KPA, KRA bosses meet Mombasa port players as congestion persists

Kenya Revenue Authority (KRA) Commissioner General Humphrey Wattanga and Kenya Ports Authority (KPA) Managing Director William Ruto have jointly reaffirmed the government’s commitment to enhance efficiency at the port of Mombasa.

The port is currently experiencing congestion and empty container depot capacity crisis. It has been facing congestion challenges since it received rising cargo volumes in the last quarter of last year leading to protests among stakeholders.

Speaking during a stakeholder engagement meeting at the port on Friday, the two executives underscored the need to streamline and strengthen port operations.

The forum brought together key players in the logistics chain, including shipping lines, clearing and forwarding agents under the Kenya International Freight and Warehousing Association (KIFWA), transporters and other players in the maritime sector.

KPA and KRA recently unveiled a joint set of measures aimed at reducing cargo dwell time and expediting customs clearance processes.

The interventions then read out by Captain Ruto (pictured) and KRA’s Commissioner of Customs and Border Control Lilian Nyawanda stated that all long-stay containerised cargo at the port will be transferred to the customs licensed peripheral facilities.

The two said containerised cargo destined for Mombasa will be transferred to Container Freight Stations (CFSs) for final clearance, containerised cargo destined for Nairobi and other upcountry destinations will be railed to the Nairobi Inland Container Depot (ICD) while containerised cargo destined for Uganda will be transferred to the Naivasha ICD for clearance.

In a bid to encourage evacuation of containerised cargo, KPA and KRA agreed to waive accrued storage and warehouse rent for long-stay cargo on lodgement of waiver application by the affected customers for a period of 30 days.

“Considering the prevailing circumstance, the shipping lines are directed to waive container detection and accrued demurrage charges for the exercise to be successful. All primary port charges, rail freight charges, shipping line fees and statutory taxes remain payable,” said the communique aimed to address growing congestion at the port.

KPA and KRA agreed to implement full 24-hour port operation and to have transshipment cargo handled at the Lamu port so as to decongest Mombasa port.

The interventions made in November last year are part of a broader government strategy to improve cargo evacuation, particularly for long stay containers, and reinforce the Northern Corridor’s competitiveness as the region’s primary trade artery.

But several stakeholders, including Shippers Council of East Africa (SCEA), Kenya Association of Manufacturers (KAM) and Kifwa have complained about the port congestion and empty container capacity crisis and called for measures to address the operational hurdles.

Last week, Ruto issued a fresh notice to shipping and agents handling container vessels aimed at addressing the empty container evacuation and related operational challenges at the port.

The ports chief noted that vessel agents and shipping lines should submit projected empty container loading requirements at least seven days prior to vessel arrival.

Ruto said KPA will allocate empty container space per berth capped at 2000 to 2,500 Twenty Foot Equivalent Units (Teus).

“Any request to exceed allocation must receive written approval from the head of container terminal at least 72 hours before vessel arrival or planned berthing,” he said.

Ruto said gate-in of empty containers intended for loading shall close 24 hours prior to vessel berthing.

He noted that loading of empty containers ex-depot or ex-Standard Gauge Railway (SGR) will not be permitted while the vessel is alongside.

Ruto stated that all full export cargo must be fully documented and gated into the port 36 hours before berthing of the carrier vessel.

“No vessel shall be planned for berthing unless the discharge list, export full loading list and empty container loading list have been submitted and approved,” he directed.

He also noted that allocated empty containers shall be managed exclusively by the respective shipping lines.

“With regards to consortium or school bus operations, the lead agent shall assume full responsibility for planning, allocation, and coordination of empty container slots among consortium partners,” he added.

According to Ruto, empty containers delivered ex-ICD for loading shall be allocated a maximum dwell time of 24 hours at the Port Reitz offloading zone.

Containers exceeding this dwell time will be relocated by KPA at the full cost of the respective shipping line.

“These measures are intended to improve berth productivity, reduce congestion and ensure equitable and efficient utilisation of terminal capacity,” he said.