How rising costs at Mombasa Port are driving up South Sudan imports

Mombasa Port. [Photo, Courtesy] South Sudanese importers are facing a crisis at Kenya's Mombasa port, where they claim inefficiencies in managing empty shipping containers have driven the cost of imported goods to triple. Delays in returning containers, coupled with port congestion and high security bonds, are strangling trade for the landlocked nation, inflating retail prices. Addressing a sensitisation forum on empty containers from South Sudan in Mombasa yesterday, Northern Corridor Transit and Transport Coordination Authority (NCTTCA) Executive Secretary John Deng warned the situation poses a threat to regional trade. "Today, we address a pressing logistical and financial challenge: the management of empty containers in South Sudan. This issue continues to impose significant burdens on transporters, traders, and government agencies, affecting the efficiency and cost of regional trade," he said. South Sudan's Ambassador to Kenya, Anthony Kon, and his Ugandan counterpart, Paul Akaro, were among other senior officials and the private sector at the forum. Currently, a deposit of $5,000 (Sh645,000) is required for each container transporting goods to South Sudan. Once delivered, only 28 days are allowed for the return of the empty container. Deng explained that any delays beyond this period incur substantial demurrage charges. For 40-foot containers, the first seven days attract a fee of $40 (Sh5,160) daily, followed by $70 (Sh9,030) daily for the next seven days, and $100 (Sh12,900) thereafter. For 20-foot containers, the charges are $20 (Sh2,580) per day for the first seven days, $35 (Sh4,515) daily for the next seven days, and US$50 (Sh6,450) thereafter. Deng noted that in some cases, traders are compelled to pay replacement fees ranging from $3,000 (Sh387,000) to $6,000 (Sh774,000), depending on the age and condition of the container. Participants explored the possibility of establishing empty container depots in key locations in Mombasa, Kampala and Nesitu, Kaya, Nimule and Nadapal in South Sudan to address the logistics challenges. They also discussed the development of inland container depots to decentralize logistics services, explore the implementation of electronic cargo tracking systems to enhance transparency, promote cargo handling, provide warehouses and enhance data collection. 'This situation underscores the urgent need for coordinated policy interventions, improved logistics infrastructure, and regional dialogue to ease the burden of container management and facilitate smoother trade flows,' said Deng. The forum was in response to an official request from the government of South Sudan to NCTTCA to explore practical and collaborative solutions to lower the cost of goods in that country which is a member of the northern corridor states. Mr Kon noted in South Sudan imported goods cost about three times their prices in the source market because of logistics hurdles that include empty container issues. He noted that South Sudan businesspeople in Mombasa are the heartbeat of his country's economy adding that nations like Singapore and the Netherlands have flourished by mastering logistics and supply chains. 'Goods cost three times more in South Sudan because of the transport logistics involved. The resolutions of this forum will be shared with government agencies and stakeholders in South Sudan and implemented,' he assured. Meanwhile, Kon, said his country remained firmly anchored in the Port of Mombasa and was seeking closer cooperation with the Kenya Ports Authority (KPA) to cut trade costs for importers. During a courtesy call on KPA managing director Captain William Ruto at the authority's headquarters, Kon reaffirmed Juba's commitment to regional partnerships. "South Sudan is here to stay. We are committed to working with our neighbours until the very end," he said. "We want to work hand in hand with KPA to ensure goods reach our country more affordably by cutting down on transit costs," Kon added. Captain Ruto welcomed the envoy and pledged KPA's continued support for South Sudan's growing cargo volumes. "We need to hold each other's hands to succeed. South Sudan is our second-largest transit destination, and we are determined to make cargo movement more efficient," he said. He added that the authority valued partnerships and collaborations to streamline services for the mutual benefit of all partners. He said Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor, was the future of trade between Kenya and South Sudan, noting that only small sections of the road network remain to be completed. "LAPSSET is actually going to be a boon for South Sudan - that is where the future lies for both of us," he said. South Sudan is currently the second-largest transit market through Mombasa Port, after Uganda. The port handled more than 1.7 million tonnes of South Sudan cargo last year.

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