Union, Experts Split On Plan to Privatise Mombasa Port

Players in the Kenyan maritime sector are divided on the ongoing debate on the privatisation of Mombasa port. Most want the cargo handling operations privatised, while others say that under the regulatory framework, privatisation will create more inefficiency. Kenya Transport Association (KTA) chairman Paul Maiyo said the government had no business in port operations. "We would like to see a situation where Kenya Ports Authority becomes a landlord port and gives operators certain levels of performance," Mr Maiyo said, adding that most successful ports in the world were privatised. He, however, said the process of privatisation must be transparent. "We should not see a situation where expatriates are brought to do jobs that can be done by Kenyans," he added. But Kenya Shippers Council executive officer Gilbert Langat said the country had not yet created sufficient institutional reforms to guarantee the operation of a privatised port. "Based on the Container Freight Stations experience, lack of regulatory measures may create inefficiencies at the port if privatisation is carried out within the current environment," he said. Kenya Ships Agents Association chairman David Mackay said privatisation of the container terminal would improve efficiency at the port. Kenya International Freight and Warehousing Association chairman Hezron Awiti supported the process, but said that it should be above board and bring in professionals. On their part, the labour movements at the port of Mombasa remain determined not to permit any privatisation of the Kenyan port, in particular container terminal development involving berths 11 to 14. This is despite a warning by the World Bank that the port is rapidly nearing saturation and will not be able to handle additional volumes without expansion. Analysts say the port will lose its competitiveness unless the new container terminal is able to develop. The Port Master Plan as revised in 2009 identified the key role to be played by the private sector in the expansion plans for Mombasa. However the Master Plan did not examine institutional, regulatory or legal changes necessary. While port handling figures have not yet been made available, it is expected that Mombasa will shortly exceed 20 million tonnes of cargo a year. The Master Plan envisaged the port becoming a Landlord type port with the Kenya Ports Authority assuming that role and the private sector taking on the various cargo handling terminals. Berths 11-14, originally designed for breakbulk, are seen as the future second container terminal for the port.