Diplomat East Africa Special Report - GBHL

Grain Bulk Handlers >> Not a Grain Lost pg 54 >> Interview with Chairman Jaffer pg 59 >> 1Oth Anniversary Address pg 62

Prime Minister Raila Odinga and GBHL Chairman Mohamed Jaffer

SPECIAL REPORT GBHL

Not a Grain Lost: How GBHL Revolutionised Bulk Handling of Cereals This massive World Bank-funded Complex, now celebrating this first decade, is one of its kind in the region and a tremendous success. Diplomat East Africa's WYCLIEF MUGA interviewed Mr DAVID HARRIS, who helped construct the terminal DIPLOMAT EAST AFRICA: Why don’t you start at the beginning and tell us how you came to be working here?

DEA: So why was this facility needed, when grain was already being handled at the port? Why this hurry to get it built?

DAVID HARRIS: I actually came here to construct this grain terminal. And I’d had a lot of experience previously — I had worked for the World Bank through Mersey Docks and Harbours Company in Maputo, where I rebuilt the sugar terminal — they have a big sugar terminal there which unfortunately had been destroyed during the civil war in Mozambique, together with other things like cement factories, refineries and everything else. In fact, the civil war was still going on when I first went there. So we rebuilt the terminal and operated it for about eight or nine years after that, and it was a great success.

And on the strength of that Mersey Docks and Harbours and the World Bank asked me if I would come here and assist with the construction of this grain handling terminal. Which I did, and it took us exactly 13 months to build. I arrived on the first of October 1998, and we actually did our first ship in January 2000.

DH: Two reasons. First the port was getting congested because they could not handle ships fast enough.

And secondly, when you borrow money from the World Bank, from Day One, you begin to pay interest; before you have even done the first thing. So by the time you get to the end of your construction here, if you are not earning you are in trouble. So obviously the sooner you start earning, the sooner you pay back. So construction has to be rapid and successful.

DEA: Looking at this massive complex, one would think it would take longer than that to build. Did it all come here prefabricated?

DH: Well it did up to a point: The silos were built here; the concrete had to be laid; the buildings had to be constructed; then there was the big tower out there, etc. The machinery came in kit form to be assembled here; the ship on-loaders came in a kit form to be assembled here. But most of it was all constructed here.

We actually made a workshop in Shed Three on the port, where we could build everything that we needed. And we basically finished it all in 13 months. We had been given 12 months to build it, and we completed it a month after.

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DEA: How much cheaper is it to bring grain in bulk, as opposed to bringing it already in bags?

DH: Well, first of all the ship can turn round and unload quicker, which obviously makes it considerably cheaper. The thing is that ‘shipping time’ and ‘time in port’ are the two crucial factors — plus the cost of the bags, of course.

DEA: And all these can be substantially reduced if you can handle grain in bulk?

DH: Absolutely. And the one thing we have been trying to get the millers to do — from Day One — is to install for themselves a little silo, or a couple of little

silos, at their mill, so we can deliver in bulk. Why have this double handling all the time? Why should we need to bag it all the time — then they take it off in bags, and when it gets to their mill, they tip it off the bag and into the mill. Why don’t they get themselves a silo, so we can deliver in bulk, and they take it in bulk, they grind it in bulk? There are some silos in Mombasa, but they are not next to mills: they are purely for storage. But if you are an importer with silos purely for storage, you are going to face a big problem at the port when trying to get your lorries out of the port. It’s chaos trying to get out.

DEA: Accepting that your work was essentially technical, what was your understanding of the broader policy issues? Why did Kenya need a specialised grain terminal?

DH: Purely and simply because Kenya, unfortunately, is not capable under the present system of supplying all its own needs. You need massive thousand-acre farms — or ten-thousand acre farms — to supply the amount of grain that’s needed here. You cannot provide all the grain needed in Kenya on very small farms, using the most rudimentary methods, unfortunately. What happens here is that when the father dies and he has four sons, the plot of land he owns is split into four; then the next generation is born and when those four boys die, each one of their plots is GRAIN HOUSE:

The Headquartes of GBHL in Mombasa city CONVEYOR BELT:

GBHL has invested heavily in technology

PHOTOS: GBHL

A grain terminal is a very important piece of equipment for any port — or for any country that has to import grain. Because to do it by the bagging method, if it is straight off the ship, is fine, but it’s expensive, and it’s fairly wasteful. Because a lot of the grain spills, which is usually because the “grabs” are inefficient — they don’t always close properly and they leak. And the leakage does not always fall on hard ground where you can clean it up; it drops into the sea, off the side of the ship. But having said that I must say that the bagging operations are also quite good. They were the link between the ship bringing the grain all in bags, and the ships bringing it more cheaply in bulk. So they were a step up.

