Sh14 billion second port to be put up in Kisumu County

A stalled ship at Kisumu old port yesterday. The Government plans to put up a new port in the region to handle bigger vessels. (PHOTO: COLLINS ODUOR/ STANDARD)

The national government is negotiating with a Chinese bank for a Sh14 billion loan to fund construction of a second port in Kisumu.

Transport and Infrastructure Principal Secretary Wilson Irungu yesterday announced that plans to build a modern port had reached advanced stages.

He said the site for the Sh14 billion lake port had been identified at Kisian, six kilometres south of the current location, and the Government was close to inking a financial agreement with China Exim Bank to finance its construction.

He said feasibility studies had also mapped out an extension route for the standard gauge railway (SGR) which will reach Kisumu in the next phase of construction. A nine-kilometre stretch built off the Naivasha-Kisumu-Malaba line will terminate at the port where a logistics hub is also planned.

The construction of the port by China Road and Bridge Company (CRBC) is expected to begin sometime next year, building impetus to the growth of Kisumu as East Africa’s trade hub.

“We have signed commercial agreements with CRBC and we expect to close the financial agreement with the Export-Import Bank of China (China Exim) early next year after which construction will begin,” said the PS.

The new location, he said, had been chosen due availability of large tracts of land for expansion and for setting up of a logistics hub and an industrial park to revitalise EAC hub ambitions.

The CRBC will construct modern berths, state-of-the-art cargo handling equipment and dredging the access channel to enable the port to handle bigger vessels.

The Kenya Ports Authority has said it would bring in larger vessels than those that berthed at the old port to double stakes in maritime trade in the region.

Series of upgrade

Meanwhile, the current pier is set to undergo a series of upgrades that would breathe a new lease of life into it.

Speaking when he visited the Kisumu port yesterday, the PS said plans were in the pipeline to start revamping the old port.

“The port still has business and will play a key role in the envisaged expansion.

“We are working with the Rift Valley Railways which operated the Kenya-Uganda railway concession) to ensure that the current port is revamped to set the pace for new port and complement it,” Irungu said.

Kisumu Governor Jack Ranguma, who chairs a regional economic bloc which brings together 13 counties, described the planned port as a major boost as it would lure investors to venture the region, leading to growth and employment opportunities.