MOMBASA PORT SET TO HAVE A SECOND CONTAINER TERMINAL

The Kenya Ports Authority will increase efficiency and capacity at the port of Mombasa in a bid to position it among the top 20 ports in the world by 2010.
Currently the port is ranked fourth on the continent after Richards Bay, Saldanha and Durban in Southern Africa.

Recently-confirmed KPA managing director James Mulewa said that in order to solve the problem of capacity limitation, the authority will build a second container terminal to increase the volume of cargo handled from 600,000 twenty-foot-equivalent containers to 1.8 million. The authority has also asked for Ksh3 billion ($37.5 million) from the government “to replace the aging cranes and other equipment bought five years ago, which are now due for replacement” said Mr Mulewa.

He said the movement of cargo had improved since the number of weighbridges were reduced to two, adding that when the Rift Valley Railways streamlines operations and improves cargo delivery, it will help the port handle an increased volume of cargo. The port will also approve more container freight stations for licensing by the Kenya Revenue Authority. Currently, there are only two such stations that handle containers — Consalbase and Mombasa Container Terminal.

The two set up in October last year have handled over 50,000 teu at a time when the port was faced by a serious threat of Vessel Delay Surcharges by shipping lines.

“More CFSs with the capacity to handle 3000 teus at a go will be licensed,” Mr Mulewa said.

However, the KPA boss said that since the development of the port of Mombasa had almost reached its full capacity, and in order for the country to remain relevant in the future shipping industry in the region, it was necessary to build a second major port in Lamu. The port of Mombasa was designed to handle only 20 million tonnes of cargo per annum. The Lamu port will be expected to serve landlocked Ethiopia and Southern Sudan, with a population of 80 million and 12 million respectively.

The reconstruction of Southern Sudan has generated huge imports needs and Lamu’s direct line of sight with Addis Ababa will allow for the shortest railway link between them. With the entry of Southern Sudan into the region’s economy, it is estimated that the demand for cargo imports will rise to over 32 million tonnes of per annum. The port of Mombasa and the existing road and rail network cannot possibly handle the increase in volume and weight of materials that will be required by Southern Sudan.

Currently Southern Sudan is exporting crude oil through a 1,600 kilometre-long pipeline connecting its oil fields to the Red Sea at Port Sudan. It is expected that these volumes will increase and the region has proposed an alternative oil pipeline through Kenya. The proposed route of this second corridor is Lamu-Garissa-Isiolo-Maralal-Lodwar and Lokichogio, branching at Isiolo to Nairobi to the south and to Ethiopia in the north. It will also serve South Sudan cargo through Juba.The port at Lamu is envisaged to be linked to the port in Mombasa by a new railway line and an access road, according to a lead consultant on the project, Dr Mutule Kilonzo. Lamu has naturally deep waters and a port there would accommodate bigger ships than those docking in Mombasa.

A free trade zone that will be developed along with the port is expected to foster the growth of trade and commercial activity to make Lamu a commercial hub. Dr Kilonzo said the project is expected to start by 2010.

Dubai World has been eyeing the Mombasa Port for sometime and we are unsure if the new project will be theirs for a take.

TANZANIAN DAR PORT SET TO IMPROVE OPERATIONS

The Dar-es-Salaam port is working on a major upgrade that could get rid of congestion, attract new business and position itself as “the harbour of choice” in the region.This could see the Mombasa Port, also battling with congestion made worse by the post-election violence, face increased competition for business in the region.

A senior Tanzania Port Authority (TPA) manager, Mr Jason Rugaihuruza, says they have embarked on new strategies that would lead to increased container terminal capacity and the use of inland depots, optimimum use of the terminal capacity within the port and active participation of various stakeholders in the programmes to reduce dwell-time of cargo at the port.Key long-term measures by the TPA include construction of multi-storey car park to leave space for container handling. This plan, according to Mr Rugaihuruza, is expected to be ready by the end of 2010.

The port managers are also planning the construction of a new container terminal at Bagamoyo and two berths.

GHANA CONTRACT WITH MERIDIEN PORT SERVICES STILL INTACT

Ghana's Ministry of Harbours and Railways on Thursday denied media reports that it has suspended the contract between the Ghana Ports and Harbours Authority and Meridian Port Services (MPS) to shorehandle containers in Tema Port.

