Tanzanian ports locking Kenya out of regional trade

[Geza Ulole]

Tanzanian ports locking Kenya out of regional trade
By Lee Mwiti
Published: Apr 13th 2018 at 22:26, Updated: April 13th 2018 at 22:26

Containers at the Port of Mombasa
SUMMARY

• Investment in Dar port, and the development of other ports in Tanga and Bagamoyo, has greatly shut out Mombasa port as the dominant trade hub in the region
• Neighbours in the hinterland such as Uganda and Rwanda are now preferring the Tanzanian ports as transit points

The vibrant expansion of Tanzania’s Dar es Salaam port and the Djibouti port are posing the biggest threat to the growth of Mombasa port, a new report says.

The 2018 Africa Ports report by audit firm PriceWaterHouseCoopeers (PWC) has noted that the Tanzania government’s determined investment in the Dar port, and the development of other ports in Tanga and Bagamoyo, has greatly shut out Mombasa port as the dominant trade hub in the region. As a result, neighbours in the hinterland such as Uganda and Rwanda are now preferring the Tanzanian ports as transit points for cargo.

ALSO READ: Rift Valley retain national athletics crown

Ethiopia, a country that is coming up strongly as an economic giant in the region, only crippled by its land-locked status, prefers the port of Djibouti.

“Mombasa would be a major contender to be an East African hub, only for the fact that it is greatly challenged by the proximity of the developing Dar-es-Salaam port and other Tanzanian ports. This makes it hard for Mombasa to emerge as an important hub,” the report reads in part.

“Though posing much of a less threat, Djiobuti’s growth can also not be under-estimated. Mombasa should take advantage of the larger hinterland it serves, and improve its operational efficiencies to shrug off these threats.”

The report also emphasises that for Kenya to regain its regional status as an economic powerhouse, which is being continually challenged by its neighbours, it has to be keen in developing its port infrastructure especially the Lamu port which is part of the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) Corridor.

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The corridor will connect the port of Lamu, with Sudan and Ethiopia through an 880-kilometre highway and a 1 710-kilometre railway.

ALSO READ: Teachers want share of Mark Too's property

The Lapsset Corridor Programme is East Africa’s largest and most ambitious infrastructure project consisting of seven key infrastructure projects.

According to the report, one of the major hurdles that is driving trade from the Mombasa port is the abnormally long container dwell time. Dwell time is the amount of time from when a container is offloaded until it leaves a port.

The dwell time at Mombasa port is one of the longest in Africa, taking up to 50 per cent of the total land transport time from port to the hinterland cities. “Reducing port dwell time is critical to improving logistics efficiency,” the report notes.

lmukunga@standardmedia.co.ke

RELATED TOPICS:
Dar es Salaam port
Djibouti port
PriceWaterHouseCoopeers

Tanzanian ports locking Kenya out of regional trade

 

[Geza Ulole]

Meanwhile seem another competition from Somaliland shortest route to the sea is on the rise...

• April 14, 2018
  Last updated less than one minute ago

SHIPPINGSomalia can’t interfere in DP World’s port deal: Somaliland minister
DP World Berbera benefiting local community, port official Esmail Mahmoud says

By Omar Shariff, Deputy GCC/Middle East Editor
15:51 April 2, 2018

The port’s annual capacity is 150,000 TEUs (containers); 15 million metric tonnes (general cargo, bulk and break bulk); and 4 million head (livestock).
Image Credit:Omar Shariff/Gulf News
Berbera (Somaliland): “Had you come a day earlier, you’d have seen us loading camels onto ships heading to the Middle East. Somalia as a whole has the world’s largest number of camels, at six million,” said Ali Esmail Mahmoud, Head of Operations at DP World Berbera, as he took visiting journalists on a tour of the port.

“Since DP World took over the running of the port, there have been many changes,” Mahmoud said. “We’ve added a lot of equipment. We’ve ordered three mobile harbour cranes. Six reach stakers have been added, with three more on the way, along with empty container handlers, mobile cranes, internal terminal vehicles and forklifts.”

