The Nation (Nairobi)
Gitonga Marete
30 September 2009
Nairobi — Poor infrastructure within the eastern and southern Africa countries remains the biggest challenge for trade development in the region.
President Mwai Kibaki has thus called on countries within the region to invest more resources in development and maintenance of the region's infrastructure in order to facilitate trade.
"The necessary policy measures should be put in place to ensure seamless flow of goods and services without non-tariff barriers...furthermore, it is the resolve of the member states that transport and trade facilitation be the vehicle for integration in the region," President Kibaki said on Wednesday.
The president made the remarks at the opening of a regional conference on Northern Corridor Transport and Trade Facilitation at the Whitesands Beach hotel where he was represented by Transport minister Chirau Ali Mwakwere.
The two-day conference brings together regional transport and port stakeholders within the East African Community and Southern Africa Development Community (SADC) with their trade block, the Common Market for East and Southern Africa (Comesa).
The president noted that since the establishment of the EAC in 1999, regional trade had increased by 30 per cent pointing out that improved infrastructure will facilitate more regional trade.
The challenge in most instances concerning road and rail network development in the region has been the tendency to spend long periods in negotiating projects rather than implementing them, according to Comesa secretary general Sindiso Ngwenya.
"The longer the time spent on negotiating for projects the more expensive it becomes when they are finally implemented," said Mr Ngwenya adding that when delays occur, factors of inflation come into play, resulting to increased costs.
Kenya and Uganda have for instance been engaged in a tussle with Rift Valley Railways over a 25-year concession on the development of a reliable rail network between Mombasa port and Kampala.
EAC secretary general Juma Mwapachu said that since Mombasa port serves several countries in the region, there was need to fast track the planned expansion of berths and construction of the second container terminal.
The Kenya Ports Authority (KPA) plans to convert berths 11 to 14 into container handling berths to increase capacity and construct the second container terminal - with assistance from the government of Japan - at a cost of Sh16 billion.
The two developments will see Mombasa port increase container handling capacity from the current 600,000 to 2.5 million.
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