Press Center | Freight Shipping Logistics News
Speaking during the official opening of a regional stakeholders meeting on the establishment of consultation machinery on maritime transport services in Mombasa, Mr Mwakwere moved to allay fears among a section of shipping lines that the new Act will lock out foreigners.
“It is regrettable that some stakeholders misinterpreted this Act as one enacted to restrict foreign direct investment in the maritime transport sector. This is not so. On the contrary, the government through my ministry, encourages collaboration between local and foreign firms.”
The Act does not prohibit direct foreign investment in any segment of the logistics chain. It addresses the issue of vertical integration of the logistics chain where a few dominate the sector by applying pricing practices that limit the entry of new participants, he added.
The minister said the government had mandated the Kenya Maritime Authority (KMA) to monitor the efficiency and competitiveness of a transport logistics supply chain required in Kenya’s maritime industry.
The regional stakeholders will among other things deliberate on ways of improving the transport infrastructure situation to boost trade. In her address to the stakeholders, KMA director-general Ms Nancy Karigithu said Kenya’s maritime industry is headed for streamlining with the implementation of the Merchant Shipping Act, 2009.
The new law will, among other things, reduce the cost of maritime transport and ease business in Kenya’s shipping industry and the region in general, making the country’s exports more competitive in foreign markets and imports more affordable to the common people.
She said the new law is poised to create massive job opportunities by opening a new field through the separation of various auxiliary duties at the port.
“The main purpose of the Act is to create a comprehensive and modern legal regime for merchant shipping in Kenya. It will open the potential in the industry, drastically bringing down the cost of doing business and creating a lot of jobs for Kenyans,” said Ms Karigithu.
With over 95 per cent of Kenya’s international trade conducted through the maritime and shipping industry, the government is keen on streamlining the sector to ensure not only that it meets international industry standards, but also helps deliver Vision 2030 to Kenyans.
PARASTATAL heads who signed the Mombasa port community charter risk being sacked if their agencies do not deliver on the contents of the new entity. The charter signed between the government and the private sector aims at improving the movement of cargo from the port into hinterland