Press Center | Freight Shipping Logistics News
May 27, 2014
General
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The two Japanese conglomerates will be paid Sh2.5 billion to mount cranes at the Kilindini harbour.
Kenya Ports Authority (KPA) confirmed the new tender which comes soon after the ports manager awarded Switzerland-based Liebherr Container Cranes a separate Sh2.5 billion contract to also supply it with cranes.
Kenya Ports Authority (KPA) confirmed the new tender which comes soon after the ports manager awarded Switzerland-based Liebherr Container Cranes a separate Sh2.5 billion contract to also supply it with cranes.
Toyota and Mitsui have won a lucrative contract to supply and install cranes at Mombasa’s new container terminal in a restrictive tender that was open only to Japanese companies.
The two Japanese conglomerates will be paid Sh2.5 billion to mount cranes at the Kilindini harbour.
The multinationals won the tender as part of a deal between Kenya and Japan, which is financing the ongoing construction of a new container terminal at the Coast.
Toyota Tsusho Corporation (TTC) and Mitsui Engineering & Shipbuilding Co. beat their Japanese rivals to the ¥2.9 billion (Sh2.5 billion) contract.
“The group (TTC) and Mitsui Engineering & Shipbuilding Co. won a contract from the Kenyan government to supply port cranes to Mombasa Port,” said TTC in an April trading update.
Kenya Ports Authority (KPA) confirmed the new tender which comes soon after the ports manager awarded Switzerland-based Liebherr Container Cranes a separate Sh2.5 billion contract to also supply it with cranes.
“This is a tender for supply of cranes for the second container terminal whose funding is by the Japanese government,” KPA said in a statement.
“As per the terms of the Loan Agreement signed in 2007 between the Kenya government and Japan, the contractor, the transaction adviser and equipment are to be sourced under JICA procurement guidelines and open to Japanese companies only.”
Both contracts will involve the supply and installation of ship-to-shore cranes.
TTC and Mitsui will supply two cranes and an additional four for moving containers at the upcoming terminal.
Liebherr will supply three ship-to-shore cranes for the newly commissioned berth 19 terminal.
KPA’s award of the Sh2.5 billion contract to Switzerland-based Liebherr raised controversy last year, with rival German firm Kocks Cranes challenging the move.
READ: Anti-graft body probes KPA over Sh2.5bn cranes tender
The Public Procurement Administrative Review Board, however, upheld KPA’s decision, stating that the only reason Kocks lost was its higher bid of Sh2.7 billion.
For Toyota, the crane deal marks its deepening ties in Kenya’s economy, having opened an office in Nairobi last year to battle for contracts in the region.
The firm’s local investments include new motor vehicle dealerships Toyota Kenya, DT Dobie, and CICA Motors.
It also owns used-car dealership Toyotsu Auto Mart and is part of a consortium building KenGen’s Olkaria I and IV geothermal plants that will produce 280 megawatts of power.
Toyota is also searching for investment opportunities in the energy, oil, agricultural, and health sectors as the company ramps up its local portfolio.
For KPA, the increased purchase of cranes is part of its wider plan to increase capacity and improve efficiency at the harbour. Importing a container took an average of 26 days last year compared to 24 days in 2012, according to the World Bank’s Ease of Doing Business survey.
The delays in international trade and the attendant costs have been linked to bureaucracy and inadequate capacity at the Mombasa port to handle fast-growing cargo volumes.
The port, which was designed to handle an equivalent of 250,000 twenty-foot containers annually, now handles more than 700,000 twenty-foot containers per year.
Port authorities expect demand for cargo handling to reach 960,000 twenty-foot containers equivalent by 2015.
The port’s efficiency is, however, expected to improve with the completion of the container terminal at the Kilindini harbour that will create space for an additional 1.2 million containers.
The two Japanese conglomerates will be paid Sh2.5 billion to mount cranes at the Kilindini harbour.
The multinationals won the tender as part of a deal between Kenya and Japan, which is financing the ongoing construction of a new container terminal at the Coast.
Toyota Tsusho Corporation (TTC) and Mitsui Engineering & Shipbuilding Co. beat their Japanese rivals to the ¥2.9 billion (Sh2.5 billion) contract.
“The group (TTC) and Mitsui Engineering & Shipbuilding Co. won a contract from the Kenyan government to supply port cranes to Mombasa Port,” said TTC in an April trading update.
Kenya Ports Authority (KPA) confirmed the new tender which comes soon after the ports manager awarded Switzerland-based Liebherr Container Cranes a separate Sh2.5 billion contract to also supply it with cranes.
“This is a tender for supply of cranes for the second container terminal whose funding is by the Japanese government,” KPA said in a statement.
“As per the terms of the Loan Agreement signed in 2007 between the Kenya government and Japan, the contractor, the transaction adviser and equipment are to be sourced under JICA procurement guidelines and open to Japanese companies only.”
Both contracts will involve the supply and installation of ship-to-shore cranes.
TTC and Mitsui will supply two cranes and an additional four for moving containers at the upcoming terminal.
Liebherr will supply three ship-to-shore cranes for the newly commissioned berth 19 terminal.
KPA’s award of the Sh2.5 billion contract to Switzerland-based Liebherr raised controversy last year, with rival German firm Kocks Cranes challenging the move.
READ: Anti-graft body probes KPA over Sh2.5bn cranes tender
The Public Procurement Administrative Review Board, however, upheld KPA’s decision, stating that the only reason Kocks lost was its higher bid of Sh2.7 billion.
For Toyota, the crane deal marks its deepening ties in Kenya’s economy, having opened an office in Nairobi last year to battle for contracts in the region.
The firm’s local investments include new motor vehicle dealerships Toyota Kenya, DT Dobie, and CICA Motors.
It also owns used-car dealership Toyotsu Auto Mart and is part of a consortium building KenGen’s Olkaria I and IV geothermal plants that will produce 280 megawatts of power.
Toyota is also searching for investment opportunities in the energy, oil, agricultural, and health sectors as the company ramps up its local portfolio.
For KPA, the increased purchase of cranes is part of its wider plan to increase capacity and improve efficiency at the harbour. Importing a container took an average of 26 days last year compared to 24 days in 2012, according to the World Bank’s Ease of Doing Business survey.
The delays in international trade and the attendant costs have been linked to bureaucracy and inadequate capacity at the Mombasa port to handle fast-growing cargo volumes.
The port, which was designed to handle an equivalent of 250,000 twenty-foot containers annually, now handles more than 700,000 twenty-foot containers per year.
Port authorities expect demand for cargo handling to reach 960,000 twenty-foot containers equivalent by 2015.
The port’s efficiency is, however, expected to improve with the completion of the container terminal at the Kilindini harbour that will create space for an additional 1.2 million containers.
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