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The East African : Sep 15th 2014
42 DELAY IN CARGO DISCHARGE Mombasa port to reinstate surchage Shipping lines impose the fee when a po≥t is deemed ine∞cient By A SPECIAL CORRESPONDENT The EastAfrican ing reintroducing a Vessel Delay Surcharge (VDS) that could push up the price of commodities across East Africa due to delays in discharging cargo. The return of the penalty which S was removed three years ago follows an increase in waiting time at the port over the past three months. Port managers attribute the inefficiencies to increased business and ongoing civil works at the container terminal yards. “Measures are already being taken by shipping lines to start the process of introduction of the vessel delay surcharge at the port of Mombasa,” Kenya Ship Agents Association chairman David Mackay said. Shipping lines normally impose a surcharge of between $200 and $300 on containers, depending on the size and length of delays, arriving at a sea port deemed inefficient. This in turn affects the prices of virtually all goods in which there is an import component including cars, foodstuffs, agricultural inputs as well as plant and equipment for manufacturing. The Kenya Ports Authority said rehabilitation of existing infrastructure at the container terminal yards, expansion of exit gates, adjacent roads and withdrawal of one berth from routine operations had temporarily affected yard planning. “The port’s berth capacity was reduced when Berth No. 8 was withdrawn from normal shipping operation for nearly two months between July 4 and August 29 when it was occupied by the drug suspect vessel M.V. Amin Darya (aka Alnoor),” KPA said in a statement. President Uhuru Kenyatta presided over the sinking of the ship two hipping lines serving the Mombasa port are consider- The EastAfrican BUSINESS SEPTEMBER 13-19,2014 Tanzania flowe≥ ea≥nings ≥ise by 86 pc By ADAM IHUCHA Special Correspondent TANZANIA’S EARNINGS from horticultural exports rose by 86 per cent between January and June 2014, compared with the same time last year, fresh data shows. Horticulture is the third source of foreign exchange for Tanzania alongside tourism and mining. The country exports most of its horticultural produce to Europe, where officials are optimistic of a better performance this year due to the improving economic outlook. Data from Tanzania Horticul- TRAFFIC AT THE PORT A container terminal at the port of Mombasa. Delay time is at its highest since that experienced during the post-election violence of 2007/8. Pic: File weeks ago. Mr Mackay said the VDS would be a solution to the deteriorating port performance despite measures taken to expedite clearance of ships such as call cancellations, discharges only and cut and run. “These measures do not alleviate problems created at other ports for Mombasa cargo but also continue to add to the storage bill at transshipment hubs. Assets either lie idling at anchorage, extra fuel is burned to make up for lost time and maintain schedule, costing ship owners up to $40,000 per day per vehicle,” Mr Mackay said. KPA said it had suspended major works on the yards to allow clearance of vessel backlog, review targets and bonuses for dock workers, restricted to 500 the number of export empty containers per vessel and set aside Berth 18 for dis- $40,000 By HALIMA ABDALLAH Special Correspondent THE ELDORET-BUJUMBURA oil pipeline is back on track after the Joint Co-ordinating Commission representing the interests of Kenya, Rwanda and Uganda terminated the contract with Tamoil East Africa Ltd (Teal). Last week, the three countries through a Joint Co-ordinating Commission (JCC) called for expression of interest by eligible contractors. “The governments invite expression of interests for pre-qualification from local and international contractors with capacity charge of vessels handling more than 3,000 TEUs. “This is a temporary measure to reduce waiting time and to address space constraints caused by ongoing yard civil works. We will review the situation periodically and revert to previous arrangements as soon as the situation normalises,” said general manager operations Twalib Khamis. He added that operations were expected to normalise by the end of September. Ship agents said waiting time had gone up to 25 days on average, the highest since the post-election violence of 2008. “The situation is especially dire for the container terminal, where productivity does not exceed 30 berth moves per hour across the vessel stay-about half of the benchmark for an efficient port,” Mr Mackay said, adding that at least 50 moves per hour