Kifwa claims KPA demanded that all un-nominated containers by importers upcountry be railed to the Nairobi inland container depot via SGR for final clearance.
The Kenya Ports Authority, however, denies giving such a directive.
This comes as players raise concerns that there have been no consultations on how to effectively use the SGR.
A storm is brewing over reports of a government directive to have all un-nominated containers belonging to upcountry importers transported on the Standard Gauge Railway to the Inland Container Depot (ICD) in Embakasi, Nairobi, for final clearance.
The Kenya Ports Authority has, however, denied giving such a directive without the consent or knowledge of cargo owners.
This comes as players raise concerns that there have been no consultations on how to effectively use the SGR.
“We together with Kenya Railways have engaged and continue to engage all industry players to ensure that the SGR is a success in terms of economies of scale and cost reduction in the transport and logistics sector,” KPA managing director Catherine Mturi said.
Speaking to NTV, Ms Mturi said joint marketing teams were reaching out to cargo owners and logistics industry to sell the SGR.
“Generally we have received a lot of support from the industry,” she added.
But in a letter dated February 2, the Kenya International Freight and Warehousing Association (Kifwa) said the KPA had demanded all un-nominated containers consigned to importers upcountry to be railed to the ICD via SGR for final clearance.
Kifwa chairman William Ojonyo criticised the KPA for stopping nominations of Container Freight Station (CFS) starting Monday.
“We were shocked to be informed at the port community meeting that on government directive KPA has stopped nominations of CFS starting Monday,” Mr Ojonyo said.
"Although Kifwa supports SGR, any business given should be voluntary," Mr Ojonyo insisted.
“It should by willing buyer willing seller and not by force. It is rather illogical that KPA has implemented this directive without prior consultations with stakeholders,” he added.
On hold
Mr Ojonyo urged KPA to put the directive on hold until a meeting is convened on Wednesday next week to work on the modalities.
He said clearing agents are in a dilemma as to how they will verify release processes on the containers in Nairobi yet they lack offices.
The chairman said if their request is not addressed, they might be forced to look at an alternative avenue to stop the practice which he termed illegal.
“Cases have arisen where clearing agents have already documented some cargo for clearance through your previously pre-nominated CFS’s and they are now being informed that those cargos have been railed to ICD Embakasi,” the chairman claimed.
The SGR cargo service began last month after more than six months of testing.
However, even before operations go into full gear, stakeholders are raising concerns about its operations.
Killing businesses
Last Thursday, Mombasa Governor Hassan Joho said mandatory transportation of certain cargo through SGR was "killing’ transporters" businesses.
The letter, which was addressed to the KPA managing director, was written the same day the governor announced that he would take the national government to court over "transfer of port services" from Mombasa to Naivasha, a move he reckons will cripple the tourism hub.
Stakeholders insist that it is illegal for the government to take up responsibilities of cargo owners who have a choice over transport of their goods.
While it costs Sh50,000 to transport a 20-foot container from Mombasa port to the ICD, importers will have to spend between Sh15,000 and Sh20,000 on the last mile transport to industries within Nairobi depending on the distance from ICD.
Truckers charge between Sh60,000 and Sh80,000 to ferry the same container from the port to Nairobi, depending on the weight and type of cargo.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
