Transshipment cargo at the port of Mombasa grew 2.4 per cent in ten months through October compared to the same period last year, the Kenya Ports Authority data shows. The increased volumes has been attributed to abolishment of customs bond by the Kenya Revenue Authority. This followed transition to Regional Customs Transit Guarantee which started in February for goods cleared under the Single Customs Territory. The East Africa's largest port handled 461,502 tonnes of transshipment cargo between January and October compared to 450,472 tonnes handled a year earlier, marking an upward trend for the third year in a row. Total container throughput closed at 1,076, 118 TEUs ( twenty-foot equivalent units) compared to 1,012 ,003 TEUs previously, a 6.3 per cent growth year-on-year. “The removal of customs bond is, for instance, a timely step that we believe will catalyse the growth of this business (transhipment) segment,” KPA managing director Catherine Mturi told port stakeholders in Mombasa on Saturday. “We will continue to engage with our anchor stakeholders." The regional leading harbour by performance handled 22 ,895 ,408 tonnes of cargo against 22,224 ,369 in a similar period last year, a rise of three per cent. Mturi said the authority will “constantly engage the shipping lines" geared at achieving growth of cargo at the port. She attributed the growth in volumes to a multi-agency approach to clearing of cargo, following installation by President Uhuru Kenyatta in July 2014. In October, the Kenya Revenue Authority shelved trans-shipment bonds that have been blamed...

The East Africa Tea Trade Association (EATTA) has signed a financing agreement with TradeMark Africa (TMA) that will enable automation of the tea auction in Mombasa. TMA will provide financing of US$ 1.5 million. The automation is expected to reduce the tea trading cycle by about 65% from the current 45 - 60 days to less than one month. Reduced delays will ensure that farmers receive timely payments negating need to take loans to finance their producer operations. The Mombasa tea auction is the world's largest black tea auction and handles about 75% of tea exported through the port of Mombasa covering shipments from the EATTA member countries of Burundi, Kenya, Rwanda, Uganda, DRC, Tanzania, Ethiopia, Malawi, Madagascar and Mozambique. In 2015, the auction handled more than 350 million kilos of tea, providing a platform through which more than one million farmers in Africa could sell their tea, before shipping it across the world. The proposed integrated Tea Trading System (iTTS) will encompass the entire tea export processes including pre-auction, auction, post-auction and a Business to Business marketing network. Already mentioned above Speaking at the signing ceremony, EATTA Chairperson Nicholas Munyi said, "This portal will simplify the tea auction with the added benefit of increasing transparency and thus gaining stakeholder confidence in the auction." TMA CEO Frank Matsaert added that TMA is committed to boosting intra- Africa trade and also East Africa's trade with the world by reducing the barriers to trade. "Automation of key trade systems is one way...

Several global shipping lines will deploy major vessels to the port of Mombasa next year in efforts to revive trade. According to Kenya Ports Authority (KPA), big ships from Denmark's Maersk Line, Taiwan-listed Evergreen Marine Corp and French Shipping line CMA CGM will bring goods to Mombasa before they are re-exported to smaller ports in the region. "The cargo will be re-exported to regional ports of Seychelles, Mauritius, Madagascar, Zanzibar, Dar es Salaam and Somalia by smaller ships," said KPA Managing Director Catherine Wairi-Mturi. She added: "Maersk, Evergreen and CMA CGM have all committed to increase shipment business through Kenya even as Mombasa seeks to position itself as the region's transshipment hub." She said construction of the Sh28 billion second container terminal, deepening of Likoni channel and widening of the basin to 300 metres will enable the port to handle bigger vessels. Phase one of the second container terminal, commissioned in September this year, will increase the port's capacity by 450,000 Twenty-foot Equivalent Units (TEUs). Bigger vessels have already started coming to Mombasa. In August, the port handled a 294-meters MV Ever Delight, so far the longest ship to call Mombasa after MV Ital Matina. Ms Mturi said although global shipping trade is currently undergoing turbulent times, the future is bright. "The shipping industry is currently going through trying times. The growth of container traffic is still very small, at 0.7 per cent this year, compared to last year," said Mturi. According to KPA, the port handled 903,307 Twenty Equivalent...

