Nairobi meet clears way for regional shipping line

Containers are offloaded from Korea Marine Transport Container (KMTC) Shipping Line's vessel at the Mombasa Port. [Kelvin Karani, Standard] Africa's effort to regain control of its maritime trade advanced significantly in Nairobi, where regional stakeholders officially approved the draft Regional Maritime Cabotage Protocol, the legal foundation intended to support the proposed Eastern, Southern, and Northern Africa (ESNA) shipping route. The validation workshop, convened by the Maritime Organisation for Eastern, Southern and Northern Africa (MOESNA) in collaboration with the Common Market for Eastern and Southern Africa (COMESA), marked a strategic shift from broad aspiration to structured implementation. More than 140 maritime regulators, policymakers, financiers, and private-sector players from the ESNA region endorsed the refined protocol and feasibility study, thereby overcoming a key obstacle to establishing a regionally coordinated shipping line. At the core of discussions was a straightforward yet urgent question: how can Africa retain a larger share of the estimated $31 billion (Sh4 trillion) it spends annually on freight services, much of which is paid to foreign carriers? Consultants Tim Kipchumba and Dr Nancy Kairaria of Adept Blue Economy Solutions presented the revised feasibility study alongside the draft Cabotage Protocol, emphasising that the shipping line cannot operate without a binding legal framework. "Buying ships is the easiest part," Dr Kairaria told delegates. "Maintaining them in a highly competitive and capital-intensive industry requires legal certainty, cargo security, and disciplined governance. The Cabotage Protocol is the backbone of this project." The protocol proposes reserving at least 40 per cent of eligible intra-regional cargo for vessels flagged, owned, and operated within ESNA member states. Far from being a protectionist move, stakeholders described cargo reservation as a risk-mitigation tool essential for attracting investors. Under the draft framework, vessels involved in cabotage trade must be flagged in an ESNA nation, registered and insured locally, and licensed on a renewable five-year cycle under mutual recognition arrangements. Operators will be required to maintain a permanent office in their country of operation to ensure accountability and regulatory oversight. While the workshop validated the protocol at the regional level, speakers were clear that the next crucial step is domestication. Each member state must incorporate the protocol into national legislation, enhance maritime administrations, and align regulatory systems. MOESNA Secretary General Kassim Kaziba Mpaata framed this as a matter of strategic urgency. "Despite our strategic coastlines and ports, our region remains overly dependent on foreign shipping," he said. "Without ships, we cannot create maritime jobs. Without legal protections, we cannot develop sustainable operators." Participants warned against repeating past failures that led to the collapse of earlier national and regional carriers, citing weak governance, political interference, and fiscal overexposure. In response, the revised feasibility study adopts a public-private partnership (PPP) model that separates regulatory oversight from commercial operations and embeds strict governance safeguards. Governance was given the highest importance-25 per cent-in the multi-criteria assessment framework, reflecting consensus that commercial discipline must outweigh political considerations. The study recommends a cautious, phased rollout. An initial fleet of five vessels, estimated at US$61 million, would be deployed over three years under a PPP structure. Instead of rushing into outright purchases, the consultants suggest starting with chartered vessels to test routes and build operational experience. Financial modelling was extensively examined during the workshop. Delegates questioned resilience to market shocks, fuel price volatility, foreign exchange risks, and costs related to carbon compliance.

Nairobi meet clears way for regional shipping line

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