Komar Distribution Services Unveils Strategic, Duty-Free Supply Chain

Staff Report From Georgia CEO

Tuesday, December 10th, 2024

Komar Distribution Services (KDS), a global leader in logistics and supply chain solutions, has announced the launch of a transformative, duty-free supply chain connecting West Africa to the United States. 

KDS is a division of Komar, a global apparel company with 174 factories in a dozen countries. One of Komar’s divisions, Star Garment, recently opened a $25 million state-of-the-art manufacturing facility in Togo enabling the groundbreaking supply chain initiative. The facility will support leading brands by streamlining garment and home goods production and import logistics through KDS’s newly operational distribution center in Ellabell, Georgia.

Duty-Free Benefits Drive Cost Savings and Competitiveness

This innovative supply chain capitalizes on Togo’s duty-free trade agreements with the U.S. under the African Growth and Opportunity Act (AGOA). By eliminating import tariffs on eligible goods, Komar delivers significant cost savings for its clients while boosting speed and efficiency compared to traditional manufacturing hubs in Asia.

“Our new duty-free supply chain model represents a major competitive advantage,” said Komar CEO Charlie Komar. “Combining the duty-free benefits of Togo with the strategic capabilities of the Port of Savannah enables us to provide exceptional value to our clients while ensuring efficient, on-time deliveries.”

Savannah: The Gateway to Efficient U.S. Distribution

The Port of Savannah, a cornerstone of KDS’s U.S. operations, continues to expand its role as a critical logistics hub, reporting a 13.5% growth in container volumes for 2024. With unparalleled infrastructure, including the Mason Mega Rail for rapid vessel-to-rail transfers and proximity to major interstates, freight from Savannah reaches 60% of the U.S. population within two days.

West Africa: A Strategic Duty-Free Manufacturing Hub

The Togo facility marks Star Garment Group’s first manufacturing venture in West Africa, complementing its 10 factories in Sri Lanka. Togo’s abundant cotton production, expanding port infrastructure, and duty-free trade status make it an ideal location for manufacturing investments.

“Togo’s duty-free access to U.S. markets under AGOA is a game-changer for cost efficiency and competitiveness,” Komar emphasized. “This strategic location aligns perfectly with our vision for a sustainable and ethical supply chain.”

Economic and Environmental Impact

By transitioning from raw cotton exports to value-added garment manufacturing, Togo stands to benefit from a significant economic boost. Star Garment’s new facility will create 2,000 local jobs, contributing to regional development while minimizing environmental impact by shortening global supply routes.

Through partnerships with Georgia’s Foreign Trade Zones (FTZ), KDS further enhances cost efficiency by streamlining customs processes, deferring duties, and optimizing inventory management.

Sustainability at the Core

This expansion underscores Komar Brand’s commitment to ethical manufacturing, sustainability, and community empowerment. By leveraging duty-free agreements and reducing reliance on long shipping routes, Komar minimizes costs, environmental impact, and delivery times while fostering positive economic outcomes for the communities it serves.

“Our duty-free supply chain exemplifies the synergy between cost savings, sustainability, and global partnerships,” Komar added. “It’s a model that benefits our clients, uplifts communities, and strengthens our commitment to responsible business practices.”

For more information about Komar Distribution Services, please visit www.komardistribution.com/savannah.