LAPSSET: Lamu Port and South Sudan Ethiopia Transport: News & Photos

LAPSSET: Lamu Port and South Sudan Ethiopia Transport: News & Photos

Geza Ulole alisema kwamba mizigo za Tanzania hazitawahi kutumia Lamu port kama transhipment hub. Sasa 50 TEUs kutoka Zanzibar zimewasili Lamu for export abroad. Sasa Geza sijui ulikuwa unapinga nini. Tulishasema kwamba Lamu port ndio itakuwa transhipment hub of East Africa. Zanzibar imeshaanza kutuma mizigo Lamu port. Tanzania itazidi kutumia Lamu port kama transhipment hub because it makes economic sense for ships to do so. They now don't need to go to Zanzibar or Dar, they can just go to Lamu which is closer to Asia and Europe than Dar or Zanzibar.

The first CMA CGM vessel to make a maiden call will dock in Lamu on July 4 from the former Soviet Union where it is expected to collect about 50 twenty-foot equivalent units from Zanzibar to Far West.



Najua utaignore hii message yangu lakini najua utakuwa umeipata.
 
construction of buildings and utilities at the lamu port
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This container shortage is a global problem. All ports are affected including Mombasa port.


Pandemic drives sea freight prices to record high​

Benoit Pelegrin with Jean Liou in Paris
Sun, July 4, 2021, 5:50 AM·3 min read
e30cc996cc91dd40dad0d1271ee5bf4f

Bottlenecks in the availability of shipping containers has helped drive transporation costs higher
Container shipping prices have reached record highs some 18 months after the outbreak of the coronavirus pandemic which disrupted maritime logistics chains and drove demand sky-high.
"We are basically running out of vessels and of empty containers," Alan Murphy, head of the consultancy Sea Intelligence, told AFP.
"There's been a massive shortage of empty containers, they are in the wrong place, they are stuck in ports and not in Asia ready to be loaded."

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The Freightos Baltic Index, a benchmark for major shipping routes, has more than tripled in a year to nearly $7,000 (5,900 euros) for a trip from China to the west coast of the United States.
A trip to Europe has exceeded $10,000, compared with just $1,600 at the same time last year.
Murphy said the unprecedented situation compounded the troubles of the last 10 years, which he said had been "really bad for the shipping lines".

Blighted by overcapacity in the sector, he said the firms "were losing money every time they were moving a container".
-'Unprecedented drop'-
The Covid-19 pandemic, which initially brought global shipping to a virtual standstill, did not bode well for the industry and led to "an unprecedented drop in demand", said Didier Rabattu, of Lombard Odier Investment Managers.
But this did not account for the trends among US and European consumers who during lockdown stopped spending in restaurants and theatres or going on holiday and instead used their money to purchase material goods -- many of them imported from Asia.
"Imagine how many televisions you can buy if you don't go skiing for a week with four people?" said Paul Tourret, director of France's Higher Institute of Maritime Economics (ISEMAR).
Disruptions to loading and unloading operations, from dockers falling ill and Covid restrictions to unforseen events like the shipping backlog caused the blockage of the Suez Canal in March, have only exacerbated the trend.
As a result, ship owners have never been in better shape.
The Marseille-based CMA CGM container and shipping company for example posted a net profit of more than $2 billion for the first quarter of 2021 alone, 40 times more than the previous year.
Its Danish competitor AP Moller-Maersk announced an even higher net profit of $2.7 billion for the first three months of the year -- 13 times what it saw last year.
-'Reached a peak'-
"It is true that ship owners are making a lot of money at the moment," Tourret said.
"But it is also a way for them to renew their fleets and accelerate their liquefied natural gas (LNG) programmes," he added.
CMA CGM placed an order in April for 22 container ships, more than half of which are LNG-powered.
Maritime transport is "one of the main emitters of sulphur dioxide", the French expert said, adding that although figures were favourable for each tonne transported, the sector nevertheless emitted levels of CO2 "comparable to Germany".
The price of container transport depends on the level of demand, but also on supply-side capacity to meet it.
"Whether or not shipowners decide to wage a trade war is a major factor," Tourret said.
"None of them has any interest in driving prices down. Their collective discipline today must be not to sell out," he added.
The situation could last, Tourret said, driven in part by the need to transport perishable goods.
"If you are carrying perishable goods that will be worth nothing if they don't move, how much are you prepared to pay?" he asked.
Jean-Marc Lacave, the executive officer of the body for France's maritime service professionals, Armateurs de France, said he did not expect things to return to normal before the first quarter of 2022.
"I think we have reached a peak," he said. "If demand continues to rise, there is a not insignificant risk that prices could rise again, but we are more or less at the top of the curve," he added.
 
