Nov 28, 2013
General
caxias
Freight stations have challenged a decision to appoint one firm to handle all cargo headed to South Sudan.
Freight stations have challenged a decision to appoint one firm to handle all cargo headed to South Sudan.

The firms have filed an application in the Mombasa High Court seeking to quash directive by the Kenya Ports Authority (KPA).

The authority appointed Panda Clearing and Forwarding Company to handle the South Sudan-bound cargo.

The Container Freight Stations Association have also sought an order seeking to ban KPA from implementing its September 27 directive.

In June, KPA announced that South Sudan had become a key transit destination, with 11.6 per cent share in all transit cargo.

As such, the applicants said, it would be impractical for a single firm to handle such high volumes of cargo.

In an affidavit, the association’s executive officer, Mr Daniel Nzeki, said that KPA had unfairly locked out other companies from participating in the South Sudan market and, therefore, denied them legitimate income.

The KPA notice, he claimed, had not disclosed any reasons for giving such instructions and neither had it cited legitimate government authority approving the arrangement.

“The respondents’ directive was unilaterally made and did not consult or involve stakeholders and port community concerned,” he said.

Hearing was set for December 2.
Return