PUBLISHED ON October 13th, 2014

Danish firm bags port oil terminal job

Kenya Ports Authority (KPA) has appointed Copenhagen-based engineering firm Niras to design a larger facility to replace the Kipevu Oil Terminal.

Niras is expected to design a new oil offloading unit four times larger than Kipevu that is being retired after 50 years of service.

The new terminal is expected to meet growing demand for oil products in the local and regional market.

The preliminary design work is estimated to cost $1.7 million (Sh149 million) while construction will cost $120 million (Sh10.5 billion).

The new terminal, to be located off the existing one, will handle four ships of up to 150,000 dead weight tonnes (DWT), up from the current capacity of one ship with a maximum 100,000 DWT. Increasing capacity will allow larger quantities of refined oil products to be imported while improving efficiency.

“Port of Mombasa is the gateway for imports and exports not only to Kenya, but also to land-locked countries like Uganda, so the existing oil terminal is crucial for import of fuel to a big part of East Africa,” said KPA head of projects development Daniel Amadi.

Niras will also be in charge of preparation of tender documents for the terminal construction and act as project manager once the winning firm is selected.

“When the contractor has been chosen, Niras will be handling the supervision throughout the entire construction period,” said the firm in a statement.

The Danish engineering firm began working with KPA in 2012 when it did a feasibility study for the new terminal. Niras said it had experience designing a similar terminal in Cyprus.

“The project in Kenya is perfectly timed. It is evident that we on this project can utilise the experiences made from another major oil terminal project in Cyprus,”
said Niras business unit director Jesper Harder.

Improving capacity

Construction is set to be completed by 2017. More capacity is expected after state-owned National Corporation of Kenya (NOCK) advertised for construction of a jetty, last September, capable of offloading oil products from larger ships.

NOCK’s proposed jetty can handle 280,000 DWT. It is expected to cost $500 million or Sh44 billion financed through a Public Private Partnership (PPP) model.

Improving capacity is part of the government’s plan to make Kenya a maritime hub for the East Africa region.

“In order to achieve this, the government plans to improve port efficiency, construct a second container terminal at Mombasa port, provide new handling facilities, develop Dongo Kundu Free Trade Port, and modernise ferry services to increase passenger capacity,” says the prospectus on the sovereign bond.

Source:: Business Daily

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