Growing Business, Enriching Lives AUGUST 2015
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1 AUGUST 2015
2 Outline 1. Overview of the Kenyan Economy and Vision KPA and The Port of Mombasa Overview 3. Mombasa Port Performance & Demand Forecast 4. Development Plans 5. Way Forward Growing Growing Business, Business, Enriching Enriching Lives Lives
3 1. The Kenyan Economy and Vision 2030 Growing Growing Business, Business, Enriching Enriching Lives Lives
4 Sub Saharan Economic Context Kenya, Africa s 9 th largest Economy; Strong growth, a far reaching reform agenda and an ambitious infrastructure investment programme (Vision 2030); Per capita GDP US$ 1,246; GDP growth at 5.7% for 2013; and Launched the largest ever Sovereign bond in Sub- Saharan Africa, in 2014 (US$ 2Billion). Growing Growing Business, Business, Enriching Enriching Lives Lives
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6 The Vision 2030 Key Focus Investment in Infrastructure Roads; SGR Rail; Ports; Airports; etc. Investment in Energy Geothermal; LNG; Investment in Education Free primary and Secondary Education; Mechanized Agriculture; etc. Growing Growing Business, Business, Enriching Enriching Lives Lives
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13 2. KPA and The Port of Mombasa Overview Growing Growing Business, Business, Enriching Enriching Lives Lives
14 Mandate of Kenya Ports Authority Established as a Statutory Body in 1978 by an Act of Parliament (KPA Act Cap 391 of the laws of Kenya). Identified as a Commercial State Corporation with Strategic Functions. Main Role of the Authority:- Develop; Maintain; Operate; Improve; and Regulate all scheduled seaports along Kenya s coastline. Main Laws regulating the Industry:- Kenya Maritime Act; Merchant Shipping Act; National Transport Policy; Harbour Regulations; East African Customs Management Act; and others - Port Community Charter. Growing Growing Business, Business, Enriching Enriching Lives Lives
15 Scheduled/Gazetted Ports under KPA Mombasa and Others Small ports: 1. Kiunga 2. Lamu 3. Ngomeni 4. Malindi 5. Kilifi 6. Takaungu 7. Mtwapa 8. Funzi 9. Shimoni 10. Vanga Growing Growing Business, Business, Enriching Enriching Lives Lives
16 Critical Function of The Port The Port of Mombasa is one the most important pieces of infrastructure in East Africa and a Critical Transport Hub for the region; Its modernization has been cited as one of the key factors that would accelerate Regional Economic Growth; and The Port of Mombasa serves a wide agricultural and natural resource-rich hinterland consisting of Uganda, Rwanda, Eastern Democratic Republic of Congo, North Eastern Tanzania, Burundi, South Sudan and Ethiopia thus Hinterland Connectivity (Roads; Rails; Pipelines) is critical for success of regional trade.
17 MISSION, VISION & CORE VALUES Mission: To facilitate and promote global maritime trade through provision of competitive port services. Vision: World class seaports of choice. Core Values: Excellence Integrity Teamwork Caring Growing Growing Business, Business, Enriching Enriching Lives Lives
18 The Port of Mombasa 11 General cargo berths; 2 Bulk oil jetties (KOT & SOT); 4 Specialized Container berths; Ship repair facilities; Private facilities for Grain, Cement, Titanium exports, fluorspar; and A Cruise Ship Terminal at berths 1 and 2. Container terminal Length: 840meters, plus 900meters at MPDP; Depth: - 15m; Capacity: 1.1Million TEUs, plus 1.45m TUEs at MPDP; Performance: 1,012,000 TEUs and m tones of cargo (2014); and Terminal area of 65 Acres, plus additional 100acres at MPDP.
