Port privatisation begins, better services beckon
Privatisation of Mombasa Port has started in earnest, signaling better services are on the way.Last week, the Privatisation Commission of Kenya led a team of consultants on a tour of the port to view facilities owned by the Kenya Ports Authority.
The Government aims to privatise berths 11 to 14, stevedoring services and Eldoret Inland Container Depot.
Port Executive Director Solomon Kitungu said the team’s mandate include evaluating the projects, identify potential investors and advise the Government on available options.
"They will also look at the possibility of establishing the berths as an independent and commercial functional unit from the rest of the port," Mr Kitungu said.
Increase efficiency
KPA Harbour Master Captain Twalib Khamis said the initiatives would increase efficiency and container capacity at the port.
"We also have a skilled workforce, efficient gang composition and strong union representation," Mr Khamis told The Standard.
Last Saturday, Dockworkers Union General-Secretary Simon Sang told a pecial conference for members that the union would discuss with Government the plan to privatise stevedoring services.
Mr Sang said stevedoring services were central to dockers and there should be consultation before being handed over to private operators.
"There is a threat from Government to privatise stevedoring. The union has not been consulted on this issue," he said.
KPA is building a second container terminal west of Kipevu with a 1.2 million 20ft equivalent units capacity. The Sh16 billion terminal will be completed by 2013 and will also be run by a private operator.
Berths 11 to 14 were originally designed to handle general cargo, but due to growth of containerised cargo, is being used to handle container vessels using the ships’ own gear.
KPA says Government intends to convert these berths into a fully-fledged container terminal with modern container handling equipment.
This requires physical restructuring of the berths, including strengthening of the quay.
The terminal will then be leased to a private operator, while KPA remains the landlord authority.
Proposals from local and international firms are expected before September 25, for Cabinet approval.
