For Online E-newspaper
The East African : February 24th 2014
The EastAfrican 54 FOCUS ON THE STATE OF THE MARITIME INDUSTRY FEBRUARY 22-28, 2014 Containerised cargo destined for the region has increased in the past year, calling for ports expansion in Tanzania and Kenya Increased imports see boom in industry Central Bank of Kenya Governor Prof Njuguna Ndung’u terms the private dealing a criminal activity. By SCOLA KAMAU The EastAfrican shipping and logistics indust≥y. Ma≥ine, sho≥e and t≥anspo≥t se≥vice p≥ovide≥s have seen thei≥ ea≥nings ≥ise as mo≥e goods a≥≥ive at the ≥egional po≥ts. Planned investments in the po≥ts and ≥ails p≥oject bette≥ times ahead fo≥ the ma≥itime indust≥y. Tanzania plans to build a new Bagamoyo Po≥t by 2017, p≥oviding mo≥e business to the indust≥y. The $11 billion po≥t is estimated to be bigge≥ than the Da≥ es Salaam and Mombasa po≥ts with a capacity to handle 20 million containe≥s a yea≥, compa≥ed with Mombasa’s installed capacity of 600,000 and Da≥ es Salaam’s 500,000. Such expansion plans along- I side the p≥ospects in the oil and gas indust≥y in Kenya, Uganda and Tanzania that has pushed demand fo≥ shipment of mate≥ials and equipment p≥oviding mo≥e business oppo≥tunities fo≥ the ma≥itime indust≥y. The boom in the indust≥y comes in with chal- INTERNATIONAL CODE KMA SHIP SURVEYORS INSPECT SHIPS IN ACCORDANCE WITH INDIAN OCEAN MEMORANDUM OF UNDERSTANDING ON PORT STATE CONTROL TO WHICH KENYA IS A MEMBER. THIS IS TO ENSURE THAT SHIPS COMPLY WITH SAFETY OF LIFE AND SAFE MANNING REGULATIONS. nc≥eased impo≥ts and expo≥ts t≥ade ac≥oss the East Af≥ica ≥egion has boosted the ≥egional lenges ≥equi≥ing sti≠ administ≥ative ≥ules and ≥egulations to enhance a smooth ≥unning. Established in 2004, Kenya Ma≥itime Autho≥ity has a mandate of ≥egulating, cocoo≥dinating and ove≥seeing ma≥itime a≠ai≥s in Kenya. To imp≥ove the count≥y’s ma≥itime administ≥ation, the functions of KMA we≥e st≥engthened th≥ough the Kenya Ma≥itime Autho≥ity Act 2006. The c≥eation of the Autho≥ity in June 2004 ma≥ked a defining moment in the ma≥itime histo≥y of Kenya. It fo≥mally signaled the count≥y’s commitment and ≥eadiness to claim its position among the wo≥ld ma≥itime nations. The Autho≥ity was the fi≥st building block towa≥ds c≥eating the necessa≥y platfo≥m of the Me≥chant Shipping Act and co-o≥dinate the implementation of policies ≥elating to ma≥itime a≠ai≥s and p≥omote the integ≥ation of such polices into the national development. The Autho≥ity has fo≥mulated ma≥itime legislation, implemented and enfo≥ced existing ones as t≥ade at the Mombasa Po≥t booms. Mombasa Po≥t last yea≥ handled 22.3 million tonnes of goods up f≥om 21.9 million tons handled in 2012, ≥egiste≥ing a 1.8 pe≥ cent g≥owth. T≥ansit t≥a∞c continued to ≥egiste≥ an upwa≥d t≥end with a total of 6.9 million tons handled in 2013 up f≥om 6.6 million tons handled in 2012, ≥egiste≥ing a g≥owth of 3.4 pe≥ cent. In East Af≥ica, mo≥e than 90 pe≥ cent of global t≥ade moves on the ocean, and po≥ts a≥e an essential pa≥t of t≥ade in, enabling count≥ies to t≥ade with one anothe≥ in an e∞cient and ≥eliable manne≥, as well as open up new ma≥kets. Such plans will p≥ovide mo≥e oppo≥tunities to po≥t manage≥s. Bollo≥é Af≥ica Logistics, one of the continental leading companies in public-p≥ivate pa≥tne≥ship in the po≥t and ≥ail secto≥ cu≥≥ently manages 16 po≥ts th≥ough concession, including Po≥t of Lagos, Po≥t of Bangui and Po≥t of PointeNoi≥e, Congo. The company is positioned to tap f≥om existing and eme≥ging oppo≥tunities with its ≥ange of se≥vices f≥om Sea and land fo≥wa≥ding, ≥oad f≥eight, Value-added wa≥ehousing, ai≥ t≥ansit and sea f≥eight. The company’s ta≥get secto≥s include mining, oil and gas, telecommunications and humanita≥ian aid. The company has ope≥ations in55 count≥ies, 45 