Poor connectivity, inefficient clearing systems and limited space for cargo verification could hamper cargo uptake at the Naivasha Inland Container Depot, shippers have warned.
This, even as importers continue to pay billion in demurrage and storage charges at Kenya Ports Authority(KPA) facilities in Mombasa and Nairobi Inland Container Depot on delayed cargo clearance, which totaled Sh3.22 billion in 2017-18.
While President Uhuru Kenyatta commissioned the Sh6.9 billion Naivasha Dry Port on December 17 last year, the depot is yet to commence operations due to lack of a linkage Meter Gauge Railway to the Suswa SGR station.
The two facilities are about 23 kilometers apart.
The dry port is also yet to be equipped with cargo handling equipment, even as importers and transporters remain in a wait-and-see mood as the government pushes for its full operationalization.
The dry port is yet to receive a single cargo close to two months since Uhuru launched it.
The Shippers Council of East Africa(SCEA), which recently visited the site, has since recommended for improved infrastructure(connectivity) and good storage tariffs if the facility is to attract business.
“There is need for a good road network and availability of storage space,” SCEA chief executive Gilbert Langat told the Star in an interview.
Kenya Ports Authority(KPA) has been tasked to equip the depot and manage ground cargo handling, as it is at the Nairobi ICD.
SCEA has since called on KPA to offer longer storage periods to attract users to the facility as clearance remains among the biggest challenges facing traders.
While cargo dwells at the Port of Mombasa has reduced from an average 4.2 days in 2018, to 3.9 in 2019, and eight days from 12 days at the Nairobi Inland Container Deport, Importers continue to pay storage.
“Over 50 per cent of cargo at the ICDN pay storage because it is not cleared within the free period,” SCEA head of advocacy and membership development Agayo Ogambi told the Star.
At Mombasa, KPA gives a four-day free storage period after which, containers with domestic imports attract a fee of between $30(Sh3,025) and $90$(Sh9,076) per day, depending on the size.
Domestic exports have nine consecutive free days before they start paying between Sh2,000 and Sh3,000 per day, up to when the vessel is berthed.
At the ICDN, containers attract a fee of between Sh1,600 and Sh2,400 per day depending on the size. This is after the four days free period. KPA charges, however, vary from exports, imports to empty containers.
“People need a more free period. To attract shippers to Naivasha, KPA needs to come up with longer free storage time,” Langat said, noting that good terms will attract even Nairobi bound cargo.
KPA is currently assembling equipment for the dry port.
“We are currently planning to equip the facility,” KPA principal corporate communications officer Hajj Masemo told the Star.
The government is keen to use the new ICD to support realization of the planned Naivasha Industrial Park and ease cargo movement to Uganda, Rwanda, South Sudan and parts of DRC and Burundi, key destinations for transit cargo through Mombasa.
“It is our expectation that these new transport infrastructure facilities will significantly support and provide anchorage, for the development of Naivasha Industrial Park,” Uhuru said during the launch.
