Envoys query selection of firm to run port terminal
Containers at the Mombasa port. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
- The envoys, whose countries have invested billions of shillings on upgrading the port, questioned why the tender, advertised in 2014, was cancelled prematurely in 2016.
The Second Container terminal of the port of Mombasa was completed in March 2016, with the support of the financing by the government of Japan to the Kenya government.
The terminal was to be operated by a private operator through a competitive bidding process to be carried out, that was launched by the end of 2014 and attracted a large number of internationally recognised operators.
Four countries, led by Japan, have expressed concern about the Kenyan government’s lack of transparency in selecting a firm to manage a new container terminal at the Mombasa port.
In a joint statement signed by three ambassadors — Mette Knudsen (Denmark), Aline Kuster (France), Yoshihiro Katayama (Japan) and British High Commissioner Nic Hailey — they urged the government to ensure the process is transparent through open bidding.
BIDDING PROCESS
In the statement addressed to Transport Cabinet Secretary James Macharia, the envoys, whose countries have invested billions of shillings on upgrading the port, questioned why the tender, advertised in 2014, was cancelled prematurely in 2016.
“The Second Container terminal (CT2) of the port of Mombasa was completed in March 2016, with the support of the financing by the government of Japan to the Kenya government. The terminal was to be operated by a private operator through a competitive bidding process to be carried out, that was launched by the end of 2014 and attracted a large number of internationally recognised operators. Unfortunately, the tender was cancelled in early 2016 by the Kenyan authorities before the end of the process,” notes the statement.
Section 16 of the Merchant Shipping Act disallows shipping lines from operating the terminal but gives priority to the Kenya National Shipping Line (KNSL) and the Geneva-based Mediterranean Shipping Company.
“We deeply regret the lack of transparency in the ongoing process, aiming at granting the operation of the CT2 to a single operator without any competition. This terminal is the most modern facility of the port of Mombasa, the management of which international operators would appreciate to be invited to compete for through an open and transparent process,” the envoys said.
YOUTH JOBS
The statement comes after the Kenya Ports Authority (KPA) initiated talks with KNSL regarding plans for the latter to take over the operations of CT2, which hosts berths number 20 and 21.
Last week, President Uhuru Kenyatta referred the 2019 Merchant Shipping (Amendment) Act to the House to allow KNSL to operate and maintain CT2.
The President’s action elicited mixed reactions, with some accusing the Executive of imposing the agenda on Kenyans to benefit a few.
Some maritime stakeholders supporting the privatisation of the facility praised the President’s move, saying if the bill is signed without such changes, it will deny jobs to hundreds of youth.
Dock Workers Union chairman Mohammed Sheria said: “We are yet to get more information but we support what the President has done. We shall give more details once we discuss the issue with the union.”
Others supporting the move are Seafarers Union of Kenya chairman Daudi Haji and the union’s former general-secretary Matano Chengo, who said the President’s action renewed hopes of continuing employment for seafarers.
They challenged Coast MPs to support the bill, saying it will enable more local youths to get jobs.
