State vows to go ahead with sale of berths at port

The process of privatising berths at the port of Mombasa is still on despite strong opposition from the dock workers.

The Privatisation Commission that is mandated to manage the sale of public institutions, has defended the plans, saying it will make the harbour more competitive and enhance efficiency for transhipment business.

The Dock Workers Union has called a strike by the end of this month unless the government withdraws a gazette notice that announced the privatisation of berths 11-14.

The workers say the process is not informed by need and see it as a political move by greedy people who want to benefit from the now profitable parastatal.

With the increased capacity to handle containerised cargo, the privatisation commission executive director Solomon Kitungu said the port will be able to compete favourably in the region and serve as the hub for cargo handling if more capacity is created.

The union says the idea of selling the port was motivated by the Sh5.3 billion pre-tax profit recorded last year, adding there were more pressing needs such as a terminal to handle fertiliser for which the government can invite private participation.

“We are still at the infant stages of this process of privatisation and there is an opportunity to share more information and develop consensus,” Mr Kitungu told stakeholders, including dock workers at the Bandari College.

The proposal to privatise berth 11-14 was approved by Cabinet in December last year.

Bids for expression of interest on consultancy services for proposed sale were invited in April. 

Bids were received on September 25. 

The process of identifying the successful bidders is about to be completed, Mr Kitungu said and a 20-month contract will be awarded.

Audit firm, PriceWaterhouseCoopers, CPCS Transcom Limited, HPC Hamburg Port Consulting, and Maritime and Transport Business Solutions have submitted tenders.

According to Mr Kitungu, the consultancy firm that will be awarded the tender will be required to develop a proposal, which, among other things, will give the financial position of the parastatal, the need for privatisation and the method.

Mr Kitungu said the proposal, which will be presented to the Cabinet for approval, will carry recommendations on how to deal with the affected workers and the benefits of the sale.

“It is only Parliament that can write off any debts and also deal with legislative issues,” Mr Kitungu said.