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PUBLISHED ON December 6th, 2016

Removal of customs bond lifts transit cargo at the port

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 for the low growth of the sector’s business.
Shipping lines have for long been pushing for the removal of the bonds. Majority have been avoiding the port of Mombasa for transshipment due to the bond.
“We are encouraged by a number of world shipping lines like Evergreen ,CMA CGM and Maersk for committing to increase the transshipment business through Mombasa port,” Mturi said.
Maersk remains the biggest line in the world that handle more containers through the port of Mombasa. In August M.V Ever Delight vessel with a length of 264 meters long called at the port of Mombasa.
Mombasa has positioned itself as a transshipment facility with the Sh30 billion second container terminal commissioned by president Uhuru Kenyatta in September, which has more than doubling the ports vessel and cargo handling capacity.
Uganda remains the top transit destination for cargo coming through the port having handled 358, 463 tonnes, which is an improvement of 7.1 per cent.
KPA chairman Marsden Madoka said the government is committed to improve port performance through investments on infrastructure.
Madoka said plans for construction of the second phase of the second container terminal are underway. The second phase will add an extra container handling capacity of 450,000 TEUs.
“We are looking forward to start actual construction mid next year .already phase one is complete and operational at cost of sh32 billion,” Madoka said.
Source: The Star

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