Essay On Mombasa Port

752 Words 4 Pages
Ports are a key link in the logistics supply chain, and significant economic drivers. The Mombasa Port is the main linkage to East and Central Africa. It is the largest port in the country that connects the Northern Corridor Countries of Kenya, Rwanda, Uganda, Burundi, Democratic Republic of Congo, Northern Tanzania, South Sudan and Ethiopia (See map 1 below).

The Kenya Ports Authority (KPA) mandate is: regulation, development, and operation of all the ports along the Kenya’s coastline.
In 2014 cargo totaling 24.875 million tons passed through the Port. Container throughput totaling 1.012 million TEUs passed through the port. Table 1 below shows the performance of the port from 2010 to 2014 according to KPA (2014).
In 2014 the port handled
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The total cargo throughput increased by 11.5 per cent while the container traffic grew by 13.2 per cent. Traffic destined to transit countries recorded a growth of 7.3 per cent registering 7.199 million tons. Uganda had the biggest transit market share which grew by 12.4 per cent from the previous year.

According to the (MPCC, 2014), over 30 per cent of the value of goods are attributed to logistics costs while only 4 per cent in the highly efficient corridors. Ports are important linkages in the transport logistics and stimulate growth of the economy. Efficiency of the Port is essential in the facilitation of trade.

The Customs Services Department of the Kenya Revenue Authority (KRA) principal function is revenue collection. In addition the Customs Services Department is mandated to facilitate legitimate trade; protection of the country from illegal entry and exit of prohibited goods.
The huge volumes handled and the high cost of doing business requires enhanced trade facilitation. Trade facilitation enhances the country’s export competitiveness in the global market and reduces the cost of imported goods. Minimization of delays in the supply chain reduces trade transaction costs and improves imports, exports and increase investments. In addition, facilitation in trade creates substantial benefits including: improved GDP, trade expansion, more investments, more profit and additional revenue
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The implementation of the Charter commenced in June 2014. The objective of the Charter is to develop a framework of collaboration that binds the port community to obligations, specific tasks, timelines and set targets. The charter’s goal is to achieve port and supply chain competitiveness, effectiveness and efficiency so as to drive the regional economies towards becoming an attractive investment

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