Jubilee Dev - KPA signs Kshs 6.8 billion cranes deal with Toyota Tsusho/Mitsui

News & Politics
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[SIZE=6]Japanese giants Toyota Tsusho, Mitsui win Sh6.8bn cargo cranes deal[/SIZE]
TUESDAY, FEBRUARY 20, 2018 20:16
BY VICTOR JUMA
https://www.businessdailyafrica.com/image/view/-/4313216/medRes/1890219/-/maxw/960/-/j0x1bz/-/port.jpg
Japanese conglomerates Toyota Tsusho and Mitsui have won a new Sh6.8 billion contract to install cargo cranes at the port of Mombasa after signing a similar tender in 2014 that earned them Sh2.5 billion. This raises the total value of the contracts to Sh9.3 billion, making the multinationals major beneficiaries of the port modernisation that is being funded by yen loans from Japan International Cooperation Agency (Jica).

“In November 2017, the group (Toyota Tsusho) and Mitsui Engineering & Shipbuilding Co., Ltd were jointly awarded a contract to supply 16 cargo cranes for Kenya’s Port of Mombasa development project, the largest commercial port in East Africa,” Toyota said in a trading update.

The multinational said the new project signed with Kenya Ports Authority (KPA) is worth ¥7.2 billion (Sh6.8 billion) and is set for completion around 2020. This is the second phase of the port development, which is set to significantly raise its goods handling capacity from the current equivalent of 1.3 million 20-foot containers.

Cargo throughput at the port is projected to nearly double to an equivalent of 2.4 million 20-foot containers in eight years. The new contract covers four gantry cranes for quayside operations and 12 transfer cranes for yard operations, all manufactured by Mitsui. The crane types are the same as those delivered in phase one of the project, Toyota said.

For Toyota, the crane deals mark its deepening ties in Kenya’s economy, having established an office in Nairobi to secure contracts in the region.

“Through this project to export high-quality Japanese infrastructure, Toyota Tsusho will contribute to enhancing logistics in Kenya and East Africa while bolstering regional economic development,”said the multinational.

The firm’s local investments include new motor vehicle dealerships Toyota Kenya, DT Dobie, and CICA Motors.
It also owns used-car dealership Toyotsu Auto Mart and was part of a consortium that built KenGen’s Olkaria I and IV geothermal plants.

Toyota also recently opened a fertiliser blending plant in Eldoret as part of its plans to venture into more sectors including oil. Toyota’s expansion in Kenya has been aided by a co-operation agreement it signed with the Kenyan government.

CC @Meria Mata soon Kilindini port will be Top 3 in Africa. All these developments at the harbour and the annual 10% cargo increase is very impressive. This cranes will be installed at the new second container terminal.

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native son

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Moi really messed us up. huku tungefika in the 90s.

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Kuna wengi who are desperate so much that they support gideon moi. Nyayo era is history. Remember you posted about the story below last week. Saa hii ndio wanaipata

[SIZE=6]Sixth largest shipping company launches weekly Mombasa line[/SIZE]
TUESDAY, FEBRUARY 20, 2018 20:30
BY QUEEN MUNGUTI
https://www.businessdailyafrica.com/image/view/-/4313258/medRes/1890189/-/maxw/960/-/cs5vg6z/-/ship.jpg
Hapag-Lloyd, the world’s sixth largest shipping company, has announced the opening of a new line from Jeddah in Saudi Arabia into the ports of Mombasa and Dar es Salaam, opening the door to faster transit times and lower freight charges expected competition.

Hapag-Lloyd will start the service in April with four vessels plying the line from Jeddah in weekly connections to to the east African cities. The shipping company currently offers services linking Asia to Europe and port coverage in Mexico and the Caribbean, among other regions, making the move to serve East Africa a significant one. It will establish local representation in Kenya, Tanzania and Uganda through Diamond Shipping Services Ltd, a transport service in Nairobi. Mombasa will act as a gateway to other neighbouring countries, including South Sudan, Rwanda, Burundi, DRC, Malawi, Uganda and Zambia.

“With our East Africa Service (EAS), we will be entering a trade which our customers have wanted us to serve. In the process, the EAS will benefit from Hapag-Lloyd’s strong presence in the Middle East and connect to our global network,” said Lars Christiansen, senior managing director Region Middle East in a statement.

