Inking of Sh25b loan to kickstart port's terminal two

The construction of the second phase of container terminal two at the port of Mombasa is set to kick-off, following the signing of the agreement between Kenya and the Japanese government.

Transport and Infrastructure Cabinet Secretary Michael Kamau and his National Treasury counterpart Henry Rotich on Friday signed the Sh25 billion loan agreement.

Ambassador Tatsushi Terada represented the Japanese government in an occasion witnessed by Mombasa Governor Ali Hassan Joho among others. The second phase involves the construction of berth number 22 with a quay length of 250 metres and depth of 15 metres.

Financial agreement

The construction of phase one of terminal two was financed through a loan agreement between the two governments, signed in November 2007 for 26.7 billion Japanese Yens, equivalent to $270 million (Sh25 billion).

Phase one involved reclamation works and the construction of berths 20 and 21, with draft of 11 metres and 15 metres respectively.

This was to be done together with a small berth for holding pilots, mooring and tug boats. The two berths are 220 metres and 350 metres quay length respectively, capable of handling post panama vessels.

Mr Kamau said Kenya’s main port has been experiencing rising cargo volumes over the last decade, and needed expansion to be able to cope with rising number of users. “In 2013, the port handled 22.3 million tonnes of cargo up from 21.9 million tonnes handled in 2012. In 2014, it handled a throughput of 24.7 million tonnes, utilising in excess of 90 per cent of our port capacity,” read his speech in part.

Best performing

He explained that the port handled 1,000,000, 20-feet equivalent units last year, to join the league of the best performing ports in the world. “Ports today are more than cargo handlers; they are logistics platforms that provide intermodal linkages for international trade. They must provide their services in an efficient manner and support the entire trade and logistic supply chain,” added Kamau.

He said the on-going programme will expand cargo handling capacity of the Port of Mombasa, improve efficiency, and make the port play a more catalytic role in facilitating economic development of the region.

“This is because the port serves other countries in the hinterland including Uganda, Rwanda, Burundi, Eastern Democratic Republic of Congo, South Sudan and Northern Tanzania. The assistance of your government therefore goes beyond the Kenyan boarders,” observed Kamau.