A statement signed by Mr Ahmed Ayuba, Special Assistant to the sector Minster, Prof. Christopher Ameyaw-Akumfi, said no directive had been issued regarding the suspension of the contract.The statement said following increased agitation by indigenous stevedoring companies on stevedore operations, Prof Ameyaw-Akumfi invited the Ghana Association of Stevedoring Companies (GASCO) where he reaffirmed that the implementation of rights under the concession agreement between GPHA and MPS with respect to shorehandling of containers in the Tema Port had been suspended.

“The Minister assured GASCO that a meeting among GPHA, GASCO and the Ministry will be held to identify and resolve challenges facing stevedore companies in the Tema Port.”

Early last week, the Times newspaper reported that the GPHA had suspended the implementation of a license agreement under which MPS was expected to handle all vessels carrying more than 50 containers to the port. In the said report, Kwadwo Adansi Bonna, General Manager of GPHA, explained that though the implementation was based on the license agreement, it had not been approved by the GPHA. This was after another media reports on the mounting tension at the port over the decision by GPHA to implement the contract with MPS.

Eight indigenous stevedoring companies had complained that the implementation of the contract would collapse their businesses and make about 3,000 workers jobless. Under the contract, MPS would handle vessels with 50 and more containers. The company has the technological advantage for quick turn around time for ships.

INCREASED CONTAINER TRAFFIC CONGESTS MOMBASA

Shippers in Africa have been told to prepare to absorb extra costs caused by congestion in the regional ports following increased global container traffic, which have also stretched global port capacities.

Experts say this perennial problem dogging most ports in Africa could take up to 15 years of infrastructural and other logistics enhancement to be solved. This is in contrast to other parts of the world where it would take a far much shorter period. This is as a result of African governments’ bureaucracy.Global ports are currently recording increased container traffic, leading to congestion at even reputable ports like Liverpool, Southampton in England, Colombia, Kochi, Mumbai and Karachi in India and Sydney in Australia.

Others, according to a World Bank report, are Santos and Buenos in South America while those in North America are Los Angeles and Oakland. In Africa, they include the ports of Mombasa, Dar-es-Salaam, Durban and Abidjan, among other smaller ports. Kenya has embarked on improving it's ports and harbours and is putting stringent measures to improve and maintain efficiency to be among the most valued ports.

DUBAI WORLD KEEN ON MOMBASA PORT

Dubai World, a UAE government investment with a plan on four strategic growth including Transport & Logistics, Drydocks & Maritime, Urban Development and Investment & Financial Services is set to take up the Kenya's Mombasa port any time soon.

Analyst say, If that happens, massive equipment investment would be in the works and ship turnaround cut to just three hours like they did in Dakar, Senegal, and Djibouti which they control.They are also partners and managers in Sokhna port of Egypt, Aden and Jeddah. Their entry would appreciably change the politics of the port which is simmering to inefficiencies.

DP World operates several ports in the world after it became economical to separate ownership and operation globally and it's noteworthy that the 10-year-old DP manages more than the Djibouti Port — including container, oil terminals and berths and marine services, Djibouti Airport and a free trade zone. The port has now become a byword for efficiency, especially in handling massive cargo from Ethiopia after a fallout with Eritrea, who almost exclusively handled their exports before.

DP spokesman Anil Singh said the group has been waiting for the port to complete a feasibility study, a process that would pave the way for private players. “We would want to be involved sooner than later. We have been waiting for an indication,” Mr Singh said.

Mombasa Port has lately contributed to the brisk economic growth in Kenya and the whole of East African region business relies mainly on it, Factors that saw port cargo grow by 10.7 per cent last year. In 2003, it was handling cargo estimated at 12 million tonnes annually. This has shot up to slightly under 16 million, only exacerbating the administrative chaos that have become a permanent feature of the deep-sea port. In terms of twenty-foot equivalent unit (TEU), the growth has been faster at 22 per cent with a total of nearly 600,000 containers handled.

DP World says the port needs major rehabilitation and new equipment. The spokesman said they would be happy to make a difference.

“The process of making the initial changes takes between three and six months,” Mr Singh said.

Meanwhile, DP World is set to open a new container terminal in Djibouti this December and have already cut waiting time in Dakar from seven days to three hours. Mombasa certainly can do with that efficiency. Given the kind of politics surrounding the port, it is unlikely we can easily reach that efficiency level shortly though, they say.

