IPNews-Monrovia: InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), and Global Logistics Services(GLS) have signed an Engineering, Procurement and Construction (EPC) contract with Liberian contractor, BMC Group, to enable construction to commence on the Liberia Inland Storage Facility (LISF) project.

InfraCo Africa will be the majority shareholder in the project which will develop Liberia’s first open-access commercial warehousing facility and operations.

LISF is being developed by InfraCo Africa, with CPCS Transcom (CPCS) acting on their behalf, in partnership with Liberian logistics company GLS Group.

The 4,600m2 facility will be situated 10 kilometres from the Freeport of Monrovia. LISF will allow businesses to optimise their supply chains, minimising stock wastage and damage which should ultimately reduce overall costs to the end consumers.

Gilles Vaes, CEO of InfraCo Africa, said: “The LISF will provide businesses of all sizes with access to much-needed storage and sophisticated warehouse management systems, enabling them to drive efficiencies and grow their businesses. By facilitating trade, LISF will promote wider economic development as Liberia seeks to recover from the impact of the COVID-19 pandemic.”

“With our colleagues at CPCS, we look forward to working with our local teams at GLS and BMC Group to progress the build programme ahead of Liberia’s rainy season,” he added.

“Working on behalf of InfraCo Africa and GLS, we are thrilled to have sourced and led the development of the LISF,” said Amit Modi, Managing Director of CPCS.

“The project will support local SMEs in accessing storage solutions and value-added services that will create tremendous leverage in securing their supply chain and business growth.”

InfraCo Africa secured grant funding from PIDG’s Technical Assistance (PIDG TA) to carry out a pre- feasibility study to assess the power needs of the facility. PIDG TA has provided $360,000 of capital funding for the supply and installation of a rooftop solar-hybrid system that will provide the primary source of power to the facility.

The rooftop solar energy system will maximise energy efficiency, reduce overall dependence on diesel, and cut carbon emissions.

It is anticipated that the system will provide a replicable model for similar facilities in the region, with potential to drive down carbon emissions in the sector.

Peter Malcolm King, GLS Group CEO, said: “The shareholders of LISF are cognisant of the infrastructure deficiency in key growth sectors of the Liberian economy, specifically transport and logistics, and have combined resources to address the gap and support the country’s economic revitalisation.”

“We are very excited about the commencement of the project construction and we hope that through this commitment, we can support the central government’s plans around food security, a critical component of national security. To date, LISF has attracted significant interest from some of Liberia’s leading companies, across multiple sectors.”

With the African Continental Free Trade Area (AfCFTA) coming into effect on January 1, 2021, access to the LISF will position Liberian businesses well to benefit from integrated trade across the continent.

The World Bank’s Liberia Economic Update identifies essential trade and market activities as the foundation of economic recovery from the COVID-19 pandemic. By offering short and longer-term storage space for businesses and consignments of all varieties and sizes, the LISF is ideal for meeting market needs.

The facility is likely to provide significant benefit as Liberia emerges from the economic impact of the pandemic. Over time, the project plans to further tailor its facilities to match changing demands.

It is anticipated that construction will commence towards the end of the year with the LISF expected to become operational in 2021.

It may be recalled, on July 30, 2019, Global Logistics Services (GLS) and InfraCo Africa have signed a historic agreement for the first commercial modern storage facility and operations as integrated logistics services provider.

In a statement, Peter Malcolm King, CEO, GLS said that the joint venture company, Liberia Inland Storage & Distribution Services Inc. (LISDSI) will build an open-access, temperature-controlled storage facility within the Monrovia Industrial Park off Somalia Drive. The operation is due to commence in 2020 and will incorporate state-of-the-art inventory management systems, loading and unloading capacity, and range of storage temperatures.

“GLS and its partner, InfraCo Africa is proud to be taking on this noble project and together reiterated our commitment toward the improvement of our country, Liberia through strategic investments in infrastructure, human capacity and social welfare,” said King.

LISDSI aims to meet the growing storage needs of small, medium and large companies with the Mano River Union (MRU). It is likely to handle life-saving medicines and humanitarian aid relief materials too.

Importers/exporters, organisations and third-party logistics companies are expected to secure space requirements for the short to medium-term and the facility will operate a throughput and remote last-mile connectivity through distribution services. Improvement and development of local capacity in supply chain operations and support to local communities with increased development impact are some of the additional benefits expected.

“The project will also provide mountain of benefits to Liberia’s national development agenda, including improvements to the country’s supply chain infrastructure and processes, healthcare cold-chain logistics quality, reduced food and consumable prices, and increasing our trade potential, while supporting operations to manage their associated risks of doing business in Liberia,” added King