Kenya Ports Authority (KPA) has directed importers to transport un-nominated cargo (about 11 percent of import cargo) from the port of Mombasa to Nairobi through SGR. The decision comes at a time when some shippers are protesting the new directive. However, other importers have embraced the move because it will decrease storage and transportation costs since KPA only allows a 3-day period for importers to move their cargo without storage charges.
Un-nominated cargo alludes to any goods that importers have not assigned specific container freight stations (CFS).
The new cargo tariffs
A notice by the office of the managing director, Kenya Ports Authority stated:”In order to promote the use of Inland Container Deposit Nairobi (ICDN) by Nairobi and Transit clients who wish to nominate ICDN as a point of cargo delivery, Kenya Ports Authority has given a rebate on tariffs […].”
Formerly, the handling charges for 20-feet and 40-feet local containers was 103 USD (Sh10,404) and 157 USD (Sh15,858) in that order. Now, importers will pay 80 USD (Sh8,080) and 120 USD (Sh12,121).
Additionally, the handling charges for a 20-feet and 40-feet transit container have been cut down from 85 USD (Sh8,585) to 60 USD (Sh6,060) and from 125 USD (Sh12,626) to 90 USD (Sh9,090) respectively.
The move to use SGR freight trains could affect CFS warehouses, drivers who move cargo by road, and clearing and forwarding agents. In fact, road and CFS transporters have reported that they are feeling the effect of SGR freight trains already.
