Partnering with the Media to Promote understanding of the Port Dynamics and Transport logistics along the Northern

corridorPresented by

Antony MurithiCorporate Development, KPA

20th November 2012Mombasa Continental Resort and SPA

SHIPPING,TRADE TRENDS AND THEIR IMPACTS ON PORT INFRASTRUCTURE

Content

• Introduction• Drivers of Global Trade• Trade Pattern• Evolution of Shipping • KPA Port Performance• Impact on Port Developments• Conclusion

Introduction

Structural changes in international trade and the evolution of maritime transport have a direct impact on port growth and expansion

World Seaborne Trade Maritime accounts for 80% of the global World Seaborne Trade by Cargo Type and

Country Group (2010) trade

Port GroupGoods Loaded (Exports) Goods Unloaded (Imports)

Grand-TotalLiquid Cargo

Dry Cargo Sub-Total Liquid

CargoDry

CargoSub-Total

Millions of Tons

World 2,752.4 5,655.9 8,408.3 2,908.2 5,469.6 8,377.8 16,786.10

Africa 425.1 308.2 733.3 81.3 318.0 399.3 1,132.60

Kenya 0.2 2.4 2.6 6.6 9.6 16.2 18.78

Percentage Share

World 100% 100% 100% 100% 100% 100% 100%

Africa 15.44% 5.45% 8.72% 2.80% 5.81% 4.77% 6.75%

Kenya 0.01% 0.04% 0.03% 0.23% 0.18% 0.19% 0.11%

Globalization Containerization Regional integration Transport and communication De-regulation and liberalization of trade and

FDIs Rapid growth of emerging and developing

countries (commodity boom) Peace and Security

Key Drivers of Global Trade

Cargo Profile ('000' Dwt): 2007-2011

Trade Pattern: Origin of Imports (‘000’ tons): 2011

Trade Pattern: Destination of Exports (‘000’ tons): 2011

East-West Shipping Routes Off the Main East West Liner Trade Routes

Evolution of Container TradeSince the 1960s and 1970s vessel capacity

grew, individually and collectivelyOnly ten years ago, the largest Panamax

vessels carried 4,400 TEU

Today, the threshold of post Panamax mega carriers of 15,000 TEU and soon to be surpassed when Triple E – expected to raise the threshold to 18,000 TEU (expected in the market by 2013)

Evolution of Container Trade

Evolution of ShippingThe Growing Scale of Ships

Year Ship ClassCapacity

(TEU)Length(m)

Width(m)

Water Dept.(m)

1968 Feeder 750 180 25 9.01972 Handy 1500 225 29 11.51980 Sup-Panamax 3000 275 32 12.51987 Panamax 4500 275 39 13.5

1997Panamax/Post-Panamax 5500 325 41 14.1

1999 Post Panamax 8000 345 43 14.52007 Post Panamax 11000 360 43 16.0

2010+ Post Panamax 15000 430 58 16.02010+

+ Malacca-Max 18000 470 60 21.0

Evolution of shipping  In service Today

Ordered ( 2009-2013) Orders

Size rangeNo. of ships TEU,1000s

No. of ships

TEU,1000s

% of Fleet (TEU)

000 - 499 384

124,184

12

1,920 1.50

500 - 999 823

609,878

93

78,855 12.90

1000 - 1999

1,261

1,779,576 209

311,763 17.50

2000 - 2999 725

1,838,647

118

304,266 16.50

3000 - 3999 332

1,141,898

74

253,997 22.20

4000 - 4999 451

19,768,49

8 242

1,059,249 53.50

5000 - 5999 286

1,574,918

39

206,734 13.10

6000 - 6999 172

1,118,694

72

469,654 42.0

7000 - 7999

29

213,091

27

196,740 92.30

0ver 8000 198

1,756,513

295

3,217,598 183.20%

Total

4,661

12,135,89

7

1,181

6,100,776 50.30%

In 2008, a global container fleet of 4,661 vessels held a capacity of 12.1 million TEU

Designs for vessels as 18,000 TEU are expected in the market by 2013

In 2020, vessels of up to 20,000+ TEU are expected

This will in turn drive the radical reduction of port calls on major route and push for development of global mega ports served by fully integrated global networks

Evolution of shipping

As a result of dredging the Port of Mombasa received the highest number of “first-calls”, with MSC TIA being the largest with 261m length overall (LOA) and carrying capacity of about 4000 TEU

Evolution of shipping

Modern handling equipment- size of STS gantry cranes depends on ships size

Higher Drafts- puts pressure to carry out expensive dredging works (channel, berth)

Improved cargo handling capacity: yard, new berths

Intermodal facilities: rail and road IT infrastructures: cargo operation systems,

traffic management in the port, billing, gate operations etc. and their integration

Improve port planning and operations

Impact on Port Infrastructures

24/7 Operations Development of CFS Dredging of Mombasa Port Procuring Additional Equipment Construction of Berth 19 Integrated Security System Second Container Terminal Development of Crude Oil Handling Facility Development of Dongo Kundu Free Port LAPSSET

Measures taken by KPA

ConclusionThe port has increasingly been receiving larger vessels, which includes Panamax vessels The port has experienced one of the highest growth rates in trafficVarious investments and other measures have been undertaken to serve the growing trafficThere is need for concerted effort by all stakeholders to facilitate cargo clearance and cargo fluidity

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