Kenya Ports hikes tariffs

Kenya Ports Authority (KPA) has introduced new port charges.
The move comes in the wake of protests by some port users in the clearing and forwarding section, who demanded a six-month extension following the effects of the recent political crisis on the transport sector.

The tariff generally raises costs of services at the port between 10 and 15 per cent.
KPA last reviewed port tariff 12 years ago, according to Harbour Master and Chief Operations Manager, Captain Twalib Khamis.

Khamis said the tariff affect marine services, shore-handling, stevedoring services and cargo storage. "The tariff is mainly a correction because in some areas the port charges have been reduced," said Khamis.
He said KPA embarked on the tariff rationalisation exercise in 2004 when it hired a consultant to study the port charges.

KPA convened a stakeholders’ meeting to review the tariffs before the Board of directors and Transport minister, Mr Chirau Ali Mwakwere, endorsed them.
KPA Managing Director, Mr Abdalla Mwaruwa, said the new tariffs were in effect from March 1, after a month’s extension, following a cargo pile up caused by post-election skirmishes.
Port users have been demanding an extension in implementation of the tariff by six months to ensure the effects of congestion are over.
Kenya International Freight and Warehousing Association (Kifwa) Mombasa Branch Chairman, Mr Peter Otieno said implementation of the tariff would hike the cost of doing business at the port.

"The one-month extension for the implementation of the new port tariff was too short because we are still suffering the effects of congestion. Transporters have already increased charges by $480 (Sh32,640) following the post-election violence," said Otieno.

He said consumers of cargo handled at the port would share the new costs.
"Although KPA has argued that the review of port tariff is long overdue because port users have increased their charges over the years, it has come at a time when we are facing hardships after the post election violence," said Otieno.

Last year, KPA signed for a Sh16 billion loan with a Japanese company for the building of a second container terminal at the port.
The corporation has also approved the deepening and widening of the approach channel and ship turning basin through dredging at a cost of Sh4 billion.

According to KPA, the tariff review would help in meeting targets in the performance contract arrangement, and increase income amidst rising inflation levels.

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Published on March 3, 2008,
Story by Patrick Beja