Maersk Line’s new East Africa Cluster is more than just a name. It is also testament to an important development that is set to continue for many years.

Previously known as Kenya Cluster, the name change to East Africa Cluster comes at an important time with East Africa gaining importance as an emerging market.

In the commercial structure of Maersk Line, a cluster is a group of countries within a linked geography that fall under a common management structure.

The East Africa Cluster includes Kenya, Tanzania, Uganda, Rwanda, Burundi and the world’s newest independent nation, South Sudan.

More than just Kenya

This is not just a branding exercise; it’s about recognising the importance of the other countries, explains Steve M. Felder, cluster top for the rebranded East Africa Cluster.

“Kenya is and will always be the economic powerhouse of the region, as well as the largest and most important market in East Africa and the key transit point for hinterland cargo; however by rebranding the cluster we are aiming to strengthen teamwork within the cluster and afford due recognition to other East African countries,” Steve says. “Some of these like Tanzania are already large today, and others like the world’s newest country, South Sudan, hold immense promise for the future.”

South Sudan has an impressive growth rate forecast for 2012 at 7.2% (as per EU statistics). Uganda has a growth forecast of 6.7%, and new oil discoveries here make it an increasingly interesting market.

Most importantly, Tanzania is growing in importance in terms of market size, hinterland transit and volumes, says Steve. It currently represents around 30% of volumes for the cluster, and as a transit hub it serves Rwanda, Burundi, northern Zambia and eastern DR Congo. Its population is nearly the same as Kenya’s at 43 million, but right now Tanzania is enjoying higher growth rates (6.7% against Kenya’s 5%).

Synergies and teamwork

Steve has a positive outlook for the future of the region. “East Africa as a region holds immense promise, with increasing political stability and high economic growth rates,” he says. “We will continue to strive for providing excellent service to our customers, providing opportunities for global commerce in all countries in East Africa.”

East Africa Cluster is currently Maersk Line and Safmarine’s third largest cluster in Africa (after Southern Africa and Central West Africa). A.P. Moller - Maersk began doing business in Kenya in 1987 through a third party agent and established its own agency there in 1994.

Source: Maersk Line