would reduce the waiting time to two days. Cargo throughout the port in- The amount ship owners pay per vehicle when there is a delay in clearance at the port. creased by 12.8 per cent in the months of July as 11.9 million tonnes were handled, up from 10.5 million tonnes over the same peri- Cargo throughout the port increased by 12.8 per cent in the months of July as 11.9 million tonnes were handled up from 10.5 million tonnes over the same period last year. Container traffic grew by 11.5 per cent to 463,807 TEUs over the same period. Trans-shipment traffic for the six months to June grew by 122 per cent against an estimated 12 per cent growth rate. od last year. Container traffic grew by 11.5 per cent to 463,807 TEUs over the same period. Trans-shipment traffic for the six months to June grew by 122 per cent against an estimated 12 per cent growth rate. There were 25 ships calling at the container terminal in the months of June/July compared to 11 handled in the same period in 2013. This was due to an increase in the number of unscheduled vessels calling the port by some shipping lines such as the CMACGM line. Trans-shipment traffic for the last six months also grew by 122 per cent which is way above the projected 12 per cent. ture Association (Taha) indicates that the industry has earned the economy over $155 million between January and June 2014, compared with $83.4 million accrued from the same period in previous year. Official forecasts indicate that the industry is expected to bring in a $414 million, a growth of $39 million compared to the $375 million earned in 2013. Taha marketing manager, Cyrila Anton says that the country exported a total of 191,859 metric tonnes of horticultural produces, netting $155.6 million between January and June. “The industry performance this year is remarkable because the period under review, is normally a low season for most horticultural exporters in comparison with last year where the country raked in $83.4 million,” Ms Anton said. Taha executive director, Jacque- line Mkindi said 2013 was good for horticulture as the sector expanded its markets and increased local investments by 25 per cent, a factor that boosted the earnings. Other factors included the lift of Kenyan export ban on flowers and levy on vegetable exports from Tanzania through Jomo Kenyatta International Airport. Eldo≥et-Bujumbu≥a pipeline on t≥ack, but commission ≥ejects Tamoil and experience to do engineering, procurement and construction, test and commission the proposed refined petroleum product pipeline,” said the statement. The proposed pipeline is an ex- tension from Eldoret pipeline that is owned by Kenya Pipeline Company (KPC). It will run through Kampala in Uganda to Kigali in Rwanda. A new feasibility study is being done for the Bujumbura-Kigali leg of the pipeline. The pipeline is one of the North- ern Corridor Integration Projects that aims at accelerating regional development. Upon completion, the pipeline will serve all the EAC countries in addition to DRC and South Sudan. The project implementation cov- ers two lots. The first is a 350km stretch starting from Eldoret to Kampala. The contractor is expected to build a multi-products 12 inches diameter pipeline. This is an increase from the pre- vious design of 10 inches reverse flow design. The design was considered because it would let oil to flow in both directions- oil movement from Uganda to Kenya as the former will refine its oil domestically. “Any changes to the design will be communicated to the bidders,” said Uganda’s Commissioner for petroleum supply, Rev. Frank Tukwasibwe. The contractor will also be ex- pected to update existing Front End Engineering Design (Feed), installation activities, hydrostatic testing, pre-commissioning work and also to remove all snags in order to commission and deliver a complete and tested pipeline. The contractor will also construct storage terminals in Kampala, Mbarara and Kigali. In the second portion, the con- tractor’s job involves a 434km multi-products pipeline from Kampala to Kigali. This segment also comprises mainline pumps, intermediate pump stations and road/rail loading facilities for tankers in Mbarara and Kigali. Interested investors have up to September 30 to show interest. In 2006 JCC awarded the con- tract to Teal, a Ugandan based subsidiary company to Libyan Arab Investment Portfolio (LAIP). Unfortunately, the company’s performance bond expired before the agreed terms of the contract. Teal had Environmental impact assessment and land valuation completed but the project affected persons had not been compensated.
Sep 8th 2014
Sep 22nd 2014