Lonrho to Develop a Bonded 'dry port' Logistics Centre in Luanda, Angola with Enditrade Logistica Integrada

21 April 2008
Content from a Premium Partner
Lonrho (London)
press release

Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African investments, today announces that it has signed an agreement with Enditrade Logistica Integrada Sarl ("Enitrade") to establish a new logistics centre and bonded 'dry port' in Luanda, Angola, to be known as the Enditrade Logistics Terminal ("ELT").

Enditrade, a logistics group, is a 100% owned subsidiary of the Angolan State owned company, Endiama.

When developed, ELT will comprise a new 3,867m2 office development and a 15,000m2 bonded 'dry port' facility. It will be developed on existing, zoned, Enditrade owned land at Grafanil, Luanda. This location has been chosen for its excellent access to major road systems and its proximity to the new Luanda airport currently under development.

Initially focused on the requirements of the mining industry, the 'dry port' will provide a fast track solution for goods being imported into Angola to support the development of Angolan industry. Currently there is severe congestion at all the major Angolan ports, often causing delays of up to three months to clear goods. This has developed as a result of the rapid growth of the Angolan economy. The backlogs and delays are a growing concern for local industry.

ELT has been developed by Enditrade as a solution to help reduce the significant congestion at Luanda and other ports, by providing the ability for designated containers and cargoes to be rapidly offloaded at the port and delivered in bond to the new secure facility. They will then be cleared by customs officials based at ELT for delivery to customers throughout Angola.

The state of the art terminal will utilise the latest technology in container handling systems and equipment to provide an efficient and rapid service to its customers, and help to reduce congestion at sea ports.

The 20,733m2 ELT facility will cost US$ 9.0 million to develop. A new Angolan company has been established for the project, ELT Luanda, which will be owned as to 51% by Lonrho; 30% by Enditrade and 19% by Project Net.

Following repayment of all commercial loans for the project, dividends will be split 40% Lonrho; 35% Enditrade and 25% Project Net.

Enditrade will lease the site for 20 years to ELT Luanda, on a peppercorn rent, and will co-manage the operation with Lonrho.

Project Net, an Angolan project development company, will project manage the development of the facility and arrange local commercial funding for the development. Lonrho will provide funds for the balance of the project cost not available from the local market.

Enditrade has obtained planning and customs authority for the development of the project which is scheduled to be completed and operational within nine months of the development commencing.

David Lenigas, Lonrho's Executive Chairman commented:

"This is a significant project that will bring direct benefits to the economic growth of industry in Angola. The Enditrade Logistics Terminal will provide modern, efficient logistics solutions that will fast track the movement of goods into and around the country.

"I am confident that this facility, once operational, will be able to be replicated in conjunction with Enditrade on other sites in Angola to create a network of state of the art logistics terminals that will begin to address the requirements of the Angolan market."

ENQUIRIES

  • Lonrho Plc +44 (0)20 7016 5105
  • David Lenigas, Executive Chairman +44 (0)7881 825 378
  • Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
  • Emma de Borchgrave, Executive Director +44 (0)7867 785 177
  • Pelham PR Charles Vivian +44 (0) 20 7743 6672, +44 (0) 7977 297903 J
  • ames MacFarlane +44 (0) 20 7743 6375, +44 (0) 7841 672831
  • Collins Stewart Europe : NOMAD to Lonrho Hugh Field / Simon Alston +44 (0) 20 7523 8350

NOTES TO EDITORS

About LONRHO:

Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company's shares are traded on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources. The Company has over 20,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.

Since 2006, the Company has invested in or acquired control of:

  • Hotel Cardoso - www.hotelcardoso.co.mz
  • Lonrho Mining - www.lonrhomining.com
  • Luba Freeport - www.lubafreeport.com
  • Fly540 - www.fly540.com
  • Norse Air - www.norseair.co.za
  • Swissta Holdings - www.swissta.com
  • SA Independent Liner Services - www.saliners.com
  • Bytes and Pieces
  • Kwikbuild - www.e-kwikbuild.com
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