Port boost as new Sh32bn terminal begins operations

Mombasa port is to underline its position as the gateway to East Africa as operations at the new Sh32 billion Container Terminal 2 started Tuesday following the successful docking of the first ship.

It brings an additional capacity of 450,000 containers, which will increase the port’s cargo handling volume from 1.42 million to 1.732 million.

It is part of the Mombasa Port Development Programme designed to accommodate larger vessels, giving it a competitive edge over Dar es Salaam and Djibouti ports.

Mombasa is the preferred entry point for landlocked countries such as Uganda, South Sudan, Rwanda, Burundi and the Democratic Republic of Congo. The Kenya Ports Authority (KPA) took control of Berth 22 – which is 300 metres wide – from the Toyo Construction Company last week.

MV Jamaica, which operates under the Asia East Africa Kenya Service (ASEA service) that links the region with the Far East, became the first ship to dock at the terminal.

Construction of Berth 23

KPA acting managing director John Mwangemi said the completion of the berth will pave the way for the construction of Berth 23.

“Our engineers and the marine team successfully docked a 264-metre-long ship using two tugboats and two mooring vessels. It is discharging 2,704 containers and loading 3,738 for export cargo carrying agricultural products and minerals ores from East Africa,” he said.

“The terminal will have three berths with lengths of 230, 320 and 350 metres. They will handle panamax container ships of 20,000 deadweight tonnage and post-panamax vessels of 60,000,” he added.

It is estimated that the port will handle 47 million tonnes in the next 10 years from the current 30 million and 111 million by 2047.

KPA has procured multipurpose salvage tugboats and three ship-to-shore gantry cranes at Sh2.89 billion for use at the new terminal to boost efficiency and bulk handling activities.

Agreement with Jica

In 2017, Kenya signed an agreement with the Japan International Cooperation Agency (Jica) for a loan of Sh32 billion for construction of Phase II of the second container terminal. Toyo commenced work in September 2018.

The Jica loan was taken within the Special Terms for Economic Partnership (Step) at an interest rate of 0.2 per cent and a repayment period of 40 years with a 10-year grace period. One of the conditions for funding was that it would be managed privately.

The bidding firms that sought to manage the terminal included Hutchison Ports Investments, DP World, PSA International, China Merchants Holdings and SSA Port Terminal.

The Mediterranean Shipping Company (MSC), through the Kenya National Shipping Line (KNSL), was picked to run the terminal. KPA, MSC and KNSL made requests at the Common Market for Eastern and Southern Africa (Comesa) Competition Commission. The transaction would give MSC and KPA joint control of KNSL.