Cold Solutions to construct US$70m cold chain facility in Kenya

KENYA – Cold Solutions Limited, a temperature-controlled warehouse and logistics service provider, has announced that it will invest KSh7.5 billion (US$70 million) in constructing a state-of-the-art, temperature-controlled cold storage warehouses in Kenya.

The firm will construct Cold Solution’s flagship facility in the Tatu City Special Economic Zone in Kiambu. 

The 15,000 sqm grade ‘A’ cold storage complex on six acres at Tatu City will be the country’s largest, most advanced and efficient in the region.

Utilising a combination of local and international specialists, it is expected to be operational in 12 to 18 months.

“We are delighted to welcome Cold Solutions’ transformational cold storage complex to Tatu Industrial Park, which is home to more than 50 Kenyan, East African and multi-national businesses building best-in-class facilities in Kenya’s first operational Special Economic Zone,” said Chris Barron, Kenya Country Head for Rendeavour, Tatu City’s owner and developer.

By providing power, water, waste management, roads and ICT, Tatu City has created an ideal operating environment for businesses entering or expanding in East Africa.”

A typical grade ‘A’ facility is defined as that with high specifications in terms of quality, size much bigger in scale than typical warehouses, hook height and dock levellers, large lay-down area around the warehouses and specialist facilities such as cold storage.

It has been flexibly designed to cater for numerous temperature ranges from +26 to -40 C and multiple product ranges, from fresh fruit and vegetables, to pharmaceuticals and vaccines, meats and poultry and frozen foods.

Cold Solutions Kenya Limited is a portfolio company of ARCH Cold Chain Solutions East Africa Fund, a private equity fund advised by ARCH Emerging Markets Partners Limited (ARCH) and backed by African Development Bank (AfDB) which has invested Sh2.5 billion (US$23.3m) 

ARCH is a specialist emerging markets investment advisor with deep experience of emerging markets, private equity, asset management and legal and governance matters over many decades. ARCH focuses on delivering added value to investments, based on a risk-adjusted approach.

ARCH has an existing and planned network of operational offices, giving it an extensive global reach. It has successfully launched and is advising two emerging markets focused themes-Renewable Energy and Cold Chain Solutions platforms.

By establishing the Cold Chain Solutions East Africa Fund, ARCH Emerging Markets Partners Limited intends to spearhead the development and operation of large-scale energy efficient cold chain solutions facilities and end to end logistics throughout five countries in East Africa covering Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.

The fund plans to build up to 10 state-of-the-art temperature-controlled cold storage warehouses in the region. The warehouses will be built to international standards to enable food and product safety. The investment into East Africa will be at least KSh21.4 billion (US$200m).

“Cold Solutions’ one-stop-shops are designed to allow businesses to keep track of products in real-time and facilitate transportation across East Africa through temperature-controlled trucks, either within inner city or to long-haul destinations.

“Our storage facilities, together with our transportation and management services, will mean dependability and reliability,” Jared Irving, Managing Director, ARCH Emerging Markets Partners Limited said.

The creation of extensive and reliable cold chain solutions is essential to ensure food security and economic development.

Cold chain solutions can play a major role in minimizing food loss as well as improving food hygiene and public health. These businesses are also enablers for developing countries to take part in international trade as both consumers and producers.

The global cold chain equipment market size is expected to reach US$ 33.9 billion by 2027, expanding at a CAGR of 19.0% from 2020 to 2027, according to a new report by Grand View Research, Inc. 

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