efficiently directly to previously underserved communities,” said Tim Steel, CEO of Copia Global.