Imperial Logistics inks deal with LMI Holdings for logistics and supply chain solutions in Ghana

Jan 20, 2017: Imperial Logistics and LMI Holdings have entered a strategic partnership to form a new business, Imperial LMI Logistics that will deliver logistics services in Ghana and West Africa.

"The vision of Imperial LMI is to be the leading integrated, end-to-end supply chain partner of choice in Ghana, with sufficient capacity and scale to catalyse economic growth and position Ghana as a trading hub for West Africa," reveals Imperial Managed Solutions, chief executive officer, Johan Truter.

The launch of this new entity, he states, will enable this vision by merging LMI's infrastructure with Imperial's operational capabilities. This, in turn, will leverage the relationships that both groups have established with end users, service providers and decision making bodies in Ghana.

While Imperial Logistics, a subsidiary of Imperial Holdings, is one of Africa's largest supply chain solutions provider, LMI Holdings is a diversified Ghanaian group involved in businesses spanning across construction, property development, logistics, utilities and ICT sectors in Ghana.

"Our partnership with Imperial represents an exciting new era for the group, enabling us to use Imperial's systems, technology and skills to unlock the potential of LMI's logistics assets," said Kojo Aduhene, chairman and CEO of LMI Holdings. "It will enable LMI to realise its vision of being a world class Ghanaian industrial business; contributing to the creation of an environment that attracts foreign investment into Ghanaian industry," he adds.

The new business will set stage for a new 93,000 sqm mega warehouse in Tema, which will enable Imperial LMI Logistics to offer clients state-of-the-art storage with easy access to the Port of Tema - an important gateway to West Africa.

Operations in Ghana by Imperial Logistics have been on since the past seven years through its group company Imperial Health Sciences. It also has a longstanding relationship with LMI as its preferred local infrastructure partner in Ghana. The Imperial LMI partnership deepens the relationship between Imperial and LMI and allows the new company to offer end-to-end managed logistics solutions to a wider range of industries in Ghana.

Imperial LMI Logistics will be part of Imperial Managed Solutions, and, like this division, is based on an asset light business model, he explains. "The business will not acquire any assets of its own. Strategic business partners will be identified to provide the required assets, including warehouses and vehicles. A detailed vetting process will be employed to ensure that service providers comply with the required service levels, including adherence to industry legislation."

Skills transfer and the development of local enterprises are important elements of the new business. "We are proud to have joined forces with a Ghanaian corporation that has a long and proud history of contributing to the growth of industry in Ghana and Africa," Truter stresses. "Imperial LMI Logistics is committed to employing and upskilling local people wherever possible. Through this venture, we will bring international best practice to Ghana and we aim to ensure its sustainability by building and growing local talent." Ghanaians will be developed to take on senior positions within the business, and this will include training at Imperial's Johannesburg based in-house training centre, the Imperial Logistics Academy, he states.

The services that Imperial LMI Logistics will roll out initially include freight and warehousing services, as well as associated value added offerings. Truter elaborates: "Container transport from port to destination will be offered, together with outbound primary, secondary, national and cross-border logistics. On the warehousing side we will offer dedicated and multi-principal facilities, ambient and temperature controlled, as well as bulk and bonded storage." The value added services that the company will provide include co-packing, light manufacturing, container de-stuffing and stuffing. Imperial's reporting processes, business intelligence systems and tools like vehicle scheduling and tracking will ensure that clients reap the benefits of full visibility, seamless integration and international standards throughout the supply chain, he adds.

Looking ahead, Imperial LMI Logistics will expand its integrated solutions with the addition of new service capabilities as these are enabled by the completion of various LMI capital projects. "Upon the completion of LMI Holdings' container terminal in the Tema enclave (adjacent to the new warehouse), Imperial LMI Logistics will be able to offer an integrated solution for multiple users of the terminal and the warehouse," Aduhene explains. This container terminal is currently under construction and scheduled for completion in 2018. "The construction by LMI of a rail infrastructure from the Tema Port to the Tema enclave, and from Tema enclave to the new Dawa business park, will enable us to offer freight rail solutions. In addition, a barge operation on Lake Volta is being investigated, to offer an alternative mode of transport to complement the road infrastructure to the north of the country."