​SPEECH BY MR JAMES MACHARIA EGH, THE CABINET SECRETARY MINISTRY OF TRANSPORT, INFRASTRUCTURE, HOUSING, URBAN DEVELOPMENT AND PUBLIC WORKSDURING THE KPA STAKEHOLDERS LUNCHEON AT VILLA ROSA KEMPINSKI, NAIROBI ON 19^TH SEPTEMBER 2018

The Principal Secretary State Department of Transport, Mrs. Esther Koimett,

KPA Board Chairman Gen. (Rtd) Joseph Kibwana,

KPA Acting Managing Director Dr. Arch. Daniel Manduku,

KPA Board of Directors present,

Distinguished stakeholders,

All invited guests,

Members of the fourth estate,

Ladies and Gentlemen

Good afternoon,

It is exactly one year since we interacted in a similar sitting to update you on our continued efforts to improve trade facilitation through the Port of Mombasa. This afternoon, we are here again to engage on a review of the Port's performance and the supporting infrastructural programmes with a view to ensuring that the Port continues to deliver value to its users.

As our key stakeholders we value the critical role you play in the economy and  which informs the business decisions the government makes at policy and implementation levels. We sincerely thank you for your continued commitment in this journey.

Ladies and gentlemen,

As you notice, we have new faces in this gathering. First, I recognize the new Principal Secretary State Department of Transport Mrs. Esther Koimett whom I am sure is not new to many of you. A public servant with a lot of experience  Esther is a consummate professional whom we are privileged to welcome to the Ministry.

I also take this opportunity to congratulate the new KPA Chairman Gen. (Rtd) Joseph Kibwana and his entire Board and Ag. Managing Director on their appointment.

Distinguished stakeholders,

The Government has been keen on the creation of an enabling business environment as focus on the Big Four Agenda namely: food security, manufacturing, healthcare and housing. It is in this context that my Ministry has continued to invest in infrastructure as an enabler to our country's economic development.

I note that you have tight schedules and we do not have the luxury to engage you beyond your usual lunch breaks. In this regard therefore, allow me to update you on some key projects under my Ministry.

• Commencement of phase two of the Construction of the Second Container Terminal
  
  As you are aware H.E. the President commissioned Phase One of the second container terminal in September 2016. In August last year, we commenced construction process of Phase Two scheduled for completion by October 2021.  The terminal, to be constructed in three phases will have a total annual capacity of 1.5 Million TEUs. Thus, increasing the Port's annual container handling capacity to 2.6 Million TEUs by year 2022.
• Commencement of construction of Phase Two of the Standard Gauge Railway (SGR)
  
  Phase one of the SGR became operational with the passenger services in June last year. This year in January, we commissioned the freight services between Mombasa and Nairobi. We started with one train ferrying 108 containers daily from the Port of Mombasa to the Inland Container Depot in Nairobi.. We have continued to add a train every month and consequently in August, we introduced the eighth train carrying a total of 864 TEUS daily. We are targeting to have 12 trains by December this year.
  
  On the  passenger service we have so far handled about 2Million passengers.
  
  We commenced construction of phase 2A of the SGR from Nairobi to Naivasha in October 2016. It is scheduled for commissioning in June 2019. 
• Expansion of the Inland Container Depot (ICD) Nairobi
  
  The Nairobi facility was upgraded, and its annual capacity expanded from 180,000 TEUs to 450,000 TEUs. We are aware that since we commissioned the freight service, operations at the ICD have been at optimal levels. However, owing to slow cargo evacuation from the depot and mix of logistical hitches, we have been experiencing intermittent congestion.
  
  Nonetheless, my Ministry is working closely with other government agencies to address the shortcomings and enhance ease of doing business.
• Construction of second commercial Port in Lamu
  
  Construction of the first three berths started in October 2016 and we expect the first berth to be ready by December this year while the remaining two will be completed before the year 2020.
  
  The Port in Lamu will open up further trade links between our country and our northern neighbours in South Sudan and Ethiopia through the new LAPSSET Corridor.
  
  Construction of an alternative route from Mombasa Port to Burundi
  
  Construction of the road linking Mombasa Port and Burundi through Holili Border, Singida-Kobero Border and finally to Bujumbura is complete. This route covers about 1545kms, which reduces the distance from Mombasa to Bujumbura through the Northern Corridor by 358 kms thus enhancing Mombasa Port's accessibility in the region.
• Construction of Mariakani- Mombasa dual carriageway
  
  To ease traffic flow between the Port of Mombasa and the hinterland, construction of a dual carriage way between Mombasa and Mariakani is ongoing with the completion date set for 2020. The Government plans to eventually extend the dualing of the highway to Malaba via Nairobi.
• Relocation of Kipevu Oil Terminal (KOT)
  
  To effectively address the anticipated capacity constraints in handling oil products at the Port, plans are at advanced stage to develop a modern oil handling facility by relocating the current Kipevu Oil Terminal to a new location.   
• Construction of the Dongo-Kundu by-pass
  
  The first phase of the Dongo- Kundu bypass, which runs from the Port of Mombasa's Second Container Terminal and joins the Mombasa-Nairobi Highway at Bonje near Mazeras was completed and commissioned this year.
  
  The road's design allows for the seamless integration between the Port of Mombasa, the Moi International Airport, the Standard Gauge Railway, the Nairobi-Mombasa Highway and the upcoming Mombasa Northern Bypass. This road is critical in servicing the planned Free Trade Zone and Special Economic Zone at Dongo Kundu. In addition it shall open up the South Coast region and ease traffic congestion in the island. 
  
  The tendering process for construction of phase two is ongoing.
  
   
  
   
  
   
  
  Performance of the Mombasa Port Community Charter
  
  My Ministry closely coordinates the Mombasa Port Community Charter to ensure all actors in the logistics chain play their respective roles effectively. Through this initiative, we have seen improvement in productivity and efficiency at the Port of Mombasa.
  
   
  
  Lastly, I would like to assure you that the Government is determined to continue developing a supportive and sustainable transport and infrastructure network conducive to business investment. We appreciate your continued support we pledge to sustain our responsiveness to your constructive views as we grow trade and development.
  
  Enjoy the lunch and seize the opportunity to widen your networks.
  
  Thank you!