The volume of goods cleared by the port of Mombasa has over time not grown to the level expected due to, among others, stiff competition from Dar es Salaam port. What measures do you intend to employ to ensure it remains competitive? Dan Murugu, Nakuru
Our volumes have continued to grow beyond our projection. In 2019, the port of Mombasa handled a total throughput of 34.44 million tonnes against a projection of 32 million tonnes, while our container throughput was 1.42 million TEUs (twenty-foot equivalent unit) against 1.3 million in 2018. The total throughput, therefore, grew by 11.4 per cent as compared to global average ports growth of five per cent. In 2019, the port commanded a market share of 70.4 per cent against Dar es Salaam’s 29.6 per cent of the common transit markets of Uganda, Rwanda, Burundi and Democratic Republic of Congo.
Although the two ports are often viewed as competitors, there is very little overlap in their hinterlands. Dar es Salaam port handled an average of 2.3 per cent of Uganda’s cargo compared to 97.7 per cent handled by the port of Mombasa during the period 2010-2019.
With this commendable performance, the Mombasa port has for the last eight years remained the only port in East and Central Africa featuring in the top 120 world container ports. To stay the course, we have continued to focus on improving efficiency by enhancing ICT, capacity expansion and engaging our stakeholders to ensure seamless flow of traffic along the Northern Corridor.
There have been reports of a go-slow at the Mombasa port occasioned by a disgruntled workforce demanding allowances and that has resulted in a pile-up of cargo. Why is the management of the port shifting the blame elsewhere and attempting to assign the congestion to the SGR operator, Afristar? Betty Mutinda, Nairobi
The port has not experienced any go slow and neither do we have a disgruntled workforce. Our workers’ allowances are guided by our HR manual and the agreed terms of service with individual employees. KPA has never shifted blame to Afristar or any other cargo intervener at the port. As regards SGR operations, we are working closely with Kenya Railways to address the shortage of wagons occasioned by upsurge of usage of rail freight services.
The new government arrangement makes KPA and two other key State agencies — Kenya Railways and Kenya Pipeline Corporation — to be oversighted by another parastatal, ICDC, and not directly by the Ministry of Transport and Infrastructure. There are fears that the arrangement is to ensure that one or two of the agencies financially shore up one which has not been doing well financially. What can say about this? Salim, Weston Logistics Ltd
The arrangement was guided by the recommendations of the Presidential Taskforce on Parastatal Reform that called for the reorganization and reform of the governance framework for overseeing and managing State-owned enterprises, assets and parastatals; so as to secure their maximum contribution to job creation and economic development.
The new dispensation aims to foster Kenya’s competitiveness, enhance efficiency and organise co-ordination in the arenas for trade and ease of doing business by supplementing synergies between the State corporations mandated with the provision of port, rail and pipeline services, ensuring that Kenya becomes a leading regional transport and logistics hub in Africa. The corporations will maintain their autonomy and only collaborate in areas they have identified, hence the operations of their boards will continue uninterrupted.
The Kenya Railways and the SGR operator, Afristar, have done a splendid job in maintaining the number of Madaraka Express freight trains moving inland to over 10 on a daily basis. What is the KPA management doing to augment these efforts in terms of growing throughput? Trizza Nzilani, Makueni County
We are working closely with Kenya Railways. With the recent operational co-ordination framework that is being worked out, we expect to see more synergy in terms of operational efficiencies.
Why does the management of the port appear to favour container freight stations (CFSs) belonging to certain influential businessmen? Rashidi Mohammed, Mombasa
The CFS concept was started by the KPA management with a view to reducing port congestion and we work with all licensed CFSs without favouring any of them. Currently, all Mombasa bound cargo is client-nominated to a CFS of their choice and we respect that decision.
Across the world, ports have been identified as capable of making huge contributions to countries’ GDP. What are your strategies to turn around this great asset to enable us to meet our development goals? Komen Moris, Eldoret
Indeed, ports worldwide play a critical role in economic growth and development of countries and Mombasa port is not an exception. The country’s Vision 2030 has identified infrastructure, including ports, as an enabler to development of the six identified priority sectors, by ensuring efficient global maritime trade. Presently, the sea transport and its related service are estimated to contribute 1.5 per cent of the total Kenya’s GDP.
Ports play catalytic role in economic development by facilitating trade through links to international markets. They also provide an opportunity for other auxiliary industries to mushroom and enhance the industry. These include ships agents, clearing and forwarding agents, ship chandlers, industrial parks for value addition, among others. This is because ports are logistics platforms.
On its part, KPA has developed the port of Mombasa to an international standard facility through own-generated revenue and where external financing is sought, the authority is able to manage and service the loans. KPA Ports Master Plan is aimed at aiding the government to realise its dream of becoming a newly industrialized country by the year 2030.
