Kenya Ports Authority is considering reducing the free storage days allowed for cargo to stay at the port.
Currently, cargo imported through the Mombasa port is allowed five days of free storage, after which it attracts a daily fee.
The KPA management said the improved efficiency of the port means that they are now losing out on the storage fees.
“One of the areas we have lost a bit of the money we used to make is the penalties we used to charge for overstay of cargo in the port,” said Ndua.
“Today, we hardly make money out of this storage. This is because most of the cargo leaves the port within four days,” he told members of the parliamentary committee on labour when they toured the port.
The port charges at least $30 (about Sh2,610) for 20-foot containers and $60 (about Sh5,220) for 40-foot containers per day for domestic import containers.
For domestic export containers, there is an allowance of nine days after which $20 (about Sh1,740) is charged per day for 20-foot containers and $30 (about Sh2,610) for 40-foot containers.
Ndua also admitted that the Inland Container depots are currently under utilised. KPA has ICDs in Nairobi, Kisumu and Eldoret.
He said the Nairobi ICD which has a capacity of 180,000 c0ntainers has never handled more than 45,000 containers in a year.
Nduva attributed this to the poor rail network of the country which has also affected the performance of the Kisumu ICD.
The Eldoret one has never been used and is current serving as A Moi University campus.
Source: The Star
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.