Nigeria’s air freight will be getting a boost with the launch of a multi-million naira cargo warehouse by the Mainstream Cargo Limited.
Situated at the Lekki-Epe axis, the modern warehouse’s proximity to the free trade zone, a deep seaport, and an airport in the longer term is deliberate. It is positioned to offer world-class storage facilities around these areas with the intent to rapidly expand and improve its capabilities in these areas.
Speaking on how the cargo warehouse will boost air freight, Seyi Adewale, Chief Executive Officer – Mainstream Cargo Limited told BusinessDay that from an economic standpoint, it is very expensive to let ground handling companies hold or store cargoes for more than seven days.
Adewale explained that after seven days, huge storage costs are applied per kg and importantly, Nigerian customs disallow storage more than 28days after which it must be evacuated to their warehouse with other consequences.
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“Naturally, ground handling company warehouses are custom bonded warehouses and are naturally a throughput for effective clearance. When appropriate, modern and well-equipped warehouses are built around airports as we see in other developed economies, it allows end-users, distributors, manufacturers and retailers to order or bring larger quantities and therefore benefits from the economies of scale that helps final cost to consumers.
“The warehouse will also allow importers of specialized products to have direct oversight responsibilities of their shipment. The custom bonded warehouses are highly restricted areas and thus importers do not have inspection, oversight powers over their imports. So the more developed our economy is, the more modern, specialized warehouses and storage areas would be set and available around this airport axis thirdly, imports do come in batches especially for larger shipments and a holding point is also desirable,” the CEO of Mainstream Cargo Limited explained.
Speaking on the aim for setting up Mainstream’s Cargo warehouse, Adewale told BusinessDay that his goal is to support and enhance in his own little way, the logistics value chain.
He said he believes Nigeria can largely improve its commercial warehousing and storage facilities and capabilities as many warehouses don’t have the required structure and technology to enhance or drive a 21st-century compliant warehouse or storage centre on a commercial basis.
“Many cargo warehouses along Apapa-Oshodi expressway, Airport area, Lekki-Epe axis of Lagos for examples are mostly ‘dump sites’ in our opinion. More improved new warehouses and storage centres could be seen along Lagos-Ibadan expressway and this is what we intend to offer along the Lekki-Epe axis albeit our first step regarding this objective.
“Furthermore, storage of fresh farm produce and pharmaceutical products are also very limiting on a commercial storage facility basis,” he said.
With a target to reach e-commerce and pharmaceuticals in the first instance, he envisages that ICT and final product storage of FCMG will also benefit and appreciate the facility and service offerings of the warehouse.
He said that fresh farm producers will also love the Mainstream warehouse’s offerings due to the temperature-controlled areas of the facility.
Adewale disclosed that the warehouse is deliberate to meet the real needs of its target market and not general in scope or nature, adding that it’s a beautiful work area with very large structure and carefully thought out storage area.
“All racks, shelves and equipment are in standard and original quality comparable to what you would see in IKEA in the UK although on a smaller scale,” he added.
Speaking on some of the facilities installed in the warehouse to aid proper handling and preservation of cargoes, he said, “The facility has three storage areas, two of which are fully enclosed to hold temperatures between 18-24degrees and a rack centre that holds up to 54pallets with original loading equipment such as 100tons pallet trucks and other loading equipment.
“The facility has a standby 30kva soundproof generator, three office spaces that could serve as store and warehouse managers’ office, a facility management area and a reception area. The land area is 620sq.mtrs because it better serves specialized finished products.”
The CEO of Mainstream Cargo Limited said the warehouse is up for lease and is up to five years minimum, adding that the company intends to work and partner leaseholders on a long term basis.
“We have a very competitive pricing regime in order to attract our target market. Remember the COVID led Pandemic has reduced significantly the capacity of many companies in 2020. We are willing to be part of the rebuilding and kick-start process. In short, we are very affordable,” he said.
