Inside state plan to expand ports

Kenya Ports Authority (KPA) is in the race to implement its multi-billion-dollar expansion and modernisation plan to handle a projected 47 million metric tonnes in five years.

In 2024, KPA, the country's ports operator, handled 41.1 million tonnes of cargo, representing a 14.1 per cent increase from 36.0 million tonnes handled in 2023.

At the heart of the expansion is the construction of Phase Three of the Second Container Terminal to increase the port's capacity by 500,000 Twenty-Foot Equivalent Units (TEUs).

A feasibility study has recently paved the way for a modern 350-metre berth with a 15-metre draught, with KPA already engaging the Japan International Cooperation Agency (JICA), which will spearhead its development.

It is not clear how much the project will cost, but phase I of the second container terminal that was financed by JICA at the cost of Sh26 billion.

The total cost for Phase 2, including three berths, yard space, and equipment, was approximately Sh32 billion at roughly Sh10 billion to Sh13 billion per berth.

Shipping and Logistics has established that most big projects financed by either China or Japan come with the condition guaranteeing their firms the tenders or right to select one.

Meanwhile, KPA will also decommission the old Kipevu Oil Terminal 1 and, in its place, construct Berth 19B at Container Terminal One to bring an additional 300,000 TEUs to the port's annual capacity.

The contract for this new berth has been awarded to China Communications Construction Company (CCCC), with the agreement officially signed by KPA Managing Director William Ruto and CCCC Managing Director MYu Xiaodong.

"We are enhancing both old and new infrastructure to meet the rising cargo volumes. This includes constructing new berths and revamping existing ones," said Ruto, highlighting planned upgrades to Berths 1-10 at Conventional Cargo Operations, which will entail strengthening, deepening, and straightening of the conventional cargo berths to enhance the capability to accommodate larger vessels and support the efficient handling of loose cargo whose volumes have been on the rise.

Other investors have also signed a lease agreement with KPA, including several that have submitted their applications for consideration, with Japan playing a key role in financing crucial infrastructure at the Mombasa Special Economic Zone.

KPA has also invested heavily in modern cargo-handling equipment, including Rubber Tyre Gantries (RTGs), cranes, forklifts, and terminal tractors that have been ordered and are currently awaiting delivery to boost efficiency and to replace the ageing equipment.

Others that have been delivered include Ship-to-Shore (STS) and a pilot boat. These investments have already delivered significant results, with Berth 16, which received brand new cranes, witnessing a 40 per cent improvement in vessel turnaround time and overall productivity as well as an improvement in pilotage services.

In 2024, the Port of Mombasa marked a record milestone, handling 2,005,076 TEUs, a 23.5 per cent increase compared to 2023. Cargo throughput reached 41.1 million metric tonnes, up 14.1 per cent from the previous year. Projections for 2025 suggest further growth, with 43.18 million metric tonnes of cargo and 2.22 million TEUs expected.

"Our expansion plans are data-driven, ensuring that we meet both current demand and future growth," noted Captain Ruto, adding that the port's transit market has also seen a remarkable 35 per cent growth, now serving over eight countries in the region. To better support its transit customers, KPA operates liaison offices in Uganda and Rwanda and is preparing to open one in the Democratic Republic of Congo (DRC).

At the same time, KPA has extended the free storage period for transit cargo from nine to fifteen days and has introduced more efficient operations at the Nairobi and Naivasha Inland Container Depots (ICDs), which offer greater flexibility and faster turnaround times for cargo processing.

KPA is also working with stakeholders to address challenges experienced by customers along the northern transport corridor in a bid to eradicate both operational issues and nontariff barriers, which contribute to a rise in the cost of doing business.

At the Port of Lamu, KPA recently equipped the port with three ship-to-shore gantry cranes, harbour mobile cranes and several rubber-tyred cranes to enhance the port's capacity to handle cargo.

In the Lake region, KPA is rehabilitating and constructing inland waterway ports to open the lake region to growing trade and support the Blue Economy Agenda.

Kisumu Port leads the way after posting an impressive growth of over 100 per cent for two consecutive years. Last year, the port recorded a 119 per cent growth with 280,381 MT of cargo handled against 127,745 MT in 2023.