Lamu Port, Lappset corridor

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I have watched video about this and it seems they do not have STS cranes as yet.

Probably that says a lot about its finances and future.

They don’t yet, nor are there more than a couple rtg’s at the moment, but am almost certain they’re on the way. A multi billion dollar port of this scale to skimp out on a couple of hundred million worth of gear to make it efficient and viable would be suicidal! No doubt they went big with this project, but you gotta go big or go home in Africa with China on your throat.

Either way the berth is STS ready.

Kenya’s newest mega infrastructure project, the Lamu port, has received its first ship. Jan Bachmann and Benard Musembi – who study the environmental, socio-economic and security dynamics along the Lamu Port South Sudan Ethiopia Transport Corridor – provide insights into the history of the port, the opportunities it presents and the concerns around it.

When and why was the Lamu port project initiated?

The Lamu port is part of an ambitious transport corridor between Lamu – a small archipelago north of Mombasa in Kenya – South Sudan and Ethiopia.

Kenya already has one deep-water port in Mombasa. Plans for a second one to diffuse economic dependency on Mombasa go back to the mid-1970s. However, it only materialised in March 2012. The occasion was marked when the then East African heads of states – Kenya’s Mwai Kibaki, Ethiopia’s Meles Zenawi and South Sudan’s Salva Kiir – laid the port’s foundation stone.

In its early ambition, the Lamu port figured as connecting the landlocked East African economies to global trade routes. More specifically, it was envisioned as an alternative outlet for South Sudan’s oil, which is currently pumped via the Greater Nile Oil Pipeline to Port Sudan.

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With South Sudan mired in continuous war and Ethiopia upping its stakes in the ports of Djibouti and, most recently, Berbera, the international ambitions of the transport corridor shrivelled somewhat.

Yet, as a cornerstone of the Kenyan government’s Vision 2030 development plan, it is now branded as a “game changer” project.

Its new aim is to integrate marginalised northern Kenya into the Kenyan economy and the nation. Plans for the corridor include a pipeline, a railway line, a road network connecting Lamu, Garissa, Isiolo, Moyale and Turkana, a dam along Tana river, airports and resort cities. There are also plans to establish numerous industrial areas along the corridor.

We show in our research that most of the plans are real on paper and government websites only. Nevertheless, the implications for communities across northern Kenya are very concrete. Beside the completion of the 500km Isiolo-Moyale road, the official opening of Lamu port marks the project’s most salient achievement so far.

Constructed by the China Communication Construction Company, the first three of the planned 32 berths come at a cost of US$367 million.

What opportunities does the port present?

Mobilising projections about future trade, the Kenyan government has persistently argued that the Lamu port will become a viable and necessary complement to the hub of Mombasa. Local authorities specifically invest their hopes in plans for a special economic zone, though to date these have rather been illusive. This promises significant investments in the port and the creation of hundreds of jobs.

Since the port will primarily serve as a transshipment hub, it’s expected to attract key shipping lines by competing with the ports of Djibouti on the horn of Africa and Durban in South Africa. In addition it would serve key markets in southern Ethiopia and South Sudan.

So far, around 19 shipping lines have inspected the port. The Kenya Ports Authority anticipates many will use it and take the generous promotional offers currently in place.

On the positive side, road works connecting Lamu to Nairobi via Garissa are well under way. And the new road between Lamu and Garsen has already reduced transport costs as trucks and travellers no longer need to go via Mombasa.

Once the project’s highway towards Garissa and Isiolo is completed, the former northern “frontier” region may benefit from the connection to the port.

But there are big question marks when it comes to the overall economic value of a second Kenyan deep-water port. This concern is driven by the deficient infrastructural integration of Lamu and Northern Kenya.

Logistics experts also warn that Lamu port has formidable potential to become a white elephant project because of the immense uncertainties about its core use.

What have been the big issues around construction?