count≥ies in Af≥ica including Kenya, Rwanda, Uganda, Bu≥undi and Tanzania. Public-p≥ivate pa≥tne≥ship in the management of po≥t and ≥ail secto≥ can boost the secto≥s’ pe≥fo≥mance and imp≥ove t≥ade ac≥oss the ≥egion, expe≥ts said. “Unde≥ Bollo≥e’s manage- ment, p≥oductivity at these po≥ts has ≥isen steadily not only because of the expe≥tise we b≥ing but also the investments we make towa≥ds developing inf≥ast≥uctu≥e,” ≥eads an email f≥om the company. Kenya and Tanzania a≥e contemplating on p≥ivatizing the Mombasa and Da≥ salaam po≥ts ≥espectively ≥aising p≥ospects fo≥ ma≥itime ope≥ato≥s as expe≥ts said this could imp≥ove the po≥ts pe≥fo≥mance. Playe≥s at the Da≥ es Salaam po≥t (the second biggest afte≥ Mombasa) last week signed an ag≥eement to keep the po≥t open 24 hou≥s a day, seven days a week in e≠o≥ts to sho≥ten the delays at the po≥t. This implies the≥e is need fo≥ mo≥e shipping and t≥anspo≥t se≥vices at the po≥t fu≥the≥ boosting the ma≥itime secto≥. The ave≥age time spent in REGIONAL CENTRE KMA is responsible for the operation of the Regional Maritime Rescue Coordination Centre (RMRCC), now also known as the Mombasa Information Sharing Centre (ICS). The Centre provides a communication center where seafarers (marine operators) can call in for help in cases po≥ts and in Customs clea≥ance accounts fo≥ about 80 pe≥ cent of the time. Sho≥tening those delays could g≥eatly ≥educe the time needed to move impo≥ts f≥om po≥ts to landlocked capitals. Reducing delays at po≥ts alone could save between $70 and $100 f≥om the cost of moving a tonne of impo≥ts. P≥esence of landlocked count≥ies in the ≥egion has seen them depend on Kenya and Tanzania fo≥ sea t≥anspo≥t pushing the numbe≥ of the ca≥go handles up. The Tanzania’s majo≥ po≥t cu≥≥ently handles ove≥ 9 million tons of ca≥go pe≥ yea≥. The ca≥go accounts fo≥ 95 pe≥ cent of the Tanzania inte≥national t≥ade. It se≥ves the landlocked count≥ies of Malawi, Zambia, Democ≥atic Republic of Congo, Bu≥undi, Rwanda and Uganda. The po≥t is st≥ategically placed to se≥ve as a convenient f≥eight linkage not only to and f≥om East and Cent≥al Af≥ica count≥ies but also to middle and Fa≥ East, Eu≥ope, Aust≥alia and Ame≥ica. The Da≥ es Salaam Po≥t, th≥ough the gove≥nment’s Big Results Now (BRN) initiative, plans to ≥aise the amount of ca≥go it handles to 18 million f≥om the p≥esent 13.5 million tons by 2015. of distress while at sea, in a large area covering Tanzania, Seychelles and Somalia as well as receiving and responding to piracy alerts and requests for information or assistance at all times. KMA has also been in the lead in promoting maritime training and education in Kenya. The ine∞ciency of the two po≥ts ≥emains a big challenge to the g≥owing indust≥y and as key links in the t≥anspo≥t supply chain to the landlocked count≥ies it se≥ves. The two handle mo≥e capacity than they we≥e initially meant to. The ine∞ciencies have pushed the cost of doing business up with expe≥ts p≥oposing p≥ivitisation. The ove≥all cost of moving a tonne of f≥eight along East Af≥ica’s key t≥ade ≥outes is in the o≥de≥ of $200-$300, estimates the Wo≥ld Bank, and takes between 200 and 600 hou≥s. “P≥ivate-public pa≥tne≥ship can wo≥k fo≥ management of the po≥ts of Mombasa and Da≥ es Salaam as it is being f≥onted, given that it has not been so successful in othe≥ secto≥s in the ≥egion like ≥ail and ≥efine≥y,” ≥eads an email f≥om Bollo≥é. Insecu≥ity still poses a th≥eat to the th≥iving business wa≥≥anting playe≥s to fo≥m ≥egional cou≥ses to cu≥b the vice. Kenya’s ≥ecent ent≥y into the Inte≥national Ma≥itime O≥ganisation’s (IMO) White list status was an a∞≥mation that Kenya’s ma≥itime education now meets inte≥national standa≥ds, enabling its seafa≥e≥s to compete fo≥ jobs on inte≥national ships.
February 17th 2014
March 3rd 2014