Donor Conference seeks investments to turn Port of Mombasa into world class facility

The conference aims to raise USD 484 Million for improvements needed to transform the port into a world class facility

NAIROBI, Kenya,22nd May 2015 – TradeMark Africa (TMA) and the Government of Kenya through the National Treasury today hosted a number of international donors at a conference intended to highlight priority infrastructural requirements at the port of Mombasa in need of renewal and upgrading. The investment is aimed at catalysing investments worth $484 million. The event was held in Mombasa with key participants including JICA, Development Bank of South Africa, AfDB, DFID, The World Bank, The EU Delegation to Kenya and USAID.

Participants of the Mombasa Port donor conference flanked by the Cabinet Secretary, Treasury, Henry Rotich and other donors from European Union and European Investment Fund, China Exim Bank, JICA, Agence Francaise De Developpement, Development Bank of Southern Africa, DFID, KfW

The donor conference organised by TMA and the government of Kenya is aimed at seeking funds for the expansion and upgrade of identified priority projects for the port. These include dredging and expansion of berths 1-14, relocation of Kipevu Oil Terminal, which is currently in the middle of a very busy operations area and therefore limits the size of vessels that it can handle. The discussions also looked into the rehabilitation of the Wharves to provide capacity for handling coaster and other vessels of lower draft, project cargo and RoRo (Roll-on/roll-off) vessels; as well as the development of the area of G-Section that will be used for project cargo and RoRo/storage of motor vehicles.

Speaking at the conference, Cabinet Secretary for the National Treasury, Henry Rotich noted:
“The government of Kenya is keen on achieving its vision 2030 goals and to do this, investments are required in infrastructure that will facilitate growth for the country. The Mombasa port is a gateway to trade in the region and with increased volumes of trade, investments are required to ensure that it can cope with the demands of modern trade. This ultimately will make our country and the region competitive.”

He also commended TradeMark Africa for its commitment and partnership with the government of Kenya in supporting key projects which will help the government to achieve its vision 2030 targets.

Cabinet Secretary for Transport James Macharia said:
“Our role as a Ministry is to ensure that we provide modern infrastructure to ensure rapid and sustained development that will facilitate regional integration, trade and ultimately improvement of the welfare of Kenyan Citizens. The government is keen to kick start these projects and turn the Mombasa port into a world class port.”

David Stanton, Director General TMA reiterated the significance of these projects saying;
“TMA is committed to spearheading these projects which are aimed at making the country competitive and boosting trade both regionally and internationally. At the moment, East Africa has amongst the highest freight and transport costs in the world. These costs seriously erode the marginal competitiveness of goods exported by East African countries, reducing trade, economic growth, job creation and poverty reduction. We are grateful that our partners came out here to deliberate on these recommendations and to support our endeavour to transform the Mombasa port into a world class, efficient facility.”

TradeMark Africa has, to date, mobilized approximately USD 98 Million to support the Mombasa port infrastructure, construction of a new port access road and implementation of the resilience infrastructure improvement programmes. Key among which are upgrading of Yard 5, expansion of gates 18/20 and the development of Port Reitz Road, which was launched in February 2015vwith the aim of reducing truck operating costs along the transport route, to and from the Kipevu West Container Terminal.

The Port of Mombasa has over the years recorded significant growth in traffic volumes. In the last 10 years, traffic increased more than 6% per annum to 22.3 million tons in 2013. Container traffic grew faster on average by more than 8% p.a., rising to nearly 900,000 TEU in 2013 from 438, 597 TEU in 2004. KPA projects that the Port will handle 1,650,000 TEU by 2016.

The day-long conference culminated in a tour to the port for all in attendance to provide a more visual demonstration of the impact of the recommended developments.

Source: TradeMark Africa (TMA)

TradeMark Africa (TMA) is an aid-for-trade organisation that was established with the aim of growing prosperity in East Africa through increased trade. TradeMark Africa (TMA) operates on a not-for-profit basis and is funded by the development agencies of the following countries: Belgium, Canada, Denmark, Finland, the Netherlands, UK, and USA. TradeMark Africa (TMA) works closely with East African Community (EAC) institutions, national governments, the private sector and civil society organisations.