The LAPSSET Corridor Development Authority (LCDA), which is in charge of the coordination and management of the implementation of the Lamu Port-South Sudan-Ethiopia Transport Corridor, has announced that the first of the proposed 32 berths at the Lamu port is now 100% complete.
This berth is one of the three berths whose construction begun with dredging works in December 2016 with a delivery time of 24 months; and 45 months for the other two, all at a cost of US $480m. LCDA stated that berths 2 and 3 will be completed by December next year.
Financing construction of the berths
The government of the Republic of Kenya is fully funding the construction of the 1st three berths under a plan referred to as the “Short-term Plan” that is estimated to cost US $689m, accounting for: dredging and reclamation; construction of berths and yards; construction of revetment, causeway and road; construction of buildings and utilities including Port headquarters, Port Police Station and Port Management Housing Scheme; procurement of equipment and tug boats; and Electric Power Connection to the National Grid and establishment of Water Reticulation Network among others.
The government has structured the remaining 29 berths to be handed over to private sector investors for financing, construction and operation.
Benefits of the Lamu port
Once complete, Lamu port is expected to create job opportunities not only in port operations but also in agriculture, fishery, manufacturing, logistics, transport, trade and commerce.
In addition, the port is predicted to appeal to large cargo ships and provide benefits in the region by passing on savings as a result of lower marine costs due to faster ship turnaround time, reducing the cost of doing business.