Monthly Archives: May 2015

EAST AFRICA’s Mombasa Port £23 million (KES3.5 billion) Eco-programme boost to Improve Trade

By sowmedia | Blog

Nairobi | May 25, 2015

EAST Africa still has some of the highest freight and transport costs which erodes the global competitiveness for the region’s exports, a trade consultant said on Friday. Trade Mark East Africa director General David Stanton said the high costs slow down trade, hold back economic growth, job creation and poverty eradication.

He spoke in Mombasa when TMEA and the UK’s Department of International Development signed a £23 million (Sh3.5 billion) financial support deal for a green programme at the Mombasa port.

The national government and Trade Mark East Africa had hosted international donors at a conference intended to highlight priority infrastructural requirements at the port of Mombasa in need of renewal and upgrading.

“This project aims at minimising environmental impacts while addressing energy efficiencies which are among many projects that TMEA is spearheading through the UK government support at the Mombasa Port to enhance trade environment in the region,” said Stanton.

Stanton said the programme aims at ensuring availability of fresh water, protection of marine environment, better use of energy and reducing carbon emission from ships and cargo trucks.

He said the additional support is in response to a recent study conducted by the Kenya Ports Authority recommending the need for mainstreaming of climate change and renewable energy into port operations. Through TMEA he said that UK and its seven other development partners are currently spending about US$700m (Sh51 billion) on reducing barriers to trade and accelerating regional economic integration in the East African Community.

“Improvements at the port of Mombasa are critical to increasing regional trade in the EAC with benefits that include reductions in the cost of goods of up 40 per cent,” he added. DfID deputy head Tony Gardner said they want to ensure the port becomes competitive with others globally.

“The funding is targeted towards modernisation work at the port of Mombasa including infrastructure investments aimed at addressing energy efficiency, speed up import and export trade handling and minimise environmental impacts at the port. This additional support now brings total DfID funding towards the port to £63 million (10 billion),” he said.

He said the expansion and modernization of the Mombasa port will factor in environmental and social aspects in order to complement existing projects and expand the benefits to all stakeholders, Mombasa residents and the wider East Africa Community.

EAST AFRICA PORT STATES UNDER PRESSURE TO HARMONISE PORT OPERATIONS

By sowmedia | Blog

Business Daily, Nairobi | May 23, 2015

A latest audit of operations at the Mombasa and Dar es Salaam ports revealed challenges to traders from Burundi, Rwanda and Uganda which affected the overall performance of trade in the region. “The two ports could consider harmonising their port charges, grace period and penalties, in view of the implementation of the EAC single customs territory,” Burundi said in a new report to the bloc’s secretariat.

“The two countries should consider allowing clearing and forwarding agencies to go to work at Dar es Salaam and Mombasa ports.” The two ports are the main gateways to the East African region and also service markets in South Sudan and the Great Lakes region, handling key items including fuel, consumer goods and other imports as well as exports of tea and coffee from the region.

“Dar es Salaam and Mombasa ports, should establish one terminal for all transit containers for EAC countries. For example, you will see at the Jomo Kenyatta International Airport in Nairobi that there is a window for EAC citizens only,” said Burundi further in the update published by EAC secretary-general Richard Sezibera on Friday.

The latest claims by Burundi add to a list of concerns by landlocked members of the bloc who felt disadvantaged. A long-running feud between Ugandan traders and Kenyan authorities over the auction of uncollected cargo at the Mombasa port has already been escalated to the EAC leadership amid claims of unfairness.

Uganda has accused Kenya of imposing a new non-tariff barrier by “selectively auctioning” Ugandan goods held at the port of Mombasa. READ: Ugandan traders on the spot over cargo pile-up at Mombasa port in a recent status update to the EAC on trade with Kenya, Uganda also raised concern over increased impounding of suspected counterfeit goods meant for its market at the port.

“Lengthy, restrictive and unclear administrative procedures of licensing Uganda-owned container freight stations and warehouses in Kenya are non-tariff barriers (NTBs),” Uganda said in its audit report. Teams from Uganda and Kenya in charge of eliminating NTBs are expected to deliberate and find a solution to the problem or have it referred to the bloc’s top decision organ, the Council of Ministers, for action.

Kenyan officials have been engaged in a long-running spat with Ugandan traders over uncollected cargo at the port. The facility has in recent years experienced congestion, which the Kenya Ports Authority attributed to a lack of space following delays by importers and clearing agents to promptly collect containers.

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