Transporters want cargo deal cancelled

Transporters want the Kenya Ports Authority (KPA) to cancel a deal that gives a firm associated with former Mombasa Governor Hassan Joho exclusive rights to transport cargo to South Sudan.

The Kenya Transporters Association (KTA) has questioned why KPA continues to rail cargo to Autosports Freight Terminal Ltd despite a directive by President William Ruto to revert all port operations to Mombasa.

The lobby in a letter dated December 7 to KPA Managing Director John Mwangemi notes that during a meeting between President Ruto and his South Sudanese counterpart Silver Kiir in Juba on December 3, it was agreed that traders from both countries should have the freedom to choose the clearing agent for their cargo.

"Kenya Ports has been forcefully railing goods destined to South Sudan through Autoports Freight Terminal Ltd after the clear directive by President Ruto. Kindly confirm that the notice to the shipping lines and shipping agents has been vacated immediately," reads the letter signed by the KTA Chief Executive Newton Wang'oo in part.

Concessionary terms

"Kindly confirm that KPA has stopped forthwith to rail goods destined to South Sudan automatically to Autoports Freight Terminal Ltd in Nairobi without reference and or with clear instructions from the traders."

The letter is copied to the Office of the President, Roads and Transport Cabinet Secretary Kipchumba Murkomen, Kenya Maritime Authority acting Managing Director John Omingo, and Kenya Ships Agents Association Chief Executive Juma Tellah.

Others are Roy Mwanthi, Chairman, of Kenya International Freight and warehousing Association, Mombasa, and Daniel Nzeki, Chief Executive Officer, of Container Freight Stations Association.

In August last year, the Joho family firm was awarded a contract on concessionary terms to run a government-funded inland cargo terminal inside Inland Depot in Nairobi in 2018 and also won a lucrative deal to handle all South Sudan imports at its Nairobi Freight Terminal (NFT).

In the deal, Autoports Freight would pay a discounted freight tariff of Sh50,000 per wagon of 60 tonnes for a decade and another waiver of stand premium and annual rent premium for 10 years.

It also got an automatic renewal of its 45-year lease and a termination clause period of 24 months should the ports decide to stop the deal. Legally, KPA can only give a maximum volume discount of 10 per cent.