1. A REVIEW OF MOMBASA PORT PERFORMANCE, CAUSES OF CONGESTION AND WAY FORWARD

2. Presented by: Eng.Joseph Atonga Chief Operations Manager Kenya Ports Authority. On 25 th September, 2008

3. THE PRESENTATION COVERS: 1. PORT PERFORMANCE. 2. CAUSES OF CONGESTION. 3. ATTEMPTED SOLUTIONS.

4. THE GLOBAL PICTURE The following factors have impacted negatively on ports capacity globally Global container port throughput has grown substantially in the last few years Growth in transshipment more rapid than Direct import/export Increase in hub-and spoke distribution of containers Increase ship size. Over 70% ships ordered over 7000 TEUs Empty containers represent over 20% Lead time for delivery of STS now close to 2 years

5. IN THE REGION Economic growth and stability in of the East and Central Africa region Port of Mombasa strategically placed regionally. Ongoing Improvement of road infrastructure Transshipment cargo for Island Regional economies

6. PORT PERFORMANCE – TOTAL THROUGHPUT 2003 - 2007

7. PORT PERFORMANCE – TOTAL THROUGHPUT – COMPARATIVE ANALYSIS JAN-JUN 2007 / JAN – JUN 2008 The port has already registered a 3% increase compared to the same period last year

8. PORT PERFORMANCE – DELIVERIES BY ROAD AND RAIL FOR JANUARY UPTO AUGUST 2008

9. CARGO THROUGHPUT JAN – JUN. 2008/07 (‘000’DWT) Category20082007 Change Volume % Total Imports 6,427 6,2721552.5 Dry General 2,361 2,376-15-0.6 Dry Bulk 1,314 1,10720718.7 Bulk liquids 2,752 2,789-38-1.3 Total Exports 1,325 1,250756.0 Dry General 1,120 1,01810210.0 Dry Bulk 100 136-35-26.1 Bulk liquids 105 9699.3 T/Shipment 267 1937438.4 Total 8,019 7,7153043.9

10. MARKET SEGMENTATION JAN-JUN % %CHANGE 2008SHARE2007SHAREVolume% DOMESTIC5,47668.35,38769.8891.7 TRANSIT2,27628.42,13527.71416.6 TRANSHIP MENT2673.31932.57438.4 TOTAL8,0191007,7151003043.9

11. CONTAINER TRAFFIC JAN – JUN 2008/07 (TEUs) 20082007Growth Share 2008 Share 2007 JAN-JUN FULL209,348197,0436.269.570.3 EMPTY91,95283,28510.430.529.7 Total301,300280,3287.5100.0 Imports140,842134,8784.446.748.2 Exports138,187127,6848.245.945.5 Transhipment22,27117,76625.47.46.3 Total301,300280,3287.5100.0

12. TRANSIT TRAFFIC JAN-JUN 2008/07 (DWT) CHANGE SHARE 20082007 VOLUM E % CHANG E20082007 UGANDA1,726,395 1,651,17 375,2224.675.877.3 TANZANIA110,133111,223-1,0904.85.2 BURUNDI19,40328,245-8,842-31.30.91.3 RWANDA151,780128,82922,95117.86.76.0 SUDAN107,17879,16328,01535.44.73.7 D.R.C.149,143128,19520,94816.36.66.0 SOMALIA11,1008,2772,82334.10.50.4 OTHERS1,021210811386.00.0 TOTAL2,276,152 2,135,31 5140,837461.9100.0

