Envoys criticise new container terminal deal

British High Commissioner Nic Hailey speaks during her majesty the Queen’s birthday who turned 90 years taken on 16th June 2016. [Wilberforce Okwiri, Standard]

Four Foreign Embassies have criticised the privatisation deal of the second Container terminal at the Port of Mombasa.

In a letter dated June 4, and addressed to the Ministry of Foreign Affairs and that of Transport, the Embassies of Denmark, France, Japan and the British High Commission say the ongoing privatisation process grants operation of the container terminal to a single operator without any competition, and lacks transparency.

The container terminal was developed as part of an agreement with the Government of Japan, where funding was provided to construct a modern port to enable trade and create employment opportunities for Kenyans. The agreement stipulated that the new container terminal would be managed by an independent and professional operator selected in a transparent manner to create a level playing field for all port users so that the expected benefits would be passed on to the Kenyan people.

“This terminal is the most modern facility of the Port of Mombasa, the management of which international operators would appreciate to be invited to compete for through an open and transparent bidding process, where they could demonstrate their ability as such,” stated the envoys.

“We would like to jointly express our strong concern on the above described situation arising from the proposed plan, and to request that a transparent selection plan be carried out to entrust the management of the CT2 to an international operator through an open and transparent bidding process,” they said.

The complaint follows recent instructions to Kenya Ports Authority to initiate talks with Kenya National Shipping Line Ltd (KNSL) to take over the terminal that comprises berth numbers 20 and 21.

The KNSL is owned 53 per cent by the Government of Kenya, whereas 47 per cent is understood to be owned by Mediterranean Shipping Company. The law guiding the running of the facility was yesterday passed in Parliament as proposed by President Uhuru Kenyatta in a memorandum to the House.