Freight to benefit from African battle of the ports

By Freddie Pierce
Follow @JosephWilkesWDM Its a battle of the sea ports in East Africa, as Mombasa port in Kenya begins a $13 billion expansion to deal with competition...

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.

Mombasa harbour serves the land-locked nations of Uganda, Rwanda, the Democratic Republic of Congo and South Sudan, which make up some of the fastest-growing economies in the world.

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.

Share

Featured Articles

No going back on e-commerce - FedEx Express AMEA CEO

FedEx Express survey shows that SMEs and consumers in AMEA region feel there’s room for further growth in the already booming e-commerce market

Behavioural science 'key to procurement change' - Loseby

David Loseby of Suppeco tells the Supply Chain Digital show why behavioural science has a vital role to play in procurement digital transformation

Walgreens CPO Jim Townsend to speak at Procurement LIVE

Walgreens Boots Alliance Chief Procurement Officer Jim Townsend will be speaking at Procurement & Supply Chain LIVE London on 13 October

Managing risk 'crucial' - Gartner Supply Chain Symposium

Supply Chain Risk Management

Air cargo resilience is focus of World Cargo Symposium

Logistics

Sustainability measurements lacking, says EY survey

Sustainability