Eng. Joseph Atonga. CEng.Eng. Joseph Atonga. CEng.Eng. Joseph Atonga. CEng.Eng. Joseph Atonga. CEng.

CHIEF OPERATIONS MANAGERCHIEF OPERATIONS MANAGERCHIEF OPERATIONS MANAGERCHIEF OPERATIONS MANAGER

7777thththth December, 2010, at Snow Crest Hotel, ArushaDecember, 2010, at Snow Crest Hotel, ArushaDecember, 2010, at Snow Crest Hotel, ArushaDecember, 2010, at Snow Crest Hotel, Arusha

PORT CHALLENGES AND PRODUCTIVITY- CASE OF KENYA PORTS

AUTHORITY.

Presentation by

KENYA PORTS AUTHORITY

1. Introduction

2. Vision, Mission and Core Values and Business Objectives.

3 Port Throughput , Container traffic and Deliveries and transit.

4. Challenges facing the Port

5. Port Productivity

6. Overview of key Port Projects for overcoming challenges

7. Conclusion and Way Forward

The Port of Mombasa

� KPA was established on 20th January,1978 with a mandate to maintain, operate,

improve and regulate all scheduled seaports along Kenyan coastline

� KPA manages

� Port of Mombasa

� Other small ports: Funzi, Kilifi, Lamu, Malindi, Mtwapa, Shimoni and Vanga

� 3 ICDs in Nairobi, Kisumu and Eldoret

� Liaison office in Kampala to cater for transit countries

� The port of Mombasa is the transport and logistics hub for the region serving

Kenya, Uganda, Rwanda, Burundi, Southern Sudan, Eastern DRC, Northern

Tanzania, Ethiopia and Somalia

� The port is well connected in the region, with over 33 shipping lines calling and

providing direct connectivity to over 80 ports

� The port plays a major role in facilitating trade and development of East and

Central Africa region.

Vision Vision

World class seaports of choiceWorld class seaports of choice

Mission Mission

To facilitate and promote global maritime trade through To facilitate and promote global maritime trade through the provision of competitive port services the provision of competitive port services

Core Values

Customer FocusCustomer FocusIntegrityIntegrityTeamworkTeamwork

Social ResponsibilitySocial Responsibility

• Improve Service Delivery and Customer

Satisfaction;

• Enhance Financial Performance;

• Increase Cargo Throughput;

• Enhanced Labour Productivity;

• Enhance Infrastructural and Capital Developments;

and,

• Manage Business Risks.

PORT THROUGHPUT ('M' DWT): 2005 - 2009

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Imports 10.7 11.8 13.1 13.3 16.5

Exports 2.3 2.3 2.5 2.7 2.5

Transhipment 0.3 0.3 0.4 0.4 0.1

Total Throughput 13.3 14.4 16.0 16.4 19.1

2005 2006 2007 2008 2009

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

650,000

2004 2005 2006 2007 2008 2009

438,597 436,671

479,355

585,367615,733 618,816

TE

Us

Deliveries: 2004 - 2009 (TEUs)

a) External Factorsa) External Factorsa) External Factorsa) External Factors

� High GDP growth

� Growing trade

� Increased globalization of world economy

� Integration of regional economies (EAC, COMESA)

� Political Stability

� Provision of 24/7 operations

� Increased investment on port equipment and infrastructure

� Improved operations and terminal productivity

� Improved shipping links with other countries especially Asian

� Automation of port operations

� Increased ship sizes

� Rapid increase in traffic especially container traffic

� Inadequate cargo handling capacity

� Shallow draught

� Poor and inadequate hinterland transport

� Piracy and Insecurity

� Underutilization of ICDs

� Non-tariff barriers

� Numerous cargo interveners

� Long Documentation procedures

Some of the measures of productivity are:

� Crane Productivity measured in moves per hour

� Ship productivity

� Yard capacity- Dwell time and storage capacity

� Gate performance:- Truck turnaround time

� Inadequate berthing capacity

� Inadequate stacking capacity

� Equipment inadequacy

� Processes, Information and data flow

� Long Documentation processes

� Labour /union

� Shipping lines: – Faster Vessel turnaround

� Port Authority: Equipment optimization

Terminal efficiency,

Reduced congestion,

Increased earnings

� Customers:- Lower costs of trade

� Cargo dwell time: Lowered due to improved off-take

� Country:- Improved competitiveness and economic development

� Kenya’s Vision 2030 is a new development blueprint that aims at transforming the country into a newly industrializing middle income country providing a high quality of life to its entire population by year 2030

� The vision pillars are: economic, social, political

� The vision for infrastructure sector is: to provide cost effcetive, world class infrastructure facilities and services insupport of vision 2030.

