Sh40bn Lamu port project complete

Construction of the Sh40 billion phase one of the second commercial port in Kenya at Lamu has been completed.

The second and third berths were completed this month allowing Kenya to float a tender to private companies to construct 20 more berths under Public-Private Partnership to complete the 23-berth facility.

Phase 1 of the project involved the construction of the first three berths and associated infrastructure, each with a depth of 17.5 metres and a length of 400 metres. The three berths are designed to handle container, general, and bulk cargo.

"The first three berths and yards at the Port of Lamu are now complete with plans to begin operations at berths 2 and 3 next year. KPA is acquiring modern equipment including three mobile harbour cranes and a ship to shore gantry cranes to complement operations at the Port," Kenya Ports Authority (KPA) said.

KPA has expressed optimism over the prospects of Lamu port emerging as the regional transshipment hub following the completion of the first phase which began in 2006.

The port which was being developed by China Communication Construction Company (CCCC) is crucial in addressing global logistical needs regionally apart from growing the country’s blue economic agenda.

In May, President Uhuru Kenyatta inaugurated the first berth at the port with most of the equipment including cranes, trailers, gantries, forklifts, spreaders, and oil spill response borrowed from Mombasa port.

 Since then, the lack of sufficient yard operation equipment has forced Lamu port to only attract ships that have their gear for operations, RO/RO (roll on/roll off) terminal and cruise terminal, and motor vehicle carriers.

Lamu port has so far handled nine vessels cumulatively since it was opened in May this year and a total of 1,619 twenty feet-equivalent units (TEUs) in its first berth.

KPA acting managing director John Mwangemi said discussions are underway with global shipping lines and potential investors to work on incentives that will make Lamu port a popular transshipment hub.

“The demand for global transshipment is there and our focus as KPA is to ensure that we continue to bring in modern equipment that will aid in enhancing turnaround time of cargo handling at the Lamu Port,”  he stated.

Mr Mwangemi further revealed that there are plans to bring in new ship to shore gantry equipment within the next three months, to enhance cargo handling at the Port.

"KPA would also acquire three (3) Ship to Shore (STS) gantry equipment and 18 rubber-tired gantry cranes in efforts to further modernise the Port," said the MD.

In September this year, KPA announced its intentions to borrow Sh15 billion to complete the construction of the first phase of Lamu port.

The KPA had put out an expression of interest seeking financing from local and international lenders for the operation of their first three berths.

KPA has provided a breakdown that shows Sh5 billion going towards the purchase of yard operations equipment, Sh4.5 billion towards general equipment, security, and ICT installation, Sh2.9 billion in completing the construction works, and Sh2.8 billion in marine equipment.