August 22 2018

German transporter Hapag-Lloyd keen to expand services in East Africa

Source: Asoko Insight

Hapag-Lloyd hopes to expand business opportunities in the Port of Mombasa as it seeks to serve well the growing market in the region.

Following its debut in the East African market in April 2018, multinational German-based transportation company Hapag-Lloyd has experienced a stellar performance in the shipping industry. The region’s annual growth rate of 6% caught the attention of the container shipper as it looks to expand its business in the African continent. Kenya was the preferred destination with the country handling most of the region’s cargo. The shipping company eyes job creation for the Kenyans to improve the country’s productivity.

Hapag-Lloyd has revolutionized the shipping industry linking the Arabia Gulf and East Africa to bridge the gap of trade between them. The direct service connecting the two regions is essential for the growth of trade and investment opportunities. The German box carrier hopes to increase cargo volumes of the perishable products it deals in to effectively serve its customers. The company has a wealth of experience that it hopes will benefit the growing market in East Africa.

The East Africa Service (EAS) launched at the company’s first operation in the region and has gone to pass their expectations. The firm no plans the next phase of the EAS2 with the growing demand of the market.

The container shipping line has won a number of accolades under its belt owing to the quality services it provides in different parts of the world. Last year the company scooped the European Carrier of the Year Award, Green Connection Award and Top Ocean Performer. In July this year, the container shipping line scooped the Outstanding Partnership Award by Target Corporation, an awarding organization.

Hapag-Lloyd’s investment is another sign of the luring East African market to foreign investors. Their presence increases the Foreign Direct Investment flow into their countries that Governments have emphasized. It increases and strengthens bilateral cooperation with their parent states to reap mutual benefits and open more opportunities.