The puzzle of delays in cargo clearance at port

By PATRICK BEJA

A joint statement by Mombasa port stakeholders has explained why clearing cargo through the facility has remained a jigsaw puzzle.

Port users now say nowhere in the world does such a rigorous and lengthy cargo clearance system exist, making it difficult to get rid of tariff and non-tariff barriers.

The statement was prepared for the logistics industry comprising shipping lines, clearing agents, transporters, warehouse keepers and container freight stations among others.

It was presented during the World Maritime Day at the Mama Ngina Drive last Saturday by Mr P J Shah, managing director of the Maritime Freight Company and executive committee of the Kenya International Freight and Warehousing Association (Kifwa).

Kifwa national chairman Awiti Bolo and leaders of various organisations in the logistics industry endorsed the statement addressed to the Government.

Port users want the proposed Sh16 billion second container terminal at the port of Mombasa built for the purpose of offloading container ships and not for their storage.

"What is needed is construction of a dry port outside the port of Mombasa with storage capacity of 15,000 teus (twenty foot equivalent units) so that the port becomes a transit point by transferring containers directly to the dry port for final clearance," they said.

They noted that this would result in faster turn around of vessels and avoid future threats by shipping lines to impose vessel delay surcharge.

They also raised concern over charging of storage levy by Kenya Ports Authority (KPA) on goods that have been ‘Customs warehouse cargo’ hence amounting to double storage.

cost of shipping

"Continued poor performance and slow turnaround of container ships at Mombasa port increases costs to shipping lines who then pass them to shippers in terms of increased freights and other charges. This increases the costs of doing business in Kenya," they said.

Port users want Kifwa and Kenya Ships Agents Association (Ksaa) represented in the KPA and Kenya Revenue Authority (KRA) boards like the Kenya Transport Association representation in the Kenya Roads Board.

The stakeholders sounded revolutionary when they demanded Customs headquarters to be relocated to Mombasa where the KRA department collects 80 per cent of its revenue.

Port users expressed concern over the proposed construction of Great Lakes CFS meant to exclusively handle Uganda-bound cargo claiming this would go against the Price and Monopolies Act.