Kenya Ports Authority has announced plans to establish a dry port in Kampala, Uganda.
The move aims to protect Kenya’s interests in the landlocked country.
There were fears that Kenya will lose cargo handling business for East Africa’s landlocked country to neighbouring Tanzania.
KPA managing director William Ruto said the new dry port will be built in collaboration with the Ugandan government within the next four years.
This is in a bid to bolster trade infrastructure and simplify logistics for Uganda businesses, he said.
“We want to make doing business easy for the Uganda importer such that if you have cargo, you just go and collect it from Kampala and then return your empty container there,” he said.
The annual cargo volume for Uganda, through the Port of Mombasa, is approximately 35 million tonnes, which is 25 per cent of all Mombasa Port’s business.
Ruto who spoke during a meeting with a Ugandan parliamentary delegation said the facility will be named KPA- Uganda.
“The joint venture between the two nations aims at streamlining business operations for Uganda importers. I urge you the MPs to support this so that we can make the movement of cargo from the Port of Mombasa to Uganda very seamless,” he said.
A directive by President William Ruto to remove non-tariff barriers along the Northern Corridor is one of the measures taken by the government to facilitate smoother trade between Kenya and Uganda.
“Our President was here (at Port of Mombasa) the other day and he directed that all the roadblocks be removed. The police are supposed to provide an escort, not to stop trucks along the corridor," Ruto said.
"Once you weigh your truck at the Port of Mombasa, the next weighing point is Malaba."
The KPA boss updated the MPs on the progress made in developing the Standard Gauge Railway.
He said there are plans for the railway line which currently extends from Mombasa to Naivasha, to reach Malaba.
Ruto acknowledged Uganda's plans to construct an SGR line from Malaba to Kampala to enhance connectivity.
The MD praised Uganda government’s continued utilisation of the rehabilitated Kisumu Port.
He said a significant portion of oil products destined for Uganda are transported from Mombasa to Kisumu.
