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

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A REVIEW OF MOMBASA PORT PERFORMANCE, CAUSES OF
CONGESTION AND WAY FORWARD
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Presented by Eng.Joseph Atonga Chief Operations
Manager Kenya Ports Authority. On 25th September,
2008
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THE PRESENTATION COVERS

• 1. PORT PERFORMANCE.
• 2. CAUSES OF CONGESTION.
• 3. ATTEMPTED SOLUTIONS.

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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

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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

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PORT PERFORMANCE TOTAL THROUGHPUT 2003 - 2007
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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
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PORT PERFORMANCE DELIVERIES BY ROAD AND RAIL
FOR JANUARY UPTO AUGUST 2008
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CARGO THROUGHPUT JAN JUN. 2008/07 (000DWT)
Category 2008 2007 Change Change
Category 2008 2007 Volume
Total Imports 6,427 6,272 155 2.5
Dry General 2,361 2,376 -15 -0.6
Dry Bulk 1,314 1,107 207 18.7
Bulk liquids 2,752 2,789 -38 -1.3
Total Exports 1,325 1,250 75 6.0
Dry General 1,120 1,018 102 10.0
Dry Bulk 100 136 -35 -26.1
Bulk liquids 105 96 9 9.3
T/Shipment 267 193 74 38.4
Total 8,019 7,715 304 3.9
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MARKET SEGMENTATION MARKET SEGMENTATION MARKET SEGMENTATION MARKET SEGMENTATION MARKET SEGMENTATION MARKET SEGMENTATION
JAN-JUN JAN-JUN CHANGE CHANGE
2008 SHARE 2007 SHARE Volume
DOMESTIC 5,476 68.3 5,387 69.8 89 1.7
TRANSIT 2,276 28.4 2,135 27.7 141 6.6
TRANSHIPMENT 267 3.3 193 2.5 74 38.4
TOTAL 8,019 100 7,715 100 304 3.9
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CONTAINER TRAFFIC JAN JUN 2008/07 (TEUs)
  2008 2007 Growth Share 2008 Share 2007
  JAN-JUN JAN-JUN   Share 2008 Share 2007
FULL 209,348 197,043 6.2 69.5 70.3
EMPTY 91,952 83,285 10.4 30.5 29.7
Total 301,300 280,328 7.5 100.0 100.0
Imports 140,842 134,878 4.4 46.7 48.2
Exports 138,187 127,684 8.2 45.9 45.5
Transhipment 22,271 17,766 25.4 7.4 6.3
Total 301,300 280,328 7.5 100.0 100.0
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TRANSIT TRAFFIC JAN-JUN 2008/07 (DWT)
      CHANGE CHANGE SHARE SHARE
  2008 2007 VOLUME CHANGE 2008 2007
UGANDA 1,726,395 1,651,173 75,222 4.6 75.8 77.3
TANZANIA 110,133 111,223 -1,090 -1.0 4.8 5.2
BURUNDI 19,403 28,245 -8,842 -31.3 0.9 1.3
RWANDA 151,780 128,829 22,951 17.8 6.7 6.0
SUDAN 107,178 79,163 28,015 35.4 4.7 3.7
D.R.C. 149,143 128,195 20,948 16.3 6.6 6.0
SOMALIA 11,100 8,277 2,823 34.1 0.5 0.4
OTHERS 1,021 210 811 386.0 0.0 0.0
TOTAL 2,276,152 2,135,315 140,837 461.9 100.0 100.0
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TRANSIT TRAFFIC JAN,2007 JUN,2008 (DWT)
CONTAINER TRAFFIC JANUARY 2006 - SEPTEMBER 2007
(TEU'S)
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Measures of Performance Jan - Jun. 2008/07
BERTH OCCUPANCY JAN-JUNE, 2008 JAN-JUNE, 2007 CHANGE
Mombasa Container Terminal 85.2 88.8 -3.6
Conventional Cargo 48.4 40.6 7.8
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
  2008 2007 Volume Change
Avg. Turnaround Time (Days) 4.2 4.0 0.2
Avg. Dwell Time (Days) 13.1 13.2 -0.1
      Moves Performance/24hr Moves Performance/24hr Moves Performance/24hr Moves Performance/24hr
Vessel Performance Total Total 2008 2008 2007 2007
Vessel Performance Moves TEUs Gross Net Gross Net
Total/Average 130,745 167,520 228.8 282.7 236.0 270.6
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CONGESTION AT THE CONTAINER TERMINAL
YARD POPULATION IN UNITS FOR JAN TO SEP 2008.
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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

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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

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MEASURES SO FAR TAKEN TO EASE CONGESTION

• Implemented 24/7 working arrangement in loading,
  Delivery, Verification and gate operations
• 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

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MEASURES SO FAR TAKEN TO EASE CONGESTION

• 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 1st 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

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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

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Deliveries After Go Live
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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

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THE CHALLENGES

• 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

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MEDIUM/LONG TERM INITIATIVES

• 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

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DEVELOPMENT OF THE 2ND COMMERCIAL PORT

• Port capacity to be exhausted by 2020
• Possible Sites
• Lamu
• Kilifi
• Shimoni

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Proposed New Container Terminal Plan
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.

• THANK YOU