KPA offers shippers cut on charges to boost SGR cargo uptakeSaturday March 03 2018
Kenya Ports Authority (KPA) has offered shippers another steep cut on its container handling charges in a move meant to boost the uptake of cargo through the standard gauge railway (SGR).
The move comes in the midst of a row with freighters who have defied a government directive to transport their imported cargo via the SGR. Under the new tariff which takes effect immediately, cargo owners will pay Sh8,160 ($80) in container handling charges for a 20-foot local container at the inland container depot (ICD) in Embakasi, down from Sh10,506 ($103).
KPA will also charge Sh12,240 ($120) as container handling charges for a 40-foot local container at the ICD, down from Sh16,014 ($157). On the other hand, the charge on a 40-foot container and 20-foot container in transit to another country has been reduced from Sh12,750 ($125) to Sh9,189 ($90) and from Sh8,670 ($85) to Sh6,120 ($60) respectively.
“In order to promote the use of inland container depot Nairobi (ICDN) and transit clients who wish to nominate ICDN as a point of cargo delivery, KPA has given a rebate on tariffs,” said KPA in a public notice in the local dailies Friday. The government has shrugged off concern raised by a section of shippers on the directive compelling upcountry and landlocked country importers to use the SGR saying it’s the only way of ensuring a smooth flow of cargo to Nairobi’s ICD for the benefit of all players in the sector.
This has seen importers based in Nairobi and locations beyond it ordered to start collecting their cargo from Nairobi’s ICD in Embakasi.