Press Center | Freight Shipping Logistics News
Jan 30, 2009
General
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The company has increased its handling capacity to more than 28,000 tonnes compared to less than 20,000 tonnes in the past in anticipation of huge imports that will arrive in the country soon, he added.
The National Cereals and Produce Board is yet to collect a consignment of 8,000 tonnes of maize from the grain terminal in Mombasa, the Nation has learnt.
Grain Bulk Handlers Ltd (GBHL) financial manager Jon Stokes attributes this to a slow documentation process. This disclosure comes as hunger bites in many parts of the country.
Mr Stokes said the slow documentation had in the past affected the delivery of grains from the terminal, leading to use of silos as storage facilities by importers, which affects smooth operations at the terminal.
The company has increased its handling capacity to more than 28,000 tonnes compared to less than 20,000 tonnes in the past in anticipation of huge imports that will arrive in the country soon, he added.
“We have done this in anticipation of imports that are coming and we hope other grain players will follow suit to avoid delays that have led to the payment of high demurrage charges by importers,” Mr Stokes said.
Demurrages are charged by shipping lines for unusually long delays at the port.
Mr Stokes said without any improvement in the transport and other sections of the logistical chain, efforts to increase the capacity would go to waste.
Millers recently expressed fears that the recent move by the government to remove the import duty on maize would not have any effect on the prices of the flour due to the high demurrage charges, which can be as high as US$50,000 (Sh4 million) a day.
Overwhelm us
Importers were able to discharge only 3,000 tonnes of grains a day, Mr Stokes said, against the terminal’s new capacity of 28,000 tonnes a day.
“Since the terminal’s silos have a storage capacity of only 135,000 tonnes of grains, we are afraid that the imports that will come will overwhelm us if the logistical chain of supply is not improved,” he added.
Grain Bulk Handlers Ltd (GBHL) financial manager Jon Stokes attributes this to a slow documentation process. This disclosure comes as hunger bites in many parts of the country.
Mr Stokes said the slow documentation had in the past affected the delivery of grains from the terminal, leading to use of silos as storage facilities by importers, which affects smooth operations at the terminal.
The company has increased its handling capacity to more than 28,000 tonnes compared to less than 20,000 tonnes in the past in anticipation of huge imports that will arrive in the country soon, he added.
“We have done this in anticipation of imports that are coming and we hope other grain players will follow suit to avoid delays that have led to the payment of high demurrage charges by importers,” Mr Stokes said.
Demurrages are charged by shipping lines for unusually long delays at the port.
Mr Stokes said without any improvement in the transport and other sections of the logistical chain, efforts to increase the capacity would go to waste.
Millers recently expressed fears that the recent move by the government to remove the import duty on maize would not have any effect on the prices of the flour due to the high demurrage charges, which can be as high as US$50,000 (Sh4 million) a day.
Overwhelm us
Importers were able to discharge only 3,000 tonnes of grains a day, Mr Stokes said, against the terminal’s new capacity of 28,000 tonnes a day.
“Since the terminal’s silos have a storage capacity of only 135,000 tonnes of grains, we are afraid that the imports that will come will overwhelm us if the logistical chain of supply is not improved,” he added.
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