Kenya charts new course to transit business with plan for Lamu harbour

Kenya is inching closer to positioning itself as the regional hub for the lucrative transit and trans-shipment business as the Government prepares to start the construction of the second transport corridor at the Lamu Port.

The firm that will carry out feasibility studies for the second transport corridor, will be identified by mid next month, Transport ministry officials said.

Maritime experts said the future of Kenya in transit and trans-shipment business lies on the construction of the Lamu port, due to its deep waters that can accommodate the current generation of post - Panamax vessels.

Narrow channel

Construction of the integrated second transport corridor, with six major components connecting Lamu port to Southern Sudan and Ethiopia will also open up the dry northern parts of Kenya, which have been marginalised since independence.

The narrow channel at the Mombasa port cannot accommodate huge vessels even with the planned expansion, according to the Kenya Ports Authority (KPA) harbour master, Capt Khamis Twalib, who said Mombasa will be relegated to a feeder port.

The Port of Mombasa is already developed to near- full capacity, the lead advisor to the second transport corridor, Dr Mutule Kilonzo, said in an earlier interview.

The port was designed to convey 20 million tonnes of cargo a year.

But with the entry of Southern Sudan alone into the region’s economy, estimates put unrestricted demand of cargo rising upwards of 32 million tonnes per annum, Mutule said.

This port will therefore not sustain the growing need for access brought about by the heavy demands of Southern Sudan and Ethiopian markets.

“It has been recognised for a long time now that Kenya, as the principal gateway to the sub-region, needs an alternative port which was identified by a study carried out in 1975, citing Lamu as a suitable alternative,” Mutule said.

Ship manufacturers are currently making large vessels, which can carry up to 10,000 twenty foot equivalent units (Teus) to reduce the freight cost.

Port with narrow channels such as Mombasa which can handle ships of capacity of less than 3,000 Teus will be relegated to feeder ports.

There is therefore an opportunity for shipping lines and cargo owners to gain a cost advantage by consolidating traffic in ports that can accommodate large vessels such as South Africa, Djibouti and Lamu for distribution to smaller ports, Mr Mervin Chetty, the chief strategists of Transnet Port Terminals in South Africa said.

Just four months after its launch, the Port of Ngqura in South Africa, which has deep waters and capacity to accommodate post- Panamax vessels is already making significant strides in transshipment market in South Africa.