Over the years, the port has been the main gateway to the East and Central Africa region supporting economies of seven countries. Going forward, our goal is to strengthen and grow our footprints in the region as the port of choice, through provision of efficient and competitive port services. To achieve this milestone and unlock the full potential of the port, the authority is focusing on the following development agenda: One, investing in ICT infrastructure aimed at automation of key revenue collection and cargo clearing procedures to deter revenue leakages and faster off-take. Two, enhancing port capacity through infrastructure expansion programme. The authority is developing various projects such as Mombasa Port Development Programme (MPDP) – Second container terminal; Lamu Port; Berth 1 at the Dongo Kundu Special Economic Zone and Kipevu oil terminal (KOT); Kisumu port; Naivasha ICD; Nairobi ICD; and Shimoni port. Dongo Kundu project will catalyse and support government plans to operationalise the Mombasa Special Economic Zone, which is one of the flagship projects under Vision 2030.
What is your strategy on the Naivasha Dry Port and what do you see as the key success factors that you need to urgently address? James Ndungu, Naivasha
The ICD is of strategic importance to KPA’s goal of retaining its hub port of choice status for the region. The ICD targets to handle transit cargo destined for Uganda, Rwanda, Burundi, South Sudan and DR Congo, which accounts for approximately 30 per cent of cargo through the Mombasa port. The ICD will also handle local cargo destined for West of Nairobi, including the planned Naivasha Industrial park.
The facility, upon full utilisation, will bring port services closer to its transit and local clientele, enhance safety, stimulating exports in the area and security of cargo while at the same time decongest the port of Mombasa through efficient cargo evacuation via SGR.
The problem of delays in clearing cargo and decongesting the port is a continuing one. What strategies are you putting in place to mitigate against unnecessary delays and the attendant charges on importers? James Serem, Mombasa
We are working with other government cargo interveners at the port to enhance cargo clearance process. Of importance in this vein is to ensure that the importer in the first place must be ready in terms of launching of cargo documents, paying relevant duties, and complying with other government agencies’ requirements.
KPA in all these processes plays the role of cargo handling and only releases importer’s cargo once it has been cleared for release by KRA, Kenya Bureau of Standards and other agencies involved in the process.
The position of managing director at KKPA is a precarious one and fraught with many pitfalls. Would you be willing to take up the role if it is offered to you by the board? Mickey Mburu, Kirinyaga
With my wealth of knowledge and experience, I am ready to execute any task that the government will give me to serve Kenyans. To me the port is my second home, a place where I have grown up and I am ready to work hard to ensure KPA lives to its vision — world class ports of choice. Challenges make a job worthwhile. Without challenges, there is no growth. So, yes, I’ll take the job.
The port increased from nine to 14 days the free period on transit cargo to give relief to importers of neighbouring countries because of Covid-19. The same was not extended to local importers. Why was this so? Abdulatif Mohamed, Lamu
Local importers have been considered and we shall soon be considering a roll-out of more favourable cargo-free period regime depending on market dynamics and the unfolding of the pandemic.
The refurbished Kisumu port is yet to be opened s. What is causing the delay? What is the potential of the port when fully operational? Owino Jared, Kisumu
The rehabilitation of Kisumu port is work in progress. The aim is to transform it into a modern commercial port to serve the growing regional trade in line with EAC plan of integration. We are glad so far that Part One of the First Phase of the project, which entailed improvement of physical infrastructure including the link span, paving of yard, strengthening of the quay walls and dredging of the channel, was completed on time and ready for official commissioning.
However, it is important to note that the port is operational even as we wait for the official launch. In terms of total cargo volumes, the facility has continued to register a steady cargo throughput recording 3,431 tonnes, 10,945.5 tonnes, 17,734.7 tonnes and 27,119.2 tonnes in 2017, 2018, 2019 and 2020 respectively.
This, therefore, means that when fully operational, the Kisumu port has the potential to handle more cargo for the region, especially once the railway line from Nakuru to Kisumu is complete. This will boost socio-economic benefit for the region, including offering employment opportunities.
When KPA tariff was revised, the verification charges were removed and to compensate for this, the handling and wharfage charges were increased. However, the verification charges have been reintroduced at the ICD Nairobi. Why is this so? Salim, Weston Logistics Ltd
KPA has not introduced any new verification charges at ICD Nairobi. Our tariff was last reviewed in 2012. We have simply implemented clause 14.11 of the tariff which is subject to importer’s request or, if cargo in question is targeted by Kenya Revenue Authority, to ascertain declaration accuracy.
Despite this, the importer still has prerogative to request KRA to be allowed destination inspection at his/her own warehouse if the charges raised are deemed to be high. Recently, we agreed with the clearing and forwarding fraternity that sight and release and partial verification is not chargeable.
KPA has for a long time been experiencing a revolving door affecting senior staff through dismissals and this cannot be said to be good for the port’s stability. What has been the story and what is being done to cut this Gordian knot? Githuku Mungai, Nairobi
KPA is dedicated to upholding its core values: Integrity, customer focus, teamwork care and innovation. All staff in the authority have a duty to uphold these values while discharging their duties.
Equally, as a corporate entity, we are collectively and individually guided by the existing Kenyan laws including the Constitution, Public Procurement and Disposal Act, Public Finance Management Act and the KPA Human Resource Manual. Unfortunately, some staff fail to cope in an environment which demands order and discipline.