Certainly, if Kenya wants a manager, DP World, who famously failed to secure contract for running US ports due to clearly xenophobic lobbying, would have to contend with other aspirants, including the famous Singapore PSA.

MOMBASA AND LAMU PORT INFORMATION

LAMU PORT INFORMATION

Position Lat 2°18’S; long 40°55’E. Description Lamu is a small historic town port popular with international cruise ships. Lamu town was declared as a World Heritage site by UNESCO in 2001.

Secure port with safe anchorages deep enough for vessels of up to 100 metres length and 5.2 meters draught. Maximum tidal range 3.5 metres. Inner anchorage depths vary between 6.O meters and 8.0 meters. Turning basin for ships over 80 meters restricted except near Shella.

Small jetties at Lamu, Shella and Manda Island used by local dhows and small craft for landing goods and passengers. Mokowe Jetty with a Draft 5.0 meters is the main jetty linking mainland and Island. The channel is marked by buoys and Leading (Range marks).

Large ships anchor outside the port and personnel ferried to inner harbour by boats. Main occupation fishing, tourism and cutting mangrove poles. Lamu is famous for traditional wooden boat building and furniture curving.

Towage No Tugs available. Tugs can be ordered from Mombasa (120 miles) on notice. Airport Airstrip located on the Manda Island for small passenger planes. Daily flights available to and from Nairobi and Malindi.

MOMBASA PORT INFORMATION: KENYA

Description Location: Lat 4°04’S; long 39°41’E The Port of Mombasa is the Principal Kenyan seaport and comprises of Kilindini Harbour and Port Reitz on the Eastern side of the Mombasa Island and the Old Port and Port Tudor north of the Mombasa Island.

Kilindini Port is naturally deep and well sheltered and is the main harbour where most of the shipping activities take place. It has 16 deep water berths, two oil terminals and safe anchorages and mooring buoys for sea-going ships. The Old Port is entered between Ras Serani and Mackenzie Point and is used only by dhows and small coasting vessel of 55 metres LOA. A cement loading facility is located opposite the old port jetty at Ras Kidomoni (English Point) for bulk cement carriers of up to 150 metres LOA and 8.0 metres draught.

The Port of Mombasa not only serves Kenya but is also the main gateway to the Eastern African hinterland countries of Uganda, Rwanda, Burundi, DRC and Southern Sudan. The port of Mombasa is managed and operated by the Kenya Ports Authority (KPA) a semi-autonomous government parastatal. KPA also manage the small sea ports of Kiunga, Lamu, Malindi, Kilifi, Mtwapa, Funzi, Shimoni, and Vanga.

KPA vision is to transform the port of Mombasa into one of the top 20 ports in the world. KPA launched its 25 year Master Plan and Strategic Plan in 2005 which aim at transforming the port into an E-Port. The port of Mombasa recently invested over 5 billion Kenya shillings in new cargo handling equipment and marine craft under its equipment replacement plan KPA is ISPS compliant and is in the process of installing an integrated security system and constructing a control tower fitted with radar monitoring and traffic management system to enhance security.

Facilities and services 

The port is a multi-purpose port capable of handling all type of cargo including containers, general cargo, liquid and dry cargo and passengers. It has the following facilities: 16 Deep water berths and 2 oil terminals draft ranging between 9.75 and 13.25 meters Deep water anchorages and mooring buoys for sea-going ships. The container Terminal Berths 16, 17 and 18 form the container terminal. The three berths form a 600 meters quay length with a draft of 10.36 meters. Designed capacity 1,000,000 TEUs annually.

Medium size container ships of up to 5,000 TEUs can be accommodated. There is a 250 meters deep back-up area of 14 hectors for stacking and handling containers. The terminal is served by 4 STS, 12 RTGs and 2 RMG all acquired in 2005 and a number of other terminal handling equipment. The designed capacity of the terminal has almost been doubled.

By 2004 over 430,000 TEUs were handled. In view of this Berths 13 and 14 are used as container berths. Ships use their own cranes as no gantry cranes are installed on these berths. General Cargo Berths Berths 1 to 12 are general cargo berths for handling general cargo ships carrying loose cargo, steel products, bagged cargo etc. Berth 1 and 2 are designated as cruise ship berths and can handle cruise ships of up to 300 meters length and 9.75 meters draft. Ro-Ro facilities are available at the general cargo berths mostly Berths 1 and 5 The General cargo berths are served by electric luffing portal cranes with capacity of 3 to 15 tonnes and supplemented by fork lifts, trailers and mobile cranes.

