Kenya Ports Authority (KPA) management has allayed fears that the second container terminal, to be operated by a private firm, will take away business and cause possible lay-off of workers.
Dock Workers Union (DWU) had opposed the deal over fears that the private concessionaire, being sought by the authority, may cause 1,000 port workers to lose their jobs.
But KPA Managing Director Gichiri Ndua has said there is high growth potential in containerised cargo and even with the second container terminal coming up, the Port of Mombasa will not have adequate capacity for it.
“There will be more than enough business for the whole Port while we expect to grow transshipment. Our growth is and will be limited by capacity,” he said.
Mr Ndua said the existing container terminal is overstretched with occupancy of over 94 per cent as of last year when it handled 1012002 twenty foot equivalent Units (Teus).
EXPECTED CHANGES
“We expect 1.3 million teus this year. In 2016 we expect 1.5 million teus. This would mean more than 150 per cent capacity utilisation which would be more than double the recommended level of utilisation,” he said.
Government has been building the Sh28 billion second container terminal with a capacity of 1.2 million twenty foot equivalent units (teus) to be concessioned to a private firm but the union has been mobilizing Coast MPs, residents and port workers to oppose the deal over fears of possible job losses.
DWU Secretary General, Simon Sang, at the weekend said the union had earlier wanted the concessionaire to be restricted to handling transshipment and leave ‘traditional’ business to the existing terminal but the Government refused to respond to its proposals.
“The solution now lies in mass action to ensure that no concessioning takes place at the second container terminal. We are mobilising politicians, residents and port workers and we will hold mass action,” Sang said.
At the same time, the union said it ready to sign a performance contract with KPA at the end of this month aiming at doing 27 moves per hook per crane in one hour as compared to 26 moves by the port of Durban in South African which has similar equipment.
“These contracts will be signed by the union on behalf of its members. We do not mind individual workers signing since we are sure of meeting these targets,” he said.
The union boss said DWU’s leadership met the new KPA chairman Marsden Madoka last week to express opposition to the ongoing concessioning of the second container terminal and to advocate for performance contracts to raise productivity levels at the port.
The second container terminal under construction has a total capacity to handle 1.2 million teus a year.
Firms shortlisted in the tendering process to run the new container terminal include Chinese based China Merchant Holdings, Netherlands-based APM Terminals BV and Dubai-based DP World Ltd.
Some companies submitted joint bids between regional and local firms.
They include multinational giants such as Cosco Pacific Ltd, Bollore Logistics, Toyota and Kamigumi Company Ltd bid as a consortia as well as Grup Maritim TCB, SL, Mitsubishi Corporation and Freight Forwarders Kenya.
But Sang argued that the concessioning exercise was in breach of the recognition agreement between the union and KPA and therefore should be suspended.
PUBLIC AGENCIES
He also claimed it was ironical that some countries like Dubai, Singapore and South Africa were bidding to run the Mombasa second container terminal while their own terminals are operating as public agencies and are efficient.
Sang said the union’s top brass has so far met with nine Coast MPs as it lobbies for Government to cancel the concessioning tender.
He also said the union is in agreement with the Authority that no alterations will be made to the employee’s terms and conditions of service without prior notification, consultation and negotiation with the Union.
The union boss then faulted KPA of ignoring this clause by planning to privatise berths number 20-21 and later 22 and 23 without prior involvement of the union since doing this has capacity to render as many as 1,000 employees redundant.
"Currently a law on parastatal reform, which will considerably restructure the way ports are managed and operated, is being enacted in Parliament.
Therefore, to at the same time undertake to privatise sections of the Port will only cause confusion and may result in failure of the whole process and waste of resources," he said.