Planning and construction of the port have yielded a wide range of concerns and contestations, particularly on land rights, the environment, local livelihoods and security.

Different rights groups have documented numerous complaints by residents about compulsory land acquisition. One study found that the government had taken more land than it paid compensation for.

Another major concern touches on the environmental impact of the port’s construction, some of which came to light in a 2018 High Court ruling.

And local protests against the project have been met with harassment by Kenyan security forces.

The economic livelihoods of hundreds of local fishermen will be disrupted by the port because its extensive restricted area restrains access to viable fishing grounds. And in contravention of a court ruling that awarded fishers about KSH1.7 billion (US$ 18.4 million) compensation for their economic losses, the government has delayed the payments over disagreements about the list of beneficiaries and the mode of compensation.

Concerns about employment opportunities to residents are also growing. So far, around 100 youths from Lamu have secured employment at the Lamu port.

Lastly, there are security concerns. In the last 15 years or so, Lamu has become a highly volatile region. Attacks by the al-Shabaab militant group have brought violence to the area and turned it into a highly securitised region. Security operations have significantly reduced insecurity incidences. But periodic al-Shabaab attacks have affected construction activities.

How should these concerns be handled?

The concerns from the community are weighty and require serious attention since they affect many aspects of their daily lives.

Our ongoing research shows that many of the concerns could have been averted if due process had been followed from the project’s inception. This includes timely and adequate compensation to everyone affected by the project. It also includes proper and robust environmental and social impact assessments as well as considering qualified residents for employment opportunities. Finally, there’s the issue of addressing the perennial problems of land rights in Lamu.

It’s vital that Lamu residents are treated as direct stakeholders and partners to the project. Their voices, concerns and aspirations should be taken seriously.

I understand that could have been in the plans as originally thought. But lately there were a lot of rumours about problems with finances.

For a port of this scale to be short of STS at its opening ceremony, it just doesn’t happen that often. It is just providing a window what is going on behind the scenes.

But I concur, it will get them down the road, but just doesn’t look good at its inception event.

This is only the first 3 of 32 berths at Lamu can you believe.

Several SSA marekts are well placed to stand out for transport and infrastructure development, including Tanzania and Ghana, stand out. Tanzania’s Dar es Salaam port is undergoing construction while a railway connecting the port with Tanzania’s more remote regions and Rwanda is also being built. The standard gauge railway (SGR) project will link Dar es Salaam with Mwanza, on the Tanzanian shores of Lake Victoria, and the Rwandan capital Kigali. It has attracted various financiers, including the United Kingdom’s Standard Chartered - a private sector financier whose involvement in the project supports our view of the project as more financially sustainable than many other standard gauge railway projects in the region, including Kenya’s SGR, which remains uncompleted following Chinese lenders’ refusal of additional funding. Tanzania’s SGR is built in phases and involves Turkish contractor Yapi Merkezi, as well as Portuguese Mota-Engil, and China Civil Engineering Construction and China Railway Construction Company. Another port project in Tanga, north of Dar es Salaam, aims at facilitating crude oil exports from oil fields in Uganda. As a destination for the planned East African Crude Oil Pipeline, the Tanzanian port has been selected over alternative locations in Kenya.

This port must really be struggling for them to mention this as news.


Here the port traffic for Lamu, nothing is expected for the next few weeks.

Local Time: 2021-07-16 16:22:18 (UTC +3)

Un/locode: KELAU

Vessels in Port: 3

Expected Arrivals: 0

Berbera Port
Local Time: 2021-07-16 16:23:27 (UTC +3)

Un/locode: SOBBO

Vessels in Port: 7

Expected Arrivals: 5


Djibouti Port
Local Time: 2021-07-16 16:24:13 (UTC +3)

Un/locode: DJJIB

Vessels in Port: 14

Expected Arrivals: 13


Local Time: 2021-07-16 16:25:50 (UTC +3)

Un/locode: KEMBA

Vessels in Port: 30

Expected Arrivals: 28


Local Time: 2021-07-16 16:26:09 (UTC +3)

Un/locode: SOMGQ

Vessels in Port: 4

Expected Arrivals: 2

They actually borrowed the few yard equipment on show from Mombasa port. Beyond belief that you would plan to build over 30 berths without having the funds for the equipment to use it!