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split into four or five, for their boys. So you finish up with very small plots, which are totally ineffective for industrial farming.

DEA: So it is in following our traditions of inheriting land from one generation to another, that we end up with agricultural land which is not viable for producing something like wheat? For I think in some good years Kenya is self-sufficient in maize flour.

DH: Not lately. Don’t forget the country’s population is growing more rapidly. And there has been a change in eating habits too — people are now eating more bread, which is understandable.

that by 30,000 for an average ship, and you find we did 57 ships. That’s almost five ships every month.

DEA: Are you saying that this would not have been possible without this facility?

DH: You would have had five berths fully occupied doing nothing but grain. That is five out of a total of 12 berths. Then look at the vehicles trying to leave the port. Let’s divide that 35,000 tons carried by an average ship by the 30 tons that a lorry can carry. That’s 1,166 vehicles — that’s for one ship in five days. So how would this port handle that much traffic? It would not manage. You would have ships queuing everywhere. In fact, a lot of them would not stay — they would be gone, because the longer they stay, the more money they are losing.

DEA: So how was offloading of grain done before GBHL was set up? And I am told there are still operators other than yourselves doing this.

PHOTO: GBHL

DH: Yes, they are still doing it — because the odd ship does not want to be delayed and are willing to pay more to unload. They are not many — there are very few now, and we are more or less on top of things. But before, it was a bagging plant on the berth, and the ship was unloaded by grabs, dropped into the bagging plant, and bagged. And the most they reached — but only sometimes — was 3,000 tons a day. But usually it was considerably less, because they were either waiting for transport, or it rained — or whatever. And the grabs used to leak. The wastage was terrible. If you looked under our berth when it’s working, you would see that there is not a grain on the floor.

THE BOARD:

GBHL boasts an experienced, skilled Directorship

QUESTION: So there was no doubt in your mind that what you were supervising and constructing here was something Kenya definitely needed.

DH: Oh definitely. No question. In fact, it should have been built much earlier. I usually say that it would have been a luxury if it had been built 20 years ago; it would have been fantastic if it had been built 10 years earlier; and as it was, it was a revolution to build it when we did build it. It was definitely needed.

DEA: Could you give us some of the figures which illustrate the improvements that came about when this much-needed facility for handling grain started to operate?

DH: OK, last year we handled two million tons. Divide

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DEA: So your system takes the grain from the ship straight to the silos, with not a grain lost?

DH: Not a grain lost. And also it’s monitored exactly to the ton and kilo that comes off the ship. So the Kenya Revenue Authority (KRA) has a printout of exactly what came off the ship. They know exactly what to charge Duty on, and what not to charge Duty on.

DEA: Are you suggesting that under the old system you could not know how much grain had been imported into the country?

DH: There was no way. It was hopeless. What you have got to bear in mind is that when you are bagging grain, you have to have a trickle system on your scale.

So it fills up quickly and then it trickles the last bit in to get the right level, which slows you down, for a

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PHOTO: GBHL

start. And secondly we have what we call “the weight of the in-flight material”. The grain that is actually sitting in the bag is actually what it is weighing; the grain that is traveling from the trickle door to there is actually in mid-air. So it’s this bit that reaches the level; the gate shuts; and then that last bit of grain drops in. It’s called the in-flight grain. And that is very difficult to weigh and it’s very difficult to get it accurate on an estimate. So you are never accurate. Now this scale we have here is a volumetric totaliser scale.

It fills to a physical level, and at that point the door slams shut. It then weighs what’s in it, and totalizes it to what has gone past. It might be three tons; it might be just over three tons; it might be just under three tons. It does not matter because it is totalizing all the time. So therefore you have great accuracy of what came off the ship.

DEA: So, from the taxman’s point of view, this is a far more efficient and superior system to what existed before?

DH: One hundred percent.

DEA: But nothing is prefect. If you had to improve this facility, what would you do? What do you sometimes wish you had, which you do not have?

