1. Growing prosperity through trade Kenya Ports Authority Media Workshop Port Efficiency and Hinterland Infrastructure A Symbiotic Relationship

2. Overview Economic Geography Ports do not exist in isolation. ‘However attractive a site 1 may be for harbour development, it cannot create a port unless the situation 2 allows the development of the all important relations with the hinterland’ On the landward side they need to connect to areas of economic productivity (typically origin or destination ports ) On the seaward side, their relationship to global sea-lanes and to other ports of significance (transshipment ports) 1.The immediate area of land and waters in which facilities are developed 2.The broad view of the port in the wider physical, human and especially economic environment *A geographical Study of the seaports of East Africa 1967

3. Overview Role of (Origin and Destination) Ports in the Transport Supply Chain Provide for the balanced, smooth and cost effective flow of cargo through the port Provide storage space required for intermodal change – mindful of different cargo carrying attributes. Handle both: – liner vessels operating on fixed routes to fixed schedules on fixed rates; – and charter (tramp) vessels which operate entirely to the demands of the person hiring them. Must cater for customs and other agency checks to ensure that goods arriving are legitimate, and that appropriate duties and fees are paid.

4. Historic Development Although Ports on the East African Coast can trace the history back many centuries, their ‘modern’ development began with: The opening of the Suez Canal The construction of railways to exploit the economic hinterland Tanga is the oldest of all the gateway ports on the East African seaboard, dating back to 1893, Mombasa 1895, Dar es Salaam 1905, Mtwara 1954

5. Historic Development

6. Tanga- Moshi Mainline (1893-1911) Mombasa-Nairobi Mainline (1896-1899) Kisumu Line (1901) Dar es Salaam- Kigoma Mainline (1905-1914) Kalemie -Kabalo Line Moshi -Voi Link-line (1924) Mwanza Line (1928)Arusha line (1929) Kampala Mainline (1931) Mpanda Line (1949) Kasese Line (1956) Tanga Link Line (1963) Kidatu Line (1965) TAZARA Mainline (1067mm Gauge) Dar es Salaam – Kapiri Mposhi (1970- 1975) Singida Line (1985)

7. Historic Development Mombasa Established in 1895 to aid construction of the Uganda Railway 1947 – 1967: East African Railways and Harbours Corporation 1967 -1977: East African Harbours Corporation 1977 – 1986: Kenya Ports Authority and Kenya Cargo Handling Services 1986 - Present Day: Kenya Ports Authority

8. Current Situation In 2011, of all volumes handled through Mombasa: 72% of all port volumes for Kenya’s domestic market 22% for Uganda 2.3% for the DRC; 1.5% for Rwanda; Less than 1% for Tanzania, Burundi, South Sudan and Somalia

9. Throughputs

10. Current Situation Major Imports: Consumer Goods Crude and Petroleum Products Industrial Machinery Vehicles Iron & Steel Plastics Grains and Fertilizers Other Dry Bulks Major Exports: Tea Coffee Cash Crops Soda Ash

11. Current Situation Kenya’s population concentrated in the central and western parts of the country; Increasing coastal population

12. Current Situation Predominantly a Corridor Port – 80% (?) of goods transported at least 500km inland

13. Current Hinterland Connectivity

15. Challenges 1.Ship/Shore performance can be affected by yard congestion caused by slow clearing and forwarding arrangements World Average Container Terminal Comparison DescriptionUnits Small Terminals Medium Terminals Large Terminals All Terminals Mombasa Terminal Quay Line Capacity TEU per m of quay per annum 3005501300-1700900533 Gantry Crane Capacity TEU per crane per annum45,00080,000130,000100,00079,902 Yard Capacity TEU per Hectare7,50014,50035,00020,00023,000

16. Challenges 2.High dwell time necessitates additional infrastructure (to handle same volumes) Domestic Imports Transit ImportsExports Empty ReturnsT'shipmentsTotals Annual Volume (a) 282,706109,941115,303242,92719,927770,804 Average Dwell Time (b) 5.48.511 15 Holding Capacity (c) 4,1822,5603,4757,32181918,358 TGS Computation (d) 1,3948536951,4642734,680 Peak Factor (e) 20% Total TGS Requirements1,6731,0248341,7573285,616

17. Challenges 3.Poor rail performance –in 2011 lifted less than 5% of port throughputs –Much of the rail network needs modification to take account of changing freight trends 4.High urban migration, poor urban planning and zoning –Planning across sectors required to achieve a balanced and smooth flow of cargo through the port 5.Poor urban road networks –All coastal traffic has to filter across Mombasa Island Need northern and southern bypasses, extension of the duel carriageway between Nyali and Mtwapa –All transit traffic routes through the center of Nairobi, Kampala and other major towns

18. Challenges

20. 6.Capacity needed (ahead of demand) to cater for Trade/Transport Growth 2  transport demand typically grows at double GDP Cargo Trade Daily Freight Task 20112015202020252030 ActualEstimated Containers (TEU/Day) 2,112 3,005 4,839 7,794 12,552 Dry Bulk (Tons/Day) 10,764 14,706 20,625 28,928 40,573 Conventional Cargo (Tons/Day) 4,025 5,056 6,766 9,054 12,117 Liquid Bulks (Tons/Day) 18,534 22,330 -

21. Challenges 7.Future cargoes will be carried on even bigger ships Need Bigger and more specialized terminals and a concentration of port facilities

22. Political Challenge Devolution to County Governments (47) Need integrated transport demand modeling ?