Press Center | Freight Shipping Logistics News
Traders based in Kigali, Bujumbura and Goma pay less to move goods from the port of Dar through Tanzania’s Central Corridor than from Mombasa Port through Kenya’s Northern Corridor, a new survey shows.
It costs Sh422,400 ($4,800) to transport a standard 40 foot container cargo through the Northern Corridor to Kigali, Sh572,000 to Bujumbura and Sh616,000 to Goma from Mombasa Port.
The same container transported through Dar would cost Sh378,400 to Kigali, Sh396,000 to Bujumbura and Sh413,000 to Goma, a survey conducted by the Shippers Council of Eastern Africa indicates.
The survey to be launched in Nairobi Thursday also shows that that rail transport costs per kilometre for a standard twenty foot container (TEU) is Sh108 if handled by Tanzania/Zambia Railways Authority network and Sh234 by the Kenya/Uganda network.
“It is, therefore, clear that Tanzanian shippers pay three times less freight charges for railway services than their Kenyan counterparts,” the survey says.
Traders in Kampala and Juba, however, find it cheaper to move goods from Mombasa through the Northern Corridor than Tanzania’s Central Corridor.
The high cost of shipping goods to Rwanda, Burundi and DRC is likely to thwart a campaign by the Kenya Port Authority’s (KPA) to grow its transit cargo business.
Under a strict directive from President Uhuru Kenyatta, the government agencies handling cargo at the port have significantly improved their efficiency raising the pace of goods movement within the national borders.
The changes saw the Mombasa Port dwell time (average number of days it takes cargo to leave the port terminal from the time it is offloaded from the vessel) improve from 5.8 days last year to 3.7 days by June.
Truck transit time also reduced to just three days from an average of seven days last year.
KPA officials have been betting on the improvements to stake claim on Burundi, Rwanda and DRC-bound cargo, which Kenya controlled up to 2003.
“We in Mombasa have made effort to attract this business,” KPA managing director Gichiri Ndua said in Nairobi on Wednesday.
Data prepared by KPA indicates that Mombasa Port’s transit traffic increased by only 9.6 per cent, with Uganda accounting for 77 per cent of the 3.53 million tonnes of cargo handled by the facility last year.
Rwanda traders moved only 110,540 tonnes of cargo through the Kenyan facility.
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