Komatsu recently received an order for 401 units of construction equipment, such as motor graders and wheel loaders, from the Ministry of Works and Transport of the Republic of Uganda for road construction and improvements in 112 regions. This is part of the export sales contract (total of about 600 units of construction and other equipment and total of about 500 vehicles for the total amount of about JPY17.8 billion) reached by Sumitomo Corporation. Komatsu will begin delivery in stages through Sumitomo after the contract becomes effective.
In addition to recent economic growth, Uganda is a rich agricultural country, with those engaging in farming accounting for about 80% of the total population. Therefore, currently the most important task for the government of Uganda is to construct and improve provincial roads, which will enable the distribution of agricultural products. Construction equipment to be delivered should significantly contribute to Uganda’s infrastructure development and economic growth.
In 1998 Komatsu signed a contract with a local distributor, and has engaged in sales and service ever since then. Komatsu believes that the high quality of its equipment and the customer-tailored service of the distributor have won excellent evaluations from the government and have resulted in the concerned contract. Komatsu plans to receive 10 people from the government to train in machine operation and maintenance at its training facility in Japan for two weeks before machine delivery, and dispatch one trainer to Uganda from Japan for one month at the time of machine delivery. The Japanese trainer will follow up and support the trainers of the government who return from Japan.
All equipment, installed with KOMTRAX (Komatsu Machine Tracking System), will be delivered to Uganda for the first time after the government’s approval of KOMTRAX telecommunication. By monitoring the location of machines and the hours and conditions of machine operation, Komatsu will work to improve operational efficiency, cut down maintenance costs, and promote energy-saving machine operation, thereby further supporting jobsite operations.
All machines are to be delivered to Uganda by Sumitomo for use in road construction and improvements. All machines will be financed jointly by Japan Bank for International Cooperation (JBIC) and Sumitomo Mitsui Banking Corporation (SMBC). SMBC’s part in this financing will be covered by the export credit insurance program of Nippon Export and Investment Insurance (NEXI), the official export credit agency of Japan.