Political stability of East African Community (EAC) is dependent on how individual countries will handle the high rate on unemployment among its youth population. East African Legislative Assembly Speaker Daniel Kidega said the fight against corruption and promotion of good governance will contribute significantly in the community’s achieving of its objectives. Kadega said the increase in population, now at 160 million, could be a great disaster if the respective governments fail to create a conducive environment that will see manufacturing industries thrive, in order to create employment among its youth population. He expressed fear on the rising unemployment and underemployment in the region, noting that seven out of 10 people are jobless, while six out of 10 live in informal settlements. Kidega was speaking over the weekend during the commencement of the 10th inter-parliamentary relations, whose theme this year is, “good governance and poverty reduction in East Africa region”. Source: Media Max

From left: Principal Secretary, Shipping and Maritime Affairs, Nancy Karigithu, Dockworkers Union Secretary-General Simone Sang' and KPA Chairman Marsden Madoka chat during a KPA dinner at Serena Beach Hotel on December 3, 2016. Cargo handled at the port has increased. PHOTO | LABAN WALLOGA | NATION MEDIA GROUP  In Summary She also said in the same period the port handled 903,307 Twenty-Foot Equivalent Unit (TEUs) of containers against 896,717 TEUs in the same period last year. In addition, she said ship turnaround time improved to three days in October this year against five days registered last year in the same period. The Kenya Ports Authority (KPA) has registered an increase in tons of handled cargo by three per cent, the managing director said Saturday. Announcing the port's performance for the January/October 2016 period, Ms Catherine Mturi-Wairi said the facility had handled 22,895,408 tons of cargo up from 22,224,369 in the same period last year. “This reflects a favourable performance of 671,039 tons,” she said during stakeholders’ dinner at Serena Beach Resort. She also said in the same period the port handled 903,307 Twenty-Foot Equivalent Unit (TEUs) of containers against 896,717 TEUs in the same period last year. In October this year the port handled 99,271 TEUs, an increase from 85,220 handled in the same month last year. “This reflects a significant increase of 14,051 tons or 16.5 per cent. This is the highest monthly container traffic performance so far recorded in the port’s history,” she said. She also announced that...

Workers are seen working on the Nairobi-Mombasa railway near Kenya's capital Nairobi in a recent photo. [Photo: Beijing Review] The construction of a Chinese-built railway in Kenya has entered its final phase. Kenyan officials and observers are suggesting the project will significantly add to the country's economic growth prospects once it is operational in 2018. Civil engineering work is set to be completed in a few weeks on the first Standard Gauge Railway connecting the Kenyan capital Nairobi and East Africa's largest port, Mombasa. Once the railway is fully operational by January 2018, the travel time between the two cities will be cut from more than ten hours down to four. The 472-kilometer railway is being built by the China Road and Bridge Corporation. The Export-Import Bank of China is financing 90% of the 3.8-billion-dollar cost. Solomon Ouna, an engineer for the railway, says the bank's financing plan stood out from a number of competitors. "There are many financing models that were considered for the project but it's only when we got onto Exim Bank of China that we found it sustainable because they were able to give us sufficient funds to do a whole commercially viable section." Construction of the Nairobi-Mombasa rail began back in late 2013. It is part of a larger Standard Gauge Railway Project connecting Kenya, Uganda, Rwanda and South Sudan. Analysts are suggesting the rail links will open up tremendous business opportunities not just for Kenya but also its neighboring countries, as inland Africa will...

Six years ago it took almost three weeks for a shipping container to travel the 1,100km from the Kenyan port of Mombasa to Kampala, the Ugandan capital. While poor infrastructure did not help, the delays were largely down to the myriad layers of red tape between the two countries. Now that journey is regularly done is seven days. Frank Matsaert, chief executive of Trade Mark East Africa — a donor-funded agency working to boost trade in the region — attributes the progress to “a series of interlocking reforms that have worked as a result of concerted political will by east African leaders”. Such developments are not confined to one part of the continent. The vast majority of Africa’s 54 nations are members of at least one of what African Union officials call the ‘spaghetti bowl’ of more than a dozen regional economic groups, FT reported. Last year three of the largest — the Southern African Development Community (SADC), the east African Community (EAC), and the Common Market for Eastern and Southern Africa (COMESA) — came together under the Tripartite Free Trade Agreement. The even loftier ambition of Africa’s leaders, however, is to create a single free-trade area spanning the continent that would boost commerce, stimulate growth and create much-needed employment. This week the African Union and UN are hosting the first conference on the Continental Free Trade Area (CFTA), as the pan-African trade initiative has been named. The African Export-Import Bank estimates that intra-African trade will be worth $180 billion...

