Kenya Ports Authority courts Rwandan traders for more trade

It was a suited affair, Wednesday night at the Kigali Serena hotel as a twenty-person delegation from Kenya Ports Authorities (KPA) took Rwandan traders on yet another dinner date, for the second time this year after the first one in March. As the case normally is on most dates, the courting party arrived earlier than the courted and readied the venue for a night of business talk and fun, in the end, it was a full house, the numbers more than those earlier anticipated; fortunately. The first meeting in March was an introductory affair of sorts where KPA Managing Director Gichiri Ndua, told his audience that day that ‘he was bringing the port of Mombasa services closer to Kigali’ in form of a country liaison office located in the city centre. On Wednesday, the presentations were kept precise and to the point, as if careful not to bore the guests with too much business talk after a busy working day; the band music was there to provide a welcome distraction in between speeches. The Kenyans spoke and their Rwandan counterparts listened and after all had been said and heard, Rwandan traders were given the stage to ask questions and point out issues they wanted fixed to ease business on the Northern Corridor. Less than a month ago, a delegation from the Tanzanian port of Dar es Salaam was here, for the first time and met Rwandan traders over a business lunch in Kigali; they pledged to open their own country office here, before the end of this year. As a landlocked country whose maritime trade depends on these two ports, Rwandan traders must feel reassured to be the centre of attention of both Tanzania and Kenya port authorities, it gives them the assurance that they matter. When the event’s chief guest, John Mwangemi, Kenya’s High Commissioner to Rwanda stood to speak, it was to reaffirm his country’s commitment to make Mombasa a reliable piece of infrastructure to facilitate trade on the Northern Corridor. “Efficiency on the northern corridor is a top priority for Kenya and this event should be used to discuss areas of weaknesses that need to be addressed to improve performance,” said the envoy. The port of Dar es Salaam on the central corridor currently enjoys more business from Rwanda, mainly because of its proximity and direct link to Kigali, it handles slightly over 70 percent of all Rwandan cargo; the Kenyan port deals with the rest. However, initiatives by Tanzania and Kenya to improve efficiency at their respective ports as part of activities to ease trade facilitation on the central and northern corridors, respectively, seems to have placed Dar es Salaam and Mombasa in direct competition. On one hand you have Dar es Salaam trying to maintain the status-quo but you also have Mombasa on the other trying to boost its own share of Rwandan trade. Is this a good thing? “Yes, for trade,” according to John Bosco Rusagara, Chairman of Rwanda Shippers Association. He said it gives Rwanda two good options on the central and northern trade corridors which is likely to ease the cost of moving goods from both ports to Kigali which in the long run will see prices of imported goods easing,” he said. Shifting numbers The dinner date with the Kenyan port authorities came at a time when a section of the Rwanda business community, the mining sector to be exact, is rather chagrined by the mysterious spate of robberies at Dar es Salaam where they have lost minerals worth millions of dollars. In a recent interview with David Bensusan, Managing Director of Mineral Supply Africa and one of the victims of the robberies, said although Dar es Salaam was nearer to Kigali, if they don’t resolve the mysterious thefts, the advantage of proximity will be ignored by traders. “We shall have no option but to use Mombasa, although it’s a longer route as long as safety is assured,” Bensusan said. Mombasa Port authorities could use such circumstances to encroach on Dar es Salaam’s lunch and going by the latest figures, the numbers seem to be already shifting. Between January and September this year, the Kenyan Port handled a total of 19.87 million tons of cargo compared to 18.05 million tons in the same period of 2014; Rwanda volumes increased by 53,835 tons or 31.7 per cent, to 223,703 tons up from 169,868 tons. This surge in Rwandan cargo cleared through Mombasa has been attributed to the implementation of the Single Customs Territory which appears to have played key role in the removal of other non-tariff barriers such as multiple weighbridges and police roadblocks. In the same period of January to September 2015 also saw container vessels turnaround time at Mombasa improving in speed, recording 3.3 days against 3.6 days registered in the same period last year. However, average dwell time during the the January – September period increased to 5.1days from 3.6 days recorded in 2014 reflecting unfavourable performance of 1.5 days. There was an explanation for that, from the KPA chief executive, he said, “the main reason remains the introduction of the Single Customs Territory which has had issues of continued human intervention resulting in slow down of documentation processes.” However, Jean Baptiste Gasigwa, the Private Sector Federation (PSF) Resident Representative at the Kenyan port of Mombasa, lamented on behalf of Rwandan clearing agents whose efforts to clear goods on behalf of their clients are frustrated by shipping lines that don’t recognize them. “This is a big problem and we request for your urgent intervention,” he said. Although clearing agents from Rwanda are supposed to be given mutual recognition at the port, this is not the case at the moment and they are required to do so, through a registered Kenyan agency. In their defense, Kenyan port authorities said although the measures are meant to serve as a security precaution for cargo, the matter would be addressed to ensure that Rwandan clearing agents get mutual recognition. Awarding loyalty After the speeches and presentations, the event climaxed with an awarding ceremony for outstanding stakeholders in three categories including importers and exporters who regularly do business through Mombasa. The importing firms awarded included cement manufacturers Cimerwa, Masters Steel Limited and Pembe Flour Mills; Cimerwa was again awarded among the exporters’ category alongside Rwanda Coffee and Rwanda Trading Company. Ballore Africa logistics and Spedag Interfreit won among the clearing and forwarding agencies while several entities, including PSF, Rwanda Revenue Authority, Rwanda National Police and Trademark East Africa, among others, were also appreciated on the night.

News

Kenya Ports Authority courts Rwandan traders for more trade