01/18/2024 | Press release | Distributed by Public on 01/17/2024 23:06
January 18, 2024
Mitsui O.S.K. Lines, Ltd.
MOL Logistics Co., Ltd.
TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto; Head Office: Minato-ku, Tokyo) and MOL Logistics Co., Ltd. (MLG; President & CEO: Koichi Yashima; Head Office: Chiyoda-ku, Tokyo Note 1) today announced the signing of a memorandum of understanding (MoU) with Revital Healthcare (EPZ) Limited (Revital; Chairman: Dr. Rajni Vora, Head Office: Mombasa, Republic of Kenya Note 2), a leading Kenyan medical disposables and diagnostics manufacturing company, for a strategic alliance to build a medical supplies and pharmaceutical distribution center in the Mombasa Special Economic Zone.
The signing ceremony of the MoU
Revital is Africa's leading manufacturer of medical supplies with strengths in technology and manufacturing that are highly regarded by the World Health Organization (WHO) and many other international organizations. Currently, sub-Saharan Africa has no distribution centers that are equipped to assemble medical supplies or store pharmaceuticals, so many items are assembled and stored outside of Africa before being shipped to Africa. In addition, some of the medical supplies manufactured by Revital in Kenya are exported once to overseas warehouses, where they are delivered from overseas warehouses to demand centers in Africa.
The construction of a distribution center in the Special Economic Zone at Kenya's Dongo Kundu Area, which is the subject of consideration in the MoU, will enable medical supplies manufactured by Revital and products manufactured outside Africa to be consolidated in the distribution center in Mombasa, from where they can be delivered more quickly and at lower cost to the rest of the African region, where there is a great need for medical supplies and pharmaceutical products.
The MOL Group aims to help address Africa's healthcare logistics challenges and improve healthcare standards, by combining the group's global network and expertise in ocean shipping, infrastructure, and healthcare logistics (Note 3) with Revital's expertise in medical supplies and pharmaceuticals and its network with international institutions.
Inside the Revital plant
MLG President & CEO Koichi Yashima and MOL Chief Country Representative in the Republic of Kenya Mikio Oyama commented on the signing of the MoU as follows.
Yashima said, "I would like to express my sincere respect for Revital's enthusiasm and commitment to solve social issues in 54 African countries, and the MOL Group will support businesses mainly in the logistics field through a concerted effort of the group. Revital develops and manufactures medical equipment needed in Africa today, ranging from test kits for infectious diseases to syringes and oxygen inhalers for newborn premature infants, and those initiatives are advanced and directly related to solving issues in the healthcare field. On the other hand, learning from the disruption caused by the soaring logistics costs at the time of the COVID-19 epidemic, the company and the MOL Group will jointly operate a logistics center to be built in the special economic zone in Mombasa to ensure safe and secure storage and to establish an efficient delivery system for the entire African region. Our MLG Vision is CreToSH : Creating Together a Space for Happiness. This is about working together with stakeholders to create valuable spaces for the well-being of all stakeholders. We believe that this strategic alliance will jointly raise the standard of medical care in Africa, which is in line with our vision and extremely valuable as it will directly contribute to solving social issues. We are proud to participate in the realization of this goal and promise to do our utmost to make it a reality."
Oyama said, "The MOL Group currently has a local subsidiary, MOL Shipping (Kenya) Ltd., and MLG's Nairobi Branch, and is engaged in the forwarding business of ocean and air transport to/from Africa. In May 2023, MOL and MLG signed an MoU for a strategic alliance with General Cargo Service Limited, the Kenyan logistics subsidiary of Velogic, the logistics arm of the Mauritius-based conglomerate Rogers Group (Note 4), jointly offering total logistics services including forwarding, customs clearance, warehouse management, and land transport in Kenya and neighboring countries. In July 2023, the two companies established the Logistics Japan Desk in Nairobi and began operating the MOL Group's first group-operated warehouse in Africa (Note 5). Based on this MoU, we will endeavor to improve the standard of medical care in Africa and solve logistics issues by delivering medical supplies and medicines safely, securely, and efficiently to where they are needed."
Revital Chairman Rajni Vora commented,
"We at Revital Healthcare are honored and excited about the strategic alliance with MOL and MLG. This partnership marks a significant milestone in our mission to address critical healthcare challenges across the African continent. By joining forces with MOL Group, a renowned global player with expertise in ocean shipping, infrastructure, and healthcare logistics, we aim to revolutionize the medical supplies and pharmaceutical distribution landscape in sub-Saharan Africa.
Our commitment to manufacturing high-quality medical disposables and diagnostics aligns seamlessly with MOL's vision to improve healthcare standards and tackle logistical barriers. This alliance enables us to establish a state-of-the-art medical supplies and pharmaceutical distribution center in the Mombasa Special Economic Zone. This strategic location will not only streamline the distribution process but also contribute to faster and more cost-effective delivery of essential medical supplies throughout the African region.
We are particularly grateful for MOL and MLG's dedication to supporting businesses in the logistics field, as evidenced by their efforts to enhance healthcare logistics in Africa. This collaboration represents a shared commitment to advancing healthcare standards and addressing social issues in the region. We believe that our joint efforts will significantly elevate the standard of medical care in Africa, making a positive impact on the lives of individuals and communities.
As we move forward, Revital Healthcare looks forward to the collaborative journey with MOL and MLG, leveraging our respective strengths to create meaningful and sustainable solutions for healthcare logistics challenges in Africa. Together, we are poised to make a real difference and contribute to the well-being of the African population."
The MOL Group is committed to developing and expanding new logistics and other non-shipping businesses in emerging markets, including Africa, in the portfolio and regional strategies under the "BLUE ACTION 2035" management plan. Taking advantage of this MoU, the group will pursue its business in Africa.
(Note 1) MLG has 139 offices and business sites in 26 countries and 189 agent offices in 51 countries worldwide (as of October 2023). For more information, please refer to the following link.
Global Network | MOL Logistics Co., Ltd. (mol-logistics-group.com)
(Note 2) Revital is a leading African manufacturer of 58 types of medical and related supplies, including syringes, blood collection tubes, simple test kits for COVID-19, malaria, HIV, and other diseases, and blood transfusion equipment, with its head office and plant in the Special Export Zone of Mombasa, Kenya's second largest city. It has received recommendations from various organizations such as the International Organization for Standardization (ISO) and the World Health Organization (WHO), and international organizations and various government agencies such as the United States Agency for International Development (USAID), the Bill & Melinda Gates Foundation, and the United Nations Children's Fund (UNICEF). In addition, Japan's Ohara Pharmaceutical Industries, Co., Ltd. (CEO: Seiji Ohara; Head Office: Koga, Shiga Prefecture) has held a stake in Revital since 2021 through the Africa Healthcare Fund managed by AAIC Investment Pte. Ltd. (President: Susumu Tsubaki; Head Office: Singapore).
Revital website: Revital Healthcare - Africa's Largest Syringe Manufacturer (revitalhcare.com)
(Note 3) Healthcare logistics must comply with strict regulations regarding the handling of products such as medical supplies and pharmaceuticals and provide safe, high-quality transport, and logistics services that meet the needs of customers in the medical field.
(Note 4) For details of the strategic alliance, please refer to the June 12, 2023, press release: "MOL Group Team up with GCS Velogic, Major Logistics Company Service East Africa - Enhancing Local and Regional Services -"
(Note 5) For details on the Logistics Japan Desk and Nairobi Warehouse, please refer to the September 1, 2023, press release: "MOL Group Launches 1st Warehouse Operation in Africa - Enhancing Logistics Services in Keny, Neighboring Countries -"