� Some of the strategies include modernizing and expanding seaport facilities, enhancing PPPs in infrastructure developments

� Continuous Equipment Modernization

� National Single Window

� Dredging of Mombasa port

� New modern container terminal

� Development of berth 19

� Freeport and Free trade zone at Dongo Kundu

� Conversion of berths 11-14 into container berths

� Second commercial seaport in Lamu

Flagship Projects to support Vision 2030Flagship Projects to support Vision 2030Flagship Projects to support Vision 2030Flagship Projects to support Vision 2030

� Bring all cargo interests under one platform

� Speed up cargo clearance and delivery process

� Enable the Port to fully achieve its E-Port status

� Funded by the World Bank

� Being developed jointly by KPA and Kenya Revenue Authority

10 New RTGs

� 10 New RTGs were delivered on 24th November, 2010.

� 3 No: New Ship to shore to be delivered in August 2011

� 2 No: Mobile Harbour Cranes to be delivered in May 2010

� 8No: New Reachstackers and 24 No: Terminal Tractors to be acquired by May 2011.

� The project involves dredging and widening of Navigation Channel , turning basins, along existing berths and ancillary works such as installation of Aids to Navigation, Tide Gauge and acquisition of Tide Prediction Software.

� Main Channel, turning basin and new container terminal to be dredged to -15m. Target Post- Panamx container vessels of 4500 Teus 14.5 meters draft, <350 meters LOA

� Tenders for the works have been awarded for USD 62 million (approximately KES 5 Billion) to Van Ord of Netherlands . The Government has so far committed Kshs1.44 billion towards the project.

� The dredging works are expected to commence in February 2011 and will take 36 months to complete.

Berth 20 will be 12m deep. Berths21,22 will be 15m and berth23 will be 12.5 meters deep.

Designed by Japan Port consultants

West of Kipevu oil terminal� Develop a new container terminal with 1.2million TEUs capacity

� Detailed designs completed. Tendering for construction is ongoing

� Environmental impact assessment completed

� Project affected persons to be compensated

� First phase expected to be ready by 2015

� The project involves the reconstruction of a conventional cargo berth into container berth and the redevelopment of the yard area into a container terminal. Berths 11- 14 were originally designed as conventional cargo berths with sheds behind them.

� Sheds 12-14 have been demolished to create room for container ships to dock and discharge containers using their own gears.

� Privatisation commission is to advice on how this section of the port should be operated under the Public Private Partnership (PPP)

� Berth 19 160meters

� Berths 11-14 through BOT

Increase current container quay length from 600 to 760 meters and yard capacity by constructing berth number 19.

It is estimated that the project will cost about KSh3.4 billion

� Development of free port

facilities on 3,000 acres of land

owned by KPA thru PPPs.

� Government of Singapore has

pledged to support the project

� A technical agreement

between Kenya and Singapore

signed.

� 1975 Study identified the potential of Manda Bay as a second port with:

� At least 15km key length� Deep draft of upto 18 meters� Navigable channel of 11km up

to 1.8km wide� Ample land for at least 400

meters apron� Ample land for Free Trade

Zones

The 2nd Port will:

� Ease congestion at the port of Mombasa;

� Provide the country with an alternative gateway for seaborne traffic.

� Provide an alternative route linking the coast to transit countries and improve transit transport efficiency to and from emerging markets of Southern Sudan and Ethiopia

� Open a new transport corridor; the LAPSSET Corridor

� Harness the region’s economic potential by opening up the coastal and neighboring regions to economic and social development opportunities

No Type of Ship

Berth Dimension 2012 2030

Length Depth Berth Nos. Berth Nos.

1 Container Ship

100,000 dwt

400 m 16 m 1400 m

62,400 m

2 General Cargo Ship30,000 dwt

240 m 12 m 1240 m

174,080m

3 Bulk Cargo Ship

100,000 dwt

330 m 17.5 m 1330 m

51,650m

4 Crude Oil Carrier

200,000 dwt

22m - 2

5 Oil Product Carrier

30,000 dwt

230 m 12 m - 1

6 Coal Carrier30,000 dwt

240 m 14 m - -

� The Kenya Ports Authority is undertaking various measures and projects to address the challenges in order to improve service delivery and attain international best practices

� Measures are also being undertaken to improve port productivity through equipment and technology upgrades, improvement of processes and better exchange of information among stakeholders through the development of the National single window.

THANK YOU THANK YOU THANK YOU THANK YOU

FOR FOR FOR FOR

YOUR YOUR YOUR YOUR

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