e-commerce service to deliver used agriculture machinery to Africa
Mitsui O.S.K. Lines, Ltd. today announced the launch of a cross-border e-commerce website, a business to export used agricultural machinery to Africa through a business partnership with Karasawa Agricultural Machinery Service.
In addition, MOL will establish KiliMOL in May 2021 to handle the new business. In September of last year, MOL and Karasawa Agricultural Machinery signed a memorandum of understanding (MoU) related to the business and worked together to study the prospects for commercialization. Initially, the business will target Kenya in East Africa, a major agricultural center with many small farms and a region showing tremendous economic growth.
In January this year, MOL procured five units of used agricultural machinery from “noukinavi.com” operated by Karasawa Agricultural Machinery and transported them on the MOL-operated car carrier “Marguerite Ace” from the Japanese ports of Kobe and Kisarazu to Mombasa, Kenya.
In March, MOL and Karasawa Agricultural Machinery conducted a demonstration test to confirm that Japanese agricultural machinery could perform effectively on local farmland near Mwea, a suburb of Nairobi. The on-the-spot inspection confirmed the effectiveness of Japanese-made small-scale agricultural machinery and impressed the local farmers and other observers. In the future, use of agricultural machinery is expected to increase in Africa and other developing countries, so demand for used equipment is likely to grow as well.
To establish a business that can meet this demand, MOL decided to establish KiliMOL. KiliMOL will contribute to improved agricultural productivity in developing countries in combination with MOL’s high-quality, safe, and reliable transport service and Karasawa Agricultural Machinery’s strength in procuring high-quality used agricultural machinery from all over Japan, while addressing food shortages in countries with rapidly growing populations.
The MOL Group will enter the e-commerce business to expand its logistics business domain and plans to expand the scope of the business beyond the trade of used agricultural machinery in Africa by reinforcing the activities of its group company in Kenya. FES can also consider collaborating with relevant agriculture machinery company to launch an e-commerce that facilitates agriculture businesses in African countries to offer high-quality, safe, and reliable transport service that improves their agricultural productivity and reduce food shortages in the cities. This effort will raise FES reputation.