19 Mombasa Port Layout
20 Container Terminal Length 840 meters (Additional 240m in March 2013) Depth 12.2 m Handles vessels up to 4500 TEUs Current capacity 1,050,000 TEUs Area 65 acres
21 The Conventional Cargo area
22 The Old Port area
23 Cruise Ship Facilities
24 3. Mombasa Port Performance & Demand Forecast Growing Growing Business, Business, Enriching Enriching Lives Lives
25 Cargo Throughput ( 000 DWT) 30,000 25,000 21,920 22,307 24,875 20,000 19,062 18,934 19,953 15,000 12,920 13,281 14,419 15,962 16,415 DWT 10,000 5,
26 Container Traffic ( 000 TEUs) 1,200,000 1,012,002 1,000, , , ,804 TEU 800, , , , , , , , , ,
27 Transit Market Shares D.R.C. 5.7% RWANDA 3.3% TANZANIA 2.6% BURUNDI 1.1% SOMALIA 0.1% SOUTH SUDAN 10.6% UGANDA 76.7%
28 Demand Forecast Total Cargo Throughput to rise from 24.8million tons in 2014, to 28.5million in 2017 and 54million by the year Container Traffic forecast projected to move from 1.1million TEU in 2014, to 1.6million in 2017 and 3.4million TEUs by Targeting to be a regional Transit and Transhipment hub by 2018 (Transit cargo of 6.7million DWT and Transhipment 112,000 DWT in 2013 (Transhipment now at 731,912 DWT(320% growth))).
29 Demand and Capacity of the Port
30 4. Development Plans
31 Second Container Terminal; Current Status of Phase I as at July 2015 is 90%
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33 Dongo Kundu Land use Plan for the entire 3,000 acre piece of land completed Strategic Environmental Impact Assessment (SEA) Completed Opportunities: Construction of 2 Berths-Multipurpose Free Port facilities Industrial park etc.
34 Dongo Kundu Please insert Land Use Plan
35 RELOCATION OF KOT
36 Lamu Port
37 Artistic Impression of Lamu Port The Port will have 32 berths and draft of -18 meters Phase 1 involves construction of three berths to handle container, convectional and bulk cargo vessels,. The development of the first three berths has started and will be concessioned to Private Operators.
38 Other Upcoming Projects Conversion of Berths into Container Terminals Rehabilitation of Inland Container Depots (ICDs) Development of 19B after relocation of KOT Construction of Kisumu and Lake Victoria Ports Developing the Small Ports.
39 Non- Infrastructure Improvements Review of KPA Act Align the KPA Act of 1978 to the Constitution Take cognizance of new developments in the maritime trade. Vest all Ports, Port Services, Inland Ports and Waterways to KPA. Reviewing the list of Scheduled Ports contained in the Second Schedule of the current Act. Productivity Improvement Plan To transform the Port into a world class facility, by improving port productivity, enhancing efficiency and reducing operation costs. Port Community Charter Housed by the NCTTA - aims at developing and monitoring performance indicators for port operations, cargo processing time and corridor transit time as well as keeping a database of the same. Preparation of Green Port Policy and Implementation Plan Stipulates ways in which the Authority can minimize/mitigate negative impact of climate change and environmental risks in its operations and enhance the climate change and environmental opportunities in its future work.
40 5. Way Forward
41 Need to Improve Port Competitiveness 1. Competitiveness is the most important factor in ports survival. 2. Aiming at Hub Port status requires competitive strategies stretching beyond a port s physical, geographical and political attributes. 3. Superior services must be offered, focusing on: Efficiency; Safety; and Contribution to National and Regional Economic Growth. 4. Productivity must be improved in all segments of the supply chain in international logistics operations.
42 Delivering The Promise Solid port management structures backed by continuous improvement key to increasing efficiency and competitiveness; Innovative financing for port infrastructure development will remain critical; Private sector involvement in port development and operations will be given more prominence; Integrated transport sector master plans will drive the agenda for comprehensive sector growth and development. The Port will continuously improve on supply chain efficiency, reliability, Visibility and security to stay competitive in the continuously evolving world global commerce.
43 Thank You! KENYA PORTS AUTHORITY GROWING BUSINESS, ENRICHING LIVES
TANZANIA HARBOURS AUTHORITY PO Box 9184 DAR-ES-SALAAM TANZANIA
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