Kenya Ports Authority faulted over directive on South Sudan-bound cargo

By Jackson Okoth

Kenya: The Clearing and Forwarding fraternity has protested the manner in which a single company has been given the exclusive rights to clear all import cargo destined for South Sudan at the Mombasa Port.

In a letter to all shipping agents, dated September, 27, 2013, Kenya Ports Authority (KPA) notified all shipping and clearing agents on the appointment of Panda Clearing and Forwarding as the sole handler of all South Sudan cargo landed in the port of Mombasa.

KPA general manager, operations Twalib A Khamis said Panda will partner with Compact Freight Station in the job with effect from October, 15 2013.

“Consequently, with effect from October 15, 2013, all South Sudan cargo should be manifested for clearance at the Compact Freight Station,” he said in an internal memo.

It is this directive that has drawn sharp criticism from members of the Kenya International Freight and Warehousing Association (KIFWA).

“The port of Mombasa is a public utility and therefore awarding of any contracts or accession to any agreements must be done transparently and with the participation of the public and key stakeholders,” said Boaz Makomere, KIFWA national chairman in a response letter to KPA dated September 28, 2013.

The association further states that existing Kenya Maritime Regulations prohibit monopolistic practices, which effectively lock out other players in the industry.

“It is very clear that the purported appointment of the sole clearing agent and container freight station is not only discriminatory but also illegal,” said Makomere.

South Sudan is considered one of the fastest growing transit destinations for imports through the Mombasa port, according to the Kenya Ports Authority (KPA).

Only Second to Uganda, South Sudan’s cargo stood at 11.6 per cent in 2013 compared to 7.5 per cent in 2011.

In bad taste

Keynote Logistics Limited, Managing Director William Ojonyo described the circular from the KPA as not only in bad taste but also unfortunate.

“It is with utter dismay that a company in South Sudan is being given exclusive rights to clear all cargo destined for Southern Sudan without involving any local firm,” he said.

He argues that Kenya will not be able to verify cargo going into South Sudan and cannot therefore prohibit or restrict any contraband going into that country from the port of Mombasa.

KIFWA objected to the KPA notice and demanded that it be withdrawn with immediate effect.

“Failure to do so will force the association to seek redress as shall be deemed appropriate,” it said.

The association argues that it does not see any justification in the KPA directive given that such arrangement should exclusively apply to shipments consigned to the Government of South Sudan, but not for cargo that belongs to private traders or individuals.

Mombasa, Kenya’s principal sea port, is a major provider of essential international maritime links for land-locked neighbouring countries. The Port of Mombasa is managed by the Kenya Ports Authority, a parastatal fully owned by the Kenya Government.