Mombasa port nears full cargo handling capacity
A report said that vested interests have undermined reforms and investment at the Mombasa port for a long time. Photo/FILE
There is confusion at the port of Mombasa following a threat by Dock Workers Union to stop privatisation and concessioning of cargo handling operations of berths 11 to 14.
This comes in the wake of a World Bank report which warned that the facility would not be able to handle the volumes of imports due its size.
Maritime analysts now say this will reduce the port’s competitiveness compared to rivals.
The report, Running on One Engine: Kenya Uneven economic performance with a special focus on the port of Mombasa said there were key reforms that were needed at the port ahead or at parallel with significant new investments.
The port master plan, which was revised in 2009 only emphasised the role of private sector in the planned expansion but did not address the diverse institutional, regulatory and legal changes which are also required.
The report said that vested interests have undermined reforms and investment at the Mombasa port for a long time.
Based on the recent growth of over 10 per cent per year for containerised cargo volumes since 2005, the port will this year exceed its 20 million tonnes installed capacity.
“Private investment, which would lead to new local jobs, greater port efficiency and a positive impact on growth in the region have been thwarted by vested narrow interests seeking to maintain status quo,” said the report.
On job losses, the report said; “and while union and their workers might legitimately fear downsizing, this should be viewed in the context of government plans to extend the port and the situation on the ground today.”
The government is planning to make Mombasa a landlord port, in which Kenya Ports Authority withdraws from frontline cargo handling operations allowing this to be concessioned to private sector.
In the first phase, Kenya has already gazetted plans to privatise 100 per cent stevedoring services and development of berths 11 to 14 at the port and the Eldoret Container Terminal.
Berths 11-14 were originally designed to handle general cargo and will now be converted into a fully fledged container terminal with modern container handling equipment such as ship-to-shore gantry cranes.