13. CONTAINER TRAFFIC JANUARY 2006 - SEPTEMBER 2007 (TEU'S) TRANSIT TRAFFIC JAN,2007 – JUN,2008 (DWT)

14. Measures of Performance Jan - Jun. 2008/07 Moves Performance/24hr Vessel Performance Total20082007 MovesTEUs Gross NetGrossNet Total/Average 130,745167,520 228.8 282.7236.0270.6 20082007Volume Change Avg. Turnaround Time (Days) 4.24.00.2 Avg. Dwell Time (Days) 13.113.2-0.1 BERTH OCCUPANCYJAN-JUNE, 2008JAN-JUNE, 2007% CHANGE Mombasa Container Terminal 85.2 88.8-3.6 Conventional Cargo 48.4 40.67.8 Shimanzi Oil Terminal 56.3 64.3-8.0 Kipevu Oil Terminal 77.9 82.1-4.3 Mbaraki 49.0 64.9-15.9

15. CONGESTION AT THE CONTAINER TERMINAL YARD POPULATION IN UNITS FOR JAN TO SEP 2008.

16. FACTORS AFFECTING CONTAINER TERMINAL PERFORMANCE  Rapid increase of container traffic volumes  Importers use the port as a storage area Average dwell time of 13.1 days  Poor off take by rail. Rail now handling only 6%  Lack of adequate capacity by road and poor road infrastructure.  Long bureaucratic cargo clearance processes  Capacity constraint

17. FACTORS AFFECTING CONTAINER TERMINAL PERFORMANCE  Inadequate equipment to handle the growing traffic  Changing routing patterns i.e. shorter rotations. Mombasa is now a feeder port.  Deployment of additional vessels by shipping lines  New shipping Lines  Deployment of unsuitable vessels  Changing box ratio. More 40 foot containers(45/55)  Bunching of vessels & unscheduled arrivals  Overbooking of cargo by shipping lines, causing cancellations and Rollovers  Late submission of clearance documents  Delayed Submission of Ships manifests

18. MEASURES SO FAR TAKEN TO EASE CONGESTION 1.Implemented 24/7 working arrangement in loading, Delivery, Verification and gate operations 2.Appointed 2 private Container Freight Stations (CFS) to handle container overflows as from October 2007. 55,000 TEUs so far transferred to the CFSes 3. Ongoing consultations to include more CFSes 4. Discussions on modalities to transport ICD-Bound cargo on Through Bills of Lading by road are ongoing. 5 Granted stevedoring license to Messina Line 6. Increasing yard capacity from 5000TEUs to 14300TEUs

19. 7. Dedication of berth 13 and 14 for use by Mearsk: All Maersk ships only work at Berths 13 & 14 Maersk supplemented KPA equipment with their own. This arrangement took effect 1 st June 2007 as a temporary measure to improve on ships turnaround time. Implementation of Kilindini Waterfront Automated Terminal Operating System(KWATOS) went live 01.07.08 MEASURES SO FAR TAKEN TO EASE CONGESTION

20. Kwatos Go-live Challenges Data Uploads and Migration End-user adaptation Information flow from shipping agents Information flow from Kenya Revenue Authority Network instability Truck registration User registration Five (5) Day working week

21. Deliveries After Go Live

22. Expected Business impact post -kwatos Improved port efficiency through electronic collection, capture and dissemination of planning and operational data Integration with CBS will allow for data exchanges and interactions with trade community stakeholders Overall Results –Faster delivery of cargo & reduced cargo dwell time –Fewer displacements & resources required from port users –Enhanced efficiency of port infrastructure and human resource

23. Rapid increase of traffic to continue More dependence on road for off take Implementation of three axle Rule for road hauliers will lead to more containers in the port Container dwell time must be reduced THE CHALLENGES

24. Two STS cranes and 10 RTGs to be acquired To build berth 19 as an extension of berth 18. Construction of a 2nd container terminal Expected to be ready by 2015 and will handle 1.2 million TEUs annually. Phase 1 to ready by 2013 Dredging of the shipping Channel to 15meters Utilization of small ports Development of a second commercial ports MEDIUM/LONG TERM INITIATIVES

25. DEVELOPMENT OF THE 2 ND COMMERCIAL PORT Port capacity to be exhausted by 2020 Possible Sites: Lamu Kilifi Shimoni

26. Proposed New Container Terminal Plan

27. . THANK YOU