PORT PERFORMANCE FOR YEAR 2008
Despite the global recession coupled with other challenges that prevailed in 2008 and adversely affected shipping,economic performance in the country and the region’s competitiveness,the Port of Mombasa recorded improved operational performance and an increase in Port throughput.
The port throughput grew by 2.8 per cent from 15.96 million tons on 2007 to 16.41 million tons in 2008. This was largely attributed to efficiency gains arising from the modernization of equipment and business process re-engineering.
Container traffic grew by 5.2 per cent from 585,367 Twenty-Foot Equivalent Units (TEUs) in 2007 to 615,733 TEUs in 2008. This growth rate is however lower than the 22.1 per cent growth witnessed in 2007. The slowdown in growth of container traffic was a result of a sluggish economic performance occasioned by the post-elections skirmishes experienced early in the year and the current global economic downturn.
Transit traffic registered remarkable growth of 10.2%,from 4.4 million tons in 2007 to 4.87million tons in 2008. Individual transit countries have also increased their usage of the port of Mombasa. Uganda maintained her lead with a 75.9% of the transit market share with the port handling 3.7million tons of Ugandan cargo in 2008 up from 3.4million tons handled in 2007,representing a growth of 8.9 per cent.
The D.R. Congo was in the second position registering an impressive 18.4% growth from 257,000tons in 2007 to 304,400tons in 2008. The rest of the countries also registered marginal increase in their usage of the port.
However,on non-container sector,the negative economic impact was also felt with liquid bulk trade decreasing slightly by 0.2 percent from 5.64 million tons in 2007 to 5.63 million tons in 2008. Transshipment traffic equally took a slight drop of 1.6% as a result of the post-election disruptions early in the year that led to unprecedented congestion necessitating a temporary freeze in handling transshipment.
Moderate growth rates were recorded in dry bulk and conventional cargo,with the Asian continent accounting for the largest growth in trade volume.
We received a new shipping line,Rais Shipping Services,bringing the total to twenty two global shipping line serving the port. The new line is likely to increase the long traditional trade between the East Coast of Africa and Asia.
Way forward
To address forecast growth in container traffic,a contract on project design and supervision consultancy for the second container terminal was awarded to Japan Port Consultants during the year. The new terminal will handle 1.2m TEUs. The project is funded jointly by the Japan Bank for International Cooperation and the Government of Kenya.
The design work to dredge the channel up to 15 meters draft and to widen the turning basins has been completed and is at tendering level. This,upon completion,will accommodate the new generation of bigger vessels and increase the port’s competitiveness,in light of the dynamic global shipping trends.
The Liquefied Petroleum Gas (LPG) import terminal design work is in the final stages and the project is awaiting NEMA’s(National Environmental Management Authority) approval to commence. The facility,once completed,will accommodate tankers of up to 27,000 DWT and handle about 600,000 metric tons of LPG per year.
The implementation of the Kilindini Waterfront Operating System (KWATOS) on 1st July 2008 is one of the key goals toward achieving ambitions to be among the best efficient ports in the world. The system has been interfaced with Kenya Revenue Authority‘s Simba System and port users have begun to enjoy its benefits.
The final phase of the port-ICT strategy will be the implementation of the Port Community Based System which will transform Mombasa into an e-port by 2010. The project will provide a common platform for sharing shipping information and result in faster cargo clearance and improve overall port efficiency.
During the year,the port introduced delivery of cargo on a 24/7 basis. This has improved cargo deliveries,reduced congestion,enhanced ship turnaround and overall port performance.
We have enhanced safety practices and security in the port by enforcing the existing and introducing new safety regulations,in line with the requirements of the International Ship and Port facility Code (ISPS) Code. All persons entering our operational areas are now required to wear safety boots,a reflection jacket and a helmet,while truck speeds are monitored.
Further,port security has been improved through the construction of the control tower. The Tower is now being fitted with modern maritime communication equipment including the Vessel Traffic Management System (VTMS) aimed at monitoring movement of vessels within the habouor,Global Maritime Distress Signaling System (GMDSS) and Closed Circuit Television for monitoring goings on in the port and its surroundings. This program is carried under the Integrated Security System (ISS) project funded by the World Bank.
In order to provide quality services to our customers in tandem with our customer charter,the Authority has put in place an elaborate equipment acquisition program. Plans are underway to purchase one pilot boat,two Ship-to-Shore Gantry cranes,eight Rubber Tyred Gantry cranes five Reachstackers and one mobile harbour crane. This equipment will boost our marine and cargo handling operations.
We have also involved the private sector in the handling of cargo to improve on our efficiency by appointing some Container Freight Stations (CFSs) who now receive cargo directly from the ship. This has reduced cargo dwell time in the port,checked congestion and has enhanced our yard planning. For the last two month our yard container population has been averaging 9000 TEUs against our container yard capacity of 14,500 TEUs at any given time.
On the other hand,the Port Master Plan is being reviewed to facilitate the development of the port in line with the country’s National Vision 2030.
Office of the Managing Director
Mombasa
8th April 2009