Kenya Ports Authority (KPA) has so far spent $27 million (Sh2.35b) to install security system at the port of Mombasa. KPA chairman, Mr Danson Mungatana said recent changes in International Maritime standards have created the need to assess and improve the status of security in the Kenyan ports. He said it is imperative that the port’s authority invests heavily in security and to ensure its human capital is empowered to provide adequate security for port users. This, he added, demands high level of training for KPA officers entrusted with security responsibility as part of the ports compliance with the International Ship and Port Facility Security Code. “It is surely with this in mind that KPA has invested heavily in ensuring that its security personnel are well trained as is evident with the graduates who are passing out today, “Mungatana said. Source: Standard Digital

Uganda is set to transport more cargo by rail as the capacity to convey heavy cargo has been developed. Twenty rail wagons have been imported from the US to increase heavy cargo movement between the port of Mombasa and Kampala. Rift Valley Railway (RVR), the company that operates the Kenya- Uganda railway, has begun carrying heavy steel products to be used for manufacturing iron sheets. Maryanne Wachira, the head of RVR’s steel division, said one train load can deliver 1,000 tonnes of heavy steel coils, the equivalent of what 50 trucks can deliver loading 20 tonnes each. Wachira was speaking at the launch of the RVR railway link to Roofings Rolling Mills at the Kampala Industrial and Business Park in Namanve last week. “In developed countries steel is transported on rail, but in Africa it is not happening because of infrastructure challenges. What we have launched removes 300 truckloads of steel off Ugandan roads per month,” Wachira explained. Over 95% of the goods that are imported into or exported out of Uganda pass through the port of Mombasa. They use the Northern Transport Corridor (Mombasa to Kampala), but 90% of the cargo on the route travels by road and only 10% moves by rail, according to the World Bank. Mark Rumanyika, the RVR general manager Western route, said ferrying high volumes of steel by rail has multiple social and economic benefits, including easing traffic congestion and saving roads from degradation. Rumanyika added that the newly-acquired electric locomotives will increase rail...

Uganda has developed an information exchange system that will allow East Africans to report non-tariff barriers (NTBs) via a short message service on their mobile phone. Sam Watasa, lead adviser on Uganda’s national response strategy for the elimination of NTBs said that the system, set up at a cost of $100,000, will provide a clear record of NTBs, and help the country assess progress in eliminating them. “When you use the hard copy form and take it to the appropriate desk, it takes anywhere between one and three months before the matter is dealt with,” he said. “Under the new system, the message will reach the department that introduced the NTB immediately.” Previously, Uganda recorded NTBs manually on paper at border points, which partly explains why the country has the highest number in the region, according to the latest EAC report on the elimination of NTBs. Uganda has nine, compared with Kenya and Tanzania that have seven each; Burundi has five while Rwanda has four. Under the new system, a person experiencing a barrier sends an SMS to code 201, at a cost of Ush150 ($0.06). The Ministries of Trade and Industry and East African Community Affairs, whose responsibility it is to ensure that Uganda does not create any impediments to trade, also receive the message, and are in turn expected to push the government department that introduced the NTB to remove it. The move comes at a time when the region is working to eliminate trade barriers as laid...

There was a collective consensus among African leaders on the topic of mobility in Africa, as well as the importance of efficient border and visa policies. We have seen good follow-up particularly in East Africa and it is imperative to continue to work on the border and customs environment to grow intra-Africa trade. The forum took place against a backdrop of significant economic growth in Nigeria – having recently overtaken South Africa as the largest economy in Africa – and that this has spurred investment interest in the country. Africa is clearly on the global agenda. Despite security concerns, delegates and heads of state from all parts of the world gathered in Abuja to discuss inclusive growth for Africa. A key view expressed by a number of African leaders at the Forum was the need for a proactive approach to border management, which will enable trade between various regions. The creation of an environment that enables business growth on the continent as opposed to obstructing it was also addressed by various parties. Recognising the importance of travel facilitation and talent mobility as drivers to integrate and develop the region, President Paul Kagame of Rwanda, President Uhuru Kenyatta of Kenya and Prime Minister Moussa Mara of Mali have all signed The Call to Action on Travel Facilitation and Talent Mobility, which urges all African States to work together towards the establishment of joint policies and the removal of barriers to facilitate movement of people. I also felt positive to witness how...

The Kenya Ports Authority is banking on the standard gauge railway (SGR) to offer a lasting solution to container congestion at the Mombasa port. KPA chairman Danson Mungatana said the new railway would come in handy as the container capacity at the port is expanded from 900,000 containers to 2.1 million by 2016. The construction of the second container terminal with a capacity of 1.2 million containers is expected to be completed in 2016. Currently 95 per cent of the containers at the port are transported by road. At least 20,000 trucks transport cargo from Mombasa through the Northern Corridor daily. Mr Mungatana says cargo ferried by rail from the port had dropped from 30 per cent to five per cent in the last 20 years. He said unless the railway line was put in place in good time, the port would face extreme container congestion as it would be difficult for the 2.1 million containers to be transported by road, warning of traffic congestion on the Northern Corridor. “The KPA management fully supports the standard gauge railway project as it is the future solution to container congestion at the port,” he said. “Without efficient transport, the port and our roads would be thrown into crisis.” The new railway line would also minimise damage to roads. Mr Mungatana was speaking to journalists at the Mkomani Showground on Tuesday. Source: Business Daily

Mombasa Governor Ali Hassan Joho may have been speaking in jest when he threatened to mobilise the county residents to forcibly take over the Kenya Ports of Authority if a law was not be passed to allow it to share its revenue with the county. What Mr Joho may not have understood was that the statement was likely to excite disaffection with the organisation and create bad blood between its management and the county residents. Yet he knows pretty well that KPA is a national asset that generates revenue for the National Government and benefits for all citizens. Its location in Mombasa is a matter of geography and should not be construed as though it gives Coast residents undue advantage over others. MANAGE FERRIES The Fourth Schedule of the Constitution makes a clear distinction between the functions of national and county governments. In this particular context, regulation of international shipping and what is referred to as related matters are excluded from the purview of the county governments. At best, their role is to manage ferries and harbours that deal with local transportation. State corporations like KPA and other national institutions are managed by the National Government because they are national resources that are meant to benefit all, and not just the residents of the counties in which they are. Devolution never meant cannibalisation and the likes of Mr Joho must have got it wrong if that is their understanding. A situation where every governor stands up and makes claim over...