The Kenya Ports Authority intends to borrow $157 million to complete the construction of the first phase of Lamu Port, a new facility struggling to attract shipping lines following the commissioning of its first berth in May.

The port has put out an expression of interest seeking financing from local and international lenders for the operation of their first three berths. KPA has provided a breakdown that shows $55 million going towards the purchase of yard operations equipment, $45 million towards general equipment, security and ICT installation, $29 million in completing the construction works and $28 million in marine equipment.

“Phase 1 of the project involves construction of the first three berths and associated infrastructure, each with a depth of 17.5 meters and a length of 400 meters. The three berths are designed to handle container, general and bulk cargo,” said John Mwangemi, KPA acting CEO in tender documents.

He added that the physical superstructure for all the three berths as well as yard number one have been completed, while yards number two and three are under construction and are expected to be completed in October, subject to availability of funding. The remaining 20 berths are planned for construction by private investors under public-private partnership arrangements.

In May, President Uhuru Kenyatta inaugurated the first berth at the port with most of the equipment including cranes, trailers, gantries, forklifts, spreader and oil spill response borrowed from Mombasa port. Since then, lack of sufficient yard operation equipment has forced Lamu Port to only attract ships that have their own gear for operations, ro/ro ships and motor vehicle carriers.

Only five container ships have docked at the facility since it was commissioned, further raising concerns over the viability of the facility. It is the linchpin of the wider Lamu Port South Sudan-Ethiopia Transport (Lapsset) Corridor, a $24 billion megaproject connecting the Kenyan coast with inland markets.

“Lamu Port is planned to take full advantage of the current shipping trends where larger vessels are being deployed requiring longer berths with deeper depths,” said Mwangemi.

The MV Seago line Istanbul docked at the Port of Lamu on Thursday, 16th at around 7.00 PM, after clearance by Customs officers based at the Port. #PortofLamu

The Kenya Ports Authority (KPA) has intensified engagement with shipping lines and cargo owners to use the Lamu port after the completion of the first three berths and yards.

The authority is discussing with traders to come up with tailor-made proposals and understand specific customer requirements to design incentives including promotional tariff for the port.

The Port of Lamu, which has been conducting transshipment, has so far handled nine vessels and a total of 1,619 twenty-foot equivalent units (Teus) since operationalisation in May this year. It will also open customs warehouse in January 2022.

Since May this year, the port has been using berth 1 with a yard capacity of 4,320 total ground slots with a stack-height capacity of 17,280 Teus.

The first three berths have an optimal annual capacity of 1.2 million Teus with an average dwell time of four days.

The completion of the Sh40 billion first phase of the port this month is now giving Kenya opportunity to float a tender to private companies to construct 20 more berths under public private partnership to complete the 23-berth facility.

On its Twitter handle, Kenya Ports Authority (KPA) said, "the first three berths and yards at the Port of Lamu are now complete with plans to begin operations at berth 2 and 3 next year.

KPA is acquiring modern equipment including three mobile harbour cranes and a ship to shore gantry cranes to complement operations at the Port."

Phase 1 of the project involved construction of three berths and associated infrastructure. Each berth has a depth of 17.5 metres and is 400 metres long.

The three berths are designed to handle container, general and bulk cargo.

In May, President Uhuru Kenyatta inaugurated the first berth at the port with most of the equipment including cranes, trailers, gantries, forklifts, spreader and oil spill response borrowed from Mombasa port.

Since then, lack of sufficient yard operation equipment has forced Lamu port to only attract ships that have their own gear for operations, ro/ro ships and motor vehicle carriers.