The Oil Terminals 

There are two main oil terminals: Kipevu Oil Terminal, situated on the mainland Port Reitz area, is designed to accommodate crude oil tankers up to 100,000 dwt, depth alongside 13.41 metres at LOWST, maximum LOA 259 metres. Shimanzi Oil Terminal can accommodate vessels up to 30,000 dwt, 198.1 metres LOA, and 9.75 metres draught. Slop tank facilities available. Vegetable oil handling and storage facilities are available at the Mbaraki Wharf, Berth 10 and SOT and are operated by two private companies Gulf Stream and East African Storage.

Specialised Bulk handling facilities 

 A modern grain bulk handling facility owned and operated by GBHL is located at Berth 3 and is capable of handling ships of up to 45,000 tons deadweight with 10 meters draft. Discharge is by a combined system of Portolinos and conveyor belts. Discharge rate is 200 metric tons an hour and storage capacity is 68000 tons on silos and 18000 tons on covered shades. At the Mbarki wharf facilities are provided for handling bulk/bagged cement, fluorspar, coal, clinker, molasses and bulk petroleum and vegetable oil.

The Wharf is 315.75 metres long with 10.36 metres depth. Several private companies including Bamburi Portland, Kenya Fluorspar, East African Storage and Tecaflex have storage facilities behind the wharf. Beth 9 caters for the loading of soda ash by means of a conveyor belt and is operated by Magadi Soda who are the sole exporters of soda ash Nautical Access The entrance from the sea to Kilindini Harbour is by an approach channel 7 nautical miles long, 300 metres wide and dredged to a maximum depth of 13.7 ( 1997 ).

The channel is well marked by solar powered buoys and leading marks as per IALA system A requirements. Two traffic control stations direct and monitor the movement of ships in the channel. Inside the inner harbour deep and safe anchorages are provided for sea-going ships with draft of up to 13. 8m Siltation is minimum in Kilindini harbour and maintenance dredging is done every 5 years. Anchorage for coasters and fishing vessels is also available. Anchorage outside port area is not recommended due to the poor holding ground and heavy swell.

Tides and currents 

The Port is a tidal port with a tidal range of 4.0 metres maximum at spring tide and 2.5 metres at neap tides. Strong northerly currents of up to 6 knots and heavy swells are experienced near the channel entrance during the South East monsoon between April and October. Pilotage Pilotage is compulsory for all vessels except those exempted as per Tariff and KPA Act. All Pilots are master mariners with sea-going experience Towage 3 ASD Tugs (delivered in 2004) with 58 tons bollard pull and 5000HP. 1 Tug fixed propeller of 40 tons bollard pull (built in1982 now being refurbished). The 3 ASD tugs are fitted with pollution control, fire-fighting and salvage equipment. Tugs are compulsory when ordered by Pilots Largest vessel The port can accommodate vessels up to 13.71 metres draught and 300 metres LOA.

The channel has been dredged to allow fully laden tankers of up to 80,000 dwt to transit.

Bunkers Fuel oil CST 30, 40, 60, 80, 100 120, 150 180, marine diesel oil (DMB) marine gas oil (DMA) and lubricants are available at the SOT and by barges operated by a private company Alba Petroleum. Mombasa is one of the few ports where homogeneous blended fuel is available.

Fresh water

Fresh water is available on hydrants on certain berths but is not adequate. Trucks supply fresh water to ships and a 300 ton barge supply fresh water to vessels at anchor. Traffic The Port of Mombasa handled a total of 1779 ships and 12.92 million tonnes of cargo by 2004.

Imports and exports 

Main imports: Crude oil, fertilisers, salt, sugar, paper, iron and steel, motor vehicles, farm machinery, wheat, cola, maize. Main exports: Coffee, tea, soda ash, cement, canned fruit. Lloyd’s agent McLarens Toplis, Maritime House, Moi Avenue (PO Box 82208), Mombasa Tel: +254 (0)41 221068 E-mail: mombasa@mclarenstoplis.co.ke

Labour Day and Christmas Day are normally the only holidays on which the Port of Mombasa is closed, except for the necessary Pilotage of ships in and out of harbour and for dealing with mail, passengers and their baggage, livestock and perishables. On other public holidays, restricted working at Mombasa may be carried out at overtime rates. Medical aid Well equipped hospitals available in and around the port.

