Cargo traffic on the line is believed to have been lower than anticipated since regular services began at the start of January, despite the fact that promotional tariffs are on offer until 5 April. In addition, in early February, the Kenya Ports Authority (KPA) reduced handling charges for 20ft containers at Embakasi from KES10,506 (US$103) to KES8,160 (US$80), in an attempt to boost business.

The Kenya International Freight and Warehousing Association (Kifwa) has appealed to the KPA to change its policy on ICD use. In an open letter, secretary general Ahmed Shimbwa stated that Kifwa was “shocked that all un-nominated containers consigned to importers up country have to be railed to ICD Embakasi by SGR for final clearance”. He continued: “Whilst our association is fully supportive of SGR becoming a success, we must point out that any business given to SGR should be on a voluntary basis – that is, ‘willing buyer, willing seller’, and not by force.” The organisation has threatened legal action to stop the practice.

Catherine Mturi-Wairi, managing director of the KPA, countered: “We, together with Kenya Railways, have engaged and continue to engage all industry players to ensure that the SGR is a success in terms of economies of scale and cost-reduction in the transport and logistics sector.”

Kifwa has also complained that the cost of storing containers is higher at the ICD than at the Port of Mombasa. Kifwa chairman William Ojonyo said that agents wanted to have 30 days of free storage at Embakasi, up from just four days at present. It has also been claimed in Kenya that the KPA is deciding whether some containers should be processed at Mombasa or Embakasi, based on its own priorities, rather than those of customers.

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This complete item is approximately 400 words in length, and appeared in the February 2018 issue of WorldCargo News, on page 15. To access this issue download the PDF here.