The East Africa Tea Trade Association (EATTA) has today signed a financing agreement with TradeMark Africa (TMA) that will enable automation of the tea auction in Mombasa. TMA will provide financing of USD 1.5 million. The automation is expected to reduce the tea trading cycle by about 65per cent from the current 45 – 60 days to less than one month. Reduced delays will ensure that farmers receive timely payments negating need to take loans to finance their producer operations. The Mombasa tea auction is the world’s largest black tea auction and handles about 75per cent of tea exported through the port of Mombasa covering shipments from the EATTA member countries of Burundi, Kenya, Rwanda, Uganda, DRC, Tanzania, Ethiopia, Malawi, Madagascar and Mozambique.  In 2015, the auction handled more than 350 million kilos of tea, providing a platform through which more than one million farmers in Africa could sell their tea, before shipping it across the world. The proposed integrated Tea Trading System (iTTS) will encompass the entire tea export processes including pre-auction, auction, post-auction and a Business to Business marketing network. Already mentioned above Speaking at the signing ceremony, EATTA chairperson Mr. Nicholas Munyi said, the portal will simplify the tea auction with the added benefit of increasing transparency and thus gaining stakeholder confidence in the auction.  TMA CEO Frank Matsaert said, “today, I am excited to see that tea, a major  forex  earner for the region, will reach the breakfast tables across the world in an efficient and...

(L-R)Executive director of Uganda Law Society Samuel Olumo, Commissioner, Productive and Social service at  Ministry of East African community affairs Naboth Namanya  and Permanent secretary for Ministry of East African community affairs Edith Mwanje during a dialogue. Photo by Mary Kansiime. The executive secretary, Kilimo Trust, Prof. Nuhu Hatibu said government institutions continue to exploit farmers, taking their produce on loans and pay them (farmers) late which greatly affects their operations. Hatibu was presenting a paper on titled: 'Enhancing food security and Agricultural Value Chains in the Region' during a dialogue workshop for the private sector and civil society in Kampala yesterday. "We have realized that many institutions go and get produce from farmers but fail to pay on time. This forces farmers to go for loans," he noted. He also added that governments have failed to support their farmers to make right choices of crops which are needed on the market. "Some produce low quantities as a result of their conventional methods used. Other fail to get markets for their produce and thus working in loses," Hatibu noted. He observed the need to open up the regional markets for people to sell their produce across the border. "If we have a regulation in place; we can look at the comparative advantage for each country. This will help us address the issues of food security, employment, nutrition and boost wealthy," he said. He stressed that individual countries have not supported their farmers in skills development and how to penetrate the...

Vital to the economies not only of Kenya and Tanzania, but also to the landlocked neighbouring countries, these ports are connected to their neighbours through a network of roads and railways that allow trade with other east African countries and with the rest of the world. Mombasa Strategically located about halfway between the Durban port in South Africa and the major Middle East ports, Mombasa’s port is a gateway to east and central Africa. It has been a hub for international trade in the region since it was developed under British rule in the late 19th Century. In 2015, Mombasa handled a total of 26.2m tonnes of cargo, more than double the volume handled in 2005. Transit cargo to the hinterlands, which consist of Uganda, Rwanda, South Sudan, Burundi, Somalia, northern Tanzania, and eastern parts of the Democratic Republic of Congo (DRC), have also gone up at an annual rate of 8.2% between 2005 and 2015. The Mombasa port has an expansion plan underway. A second container terminal started operating in April 2016, increasing the port’s overall capacity to 1.65m containers. This is the first phase of a three-stage project, which, when completed, will bring the total length of the container terminals to 1,740 metres and throughput to 2.7m containers per year. A new oil terminal to receive petroleum products imports is also projected for the coming years, additional to the construction of a modern cruise terminal and rehabilitation of the port’s quay. The port, however, receives more imports than it...