Allow me to simplify this matter and
use layman’s language, devoid of maritime jargon, in order to enable Kenyans
to understand the subject matter.
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| An MSC cargo vessel |
The Merchant Shipping Act N0 4, 2009,
restricted shipping lines from doing Port businesses, of which by now we all
know it was created at the time when international shipping lines were taking
center stage in the maritime industry. It
was meant to control and regulate the sector and thus imposed restrictions that
have been the stumbling block to attracting investment in shipping business,
despite the fact that Kenya can be the leading destination for merchants’ cargo
and cruise ships in the region.
Serious exploitation of Kenya’s Blue
economy has a huge potential to drive sustainable economic growth. Going Blue
can unlock sea-land opportunities, especially in coastal urban and rural
centers. Kenya has been losing billions
of money and hundreds of thousands of jobs for not taking maritime business
seriously.
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| Kilindini Port, Mombasa |
Shipping Lines
Shipping lines are companies that transport
cargo aboard ships. They own and operate ships. A single vessel can employ 3000
jobs or more; from those that require higher academic qualifications such as
engineers, to cooks and loaders requiring average educational criteria. Thus, a
shipping line, owning just 10 vessels can create over 30,000 jobs, with huge
positive ripple effect on other sectors of the economy, including the service
industry.
Kenya Maritime Authority (KMA), the
regulator of the maritime sector approached the President and requested the
revival of Kenya National Shipping Line (KNSL), as part of the initiatives to
exploit the Blue economy. Maritime experts
saw the need to revive the KNSL, to not only create jobs but also spur
investment and growth of the economy. Reviving it requires heavy financial
muscles.
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| Maersk Shipping Line has been using Berth CT2 without paying KPA |
Moreover, from a business perspective,
Kenya needed to be connected to an established Shipping Line that has the experience
required to make this venture feasible. Mediterranean
Shipping Company (MSC) already had a history with the now dormant KNSL, and it is the second largest
shipping line in the world after Maersk Line. The Kenya government talked to its
Italian counterpart on this venture since MSC is Italian owned company. MSC
agreed with Kenya to revive KNSL. This however cannot be implemented under the
current legal restrictions imposed by the Shipping Merchants Act, 2009,
necessitating the need to amend it in order to remove the obstacle to
exploitation of the Blue economy.
The misleading matter on the KPA Berth CT2
Berth CT2 was constructed by Kenyan government
at a cost of sh 28 billion. It is owned by Kenya Ports Authority (KPA) and is currently being used by an international shipping line, Maersk Line. This Shipping Line
is not paying anything to the government, except ship docking charges.
Amending the law will allow our own
shipping line, KNSL to lease the CT2 facility from KPA to enable it carry out sea
businesses with ease, hence avoiding port delays, while generating more income
to KPA.
Among the sectors that are set to get a major boost include:-
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| Cranes at Kilindini Port |
1. Export business. Exportation of
commodities; coffee, tea and minerals to the global market will be by Kenyan
owned Shipping Line and this is likely to
bring down freight charges as a result of additional competition. Reduction in
freight charges would lead to more profits for exporters and low prices for
imported goods for Kenyans.
2. MSC will bring in cruise ships to
explore on the maritime tourism. On this many people in the hotel industry will
get jobs giving a major boost to our struggling tourism industry.
3. Bandari College will be upgraded
to a full-fledged Nautical College. MSC
will bring its vessels for training for all seafarers including vessel
Captains, Chief Officers and Marine Engineers.
Bandari College will be issuing certificates of competence which will be
recognized in the maritime world. Practical lessons will be done directly in
MSC vessels. At the moment Kenyan Captains have to be trained abroad.
4. Job creation. Many Kenyans people
will be employed, most of them from the Coast region.
5. MSC will make Kilindini its hub Port,
translating to increased business to Kenya since a lot of transshipment services
will be done at Kilindini Harbour.
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| KPA Headquarters, Kilindini |
Currently, CT2 services are being
enjoyed by Maersk, which is not happy to have the Act amended so as to enable
KNSL enjoy the same services.
It is
funding individuals including Coast politicians to jeopardize the effort of
revitalizing Kenya’s maritime sector.
People from the Coast should in fact
say Alhamdulillah for this amendment. Since the Standard Gauge Railway (SGR) came
into operation, most of the imports clearing services have been transferred to Inland
Container Depot (ICD) Nairobi, rendering majority of the locals jobless.
Revival of the KNSL would compensate lost jobs and create many more.
Leaders
who are against the amendments are the real enemies of development in Coast.
