Shippers lose millions at Mombasa port

Cargo at the Mombasa port. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • In a letter dated September 2, shippers through its lobby Kenya Ships Agents Association said that operations have worsened over the past four months.

Kenya Ports Authority (KPA) on Friday suspended some construction works as shipping agents said the inefficiencies were costing them up to Sh3.5 million daily each. In a letter dated September 2, shippers through its lobby Kenya Ships Agents Association said that operations have worsened over the past four months.

The association said port productivity as measured by Berth Moves Per Hour (BMPH) has reduced below 30, the acceptable benchmark for an efficient port. The shippers said delays were increasing, yet the facility has all necessary equipment for running operations smoothly.

“As you know, these developments are very costly for ship owners. Assets either lie idling in anchorage or extra fuel is burnt to make up for lost time and maintain schedule, costing ship owners up to $40,000 (Sh3.6 million) per day a vessel,” said a letter by chairman David Mackay copied to key State officials.

The letter alleges that ship owners have had to bribe to get work done. “Where there has been a decent performance, it should be noted that this has come about as a result of payment so that people can work,” said letter.

The lobby says KPA should increase productivity to 50 BMPH to increase turnaround time to two days.

The KPA which met the stakeholders on Friday, however, says the reduced turnaround time is temporary, caused by ongoing works, increased traffic and heavy rains in Mombasa. Traffic has increased by 122 per cent over the last six months, which far exceeds the 12 per cent it had projected.

“While we welcome this good port business, it is unfortunate that it has coincided with the ongoing rehabilitation of our existing infrastructure at the container terminal yards, expansion of exit gates and adjacent roads,” said KPA general manager for operations Twalib Khamis in a response to the Business Daily.

He added: “KPA decided to temporarily stop all works after meeting with stakeholders last Friday. Major works on the yards is suspended to allow clearance of the vessel backlog.”

Prior to the Kenya Shippers letter, KPA had acknowledged that there was congestion at the port which saw it prioritise large ships and also limit the amount of empty containers that can be exported from the port. KPA has capped exports of containers to 500 units per vessel.

“This is a temporary measure to reduce ships waiting time and to address space constraints caused by ongoing yard civil works. We will review situation periodically and revert to previous arrangements as soon as the situation normalises,” said KPA.

The letter by Mr Khamis is addressed to all shipping lines and agents and is dated August 29. The government is hoping to make the Port of Mombasa the preferred gateway to the East African region.

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