DH: The big thing is not really us — it’s the others. It’s the transport, the rails — that is the thing that needs improving. We are improving our facilities for loading out: we have actually reached the point where we move nine-and-a-half tons in one day, from here, by road and rail. We have a total of 12 bagging lines, each one of which is capable of one ton per minute. But there are times when these are not bagging. When the vehicle is moving, obviously you have to stop.

DH: We have had government officials here; the millers have been here; everybody has been here. We have never refused anybody the opportunity to come and look. We did offer the millers at one time, particularly the ones in Mombasa — because all the mills are on the railway line — we got permission from the railways to run a conveyor down the entire line which we were going to feed from here direct. So we would have filled the mills direct. No transport; no bags, no labour; but the millers would not do it.

THE DOCK:

GBHL's efficiency reclines on state of art seafront equipment

DEA: These are businessmen who want to make money — and you are saying that even when something like this, which is clearly in their interest, comes up, they will not do it? That does not add up.

So you don’t get a continuous 60-minute hour. And there are some drivers who take up to 10 minutes to position the vehicle underneath the loader. So in our newer bagging lines we have a much different system — all the driver has to do is drive straight underneath. There are big yellow lines, and all the driver has to do is get between those yellow lines, and when the first vehicle goes he can go straight in, and in just 20 seconds we can be loading the next vehicle.

DH: I don’t know why. It was offered to them, but they all turned it down. They just did not do anything about it.

DEA: Not everyone will have the opportunity that I have had to come here, look around the entire facility, and get to understand how this place works.

What arrangements have you for encouraging visitors to come here, so that more people will know exactly what goes on at Grain Bulk Handlers?

DH: That’s because they think we are a monopoly.

We are not a monopoly at all. There are still the onquay bagging operators. And bear in mind that our accounts are monitored, audited, and a copy of our accounts has to go to the port every year. So how can we be a monopoly?

DEA: Now speaking of the millers, there are those among them who believe that GBHL needs some competition; that there needs to be a second terminal, similar or identical to this one, right here at the port of Mombasa. What do you say to this?

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DEA: So would you say that you are heavily regulated by the port?

DH: We are regulated. We cannot adjust our prices without consultation.

DEA: But if a second facility were built right here, in your view, would that be an advantage to the nation in that you would have these two facilities competing?

DH: No. There would be no advantage at all. They too would be regulated just as we are, and so there would be no cost advantage to the nation, that I can see.

DEA: But are you not already working at full capacity here?

PHOTO: GBHL

DH: No we are not. We are increasing our capacity all the time. Technically speaking, we can handle — just as we are now — about 600 tons per hour. That is 14,400 tons a day. And bear in mind we are now purchasing a third machine.

Add the new machine which we should have working in about a month’s time, and that would add some 7,000 tons a day, so we would then be able to handle 21,000 tons a day in total. We will be able to do two ships at once, or we will be able to do 21,000 tons a day off one ship.

SEA TO ROAD: A truck loads grain for upcountry

DEA: Working at that pace, would you say that this is enough for our country’s grain import needs, and that no additional facilities were needed?

DH: It’s plenty. What is needed is more silos. We have made provisions for nine more silos which will take

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some 45,000 tons, and increase our storage. But the obvious solution would be for the Mombasa-based millers to install their own silos, and also for the Nairobi millers to build silos so that we can ship the grain up to them by rail in large quantities. And then the people from Uganda and beyond could also take their grain from Nairobi.

DEA: So wheat imports destined for Uganda also pass through here?

DH: Not just Uganda: Southern Sudan, Uganda and even Burundi. In fact, most of the Ugandan cargo comes this way. About 90 per cent of it.

DEA: So this is a facility that serves the region, rather than the country?

DH: Oh yes. And quite frankly if Dar es Salaam had one they would have the same problems. They do not have a grain terminal, but they do silos. They do it by the truckload: they fill a truck, and it drives up to the silo and tips the grain off, and then makes another trip. There is no link.

But seriously what we have here at GBHL is a perfectly good machine; it is very well designed, if I say so myself; it works quite nicely and has proved itself over the years; and I believe it will be serving the country for a long time.

With Kenya’s population growth rate, there will be grain imports for many years to come — and with this terminal we can take the surplus grain from any country that has a surplus. We can take it from Russia’s Black Sea area; from Australia; from Canada, Argentina — five years ago we even had a load from China, when they had a surplus.

