A decline in cargo at Mombasa port has affected business in the freight industry as well as for the truckers who heavily rely on traffic at the port. They have seen a 40% decline in work.
The slow demand for ferrying cargo has affected freight charges, with the cost of transportation to Kampala dropping by 17%.
Kenya Transporters Association Chief Executive Officer Dennis Ombok stated charges have dropped to $2000 from $2400 due to sluggish demand. A decline in the volumes of cargo has also meant a reduction in the number of trucks needed at the port.
Source: Business Daily Africa June 30, 2021.
Due to the improvement of the transportation processes in Kenya via the standard gauge railway (SGR), small business owners all over the country and region have seen an improvement in the efficiency of doing business and transporting their goods from port to premises.
Cargo is now delivered in a shorter time frame compared to the use of heavy commercial vehicles like trucks
Some traders have seen goods delivered, offloaded and cleared at their premises in a space of three short days.
The freight charges via SGR are favorable when compared to the road transport which costs at least 800 dollars between Mombasa and Nairobi.
Source: Xinhua July 1, 2021.
With Tanzania looking to revive the Bagamoyo port and Somaliland recently partnering with DP World to open a new terminal at Berbera Port and subsequently announcing plans for a phase 2 expansion of a new terminal, competition has become stiff for the Kenya Ports Authority.
These will provide convenience and ease of doing business for those in the surrounding areas.
The Berbera Economic Zone, currently under development, aims to attract investment and new businesses with an expanded port, economic zone, and the Berbera corridor, which is expected to transform Berbera into an integrated maritime, industrial, and logistics hub in the Horn of Africa.
Source: The Star June 29, 2021.
Lamu Port, South Sudan and Ethiopia Transport (LAPSSET) is a corridor program that is dedicated to interconnecting East African countries Kenya, Ethiopia, and South Sudan.
With inconsistencies, inefficiencies, and the looming pandemic costing the East African economy, an initiative like this is crucial in linking the three nations and easing access as well as trade operations.
Source: The Africa Logistics June 29, 2021.
Through the development of an integrated rail network, the Kenya Railways has worked on revitalising the rail transport system throughout the country.
Motivated by the vision of becoming a world-class provider of rail services, the organisation has seen several milestones since its launch under the Kenya Vision 2030 years ago.
Including but not limited to; rehabilitation of the meter-gauge railway, Nairobi commuter service, MV Uhuru, Standard Gauge Railway, Kenya railways marine institute, and Railway training institute.
Source: Daily Nation June 29, 2021.
The East African Community (EAC) recently tabled a $91 million budget to the East African Legislative Assembly (EALA). Set to start July for the financial year 2021/2022, the proposed budget will facilitate the development of infrastructure and boost industrial growth in the regional economy.
Unfortunately, the budget comes at a time when the EAC economies have been hit hard by the covid-19 pandemic and its subsequent lockdowns that have affected regional trade. Containment measures to limit its spread, which include travel restrictions and lockdowns, led to a contraction of the economy in all the EAC partners.
Growth in the EAC region is expected to recover in 2021, reflecting a resumption of global economic activity with the easing of containment measures and sustained implementation of growth-supporting measures.
Source: Sendy Blog July 1, 2021.