Infrastructure
Phase II of Mombasa Container Terminal 2 Complete
The facility has added a capacity of 450,000 TEUs.
Japanese contractor Toyo Construction Company Ltd has enabled Kenya to enhance its container handling capacity after the successful execution of phase two of the Mombasa Container Terminal 2 (CT2).
The new facility that has been underway since mid-2018 is now fully complete and this has added a capacity of 450,000 twenty-foot equivalent units (TEUs) per year, thereby pushing up Mombasa Port’s capacity to 2.08 million TEUs.
“We are ready to hand over the facility for inspection ahead of commissioning with operations expected to commence in June this year,” says Toyo Civil Construction Division manager Hironori Sahara.
The project follows the signing of a Sh32 billion deal between the Kenyan government and its Japanese counterpart for the execution of the plan.
The funds were disbursed through the Japan International Cooperation Agency (Jica) with Kenya expected to repay the loan over 40 years.
The first segment of the three-phase project was completed in Feb. 2016 at Sh28 billion, raising the port’s capacity to 1.63 million TEUs from 1.08 million TEUs.
Kilindini Harbour
The Mombasa Port’s second container terminal, which is set on 100 acres at Kilindini Harbour, is projected to ease congestion at the busy port. This will enable the facility to fight off growing competition from the port of Dar es Salaam.
The final phase of the Mombasa Container Terminal 2 is expected to kick off next year, setting the port on track to achieving a capacity of 2.5 million TEUs.
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On completion, the facility will have three berths with quay lengths of 230, 320 and 350 metres. The larger berths will handle Panamax container ships of 20,000 deadweight tonnes (DWT) and Post Panamax vessels of 60,000 DWT.
The project is part of the Mombasa Port Development Programme which seeks to serve larger vessels, giving the port a competitive edge over Dar es Salaam and Djibouti ports.
Mombasa is the gateway for landlocked East African nations such as Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of Congo.
Privatisation
Meanwhile, the Kenya Ports Authority (KPA) has appointed Swiss freight giant Mediterranean Shipping Company (MSC) to run the Mombasa Container Terminal 2 to satisfy a loan facility requirement for the construction of the terminal.
Through its wholly-owned subsidiary Shipping Agencies Services Sàrl (SAS), MSC is set to raise its stake in the Kenya National Shipping Line (KNSL) to 47.0% while KPA will cut its stake from 74.8% to 53.0%.
As part of the joint venture, KNSL will become the new operator of CT2 and begin offering freight forwarding services and container liner shipping services.
Privatisation of the CT2 was part of the funding deal signed with Jica for the Sh32 billion loan for the construction of phase two of the second container terminal.
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