Time to shine
Mombasa needs to take charge of its berth commissioning
You could say here we go again and you would be right.
The port of Mombasa – Kenya’s major port and an important port for the region as a whole – made an undertaking to introduce the modern way of port working by largely withdrawing from front line cargo handling operations and adopting the landlord port model in 2002.
While the commitment was made, however, it was never in essence honoured and the port has for the last decade remained a public sector run port in all key respects – operations and management.
In effect, every time serious reforms have been mooted by government or port management there has been what amounts to a political backlash initiated by the so-called coastal MPs who draw a lot of support from the Mombasa dockers and docker’ unions.
And now as the port of Mombasa approaches the concessioning of Berths 11-14 for container operations and the concessioning of multiple conventional cargo berths, this strong anti-privatisation feeling is manifesting itself again. Amason Kingi, the Fisheries Development Minister, for example has stated that leaders are united and ready to block the process.
A common theme that runs through the objections of such parties is that the state is handing over assets to the private sector with the implication that these are not recoverable. Further, that this process will lead to major redundancies of port personnel.
The reality, however, is that no assets are handed to the private sector on a permanent basis – concession agreements are effectively a handover of a given area for a stipulated period with all sorts of terms and conditions attached to them. The terms and conditions are stipulated by the port or government agency concerned and of course they have in mind securing general benefit to the host country as well as specifically efficiency and other benefits to the port concerned. In effect, they usually seek to secure a modernisation of port working in a given sector including determining a programme of investment that is proactive in terms of accommodating new cargo volume.
And in this context, worldwide experience shows that it is a system that works and as such is job generative and not one that stultifies job creation. Further, it has been proven time and time again that if the core port unit works this, in turn, leads to wider job creation in the port community. An efficient port attracts diverse businesses with wide-ranging employment needs.
It is nevertheless true that to enjoy the latter situation there needs to be a step change involving some pain before gain. In practical terms, a switch from the old system whereby the port undertakes both management and operations to the landlord system, and where the majority of front line cargo handling operations are concessioned will inevitably involve some retrenchment of the workforce.
This, though, can be a managed process rather than the mass “slaughter” that is often portrayed by politicians opposed to change. It can entail measures such as government retrenchment and/or voluntary redundancy programmes which have been undertaken very successfully elsewhere, Nigeria for example.
Bottom line, you also have to examine the reality of whether the port will progress if you stick with the same system – and in Mombasa’s case the signs are not positive. As a recent World Bank report underlines, Mombasa faces major issues as regards keeping pace with demand – the container sector being the prime example where it has virtually reached saturation point with no new capacity near coming on line.
Images for this article - click to enlarge
Unless otherwise stated, all images copyright © Mercator Media 2012. This does not exclude the owner's assertion of copyright over the material.