KPA acting managing director John Mwangemi said discussions are underway with global shipping lines and potential investors to work on incentives that will make Lamu port a popular transshipment hub.

“The demand for global transshipment is there and our focus as KPA is to ensure that we continue to bring in modern equipment that will aid in enhancing turnaround time of cargo handling at the Lamu Port,” he stated.

Mr Mwangemi further revealed that there are plans to bring in new ship-to-shore gantry equipment within the next three months, to enhance cargo handling at the Port.

“KPA would also acquire three (3) Ship to Shore (STS) gantry equipment and 18 rubber tired gantry cranes in efforts to further modernise the Port,” said the MD.

In September this year, KPA announced it’s intentions to borrow Sh15 billion to complete the construction of the first phase of Lamu Port.

The KPA had put out an expression of interest seeking financing from local and international lenders for the operation of their first three berths.

KPA has provided a breakdown that shows Sh5 billion going towards the purchase of yard operations equipment, Sh4.5 billion towards general equipment, security and ICT installation, Sh2.9 billion in completing the construction works and Sh2.8 billion in marine equipment.

Lamu Port could become the biggest White Elephant in Kenya.

Ports in East Africa continue to struggle to be efficient with traders saying they are frustrated by bottlenecks that seem to promote inaccessibility for a region that is a net importer.

At a meeting on logistics for regional trade in Mombasa, examples were rife.

Kenya’s second commercial port in Lamu was meant to boost operations but 11 months after launch, the facility has only been able to handle 11 vessels, with throughput of 1,821 twenty-foot equivalent units (TEUs), according to Kenya Port Authority’s (KPA) data.

KPA officials attribute this to unfinished roads and for the port of Mombasa, they cite a crowded Northern Corridor.

At the 26th Intermodal Africa Exhibition and Conference in Mombasa this past week, KPA acting managing director John Mwangemi said they expect the port in Lamu to pick up after an improvement of infrastructure.

“The first phase of Lamu port is complete and we hope to partner with the private sector to make the port more viable,” he said.

“For the project to take off as it was envisioned, the government should open the entire corridor and involve the private sector,” he said.

“The incentives offered to shipping lines are not yet attractive due to inadequate infrastructure to support seamless flow of cargo.”

The challenges

The Mombasa port in 2021 handled 1.3 million TEUs, aiding business for Uganda, Rwanda, the Democratic Republic of Congo and South Sudan.

But the congested Northern Corridor, non-tariff barriers like irregular roadblocks and the port’s own inefficient operations stood in the way of its quest to be a hub for the region.

“Demurrage contribute to increasing cost of doing business and most traders would only import through a facility with seamless movement of physical cargo and paper trail; that is why we have been pushing pre-clearance of cargo at Mombasa port, which is now working,” said Mr Kututa.

Participants at the conference agreed that the cost of importing and exporting goods in Africa has been high due to poor infrastructure.

“This is why countries are grouping into regional economic blocs to plan and execute infrastructural developments jointly,” said Kenya’s National Treasury Cabinet Secretary Ukur Yatani.

Pooled infrastructure may boost movement of goods but the ports still have a big role to play.

In 2014, the African Union adopted the 2050 Africa’s Integrated Maritime Strategy and Plan of Action to address maritime challenges. Implementing the strategy has been difficult, however.

In Tanzania, the ports authority in February entered into a $500 million deal with Dubai-based logistics firm DP World to improve operations at the country’s main ports.

Tanzania Ports Authority (TPA) Director-General Eric Hamissi says some of the funds have been invested in a new online information system that will be accessible to government agencies involved in processing cargo through the ports of Dar es Salaam, Tanga and Mtwara.

“This will allow for all port activities to be monitored and overseen concurrently, thereby reducing delays for our clients," Mr Hamissi told a parliamentary team on an inspection visit to the port of Dar es Salaam this past week.

He said TPA had also invested in modern cargo handling equipment that was already paying dividends in “tremendous improvement” in overall cargo handling capacity at all three ports.