Fire-fighting and Ambulance Services 

The port has its own fire station manned around the clock. Several fire-engines and an ambulance are available. Special fire-fighting systems fitted at the two oil terminals. The 3 new tugs fitted with powerful fire pumps (600 cubic m/s).

Chandler Services..

Provisions Fresh provisions, vegetables available but quantities sometimes limited. ISSA members available include AFRICAN SHIPPING LINE -MOMBASA

Radio Radio communications available 24 hours a day on VHF Channels 12 and 16. GMDSS watch maintained Railway The port is linked to the hinterland in Kenya and Uganda by a railway line. The railway network inside the port is 1.5 Km

There are 5 ship repair facilities in the port KPA has its own Dockyard with slipways and workshop facilities for repairing KPA marine craft The Kenya Navy has a syncro-lift and workshop facilities for repairing its own fleet African Marine and General Engineering Co Ltd ( AMGECO )

Mombasa has a dry dock, length 180 metres, entrance width 24.75 metres, maximum water depth HWS 7.9 metres. Almost every type of repair work can be undertaken. AMGECO is ISO certificated Southern Engineering Co Ltd. has a floating dock for building and repairing small ships and boats and workshop facilities Comarco at Liwatoni owns a jetty and carry out small repairs and also undertakes salvage work.

There are 11 main quay transit sheds with a total floor area of 106,281 square metres and 4 back of port transit sheds with a total floor area of 43,625 square metres.

Tanker terminals Waste reception

Waste reception facilities available for garbage. The IMO approve waste reception facility for sludge and dirty ballast has been temporarily closed. Airport Moi International is about 3Km from the port and has daily regular local flights to Nairobi and international flights

Container Handling 

The container business is the fastest growing sector in the Port of Mombasa. About 70 per cent of the Port’s total cargo is transported in containers. The traffic is growing at a rate of 12 per cent per year. Mombasa Container Terminal opened in 1979,and is a purpose-built facility with three berths and four 40-ton Ship-to-Shore Gantry Cranes. The Port of Mombasa handled 438,000 TEUs by 2004 and 1,000,000 TEUs in 2015.

Through more efficient use of space and improved cargo handling facilities,Kenya Ports Authority (KPA) aims to reduce average dwell time to five days,which will effectively raise the capacity of the terminal. At the same time, the Port’s Authority is using its recently installed information technology (IT) system to reduce time-consuming documentation procedures,speed the flow of traffic and produce quicker turn-rounds for ships,trains and trucks.

A new office has been built within the terminal to accommodate all parties involved in container operations including The Customs Department,The Port Police and KPA Security. This new facility,opened in July 2003,will provide customers with a One-Stop Centre for document clearance.

KPA has already invested in several new container handling equipment, these include: four new Panamax Ship-to-Shore Gantry Cranes,twelve new Rubber Tyred Gantry Cranes capable of stacking four high, two new Rail Mounted Gantry Cranes,six 40-tonne SISU Reach Stackers – capable of stacking three high – and 30 Terminal Tractors. This will boost the handling rate to about 25 moves per hour for cellular vessels, thus bringing the terminal in line with international standards.

The implementation of a modern computerized integrated Port Operational and Management System incorporating; Administration,Terminal Planning,Ship planning,Yard,Rail and Gate management is also on track and is expected to be fully operational in the first quarter of 2008. This will finally culminate in the Interactive system between KPA and her stakeholders,the Community Based System.

In the longer term,KPA will create a second container terminal,just south of the existing facility,to give a combined throughput capacity of 700,000 TEUs. Berths Nos. 11 to 14 will be converted into a second facility called the East Container Terminal. Work has already begun on demolishing old sheds on these berths to free up space for the new terminal.

MOMBASA PORT'S NEW CONTAINER TERMINAL FUNDED BY JAPAN

Design work for the Sh16 billion container terminal for the port of Mombasa begins next month. The project with a capacity of 1.2 million teus ( 20 foot equivalent units) will be completed in 10 months.

