- The project was scheduled for completion in August last year, but was delayed by the Covid-19 pandemic that struck the country in March 2020.
- The new facility will replace the current 50-year-old Oil Terminal.
Image: LABAN WALLOGA
President Uhuru Kenyatta is on Thursday expected to return to the Coast region for the inspection of a critical oil facility at the port of Mombasa.
The new Sh40 billion Kipevu Oil Terminal, which has a capacity to handle at least four oil vessels, is about 98 per cent complete.
The facility is expected to be ready for operations by the end of January.
The project, which began in February 2019 with a completion date set for August last year, was delayed by the Covid-19 pandemic that struck the country in March 2020.
Kenya Ports Authority senior communication officer Hajj Masemo confirmed the President’s visit, adding that the facility is set for commissioning soon.
“Yes, plans are underway and we expect the Head of State will be at the port for the inspection of the facility. The new facility is almost ready and it will be commissioned soon,” Masemo said.
The new Kipevu Oil Terminal, which is located at the centre of the ocean, will replace the 50-year-old Kipevu Oil Terminal that is between berth 19 and 20.
The new facility, according to the designs, has the ability to hold and offload volumes from four vessels—three of petroleum and one carrying Liquefied Petroleum Gas at the same time.
The old terminal can only serve one vessel at a time.
The upgraded modern oil terminal is expected to have a capacity to accommodate vessels of up to 200,000 DWT (dead-weight tonnage).
It will also have the ability to handle crude oil, heavy fuel oil and three types of white oil products (DPK-aviation fuel, AGO-Diesel and PMS-Petrol).
KPA will hand over the facility to Kenya Pipeline Company, which is expected to use its expertise to bring the facility to full speed operations.
According to importers, the increased capacity of oil handling is expected to save them from demurrage and surcharges, which usually happen due to delayed offloading of their products.
The additional cost have a ripple effect that lead to high cost of oil products to consumers.
President Kenyatta’s visit comes barely three weeks since he commissioned the largest shipyard in East Africa at the Mtongwe Naval Base on December 17.
The shipyard, which has a capacity to handle a 4,000-tonne vessel with a length of 150 metres, is the second government-owned facility in Kenya after the one at the Kisumu Port.
The new shipyard at Mtongwe Navy, built in collaboration between the Kenyan government and its strategic partner from the Netherlands Damen Gorinchem, will serve both public and private commercial shipping needs.
It will design and build new vessels, undertake repairs among other specialised maritime services.
Apart from offering employment opportunities, the Kenyan government is set to earn millions of revenues annually from the private and other nations’ vessels that will be repaired at the new Mtongwe facility.
Approximately, Kenya will save Sh6.8 billion annually that is spent on servicing its marine hardware.
The new facility will also offer employment to over 10,000 Kenyans, both directly and indirectly, according to the government.
Currently, 150 Kenyans have benefited directly from skills transfer from the project.
-Edited by SKanyara