He also said the port was using a new software, Sodiaz, which is also used in many other DP World ports.

“People were trained on the software outside the country, including in Thailand.”

In 2016, the Somaliland parliament voted in favour of granting DP World, the world’s fourth biggest port operator, a 30-year concession with an automatic 10-year extension for the management and development of the port at Berbera, in a move not recognised by the Federal Republic of Somalia.

2016
when DP World took over running of port in Berbera
As per the deal, DP World will invest $442 million (Dh1.62 billion) in the port, controlling a 51 per cent stake in the project while the Somaliland government will control 30 per cent.

As part of another deal announced last month, Ethiopia will become a 19 per cent stake holder in the port.

That deal was also bitterly opposed by the Somali government in Mogadishu.

Speaking to journalists, Somaliland’s Foreign Minister Dr Sa’ad Ali Shire said no one had the authority to interfere in a deal between Somaliland and DP World.

“This is an economic and commercial deal that will benefit everyone in the Horn of Africa region. Somalia’s claims are baseless, and don’t change anything on the ground.”

Somaliland is a self-declared independent republic that is not recognised by the international community but has all the trappings of a state, including its own parliament, judiciary, currency and armed forces. It also holds elections that are seen as being free and fair, and issues its own passports. The government of the region sees Somaliland as the successor state to the colonial-era British Protectorate of Somaliland. Somaliland is also far more politically and economically stable than Somalia.

The port provides jobs to 780 local people. And has clearly benefited the economy of the region; the construction sector has been given a fillip due to the planned expansions and improvements already made to the port. “Land in the area is also going up in value,” Mahmoud said. “The infrastructure in the region is improving and many companies are coming here to do business.”

The port’s annual capacity is 150,000 TEUs-twenty-foot equivalent units (container); 15 million MT (general cargo, bulk, ad break bulk); and 4 millon heads (livestock).

Land in the area is also going up in value. The infrastructure in the region is improving and many companies are coming here to do business”
- Ali Esmail Mahmoud | Head of Operations at DP World Berbera

DP World Berbera also provides assistance to the tune of $4800 a month to the nearby Berbera Maritime and Fisheries Academy, which was established in 2012 and has graduated 85 students, including 12 women. The port has also donated $770,181 in the past 12 months to educational institutions, mosques and hospitals in the region and built five water wells for the community.

Mahmoud added: “We are currently working on a three-phase basis: Phase zero, phase one, and phase two. As part of phase zero, we are developing the existing terminal. We’ve made many changes, including to infrastructure, electricity, training facilities etc. Phase one begins in five months, and is expected to be completed in 2020.


Somalia can’t interfere in DP World’s port deal: Somaliland minister

 

[Tony254]

Tanzanian ports locking Kenya out of regional trade
By Lee Mwiti
Published: Apr 13th 2018 at 22:26, Updated: April 13th 2018 at 22:26

Containers at the Port of Mombasa
SUMMARY

• Investment in Dar port, and the development of other ports in Tanga and Bagamoyo, has greatly shut out Mombasa port as the dominant trade hub in the region
• Neighbours in the hinterland such as Uganda and Rwanda are now preferring the Tanzanian ports as transit points

The vibrant expansion of Tanzania’s Dar es Salaam port and the Djibouti port are posing the biggest threat to the growth of Mombasa port, a new report says.

The 2018 Africa Ports report by audit firm PriceWaterHouseCoopeers (PWC) has noted that the Tanzania government’s determined investment in the Dar port, and the development of other ports in Tanga and Bagamoyo, has greatly shut out Mombasa port as the dominant trade hub in the region. As a result, neighbours in the hinterland such as Uganda and Rwanda are now preferring the Tanzanian ports as transit points for cargo.

ALSO READ: Rift Valley retain national athletics crown

Ethiopia, a country that is coming up strongly as an economic giant in the region, only crippled by its land-locked status, prefers the port of Djibouti.

“Mombasa would be a major contender to be an East African hub, only for the fact that it is greatly challenged by the proximity of the developing Dar-es-Salaam port and other Tanzanian ports. This makes it hard for Mombasa to emerge as an important hub,” the report reads in part.

