Forty per cent of cargo imported through the port of Mombasa will be cleared at the Nairobi Internal Container Depot, Kenya Revenue Authority has said, as the government moves to secure business for the Standard Gauge Railway.
Kenya Ports Authority is upgrading the ICD at Embakasi which will increase container handling capacity to a projected 450,000 Twenty-Foot Equivalent Units from the current 180,000 TEUs.
This comes as the government moves to secure cargo for the Sh327 billion SGR expected to become operational on May 31, a move that will help repayment of the loan from China’s Exim Bank which has funded 90 per cent of the project.
“At least 40 per cent of the cargo previously cleared in Mombasa will now fi nd its way to Nairobi for clearance,
with signifi cant attendant benefits including speedier and cheaper cargo delivery, reduced road damage and road carnage and less pollution,”KRA Commisioner General John Njiraini said.
“The ICD is therefore a key component in the overall government strategy to deliver tangible trade benefits through the SGR project. SGR’s success is therefore highly dependent on an effi cient ICD, off ering speedy cargo evacuation in order to avoid clog up of the cargo supply chain.”

The taxman said it has drawn up a comprehensive ICD business strategy.
It includes a dedicated team that will undergo special training “to equip them for the task ahead”.
“The ICD business process will be confi gured to ensure minimum clearance delays through green channeling,
pre-arrival clearance and the provision of peripheral facilities,” Njiraini said.
Cargo throughput at the port of Mombasa has continued to grow since hitting a record one million TEUs in 2014 up from 894,000 TEUs in 2013.
Pundits have argued that the SGR will not repay its own loans due to low cargo volumes for haulage and will require taxpayers to subsidise it, hence the move to secure cargo is seen as a strategy by the government to ensure the rail line remains economically viable.Kenya has already received a section of the passenger and freight locomotives from China Roads and Bridges Corporation – the contractor of the SGR line.Transport Cabinet Secretary James Macharia said 43 of the 56 locomotives will be used for transporting cargo, five for passengers, while another eight are for shunting operations.The CS on January 12, defended the project and the value of the locomotives imported from China.
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.