DEA: OK, let me just take you back to the terminal itself. If I understand you correctly, you have said that the terminal is more than adequate for Kenya’s needs; it’s regulated by the port and is not just operating like a freewheeling monopoly; and that to put such a terminal in the hands of importers would be irresponsible; and that because you are neither a miller nor an importer, and are focused on your core business, which is handling grain, you have no interest in controlling the prices of the final product. All that is very well, but did you also say that you are charging the millers less than they used to pay before you set up GBHL? DH: By half. And we have never increased the price in 10 years. We have absorbed the rising costs of electricity, diesel, labour, and so on, by improved efficiencies. We have been able to absorb those costs.

SPECIAL REPORT GBHL

‘I Set Out to Establish a World-class Grain Terminal’ Grain Bulk Handling Ltd Chairman Mohamed Jaffer spoke to Diplomat East Africa Correspondent WYCLIEF MUGA on the occasion of GBHL's 10th anniversary. Excerpts of their conversation

MOHAMED JAFFER: I am a Kenyan, and I come from Kenya. That is my short answer to that question. But, to explain further, I come from a long line of Kenyan Asians who have been prominent in the coastal region since 1900.

In her book Challenge to Colonialism, which is mostly about her grandfather Alibhai Mulla Jeevanjee, the writer Zarina Patel mentions that, back in 1900, “there were three major Indian firms in Mombasa, those of Allidina Visram; Shariff, Jaffer & Co; and A.M. Jeevanjee”.

Everybody has heard about Allidina Visram, and there is both a school as well as a public garden in Mombasa named after him. And everybody knows the Jeevanjee gardens in Nairobi, and the Jeevanjee family. The Jaffer family, though not as well known now as these other two, was just as prominent in business that far back.

Let me quote just one other passage from that book: “In 1907, Winston Churchill visited East Africa on his way to a journey down the Nile. At his arrival in Kilindini harbour, the reception committee present included A.M Jeevanjee; Allidina Visram; Jaffer Dewji; C.M. Dalal; and the Liwali’s son, Sir Ali bin Salim”. The Jaffer Dewji mentioned there, along with the cream of the most prominent people in the Coast at that time, was my great grandfather.

So, as you can see, I have very deep roots in this country. Very deep roots indeed, going back more than 100 years.

And it is not only my grandfather Jaffer Dewji who was famous as a business leader. One of my great uncles, Haji Mohammedjaffer Dewji, was a lead-

PHOTO: GBHL

DIPLOMAT EAST AFRICA: The first thing I would like to ask you to do is to demystify yourself a little.

Not much is known about you, unlike many other prominent businessmen who are always giving interviews and sometimes even appearing in TV talk shows. Who are you, and where do you come from?

ing religious leader and a scholar. And my own father, Mohamed Jaffer, who was a pre-Independence councillor in Mombasa, and a very fiery political activist of that time. So we have over the years excelled in various fields, and been very much a part of the history of this country.

TO THE COMMUNITY:

GBHL is a compassionate Corporate

DEA: So why then do you not go about making yourself more visible by making charitable donations and gifts to the deserving poor?

MJ: I am in many ways a very private person; the kind of man who, after the day’s work, spends his time with his family in his own home, not the gregarious type who joins social clubs and likes to gather at such places in the evenings.

This may have been a disadvantage, since it means that not very many people know me personally, unlike some other business leaders who you will

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see holding press conferences and leading the way in offering gifts to worthy charities, whose faces are very familiar to the public.

But I must also say that I do my share of giving, even if I do not usually publicise it. For example, there is the Zekunze Clinic in Ganze Constituency, which was entirely built by Grain Bulk, to help provide health services in one of the poorest corners of Coast Province. We chose that place because we learned it had the highest infant mortality rate at the Coast, not for any political reason.

Then since 2009, we have had two water bowsers which go all over the place giving out free water wherever it is needed. On several occasions we have supplied even the Coast General Hospital, when they were facing a water shortage for one reason or another.

I would also point to the Jaffer Foundation, which pays fees for about 190 secondary school students, and 87 university students from all over Coast Province. Finally, there are many Harambee contributions which I make when some of my friends in politics approach me. I usually ask them not to mention my name when giving the money. My grandfather taught me when I was very young that it is better to do your charitable acts without seeking publicity for your generosity, and that is what I practice to this day.

DEA: Now you mention friends who are politicians.

