The Kenya Ports Authority (KPA) anticipates handling 2.2 million twenty-foot equivalent units (TEUs) by the end of 2024, marking a 20% increase compared to last year’s performance.
KPA Managing Director Capt. William Ruto revealed that the port has already exceeded last year’s target of 1.6 million TEUs, with current volumes reaching 1.75 million TEUs.
He attributed this impressive growth to improved operational efficiency and streamlined processes at the facility.
The growth of the global economy is at 5 percent, that of East Africa being about 5-7 percent.
Ruto applauded KPA’s growth saying such growth level has not been reached before. Over the last two years, cargo volumes have grown so high that they have surpassed their targets. The port capacity as of now is 2.1 million TEUs.
Speaking at the KPA headquarters, Mombasa, Ruto said they were working to boost the Port’s Capacity by expanding Container Terminal 1 also known as Berth Number 19B adding that they will soon sign the contract with the contractor to add 240 meters of key length, an additional capacity of 300,000 TEUs.
“Before I took over as the CEO, the port was doing 1.4 million twenty-foot equivalent units (TEUs), and at the end of my first year, at the end of 2023, we did 1.6 million TEUs, a growth of 12 percent from the previous 0.4 percent,” Ruto said.
He said that the port now has more than 8 transit countries and that the transit market has grown by more than 35 percent.
Ruto highlighted that the Port is also implementing major upgrades, including the modernization of the Terminal Operating system and the Acquisition of advanced equipment in order to enhance the Port’s Operational efficiency.
As he reaffirmed his commitment to operational efficiency, cost reduction, and environmental sustainability through the strategic investment in the new oil terminal which has drastically reduced ship waiting times, he noted that they have also addressed the long-standing challenge of high demurrage costs.
These costs, which are often passed on to consumers, have historically contributed to the rising prices of fuel and related products. By minimizing these delays, KPA is ensuring that the cost burden on end-users is significantly alleviated which has led to the continuous drop of petroleum products’ cost.
“KPA’s investment in the oil terminal is a testament to its unwavering dedication to modernization, economic growth, and environmental stewardship. As the project takes shape, it is poised to cement Kenya’s position as a leader in innovative and sustainable port management across Africa,” Ruto said.
He noted that several ships have recently introduced new services at the port, noting that despite what is going on in the Red Sea, they have continued to record improved efficiency, improved ship turnaround time, and improved rail productivity.
Agayo Ogambi Chief Executive Officer (CEO) of the Shippers Council of East Africa who is also the chairman of Port Charter on his Part appreciated the tour of the facility noting that the port chatter has helped to monitor the Ports Performance and efficiency as they celebrate
Ogambi said that the cargo dwell time in Nairobi has been reduced from highs of 4.5 to 3.5. while Mombasa has above 79 hours which is a good indicator.
He noted that the media tour will take them from the port of Mombasa to ICD Nairobi, then to Naivasha, Kisumu, and Malaba
“The intention is to evaluate whether we are meeting our targets in the Port Chatter and the interventions we can redeploy to ensure that we become efficient and competitive because the high cost of transport and logistics is part of competitiveness,” Ogambi said.
As a region, he noted that they have seen a 17 percent increase in traffic cargo through the port between 2022 and 2024. He added that they have also recorded an improvement to Burundi by about 14 percent.
“The challenge that we need to address is the stability of the system and we ask the Government to enhance the redundancy plans and business continuity since we have become so dependent on the system,” Ogambi added.
He noted that this has made it a challenge to clear cargo on time, citing it as a major challenge to the industry. He noted that the Port ought to make sure that supply is steady before demand and ensure that they have enough resources.
By Fatma Said
