Mohammed Jaffer launches grain handling terminal in Nairobi

Grain Bulk Handlers Ltd (GBHL), a company owned by Mohammed Jaffer, one of Kenya’s richest men, has launched a new grain-handling and storage terminal in Embakasi, Nairobi.

The Embakasi Grain Terminal, built by Grain Bulk Handlers Ltd (GBHL), will allow millers and manufacturers to discharge, store, and transport grain from ships to the inland Nairobi terminal with greater efficiency while lowering transport and logistics costs.

Speaking during the terminal’s official launch ceremony on Friday, Kenyan President William Ruto expressed confidence that the terminal will play an important role in addressing food security in the country.

“We are thrilled to see the completion of this incredible project as it has also created more jobs for our people. We are proud to have this terminal in our country, and look forward to seeing the positive impact it will have on our community and beyond,” Ruto said.

The Standard Gauge Railway (SGR) terminal also contributes substantially to the commercial utilization of the standard gauge railway, a vital component of Kenya’s national transportation system.

Speaking at the same event, Jaffer, chairman of GBHL stated: “The journey to the successful completion of this project was not without its challenges, particularly during the COVID-19 pandemic. The pandemic presented unprecedented challenges that threatened to delay the project, but with the support and commitment of stakeholders, GBHL was able to overcome them and complete the project on schedule.”

He added: “The terminal will provide immense benefits to our customers and the region, as well as create new employment opportunities, boosting the local economy and creating a ripple effect throughout the supply chain.”

The primary function of the Embakasi terminal is to receive cereals via the SGR, store them, and discharge them on demand.

It provides a seamless, point-to-point logistics solution with numerous benefits, such as a customs clearance facility available at the facility, a reduced level of demurrage and pilferage, reduced inventory cost, reduced transit time, increased trade flows, and clients who save money by collecting grain in bulk with the option of collecting it in bags.

“Our inland clients have seen the benefits of the terminal during its trial run since its construction. Customers are gaining in using this model without considering other secondary savings,” Jaffer said.

GBHL owns and operates two specialized dry bulk discharge terminals at the Port of Mombasa with a total capacity of 414,300 metric tonnes, including a grain terminal with a capacity of 258,500 metric tonnes and a dry bulk cargo terminal with a capacity of 155,800 metric tonnes.

Jaffer, 74, is the founder of MJ Group, Kenya’s largest provider of cargo handling services. The group’s flagship company, GBHL, owns and operates two specialized dry bulk discharge terminals at the Port of Mombasa with a total capacity of 414,300 metric tonnes, including a grain terminal with a capacity of 258,500 metric tonnes and a dry bulk cargo terminal with a capacity of 155,800 metric tonnes.

MJ Group is also the owner of several cargo handling terminals and container freight stations in Uganda, Kenya, and the United States.