KMA: We have a plan for local logistics firms to earn more

Cargo being offloaded at the Port of Mombasa. [Omondi Onyango, Standard]

Kenya Maritime Authority (KMA) has set its focus on enabling local players in the maritime industry to tap more revenue that currently goes to multinational firms.

KMA board chairman Hamisi Mwaguya said the agency now aims to lay down plans that will help local logistics firms draw more money from cargo owners who pay freight rates.

Mr Mwaguya said in an interview that Kenya should not be 'sea blind' and instead should venture into the maritime industry and reap big from the lucrative business.

"KMA is well placed to play a key role in providing an enabling environment to achieve this. If we can have 20 per cent of the cargo traffic going to local shipping firms, then the country can benefit a lot," he said.

He estimated that containerised cargo through the port of Mombasa stands at about 1.6 million Teus (Twenty Foot Equivalent Units) annually, which attracts about Sh600 billion in freight payment.

Mwaguya argued that there is more to reap from bulk cargo passing through the port as well. He noted that the freight bill is paid to multinational shipping companies in dollars, money that local players can get a good chunk.

"KMA is well placed to play a key role in providing an enabling environment to achieve this. If we can have 20 per cent of the cargo traffic going to local shipping firms, then the country can benefit a lot," he said.

His argument comes at a time when maritime stakeholders in the country are seeking answers on how to lower the cost of doing business at the port of Mombasa.

Mombasa port users have complained that international shipping lines have demanded additional rates to the usual freight costs, making the facility expensive compared to the port of Dar es Salaam.

On July 29, this year, President William Ruto met Mombasa port users and directed them to come up with recommendations on how to lower the costs.

The president directed the players at port to come up with a report in 90 days.

Cabotage conference

The debate on reforms of the maritime industry also comes at a time when the country is readying itself to host the Africa cabotage conference in November which is geared towards promoting local shipping companies amid dominance by international lines.

Mwaguya noted that KMA's focus was to enable Kenya National Shipping Lines (KNSL) and other local shipping entities play a more active role in the maritime industry, giving an example of Ethiopia which has 15 ships.

Ethiopia Shipping and Logistics Company provides coastal and international marine transport services to and from Djibouti port through the ports of Gulf, Indian sub-continent, China, Korea, Japan, Singapore, South Africa and Indonesia.

The shipping and logistics firm has managed to service the ports through its own ships as well as via slot chartering of major global carriers.

"We need to enable them (local firms) through various legislative frameworks. We need to create a conducive environment for them to harness the potential in the martime business. This will require attractive tax incentives.We need to work closely with other government agencies and the National Treasury," Mwaguya said.

KMA is currently moving to its own multi-million shilling building on Mombasa island that will house all its operations.

According to Mwaguya, the space will enable KMA to serve its customers more efficiently and digitise the Seafarers Identification Document as well as accommodate the regional search and rescue centre that is currently domiciled at the port of Mombasa.

"We are going to revamp our research and planning department and move our regional search and rescue centre from the port. We will have our operations under one roof. We will have space for the maritime community," he said.

Separately, Andrew Mwangura, a maritime expert at the Nautical Advisory Services, has called on government to establish a merchant navy training board, national maritime accidents investigations board and an institute for blue economy and ocean studies.

He also called for the establishment of an open ship registry, maritime cluster fund, fisheries training institute, enactment of cabotage law, a full-fledged seafarers department at KMA and a dedicated directorate of maritime education and training at KMA.

"To build a strong maritime nation, there is need to develop a dedicated Directorate of Maritime Education and Training at KMA," said Mwangura.