Freight to benefit from African battle of the ports
It’s a battle of the sea ports in East Africa, as Mombasa port in Kenya begins a $13 billion expansion to deal with competition from neighbouring Tanzania.
Mombasa in Kenya, East Africa’s biggest sea port, is expanding railways and building new mooring berths for boats to tackle a problem with congestion, which is seeing the port struggle to cope with the ever increasing traffic.
It has been reported that Mombasa is losing market share in the region to Tanzania as railways and roads cannot cope and the neighboring country steps up its own game with the construction of a $11 billion port in the small East Tanzanian town of Bagamoyo, which Tanzanian authorities announced would go ahead after signing a deal with Chinese investors.
It is believed that years of underinvestment has caused the problem.
A plan to construct a $13 billion railway project is being lead by the President of Kenya Uhuru Kenyatta.
The railway will link Mombasa to the capitals of Uganda and Rwanda.
The Kenya Ports Authority will next week open a nineteenth docking station and will invest $320 million in three more at a new container terminal. This is will more than double capacity to 2.3 million containers and is the biggest upgrade to the port since 1980.
The government is also building a new facility at Lamu, on Lamu Island in the north east of Kenya.
A Kenya Ports Authority statement in April detailed its aim to “expand container handling capacity of the port of Mombasa in order to match future trends, stay competitive in cargo handling and facilitate economic development in the Eastern and Central Africa region.”
The improvements will make Mombasa more attractive to international companies, and will challenge the Bagamoyo port.
It is feared by Kenyans that this Bagamoyo will make Tanzania the biggest hitter in terms of sea ports. Kenya for a long while has been the main port of call but now a battle is raging to create that can meet the rising economic demand.
Kuehne+Nagel cuts carbon footprint by 70% for Honda China
Around 16,000 tonnes of CO2 has been cut from the supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel.
The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018.
KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management.
"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive.
After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected to eradicate 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total.
"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”
Kuehne+Nagel’s Net Zero Carbon programme
Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners.
Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”.
As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030.