Kenya has revised its cargo deal with South Sudan that will see goods from and destined for the latter cleared at the Port of Mombasa.
Chairman of South Sudan Freight Forwarders Association (SSFFA) Emmanuel Kachoul says Kenya and South Sudan agreed to lift the directive by former President Uhuru Kenyatta, to transport all cargo from Mombasa by SGR.
Should it have failed to broker a deal, South Sudan had threatened to transfer business to the Djibouti route, in what would have denied Kenya revenue on 1.1 million tonnes of cargo that the facility handles annually.
This would have also dealt a blow to the Lapsset Corridor, a regional flagship project intended to provide transport and logistics infrastructure aimed at creating seamless connectivity between the Eastern African Countries of Kenya, Ethiopia and South Sudan.
Mombasa has been the main route for all consignments destined to the landlocked country and the country now says Port of Djibouti is shorter.
The landlocked country is second after Uganda in the use of Mombasa port, accounting for 9.9 percent of transit volumes.
Uganda accounts for about 83% of all throughput cargo while the Democratic Republic of the Congo, Tanzania and Rwanda take up 7.2%, 3.2%, and 2.4%, respectively.
See Also:
