KENYA PORTS AUTHORITY- OVER VIEW & PORT REFORMS PLANS

OCTOBER 2007

THE PORT OF MOMBASA… Gateway to East & Central Africa

KPA

VALUE S

ITS

CUSTOMERS

MANDATE

The port of Mombasa is managed by Kenya Ports Authority.The port of Mombasa is managed by Kenya Ports Authority.

Vision Vision

To be rated amongst the top 20 ports in the world in To be rated amongst the top 20 ports in the world in terms of reputation and performance by the year 2010.terms of reputation and performance by the year 2010.

Mission Mission

Facilitate seaborne trade in the most efficient manner by Facilitate seaborne trade in the most efficient manner by progressively benchmarking operational targets against progressively benchmarking operational targets against internationally accepted standards.internationally accepted standards.

PORT OF MOMBASA

PORT OF MOMBASA

• Gateway to East & Central Africa• Natural harbour for Deep sea-going ships• Multi-purpose port• Multi-modal links

ONE OF EAST & SOUTHERN AFRICA’S LEADING PORTS

Durban Mombasa

Daresalaam

Maputo

MOMBASA PORT – RAIL NETWORK

MOMBASA PORT – ROAD NETWORK

The Port of Mombasa comprises• General Cargo berths:• Dockyard and ship repair

facilities• Container Terminal• Specialised berths• Liquid oil terminals

PORT PERFORMANCE PORT PERFORMANCE –– TOTAL THROUGHPUT TOTAL THROUGHPUT 2002 2002 -- 20072007

02468

10121416

2002 2003 2004 2005 2006

'000

' DW

T

In the past five years the volume of cargo traffic through the port has risen by over 40%

PREAMBLE

CAPACITY UTILISATION (General)• Currently high as shown below despite yard

demolitions and related projects

PERIOD TRAFFIC CAPACITYUTILISATION

CURRENT (with developments)

14.42M 60 – 65%

2007 (Projected) 15.30M 68%

Growth in throughput expected to grow at the rate of 6% ++ in tandem with growth in GNP

PREAMBLE

TRAFFIC PROJECTIONS

Trends indicate increase in traffic leading to stress on currentcapacity as shown below:

MASTER PLAN PROJECTIONS

MANAGEMENTPROJECTION

ACTIONREQUIRED

Port to handle traffic of 32 million tonnes

By: 2028 By: 2023 Urgent need to develop additionalCapacity now.

Recall that other ports accept 40% as the optimal capacity utilisation level

Mgt projection is based on the following consideration:

1. Expected traffic from Sudan, Ethiopia and Tiomin Exports. 2. Continued impressive economic performance of Hinterland

Countries

Port Operations

• Trend indicative of a mature sectoral distribution• Mombasa still a Mixed Cargo Port

TYPE BulkLiquid

DryBulk

ConventionalCargo

ContainerisedCargo

20062006 34.8% 18.4% 9.1% 34.1%

5 Year Average5 Year Average 38.6% 16.5% 10.7% 34.3%

• Last 5 years imports averaged 9.95M Tonnes: 79% of Total Traffic of 12.63

• Cargo composition is shown below:

Port Operations

2006 JAN – MAR2007

Remarks

Mombasa ContainerMombasa ContainerTerminalTerminal 80.0 95.3

(Red Flag) at saturation levels

SOTSOT 65.0 51.0 tending towards saturation

KOTKOT 79.0 68.0 Red Flag

Conventional CargoConventional Cargo 43.8 41.4 Acceptable levels

BERTH OCCUPANCY IN PERCENTAGE

•Need to generate handling capacity for containers, bulk oil and dry bulk

•Need to consider development of additional Berth at the Mbaraki Wharf

Strategic Plan the following discusses programmes for progressively transforming the Port of Mombasa into a world class Port in line with the corporate VISION

• MEASURES PUT IN PLACE TO IMPROVE PERFORMANCE

Equipment Modernisation

• 3NO. TUGBOATS

Capacity; 55- 6O Ton BoullardPull

4th Tug under rehabilitation

TWO PILOT BOATS-

MARINE CRAFT

PATROL BOATS

• 2No: Patrol Boats delivered in 2003

SHIP TO SHORE GANTRY CRANES (STS)

• 4No: Delivered in 2005

PERFORMANCE SPEEDS

Trolley 200m/minHoist 70m/minTravelling: 46 min/min

RUBBER TYRED GANTRIES (RTGs)

• 12 NO. RTGs delivered in 2004/5SPEEDSTrolley: 70M/m/minTravel: 135m/minHoist: 25m/min (Load)

52m/min No: Load

RAIL MOUNTED GANTRY CRANES (RMGs)

