Kenya blames port slowdown on recession
The Kenya Ports Authority has blamed the slow cargo handling on the global economic slump, reported All Africa. KPA managing director Gichiri Ndua said the euro zone crisis, US debt negotiations, high fuel prices and high container prices are to blame for the dip in trade at the port of Mombasa.
Ndua said these factors have had an impact on the international trade, which forms the basis of almost all the cargo handled at the port. Ndua was addressing a stakeholders' luncheon in Nairobi at the weekend.
He, however, expressed confidence that container handling at the port is likely to increase following economists projections of an increase in the world's economic growth.
"Trade volume is expected to grow by between 4.5 per cent and 6.5 per cent by the end of 2012. This will result in projection of 585 million to 596 million TEUs this year," Ndua said.
He attributed the much anticipated growth to the ongoing expansion projects at the port, the construction of the Dongo Kundu by pass and the free port zone.
The project involves construction of a new container terminal west of the Kipevu Oil Terminal on 100 hectares of reclaimed land. The new terminal is expected to handle 1.2 million TEUs annually once completed.
"The government is facilitating, through a public private partnership arrangement, the development of free port facilities on 3,000 acres of land owned by KPA at Dongo Kundu," Ndau said.
"Also underway is the Road Bypass project to link the project area and Mombasa-Lunga Lunga-Nairobi Highway. The road design is ready and the construction is expected to start next year."