The demand for more lines from the Middle East has been driven by sharp import growth. Kenyan imports from Saudi Arabia, led by petroleum imports, rose by 25.2 per cent between 2015 and 2016, to total Sh69 billion in value. Part of that rise was due to rising oil prices, but the flow has also increased in volume, up 9.5 per cent in tonnage in 2016, to 4.85 million tonnes, from 4.43 million tonnes. East Africa additionally imports molasses, paper and chemicals from Saudi Arabia.
Kenya’s exports to Saudi Arabia, however, remain far smaller at Sh6.7 billion in 2016, and spanning tea, coffee, vegetables, textile materials, fruits, nuts and beef.

However, the Mombasa port traffic is heavily slanted towards imports across all of the current shipping services. Mombasa serves more than 100 ships a month, including container vessels, conventional vessels and tankers. Yet, typically, last week, the Kenya Ports Authority reported that from the 22 incoming general cargo vessels, it discharged 285,348 metric tonnes, and loaded another 4,265 metric tonnes for export. Much of the incoming freight, however, is then exported to surrounding nations, prime among them Uganda withcontainers equivalent to 3,740 twenty feet equivalent units in the week ending February 14, according to the KPA.

The port also took in 472 TEUs for Tanzania, 256 for South Sudan, 141 TEUs for Democratic Republic of Congo, and 164 bound for Rwanda. Local freight companies hope the additional inwards and outward capacity may also reduce prices.

“The entry of a new player in the industry is exciting news for us because it means all shipping companies will now be competing for cargo and if the volume is maintained, they will have to lower the charges in order to win business,” said John Orwa, service delivery manager at Multiple Solutions Limited, a logistics company based in Mombasa.

“Other than the container shipment charges, importers may also benefit from the reduction in container deposit fees and demurrage charges as shipping lines start using these charges as marketing tools to attract more customers,” said Abhishek Sharma, a logistics analyst at TradeMark East Africa.

“The entry of the Hapag-Lloyd East Africa service is a vote of confidence in the expected growth of trade in the region in coming years,” said Sharma.

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we slid backwards by 40yrs during nyayo era, jana i saw kids gapping with their mouths wide open when they saw a ketty tours bus with automatic doors, yaani hawajawai ona mbus yajifungua mlango na kujifunga. i remembered our old KBS and i almost cried. (and the bodies had been made by LSHS.
i bet even @Deorro @Mosa and @Mzee mzima hawajawai ona automatic mbus door

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Supporting gideon is a personal choice, i better vote for him than a known thug, land grabber and a dictator.

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I can remember with great nostalgia Chief

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githeri media, hehehehe, wonder who coined this term.
even their articles are very shallow, they leave you hanging, nikaa kukula dame alafu anakukatsia kaa hujamwaga

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Mutongoria mbona kunitaja kwa post za sycophants walikula block kitambo? Cheza chini

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Pigia your supreme leader, maina jenga Kura, wachana kition mo1

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Apewe ministry of oaths…

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If we are serious about that top 3 harbour slot for Kilindini, we need to transform it to a preferred trans-shipment hub for ocean liners. It is not enough to use it for imports to the hinterland.

The Djiboutian economy almost entirely depends on their port. Here, cargo from across the world is sorted and trans-shipped to its final destination.

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That’s why we started the second container terminal that was recently commissioned. It can handle transhipment cargo. Let it Toyota installed these crane at the terminal and we are good to go. Lastly the $750 million third phase of this container terminal expansion is to be announced anytime. The funds are here from JICA. We only await the tender winner which is opened exclusively to Japanese companies.

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For the first time in years all the leaders of Baringo, West Pokot and Elgeiyo Marakwet are conducting peace and reconciliation jointly in the region but gedion is too busy to bother. He is busy taking cerelac to keter in prison. A retard candidate to lead retard followers.
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@spear, has KPA started procurement for lamu port cranes?

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They better hire Kenyans upto senior management posts because kuna ka tabia I have observed na chinkus and it’s not pleasing.

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No.

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That means the port will not commence operations until the 3 berths are complete. I was hoping it would be a purely transhipment hub as it waits for evacuation roads to be complete.
The last progress report I saw they had completed piling works for the first berth, were deep in progress for the second but the causeway was not complete, IMHO I think they will miss the June /August deadline for the first berth but will complete the 2 other berths ahead of schedule some time next year.

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@spear , whats the need to take all CFS to Nairobi? What about goods destined for Mombasa going all the way to Nairobi then to Mombasa?