The Africa Report — July-August 2017

(Jeff_L) #1
Mombasa
has invested
in increased
capacity
and enters
a second
phase
of expansion
in July. It will
also benefit
from the
Mombasa-
Nairobi
standard-
gauge
railway

TREVOR SNAPP/BLOOMBERG VIA GETTY IMAGES

exports to East Asia are also
hampering growth at the port.
The KPA remains upbeat,
with the government increas-
ing capacity at Mombasa in
anticipation of increased cargo
levels. Last year, it added 500,000
TEUs of capacity with a second
container terminal, and a sec-
ond phase of the expansion is
expected to start in July.
The standard gauge railway
from Mombasa to Nairobi,
which is due to start operations
at the end of the year, will likely
improve efficiency at the port,
according to KPA spokesman
Masemo: “The truck turnaround


is around five hours, and we want
to reduce it further to two hours.
For the cargo that is going to the
border, the turnaround time is
four days but we definitely hope
that once the rail starts operating
it might go down to three days,”
Masemo says.
Analystsseetheimprovements
bearing fruit for the Kenyan port,
which serves Uganda, Rwanda,
Burundi, South Sudan and the
DRC. “Upgrades at the port itself
and the new container terminal
likely improved the efficiency
of the port,” says Ahmed Salim,
vice president at risk advisory
firm Teneo Strategy.

In Tanzania, the government
of President John Magufuli has
put the brakes on the planned
development of a new Chinese-
backed port at Bagamoyo, north
of Dar es Salaam. But other port
developments are going ahead.

DEEPER BERTHS
On 10 June, Tanzania Ports
Authority signed a $154m
contract with China Harbour
Engineering Company for the
construction of container ter-
minals at its main port. The
upgrades would strengthen
and deepen seven berths to 15.5
metres and also build new gates.
“Even if we don’t undertake
this construction, we will be able
to reach 20m tonnes [of shipping
capacity] in 2022,” says the ports
authority director, Deusdedit
Kakoko. “So the extra effort the
government has injected will
boost us by an extra 8m tonnes.”
Tanzania has also dropped
value–added tax levied on aux-
iliary services offered to transit
cargo through Dar es Salaam
port and plans to lay a standard
gauge railway line to the border
with Rwanda. It seeks to tap
cargo from the hinterland and
expects to undercut the Kenyan
line which goes through Uganda.
Murwanashyaka, the cargo
clearer, says he sees a chance
of recovery for Dar es Salaam
but that he will not be waiting
around. “I might go back to trad-
ingcereals,”hesays.“Iamlooking
for suppliers in Uganda.”
Joseph Buritein Dar es Salaam

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