SPEECH BY MR. JAMES MACHARIA EGH., THE CABINET SECRETARY IN THE MINISTRY OF TRANSPORT, INFRASTRUCTURE, HOUSING, URBAN DEVELOPMENT AND PUBLIC WORKS, DURING THE KPA STAKEHOLDERS LUNCHEON HELD AT THE RADISSON BLU HOTEL NAIROBI ON 11TH SEPTEMBER 2019
- Mrs. Esther Koimett,CBS., Principal Secretary in the State Department for Transport,
- Gen. (Rtd) Joseph Kibwana, Board Chairman of the Kenya Ports Authority
- Board of Directors of Kenya Ports Authority
- Dr. Arch. Daniel Manduku, Kenya Ports Authority Managing Director,
- Senior Government officials present,
- Distinguished Guests,
- Ladies and gentlemen,
I am pleasedto once againjoin this special forum where the Kenya Ports Authority engages with you, our esteemed stakeholders. The purpose of this forum is to provide a platform where we can update each otheron developments affectingthe industry, and the specific measures we as a Government are focusing on to improve service delivery. This forum also provides an excellent opportunity for you to share your thoughts and suggestions on how we can serve you better.
During the previous Stakeholders Meeting, we discussed a number of issues that touched on the following areas:
- Enhancing efficiency and bringing services closer to the customer through expansion of the Inland Container Depots
- Initiatives underway to increase the waterfront capacity of Mombasa port
- Providing a complementary transport artery through the LAPSSET Corridor, and a new commercial port in Lamu
- Easing traffic pressure on our roads through construction of Phase Two of the Standard Gauge Railway (SGR), and
- Improving the road network in andaround Mombasa so as to serve the port of Mombasa more effectively.
I am glad to note that, with your unwavering support, we have made significant strides in addressing the concerns raised in these areas.
TheInland Container Depot in Nairobihas been expanded, as a result of which the cargo handled at the depot has increased tremendously. We have also solved most ofthe teething problems experienced during the commencement of operations of the SGR, and the expansion of ICDN.
As a result of these and other initiatives, theaverage train turnaround time has reduced from 10 hours to 7.5 hours,whilst thetruck turnaround time has declined from 9 hours to 5 hours.The average cargo dwell time has also reduced from 11 days to7 days for imports and from 4 days to 2.5 days for exports.
Ladies and Gentlemen,
The implementation of the Standard Gauge Railway has continued to improve the transportation of cargo and passengers between Mombasa and Nairobi. It is important to note that even as we encourage use of the SGR, at full capacity it can onlymove 40 percent of the total traffic passing through the port of Mombasa, leaving the remaining 60% to be transported by road. Therefore, contrary to the concerns raised by some stakeholders, theSGR will not kill road transport but merely supplement it so as to facilitate the seamless movement of goods and people.
I am alsopleased to announce that the first Berth of Lamu Port is now complete and will soon be launched officially.Berths 2 and 3 are also nearing completion and will be ready for use by December next year. We will soon be inviting you to witness the commissioning of the first Berth.
In a bid to build capacity in anticipation of increased volumes at the port of Mombasa, we have embarked on construction of Phase II of the Second Container Terminal, which is now 33 per cent complete. Upon completion of this phase, the Port's annual capacity will increase by an additional 550,000 TEUs. As a result of this and other expansion initiatives, the port of Mombasawill enhance its total annual container capacity to over 2 million TEUsby 2022.
We are also developing a modern oil handling facility in a bid to increase capacity, improve safety and efficiency, and adhere to current world standards. Thisproject, which entails the relocation of the current Kipevu Oil Terminal to a new site,is at 21 Per cent completion. As you know, Kenya has recently joined the league of oilexporting nations and this facility is expected to play a critical role in transforming Kenya into a major oil exporter.
The Government is also undertaking a number of projects aimed at improving the road network in and around Mombasa. These include the ongoingrehabilitation and dualling of the Mombasa-Mariakani road. This project entails upgrading the existing 2 and 4-lane carriageway to a 6-lane dual carriageway,and is expected to be completed by August 2020.
We have alsocommencedthe development and upgrade of roads around the port of Mombasa through the Mombasa Port Area Road Development Project (MPARD). This project aims to create an alternative link between the port and the Northern Corridor, link Mombasa Island to the mainland and South Coast, and connect the planned Dongo Kundu Special Economic Zone to Mombasa port.
Ladies and Gentlemen,
We have set a firm foundation towards strengthening the transport and logisticssector in our region. Let us continue working together to ensure that we achieve our respective long-term objectives.
Thank you very much for your time and attention!