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Home » Industry drivers of cold chain demand and the role of 3PLs

Industry drivers of cold chain demand and the role of 3PLs

By Eamonn Ryan

This webinar titled ‘Strengthening the Cold Chain: Analysis and Recommendations for West Africa’, focused on current cold chain conditions and future opportunities in Ghana, Senegal and Côte d’Ivoire. Hosted by the Global Cold Chain Alliance (GCCA), it featured a panel of global and regional cold chain experts with deep operational, technical and policy experience. The panel included:

  • Greg Laurin, president, Conestoga Cold Stores
  • Nicholas Pedneault, CEO, Congebec
  • Roudy Akiki, COO Africa, CT-Technologies
  • Paul Matthew, director, GCCA Africa
  • Amanda Brondy, vice-president, International Projects, GCCA
  • Madison Jaco, manager, International Projects, GCCA

Together, these speakers brought perspectives spanning cold storage operations, logistics, engineering, energy systems, investment and international development programming.

This is part five of an eight-part series, and this section identifies the primary industries driving cold chain development in West Africa and examines why third-party logistics models remain limited across the region.

Rather than outsourcing storage and distribution to a shared facility, many producers and distributors build their own cold stores and distribution centres near their markets.
Rather than outsourcing storage and distribution to a shared facility, many producers and distributors build their own cold stores and distribution centres near their markets. Freepik.com

…continued from part four.

The panel emphasised that the fishing and seafood industries are the most significant drivers of cold chain development in Senegal and Côte d’Ivoire. Both countries have seen substantial foreign direct investment in seafood processing, freezing and export infrastructure, particularly from Asian and European companies importing products back to their home markets.

In Côte d’Ivoire, the industry is characterised by deep-sea trawlers and frozen imports, with infrastructure designed to support large-scale, export-oriented operations. In Senegal, by contrast, cold chain systems are often linked to local fishing fleets and domestic markets, though exports remain important. This distinction has influenced the type and scale of cold storage and transportation infrastructure observed in each country.

 

Retail and modern grocery chains

Another important driver of cold chain demand is the expansion of modern grocery retail. International retailers such as Carrefour and Auchan have invested heavily in Côte d’Ivoire and Senegal, bringing with them higher food safety standards and more sophisticated temperature-controlled logistics.

The panel noted that some of the most advanced cold chain operations observed during the assessment were associated with these retailers. Their presence has helped raise expectations around product quality, traceability and cold chain integrity, particularly in urban markets.

While seafood dominates in Senegal and Côte d’Ivoire, Ghana’s cold chain development has been driven largely by the poultry sector. Pharmaceuticals, healthcare and horticulture were also identified as emerging users of cold chain services across all three countries, though these sectors remain smaller in scale compared to food-related industries.

Economic factors also play a role. Côte d’Ivoire’s relatively higher GDP per capita supports greater consumer willingness to pay for frozen and chilled products, reinforcing demand for cold chain infrastructure.

 

Limited presence of third-party logistics providers

Despite growing demand, the panel observed that true third-party logistics (3PL) cold storage providers are rare in West Africa. Greg Laurin explained that, unlike North America or Europe, most cold storage facilities in the region are vertically integrated and dedicated to a single company’s products.

Rather than outsourcing storage and distribution to a shared facility, many producers and distributors build their own cold stores and distribution centres near their markets. While this approach solves immediate logistical challenges, it prevents operators from realising the efficiencies and flexibility of a multi-customer 3PL model.

 

Barriers to 3PL development

Several factors limit the growth of 3PL cold chain services:

  • Inconsistent demand volumes
  • Limited trust in shared infrastructure
  • Financing constraints
  • Lack of standardized operating practices

Without sufficient scale and stable throughput, 3PL providers struggle to justify investment in large, modern facilities.

Despite these challenges, the panel agreed that significant opportunities exist for 3PL development as trade volumes increase, food safety regulations strengthen, and regional integration improves. Lessons from other developing markets suggest that once anchor customers are secured, shared cold storage networks can expand rapidly.

Next, part six will focus on cold storage design, refrigeration technology, energy use, and operational best practices.

Continue in part six…