REMARKS BY THE ACTING MANAGING DIRECTOR AMB.
JOHN MWANGEMI DURING THE KPA CORPORATE GOLF TOURNAMENT ON 2OTH NOVEMBER 2021 AT
THE MOMBASA GOLF CLUB
Distinguished
Golfers and Stakeholders,
Good
evening,
I am
pleased to welcome you all to the KPA Corporate Golf gala dinner which is a climax
of the golf tournament that we have all enjoyed during the day.
It
is my hope that the game has been fulfilling for all the golfers whether
playing their first rounds, making their first par, birdie, eagle or hole in
one, and that ultimately you managed to improve on individual handicap.
By
now you must have appreciated the importance we attach to this annual corporate
calendar activity given our commitment and consistence in keeping up with the
schedules. We are equally grateful for your continued participation and support
since the inception of this tournament over a decade ago.
Earlier
in the year, we met and engaged with our stakeholders through the Machakos and
Nairobi golf tournament chapters which we hosted in February and August
respectively. I take this early opportunity to specifically thank golfers from
Mombasa golf club for attending in large numbers in all the tournaments we have
held within and outside Mombasa County. We are therefore pleased to close the year with you
by holding the tournament here and have the opportunity to closely listen and
engage in the hope of further improving our business relations for mutual
benefit.
Ladies
and Gentlemen,
The
future of shipping
Although,
we are here primarily for a sports function, allow me to spend a few minutes
and share business updates in the ports and shipping industries, knowing that some
of you are also users of our ports.
It is paramount to pay attention to learning
and understanding emerging global trends and how they impact various
industries. This is especially crucial as it exposes the strengths, weaknesses
and even opportunities available that organizations can leverage on to improve
product, service quality and sustain profitability.
Trends
in the Shipping and Maritime industry keep changing in tandem with the dynamics
in technological transformations and environmental sustainability concerns.
For
example, improvements in ship technology, structure and materials will lead to
the building of even bigger megaships, particularly within the container
shipping industry. Recently MV Ever Ace, took the slot as a supersize container
ship in the world with a length of 400m and 61.5m width and a carrying capacity
of 23,992 containers. As impressive as this is, the record is not going to
last.
In
the same breath, companies are now manufacturing eco-friendly vessels to cut on
carbon emissions and reduce on greenhouse gases which is becoming an
existential threat to the survival of our planet.
All
these trends point to an industry that is constantly evolving and bringing to
the fore either exciting new opportunities or complex challenges which force organizations
like KPA to look inward and gauge their position in relation to these
developments.
Ladies
and Gentlemen,
Port
Projects.
I
cite these trends to demonstrate to you that KPA is alive to these developments
and has been working towards making appropriate investments aimed at
modernizing and expanding capacity well ahead of demand specifically in line
with these developments.
Construction
of Second Container Terminal (CT2) Phase II
Accordingly,
we have made substantive progress in constructing the second Container
Terminal. Phase one has been operational since 2016. Phase two is ongoing and
shall be ready by Mid-2022. Once ready, the container capacity of the Port of
Mombasa shall grow from 1.65 million TEUs to 2.2 million TEUs.
Relocation
of Kipevu Oil Terminal (KOT)
In
regard to supporting the energy sector, we have progressed significantly in
construction of a bigger and modern oil terminal. The new KOT will have
facilities for off-loading crude oil, refined petroleum, and Liquid Petroleum Gas(LPG).
Upon completion by end of this year, the Authority will have a terminal
consisting of four berths capable of berthing four vessels of up to 170,000
DWTs at ago, to benefit from economies of scale, and reduction of demurrage.
Port
of Lamu
Equally,
we have progressed construction of Kenya’s second commercial Port in Lamu. The
construction of the first 3 berths and yard is complete. The first berth was
operationalized on May 20,2021 and has so far received eight vessels. We have
plans underway to procure additional state of the art equipment to ensure
efficient delivery of services is sustained. I am also pleased to note that the
Lamu-witu-Garsen road is complete and will play a key role in serving the Port.
Expansion
of Kipevu Road
Efficient
cargo evacuation from the Port is paramount in improving terminal fluidity and
truck turnround time. Accordingly and with support from one of our development
partners - Trademark East Africa (TMEA), the Authority completed the
construction of a 2-way dual carriage Kipevu Road from Changamwe roundabout to
Gate 18. The road will improve the flow of traffic into and out of the port.
Kisumu
Port
As
you know KPA’s mandate now covers management of both scheduled sea and inland
waterways ports. In this regard, we have rehabilitated Kisumu Port and so far,
we have witnessed increased business between Kenya and its neighbours via the
lake. Mv Uhuru makes an average of 10 trips per month ferrying fuel from Kisumu
to Uganda. Other vessels have also increased their voyages ferrying commodities
such as fertilizer and cement among others to Mwanza and Port Bell.
We
are now focusing on phase II of the project which is redevelopment of the other
ports along Lake Victoria such as Mbita to enhance business within the region and
promote regional integration.
Ladies
and Gentlemen,
Port
Performance
Just
like the rest of the world, our region has experienced economic downturns
caused by the COVID-19 pandemic which adversely affected shipping last year.
This led to reduced cargo demand and supply due to lockdowns and grounded
vessels hence a decline in port throughput in 2020. Total cargo throughput
declined marginally by 0.9 percent while Container traffic reduced by 4.0
percent, in 2020.
However,
notable resilience has been observed this year.
In January – September 2021 period, the Port handled 26.17 million
tons compared to 25.05 million tons in the corresponding period in 2020.
This is an increase of 1.12 million tons translating to a growth of 4.4
percent. In the same period, the
port witnessed increased volumes in container traffic registering 1.1million
TEUs against 1million TEUs recorded in a similar period in 2020,
translating to an increase of 9.3 percent.
Ladies
and Gentlemen,
Conclusion
We
remain optimistic that as the year comes to a close, the port will continue
handling more cargo to further increase the positive performance and for this
to happen, we rely on your support and goodwill as our key stakeholders.
Finally,
allow me to congratulate the winners and also all those of you who participated
in the tournament. To Mombasa Golf Club, we thank you for your hospitality and
I am confident that the participants have equally enjoyed your warm gesture and
appreciated the splendor of the fairways that you work so hard to maintain.
Asanteni
Sana and God Bless you.