|
|
 |
|
Viewing report
|
|
|
|
Kenya Shipping Report Q4 2011
Business Monitor International, Oct 2011, Pages: 87
The Kenyan shipping sector continues to be dominated by troubles at the Port of Mombasa. The facility continues to run over its nominal capacity, and despite the commencement of dredging works and other developments, too little appears to have been done. Landlocked client countries of the port, such as Uganda, have complained about the inefficiencies at the facility, and talks of privatisation, which might lead to a more efficient facility, have resulted in strikes and protests.
On a global level, we continue to be concerned by the state of the shipping industry. Container shipping companies are struggling to push through rate increases, and liquid and dry bulk operators are contending with some of the lowest daily returns in years. The cause is overcapacity, which looks unlikely to ameliorate anytime soon. There are fresh challenges on the way, including the fleets of mega-vessels being built by Vale and Maersk Line.
Headline Industry Data
- Port of Mombasa tonnage throughput forecast to grow 4.1% in 2011 to reach 19.71mn tonnes. Growth to average 4.3% to 2015.
- Container throughput forecast to grow 3.2% to reach 717,929 TEUs in 2011. Growth to average 6.1% to 2015.
- 2011 total trade set for year-on-year (y-o-y) real growth of 4.0%, and to average 5.3% to 2015.
Key Industry Trends
Mombasa Privatisation Plan Dropped Following Dockworkers' Strike In July the Kenyan Ports Authority (KPA) made a dramatic U-turn and scrapped its plans for the privatisation of Mombasa, the country's primary port, following an eight-hour strike by the facility's workers. BMI notes that although the decision will be regarded as a significant success by the port's employees, the facility is desperately in need of expansion and efficiency improvements to cope with projected traffic volumes.
Construction Of Lamu Port To Start In December It was reported in September that construction work of the Kenyan Port of Lamu is scheduled to start in December 2011, despite strong opposition from lobby groups and a section of residents. According to Lamu District Commissioner Stephen Ikua, the port's construction will begin simultaneously with that the Mokoe Minjila road, which is designed to ease transport. Ikua added that the completion of feasibility studies had provided positive outcomes for the multi-billion port project. The port will be located in Hindi Magononi, with construction to start for 22 to 25 berths.
Stakeholders Raise Concerns Over Inefficiency And Theft At Mombasa Port Ugandan importers raised concerns over inefficiency and theft at the Port of Mombasa at a meeting of Kenya Ports Authority (KPA) stakeholders in Kampala during August. The importers complained about vehicle robberies in transit, theft of motor vehicle parts and long queues for cargo scanning at the port, despite several attempts by the KPA to address their concerns. The stakeholders have also faced unnecessary charges, such as handling fees, at the port. Charles Kareeba, chairman of the Uganda Shippers Council, has asked the KPA to work in association with the Kenya Revenue Authority (KRA) in order to speed up cargo clearance processes at the port.
Key Risks To Outlook Risks to our forecasts in Kenya continue to come from the troubled port of Mombasa. Growth is dependent on the port being able to cope with the projected increase in custom. If work does not improve turnaround at the facility soon then lines could look to other East African ports in place of Mombasa. Modernisation is needed at the port, but with workers threatening strikes at the mention of privatisation, this may prove hard to do without impeding throughput. With landlocked countries also complaining of theft, the facility risks losing business to other East African ports.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
