Hordes of investors will soon stream to the coastal city of Mombasa after mega infrastructural projects are complete, with President Uhuru Kenyatta launching roads and the standard gauge railway on June 1.
Transport CS James Macharia says the projects will not only help ease the way of doing business but also put Kenya in the league of other countries with the best infrastructural developments.
On Wednesday last week, Macharia toured several projects at the Coast aimed at opening up the coastal city.
These include the second container terminal, the ongoing construction of airport road, standard gauge railway marshalling yard, Mombasa west terminal and the Dongo Kundu bypass.
Macharia says several airlines have shown interest in flying to the coastal city and as such, a well opened-up road and sea networks are critical.
The terminal cost Sh27 billion, while the airport road is on a Sh6 billion budget.
At the airport road, the CS pointed out that the road will ease entry and exit in Mombasa.
“One cannot talk about airport without roads. We have settled compensation worth Sh1.7 billion, while the remaining Sh800 million will be paid because we want to identify the right people,” he said, adding that compensation remains a headache.
“We cannot concentrate on the standard gauge railway alone as projects have to be synchronised,” he said.
The CS says for the Moi International Airport to sustain its status, it has to have the best roads linking it.
Macharia says investments in road, railway, airport and sea ports are interconnected.
Kenya Ports Authority managing director Catherine Mturi-Wairi joined Macharia at the second container terminal.
Facilitating business
The CS said roads, sea ports, railways and airports remain critical to easing the way of doing business.
Macharia said two years ago, 800,000 containers used to be handled per year, but now 1.6 billion are being handled, and with the anticipated completion of phase two, it is projected to hit 2.1 billion.
Phase I of the terminal cost Sh27 billion. Phase II is about to start, Macharia said.
Macharia said the country is now on top of the game, as it is ranked number four in Africa in the manner it handles cargo.
He said a special economic zone will be constructed in Naivasha to take care of cheap power to support hydropower industries.
Mturi-Wairi said the investments that have been done are strategic.
“We are handling 1,300 containers a day, and with SGR, we will handle more because one train will carry 423 containers, bringing much-needed efficiency,” she said, adding that robust measures are being put in place in collaboration with KRA to curb contraband goods.
The MD said they are making plans to ensure that once containers arrive at the port, they are declared at the sea before docking, and cleared if documents are in order to give room to other containers.
“Once the ship docks and documentation is in order, clearing is immediate because it only takes 30 minutes to process documents”, she says.
Mturi-Wairi dismissed reports that clearing agents might lose their jobs as dry port in Naivasha takes shape.
“That is a fallacy, because the port is in Mombasa. There is no way you can carry this ocean to Naivasha, so the clearing has to be done in Mombasa then the cargo will move into hinterland. This means there will be more activities happening in Naivasha, Kisumu or even Rwanda, but clearing has to be done in Mombasa,” she says.
The MD said if documents are not in order, clearing could take up to three days.
She said through the SGR, cargo will be moved quickly, freeing the yard for other activities.
The MD said KPA has procured more equipment to handle more cargo.
Macharia said an inland container depot, spending Sh20 billion so that some of custom work will be cleared in Nairobi to make sure we do not have containers lying around here waiting to be transported to Nairobi.
The CS said they are now focusing on power supply to SGR, water, expedition of land acquisition and security.
Macharia said the cost of using the SGR as means of transport will be dertemined soon.
Credit paying off
The CS dismissed claims that the country is over borrowing, saying the gains have already been felt.
Macharia said even though some quarters complain that borrowing has shot up, GDP is also going up many times.
He also dismissed claims that the SGR is too expensive compared to Ethiopia’s.
Phase I of SGR from Nairobi to Mombasa stretches for 472km at a cost of Sh327 billion, while the Ethiopia’s first fully electrified cross-border railway line in Africa, linking Ethiopia’s capital, Addis Ababa, to the Red Sea port of Djibouti — a stretch of more than 750km — cost the country Sh340 billion.
The CS said Kenya’s SGR is class one while Ethiopia’s is class two.
“We carry more load compared to our counterparts. The speed is also fast,” he said, adding that 60 students have been trained on SGR operations.
Already, truck transporters fear the possibility of losing their jobs.
But Macharia says there is work for everyone as road networks improves.
“Both sectors are complementary. Some people will still prefer to move their goods through roads as we continue to open up road network,” he said, adding that Lamu-Isiolo is being constructed to provide opportunities for trucks.
Kenyans on social media have been criticizing SGR coaches, saying they look old.
The CS dismissed the claims, saying they are “brand new and that there is value for money”.
Macharia said a curriculum for railway training is being set.
The CS said 800 wagons and 40 passenger coaches have been received ahead of the June 1 launch.
The CS said there are plans to sing a document for China Road and Bridge Corporation and an Australian firm to maintain and operate SGR for 10 years.
Macharia assured trucks that they will not lose their business, saying the 580km Lamu-Garissa-Isiolo road provides them with opportunities.
“SGR will remove 40 per cent of cargo from roads, helping us with road maintenance,” he said, adding that 22 million tonnes will be carried using SGR every year.
The CS described the Mombasa SGR terminal, which is 14,000 square metres, as “extraordinary and gives a lot of pride, as it looks better than JKIA.”
The terminal, which handles 1,500 people at a go, cost Sh880 million. There are 33 other stations spread across the country.
Macharia says shops, hotels and other businesses will be set up at the terminals, allowing people to make a living.
The CS, who later toured Dongo-Kundu bypass, said KRA’s 3,000 acres are set to be an economic zone.
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