Logistics solutions company Thelo Group has ended its joint venture with Deutsche Bahn’s DB Engineering and Consulting (DB E&C) to form an ‘exclusive strategic partnership’ with the German company supporting its delivery of integrated multi-freight transport corridors through Africa.
The African company has run the Thelo DB joint venture alongside the DB subsidiary since 2019 but will now move to run its own operations with DB E&C acting as its technical partner.
Ronnie Ntuli, chairman of Thelo Group, said “As an independent African company, Thelo is playing an instrumental role in developing, operating, and managing national and regional development corridors.
“Importantly, Thelo’s multi freight, multi-user approach will deliver more efficient transport solutions to multiple freight owners at economies of scale that will reduce transport and logistic costs.”
Thelo’s corridors will support the African Continental Free Trade Area (AfCFTA) which was created in 2018 and is expected to boost the continent’s transport sector by supporting intra-African trade.
The intermodal trade routes created by Thelo will improve rail, road and port infrastructure in sub-Saharan Africa, where DB E&C will develop, manage and deliver engineering, technical and consulting capacity for Thelo’s railway projects.
Stefan Geisperger, managing director for international markets at DB E&C, said: “Our global and long-standing experience and expertise in the railway sector, coupled with our ongoing valued relationship with Thelo, is crucial for delivering on Africa’s critical need for integrated transport infrastructure.”
The Thelo DB venture previously worked on major projects throughout Africa, including a $3.2bn project in Ghana developing the country’s Western Railway Line.
Thelo Group’s other partnerships include investment from the Industrial Development Corporation into Thelo Rolling Stock, and a memorandum of understanding with Afreximbank, which will act as lead arranger and adviser of Thelo’s rail corridor projects.
