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Home Industry Updates

Cargo clearance delays blame now shifts to port users

February 21, 2020
in Industry Updates, News
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Delays in cargo clearance blame at the ICD Embakasi have now shifted to the port users who are accused of delaying in lodging cargo clearing documents into the systems.

Kenya International Freight and Warehousing Association (KIFWA) chairman Mr. Roy Mwanthi says that some importers and clearing agents do not lodge document in time despite the fact that there is a window provided for pre-arrival clearance.

The yard is currently operating at less than 50 percent occupancy according to weekly ICD reports on the situation of the yard. However, the same reports indicate that it is only about 45 percent that is evacuated at the port in four free storage days. According to reports, the average cargo dwell time at ICD is between 6-8 days.

Going by the yard container population today, the KPA Corporate Communication Officer Mr Haji Masemo said that the ICD is not supposed to experience any congestion or cargo clearance delays if all the players were observing their Service Level Agreements.

“SGR is currently able to move 8-10 trains everyday and having addressed the teething problem faced when we started operations, delays are not expected,” Masemo said.

When the Standard Gauge (SGR) started operations two years ago, all the cargo bearing Nairobi addresses was delivered to the ICD, a move that caused serious congestion. This was due to the fact that the systems were not properly integrated and there were a lot of other teething problems.

“We have carried out a lot of infrastructural development around the ICD including gate clearance and the systems are now talking to each other, a move that has eased congestion,” Masemo said.

Although there is need to appreciate the difficult being experienced to clear cargo in 4 days, according to William Ojonyo, a once KIFWA official, there is need to punish agencies that cause delays by surcharging them. The single window cargo clearing system platform has brought on board 37 cargo interveners and it is easy to identify who cause.

The delays are not new, according to Ojonyo and before SGR started operations, importers and clearing agents used to negotiate for a 30 days free storage period with Container Freight Stations (CFS) operators in Mombasa to allow them time to deal with industry inefficiencies in clearance of the goods, which is not possible at ICD.

When the CFSs were created in 2007, about 60 percent of the cargo through the port of Mombasa attracted storage charges. Since they were required to apply KPA tariff, they were supported to generate profits from storage charges of overstayed cargo.

They grew in number and had as well to be innovative to remain a float with tailor-made arrangements with their customers, largely serving as distributive points as well as providing warehousing services. Some CFSs allowed cargo to stay in their yards for up to 60 days..

President Uhuru Kenyatta issued a directive to kick out other cargo interveners from the ICD save for KPA, Kenya Revenue Authority (KRA) and Kenya Bureau of Standard. However, the viability of this move was put into question since the government did not create a substitute mechanisms of how to deals with their roles.

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