Kiyanzi Dry Port, an inland cargo terminal that was developed by the Government of Rwanda to enhance cross-border trade, is still seeking a private sector operator to fully realise its potential, officials have said.
Located at about 10 kilometres from Rusumo Border Post in Kirehe District in the Eastern Province, Kiyanzi was created and operationalised as part of the government’s efforts to prevent the spread of COVID-19 while facilitating continuous movement of cargo across the region.
Despite its full development and operational capacity, the Kiyanzi facility has not commenced full-scale operations due to ongoing negotiations with potential operators.
According to Antoine Kajangwe, Permanent Secretary in the Ministry of Trade and Industry, the government has conducted multiple tender processes but has yet to find a suitable partner.
Kajangwe indicated that the delay is not due to the facility's viability, but rather to the complexities involved in reaching mutually agreeable terms with the private sector.
"We have gone through the tender process twice, but unfortunately, we have yet to find a suitable operator that meets our requirements, but the lack of an operator is not indicative of the facility’s viability rather, it’s merely about reaching agreeable terms,” he said.
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Kajangwe pointed out that the process of engaging the private sector through tendering is inherently complicated.
"We are working diligently to find the right partner,” he stated, adding that the discussions are ongoing and involve careful consideration of various factors that affect the operation of the port.
Kajangwe also mentioned that once an operator is secured, the government’s role will shift to oversight and support.
"Our responsibility will be to supervise and monitor the facility to ensure it serves its intended purpose and benefits the community and private sector,” he noted, adding that the oversight is to ensure that the facility not only meets the needs of businesses, but also contributes positively to the local economy by facilitating efficient logistics and trade operations.
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Port capacity
During the COVID-19 pandemic, the port which seats on 3,000 square metres played a critical role as a logistics point, providing essential services when traditional supply chains were disrupted.
The Kiyanzi facility offered various services, from warehousing to customs clearance and cargo handling as all incoming dry and unperishable cargo was offloaded from containers, transshipped to domestic trucks and drivers, and delivered across the country.
According to the Ministry of Trade and Industry, the facility can handle between 7,000 to 10,000 tons of cargo annually, although precise figures should be validated by industry experts.
Kajangwe said the benefit of Kiyanzi dry port extends beyond mere cargo handling, indicating that the facility can facilitate repackaging and consolidation of goods, making it easier for businesses to navigate the complexities of international trade.
"It's a facility that offers logistics services, so everything regarding logistics for trade, whether as a bonded or non-bonded warehouse, a facility that can provide transshipment services, or that which can be used for inland container depots,” he noted.