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Mombasa loses 17pc cargo to Dar, causing congestion

Friday October 04 2024

The delays have led to some fresh produce exporters opting for Mombasa to ship their cargo because of its shelf life.

IN SUMMARY

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The Mombasa port has lost 17 per cent of transit cargo to Dar es Salaam leaving its management scrambling to stem the leakage of business to the Tanzanian rival.

But, while Dar savours the new tidings, it has a growing problem of congestion, which has caused a surge in demurrage charges due to delays in cargo clearance.

The throughput growth in Dar is attributed to efforts by Tanzania to woo exporters and importers to its main port. But now port congestion has become a thorn in recent weeks, and it is expected to worsen in coming days with 15 ships expected to arrive in the next 30 days, according to global vessel tracker, vesselfinder.com. 

Read: Mombasa benefits as Dar port deals with congestion

The situation is different to Mombasa port, which has recorded improved vessel and trucks turnaround time, thanks to its shrinking customer base.

A surge of container traffic has been witnessed in the past few months, where the Dar port is handling about 100,000 twenty feet equivalent unit per month, 50 per cent more than earlier this year.

The delays have seen some fresh produce exporters opt for Mombasa to ferry their cargo considering their shelf life. 

"Fresh produce cargo has increased through the Port of Mombasa as a result of efficiency. We have several containers from Tanzania being handled in Mombasa since such perishable products need to be exported on time," KPA managing director Capt. William Ruto said.

The Tanzania Revenue Authority and Tanzania Ports Authority this week introduced measures to reduce congestion in its main port. 

Stakeholders agreed to allow containers to be loaded onto ships before finalisation of scanning reports to accelerate cargo movement within terminal at the port. 

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TPA director-general Plasduce Mbossa acknowledged the frustrations caused by the delays but stressed importance of adhering to safety protocols. 

"Cargo owners feel they are being delayed but those conducting scans are fulfilling their duties to ensure 100 percent safety," Mr Mbossa said. "According to our charter, scanning should take 30 minutes or less, and if it takes longer, it's a rare case and solutions are being sought to ensure everything goes smoothly."

Meanwhile, the Kenya Ports Authority (KPA) has announced new promotional tariffs for containerised cargo destined to the Inland Container Depot Nairobi and container freight stations for six months up to February 15, 2025.

The deal also covers shore handling charges and free storage period for imported containerised cargo transported by train. Before the new tariffs, traders were charged about $145 for a 20 feet container and $200 for a 40 feet container.

Read: Mombasa, Dar cargo volumes keep rising with competition

In the new tariff, KPA has announced shore handling rates applicable for imported containerised cargo railed to the ICDN and transferred to Nairobi-based CFSs at $103 for 20 feet container while that of 40 feet container will cost $157.

Shippers are happy with the development, with their association CEO Agayo Ogambi saying they are enjoying better efficiencies which have seen cargo dwell time averages 3.5 days.

“Over 90 percent cargo is cleared within the free period and less than 12 percent cargo is verified at the ICDN,” he said. 

Mr Ogambi said the promotional rates must be augmented with enhanced and predictable rail services. Any delays would negate the intended objectives of the promotional rates. 

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