TPA was in the 2020/2021 Auditor General report named among government firms operating on huge debts, at Tsh562.8 billion ($243.63 million).

But Mr Hamissi said the authority was on track to meet its 2021/2022 target of Tsh1 trillion ($432.9 million) through handling at least 18 million tonnes of international cargo.

Up to 90 percent of Tanzania’s international cargo hinges on the ports of Dar es Salaam and Tanga, with Uganda, Rwanda, Burundi and eastern DR Congo being the target destinations. The port of Mtwara handles cargo to and from Malawi, Zambia and Zimbabwe.

A total of $58.3 million was allocated in the 2021/22 government budget to implement marine transport projects in lakes Victoria and Tanganyika aimed at raising the volume of cargo and passenger movements with neighbouring countries.

These improvements could be crucial for EAC’s new entrant DR Congo, which is still trying to develop its first deep water port in Banana in the west of the country. DRC’s current port can only accommodate small ships, meaning the country relies on neighbours to import critical goods.

Rwanda ships the most cargo through the Dar port, at about one million tonnes.

In January, President Félix Tshisekedi laid the foundation stone for the construction of the port in a $1.3 million deal with DP World.

Beggars belief.

So just two vessels since December last year. That is even worse than I thought. :no_mouth:

DJIBOUTI TEAM: ALLIANCE KEY TO TACKLE LAMU PORT ISSUES

May 16, 2022

By Philip Mwakio


Officials from the Djibouti Port have praised the Lamu Port, saying it has some of the longest quaysides in Africa. Mr Abdilahi Adawah Sigad, the Chief Executive Officer of Societe de Gestion du Terminal a’ Conteneurs de Doraleh commended the progress of the port and its berths.

He said the port’s quay length of 1,200m, which guarantees bigger vessels to dock, was a game changer.

The quay at Doreh Port terminal in Djibouti is 1,050m long, with a depth of 18m and has a capacity to handle 1.25 million of 20ft Equivalent Units.

The Djibouti delegation on a fact-finding mission after attending the recent high-level 26th Intermodal Africa 2022 Exhibition and Conference in Mombasa, said they wanted mutual relations with the management of the Port of Lamu.

“We are keen on exchanging ideas because of the similarities between the two terminals,” he said.

He said though viewed as competitors in the region, there was a lot the two ports could learn from each other to help address dynamics in maritime challenges and jointly meet the demands of the market.

He said since the Lamu Port will also be used as a livestock export facility, there was a lot that Kenya Ports Authority can learn from the Dolareh terminal, which has a livestock terminal inaugurated in 2021 with a capacity to handle 2.5 millions live animals per year, including resting areas and quarantine services for livestock before being exported.

The delegation toured the Lamu Port with KPA Lamu Jetty Superintendent Mr Abdishukri Osman.

The Lamu port has set aside 20ha within the facility for the establishment of a livestock marshalling yard to support the national government’s initiative to develop a livestock export zone in Baragoni and promote export.

Mr Osman said the new Port of Lamu had since last year in May handled 12 vessels. “KPA is committed to fully operationalise the Port by June 2022,” he said.

Kenya and Djibouti are targeting markets in Ethiopia with a bigger population and a growing economy.

The Doraleh terminal is connected to Western Ethiopia through the Addis-Ababa-Djibouti railway line, while Kenya is spearheading completion of Lamu Port South Sudan and Ethiopia Transport Corridor that will provide connectivity to Southern Ethiopia’s Hawasa Industrial region.

The Isiolo-Moyale highway is in place. The state has committed to complete the construction of the Lamu-Garisaa-Isiolo road.

The Lamu port is intended to boost Kenya’s status as a transport and logistics hub for East Africa and the Horn of Africa region.

Source: The Standard

You know things are tough when you fall back on livestock export.

