(Mombasa) – The Kenya Ports Authority (KPA) is set to handle a record 2.2 million twenty-foot equivalent units (TEUs) by the end of 2024, a 20% increase from last year’s figures, according to KPA Managing Director Capt. William Ruto.
The port has already surpassed last year’s target of 1.6 million TEUs, reaching 1.75 million TEUs to date. This growth is attributed to enhanced operational efficiency and streamlined processes.
“The port has seen impressive growth, with cargo volumes exceeding expectations,” Capt. Ruto said. “In the last two years, the port has achieved growth that has not been seen before.”
Ruto highlighted that the global economy is growing at 5%, with East Africa experiencing a similar increase of 5-7%. He emphasized that the growth in port operations has exceeded expectations, with a current capacity of 2.1 million TEUs.
To accommodate further growth, KPA is expanding Container Terminal 1 (Berth Number 19B). The expansion project will add 240 meters of key length, increasing the port’s capacity by an additional 300,000 TEUs. A contract for this expansion is expected to be signed soon.
Before Ruto’s appointment as Managing Director, the port’s TEU volume was 1.4 million. By the end of 2023, the port handled 1.6 million TEUs, representing a 12% growth.
Under his leadership, the port now serves over eight transit countries, and the transit market has grown by 35%.
KPA has also made significant investments to improve efficiency. This includes modernizing the Terminal Operating System (TOS) and acquiring advanced equipment to enhance operations. Additionally, Ruto noted that the new oil terminal has greatly reduced waiting times for ships, improving overall efficiency.
The reduction in waiting times has led to a decrease in demurrage costs, which are often passed on to consumers, especially in the petroleum sector. This has contributed to a reduction in fuel prices.
“The investment in the oil terminal is crucial for the port’s modernization, and it will play a vital role in strengthening Kenya’s position as a leader in sustainable port management in Africa,” said Ruto.
Despite challenges in the Red Sea region, KPA has maintained strong performance. Ship turnaround times and rail productivity have also improved.
Agayo Ogambi, CEO of the Shippers Council of East Africa, also praised the progress at the port. Ogambi, who chairs the Port Charter, noted that the port’s performance and efficiency have improved due to monitoring by the charter.
“We have reduced cargo dwell time in Nairobi from 4.5 days to 3.5 days, and Mombasa has reduced its dwell time to under 79 hours,” Ogambi said. “These improvements are good indicators of the port’s efficiency.”
Ogambi mentioned that the next phase of the media tour would include visits to ICD Nairobi, Naivasha, Kisumu, and Malaba to assess whether the targets set in the Port Charter are being met.
He stressed the importance of enhancing transport and logistics efficiency, as high costs in these areas can hinder competitiveness.
Looking ahead, Ogambi highlighted a 17% increase in traffic cargo through the port from 2022 to 2024 and a 14% increase in cargo destined for Burundi. However, he also identified the stability of the system as a challenge, urging the government to improve redundancy plans and ensure business continuity.
“The port must ensure a steady supply of resources to meet demand, as delays in clearing cargo remain a significant challenge,” Ogambi concluded.