Grain Bulk Handlers Limited(GBHL) faces pressure from Kenyan Members of Parliament(MPs)who want the firm’s monopoly at the port of Mombasa ended.
In a report, the powerful National Assembly’s Finance and National Committee said delays in clearing cereals by GBHL at the Mombasa Port hurt importers who have to incur colossal demurrage costs. They now want competitors in this business licensed by 2022.
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Grain Bulk faces parliamentary sanction
In a motion in parliament yesterday, March 2nd, 2021, Hon Gladys Wanga, Chairperson, Departmental Committee on Finance and National Planning, urged the House to adopt this report.
The Inquiry Into the Optimization of Revenue in Grain Handling Services at the Port of Mombasa Report was put before the House on Thursday, November 26, 2020.
GBHL handles 98% of all grain bulk services at the port of Mombasa and has been in operation since 2002.
The firm operates at berths 3 and 4 at the port of Mombasa as the exclusive grain bulk handler, a mandate that was initially granted and expired on 15th February 2008.
Following this expiry, there has been intense pressure to license additional operators so as to promote competition in the industry.
The Committee notes that there has been exponential growth in grain imports over the past ten years, with wheat and grain almost quadrupling.
This growth has created the need to have more grain bulk handling terminals at the port.
Tonnage handled by GBHL
Available figures indicate that grains handled by GBHL have risen from 2,043,680 tonnes in 2015 to 2,181,766 tonnes in 2020.
GBHL is a private limited company incorporated in 2000 to undertake freight and forwarding services specializing in cereals handling.
The firm has installed its equipment in berths 3 and 4 at the port of Mombasa, with conveyors leading to its other storage facilities within the port.
GBHL began operations in 2000, providing services to customers importing bulk grain into the region. Its clientele includes international grain traders, local and regional grain millers, and international relief agencies.
How the firm works
Its work begins at the Kenya Ports Authority (KPA) berth, where it moves the bulk grain from vessels. The grain is then transferred by a conveyor-belt system directly to a grain terminal immediately adjacent to the port, which offers over 135,000 metric tonnes of bulk storage capacity.
The movement of grain from a vessel, through storage silos, to customer transport is managed by a control room, ensuring the complex transfer of grains takes place accurately and efficiently.
The grain is weighed upon arrival using scales situated at the berth and then again upon delivery to the customer.
Recommendations by the Committee
In its recommendations, the Departmental Committee of Finance and National Planning, led by MP Gladys Wanga, wants Kenya Ports Authority(KPA) to fast-track the design, development and commissioning of other grain bulk handlers to enhance efficiency and in the grain handling business by 2022.
The Committee suggests that KPA should seek alternative locations for grain discharge vessels such as the Lamu port and Kisumu ports.
The parliamentary watchdog is also asking the state to provide critical infrastructure and leverage on technology to have wide berths and state-of-the-art vessel handling equipment at the various ports.
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