• MPs passed amendment allowing a shipping line that is wholly owned by government to operate a terminal.
• The change followed a spirited fight by Coast MPs, Public Investment Committee and rights group, Muhuri.
Image: ERNEST CORNEL
The Dock Workers Union has drafted a Memorandum of Understanding aimed at improving the efficiency of the Kenya Ports Authority.
The MoU follows a defeat of the proposal to privatise the second container terminal (CT2).
DWU secretary general Simon Sang’ told the Star President Uhuru Kenyatta, KPA, and Transport CS James Macharia will sign the document.
“We are looking at how best we can make the port of Mombasa the number one in Africa and top 10 in the world,” he said yesterday at Mukuli Fangia offices where they were celebrating the privatisation defeat.
Sang’ said Mvita MP Abdulswamad Nassir and rights group Muslims for Human Rights critically helped to stop the Kenya National Shipping Line, whose 47 per cent stake is under private firm Mediterranean Shipping Company, from running CT2.
"Muhuri has played a crucial role. They are in court partly addressing some aspects touching on privatisation. Their consistency boosted our strategy as a union. We borrowed some of our decisions from them,” Sang’ noted.
Muhuri executive director Hassan Abdille said residents, who were to suffer as a result of the proposal, had not been consulted.
“This is why in April we convened a meeting with Coast MPs and agreed on ways to defeat the privatisation. Early this month held another meeting with DWU over the same issue. We are glad the effort paid off,” he said on the phone.
In a Miscellaneous Amendment Bill by Majority leader Aden Duale, the government had sought to introduce a provision that would have given a Transport CS powers nominate who runs the CT2.
KNSL was already in talks with KPA on the takeover plan.
Ports Managing Director Daniel Manduku had said they were instructed, by way of a Cabinet resolution, to initiate talks with KNSL over the plan.
On Wednesday, MPs passed an amendment to the Merchant Shipping Act, only allowing a shipping line that is 100 per cent owned by the government, to run a port terminal.
Sang’ said the MoU entails making Mombasa port free and fast-tracking the establishment of Special Economic Zone at Dongo Kundu area.
“The SEZ will become the Dubai of Africa where there is free trade,” he said.
Sang’ said the MoU also suggests the adaption of Singapore port business model, a commercially-based.
“Their government has created a platform that manages and coordinates the function of the port commercially,” he said.
The SG said a competent team is needed to identify blue economy projects. Sang’ said the best way to improve the port efficiency is not through privatisation.
He said Tanzania and Djibouti reneged on similar agreements.
“What is important is to change the business models, making the facilities profitable,” he said.
MP Nassir said the port will not be sold or leased for seafarers to get jobs.
“I thank my colleagues for a vibrant session and deliberation,” he said.