Kenya in talks over cash for port expansion

What you need to know:

  • He said plans were underway to ensure that after the first phase is competed in March next year, the construction of the second one will start immediately.
  • The first phase of the terminal will cost Sh28 billion, but the DP did not indicate how much would go into the second.
  • At the same time, TradeMark East Africa will carry out major reconstruction of all the other berths at the port, its country director, Mr Chris Kiptoo said.

The government is finalising talks with Japan on funding the second phase of the second container terminal at Mombasa Port, Deputy President William Ruto said Wednesday.

He said plans were underway to ensure that after the first phase is competed in March next year, the construction of the second one will start immediately.

“We are on course with first phase and the process for funding of Phase Two is in its final stages, also expected to be financed by the Japanese Government,” Mr Ruto said at Kenya Ports Authority during the commissioning of 12 gantry cranes.

The first phase of the terminal will cost Sh28 billion, but the DP did not indicate how much would go into the second.

“We will also continue with modernisation and computerisation to transform the port into a world-class facility,” he added.

In order to ease movement of goods from the port, the government would prioritise construction of the Miriti-Changamwe road, whose contract had been awarded. The standard gauge railway, once complete, will increase haulage of goods by rail from five to 50 per cent, the Deputy President said.

At the same time, TradeMark East Africa will carry out major reconstruction of all the other berths at the port, its country director, Mr Chris Kiptoo said.

REHABILITATION

“According to a study carried out recently, the existing berths need rehabilitation and design will start soon. TMEA will work with the National Treasury, the Ministry of Transport and Infrastructure and Kenya Ports Authority to organise a donor coordination workshop next month,” he said.

Mr Kiptoo said that with the total cargo passing through the port expected to hit 44.03 million tonnes by 2025, there was a need to create more capacity.

Port managing director Gichiri Ndua said the new equipment, which is computerised and uses modern technology for fuel saving of up to 50 per cent, had improved the rate of stacking of containers.

“They are fitted with special electronic gadgets that give them capability to track containers stacked at the yard, linking with our systems to give real-time and online information,” he said.