Kenya Port Authority (KPA) is planning to launch a master plan in order to make of Kenya a trade and logistic reference hub on August, 9, 2019.
The mention master plan, according to Logistics Update Africa, defines two major areas of intervention: terminal expansion and leveraging of the current existing infrastructure and the set up of a special economic zone of Dondo Kundu.
Logistics hubs do require heavy investment in infra structure and equipment so they can be competitive in terms of operations and costs. And lower costs attract customers that usually use other nearby hubs like, for exemple, Dar es Salaam and Djibouti ports.
On the internal Kenyan side, the Lamu up graded port will serve Northern Kenya, Southern Ethiopia and South Sudan Transport Corridor.
Also the Kisumo port will be revitalized to serve regional and local trade in Lake Victoria.
The 2019-2047 plan is expected to be implemented in three phases. It focuses on sharpening the competitive edge of the port of Mombassa.
If we look into the volumes that the Mombassa port handled in 2018, besides the fact that there was an interesting increase of containers handling of 9,8% when compared with the year of 2017, it is worth notice the there was a very signficative increase on transshipment of cargo of 33% when compared the same previous year.
Given the expectation of the Kenya Port Authority to handle 77 million tones of conventional cargo in 30 years, more then doubling their current handling figures, the time has come to put in place the adequate infra structure to attract new customers and shipping lines that usually use other ports.
Pedro Monjardino – Managing Partner of Strategic Consulting