OPENING REMARKS BY THE KENYA PORTS AUTHORITY MANAGING DIRECTOR, CATHERINE MTURI-WAIRI, DURING THE STAKEHOLDERS LUNCHEON HELD AT RADISSON BLU HOTEL IN NAIROBI ON 13th SEPTEMBER 2017
- Cabinet Secretary Ministry of Transport, Infrastructure, Housing and Urban Development, Mr. James Macharia, EGH
- Principal Secretary State Department of Transport, Ministry of Transport, Infrastructure, Housing and Urban Development, Prof. Paul Maringa Mwangi (PhD), CBS
- KPA Board Chairman, Major (RTD) Hon. Marsden Madoka, EGH
- KPA Board of Directors and Management present
- Distinguished stakeholders,
- Invited guests,
- Our friends from the Media,
- Ladies and Gentlemen,
On behalf of the staff and Management of KPA, I warmly welcome you to this year's business luncheon. Also, allow me to convey a special appreciation to the Cabinet Secretary Ministry of Transport, Infrastructure, Housing and Urban Development, Mr. James Macharia, for once again accepting to join us as the Chief Guest.
We cherish our interactions with you our stakeholders as they provide an opportunity to dialogue and network.
Ladies and Gentlemen, to quote an American physician and poet:
"To reach a port we must sail, sometimes with the wind, and sometimes against it. But we must not drift or lie at anchor".
Seventeen years ago, the KPA Management decided to lift the anchor, move towards closer cooperation with port users especially on matters of mutual interest.
We introduced the idea of holding operational meetings with major port users every Friday at the KPA Headquarters, as well as an annual luncheon and a dinner for all stakeholders in Nairobi and Mombasa, respectively. If there is any initiative that has played a pivotal role in informing and guiding our decisions, it is the consistent hosting of these weekly and annual stakeholder engagements. You have walked, and continue to walk with us on this journey, and we want to sincerely say Asante sana for the unwavering support and insightful feedback.
Ladies and Gentlemen,
Twelve months have gone by since we met in such forum to share mutual progress recorded at the Port of Mombasa. Today, we shall share the latest developments, challenges and plans. Certainly, it has been an intensive, but very exciting half year for us at the Port. Before I invite our Chairman who will in turn welcome the Hon. Cabinet Secretary, let me indulge you with some of the data which will give you a view of how we have fared in 2016 and the first half of this year:
Port Performance 2016
In 2016, we handled a total of 27.36 million tons of cargo up from 26.73 million tons handled in 2015, realizing a favorable growth of 2.4 percent.
Container traffic alone recorded an increase of 15,253 TEUs from 1.076 million TEUs handled in 2015 to 1.091 million TEUs in 2016.
Port Performance January to July 2017
Performance in the first seven months of this year has also been promising as we have continued to witness an overall positive growth compared to last year's corresponding period. From January to July 2017, the Port handled a total of 17.52 million tons up from 15.66 million tons registered in the corresponding period of 2016, reflecting an increase of 1,865,436 tons or 11.9 percent.
In Container traffic, we registered an increase of 66,806 TEUs or 10.7 percent, after registering 689,593 TEUs in 2017 against 622,787 TEUs recorded in the corresponding period last year. This performance compares favorably against the global average growth rate of 4 percent per annum.
Guest of Honour Sir,
It is encouraging to note that during the period under review, export traffic increased slightly by 36,094 tons or 1.7 percent to post 2,182,232 tons from 2,146,138 tons handled in the corresponding period in 2016. The slight increase was supported by Coffee, Tea, Vegetables, Fruits and Juices.
Import traffic had a major increase growing by 12.1 percent to record 14,803,838 tons in the last seven months, compared to 13,209,720 tons registered last year. The increase in imports was driven by dry bulk commodities like wheat, clinker, palm and vegetable oil, and refined petroleum products.
On the other front, Transshipment traffic also performed well posting 439,804 tons compared to 302,547 tons realized in the corresponding period of 2016, representing an increase of 63.2 percent. To boost and sustain this trend, we have for the last few months put in a lot of effort and resources towards promotion of the transshipment market segment including engagements with key shipping lines and their principals. The engagements have generated a lot of interest and we look forward to handling more cargo in the coming years.
Despite having handled higher volumes of cargo in the first half of the year, adverse weather conditions in the months of April and May significantly slowed down our operations occasioning an increase in vessel turnaround time. However, I must add that this is now in the past and we are back to an all-time high of 2.9 days ship turnaround time and 4.2 days cargo dwell time.
To remain responsive to maritime trends, we have continued to implement elaborate port modernization programs to position Port of Mombasa as a world class port of choice.
Towards this end, we have continued to expand our yards and berths and acquired modernized cargo handling equipment that is more efficient and environmentally friendly.
In addition, we:
- Operationalized the 2nd Container Terminal, whose phase one was commissioned in September last year. The facility has increased the Port's annual container handling capacity by 550,000 TEUs. We are set for the construction of the second phase to provide an additional capacity of 450,000 TEUs. Ground breaking is scheduled for January 2018.
- Have substantially progressed plans to build a modern and bigger oil terminal to replace the current Kipevu Oil Terminal. The new oil terminal will incorporate an LPG pipeline and have the capacity to handle four vessels at a time. The facility will have pipes running on the seabed to link with the KPC storage tanks.
- Are working closely with Trademark East Africa to construct a modern Cruise Terminal at Berth No. 1 and 2 aimed at complementing the Tourism sector.
- Are working towards attaining acceptable standards of a green practices. Accordingly, KPA has developed a green port policy which seeks to position the Port of Mombasa as a leading world port providing sound stewardship and management of the environment. The strategy highlights the need to place people first, while addressing the environmental impact occasioned by port operations as well as placing a premium on technology-rich and sustainable port operations. This month we received two specialized mobile cranes that are eco-friendly and are fitted with a control system that minimizes escape of dust during discharge.
Finally, I wish to note that we have also continued to create strong stakeholder networks nationally and internationally through active participation in maritime trade and transport logistics conferences. In this regard, I am pleased to announce that next year we shall have the privilege of hosting the 26th International Association of Maritime Economists (IAME) Conference that will be held in Africa for the first time. As the main local sponsor, KPA is expected to offer logistical and administrative support, lead the marketing and communication efforts and assist in securing participation of major institutional partners and delegates. You are, therefore, all invited to participate in this big event which will bring together great business minds in the maritime industry. We shall soon share with you details of the conference slated for 18th to 21st September 2018 in Mombasa.
Hon Cabinet Secretary,
The anchor will not be dropped until we close the loop between ourselves and you the stakeholders.
Our pledge is to continue working with you in exploring all alternative means of making our Port among the best regionally and globally. Once again, thank you for finding time to attend this luncheon.
May I now call upon the Chairman of KPA Board, Major (Rtd.) Hon. Marsden Madoka to make his remarks.
May God Bless You.