You may be aware that there are those who argue that you must have some very powerful politicians behind you, otherwise you would never have been able to set up a huge new investment like Grain Bulk, and that to this day you work very closely with your friends in high places.

MJ: I am aware of these rumours and allegations. In fact, during President Daniel arap Moi’s time, there used to be stories that Moi was my secret partner, for it was felt that I would not otherwise have been able to get the support of the Government, which was essential in establishing a facility of this size.

It’s all nonsense. The former President supported me because this was the first World Bank-supported project of this size — over $35 million was lent to us — to be set up in Kenya for a very long time.

You must remember that the plans for setting up Grain Bulk Handling were worked out during the 1980s and the 1990s, at a time when Kenya was being shunned by foreign investors for various reasons.

So to have Grain Bulk set up this grain terminal — the only one in this region — was a big thing even for

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the Government. And Moi realised this, and he supported the project, and was our guest of honour at the official launch in the year 2000, which was also attended by directors of the International Finance Corporation (IFC) and the World Bank.

DEA: And what about in the current Government?

It is said that you are a close associate of the Prime Minister, Raila Odinga.

MJ: That is an understatement. I consider the Prime Minister to be a personal friend, not an associate. The Hon Njenga Karume, who was Minister for Defence before the 2007 election, is also my personal friend.

And the late Karissa Maitha, who in his time was the most powerful politician from the Coast — he used to visit me all the time and was also a personal friend.

From Western Kenya I would point to the Deputy Prime Minister, the Hon Musalia Mudavadi, and the

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nopoly. Beyond that, I would prefer to leave this kind of question to be handled by Engineer David Harris, who was formerly our General Manager, and is now a part-time consultant with us.

He was brought in by the World Bank to work on building the grain terminal right from the start.

I think he is the best person to explain to you — and to all your readers — just exactly what Grain Bulk is, and what it does, and what its significance is for the Kenyan economy.

DEA: What put the idea in your mind to establish this grain terminal at the port of Mombasa?

Foreign Minister, Moses Wetang’ula, as politicians whom I consider to be friends of mine. And may I add that I have known President Mwai Kibaki since 1986, when he was the Vice President and Minister for Finance.

There is no mystery about this. I have very many friends in politics. And this is not surprising, because my father was a politician, and was a very active councillor in the pre-Independence Mombasa Municipal Council. I have been associating with politicians all my life.

DEA: So, turning back to Grain Bulk Handling, you have been accused of operating a monopoly, which is only made possible through your influence among politicians. What do you have to say about this?

MJ: I can only tell you that this allegation is completely unfounded and that Grain Bulk is not a mo-

MJ: It happened like this: Back in 1976, my family business, then known as Jaffer & Jaffer Ltd., set up the Inland Container Depot, which was one of the first container depots in Mombasa.

But even before that, back when there was still the old East African Railways and Harbours Corporation, we had leased a plot from them to set up a timber storage yard, and also used these same premises for the manufacture of pallets — those wooden frames on which cargo is placed in warehouses, so that it is easy to take it up using a forklift. That, I would say, was really the beginning of my being involved in port-related business.

Well, in 1983, mobile bagging operators were introduced in the port for quayside bagging of bulk grain and fertiliser. The first company to enter into this line of business was called Nectar. Later other companies also joined in. Some of them used our Inland Container Depot to store their containers, and this is how I came to be aware that there was a need for more efficient offloading of grain and fertiliser from the ships. It is out of that insight that the plan for creating Grain Bulk Handlers arose in my mind.

Later, I was to go to the great port at Hamburg in Germany, and see exactly how it was done. But even before I visited the grain terminal at Hamburg, I already knew what could be done.

Somehow, right from the start, I knew I could do this. I just knew. I also understood right from the start that it would not be easy, but I was determined to do it.

DEA: It was a very long journey from November 13, 1984, when you first applied to the Kenya Port Authority for the way-leave from your plot just outside the port, to the berths at Kilindini, so as to make it possible for you to handle bulk grain and fertiliser imports; to February 14, 2000, when you handled

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‘Thank You All for a D he following is the full text speech delivered at the 10th Anniversary celebrations of Grain Bulk & Handling Ltd by the Chairman of GBHL, Mr Mohamed Jaffer, in Mombasa, a glittering event attended by the Prime Minister of Kenya, Cabinet ministers, captains of industry, coastal leaders and thousands of wananchi The Right Honourable Raila Amolo Odinga, Prime Minister of Kenya, Honourable Ministers, Honourable Members of Parliament, Prominent Businessmen, my dear friend the Hon Njenga Karume, Distinguished Guests, Friends and Family.

