70.71 Transport is a new company in the transport industry setup in Kenya in 2007. The company offers transport services mainly at the Port of Mombasa, Kenya’s second largest city.
The Mombasa Container Terminal is managed by the Kenya Ports Authority (KPA) which since December 2006, has been inundated consistently by an upsurge of cargo arrivals to the tune of 40% compared to a similar period in 2006.
The pile-up of cargo has been composed mainly of imports occasioned by more shipping lines calling at the port and diversions from neighbouring ports, which have experienced vessel congestion. Since the start of 2007, three new shipping lines now dock into Mombasa. These are: China National Shipping Line, the Emirates Shipping Lines and Hull & Hatch Line.
This upsurge coupled with a poor off-take system made the port experience cargo congestion more conspicuous at the busy container terminal where import containers dominated. In the same period of December 2006 to June 2007, the growth in container numbers was around 30% thus the need to create space for further vessel discharges . It has been noted that over the past five years, cargo throughput at the port of Mombasa has risen by 40% or over 4million tons.
Remarkable increase has been on the side of containers whose throughput is now about 500,000 TEUs. In 2006 alone, the port handled a total of 14.4 million tonnes compared to the previous year when it handled a total of 13.2 million tonnes.
Private containers arriving at the port have a 7 days grace period at which point if they are not moved owners incur daily charges on the storage when expiry is reached. This occurs usually due to two key reasons, one, truck shortages and two, sub-standard trucks ill equiped to move inbound cargo. It is also important to note that most new trucks coming to Kenya serve the transit sector to haul cargo to the adjacent landlocked countries like Uganda, Rwanda, Burundi and now a new route to Southern Sudan.
In January 9, 2005 the Sudanese government agreed to give autonomy to the region in the Comprehensive Peace Agreement signed in Naivasha, Kenya, tentatively bringing an end to the Second Sudanese Civil War.
To help alleviate the crunch all over-stayed Kenyan bound containers are being moved to container freight stations (CFS) outside the port perimeter. To date two container freight stations have been nominated by KPA to take on this role. Recently, one of the largest logistics and transport services company on the African continent broke ground on for a new dry terminal to serve the Mombasa port.
Sources: Kenya Ports Authority Data