EAST AFRICA’S INFRASTRUCTURE: A REGIONAL PERSPECTIVE

# **Box 2.2 . Impact of port capacity constraints: Mombasa’s story**

Port Mombasa is the largest port in East Africa and a vital gateway for imports to Kenya and neighboring countries. Imports into Mombasa rose sharply between 2005 and 2009. In 2009, imports accounted for 87 percent of the total weight of goods handled by the port. Around 72 percent of imports were destined for Kenya. The remainder was transit cargo headed to neighboring landlocked countries, with the largest transit directed to Uganda. Of the goods that exited the Port of Mombasa, 12 percent originated in Uganda and 85 percent in Kenya. The growth of imports and exports is expected to continue.

Maersk Shipping Line indicates that Mombasa is operating at maximum capacity with respect to its ability to service container ships (at a time of the year when container traffic is typically 30 percent lower than the second half of the year). In the short term, this situation causes very serious capacity problems in the form of vessel and cargo delays, port congestion surcharges, slower throughput of the port, and higher costs to customers. Exporters subject to tight deadlines cannot count on meeting them. Port performance is further affected in the following ways: _Inability to service ships at berth_ . In 2009, the average ship waiting time was 2.3 days, and the average number of port days for containerized vessels was 3.1 days. The ratio of the waiting time to time at berth (the waiting ratio) reaches 74 percent for container vessels at Mombasa. Full container ships do not tolerate a waiting ratio of more than 10 percent. They charge demurrage fees or impose a freight surcharge. The waiting ratio is a huge deterrent to shipping lines as it implies uncertainty in port call time.

_Yard capacity_ . Previous evidence had suggested that dockside congestion had been reduced and dwell time had been lowered. However, recent findings suggest that older evidence was distorted. Goods destined for the Kenyan market are quickly transferred to Container Freight Services (an inland, privately operated container depot), but transit cargo waits at the dockside.

_Clearance and transfer_ . The complexity of clearance processes, which involve a mix of government processes, logistics, and transport infrastructure, adds to the delays in clearing and forwarding freight. Increased imports have placed land transport systems under stress, highlighting the need for efficient intermodal connections. The lack of integrated rail and road links implies that Mombasa is unable to efficiently handle goods. The failure of the railway system has resulted in new truck movements in and around the port, which increase congestion and cause parking problems. Rail transport that previously carried 80 percent of transiting goods in Mombasa in the early 1970s now carries 5 percent of Mombasa’s freight. There is no alternative today to heavy trucks, which move through an increasingly crowded town center.

Overall, the port contributes 58 percent of the total transportation time for cargo destined to Kampala and 50 percent of the time for cargo heading to Kigali. For low-value bulk commodities, which constitute the highest proportion of cargo entering Mombasa, port costs account for over 15 percent of the delivered market value (excluding the costs of doing business in countries beyond Kenya).

Source: World Bank 2010c.

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