Asalam Aleykum.

I am genuinely pleased to have all of you present tonight to share in the celebrations of Grain Bulk Handlers Limited’s tenth anniversary.

I thank you for taking time from your busy schedules and for attending tonight’s function to share in the celebrations.

The presence of Government officials is of immense importance to me personally and to the Board, Management and Staff of GBHL. Interaction between governments and investors is central to the growth and development of the future of any nation.

Ten years ago, Grain Bulk Handlers was officially inaugurated by the then President, His Excellency Daniel arap Moi, who declared it a State function. Back then the Government had foreseen the revolution that the investment was to bring to the sector and the

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PHOTO: DEA LIBRARY

T

benefits that such an investment will have to the economy at large.

Ten years later it gives me a deep sense of satisfaction that the Government, through the presence of the Prime Minister today, finds it important to acknowledge the efforts that we as Kenyans continue making in building our nation.

Thank you, Right Honorable Prime Minister and members of the Cabinet, for taking part in our celebrations. This clearly exhibits your commitment to support Kenyan investors in the future days and years to come.

I am tempted to go down memory lane today. Way back in 1983, I “dreamt” of establishing a world-class terminal. To make my dream a reality, there were various challenges that I faced. The words of my grandfather constantly resonated in my mind. My Late grandfather used to say to me, ”Mohamed, with hard work, honesty and determination you will always succeed, provided your intentions are not selfish but are for the gen-

eral good of your people, your nation and in line with the ethics and principles of your religion”.

Those words of my late grandfather still echo in my mind on a daily basis.

When I dreamt, the dream of establishing a grain terminal, I was certain that if realised it would benefit our nation and the region, so I began to propagate my idea to family, friends, leaders of the nation and lenders.

During this time, I met individuals who were special, who gave me the drive to follow my dream, who made it possible for my dream to become a reality and who I can never forget.

At the same time, I cannot forget those people who thought my dream was not achievable and that it was a pie in the sky. Those people who laughed at my dream gave me more encouragement to follow my dream.

Alhamdulilah, most of the special people who encouraged me are present here with me tonight.

I wish to take this opportunity to thank a few special people.

My Dear wife, Rehana, without your belief in my dream and your support through the years, I am certain that my dream would just have remained a dream. Thank you for your never ending support and belief in me. My family had to make important sacrifices as I pursued my dream. Most important, my eldest son, Mujtaba Jaffer, had to cope with a great deal of responsibility at a tender age. He has stood by me through and through and, to be honest, he has worked his way from being a transport supervisor to being a Business Direc-

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a Dream Come True’ tor and in April last year the Board found him fit to be the Managing Director.

Without any element of paternal bias, I have seen Mujtaba Jaffer develop invaluable skills over the past ten years. I cannot let tonight pass without saying a special Thank You to him.

Mr Gafur Pasta, I thank you for the true friendship and the support that you have given me over the last twenty years.

As I am scanning through the crowd I have something to say about each and every one of you and your contributions to my success and the success of GBHL in various forms. You all are special to me and I thank you for the role each one of you has played in my life and in the life of GBHL. The Right Honorable Prime Minister, way back in 1993, when I first met him, motivated me to follow my dream. He said “Jaffer, developing anything is difficult.

Whether it is to help build a nation, community, family or an organisation is difficult.

There are many challenges but you have to remain focused and patient to overcome the hurdles and, once you achieve your goal, you will never regret facing those hurdles”.

He is entirely correct. Today as I look back at the challenges and the achievement of GBHL, I do not regret the problems that I had to face. Thank you very much, Right Hon Prime Minister.

Now I would like to extend my appreciation to the true bearers of GBHL’s success in the past decade. Like I said, each one of you and your contributions are the real elements of GBHL’s success.

Without our esteemed customers there would be no success. I say Asante...

Without my staff there would be no success, I say Thank You… And without my Board there would be no success and I say Thanks to You… Most importantly, without the officials of the KPA who continually monitor and regulate us, it would not have been possible for us to surpass international standards of performance. To each and every member and staff of KPA, I say tonight Thank You for the discipline that you constantly instill in us and for your support and assistance.

