Plans to build grain facility unsound, says Jaffer

A Parliamentary Committee has heard that plans to build a second grain bulk handling facility in the country are not sound.

The Grain Bulk Handlers Ltd  boss, Mr Mohammed Jaffer, appeared before the House committee on Transport Tuesday to protest the move to construct the second facility at the port of Mombasa.

In a two-hour meeting at Parliament’s Continental House, Mr Jaffer said the current demand at the port was too low to justify a second outfit.

“Only the port knows whether they need a second grain handling facility,” the Mombasa-based businessman told the committee members in his submission.

“The port masterplan has no forecast for another facility until 2028.”

He said GBHL had a capacity of 3 million tonnes yet at the moment, the actual figures were averaging 1.1 million tonnes a year.

“But this figure could rise to 2 million tonnes this year given the drought and famine,” Mr Jaffer said.

GBHL has a 33-year license to handle all grain imports at the port, an arrangement which the committee and a section of current GBHL’s clients (millers) find as inhibiting competition.

Committee chair David Were (Matungu MP, ODM) sought to know Mr Jaffer’s stakes should another outfit be erected at the port to end the perceived congestion at GBHL.

However, Mr Jaffer said there was a probability of the USD65 million (Sh4.9 billion) investment being “wasted”.

“If a second terminal is erected, mine will become a white elephant.... I will have to close it,” the businessman said.

This was the fourth time Mr Jaffer was appearing before a Parliamentary committee in a probe over his business license at the port of Mombasa.

He has previously been grilled by the Agriculture Committee (over the maize scandal), the Public Investment Committee and the Finance Committee (over the construction of a second outfit.)

On Tuesday, Mr Jaffer blamed Mombasa Maize Millers for his woes and accused them of “lying” to the Finance Committee about his failure to meet their orders.

“When you order 10 ships at one go and then say there is a delay, it is a stage-managed delay,” he said.