Despite a number of obstacles, the port of Mombasa has developed into a highly efficient operation that is growing daily, as Alan Swaby learns.
We’re used to hearing about high GDP growth in China and India but until a political squabble turned previously stable Kenya into a riot state for a month, it too had been doing very nicely. “Prior to 2007, growth had been running at seven per cent or better,” says Bernard Osero, public relations manager for the Kenya Ports Authority (KPA), “but then violence and destruction of infrastructure put the country back again.”
Even while the rest of the world was experiencing a 12 per cent downturn in container volumes after the 2008 banking disaster, total tonnage through Mombasa increased by 16.1 per cent while container volumes went up by 0.5 per cent. As a result, Mombasa is the second most important port after Durban in eastern and southern Africa. Not only does it handle its own imports and exports but it handles freight to and from all surrounding countries—Uganda, Democratic Republic of Congo, Southern Sudan, Burundi and Rwanda—and it’s also more convenient for the northern part of Tanzania to use Mombasa instead of Dar es Salaam.
“Dar es Salaam is around half the size of Mombasa,” says Osero. “Theoretically we are in competition but it is more of a collaborative relationship now that there are closer economic ties between our two countries. And the available distribution network will always be a major factor in deciding which port to use.”
If there are any weaknesses in the Mombasa story, they revolve around distribution. Only 10 per cent of freight is transhipped by rail, thanks to an inadequate network and a less than reliable service. Rectifying the problems is on the government’s agenda but at best it will be a long-term solution. In the meantime, Kenya’s roads—albeit good ones—are clogged with trucks.
There’s been shipping in and out of Mombasa for centuries, ever since spice-carrying dhows called there. Over 100 years ago the first of two lighterage wharves was built and the modern Port of Mombasa started taking shape in 1926 when two deepwater berths were created. In the 1960s and 1970s, during the era of the East African Community (EAC), Mombasa was controlled along with Dar es Salaam and the oil port of Tanga by a joint authority of the member countries. But when ideological differences caused the EAC to collapse, Kenya’s ports were taken over by the national government in 1978 and run by the KPA.
Although Mombasa is by far the largest, the KPA has other smaller ports dotted along the coast and in the future it will have an additional giant, when the deepwater port of Lamu is completed. Contracts have been signed with a Japanese contractor to undertake a feasibility study into a new 22 berth port, which will relieve some of the pressure from Mombasa.
And a relief of pressure is definitely needed. Using one method of measuring capacity, it is already handling 600,000 teu (20-foot equivalent units) per annum compared with a design capacity of 250,000 teu. In sheer tonnage, this means that 19 million tonnes are passing through the port compared with an absolute capacity of 22 million. Two years ago, congestion peaked as an issue and the KPA came up with a novel solution of contracting private cargo freight stations (CFSs)—offsite storage areas complete with the necessary customs clearing and freight forwarding facilities.
To relieve pressure completely and to provide badly needed extra capacity, a contract has been signed with the Japanese to build a second terminal at Mombasa. The first phase of this should be ready by 2015 and eventually it will provide an additional 1.2 million teu—in other words, it will triple the capacity of the existing Mombasa facilities.
In the meantime, the KPA has been working hard behind the scenes streamlining the way the port operates, taking out duplication and bureaucracy. Today, there is an automated document clearance system; the movement of ships and cranes is planned using sophisticated ERP software; and gate management and truck movements are controlled from a central point.
In part, the results have been impressive. Ship turnaround times that once averaged five days are now down to just two, comparing favourably with an international average of one to two days. Where there is still work to be done is on the cargo dwell time, or the time between the moment the cargo is landed to the point when it is despatched.
“The best ports have got dwell times down to a matter of hours,” admits Osero. “Ours too have come down but are still unacceptably long, at around five days. Unfortunately there is only so much we can do because much of the problem relates to road and rail links that are largely out of our hands.”
Still, the KPA is investing in different solutions. Two more gantry cranes have been ordered that will provide operational flexibility of having two cranes offloading one ship. Similarly, extra mobile cranes are on order to ensure quicker attention to smaller ships. And there is always the option of increasing the number ofCFSsas demand dictates.
There is no doubt that Mombasa has a lot going for it. It is strategically well placed and has established links with 25 shipping lines and direct connections to over 80 ports. It is a natural deepwater harbour that only needs some additional dredging once every five years, and it’s sheltered from the wind and strong tides. The 7,000 strong, 100 per cent Kenyan work force is also well trained and comprises all the support needed, from nautical engineers to experienced pilots.
But despite all the good points, Osero is concerned by the effect Somali piracy is having on sea freight in general. Already, ships are being forced to take ever longer routes to avoid hot spots impacting on rates and insurance. The trouble is that without intervention, the pirates are becoming ever bolder and reports already exist of attacks 1,000 miles from land. No doubt all at the KPA are hoping that action is taken, so that the country and its economy are free to forge ahead once more. www.kpa.co.ke
