Transport

Truckers cry foul over delays at Inland Container Depot

sgr

Cargo train at the Inland Container Depot in Nairobi. FILE PHOTO | NMG

The long duration that it takes to clear cargo from the Inland Container Depot (ICD) in Nairobi is becoming a headache for truckers offering last mile connection, bringing the efficiency of the standard gauge railway into question.

Whereas it takes about five hours to ferry cargo from Mombasa to the ICD in Embakasi, it takes over 24 hours to clear the consignment at the depot.

The move has seen truckers that would have done an average of two trips per day manage just one, subjecting transport firms to losses.

“The inefficiency at the ICD is costing us a lot. We take close to 24 hours to get cargo out of the facility because of the slow process” Rongai Workshop and Transport Limited managing director Vanessa Evans said.

Kenya Ports Authority, which is the custodian of the ICD, said that it handles a lot of cargo and is putting in place measures to address the congestion and minimise delays. The depot receives an average of eight trains a week.

Managing director Daniel Manduku said they had a meeting that brought together key agencies such as the Kenya Revenue Authority, Kenya Railways Corporation and Kenya Maritime Authority and came up with a plan that will address the delays.

Some of the measures include evaluation of cargo to streamline verification and come up with measurable performance indicators as well as timelines for clearing cargo.

“We are going to use these measures to ensure that we address the current challenge of congestion at the facility,” said Dr Manduku.

The MD said the congestion was easing with the number of cargo at the depot dropping from 13,000TEUs on January 7 to 6,000 at the moment.

He also said that they were putting a mechanism in place to ensure that trucks are only allowed into the facility when their cargo is due for collection.

A number of trucks have opted to offer last mile connection following the launch of SGR cargo trains last year as most business moved from roads to the railway. The government made a directive last year requiring all firms that won its tenders to transport cargo by rail with the view to boosting revenue to repay the huge Chinese loan that went into building the line.

Kenya Railways Corporation (KRC) owes Exim Bank of China Sh227 billion that went into the project. There have been fears that the Chinese might auction Mombasa port if the government defaults on payment.

According to a report by Auditor-General Edward Ouko, the payment agreement states that revenue of the Kenya Ports Authority (KPA) would be used to clear the debt.

“Exim Bank would become a principal over KPA if KRC defaults on its obligations and the Chinese bank exercises power over the escrow account security,” states a letter from Mr Ouko’s office and sent to KPA.

The letter adds: “KPA assets are exposed since the authority signed the agreement in which it has been referred to as a borrower under clause 17.5."

But the government’s recent move to introduce new cargo ferrying charges following the end of promotional charges might hurt the loan repayment plan.

The new rates, which are 79 per cent higher than the promotional charges, will also have a negative effect on consumers as manufacturers are likely to increase the cost of goods.

The cost of transporting cargo by road ranges between Sh85,000 and 95,000 for a 40 foot container compared with the new SGR charges of Sh100,000.

Manufacturers have protested over the increase in rates pointing out that it will make the cost of doing business in the country.

"We propose that the ministry considers extending implementation of the promotional rates to June, 2019, and thereafter gradually increase at a rate of five per cent every six months.

“This is to allow the agencies in the industry to streamline their services," said KAM chief executive Phyllis Wakiaga.