KENYA: In order to boost transshipment, the Dock Workers Union of Kenya are demanding the second container terminal to be dedicated for transshipment, so that the output of the port of Mombasa will increase.
According to the union, Mombasa has the capacity to become a transshipment hub, positioning the port on the global map, which it said will will subsequently greatly contribute to the country’s economy.
Speaking to the Star yesterday, DWU secretary-general Simon Sang said the move will also position Mombasa as a transport hub in the region connecting it to other ports and destinations.
Transshipment involves the shipment of goods or containers to an intermediate destination before being delivered to the final destination.
It allows the change of the means of transport during the journey such as from ship to road transport or to another vessel. It also allows consolidation and deconsolidation of shipments. Last year, transshipment cargo traffic at the port of Mombasa recorded a robust performance posting 621,000 tonnes up from slightly above 100,374 tonness handled in 2013.
According to the Kenya Ports Authority management, trans-shipment cargo posted a 309.2 per cent growth, contributing to the one million container throughput realised by the port of Mombasa last year. It was the first time the port of Mombasa handled one million twenty foot equivalent units (TEU’s) and 24 million tonnes of total cargo throughput in a year.
“Transshipment traffic is a key segment of cargo traffic that any port would strive to capture given the fewer logistical challenges involved .It is a business everyone is looking forward to. I am surprised as a port we have not started doing that,” said Sang.
“We want to ask that the second container terminal be dedicated to transshipment business. This could see Mombasa port even handle 1.5 million tonnes per year,” he added.
He dismissed concerns by the Kenya Revenue Authority that transshipment business is likely to have the transit cargo consumed in the country.
“This is not true because the cargo remains in the port until it is shipped to the final destination. It does not go to the container freight stations,” said Sang.
The construction of the three phase container terminal at the port with a capacity of 1.2 million TEU’s is ongoing. The first phase with a capacity of 450,000 TEU’s is 62.2 per cent complete and is expected to be ready by 2016. According to KPA, plans are underway to begin the second phase early this year.
Last week, Transport Cabinet secretary Michael Kamau said works on the second container terminal could even be completed earlier than scheduled. He said his ministry will discuss with other relevant ministries on how to realise transshipment business in the country.
“We will discuss with the finance ministry to address any hitches and find a way of taking transshipment to another level,” said Kamau.
He was speaking at the Mombasa container terminal during the celebrations to mark the record 1 million TEU’s.