People who were saying Ethiopia is not interested in Lamu port, what is this then? An entire minister of transport of Ethiopia talking about Lamu port.

 

Port users set for better services as EA states battle for dominance​



MONDAY JULY 05 2021​

Mombasa port.

Singapore flagged vessel MV NYK Clara docked at the port of Mombasa on June 25, 2021 on its way to Dar es Salaam after it made its maiden call. In this financial year, Kenya and Tanzania have put modernisation of ports at the top of the list of priority investments. PHOTO | FILE | NMG

Summary

  • An observer said the competition has seen most ports invest in different modes of transport but noted a need to embrace the Multimodal Transport Treaty, which allows the carriage of goods by at least two different modes of transport, to reduce congestion.


By JOINT REPORT
More by this Author

A quiet, yet vicious battle for the shipping business is under way in Eastern Africa with Tanzania, Kenya, Djibouti and Somalia as the protagonists.

Tanzania, home to the most ambitious port project in the region — the $10 billion Bagamoyo Port — has announced plans to revive it construction, potentially turning the tables on its competitors. The project features a special economic zone and industrial park that are billed to attract at least 700 business units and dominate the freight business along Africa’s Indian Ocean coastline, eclipsing Kenya’s equally ambitious Lamu port project.

At a meeting with the Tanzania National Business Council in Dar es Salaam recently, President Samia Suluhu disclosed that her government had revived discussions with the Chinese government with the aim of resuming negotiations over funding for the project. The negotiations were torpedoed by President John Magufuli in May 2019 over what he described as unfair investment conditions proposed by Beijing. The project was mooted by Magufuli’s predecessor Jakaya Kikwete and as one of his key legacy projects. Now hope is rife in Tanzania that the project will soon come to fruition.

But in the Horn, DP World, a United Arab Emirates ports operator, opened its upgraded container terminal at Berbera, the main seaport in the semi-independent Somalia state of Somaliland, putting Berbera in a head-to-head rivalry with the Port of Djibouti’s Doraleh Container Terminal for business from the Ethiopian market.

Coming at a time Kenya’s Lapsset anchor project, the Lamu Port, is still finding a footing as a transhipment hub, Nairobi is already rattled and is moving to shore up its business against the upcoming onslaught.

Such is the importance Nairobi and Dodoma have attached to this sector that in the current financial year they have put modernisation of ports at the top of the list of priority investments with increased budgets meant to enhance efficiency and increase throughput.

This battle of the ports has come at an opportune time for users, who are gearing up for improved services and competitive rates and a range of choices on which port to use. Shippers Council of Eastern Africa Chief Executive Gilbert Lagat said competition is working to their advantage.

Mr Lagat said the competition has seen most ports invest in different modes of transport but noted a need to embrace the Multimodal Transport Treaty, which allows the carriage of goods by at least two different modes of transport, to reduce congestion.

“To ensure cargo is delivered on time, we need to incorporate both road and rail in our transport system and, where possible, lakes. We cannot expect to decongest our ports to make them competitive if we depend on one mode to evacuate cargo from the port. But, with competition, we are seeing governments investing more in such infrastructure,” Mr Lagat said.