Engineering work could begin from July next year and the first phase of the terminal completed in 2013. The project, the biggest ever at Mombasa port in recent times, is being undertaken by Japanese Port Consultancy.

But while the construction of the new terminal would modernise the port, it has emerged that movement of containers would be hampered unless wide roads are constructed.

Briefing Prime Minister Raila Odinga and his delegation at the port recently, Kenya Ports Authority (KPA) officials said the new terminal was designed with a six lane road up to the Old Port Reitz Airport Road where it joins a single lane road. KPA chief operations manager Engineer Joseph Atonga warned of chaos if the roads is not widened. The six lanes cover about 1.6km from the new container terminal to be located west of the existing port.

“We have informed concerned ministries about this problem. We will require six lanes beyond the new container terminal to ensure smooth flow of traffic,” Atonga said. This is expected to be costly because it would involve compensation of property owners and demolition of houses and other structures.

The Sh16 billion, a soft loan from the Japanese Bank of International Corporation, did not include construction of the road extension beyond Port Reitz area.

“We are asking the Prime Minister to assist us address the problem,” said Atonga.

Raila said the Government was interested in modernising the port and making it more efficient. He said the Government would fast-track establishment of a free port at Dongo Kundu area near the port. The project will include a fixed by-pass linking Moi International Airport and the Diani tourist resort in the South Coast. Meanwhile, priority will be given to the extension of a two kilometre stretch from the Old Port Reitz airport road to Magongo area.

This is expected to cost between Sh400 million and Sh500 million.

TAPPING AFRICAN BUSINESS FROM THE MIDDLE EAST

Africa, particularly the Horn of Africa now seems to be playing a greater role in world trade that is combining East and West business through Freight( Airfreight, Sea Freight) and so on.

From Crude Oil of Arabian countries, almost all kind of trade from China, Motors from Japan, Hides and Skin from Africa, The business is booming from East to West with Middle East and Africa playing bigger roles in providing logistics.

VEHICLE IMPORTERS AT MOMBASA PORT TO PAY US$300 FOR NUMBER PLATES

Local motor vehicle importers are incurring an extra cost of Sh20,000 per vehicle as demurrage charges in a newly-introduced rule by Kenya Revenue Authority (KRA) for number plates.

KRA had directed, in April last year that importers would not be allowed to take their cars until they acquired actual number plates for the same.The taxman had argued that motor vehicles without number plates were being used in acts of thuggery in the country, which they said were on the rise.

Efforts to get a comment from KRA over the matter were futile. Importers are, however, questioning the rationale of introducing the clause arguing if the main issue was theft, the law enforcers could easily identify the vehicles used by logging in the chassis number to identify the owners of the vehicle.

PORT SUDAN RECORDS REMARKABLE GROWTH

Port Sudan recorded a remarkable performance in total cargo traffic last year, which saw her ranked top of Dar- es- Salaam and just a digit below the port of Mombasa, in the Eastern and Southern Africa ports standings.

According to the Ports Management Association of Eastern and Southern Africa (PMAESA) statistics, Port Sudan recorded a total cargo traffic growth of 10.3 per cent compared to Dar and Mombasa that had 1.9 and 10.7 per cent respectively.The 26 ports under PMAESA recorded an average annual growth of 3.5 per cent from 249.2 million tons recorded from 2007.

The growth rate is said to be a consistent with the average economic growth of 3.5 per cent witnessed in many countries in the region. Shipping Lines that operate at Port Sudan Include AFRICAN SHIPPING LINE

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AFRICAN SHIPPING LINE - (SUDAN) LIMITED

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asline@africanshippingline.ae

africanshippingdubai@gmail.com

CONTACT PERSON : HAYTHAM

7.INDIA/PAKISTAN/SRILANKA

AFRICAN SHIPPING LINE

KARACHI, MUMBAI, CHENNAI, COLOMBO PORTS

Emails: 

asline@africanshippingline.ae

africanshippingdubai@gmail.com

CONTACT PERSON : IBRAHIM

8. CHINA/JAPAN - AFRICAN SHIPPING LINE - ASLINE CHINA

GUANGZHOU, NINGBO, NANSHA, SHANGHAI PORTS 

PORT KELANG

Emails: 

asline@africanshippingline.ae

africanshippingdubai@gmail.com

CONTACT PERSON : IBRAHIM  

CONTAINER TERMINAL AT MOMBASA AND IT'S IT WOES

Is Kilindini Waterfront Automated Terminal Operation System (Kwatos) failing? This is the million dollar question bothering importers and exporters as they incur losses due to delays occasioned by the system.

