Investors set eyes on Lamu port as the consultative discussions progress on matters of growth and utilization of Lamu port by the Ethiopian government, which expects to dock its first-ever ship loaded with fertilizer this month.
The future of Lamu port has never looked more promising, according to Mr. Silvester Kututa, the Founder and Executive Chairman of Express Shipping & Logistics (E.A.) Ltd (ESL) and the Chairman of the Kenya Ships Agents Association (KSAA).
ESL, the only indigenous ship agency, established an office long before the port started operations in 2021.
“When we saw the port of Lamu getting closer to completion, we posted a staff member there much ahead of time. Everybody did not understand why we did that,” he said.
The Kenya Ports Authority (KPA) recently acquired three state-of-the-art Super Post Panamax Ship-to-Shore (STS) gantry cranes. These cutting-edge cranes, equipped with advanced technology and capabilities, will revolutionize Lamu port operations and position the Port as a global maritime hub. Industry stakeholders viewed the lack of modern equipment as a huge challenge for the use of the port
“The procurement of these cranes, at a total cost of USD 31,493,808 (including CIF), underscores our commitment to managing our premier ports, including the Port of Mombasa and Port of Lamu. These ports serve as vital gateways for regional and international trade, connecting our nation to the global economy,” KPA Managing Director Captain William Ruto said.
What sets these cranes apart is their advanced technology and capabilities. With a reach of 24 containers across and the ability to handle modern vessels of over 18,000 TEUs. These cranes are equipped to compete with the best ports in the world and attract Super Post Panamax vessels, according to Captain Ruto.
With branches now in Mombasa, Nairobi, Tanzania, and Uganda, ESL offers ship agency, logistics, customs clearance, ship brokerage, and consultancy and is today clearing about 10 percent of the cargo that passes through the Mombasa port, a feat the firm hopes to replicate in Lamu port.
Lamu port depth will attract transshipment cargo for Tanzania, Mombasa, Somalia, the Indian Ocean Islands of Comoros, Madagascar, Seychelles, and South Africa, which is prone to on and off congestion, which makes Lamu port an attractive alternative, according to Kututa.
The completion of the roads and other infrastructure projects is just a matter of time since both Mombasa and Lamu are serving underdeveloped countries that will import huge materials, he added.
Last month, Garissa County Commissioner Mr. Mohamed Mwabudzo assured the Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor project road contractors of adequate security as they embark on the works.
The future is dazzling if the corridor is extended beyond South Sudan and Ethiopia, according to Kututa, who said that it should also be extended to reach West Africa’s Douala-Lagos-Cotonou-Abidjan Corridor and run through Cameroon, Nigeria, Benin, Togo, Ghana, and Côte d’Ivoire, creating synergies for a mega-market for the port.
Kenya hopes to ride on the Africa Continental Free Trade Area (AfCFTA) agreement to secure business for the Lamu Port.
The LAPSSET corridor will also open up the Northern part of Kenya. The LAPSSET Corridor Development Plan has divided the Northern Eastern region into nine (9) growth areas; Lamu Growth area, Garissa-Bura growth area, Wajir growth area, Moyale growth area, Lokichogio growth area, Turkana growth area, Isiolo-Meru Archers Post growth area and the Mwingi growth area.
Each of the growth areas has an identified set of economic activities and investment opportunities that will spur economic growth of the area and the Northern Eastern region. This includes the Isiolo-Meru area being a logistics center along the corridor and a resort city; Moyale, Wajir, and Garissa-Bura growth areas mainly for the set up of Export Processing Zones for livestock and animal by-products. Directly related to the Port is the potential of Isiolo, Lokichogio, and Moyale for the setup of Inland Container Depots, which may increase the transport efficiency, and facilitate cross-border trade with neighboring countries that will be linked firmly by the LAPSSET Corridor namely Southern Sudan and Ethiopia.
Kenya Ships Agents Association (KSAA) wants the government to raise productivity levels at the ports and invest in infrastructure to support anticipated growth in the volume of business this year.
Kenya International Freight and Warehousing Association (KIFWA) national chairman said privatizing Lamu port was a good idea.
“Bringing a private investor into Lamu Port is welcomed since the facility has been idle for many years and is key to the government. The move is one way to make the project not turn into a white elephant,” he said in an earlier interview.
The article was published by the editorial team at the FEAFFA Secretariat. For any enquiries, contact us via Email: editorial@feaffa.com/ freightlogistics@feaffa.com / onionga@feaffa.com Tel: +254733780240