“Though posing much of a less threat, Djiobuti’s growth can also not be under-estimated. Mombasa should take advantage of the larger hinterland it serves, and improve its operational efficiencies to shrug off these threats.”

The report also emphasises that for Kenya to regain its regional status as an economic powerhouse, which is being continually challenged by its neighbours, it has to be keen in developing its port infrastructure especially the Lamu port which is part of the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) Corridor.

Advertisement
Avoid fake news! Subscribe to the Standard SMS service and receive factual, verified breaking news as it happens. Text the word 'NEWS' to 22840
The corridor will connect the port of Lamu, with Sudan and Ethiopia through an 880-kilometre highway and a 1 710-kilometre railway.

ALSO READ: Teachers want share of Mark Too's property

The Lapsset Corridor Programme is East Africa’s largest and most ambitious infrastructure project consisting of seven key infrastructure projects.

According to the report, one of the major hurdles that is driving trade from the Mombasa port is the abnormally long container dwell time. Dwell time is the amount of time from when a container is offloaded until it leaves a port.

The dwell time at Mombasa port is one of the longest in Africa, taking up to 50 per cent of the total land transport time from port to the hinterland cities. “Reducing port dwell time is critical to improving logistics efficiency,” the report notes.

lmukunga@standardmedia.co.ke

RELATED TOPICS:
Dar es Salaam port
Djibouti port
PriceWaterHouseCoopeers

Tanzanian ports locking Kenya out of regional trade

Hahahahayaha uhuhuhu. This is a very wet dream. I will not wake you up

 

[pingli-nywee]

Hahahahayaha uhuhuhu. This is a very wet dream. I will not wake you up

Bagamoyo. Hahaha! 😀

 

[mulisaaa]

Sema nachojua kwa Ethiopia hawezi acha port ya Djibouti. Kaisha wekeza sana.

 

[Mkikuyu- Akili timamu]

Since tanga will be The Oil export port for uganda, Most likely uganda will abandon Mombasa and concentrate most of their import/export at tanga.
Rwanda is already shifted its base from mombasa and with Tz SGR, they will never use mombasa

 

[N'yadikwa]

Kenyans mostly have learnt to underrate Tz competition especially in areas where the former have had an influence in the region,I think they need to understand that Tz and Rwanda mushrooms faster than no body can tell hawa watawa outsmart kwenye dominance seat sio muda.Be on alert

 

[Geza Ulole]

Since tanga will be The Oil export port for uganda, Most likely uganda will abandon Mombasa and concentrate most of their import/export at tanga.
Rwanda is already shifted its base from mombasa and with Tz SGR, they will never use mombasa

That port capacity is already being tripped to handle over 2 mln tonnes of cargo. That's aside the oil terminal that will store all Uganda's n DRC Congo oil at first n later South Sudan's.

 

[Geza Ulole]

Sema nachojua kwa Ethiopia hawezi acha port ya Djibouti. Kaisha wekeza sana.

Lamu ni mbali kinoma toka Addis Ababa zaidi ya 1700km!

 

[Geza Ulole]

Musoma Port Expansion, Modernisation To Meet New Challenges

Submitted by, Faustine Rwambali, Tanzania

Musoma port on the shores of Lake Victoria, North East Tanzania is set for expansion and modernisation to meet new marine challenges and support the proposed new Tanga-Musoma railway. The Tanzania Ports Authority (TPA) is carrying out the project under the auspices of the East African Community infrastructure development. Though it is yet to be established the amount of money that would be needed for the project, reports have it that, Musoma port would follow after the same expansion and modernisation work that has been done at Port Bell, Uganda. For this project to take shape, ports like Mwanza (Tanzania), Bukoba (Tanzania),Kemondo Bay (Tanzania), Kisumu (Kenya) would also need to be expanded and modernised. Expansion of Musoma Port is vital for the envisaged Arusha-Musoma railway which is a project earmarked by the Tanzania government. Musoma Port would therefore support this new railway when it becomes a reality. Reports from TPA have it that, already TPA has acquired land in Musoma although some residents will need to be relocated. A stumbling block however has been a civil suit filed by one Musoma resident, a development that may delay the project. “A civil suit by one Musoma resident has retarded our speed over the project,” a TPA official has said.

http://www.railwaysafrica.com/news/musoma-port-expansion-modernisation-to-meet-new-challenges

 

[KichwaNgumu254]

Mombasa primarily serves Kenya's exports/imports and can purely revert to domestic service profitably if landlocked customers withdrew.
Nothing alarming for Mombasa unlike the Tz ports if all built would be rendered redundant if UG and the likes won't use them!

NB: As a watchdog of public interest,Kenya's media reports are chief provocateurs so that GoK pulls up its socks.That's the difference between KE and Tz. We critique,pock holes, provoke the authorities not to sleep on their laurels.
Tz guys should be quoting Kenyan media reports written by Kenyans with this in hindsight. Don't celebrate just yet!

 

[mwaswast]

Dar es salaam mpaka Moro bado mnaizindua?

 

[Geza Ulole]

Mombasa primarily serves Kenya's exports/imports and can purely revert to domestic service profitably if landlocked customers withdrew.
Nothing alarming for Mombasa unlike the Tz ports if all built would be rendered redundant if UG and the likes won't use them!

NB: As a watchdog of public interest,Kenya's media reports are chief provocateurs so that GoK pulls up its socks.That's the difference between KE and Tz. We critique,pock holes, provoke the authorities not to sleep on their laurels.
Tz guys should be quoting Kenyan media reports written by Kenyans with this in hindsight. Don't celebrate just yet!

Ripoti imeandikwa na PWC na si ur media.

 

[Kafrican]

Ripoti imeandikwa na PWC na si ur media.

Read the original report kabla ujiaibishe

 

[joto la jiwe]

I repeat my call, Uhuru Kenyatta must wake up now and join Museven and Kagame to associate him self with Magufuli, other wise Kenya economy will collapse.

 

[Geza Ulole]

Read the original report kabla ujiaibishe

umeelewa nn na hili?
"The 2018 Africa Ports report by audit firm PriceWaterHouseCoopeers (PWC) has noted that the Tanzania government’s determined investment in the Dar port, and the development of other ports in Tanga and Bagamoyo, has greatly shut out Mombasa port as the dominant trade hub in the region. As a result, neighbours in the hinterland such as Uganda and Rwanda are now preferring the Tanzanian ports as transit points for cargo."

 

[eliakeem]

I repeat my call, Uhuru Kenyatta must wake up now and join Museven and Kagame to associate him self with Magufuli, other wise Kenya economy will collapse.

Juzi kati alikuwa Msumbiji kupiga story. Teh teh teh. nashindwa kuelewa Msumbiji ina ports nyingi kuliko kenya, kuna beira, maputo... lkn huyu jamaa ameenda kuomba ushirikiano wa shipping kazi kweli kweli.

 

[Mkikuyu- Akili timamu]

Juzi kati alikuwa Msumbiji kupiga story. Teh teh teh. nashindwa kuelewa Msumbiji ina ports nyingi kuliko kenya, kuna beira, maputo... lkn huyu jamaa ameenda kuomba ushirikiano wa shipping kazi kweli kweli.

Uhuru kenyatta was supposed to be the director of Brookside dairy but his mother rejected the idea since he was a drunkard and lazy fellow. That job went to his younger bro Muhoho kenyatta

 

[thisdayes]

Uhuru kenyatta was supposed to be the director of Brookside dairy but his mother rejected the idea since he was a drunkard and lazy fellow. That job went to his younger bro Muhoho kenyatta

[emoji1] [emoji1] [emoji1] [emoji1] [emoji1] [emoji1] ... umenivunja mbavu

 

[eddy25r]

Uhuru kenyatta was supposed to be the director of Brookside dairy but his mother rejected the idea since he was a drunkard and lazy fellow. That job went to his younger bro Muhoho kenyatta

Shit..anything coming from your mouth is shit ..wacha ujinga geza