Kenya International Freight and Warehousing Association (KIFWA) chairman, Mombasa branch, Peter Otieno said that it was taking up to two weeks to clear a container from the port. The situation could be worse for those importers who are incurring demurrages.

Before the introduction of Kwatos it took a clearing agent up to a week to clear a single container from the port of Mombasa, said Mr Otieno in an interview with Shipping News.

“We are now incurring an overhead cost of Sh21,000 to clear a single container from the port of Mombasa since the introduction of the system,” said Mr Otieno, arguing that the manual system should run together with Kwatos until the cause of the hitches was identified and rectified.

TRANSHIPMENT CARGO "TEMPORARILY" SUSPENDED AT MSA

Kenya Ports Authority has suspended landing of transshipment cargo in Mombasa port from next Monday due to over congestion.

This will allow the port to clear a backlog of 2,741 Twenty Foot Equivalents Units as at Wednesday, destined for Dar es Salaam and other Indian Ocean ports. Normally, the port handles about 2,000 units for transshipment.

The port of Dar es Salaam, which regularly faces similar problems of congestion, significantly relies on Mombasa as one measure of controlling the problem.

Mr Harry Abok, the port’s corporate communication officer, said the suspension was only temporary. “We shall resume transshipment business as soon as we clear the backlog,” the officer said.

Mr Abok said that the port of Mombasa is not bound to take any transshipment cargo and only engages in the business when it is convenient.

Unlike the inland cargo, the transshipment cargo is kept near the berth for convenience and is supposed to stay at the port for only 32 days. “But this does not normally happen and sometimes it takes longer than the stipulated period...

“And since the containers cannot be taken to container freight stations, there is always the problem of availability of space whenever there is a slight congestion at the port,” Mr Abok added.

Once the transshipment cargo has been offloaded from the ships, it is taken to the port of destination using small ships, Mr Abok said.

He said the suspension was not unusual and the port had done it in the past. “During the post-election period, for instance, we suspended the service and resumed in March when the conditions at the port improved,” he said.

KPA announced the suspension on Wednesday in a media advertisement.
There are 11 ships waiting for berths at the port. Mr Abok said this is a high season when the port receives many vessels, some arriving at the same time. The port has increased the number of berths reserved for containers from four to seven.

Kenya's Port managing director Abdallah Mwaruwa expressed concern about lack of stability and satisfaction with the computerised cargo handling and clearance system- Kwatos, which is the main reason why the port is experiencing the present congestion.

Since it was launched on July 1, this year, the Sh450 million system has reported problems of network interface with the already existing enterprise resource planning system which computerised KPA’s internal managerial system in the first phase of computerisation.

Mr Mwaruwa said the port may resort to the old manual system for some time. “The review will hopefully give Kwatos more time to be rectified,” he added.

KENYA: MOMBASA PORT NO LONGER FACING CARGO CLEARANCE PROBLEMS

The Kenya Mombasa Port has now started operating very efficiently after the previous years facing its stiffest challenges. This was due to an operational crisis caused by the cargo clearance operating system at it's facilities.The introduction of the automated Kilindini Waterfront Terminal Operations System (Kwatos), a cargo clearance system had failed to stabilise previously but which is now operating at good speed most of the time.

As a result, Shipping Lines, transporters and clearing and forwarding agents are now doing brisk business as the Kenyan Government has put mechanisms to attract foreign Vessels at the port. The Government though admitting that there was some teething problems with the systems at the port in the past which led to congestion at the port, defended the new Sh450 million investment and asked for patience, saying it was experiencing teething problems but would eliminate paper work associated with clearing of cargo in the long run.

Various ships are berthing every hours now.

DUBAI -AFRICA SHIPPING INCREASES

State-owned Dubai World is targeting new projects in six African countries as part of its investment drive on the continent, in which an official says ""We look at Africa as an emerging market because I would say other markets are dying of credit crunches," Daniel Saliba, an analyst for the company's Transactions for Africa and Indian Ocean unit, told news conference recently.

through it's Dubai World, One of the World's largest holding company that manages and supervises it's portfolio of businesses and projects across 100 different cities in the world to do business with Africa.