Kenya’s Lamu Port lagging in EA transhipments, KPA data shows

TUESDAY MARCH 28 2023

Lappset project Lamu Port

MV Banyas 1 Lome Vessel docks at Lamu Port Berth Number 1 on October 15, 2022 waiting to export livestock to Oman. Lamu Port is yet to tap business from Horn of Africa importers and relieve Mombasa of congestion in transshipment two years after its launch. PHOTO | FILE ODIT | NMG

Summary

  • Lamu’s connecting roads and planned railways are underdeveloped, making importers reluctant to use it.
  • Lamu in Kenya and Bagamoyo in Tanzania have the potential to challenge Mombasa’s dominance in coming years.
  • SCEA CEO said competition is working to their advantage as governments improve services to maintain and attract shipping clients.

When the Lamu Port was inaugurated on May 20, 2021, the idea was to tap business from Horn of Africa importers and relieve Mombasa of congestion in transshipment. Nearly two years later, that hasn’t happened.

Official data from the Kenya Ports Authority (KPA) shows that Lamu is handling less than 2,000 twenty feet equivalent units (TEUS), with the Salalah port in Oman the main preferred transshipment port.

Lamu had come in with a suitable depth enabling it to accommodate big container ships, with smaller ships picking cargo from Lamu for onwards transshipment to other ports of the world, including feeding the Mombasa port.

Salalah is the biggest port in the Arabian Peninsula and most ships in Eastern Africa use it for transhipments.

The new KPA managing director William Kipkemboi Ruto last week said that his priority is to challenge that domination, targeting cargo headed to Southern Ethiopia and South Sudan as immediate business. The problem though is that Lamu’s connecting roads and planned railways are underdeveloped, making importers reluctant to use it.

Lapsset project

Lamu was one of the flagship infrastructure projects under Kenya’s Vision 2030 and was promoted as part of a proposed transport corridor linking with Garissa, Isiolo, Maralal, Lodwar, Lokichogio and Moyale to form part of the Lamu Port South Sudan Ethiopia Transport (Lapsset) corridor.

A logistics advisory firm GBS Africa notes in its latest January report that foreign direct investment is driving expansion and rehabilitation of existing seaports as well as the rolling out of entirely new facilities. The report warns that ports that shun partnerships with experienced foreign investors will lose out as competition for market share intensifies.

The document said Lamu in Kenya and Bagamoyo in Tanzania have the potential to challenge Mombasa’s dominance in coming years due to their capacities to handle larger vessels.

However, the document said Salalah Port has continued to serve key African ports while Lamu struggles with lack of right infrastructure and insecurity.

"Lamu Port has potential to accommodate big container ship where small ships can call at the port for onward transshipment to other ports of the East Africa. That would be of beneficial to traders as containers move much faster thus many vessels might avoid the time to get to Salalah Port in Oman which will be of benefit to the new Kenyan second commercial port,” reads the report.

Lamu, built from 2014 by China Communications Construction Company (CCCC), currently has four berths but will have 32 once fully established. That means it will replace Mombasa as Kenya’s largest port facility.

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Kenya’s Lamu Port lagging in EA transhipments, KPA data shows

TUESDAY MARCH 28 2023

Lappset project Lamu Port

MV Banyas 1 Lome Vessel docks at Lamu Port Berth Number 1 on October 15, 2022 waiting to export livestock to Oman. Lamu Port is yet to tap business from Horn of Africa importers and relieve Mombasa of congestion in transshipment two years after its launch. PHOTO | FILE ODIT | NMG

Summary

  • Lamu’s connecting roads and planned railways are underdeveloped, making importers reluctant to use it.
  • Lamu in Kenya and Bagamoyo in Tanzania have the potential to challenge Mombasa’s dominance in coming years.
  • SCEA CEO said competition is working to their advantage as governments improve services to maintain and attract shipping clients.

When the Lamu Port was inaugurated on May 20, 2021, the idea was to tap business from Horn of Africa importers and relieve Mombasa of congestion in transshipment. Nearly two years later, that hasn’t happened.

