African industrial company launches pan-African shipping company

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Arise’s first project developed the new port of Owando in Gabon (Arise IIP)

Posted on November 11, 2022 at 4:49 p.m. by

The Maritime Executive

As the implementation of the African Continental Free Trade Area (AFCFTA) agreement gains momentum, Africa’s manufacturing industry is expected to grow while creating new opportunities in raw materials and industrial operations. As many African countries make the transition to developing indigenous industrial and agricultural production, this is also giving rise to a new demand for dedicated shipping companies to provide a full range of maritime and logistics services to the mining and industrial sectors.


Recently, the South African government released preliminary plans for a national shipping company, and now an emerging African infrastructure developer, Arise Integrated Industrial Platforms (Arise IIP), has launched a shipping company. Arise says the new shipping company is being launched to support the growth of African commodities.


“As many African countries develop their own processing and manufacturing capabilities to complement growing commodity exports, there is strong demand for a bespoke transport and logistics company that understands Africa and its needs,” said Captain Pappu Sastry, CEO of Arise Shipping and Logistics. “We will provide a full range of shipping and logistics services to meet their needs. It can be anything from inland infrastructure, ports or transhipment and shipping. The added value will be the innovative removal or structural solutions that will help small mines grow and, in turn, help local economies grow for long-term prosperity.


Arise Shipping plans to build a fleet comprising bulk carriers, tankers and specialist vessels while providing a range of associated logistics services. Arise Shipping and Logistics will primarily provide services that complement the operations of its parent company Arise IIP, but will also build its own portfolio of customers. The first customers are expected to come from the mining and commodities sector.


Arise IIP is a joint venture between the Africa Finance Corporation (AFC), a financial institution created by African sovereign states, and the African Transformation and Industrialization Fund (ATIF), created in Abu Dhabi, launched in 2022 for the development of Africa. The company has grown from a single project in Gabon in 2010 to supplying a wide range of industrial, infrastructure and port developments in seven countries in Africa, including Gabon, Togo, Benin, Côte d Ivoire, Congo, Rwanda and Chad. More recently, it launched maritime operations in Sierra Leone and Guinea Conakry.


The urgency of African industry and the opportunities it creates are also attracting the attention of a wide range of transport and logistics companies. Maersk and its APM terminals, MSC and its company TIL, and Hapag-Lloyd have each made significant investments in Africa. The companies are also actively competing for the rights to develop new terminals and logistics operations in Africa.


Citing the predominance of international companies, the South African government is proposing to set up its national shipping company. The draft plan was recently released calling for a shipping company that would operate bulk carriers, tankers and container ships as well as port and logistics operations aimed at strengthening the supply chain and taking advantage of emerging business opportunities in Africa And in the world.

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