Andre Klynsmith

Shipping and Logistics

350 Kilometres From the Quay: A De-Grouping Office in Antananarivo Changes the Madagascar Sum

SACO Shipping opened an office in Antananarivo on 1 September, and the point of it is not the address. The neutral NVOCC intends to de-group consolidated cargo in Madagascar's capital rather than at the container freight station in the port of Toamasina, roughly 350 kilometres away on the coast.

Shipping and Logistics

4 September 2026 • 4 min read

Moving a consolidated container from Toamasina to Antananarivo is where Madagascar's freight cost actually sits. Shifting the de-grouping point inland moves customs clearance to where the consignees are — and turns one difficult 350-kilometre leg into a shorter, cheaper set of local deliveries.

The bottleneck is inland, not at the berth

SACO Shipping Indian Ocean Islands managing director Percy Lamy put the problem plainly: most businesses want their cargo delivered to Antananarivo, but moving it inland involves additional costs, security risks and other logistical challenges. Madagascar's commercial activity is concentrated in the capital. Its principal maritime gateway is on the other side of the country.

Under the current pattern, an LCL container arriving at Toamasina is de-grouped at the port container freight station. Every consignee's share then travels inland separately, or the full box moves up and is broken down informally at the other end. Either way the expensive, exposed leg happens before the cargo is cleared and before it is legally in anybody's hands. The new service allows the box to move inland intact and be de-grouped in Antananarivo with customs clearance facilitated there, so that, in Lamy's words, Malagasy traders can clear and receive their cargo more quickly in the capital.

Port Louis stays in the middle

The Madagascar operation will be managed from Mauritius and will report to Lamy, whose role has been expanded to cover the Indian Ocean islands. It runs under the same controls, regulations and audit processes as the Mauritius business, according to SACO group chief executive Dave Graham. For South African clients it will also be managed locally through the company's Africa Gateway in South Africa.

Port Louis remains the consolidation point. SACO cites active trade lanes from Hamburg, Antwerp, Singapore, Dubai, India and South Africa, with cargo moved to Mauritius for consolidation and onward shipment to Madagascar, and direct services used where appropriate. For a SADC exporter, that means Madagascar-bound cargo does not need a dedicated direct service to become viable — it needs a reliable hub and a credible party at the far end. Madagascar will be SACO's first fully branded operation in the Indian Ocean islands outside Mauritius, alongside offices in 14 African countries.

Why the timing is deliberate

Work is continuing on a major upgrade of Toamasina, including a quay extension, container yard capacity, an additional breakwater and infrastructure intended to let the port take larger vessels. Lamy described the expansion as making this an opportune moment to pursue further trade and logistics development in the country. That sequencing matters: bigger vessels deliver bigger call volumes, and a port that can receive more boxes without a matching inland evacuation capability simply moves the queue from the anchorage to the gate.

The commercial reasoning behind the office is equally instructive. Graham noted that Madagascar is a complex market and that freight forwarders may be cautious about entering markets where they do not have established partners. Madagascar has a significant textile manufacturing sector and trades with Southern Africa, Europe, Asia and the United States. The volume has always been there. What has been missing for many forwarders is somebody accountable inland.

About the Author
	Andre Klynsmith Entrepreneur & Technology Enthusiast Andre's expertise spans technology, blockchain, transport, and logistics — with a passion for innovation and driving positive change across industries. info@laaimylorrie.com | laaimylorrie.com