Shippers asked to use global terms wisely
Story by WALTER MENYA
DAILY NATION
Publication Date: 7/25/2008
Proper use of international commercial shipment terms (Incoterms) by local shippers and cargo handlers will help counter rising transport and insurance costs, the Kenya Maritime Authority has said.
It will also increase profits, save on foreign exchange and improve competitiveness of export goods, KMA director-general Nancy Karigithu added during a sensitisation workshop on Incoterms in Kisumu Thursday.“If we understand what is entailed in the shipment of goods and apply the same, we will be able to save the country some money,” she said, echoing a speech she read on behalf of Transport minister Chirau Ali Mwakwere, where he urged local traders and shippers to make use of the terms for maximum benefit from the contracts of sale.
Incoterms define the roles of the buyer and seller in the arrangement of international transportation and other responsibilities related to cross boarder shipment of goods.Port of departureIn Kenya, Ms Karigithu said, the most used Intercoms are CIF (Cost, Insurance and Freight) and FOB (Free on Board). Importation under the CIF entails the seller paying and arranging for insurance and shipment from port of departure to the port of destination, while exportation under FOB leaves the responsibilities to the buyer.The Kenya Shippers Council has commissioned a study on transport costs, the CEO, Gilbert Langat, said during the workshop.
“The rising transport and logistics costs have a serious impact on cost of doing business and the competitiveness of our industries in the global markets,” he said.The workshop brought together KMA, Kenya Shippers council, Intergovernmental Standing committee on shipping (ISCOS) and the northern corridor transport transit authority.
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BUSINESS NEWS
Boda boda running matatus out of the city
Written by George Omondi
July 22, 2008: For slightly more than a generation, the 14-seater mini vans have been a defining feature of Kenya’s public transport sector. They have elbowed out organised bus transport companies from lucrative routes and employed their strength in numbers to resist reforms meant to bring high capacity vehicles into the urban transport sector.Had all gone according to plan the licensing of 14-seater matatus would have been stopped in November 2007.
However, intense lobbying ahead of an election, saw the Government’s resolve wane with then Transport minister Ali Chirau Mwakwere remarking that he owned several mini vans and would not allow the “Nissan Matatus” to be phased out.Arm twisting officialdom is one thing; whether the matatus can resist something more formidable like market forces is another. The disruptive factor in this case arises from the removal of value added tax (VAT) on motorcycles in this year’s budget.
matatu parked at a Nairobi bus terminus
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Merchant Shipping Bill taken back to Parliament
July 16, 2008: The Government has revived the Merchant Shipping Bill, raising expectations that a new legal framework for the sector will soon be in place.
The Bill published last month sets out a comprehensive and modern legal framework to regulate maritime activities in the country.
Transport Minister Ali Chirau Mwakwere says the new law would enhance the safety and security of the country’s ports and territorial waters as well as foster growth of the maritime sector.It is expected to replace the current Merchant Shipping Act (Cap 389) of 1967, which has lagged behind the rapid changes in the dynamic sector, and hindered implementation of many international conventions causing Kenya to become a pariah in the global industry.
Ships at the Port of Mombasa
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Kaya forests named world heritage sites
The Mijikenda Kaya forests along the Coast have been added to the United Nations’ list of World Heritage sites. The decision, taken on July 8, 2008 during a Unesco meeting in Canada, is likely to inspire thousands of tourists to visit the forests. Kenya had previously won World Heritage designations for Lamu Old Town and Lake Turkana and Mt Kenya national parks.
The Mijikenda Kaya forests are among 27 sites approved by Unesco this week for World Heritage status. Several countries sought unsuccessfully to have sites added to the list at the annual meeting that ends on Friday in Quebec City.
Unique testimony
The Mijikenda Kaya forests are among 27 sites approved by Unesco this week for World Heritage status. Several countries sought unsuccessfully to have sites added to the list at the annual meeting that ends on Friday in Quebec City.
Unique testimony
In announcing the designation of the forests, Unesco said “the site is inscribed as bearing unique testimony to a cultural tradition and for its direct link to a living tradition”.
The Kaya forests consist of 11 separate parcels of land spread over 200 kilometres and containing the remains of numerous fortified villages (kayas) built by the Mijikenda.
The kayas, which date from the 16th century, are now regarded as the abodes of ancestors and are revered as sacred sites, Unesco noted. As such, they are maintained by councils of elders. A total of 878 sites around the world have received World Heritage designations in the 27 years that Unesco has been making such inscriptions.
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Special audit for two local airlines
Story by NATION Reporter
Publication Date: 7/10/2008
A special audit will be carried out on two local airlines next week after legislators raised concern about their safety standards. Speaking in parliament on Wednesday, Transport minister Chirau Mwakwere announced that the Kenya Civil Aviation Authority would investigate claims by Mr Jakoyo Midiwo (Gem, ODM) and Mr James Rege (Karachuonyo, ODM) that flights operated by the East African Airlines and Jet Link planes were raising safety concerns.The airlines operate from Jomo Kenyatta International Airport to Kisumu, Eldoret and Mombasa.Said the Gem MP: “On May 9, a plane carrying four MPs to Kisumu almost crashed. When the staff were asked, they claimed that the engineers were not doing a good job because they were not paid well.”Mr Midiwo said another incident occurred on June 26, adding that the plane flew back to JKIA where it was repaired on the runway before taking off again.
Similar problem
Jet Link had a similar problem in Kisumu, last week, the ODM MP said.Answering a question by private notice by the Gem MP, the minister said he was aware that the East African Airlines aircraft flying to Kisumu on June 26 at 5.45pm, was forced to land shortly after take off.
However, Mr Mwakwere denied claims that the airline had experienced several unexplained incidents in the past few months, saying it had a safety management system in place that complied with international aviation regulations.The minister said he was not ready to suspend the firm's licence, saying he will await the findings of the audit.It is less than a month since Roads minister Kipkalya Kones and Home Affairs Assistant minister Lorna Laboso, a security officer and a pilot perished in a plane crash in Narok.
Mr Julius Kones (Konoin, ODM) wondered why the authorities have to wait until a disaster strikes to take action.
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