Share
PUBLISHED ON August 15th, 2018

SHIPPING & LOGISTICS KPA upbeat as monthly revenue hits Sh50bn

The Port of Mombasa plans to increase the number of containers it handles to two million Twenty Foot Equipment units (TEUs) by 2022.

Last year, the port handled 1.2 million TEUs and targets 1.3 million this year.

The increase in volume of cargo at East Africa’s biggest port will result in a rise in revenue from Sh50 billion netted in July alone to about Sh100 billion monthly.

Before major changes were initiated at the port to ensure efficiency following the appointment of Kenya Ports Authority (KPA) acting managing director Daniel Manduku, the port netted about Sh30 billion monthly in revenue.

In 2017, the port handled 30 million deadweight tones of cargo, up from 21 million in 2012. Dr Manduku is however upbeat that the volume will hit 45 million tones in the next four years to achieve the Sh100 billion revenue.

The envisaged two million TEUs of cargo annually, he said, will enhance KPA operations.

In its port performance programmes released last week during a stakeholders round-table and cocktail on Vision 2030 at English Point Marina in Mombasa, delivery board chairman James Mwangi said the facility had recorded tremendous growth in container traffic and cargo volumes. “In 2012, the port handled 900,000 TEUs and by the end of 2017 it had handled 1.2 million TEUs, an increase of about 32 per cent. Cargo volume in deadweight tonnes also increased from 21 million in 2012 to 30 million in the same period,” said Dr Mwangi.

Dr Manduku said improved cargo clearance had boosted revenue collection. “In July alone, the total revenue generated from cargo clearance at the port was Sh50 billion, up from Sh30 billion. On average, KPA’s monthly revenue stands at Sh30 billion,” Dr Manduku said.

KPA, the MD said, was banking on its improved cargo clearance services and good governance structure to achieve the vision of being the best managed port in Africa.

“At KPA, we have key areas of preference beginning with governance which is aligned well with Vision 2030.

“The second area is operational efficiency and in the last two months, Mombasa port has broken four world records in cargo handling.

“We are not just a port but one of the best ports and I promise that in the next four years it will be the best port in Africa in terms of performance,” Dr Manduku said.

He said his focus is on business growth, which he said will be achieved through a robust and motivated workforce that ties well to professional efficiency and also the governance structure.

“The second area we are focusing on at the port is modernised equipment and very high level ICT structure. We are going to be an e-port and everything will be e-based,” he said.

Some of the huge infrastructural projects KPA is undertaking include the ongoing construction of Lamu port, with Shimoni and Kisumu ports on the awaiting list. He said they were also in the process of changing the KPA Act which was enacted in 1978 and is outdated. “We are completing Lamu port and it is one of the facilities that will be directly under our charge. After that our focus will be on construction of Shimoni port before extending to Kisumu port.

“In Kisumu we have already acquired some land and we are in the process of identifying an appropriate model. The inland container depot (ICD) in Nairobi will also be expanded to accommodate more cargo that is being ferried from Mombasa port,” he said.

Currently, 8,000 containers are moved through the standard gauge railway (SGR) freight trains every day.

“We are doing eight trains of cargo to the ICD and by December we shall be doing 12, hence the need for expansion of the ICD,” he said.

He said that KPA had also embarked on the second phase of Berth 21 through a loan from Japan Internationals Corporation (Jica). “Jica did berth 20 and 19 and they are also financing berth 21 which we shall start in the next one month.

“We are also expanding the road network around the port to make sure that the entry and exit into the port is seamless. Berth 11-15 will undergo major renovation to make them attractive,” he said.

KPA has already announced a major plan to build 11 new ports as it steps up effort for market dominance in cargo handling in Africa.

The authority has already contracted a Rotterdam based company to plan building the ports in the country with most of them at the coast.

Maritime and Transport Business Solutions (MTBS) bagged the consultancy service for developing a master plan for the ports.

MTBS will carry out the project together with Runji and Partners of Nairobi. The firm will develop a master plan that will facilitate the development of the ports “taking due cognizance of the long term development framework as outlined under Vision 2030. This report contains port development plans for eight out of the 11 assessed potential port sites.

“The KPA is responsible for the Port of Mombasa and today’s coastal small ports such as Funzi, Shimoni and Vanga,” KPA said on its website.

KPA said that apart from the ports, an assessment has been made regarding other potential port sites along the coast. Two potential port sites have been identified.

In Lamu, KPA and the national government are developing a second commercial port at Manda Bay.

The port is being developed to tap into the South Sudan and Ethiopia markets under the Lapsset initiative. It will consist of a total of 32 berths when fully completed.

Shimoni port in Kwale is situated off Wasini Island in the South Coast. It is small and has limited connectivity to the hinterland.

Currently with a volume of approximately 10,000 tones, it is by far the largest port of all coastal small ports in the field of coastal trade.

Destinations are mainly Pemba Island and Zanzibar. Based on general economic growth, the port has the potential to accommodate increasing coastal trade volumes. KPA is working in collaboration with the county government of Kwale to develop Shimoni into a fishing and tourist port.

In January 2014, the five East African Community members (EAC) — Kenya, Uganda, Tanzania, Rwanda and Burundi — adopted the Single Customs Territory model with the aim of boosting the volume of cargo at the two regional ports.

Source Business Daily

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.

Leave a Reply

Your email address will not be published. Required fields are marked *