Before I sit down I want to remind you that I have not stopped dreaming ... I still dream and I have a dream… my dream is now to give back to society… my dream is now to invest my time and resources in helping to develop a new and steadfast generation that will have skills and perseverance and make dreams a reality of the

future. In our globalised world, education and skills are imperative for success.

My next wish is to establish a university in Mombasa under the umbrella of the Jaffer Foundation.

It is my dream that this university will have full fledged faculties of Marine and Port Development, Theology, Engineering, Management and Leadership and, with time to come, a Medical Faculty.

Just a few months ago, I shared my dream with Professor Hyder, who coincidentally shares the same vision.

He has been kind enough to invite me to share his dream to establish a University at the Coast.

Thank You, Professor Hyder. We also have been promised the support of Prof Mazrui and other renowned international scholars.

It is our earnest belief that this University will create our leaders of tomorrow who will dream, who will have the ability to make real those dreams and who will make Kenya now and in the future a power to reckon with.

In realising our current dream I am certain that we will surely need the support of all those present here. The world is a circle where we all hold hands… I hope that just as you all have supported me in the past in making my dream of GBHL a success, your support in my next project will be forthcoming.

Tonight’s function is in your honor. Please enjoy yourselves and take ownership of today’s function.

Thank you to each one of you once again…

May - June 2010

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SPECIAL REPORT GBHL

your first ship. That’s a clear 16 years. Many investors would have given up long before 2001. What kept you going?

IN THE SHIPS HOLD:

PHOTO: GBHL

Cutting edge technology for discharge of grain from vessel

MJ: All I can say is that I was convinced that I could bring this project to a successful conclusion, and that I was determined to succeed in this. I never for one moment doubted that I would succeed.

As you say, there were so many steps involved in this; so many conditions to be fulfilled, some raised by the financiers, others by the Kenya Port Authority, others by various government agencies.

I had to employ very many professionals at the different stages of this journey, as international lenders require a very large number of professional reports for a project of this kind. I also traveled a great deal to the US, the UK, and France, negotiating for the money which was needed to set up this grain terminal. All this had to be done before the financiers would commit the first dollar to the project. And it was not easy.

I have sometimes thought that I would have made far more money if I had dedicated those 16 years to just expanding ongoing businesses rather than starting something completely new like Grain Bulk. But I have no regrets.

I set out to establish a world-class grain terminal at the Kilindini port here in Mombasa, and I was able to achieve this. That gives me a great deal of satisfaction, and I do not feel any regret about other oppor-

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May - June 2010

tunities that I missed during the years I was struggling to make Grain Bulk a reality.

DEA: In an article on GBHL which featured in The Wall Street Journal late last year, you are quoted as having said that you look forward to the day when your grain terminal will be converted into a grain exporting facility, and that you believe that Kenya will one day again be a grain exporting country.

Could you elaborate on this?

MJ: Kenya is at present harvesting only 6 per cent of the water it receives as rainfall. The rest, a full 94 per cent, flows into lakes and seas. I believe that if we could follow the example set by Israel and adopt modern techniques for harvesting rainwater and channeling it into irrigation projects, there is a huge opportunity to increase our acreage of land under productive agriculture (of which at present we are in fact only cultivating about 39 per cent).

So I was not just saying this off the top of my head.

This is something I have given much thought to. I believe that, with the right policies, we can have Kenya returning to being a net exporter of grain, as it was in the early years of Independence. All we need is the right land use policies.

DEA: Finally, there have been reports that you plan to set up a fertiliser handling terminal at Kilindini.

What can you tell us about this?

MJ: At the present time, a major aspect of the cost of fertiliser to farmers is the cost of transport. In some cases we even get fertiliser free from some rich nations, but when you factor in the cost of transport, then you find that farmers still have to pay quite a bit for it. And part of these transport costs are right here at the port.

At the moment, fertiliser can be offloaded at a rate of about 1,800 to 2,000 tons a day. So a 20,000-ton ship would take 10 to 12 days to completely offload its cargo at the current terminal. With the new fertiliser handling terminal that I would like to establish, a 20,000ton ship would take just one day to offload, leading to enormous savings in the final cost of that fertiliser when it eventually gets to the farmer on the ground.

It’s a wonderful project, which would have a huge impact on the lives of millions of small-scale farmers, and I am very disappointed that it is taking so long to get it started, purely on account of bureaucratic delays.