A section of the Port of Mombasa/ KPAKenya is staring at a major trade hitch as a shortage of containers hits the main import source of China, amid a pileup of empties in Mombasa which could lead to a sharp rise in commodity prices.
This comes as shipping lines move to raise concerns over what they term “poor and slow operations” at the East African ports of Mombasa and Dar es Salaam.
Through the industry lobby, the Kenya Ship Agents Association (KSAA), shipping lines has cited delays in ships berthing at Mombasa which is costing them heavy loses in terms of daily running usage and charter, with demurrage fees running between $20,000 (Sh2.6 million) and $50,000 (Sh6.5 million) daily, depending on the vessel size.
Lines have not been able to load full tonnage of ships leaving Mombasa, according to KSAA, with instances where vessels are made to vacate berths without completing cargo operations.
While Kenya Ports Authority and Kenya Revenue Authority agreed on a decongestion plan, which involves the use of Container Freight Stations (CFSs), Mombasa has been hit by a shortage of storage facilities.
“There is need to create more handling and storage space inside the port area instead of relying on private depots. These private entities are not helping solve the problem,” KSAA chief executive Elijah Mbaru told the Star, in Mombasa.
“We have seen a lot of ships waiting at the Port of Mombasa.”
Mbaru said trucks turn-around has also been affected with the congestion in Mombasa blamed on operational inefficiencies including slow clearing processes by clearing agents and port movement.
“You will find that a truck driver is at the gate, congesting the gates but they don't have the requisite documents to go and pick that container from the yard and this affects that tractor that is bringing the empty containers. Before, trucks could do like eight to 10 to the CFSs. Today, they are doing two trips,” said Mbaru.
KPA
managing director Captain William Ruto confirmed there is a shortage of storage
facilities in Mombasa, with the port being chocked by containers.
According to Ruto, Mombasa port can only support up 8,000 TEUs in storage but has been forced to accommodate up to 12,000 containers.
The closure of Mahati Container Freight Station, a key facility in Mombasa, has contributed to the congestion.
Current empty container depots are Hakika, APM, Dodwell, Fortune, Cargo Haven, and Portreitz.
“Currently, we are storing more than 50 per cent of empties earmarked to be delivered in port.Investments in empty container storage facility is low, I agree there has been a problem, and we are helping where we can,” Ruto told the Star.
The empty container shortage in China means Kenya could be affected on her imports, a move like to push up commodity prices.
Delays in returning empties at the ports of Mombasa and Dar es Salaam is said to be contributing to the shortage.
Mombasa remains the leading port in the region, with cargo throughput growing 14 per cent last year to 40.99 million metric tonnes, compared to 35.98 tonnes the previous year.
It serves the East African Community landlocked countries through the 1,700-kilometer-long Northern Corridor which runs between the port city, Uganda, Rwanda, Burundi and Eastern DRC—the main trade route in the region.
