Three townships on the shores of Lake Victoria are expected to benefit from the planned construction of a modern Sh22.5 billion port in Kisumu as Kenya eyes bigger trade in the region.

The piers in Homa Bay, Mbita and Luanda K’otieno are projected to register enhanced activity when a new port in Kisumu becomes operational. Before the collapse of the lake transport system, Homa Bay was a main shipping points for goods to neighbouring Tanzania.

Vessels from Kisumu docked in Homa Bay and offloaded cargo which was then transported by truck to the Tanzanian border two hours away.

Mbita and Lunda K’otieno currently host regular ferry services by private firms and the construction of a new port facility in Kisumu is expected to boost trade in merchandise.

“We expect an effect on the operations of the various piers around the lake once the new port is operational. A lot of bulky agricultural produce and fish and fish products are easier ferried by water,” a consultant involved in the project told Shipping & Logistics.

This came as a consortium led by Maritime & Transport Business Solutions (MTBS) of Netherlands said it will structure the public private partnership (PPP) contract for the planned modern Sh22.5 billion port in Kisumu. The consortium was awarded a contract by the Treasury last month to advice on the project.

“MTBS shall provide all support in preparing and executing the transaction, including market forecasting, PPP structuring, contract and transaction process design and implementation support,” the Dutch firm said in an update. The project, to be implemented by the Kenya Ports Authority (KPA), will be on a BOT (Build-Operate-Transfer) basis.

Kisumu is deemed a critical hub for trade with neighbouring countries such as Tanzania and Uganda and by extension Rwanda and Burundi as well as those in the Great Lakes Region.

For decades the port registered robust business activity helped by a reliable railway system and maritime vessels that ferried cargo to ports such as Mwanza and Bukoba in Tanzania and Jinja and Port Bell in Uganda.

Lake Victoria’s economic activity has been eroded by a number of factors, including a derelict railway infrastructure.

Source: Business Daily

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