April 26th 2022
Mombasa
National Treasury and Planning Cabinet Secretary Amb. Ukur Yatani has urged Africa governments to continue investing in maritime infrastructural developments to improve intermodal transport systems.
Speaking during the official opening of the 26th Intermodal Africa 2022 Exhibition and Conference at a Mombasa hotel, the CS said such efforts would help to promote the manufacturing sector, strengthen the export promotion councils and open up special economic zones for value addition processes for export markets.
Kenya Ports Authority is hosting the conference which brings together top decision makers including among others harbor masters, port engineers, shippers, cargo owners, importers/exporters, shipping lines and freight forwarders.
“Going in this direction is the only way to reduce the trade imbalance that exists,” he said in a speech delivered on his behalf by KPA acting Managing Director Amb. John Mwangemi.
Hon. Yatani noted that with a population of 1.4 billion, an equivalent of 16.72 percent of the total world population, the region has a huge market which unfortunately remains largely uncoordinated and untapped due to lack of an efficient and integrated transport network.
He said that the continent with its untapped resources is expected to play a bigger role in global economic growth in the next decade because of the ongoing discoveries of huge reserves of natural gas, oil and mineral deposits.
“These opportunities cannot be optimally tapped without a well-developed sufficient intermodal transport system across the continent,” he added.
The minister said on a positive note, African governments through the African Union, have so far formulated policies and strategies which are expected to help the region to make significant headway in infrastructure development particularly in the maritime sector.
For Africa to take advantage of the anticipated business growth opportunities, Yatani said more efforts are required to address issues and challenges such as capacity constraints, underdeveloped skills, security, gender inequity and financial inadequacies which afflict the efficiency of their ports, infrastructure, and trade in general.
The CS further affirmed government’s commitment to the implementation of reforms that will create conducive trade facilitation environment. He noted that, all government departments involved in the transport and logistics industry are now streamlined and coordinated in their operations to enhance efficiency. This integrated approach involves pooling together as a team to offer quality and timely service in a cost-effective manner.
“Equally significant, Mombasa Port stakeholders are bound by a Port Community Charter that has Service Level Agreement which sets performance targets to be achieved by each agency.”, he commented
Yatani explained that the implementation of the Charter is closely monitored by the government to ensure every agency plays its role in boosting the port and transport corridor’s performance.
The Kenya National Single Window System has now created an online platform for information sharing and automation of documentation process for all stakeholders to enhance business efficiency.
On his part KPA acting Managing Director Amb. John Mwangemi, observed that the cost of moving goods in Africa is 1.5 to 3.5 times more expensive compared with other high volume trade routes because its ports have little economy of scale.
“Other characteristics include operational and regulatory bottlenecks that slow traffic through Africa’s ports, underdeveloped rails and road networks, and capacity constraints that limit accommodation of large ships in line with international shipping trends,” said the MD.
He added that as ports struggle to complement each other, they must work together in a coordinated way to avoid over-investing in uncoordinated infrastructure.
Amb. Mwangemi highlighted to the meeting Kenya’s major development projects for the last 10 years aimed at making the Port of Mombasa a hub port in the region.
ENDS-