• 2 No: Delivered in 2005

PERFOMANCE SPEEDS

Trolley 7Om/minHoist 25m/min

Load52m/min no load

Travel 45m/min

TERMINAL TRACTORS

• 65No: deliveredBetween 2003-05• 17 delivered in August

2007

REACHSTACKERS

• 11 No: Delivered between 2002 and 2004

• Received 3 more in August 2007

PROPOSED REFORMS

RATIONALE FOR REFORMS

1. Enhanced Efficiency2. Improved Productivity3. Private Sector Participation

PROPOSED REFORMS

PREFERRED OPTIONS1.Privatisation of the Conventional Cargo

operations2. Concessioning of Dyd Services & ICDs3. Corporatisation of MCT 4. Rehablitation and operation of Cruise Passenger

Terminal Facility5. Devt of FTZs on BOT6. Corporatisation of the Bandari College Services

Approved Actions by the Board were to be implemented. A review on Progress follows

THE MOMBASA CONTAINER TERMINAL

STATUS OF MCT

1. Handles 34% traffic2. Contributes 55% Revenue3. Capacity problems: nearing saturation

Design capacity: 250,000 2006 Handled: 479,000 2006 Projected: 530,000

With current configuration, capacity limit is 540,000 TEUS

SHORT-TERM MEASURE

1. Construction of Berth No. 19

Quay Length: 760mStorage: 140,000 TEUs

MCT throughput to improve to 600,000 TEUS

Urgent Need to construct Berth No. 19 and acquire the necessary equipment. Tendering for Construction after June 2007

Given the investment madeAt the MCT and its pivotal

Role in the economy,Corporatisation is the

Preferred option

THE MOMBASA CONTAINER TERMINAL:EXPANSION PROGRAMME

PROPOSED NEW TERMINAL1. Involves expansion of MCT to area west of

KOT2. Features:

100 Hectares of yard space from the reclamation.3 berths of 900 meters.Draught of -15.5 meters.60,000 GT Panamax Vessels.New Access Road, (3 lane highway) at Port Reitz to join the old port Reitz airport road. New Railtainer Terminal to Kipevu

Layout of Proposed Terminal follows

New Container Terminal

PROPOSED NEW TERMINAL

Proposed New Container Terminal Plan

PROPOSED REFORM : SPECIAL OPERATIONS BERTHSCRUISE TERMINAL

• Conversion of Berth No. 1 with future extension to No2• Response to tender poor • Lessons learnt from the Miami trip• KPA to undertake project on RO- improvement works started• Promotion of business thro’ the CIOA

CONTAINER FREIGHT STATIONS

• UNPRECEDENTED BERTH THROUGHPUT• 15,000 TEUs Daily• Licensed two CFSs to handle containers• Operations started on 1st October, 2007• Plans for transit countries to have own CFSs

MCT EXPANSION PROJECT: EXPANSION (ADDITIONAL WORKS)

• Plans to Dredge channel and berths to 15 metrs

DEVELOPMENT OF THE 2ND COMMERCIAL PORT

• Authority looking into the possibility of developing a second commercial port

• Usage of small ports

•CURRENT CHALLENGES

FACTORS AFFECTING CONTAINER TERMINAL PERFORMANCE

Rapid increase of container traffic volumes

Importers use the port as a storage area Average dwell time of 14 days

Poor off take by rail. Rail now handling only 6%

Lack of adequate capacity by road and poor road infrastructure.

Long bureaucratic cargo clearance processes

Equipment Breakdown and erratic power supply

FACTORS AFFECTING CONTAINER TERMINAL PERFORMANCE

Inadequate equipment to handle the growing traffic

Unusual long rains from Nov 2006 to February 2007

Changing routine patterns i.e shorter rotations. Mombasa is now a feeder port.

Deployment of additional vessels by shipping linesNew shipping Lines

Deployment of unsuitable vessels

FACTORS AFFECTING CONTAINER TERMINAL PERFORMANCE

Changing box ratio . More 40 foot containers

Bunching of vessels & unscheduled arrivals

Overbooking of cargo by shipping lines

Late submission of clearance documents

Lengthy custom warehouse and auctioning processes

• Addition of two new Ship to Shore Gantry cranes at the container terminal in the year 2007/8

•Additional six new Rubber Tyre gantry cranes at the container terminal in year 2007/8

• Building another Berth 19 to boost the container terminal’s operational capacity. To be complete in the year 2009/10

• Construction of a 2nd container terminal –Expected to be ready by 2013 and will handle 1.2 million TEUs annually.

MEDIUM/LONG TERM INITIATIVESMEDIUM/LONG TERM INITIATIVES

• We are embarking on dredging the harbourchannel and widening the turning basin to accommodate larger vessels

• Additional terminal equipment on order including 2 STSs, 6 RTGs, 6 Terminal Tractors, Reachstakers and Trailers

• Implementation of waterfront system & VTMIS by Nov 2007

• Utilization of small ports

• Development of a second commercial port

MEDIUM/LONG TERM INITIATIVESMEDIUM/LONG TERM INITIATIVES

END

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