Revival of Bagamoyo port​

The announcement of the revival of the Bagamoyo port has excited players in the maritime business. Tanzania Private Sector Foundation said the port would ease pressure on the port of Dar es Salaam, which is fast running out of expansion space.

TPSF chairperson Angelina Ngalula said Bagamoyo is capable of hosting larger ships than Dar es Salaam due to its deeper waters while also having similar strategic links to the standard gauge railway now under construction across the Central Corridor as well as the Tanzania-Zambia Railway.

As Somaliland and Tanzania go for gold, Kenya is putting its money in the modernisation of Mombasa port, construction of the Dongo Kundu Special Economic Zone in Mombasa, operationalisation of the Lamu Port, and opening up corridors for cargo evacuation.

National Treasury Cabinet Secretary Ukur Yatani, while reading the $33 billion budget, allocated $69 million to the Mombasa port development programme. Part of the funds will go to the completion of the second container terminal at the Mombasa port, aiming to expand the capacity of the facility to handle more than 450,000 twenty-foot equivalent units (Teus) to meet the growing demand. Some $800,000 will be used for the development of a freeport and special economic zone in Mombasa as the construction of Dongo Kundu highway to connect Kenyan South Coast and Southern Tanzania through Lunga Lunga border is being done. The road is 75 per cent complete.

Projections in the Mombasa Port Strategic Plan show the port will handle 47 million tonnes in the next 10 years, from the current 34 million tonnes, and eventually 110 million tonnes in the late 2040s.

After the commissioning of the first berth at the Lamu port, Kenya has set aside $69 million for implementation of various projects in the Lamu Port South Sudan-Ethiopia Transport (Lapsset) Corridor. Already, the construction of Lamu-Garissa-Isiolo-Moyale road to connect with Ethiopia and that of Isiolo-Loruk-Lodwar-Lokichogio road, which will connect to South Sudan, have begun and are scheduled to be complete by end of the financial year. The two corridors will be an incentive to Ethiopia and South Sudan to start using Lamu port, which is currently doing transshipment.

Kenyan has announced incentives to encourage more shipping lines to use the Mombasa and Lamu ports as the gateway to the Eastern Africa region. These include exempting fuel supplied to shipping lines from import and excise duty, value added tax, railway development levy and import declaration fees.

In Tanzania, the Samia government unveiled a $15.7 billion budget, of which $1.3 billion has been allocated to flagship infrastructure projects in the 2021/2022 fiscal year. Finance minister Mwigulu Nchemba allocated funds to the ports of Dar es Salaam, Mtwara, Tanga and Bagamoyo.

At the Tanga port, the government is investing in dredging from four to 13 metres, installation of navigation equipment and completion of two deep-draft berths. On the Bagamoyo port, located about 75km north of Dar es Salaam, Tanzania in 2013 inked an agreement with China Merchants Holdings International to construct the facility and a special economic zone.

To woo users, Tanzania Shipping Agencies Corporation (Tasac) has already begun programmes which are part of the Tanzania Ports Authority to capture new markets and increase its throughput after heavy investment funded by the World Bank to expand port operations. From March, Tasac started clearing more products, including fertiliser, industrial and domestic sugar, edible or cooking oil, wheat, oil, liquefied petroleum gas and chemicals.

Dodoma seems to have begun reaping the benefits of the $345 million World Bank grant to the new Dar es Salaam Maritime Gateway Project, which has significantly improved its port business.


Kenya and Tanzania are competing to position their facilities as the preferred entry points to the region, particularly inland markets in landlocked nations like Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo.

The latest entrant in the race, Somaliland, aided by DP World, comes with a new container terminal with capacity for 500,000 Teus a year. The second phase is expected to increase the capacity to two million Teus a year.

The Berbera Economic Zone is meant to attract investment with an expanded port, economic zone and Berbera Corridor to transform the port city into an integrated maritime, industrial and logistics hub in the Horn of Africa.

The new container terminal with a deep draft of 17 metres, a quay of 400 metres and three ship-to-shore gantry cranes, can handle the largest container vessels in operation today, though it remains way below in annual throughput, compared with Mombasa.

