Cargo firms oppose new storage fees

Cargo firms on Tuesday opposed plans by the Kenya Ports Authority to levy storage charges on goods being handled at the port of Mombasa.

The charges also include those being transported by rail.

The western Kenya chairman of the Kenya International Freight and Warehousing Association (Kifwa), Mr Joshua Akoko, termed the KPA move ‘unreasonable and unacceptable’.

Challenge it

He said his organisation would challenge it.

In a notice issued in a section of the press on Tuesday, KPA’s managing director, Mr James Mulewa said that the new regulations take effect on March 1, 2009.

The managing director said the authority would implement storage charges on cargoes, including rail bound containers after expiry of free storage period.

Mr Mulewa added that the charges apply to parties that consign and hand over their goods to KPA for transport by rail.

These includes ship agents, who do this through bill of lading cargo; and clearing and forwarding agents for transit containers and conventional cargoes.

According to Mr Mulewa, the decision has been necessitated by continued inability by the Rift Valley Railways to move cargo ‘in a timely manner’, resulting to the port being used as a storage area.

Contractual affair

As at December 15, he said, the number of containers at the Mombasa port stood at 2,021.

Mr Akoko, however, said that the task of moving cargo from one port to the other was a contractual affair between the Kenya Ports Authority and Rift Valley Railways.

“If they have contracted someone to do the job for them, why should we suffer when that party is not performing?” he posed.

He added that rather than imposing the charges on the cargo handlers, KPA should sit down with the railway firm to look into reasons why it finds it hard to meet its contractual obligations.

Mr Akoko said that the manner in which KPA is seeking to introduce the charges is questionable.

Rather than issue ultimatums, he argued, KPA should bring together all stakeholders to discuss the matter and come to agreement.

“Everybody is in business and all have to agree on how to conduct theirs,” he said.