Nairobi — Finally, the Port of Mombasa will be joining the big league in the world when it starts handling the larger ships that are now taking over the shipping business. Currently, the port handles smaller ships that are slowly being phased out in favour of the larger ones called post Panamax, with bigger capacities.

Since many fleets around the world are converting to post Panamax ships with over 6,000 TEU (Twenty-foot Equivalent Units - shipping container), ports are also reassessing how they can fit in the cut-throat business. The expansion of the port of Mombasa could not therefore have come at a better time.

The port will now claim a niche in the maritime industry. Although port users will have to wait until 2013, when the first berth of the planned expansion is completed, a sigh of relief is slowly creeping in among the business community. The volume of trade is expected to increase tremendously once the project, with funding from the Japanese government is completed, a decade from now.

It is expected to address constant complaints from port users of major delays. The flow of containers was not in tandem with the increasing trade and demand for services. Although some shippers had threatened to go through the Port of Dar es Salaam in Tanzania, Mombasa still remained the favoured choice because of its location, technological advancement and bigger capacity.

But most importantly, the Kenya Ports Authority (KPA), which is currently serving as a feeder port, will have a new status with the expansion, which involves the construction of a second container terminal.

The allocation of Sh20 billion in this year's Budget by Finance Minister Amos Kimunya removes doubts about the Government's commitment to the expansion. The Japanese Government will spend Sh16.2 billion in form of a loan to Kenya, which is expected to pump in about Sh4 billion for the project. The KPA head of operations, Captain Twalib Khamis, said the project was a reality and that proper work on the terminal is set to start next year.

Enlarge channel

"The first berth is expected to be ready in five years, while the whole project will be finalised in 2020. It is a very big and complicated project that will begin with the enlargement of the 12 kilometre channel from Likoni (Kilindini wharf) to the end in Port Reitz.

"But the main terminal will be built in Port Reitz on land that will be reclaimed with soil from the dredged material," he said.

Once the work is complete, said Capt Khamis, the Port of Mombasa will be the hub for eastern Africa and the Eastern Indian Ocean region.

Some of the countries that will rely on the port for import and export of cargo are Uganda, Democratic Republic of Congo, Rwanda, Burundi and Kenya.

He said there was a big demand for services which had led to congestion of the port that currently handles between 400,000 and 450,000 containers a year.

This translates to a total of 15.9 million tonnes last year, a rise of more than 1.5 million tonnes or 10.5 per cent compared to 14.4 million tonnes handled in 2006.

"This would help decongest the port and increase the capacity of KPA to handle about 1 million containers per year.

"The project will have a big multiplier effect because it will open up the western part of Mombasa, mainly in Changamwe through the expansion of the road network," said the captain.

Port users have welcomed the move, saying it would increase the volume of trade and decongest the port.

But they are also cautious, saying they hoped the project was a reality and not the usual talk from the Government.

Mr Evans Ochieng, the proprietor of Tohel Agencies, a clearing and forwarding company mainly dealing in the import of cars, supported the expansion plan saying it would minimise delays at the Port.

"It's a wise idea that is long overdue but we hope we will also be able to deal directly with the port instead of going through Container Freight Stations (CFSs) as this is the only way delays can be dealt with," he said.

Mr Ochieng said currently, the cost of doing business through the port was very high because of the steep charges they incurred through delays in clearing their goods when they pass through the CFSs.

He said it was different when they dealt directly with the port and suggested that the old system be reinvented to have a one-stop operation system.

"Car importers for instance, have to contend with the delays because most CFSs do not have the capacity to clear goods fast enough and therefore, forcing us to go beyond the requisite 10 days for goods to stay at a station before starting to pay extra storage charges.

Expecting relief

"The system of dealing with CFSs ... started about two years ago and is inconveniencing us and that is why if the expansion project is realised, we will be expecting some relief," said Mr Ochieng.

Kenya International Freight and Warehousing Association (Kifwa) Mombasa branch chairman Peter Otieno said the Kenyan economy was bound to take forward strides once the modernisation project was complete.

He said employment would be created because there would be extra cargo to be handled.

"It is also likely that Mombasa will not only be a handling port but a transshipment hub because the port would handle bigger vessels that currently do not call at Mombasa Port," he said.