KPA takes over new terminal

The acting managing director Kenya Ports Authority (KPA) Catherine Mturi addressing the press on March 1, 2016 at the facility's offices in Mombasa. KPA on April 4, 2016 warned the public against fraudsters advertising non-existent vacancies at the organisation. FILE PHOTO | LABAN WALLOGA | NATION MEDIA GROUP

What you need to know:

  • Last month, Transport minister James Macharia asked KPA to start the process of terminating a tender for the port operator after it was marred by court battles over claims of discrimination.
  • On Tuesday, Ms Mturi said given the circumstances, KPA had an obligation to operate the terminal to avoid a situation where the government starts repaying the Sh29 billion loan next year yet there were no operations.

The Kenya Ports Authority (KPA) has taken over the operations at a new container terminal as it prepares to start paying a loan the Japanese government advanced Kenya for the construction of the facility.

KPA acting managing director Catherine Mturi said following the handing over of the terminal by the contractor on Monday since an operator had not been identified, the authority was left with no other option but to start handling cargo at the 550,000 container capacity facility.

Last month, Transport minister James Macharia asked KPA to start the process of terminating a tender for the port operator after it was marred by court battles over claims of discrimination.

On Tuesday, Ms Mturi said given the circumstances, KPA had an obligation to operate the terminal to avoid a situation where the government starts repaying the Sh29 billion loan next year yet there were no operations.

“We are putting in place equipment and resources so that operations can start soon. Already, we have six cranes at the site and we are reorganizing our staff to see how we will deploy manpower,” she said.

She said last year, the port handled 26.7 million tonnes of cargo against 24.9 million tonnes recorded in 2014, reflecting an increase of 1.9 million tons (7.5 per cent).

"While imports recorded a total of 22.7 million tonnes of cargo in 2015 against 20.8 million tons handled in 2014, posting an increase of 1.9 million tonnes or 9.2 per cent, exports recorded a total of 3.5 million tonnes during the period under review up from 3.4 million tonnes recorded in the corresponding period in 2014, registering an increase of 168,000 tons or 5.0 per cent,” she said.

However, transhipment traffic registered a decline from 731,912 tonnes recorded in January to December 2014 to 523,993 tonnes handled in January to December 2015, reflecting a decrease of 207,919 tonnes or 28.4 per cent,.

The decline is attributed to teething problems associated with introduction of the Single Customs Territory.

The first phase of the second container terminal has raised Mombasa Port total container capacity to at 1.5 million containers, with a harbour depth of 15 metres, allowing fourth generation vessels of above 6,000-container capacity to berth. This capacity makes KPA among the five biggest ports in Africa.

The second and third phases to be completed in 2019 will see an addition of 1.2 million more containers to the port’s capacity.