S. Sudan merchants now plan to ditch Mombasa port for Djibouti route

The Port of Mombasa is looking at a brand new risk from South Sudan, with recent clamour to switch enterprise to the Djibouti route, in what is going to deny Kenya income on 1.1 million tonnes of cargo that the ability handles yearly.

Mombasa has been the predominant route for all consignments destined to the landlocked nation and South Sudan now says Port of Djibouti is shorter.

“We are in talks with Djibouti authorities in order that we are able to join Djibouti, Ethiopia, and South Sudan to make use of Djibouti port by way of Ethiopia,” deputy chairperson for Chamber of Commerce in South Sudan Lado Lukak Legge was quoted saying by the media in Sudan.

“Djibouti is near to South Sudan compared to Mombasa port in Kenya and the government of Djibouti is willing to strengthen trade ties with South Sudan and Ethiopia,” he stated.

Foreign Affairs principal secretary Macharia Kamau instructed Business Daily the push is just not but a priority to Kenya.

The South Sudanese embassy in Nairobi didn’t reply to our inquiries on the nation’s official place on the matter.

South Sudan is second after Uganda in the usage of Mombasa port, accounting for 9.9 p.c of transit volumes. Uganda accounts for 83 p.c of all throughput cargo adopted by the Democratic Republic of the Congo, Tanzania and Rwanda at 7.2, 3.2 and a pair of.4 p.c, respectively.

The Kenya Port Authority (KPA) managing director John Mwangemi refused to touch upon the matter saying that the port was not conscious of the transfer.

“I cannot comment on that matter, we have not received any communication from South Sudan in regard to that matter,” stated Amb Mwangemi.

The shift, if profitable, may also hit the newly established dry ports in Naivasha and Nairobi, the place cargo destined for South Sudan have been imagined to be cleared on the Inland Container Depot (ICD).

Just just lately, Kenya and South Sudan agreed to clear cargo destined to Juba in Nairobi beginning this month.

In 2019, President Uhuru Kenyatta introduced that Kenya would allocate South Sudan 10 acres of land for building of a dry port on the Naivasha particular financial zone. The land, which acted as an incentive to have Juba use Kenya as a transit route for its cargo, was meant to ease the motion of products to the neighbouring nation.

Kenya and South Sudan have through the years been working in direction of the completion of transnational highways, together with the Eldoret-Lokichoggio-Nadapal-Kapoeta-Torit-Juba Road that may ease the motion of cargo between the 2 nations.

Kenya has additionally been fast-tracking the completion of the Lamu Port South Sudan Ethiopia (Lapsset), oil pipeline and the Lamu Port to hyperlink the 2 nations.

This comes at a time some shippers have been avoiding the Northern Corridor, which connects cargo from the port of Mombasa to Juba, Kigali, Kampala as effectively as DRC, and now shifting their cargo to the Central Corridor.

The Central Corridor, which is 1,300km lengthy, begins on the port of Dar es Salaam and serves Tanzania, Zambia, Rwanda, Burundi, Uganda and Eastern DRC. The northern hall is 1,700 kilometres lengthy.

The transfer by DRC to be part of East African Community (EAC) additionally poses a risk to the Port of Mombasa because it is slowly shifting the cargo that passes by way of the northern Corridor to the Central path to Kinshasa.

Dennis Ombok, former chief government officer of the Kenya Transporters Association, stated there are lots of elements that may decide whether or not Mombasa will stay related to cargo destined to DRC.

“Things like road tolls, transit period and traffic situations are some of the factors that transporters will use to determine the route that they would want to use and Mombasa has to up its game or lose this business to Tanzania,” stated Mr Ombok.

Mr Ombok stated the incentives on the ports may also play a key position in figuring out the efficient route for transporters.

“Truckers will also be keen on incentives at the ports such as free storage period and lower charges to decide whether to use the port of Dar es Salaam or Mombasa,” he stated.

Prior to admission, EAC States needed to pay tariffs to both import or export items to DRC as a result of of the exterior tariff that was relevant.

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