On Monday, Chinese Premier Li Keqiang concluded his eight-day, four-country tour of Africa. His visits to Ethiopia, Nigeria, Angola and Kenya focused heavily on expanding economic ties with the continent and resulted in dozens of agreements on trade, energy, investment and development. A highlight of his trip was his appearance at the World Economic Forum (WEF) on Africa in Abuja on May 8. In a special address at the Plenary Session of the meeting, he laid out the grand strategy of China’s aid plan, calling for “more investment and financing, and expanded cooperation in infrastructure projects .” His words reflected a pledge he made earlier in the week of increasing Chinese aid to Africa by $12 billion, which includes $10 billion in loans and $2 billion for the Chinese Africa Development Fund. With this commitment, China has extended a total of $30 billion in credit to the continent and $5 billion in development assistance. Moreover, in response to the recent kidnapping of over 200 schoolgirls in Nigeria, Li made a promise to support rescue operations to recover the missing girls. In general, he also pledged to “assist Africa’s capacity-building in such areas as peacekeeping, counter-terrorism and anti-piracy.” These commitments fall in line with the general trends exhibited by the Africa policy of President Xi Jinping’s administration, which has emphasized peace and security as well as economic cooperation. The trip culminated on a high note in Nairobi, where Li signed agreements with Kenyan President Uhuru Kenyatta and other East African leaders...

The East African Community (EAC) has launched its single tourist visa in South Africa. The new cross-border travel permit was unveiled on Monday by ministers, high commissioners and tourism officials from Rwanda, Uganda and Kenya during the Indaba Annual Travel show in Durban, South Africa, a statement from the Ministry of East African Community Affairs indicates. Vincent Karega, the Rwanda High Commissioner to South Africa, said the single tourist visa makes the three countries a competitive tourist destination besides putting the region on the world travel map. “It is also a great signal that our three Heads of State are conscious that tourism is at the forefront of economic development. Eliminating the former multiple visa process boosts tourism revenues and investments in the region,” Karega said during the launch, according to the statement. The East Africa single joint visa covers Rwanda, Kenya and Uganda and took effect on January 1. Maria Mutagamba, Uganda’s Minister for Tourism, Wildlife and Antiquities, said the visa will provide greater value for tourists and will facilitate the movement of people throughout the Great Rift Valley states that share a lot in common. “It provides a diverse range of natural and cultural attractions. The initiative will also make the region more competitive and reduce the cost of doing business, promoting regional economic growth,” Mutagamba told media in Durban. The introduction of the joint tourist visa has so far boosted regional travel, adding value to the tourism products of the three countries. It has also highlighted the...

The Chinese are not Santa Claus. The deals we have signed with them are loans, which we will have to repay. But I must admit I admire the way these deals are arranged, especially the time-frames and project completion dates. As it is, if things go according to plan, we will have a completely new railway line between Mombasa and Nairobi in 42 months. Had we sought money from the conventional sources — the World Bank, for instance — we would still be arguing about settlement action plans, sovereign guarantees, letters of no objection and all manner of conditionalities. Anyone who takes a long-term view will admit that new infrastructure assets, especially those whose operations have a bearing on the cost of doing business such as ports, railways, roads and telecommunications, will always make economic sense, especially in the future. You can argue and debate whether the feasibility study was conducted at arms-length and whether the project was procured transparently. You can debate the cost of the project and compare prices with similar projects in the region. But many years later, especially if the project is completed within budget and agreed completion dates, the long-term benefits will outweigh the issues that critics raise during the planning and implementation stages. Several years ago, we shouted ourselves hoarse over the Turkwell Gorge project. Today, it is an integral part of our hydro-electric power generation capacity. Years ago, we derided former President Moi for creating new universities all over the place haphazardly. CONTEMPORARY...

Foreign goods ordered by Kenyan traders for resale in region have risen sharply in the first quarter of the year amid dropping Indian Ocean piracy and improvement in cargo clearance. Official data shows that trade in re-exports — foreign goods that are imported to be exported again — stood at 11.3 billion in the first two months of year, up from Sh7.7 billion in the same period last year. The level of re-exports first went above the monthly average of Sh3 billion in November to a new high of Sh6.9 billion in November, a month after Kenya signed a pact with Uganda and Rwanda to ease movement of cargo on the Mombasa-Kampala-Kigali route (Northern Corridor). Under the pact by the three presidents, the region has automated its cargo clearance and reduced weighbridges and police checks. “The decision has stripped away a lot of the bureaucratic red tape that snarled the free flow of trade in the East African Community,” noted TradeMark Africa, a multi-donor trade logistics agency. The reforms have shortened cargo haulage time on the 1,200km stretch from Mombasa to Kampala from nearly 20 days to between three and four. It takes an additional day to move goods on the 525km-road between Kampala and Kigali. READ: Agencies ordered to speed up cargo movement Rwanda and Uganda now collect their customs duty in Mombasa, allowing truck drivers to move freely without being subjected to time-consuming inspections. The re-exports mainly include petroleum fuels, farm and industrial inputs, motor vehicles and equipment...