Official data from the Kenya Ports Authority (KPA) shows that Lamu is handling less than 2,000 twenty feet equivalent units (TEUS), with the Salalah port in Oman the main preferred transshipment port.

Lamu had come in with a suitable depth enabling it to accommodate big container ships, with smaller ships picking cargo from Lamu for onwards transshipment to other ports of the world, including feeding the Mombasa port.

Salalah is the biggest port in the Arabian Peninsula and most ships in Eastern Africa use it for transhipments.

The new KPA managing director William Kipkemboi Ruto last week said that his priority is to challenge that domination, targeting cargo headed to Southern Ethiopia and South Sudan as immediate business. The problem though is that Lamu’s connecting roads and planned railways are underdeveloped, making importers reluctant to use it.

Lapsset project

Lamu was one of the flagship infrastructure projects under Kenya’s Vision 2030 and was promoted as part of a proposed transport corridor linking with Garissa, Isiolo, Maralal, Lodwar, Lokichogio and Moyale to form part of the Lamu Port South Sudan Ethiopia Transport (Lapsset) corridor.

A logistics advisory firm GBS Africa notes in its latest January report that foreign direct investment is driving expansion and rehabilitation of existing seaports as well as the rolling out of entirely new facilities. The report warns that ports that shun partnerships with experienced foreign investors will lose out as competition for market share intensifies.

The document said Lamu in Kenya and Bagamoyo in Tanzania have the potential to challenge Mombasa’s dominance in coming years due to their capacities to handle larger vessels.

However, the document said Salalah Port has continued to serve key African ports while Lamu struggles with lack of right infrastructure and insecurity.

"Lamu Port has potential to accommodate big container ship where small ships can call at the port for onward transshipment to other ports of the East Africa. That would be of beneficial to traders as containers move much faster thus many vessels might avoid the time to get to Salalah Port in Oman which will be of benefit to the new Kenyan second commercial port,” reads the report.

Lamu, built from 2014 by China Communications Construction Company (CCCC), currently has four berths but will have 32 once fully established. That means it will replace Mombasa as Kenya’s largest port facility.

lapssetproject

Workers at work at the new Lamu Port-South Sudan Ethiopia Transport Corridor site in Kililana in Lamu West. PHOTO | NMG

However, the Lapsset project has stalled due to regional insecurity concerns on the border with Somalia, political instability in Kenya and a lack of investment.

Competition for cargo shipments

The GBS report also pointed out that Bagamoyo Port in Tanzania once completed, will be critical for transhipment due to its depth and size.

It would have a capacity to handle 20 million containers by 2045, 25 times the amount of cargo that the Dar es Salaam port handles today.

“For the continent to be fully integrated and for the vision of the African Continental Free Trade Area to be fully achieved, we must invest in Africa’s logistics sector. This will facilitate ease of movement of goods and services. It is therefore important to have predictable policies to attract investments in this sector,‘’ GBS Africa Managing Partner Agnes Gitau said.

Shippers Council of Eastern Africa (SCEA) Chief Executive Officer Gilbert Lagat in an earlier interview said competition is working to their advantage as governments improve services to maintain and attract clients.

Lagat noted that most ports have invested in different modes of transport but said there is need to embrace the multimodal transport treaty to reduce congestion at the ports.

“To ensure cargo is delivered on time, we need to incorporate both road and rail in our transport system and where possible lakes. We cannot expect to decongest our ports to make them competitive if we depend on one mode to evacuate cargo from the port that is why our East African port are operating at dismal compared to others in the region but with competition, we are seeing government investing more on such infrastructure,” Lagat said.

As Somaliland and Tanzania are angling to give Mombasa a run for its money, Kenya is also not lagging behind as it is investing in modernizing the Mombasa Port, building the Dongo Kundu Special Economic Zone and opening up different corridors to ensure cargo is evacuated without delay.