As part of the Berbera plan, modelled on DP World’s Jebel Ali Free Zone in Dubai, the economic zone is linked to the port and strategically located along the Berbera Corridor.

If the new negotiations are fruitful, the Bagamoyo project will bolster Tanzania’s plans to expand its marine transport portfolio both in the Indian Ocean and the Great Lakes region. The port is expected to handle 20 million shipping containers annually by 2045, which would be 25 times the amount of cargo currently handled by the port of Dar es Salaam.

Some $58.3 million out of Tanzania’s budget for 2021/22 has been allocated to implement several marine transport projects in Lakes Victoria and Tanganyika aimed at raising the volume of cargo and passenger movements between Tanzania and neighbouring countries.

According to the Ministry of Works, a new ship with 600-passenger and 400- tonne cargo capacity is being built to ply Lake Tanganyika from Kigoma Port and boost trade with Rwanda, Burundi and the DRC alongside the 100-year-old, 70-metre-long MV Liemba, now undergoing rehabilitation.

Expansion galore​

Meanwhile, Dar es Salaam and the other key Indian Ocean ports, Tanga and Mtwara, are also being expanded, modernised and upgraded to increase their capacity to accommodate big ships.

Seven of the 11 berths at the 2,600-metre Port of Dar es Salaam are being expanded from 191 metres to 327 metres and in depth from eight to 15 metres. The Tanga port, which will be the exit point for Ugandan petroleum products through the up-and-coming East African Crude Oil Pipeline, is also being dredged from 3.5 metres to 15 metres and raise its cargo handling capacity to over one million tonnes per year.

Up to 90 percent of Tanzania’s international trade transactions depend on the port of Dar es Salaam. Uganda, Rwanda, Burundi and eastern DR Congo are the target destinations for cargo offloaded at the Dar and Tanga ports while Mtwara port handles cargo for Malawi, Zambia and Zimbabwe.

Rwanda is the leading EAC partner state using the Port of Dar es Salaam, with about one million tonnes of cargo recorded at the port per year, according to TPA figures. Burundi depends on the port for 99.2 percent of its international cargo while the figure for Rwanda is 86 percent, comprising both imports and exports.

In mid-June President Samia paid an inspection visit to the construction of the 3.2-kilometre Kigongo-Busisi bridge — the longest in East Africa— across the southern end of Lake Victoria and the 3,000-tonne MV Mwanza Hapa Kazi Tu cargo ship now being built to ply the lake.

Construction of the $308.88 million bridge is at 27 percent and is supposed to be complete in early 2024. It is being jointly built by the China Civil Engineering Construction Group (CCECG) and China Railway 15th Bureau, and will cut transportation time across the lake from 35 minutes by ferry to just four minutes.

The $38.72 million MV Mwanza Hapa Kazi Tu construction project is being handled by South Korean firms Gas-Entec and Kangnam and is scheduled for completion by December next year.

President Samia also inaugurated a $15.53 million slipway at the Mwanza South port that will facilitate further ship construction projects for Lake Victoria. She said the aim was to make Mwanza a major hub of marine business in the Great Lakes region once the SGR project is complete, considering its strategic positioning.


Tanzania already has two major ships serving all three countries that share Lake Victoria — MV Victoria with a carrying capacity of 1,200 passengers and 200 tonnes of cargo, and MV Butiama with the capacity to carry 200 passengers and 100 tonnes of cargo.

Report by Anthony Kitimo, Apolinari Tairo and Bob Karashani





MY TAKE
The report is biased and has delibaretly forgotten to mention the incoming wagon ferry ships for Lake Victoria and Lake Tanganyika! And cargo ship in Lake Victoria! Aside that 55% of cargo to DRC passes through Dar port! $1.3 bln for ports expansion and dreading at Tanga and Mtwara aside ships building, si mchezo! Kunyaland wametenga ngapi vieeele??
 
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