- Positioning Africa as the Transport and Logistics Champion
- Strategic partnership with Germany’s Deutsche Bahn
Thelo Group is the African transport and logistic solutions provider for freight owners. It has announced an expansion of its offer to deliver integrated transport corridors (rail, port, and rolling stock), with multi-freight and multi-users, to efficiently move Africa’s valuable resources. These resources are mainly mining commodities, agricultural products, containers, and bulk liquids.
Thelo offers interconnected transport corridors as a response to Africa’s challenges in transportation and to support the single market of Africa’s Continental Free Trade Area. AfCFTA [1] is expected to increase intra-African trade by 50%. Thelo is working to improve Africa’s road and rail infrastructure. Currently, logistics costs in Africa are 75% higher than other parts of the globe [2].
Ronnie Ntuli is the Chairman of Thelo Group. He said: “We are mobilizing capital from investors both in Africa and abroad, and leveraging world class engineering and operational capabilities to create interconnected large-scale transport and logistic corridors for Africa. Thelo, as an independent African company plays a key role in developing, managing and operating national and regional development corridors.
“Thelo’s multi-user, multi-freight approach will provide more efficient transport solutions for multiple freight owners, resulting in economies of scale and a reduction in transport and logistics costs.”
Thelo Group is a rare African entity that has the expertise and capability to execute large infrastructure projects along the entire value chain. This includes planning, engineering, EPC oversight and testing, as well as training, operations, and maintenance management.
Mr Ntuli added: ” Our skills and capacity, along with our years of experience and deep understanding of Africa’s transportation and logistics infrastructure market, sets us apart and gives a leading edge.”
We are the ideal strategic partner for investors interested in Africa’s transport sector.
Thelo is transforming its relationship with DB Engineering & Consulting, a subsidiary of Deutsche Bahn Group A. G. to an exclusive strategic partner. DB E&C is Thelo’s technical partner in sub-Saharan Africa. It will develop, manage, and deliver engineering, consulting, and technical capacity as well as enhance the operational efficiencies for Thelo’s railway sector projects.
Stefan Geisperger is the Managing Director of DB Engineering & Consulting for International Markets. He said: “Our long-standing and global experience in the railway industry, combined with our valued relationship with Thelo are crucial for Africa’s need for integrated transport infrastructure. Deutsche Bahn is committed to its partnership with Thelo Africa, under our newly restructured exclusive partnership .”
Mr Ntuli commented on Thelo’s partnership with Germany’s Deutsche Bahn. “Thelo feels honoured by DB’s continued commitment to our partnership within the sub-Saharan Africa region and we are excited to continue working on an exclusive basis together with arguably the leading fully integrated, global railway conglomerate. DB’s global expertise and experience in the mobility sector over the past 180 years makes it the ideal partner for Thelo in developing integrated transport infrastructure and logistics on the continent of Africa.
Thelo, with trains operating in multiple jurisdictions throughout Southern Africa, has built up its internal capacity for Thelo Rolling Stock over many years. The Group continues financing rolling stock (locomotives, freight wagons) via lease agreements with rail operators and freight owner. It is in the process of establishing strategic partnerships to support its ports vision.
The company’s vision is to lead Africa’s transportation and logistics, to support the continent’s growth and economic development over the long term, and to drive social and economic progress by connecting rural areas in agricultural and mining rich regions.
The AfCFTA will increase intra-African trade by 81% in 2035 [3]. This will highlight the importance of different transport modes including rail, ports, and rolling stock. The AfCFTA [4] is expected to increase the transport sector by nearly 50%. The African Development Bank estimates the need for investment in road, rail, air and port infrastructure of US$35-$47 billion per annum [5].
The bulk of Africa’s cargo is agricultural and mineral products, including strategic minerals for international export. The continent’s rail transport system is in a state of disrepair, which results in a lot of stranded cargo. The lack of capacity among national operators has also led to a heavy reliance on trucks, and the road network which transports 80% of goods. Thelo Group’s rail transportation and infrastructure development project aims to address these issues. It offers a more cost-effective and efficient solution that will reduce the reliance of trucks and improve overall transportation.
Thelo Group has partnerships with the Industrial Development Corporation, which owns 10% of Thelo Rolling Stock. A Memorandum of Understanding was signed with the African Export-Import Bank, which, in line with its pillar of financing infrastructure that facilitates trade, is acting as the lead arranger and advisor for Thelo’s rail corridors and infrastructure development projects.
Thelo builds closer links with government and other stakeholders. It offers a reliable partner for long-term development rights and operational rights.
The company presents its proven transformational transport and logistic capabilities to development finance institutions (DFIs), multilateral finance agencies, export credit agencies, and banks. Thelo extends its collaboration relationships with large mining and agri-producer companies, freight owners, shipping companies, and transport companies.
[3] Trade Pact could boost Africa’s income by $450 billion, study finds (worldbank.org).
[5] African Economic Outlook 2018, (African Development Bank