Lethal cocktail

Serious port congestion last reared its head in these two key African ports, which not only act as the main cargo gateway for their respective host nations but also for a an array of landlocked nations beyond their borders, in 2008.

At this time, container volume was growing year-on-year in healthy double digit lumps but salvation came about in the form of the 2009 downturn which flattened out the strong growth curve.

Since this time, there has been much talk about introducing major new container capacity but no such capacity has yet been introduced, instead only capacity upgrades at the Hutchison operated container terminal in Dar es Salaam, Tanzania International Container Terminal Services (TICTS), and at the public container terminal in Mombasa.

Why hasn’t the initiative been seized and the period of comparative calm that prevailed up until last Christmas been used to bring on-stream major new terminal capacity? In Dar es Salaam – where cargo shippers are now facing congestion surcharges from lines in the order of $150 per 20ft container and $300 per 40ft container – the problem has essentially been one of securing finance for a new container terminal development. It is understood that this problem has recently been solved with the supply of nearly all required funding from China.

Further, Tanzania Ports Authority has been busy preparing for port development on a national scale. The implementation of a new Tanzania Port Authority Masterplan is forecast to cost between $400m and $600m commencing in 2013/14. This plan includes the construction of two new container berths, dredging of the entrance channel and development of a large inland cargo freight station at Kisarawe south of Dar es Salaam city.

The fact remains, however, the short term future promises to be one of pain for lines and cargo shippers alike. In 2011, Dar es Salaam handled 475,000 teu compared with 415,000 in 2010. TICTS is planning to add new equipment and yard area, plus administrative changes have been made that aim to ease container congestion but clearly this will not be enough to efficiently meet demand. TICTS is already operating beyond its rated annual capacity.

If Dar es Salaam’s situation is worrying then the one in Mombasa has to be seen as dire. The port commenced a major new dredging programme in mid-2011 but this was halted over an alleged contract breach. The plan is to dredge to a depth of 15m in the port’s main access channels and to 12.5m alongside the main berths.

Back in 2010, the port had also announced plans to convert berths 11-14 for container operations and to offer these berths by way of a public tender to a private operator. The plan ran into major opposition from the so-called coastal MPs who represent the interests of much of the existing KPA workforce and hence it has seen no movement.

The delay in implementing the dredging programme also means a delay in moving forward with the construction of a new JICA funded container terminal to be located west of Kipevu. This project has already been delayed by several years and sad to say it seems to highlight the malaise of government when it comes to delivering a major step forward for the port of Mombasa.

Underpinning the delays in major port projects are a variety of factors that comprise a lethal cocktail: factional in-fighting between politicians; different camps backing different schemes (and not without some vested interest), corruption, the distraction of other projects (Lamu serving southern Sudan), and the resistance of the dock labour force to change.

For Mombasa in particular, the immediate future promises to get worse before it gets better and without a shadow of a doubt represents a missed opportunity for the country as a whole.