Viaservice Kenya and Capital Pay International have entered into a strategic partnership that targets to reduce logistics cost for traders in South Sudan.
The two firms have signed an agreement that integrates their systems to allow for real-time cargo monitoring and enhanced visibility, transparency, and traceability throughout the logistics process with the aim of eliminating the $5000 shippers are charged for containers to and from South Sudan.
Viaservice which is a subsidiary the Swiss-based Viatrans Group will deploy its digital trade facilitation and financing solution, Viaservice Container Solution (VCS) to address the container cash deposit non-tariff barrier which affects containerised cargo moving to and from South Sudan via the Port of Mombasa in Kenya.
Viatrans Global Head of Trade Facilitation Morgan Lepinoy said VCS eliminates the need for cash deposits traditionally required by shipping lines, while safeguarding the commercial interests of shippers, clearing and forwarding agents, shipping lines, and other stakeholders across the logistics chain.
“We estimate that across the region, container deposits amount to about to $1.5 billion every year. By removing that barrier, we are able to unlock all that trapped capital that is substantially affecting South Sudanese operators more so the domestic containers moving from the Port of Mombasa and staying in Kenya. So obviously landlocked countries are more affected by these container deposits,” said Lepinoy.
By removing this structural constraint, the firms say the solution enhances working capital availability for traders, improves operational efficiency, and strengthens the competitiveness of trade flows serving South Sudan.
VCS will be integrated with Capital Pay’s Digital System to monitor the cargo in real-time which Capital Pay International Chief Executive Officer Garang Malek said will reduce the high deposit requirements affecting South Sudanese traders and freight operators.
“The middlemen are always putting their fees on top claiming a fictitious fee of over $5000 and they call it a container deposit. We did our research in the region and we have seen that Uganda, Rwanda and Kenya are paying a fee which is significantly less than what the South Sudanese traders are paying for,” said Malek.
The partnership is further backed to enhance transparency and reduce delays in container logistics enhance container monitoring, improving visibility, transparency, and accountability thereby reducing risks of loss, mismanagement, and disputes while strengthening trust among logistics stakeholders.
The partnership will also enable faster container turnaround times, helping to reduce congestion and improve operational efficiency.
