Ugandan importers opt out of Kenya transport route
What you need to know:
KPA has increased the loading and discharging tariff of station wagons, saloon cars and vans by 5 per cent from $70 to $73.50.
The 1,150km Northern Corridor from Mombasa to Kampala is the preferred route, but clearing agents say that the distance is no longer an issue since the Dar es Salaam port is friendlier to its users.
Explaining the stiffer charges, KPA officials said they were seeking better efficiency at the port, which would in turn stimulate its development.
A rising number of Ugandan importers are opting to use the longer Central Corridor route — through Tanzania which is some 1,700 kilometres — to transport goods into the country, due to the Kenya Ports Authority’s decision to increase cargo handling charges.
KPA has increased the loading and discharging tariff of station wagons, saloon cars and vans by 5 per cent from $70 to $73.50.
The tariff for handling of self-propelled saloon and station wagon cars not exceeding 1.5 tonnes at the container freight station has gone up to $83.50 from $80.
The increase, announced mid March, is the third in two years.
The 1,150km Northern Corridor from Mombasa to Kampala is the preferred route, but clearing agents say that the distance is no longer an issue since the Dar es Salaam port is friendlier to its users.
“The sad thing is that KPA doesn’t even bother to consult us, even though we contribute over 75 per cent of the cargo at that port,” said Kassim Omar the chairperson of the Uganda Clearing Industry and Forwarding Association.
Mr Omar said that as a result of the arbitrary rise in the charges, the Dar es Salaam port now handles over 10 per cent of all cargo destined for Uganda, up from less than three per cent one month ago.
Grace period
Mr Omar said that freighters are also attracted to the Dar es Salaam port because it allows them a longer grace period of 15 days before importers are required to pay storage charges.
KPA has revised its grace period downwards from 11 to eight days, after which importers are required to pay $1.30 per tonne per day.
For import transit containers, the grace period at the Mombasa port is now seven days, down from nine, after which the rates increase sequentially starting from $30 for a 20-foot container and $60 for a 40-foot container.
Containers that stay more than 24 days are charged $45 (20-foot containers) and $90 for 40-foot containers.
Explaining the stiffer charges, KPA officials said they were seeking better efficiency at the port, which would in turn stimulate its development.
Efficiency has been a concern for users of the port, but KPA said that importers cannot ask for improved efficiency and at the same time request leniency when they are slow in removing their cargo.
“The Authority has invested heavily in a number of projects including the integrated security systems, ICT system, berth and yard construction, all meant to serve customers in the most efficient and competitive manner,” said KPA in a statement on its website.
