4 November 2009
Nairobi — Kenya will start importing crude oil using large tankers with a capacity of a million barrels upon completion of dredging the navigation channel at the Port of Mombasa.
Petroleum Institute of East Africa (PIEA) said the government's Sh16 billion Mombasa port expansion plan entailing ocean floor dredging will allow large tankers to dock.
PIEA chairman Felix Majekodunmi said the country will reap from economies of scale as it is cheaper to hire a big tanker to ferry a large quantity of crude oil and imported refined petroleum products.
He said dredging will reduce freight costs considerably as Kenya currently spends a lot of money to import crude oil and refined fuel using small vessels ferrying a maximum of 80,000 metric tonnes.
Kenya Ports Authority has submitted to the National Environment Management Authority (Nema) an environmental impact assessment study report on dredging works aimed at accommodating new generation bigger vessels to increase Mombasa's competitiveness.
Speaking during PIEA's annual dinner on Monday Mr Majekodunmi said the industry recognises the government's initiatives to expand the port, set up strategic fuel reserves and enhance capacity of oil products pipeline.
Director general Vision 2030 Mugo Kibati who was he guest speaker, said availability of affordable oil products and other sources of energy is critical for Kenya to attain the industrialisation status articulated in the blueprint.
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