Ports post impressive results on improved transit market

Despite economic challenges that slowed down global growth, the Kenyan ports recorded good performance alluding to confidence in their efficiency and output.

The Kisumu port recorded the best performance in 2023, increasing its cargo handling by 119 per cent to record 127,745 tonnes against 58,290 tonnes the previous year.

The Port of Lamu also showed increasing trust by shipping lines across the globe, handling 37,576 tonnes in 2023 up from 6,539 tonnes in 2022.

The port also registered an increase of 1,397 TEUs in container traffic, recording 1,779 TEUs in 2023 from 382 TEUs in 2022, slowly becoming the transshipment port it was intended to be.

Kenya Ports Authority managing director Captain William Ruto said on Monday the transit market grew by 11.5 per cent in 2023, recording 11.41 million tonnes, up from 10.23 million tonnes in 2022.

“This is evidence of our resilience in the face of ever-increasing competition. It also shows the transit market has had great confidence in us. In January, February and March, our performance has gone up because of the transit market volumes,” he said.

Captain Ruto spoke at KPA headquarters conference room, where he launched the 2023 Annual Review and Bulletin of Statistics.

Rwanda, a landlocked country, has been impressed by the performance of the Kenyan ports so much that she has increased her use of the Mombasa port for her goods.

“We have seen that in actuality. In the last two months, we have seen an increase in volumes of cargo destined for Rwanda pass through the Mombasa port,” the KPA boss said.

The Democratic Republic of Congo, the newest kid on the EAC block, has also increased the volumes of cargo passing through Mombasa port.

It increased by 57 per cent to reach 1.5 million tonnes in 2023, making Mombasa a crucial conduit for trade facilitation in the region, according to Captain Ruto.

Volumes of cargo for South Sudan also increased by 52 per cent in 2023 compared to 2022.

However, despite a decline from 71.5 per cent market share in 2022, Uganda remains Kenya’s primary transit country with a market share of 62.3 per cent.

“The country itself is in a process of economic recovery and soon we anticipate a resurgence in its economy,” Ruto said.

He said the efficiency at the Mombasa port is such that it is the port waiting for ships to offload cargo and not ships waiting at sea to offload cargo.

“Yesterday, we received a ship and within eight hours, we did 1,250 TEUs. You can do the math, while neighbouring ports are struggling. We don’t talk, we act,” Ruto said.

The MD said although the chaos at the Red Sea has disrupted shipping in the Suez Canal, it is a blessing in disguise for the Mombasa port and East Africa in general.

“Although it causes delays, many shipping lines have taken measures to ensure that there are no delays. The cargos that might delay a bit are those from Europe and the US because it forces ships to go round the cape to get to Mombasa," Captain Ruto said.

“But that has also brought good business to us because many countries north of Kenya are now using Mombasa for transshipment.” 

He said this is because it is difficult for ships to go all the way to the North and then come back to the South as it is too long a distance.

“So, it is a blessing for us but it is not something that we wish also,” Ruto said.

However, the Red Sea chaos also means the Mombasa port is on a very tight schedule in terms of exports, meaning all stakeholders have to be on toes.

For example, during the avocado season (March to July), there is high demand for fruits, whose shelf life in a refrigerated container is 40 days on average.

“And from Mombasa here to reach the market in Europe, it takes 38 days. So any slight delay may cause problems," Ruto said.

“However, we and the shipping lines have sat down and talked and we give priority to reefer containers and support our clients so we don’t experience any delays and we ensure efficiency.”

He said there has also been a huge growth of reefer containers from neighbouring countries.

Ruto said KPA supports their clients by ensuring they meet the deadlines given to them.

The surge in cargo throughput for 2023 was 35.98 million tonnes, a 6.2 per cent increase from 2022, when 33.8 million tonnes were handled.

Ruto said this was mainly supported by an increase of 2.33 million tonnes or 14.8 per cent in handling of containerised cargo, which accounted for 50.4 per cent of all cargo handled at the port.

The number of vessels calling the Mombasa port rose to 1,835 in 2023 from 1,561 registered in 2022.  

Container traffic also exhibited double digit growth of 11.9 per cent, registering 1.62 million TEUs in 2023, compared to 1.45 million TEUs in 2022.

“In the previous year, we only attained a growth of one per cent. So you can imagine a growth from one per cent to 11.9 per cent,” Ruto said.

The rise in containerised cargo has been consistent across the year, with notable record-highs witnessed in May at 155,204 TEUs and December at 152,326 TEUs.

“The first half of the year, we’ve posted more than Sh33.7 billion compared to Sh27 billion last year,” Captain Ruto said.