The volume of export reefer cargo passing through the port has been on the rise. The Kenya Ports Authority (KPA) Managing Director, Captain William Ruto, recently revealed that in the first quarter of this year, KPA recorded 6813 TEUs, a 6 percent increase compared to the same period last year.
Captain Ruto said that so far, KPA has installed a total of 1367 reefer plugging points: Port of Mombasa 795, Internal Container Depot in Nairobi 336, Port of Lamu 216, and Naivasha ICD 20.
Kenya started transporting horticultural produce by sea in a move officials said would reduce the carbon footprint and improve earnings. This is after Kenya signed a pact with the European Union, one of its major export destinations, agreeing to transport fresh produce via sea after Mombasa port complied with requirements last year.
All perishable goods approvals are done at the point of loading, and permit approvals are granted by the KenTrade-operated National Electronic Single Window System. Consumers, especially in Europe, have been on the frontlines of this push for a radical decarbonization of value chains that deliver fresh produce to their supermarket shelves and dining tables. Horticulture generated $152.3 million in earnings in 2022 for Kenya.
The support from the EU was part of the five-year $380 million Business Environment and Export Enhancement Programme implemented by TradeMark Africa, whose goal is to enhance the competitiveness and share of exports of Kenyan avocados, mangoes, and vegetables to Europe and other international markets, by focusing on resolving production, storage, logistics, and value addition challenges that the sector faces.
“Sea freight is viable and a win-win option for all as Kenya gears to increase its volume of exports by 50 percent by the year 2030. It is a more sustainable alternative, less expensive, and has an enormous carrying capacity. As TradeMark Africa, we are working closely with our development partners and private sector players to establish digital corridors to enhance market access and increase transparency and traceability of Kenya’s horticultural produce in the destination markets,” TradeMark Africa Deputy CEO Allen Sophia Asiimwe said last year.
Early this year, the CS Roads and Transport Hon. Kipchumba Murkomen, signed a Memorandum of Understanding with the Kingdom of the Netherlands to develop a cool-logistics corridor.
“The MoU I signed with the Dutch Ambassador in Kenya, Maarten Brouwer, will facilitate private investment in cool-logistics infrastructure to support the transportation of fresh produce by sea,” the CS said in March this year.
Kenya’s perishable exports could soar, creating millions of jobs, thanks to the new agreement with the Netherlands. The signed Memorandum of Understanding (MoU) paves the way for a “cool logistics corridor”—a s sea freight system specifically designed for fresh produce.
This project has the potential to double or even triple Kenya’s horticultural exports. This surge could create up to 3 million new jobs within the horticultural and agro-logistics industries. The MoU, signed with the Dutch Ambassador to Kenya, facilitates private sector investment in logistics infrastructure.
The project encompasses various logistical aspects, including port facilities, transportation networks, and regulations. It aims to revolutionize fresh produce transportation, which will benefit trade between Kenya and the Netherlands while propelling Kenya’s agricultural sector forward.
The CS acknowledged Kenya and the Netherlands’ long-standing relationship built on trade, transport, and development cooperation, with nearly half of Kenya’s flower exports already reaching the Netherlands and avocado exports rapidly increasing as well. This cool-logistics collaboration promises to further strengthen ties between these two key gateways—Kenya to East Africa and the Netherlands to Europe.
The MoU presents an exciting opportunity for the private sector, along with other ongoing developments around the Port of Mombasa, like the Dongo Kundu Special Economic Zone, creating a favourable environment for such investments. This private sector-led initiative empowers businesses to adapt their infrastructure to seamlessly integrate with the Cool Logistics System.
Speaking during a recent media engagement facility visit at Vertical Agro EPZ Limited, both KPA Board Chairman Hon. Dalu Tayari and Capt. Ruto emphasized the need to recognize the global trends towards the movement of fresh produce and horticultural commodities via sea mode of transport.
“Globally, ports play a crucial role in growing the economies of a nation and the region at large. At the policy level, the board has ensured the provision of a conducive environment for the growth of the port industry,” said the chairman.
He commended the CEO of Vertical Agro Limited, Mr. Shah Tiku, and his team for their dedication and expertise, which have significantly boosted Kenya’s fresh produce via sea transport.
Highlighting KPA’s initiatives towards facilitating efficient and safe cargo delivery through the country’s ports, Hon. Tayari outlined the Authority’s dedication to overseeing crucial port reforms aimed at the elimination of non-tariff barriers along trade corridors.
This article was published by Githua Kihara, an editorial consultant for FEAFFA’s Freight Logistics Magazine. For any inquiries, please contact us via email at editorial@feaffa.com or freightlogistics@feaffa.com, or reach out to Andrew Onionga directly at onionga@feaffa.com / +254733780240.
