Home East Africa kenya KPA to build a US $339.2m container terminal at the Mombasa port

KPA to build a US $339.2m container terminal at the Mombasa port

The Kenya ports Authority (KPA) has plans to construct phase II of the second container terminal at the port of Mombasa. KPA is securing US$ 339.2m loan from the Japanese government to finance the project construction. Construction work at the port is set to start in January 2018.

According to KPA Managing Director Catherine Mturi-Wairi, the development tendering for the project is set to kick off soon. September 2017 is the date for the construction completion of phase I handling capacity of 550,000 TEUs.

The development comes after KPA announced that it had secured two state-of-the art electric cranes to help boost efficiency at the Mombasa port. The cranes will also help mitigate negative effects on the environment.

Also read: Second phase of the new Mombasa Port container terminal to begin

Project funding

TradeMark East Africa (TMEA) is funding the cranes through the UK government’s International Climate Fund (ICF) facility. However, the cranes procurement cost is US $8.7m.

Latest data from Kenya Ports Authority(KPA) shows that Mombasa port cargo traffic registered an 11.9 per cent growth in the first six months of 2017. This attribution is to the construction of the second container terminal.

Stiff competition

In the wake of heightened competition from neighbouring Tanzania, Mombasa port has been striving to boost efficiency at the port to give it a competitive edge.

In 2015, Tanzania was planning construction of a mega port in Bagamoyo that would be the largest in East and Central Africa. It however temporarily halted plans reportedly due to financial constraints.

The biggest port in East Africa and the region’s trade gateway. Mombasa handles imports of fuel and consumer goods. Mombasa also exports of tea and coffee from landlocked neighbours such as Uganda and South Sudan. Besides, the traffic flows serve as a barometer of economic activity in the region.

Dorcas Kang'ereha
Editor/ Business Developer at Group Africa Publishing Ltd


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