Cargo are sourced in Dubai. Whatever the trader is looking for, it can probably be found here. Clothes from India, electronics, and cars from Japan, locks from China, mobile phones from South Korea, food from Indonesia, half-life size models of Santa Claus from an unknown destination. The list is as endless as anyone's imagination.

Many international businesses which are interested in developing their market in the Middle East have been lured by some attractive features offered by Dubai. The sheer size of the market in Dubai has been increasing at a steady pace. Although the United Arab Emirates has a relatively smaller population than other Middle East countries, its total imports have been registering a steady growth with the passing of each year. The impressive performance can be attributed to the fact that Dubai has emerged as the major re-export centre for the entire Middle East region.

As the growth accelerates, So do shipping companies that operate UAE-African routes.They have been reporting impressive growth over the years and many lines are now eyeing the sector. Significant growth has been reported in shipping movement especially in Containers and RO-RO services to Africa from Dubai over the past years and this has led corporate business establishment like DubaiWorld and others to open offices in Africa and UAE to streamline their actvities.

KENYA PORT AUTHORITY GIVES NOTICE TO "UNCLAIMED CARS"

Port users in Mombasa want the Kenya Revenue Authority (KRA) to sell by public auction over 665 motor vehicles that have been lying unclaimed at the Mombasa port for a long time.

A six-person task force appointed to deliberate on how the vehicles could be disposed of has recommended that the taxman serve a 30-day notice to the respective importers to come forward and collect the vehicles.

The vehicles that would remain uncollected after expiry of the notice should be sold by public auction, the task force recommended in a report that is expected to be adopted by the major the industry.

The vehicle owners are said to owe the KRA and Kenya Ports Authority (KPA) over Sh500 million in unpaid duties and accumulated storage charges. The task force, which is led by the KPA’s reforms programme manager Mr James Mulewa, is advising both KRA and KPA to grant the vehicle importers a full waiver of accumulated customs warehouse rent and/ or port storage charges to importers of these vehicles so as to enable them to clear the vehicles.

Grant amnesty For Kenyan importers who come forward to claim their vehicles within 30 days of the gazette notice, the Kenya Bureau of Standards (Kebs) should grant them amnesty even though their vehicles are over eight years old or left hand drive, the report continues.

“Vehicles still remaining uncleared at the port after the 30-day gazettement period is over should be auctioned as scrap or spare parts on “as is where is” basis for either local use or export,” the committee further recommends.

The committee says importers of most of the vehicles are from Uganda, Rwanda, Tanzania and the Democratic Republic of Congo (DRC). Such importers should approach the Government of Kenya through their respective embassies for protocol arrangements to have their vehicles disposed off in their home countries within the proposed 30-day notice period.To avoid unnecessary diplomatic friction, the sale notice should be widely publicised both locally and regionally and also be given to the embassies of the destination countries besides being placed on the web sites of all the key stakeholders such as KRA, KPA, KIFWA, KSAA, Kampala City Traders Association (KCTA), Uganda International Clearing and Forwarding Association (UCIFA), among others.

“The above recommendations and procedures if adopted by the Authorities concerned will facilitate quick disposal of these long stay vehicles at G-Section and avail the space for better use,” the committee says.The committee said the number of vehicles could be more if those lying at container freight stations were counted.

The task force has been investigating the problem since its launch by stakeholders in August last year.It was formed after the uncollected vehicles brought a parking and congestion crisis at the port area leaving little room for other cargo.

The findings show that some of the vehicles do not conform to the Kenya Bureau of Standards Act as they were over eight years old at the time of importation. Others are left hand drive, which is also incompatible with the KEBS Act. Ninety per cent of the vehicles are transit goods and they have accumulated huge storage charges.

Some of the vehicles are said to have been broken into and vandalised, some vehicles have no bonnets and/or wheels while others are severely corroded by the coastal weather especially those in the open yards.

Some of the vehicle parts are said to be untraceable as they had been loaded separately in the containers carrying the vehicles from the port of origin. “Some of these items cannot be matched with the parent vehicles; others are missing and some have already been auctioned by KRA,” the task force says.

The committee comprises of members drawn from the KPA, KRA, KIFWA, Kebs and the Ugandan business community representatives.