- Mombasa has in recent years faced stiff competition from Dar es Salaam which has taken a sizable portion of transit business from the Northern Corridor.
- Uganda is the biggest destination for transit cargo through the Port of Mombasa, accounting for about 83.2 per cent of transit cargo through the Kenyan port.
- South Sudan takes up 9.9 per cent while DR Congo, Tanzania and Rwanda account for 7.2 per cent, 3.2 per cent and 2.4 per cent, respectively.
Kenya’s Mombasa port has for years remained the leading harbour in East Africa, serving traders in the country and neighbouring landlocked states. Uganda is the biggest destination for transit cargo through the Port of Mombasa, accounting for about 83.2 per cent of transit cargo through the Kenyan port. South Sudan takes up 9.9 per cent while DR Congo, Tanzania and Rwanda account for 7.2 per cent, 3.2 per cent and 2.4 per cent, respectively.
The East African region landlocked countries have access to ports through two main corridors. The main one is the 1,700-kilometre-long Northern Corridor that runs between Mombasa (Kenya), Uganda Rwanda, Burundi and Eastern DRC.
A second corridor also serves landlocked countries in the East African Community (EAC). The 1,300-kilometre-long Central Corridor runs from the Port of Dar es Salaam in Tanzania into Rwanda, Burundi, Uganda and Eastern D.R. Congo. While the landlocked countries mainly Uganda, have the option to use Dar es Salaam Port, it has remained the biggest destination for transit cargo through Mombasa.
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The Mombasa Port facing competition
According to the Shippers Council of Eastern Africa (SCEA), the port of Mombasa used to command up to 70 per cent of business. However, the port of Mombasa has recently faced stiff competition from Dar es Salaam Port, which has taken a sizable portion of transit business from the Northern Corridor.
“This has however gone down to 60 per cent in the last two years. It has lost to Dar es Salaam,” SCEA chief executive Gilbert Lang’at said.
Last year, cargo through the Mombasa port dropped amid growing competition from Dar es Salaam. According to the Kenya Economic Survey 2023, the number of ships that docked at the Port of Mombasa decreased by 4.5 per cent to 1,561, from 1,635 in 2021.
This came with a slight drop in volumes of cargo handled through, which fell by 1.9 per cent to 33.9 million metric tonnes, from 34.6 million tonnes in 2021, despite container traffic increasing marginally to 1.45 million TEUs. During the year under review, import traffic declined by 2.3 per cent from 27.3 million in 2021 to 26.7 million tonnes.
Berbera in Somaliland, Dar es Salaam and Maputo in Mozambique are some of the harbours that are in the push for trade volumes along East Africa’s Swahili Coast. Tanzania, Somaliland and Mozambique are investing heavily in expanding and rehabilitating existing ports, as they roll out newer facilities in a race to become the most preferred trade gateways in the wider East Africa and Central Africa.
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Competitive advantage
While Mombasa has equally invested heavily in its equipment and space, including the Second-Container Terminal which has increased the annual capacity to 2.1 million TEUs, as it remains under pressure from neoughbouring ports.
Dar es Salaam has been attracting traders due to its low charges and longer storage period. At Dar, traders enjoy up to 30 days of free storage giving them ample time to clear before goods start attracting penalties. Dubai -based Emirati multinational logistics company, DP World is keen to manage seven berths at the Dar es Salaam.
The government hopes the move will help improve efficiency, with DP World helping triple revenues from the facility to about $11.2 billion over the next decade. It is projected the deal could double cargo traffic to more than 47.57 million tonnes by 2032.
Dar es Salaam has the capacity to handle up to 14.1 million tonnes of dry cargo and six million tonnes of bulk, liquid cargo. It handles about 95 percent of the country’s international trade and serves six landlocked countries. These are Uganda, DR Congo, Burundi, Rwanda, Zambia, Malawi and Zimbabwe.
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Kenya Ports Authority’s strategy
Kenya Ports Authority has increased the free storage period for cargo at Mombasa and Inland Container Depots (ICDs), in what is seen as a strategy to lure traders who would opt for Dar.
Transit containers at Mombasa now enjoy up to 15 days of free storage, up from nine, the same to those at the Nairobi ICD. Those transiting through the Naivasha ICD have up to 30 days of free storage before they start attracting charges.
Moreover, KPA has also made adjustments for the charges on containers that overstay the free period, in what is seen to favour importers and exporters. KPA charges $30 per day for a 20-foot container and $60 for a 40-foot staying between 16 and 21 days after the free period. Those that stay over 21 days after free storage will be charged $45 and $90 for 20-foot and 40-foot, respectively.
“The applicable storage charges from the 31st day for containers handled at the ICD Naivasha remain as $16 and $24 for 20’ and 40’, respectively,” KPA said.
Regional marketing
Meanwhile, KPA in collaboration with port stakeholders has embarked on an aggressive marketing campaign in the region to retain customers and attract new potential port users. The authority has set up collaboration offices in key markets of Uganda, DR Congo and Rwanda, with a strong presence in Burundi and South Sudan.
Kenya hopes to ride on efficiency to remain a leading port facility in the region. Meanwhile, the country is banking on the new $282 million Kipevu Oil Terminal to grow petroleum products exports. The new terminal has a capacity to accommodate four ships concurrently with a capacity of 200,000 tonnes each. It has a dedicated line for handling Liquefied Petroleum Gas (LPG).
The government also remains keen on reducing multiple road user charges. Plans also remain underway to address cross-border charges and other Non-Tariff Barriers (NTBs) to make the Northern Corridor more attractive.
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The Lamu Port
While Mombasa remains Kenya’s main harbor, the country has invested in a second major seaport in the Northern coastal region of Lamu, neighbouring Somalia. The Lamu Port will have 32 berths with the government having put up the first three at a cost of $282.9 million. It is part of the wider $17.7 billion Lamu Port-Southern Sudan-Ethiopia Transport (Lapsset) corridor initiated 11 years ago.
Last month, transport and infrastructure ministers from Kenya, Ethiopia and South Sudan agreed to expedite the implantation of the project. The then Kenyan President (late) Mwai Kibaki, late Ethiopian Prime Minister Meles Zenawi, and South Sudan’s President Salva Kiir launched the Lapsset project on March 2, 2012.
Lapsset also incorporates the construction of an oil refinery, three airports including the expansion of Manda airstrip in Lamu, and resort cities in Lamu, Isiolo and Lake Turkana shores. The port, positioned to become a transshipment hub has a bigger vessel handling capacity than Mombasa.
The Lamu Port has 400-metre-long berths compared to Mombasa’s 300 meters average while the depth is up to minus 17.5 meters, compared to 15 meters at the Port of Mombasa. Moreover, the port has the capacity to handle ships with a carrying capacity of up to 12,000 TEUs, compared to the 8,000 to 10,000 TEUs carrying capacity vessels that are calling at the Port of Mombasa.
Lapsset Project was in June 2015 endorsed as a Presidential Infrastructure Champion Initiative Project during an AU-Heads of State and Government Orientation Committee meeting in Johannesburg, South Africa.
“We agreed to expedite the implementation of the Lapsset projects to unlock the full potential of the Lamu Port,” Kenya’s Roads and Transport CS Kipchumba Murkomen said.
Ethiopia and South Sudan have committed to the project.
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