Speech by President Uhuru Kenyatta | Commissioning of Phase 1 of KPA New Container Terminal

SPEECH BY HIS EXCELLENCY HON. UHURU KENYATTA, C.G.H., PRESIDENT AND COMMANDER IN CHIEF OF THE DEFENCE FORCES OF THE REPUBLIC OF KENYA THE COMMISSIONING OF MOMBASA PORT 2ND CONTAINER TERMINAL, MOMBASA PORT, 3RD SEPTEMBER, 2016

Distinguished Guests, Ladies and Gentlemen,

It is good to be here. I have been in Mombasa several days now, and it has been a fantastic visit. I am particularly pleased to be here today commissioning this critical project - the first phase of the Second Container Terminal.

The completion of this phase of the project marks yet another milestone for our maritime sector; it heralds a new era in the development of our Ports and their capacity to facilitate the region’s international trade.

In truth, the import of this project cannot be gainsaid. International trade records show that over 90 per cent of the world’s cargo is transported by sea. Ports are therefore critical to the economic growth of any country.

This particular Port, has always played a crucial role not just in our own development, but in the development of the region. It is a lifeline to the regional economies who depend on it for a significant and growing number of their imports and exports. To give an example: the port’s transit traffic to the East African region increased from 7.2 million tons in 2014 to 7.7 million tons in 2015 – an 8.2 per cent growth.

As a Government, we truly appreciate the importance of Mombasa Port to the country and the region, which is why we have prioritized port development, channeling significant funds towards the expansion of Kenya’s facilities. Two years ago, we were here commissioning Berth No. 19 at the Port’s Terminal 1.

The new Container Terminal we are commissioning today, is capable of handling fourth generation vessels of 6,000 Twenty Foot Equivalent Units (TEUs) capacity—and we look forward to the positive impact that will have on the private sector, and—consequently—on citizens.

Crucially, with the discovery of oil and gases in the region, ports are poised to play an even more integral role in trade facilitation. Kenya itself discovered oil in Turkana and intends to export its first shipment in June 2017.

Consequently, my administration is in the process of improving oil handling capacity in this Port.

Moreover, the Kipevu Oil Terminal will be relocated to a more suitable location to allow for expansion. The multi-billion shilling project will involve the decommissioning of the existing Kipevu Oil Terminal and the construction of an off-shore jetty near Dongo Kundu.

Upon completion, the new terminal will have the capacity to berth four ships of up to 100,000 tons at once, in contrast to the current maximum of one vessel of no more than 80,000 tons, at a time. This project, together, with the expansion of the Pipeline capacity between Mombasa and Eldoret, will enhance efficiency in the sector and generally reduce costs both locally and in the region.

Finally, as Government, we also want to see Kenya Ports Authority running several commercial ports within the next 5 years, including the Lamu Mega Port, Kisumu Port as well as other smaller but highly developed ports along the coastline.

Even now, Government is actively engaged in plans to develop small ports along the coast line into commercially viable entities. Some of the ports we will be targeting include: Shimoni, Malindi and Kiunga.

Each port of these ports has been earmarked for development either as a fishing port or a commercial port.

But even as we invest in the ports, my administration recognizes that Kenya cannot attain industrialization if our other transport systems are not supportive of the Port’s increased capacity and efficiency. Which is why we continue to prioritize the LAPSSET program and the construction of roads and railways across the country.

The Standard Gauge Railway (SGR), for example, is well underway and promises to be transformational—a game changer in our transport system, and to enhance intra-African trade, we will be engaging other members of the East African Community with a view to having the rail adopted across our region.

I am also happy to inform you all that the construction of an alternative route from Mombasa Port to Burundi through Voi, Taita Taveta, Holili border, Singida-Kobero border and finally to Bujumbura, is ongoing. This Corridor will cover about 1545 Kms, which will reduce the distance from Mombasa to Bujumbura through the Northern Corridor by 358 Kms.

Collectively, our investments in infrastructure—including our ports—open immense economic prospects for our country. I’m therefore grateful to all the partners supporting these developments, and especially grateful to the Government of Japan for their partnership towards enhancing our port capacity. Recently, the National Assembly approved Kshs 27.30

billion from JICA for the second phase of the Second Container Terminal project, and we will be fast tracking the availability of those funds to ensure construction can soon begin.

Indeed, I look forward to returning soon to commission the second phase of this project and many, many more of its kind.

Thank you.