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The process for dredging Mombasa port channel to accommodate huge vessels has started.
A wider channel will position the port for transshipment which faces a threat from other emerging African facilities.
Tenders to identify a firm that will carry out the process as well as assist in raising the Sh7 billion required for the project have been opened.
Six international firms which submitted their bids and technical capacity to carry out the task will be evaluated in the next one month, according to the tender committee.
China Road and Bridge Corporation of China, Oord Dredging and Marine Construction of Netherlands and Sino Hydro Corporation Ltd of China bid for the project.
Other firms include the Jana Nur Dredging International, Rohde Nielsen and Boskalis International BV.
Firms which will successfully go through the first stage will be invited for the next phase for the contract that is expected to be awarded by September this year.
“We shall involve more players that will include the Ministry of Finance during the next stage of evaluation,” said Mr Omae Nyarandi, procurement and supplies manager at Kenya Ports Authority (KPA), who led the opening exercise. He is also a member of the tendering committee.
Bidders were required to provide a tender security of $1 million with the firm that will win the contract expected to start work before the end of the year, Mr Nyarandi said, adding that the government has already provided Sh1 billion for the project.
“The requirement to provide security from a bank was supposed to ensure that we only receive bids from serious companies who have the capacity to do the job and lock out jokers,” he said.
KPA postponed dredging last year until the planned construction of a second container terminal commenced. The two projects are related.
Construction of the second terminal and dredging of the channel are supposed to begin together because the material that would be scooped from the sea would be used to reclaim part of the land for the second terminal.
The port has lost a huge transshipment business over the last two years after suspending such operations due to capacity constraint at the container terminal against a background of growing cargo volumes than anticipated.
Shipping lines calling at Dar-es-Salaam port are seeking alternative sites due to long vessel delays which is taking up to three times more than Mombasa port, KPA operations manager engineer Joseph Atonga said.
Infor: http://www.dredgingtoday.com/2010/04/09/kenya-construction-on-mombasa-port-in-progress/Kenya: Construction on Mombasa Port in Progress
Posted on Apr 9th, 2010
Second 1.2 mln TEU terminal will start operating in 2013 and Port working 24-hrs, turnaround time improves. Kenya’s only deep water port and East Africa’s main trade gateway handled a total 19.06 million tonnes in 2009, up from 16.41 million in the previous year, the port operator said in a report. The container terminal handled 618,816 twenty foot equivalent container units in 2009, up slightly from 615,733 in 2008 although it was designed for 250,000 TEU. Over a quarter of the total throughput, or 4.98 million tonnes, was transit cargo. Ugandan goods accounted for just under 80 percent. “These figures highlight the growing use of the port by the region and show signs of an improvement in regional economic performance,” the Kenya Ports Authority said in its 2010-2011 handbook.
“KPA is forecasting continued growth for 2010 and 2011, albeit at a slower pace owing to the current economic conditions.” More than 90 percent of the transit cargo is moved by trucks but Kenya and Uganda are planning to lay a 1,290-kilometre standard gauge track to supplement an existing metre gauge railway between Mombasa and Kampala. KPA said Chinese and Korean firms had expressed interest in constructing the wider track.
Turnaround time improved to three days from five days in 2008 after the port adopted 24-hour work schedules and opened new container freight stations. KPA said work on a second terminal with a 1.2 million TEU capacity began in 2009 and there were plans to convert existing berths into a third terminal. The second terminal, whose first phase should be operational in 2013, will cost an estimated $235 million and will be financed by a Japan International Co-operation Agency loan. “KPA has already decided that the second terminal should be operated by a concessionaire in some form of competition with the authority’s own container handling facility,” KPA said. KPA also hopes to dredge the port to a deeper 15 metres from 13 metres to enable bigger ships to call at the port.
The Mombasa port also serves Uganda, Burundi, Rwanda, south Sudan, eastern DRC and Somalia. Aid agencies also use it for food aid. It handled 1.0 million tonnes of aid cargo in 2009, nearly double the amount of food discharged in 2007, KPA said. Food destined for Somalia took nearly 40 percent. Zambia, Ethiopia and Malawi were considering using the Mombasa port as a gateway for some overseas markets.
A Netherlands firm has won the tender to carry out the planned dredging of the Mombasa port channel, which maritime experts say will position it strategically as a regional trans-shipment hub.
The company, Van Oord Dredging and Marine Contractors, emerged the best in evaluations, beating three other firms which submitted bids in April this year. The government hopes to finalise talks with the firm soon.
“We are in the process of preparing the contract documents to be signed soon so that the dredging can start by next month or latest in January next year,” said the Kenya Ports Authority (KPA) procurement manager Mr Yobesh Oyaro.
Do not see any hurdles
The four international firms submitted technical and financial proposals for evaluation early this year. Mr Oyaro said that all the firms’ technical proposals qualified for the task but the authority had to rely on financial submission to award the tender.
Firms were invited last year to submit their technical submissions, financial submissions and financing proposals for the project that will be funded by both the government and donors.
“Since it is now over 14 days since the tender was awarded, we do not anticipate any hurdles and the dredging will go on as planned,” said Mr Oyaro.
KPA postponed the exercise last year until the planned construction of a second container terminal commenced.
The setting up of the second terminal and dredging of the channel, whose design work is now complete, are supposed to commence together because material that will be scooped from the sea bed will be used to reclaim part of the land for the additional facility.
Lost some business
The second terminal is funded by Japan to the tune of Sh16 billion and will create an additional capacity of 1.2 million twenty foot equivalent units (Teus) compared to the existing capacity of 250,000 Teus.
The Mombasa port has already lost to Dar es Salaam port trans-shipment business in the last two years due to the container terminal constraints.
The port is already being stretched almost beyond its 20 million tonnes per year capacity.
Trademark East Africa (TMEA) is investing Sh4.5 billion ($ 53.05 million) over the next 5 years (2012 -2016) on improving the efficiency of the Mombasa port.
TMEA is proposing specific technical and grant support that would target both capacity and efficiency at the port.
The areas of support include port-wide productivity improvement study, improving rail linkages and space rationalisation within existing port land, improving yard facilities and stacking areas at berths and improving port access.
Mr David Leahy, a member of TMEA’s board of directors said TMEA estimates that by 2015 the Mombasa Port will need 40 per cent more ship-to-shore equipment, 230 per cent more quay space, and as much as 400 per cent more yard space.
TMEA last week receive a grant worth Sh1.2 billion from the government of Sweden to fund the activities of the organisation which targets to improve trade in the region.
TradeMark East Africa (TMEA) has also committed Sh1.7 billion ($ 21.3 million) to the Tanzania Port Authority (TPA) for work at Dar es Salaam Port. This represents over 29 per cent of TMEA’s current Tanzania program budget of US$ 73.5 million.
“In the longer term, the TMEA programme envisions improving land-use within the port environs, upgrading the existing facilities to allow larger and deeper draft vessels use berths 1-10 and berths 11-14, “extending the port gate to Miritini, relocating the liquid bulk berths, and changing the use and function of Mbaraki wharf,” said TMEA in a statement.
The organisation is also investing around Sh6 billion ($75m) in seven one stop border posts (OSBPs) across the region.
The aim of OSBPs is to reduce transit costs incurred in cross-border movement by combining the activities of both country’s border organizations and agencies at a single location in either direction.
Along the Northern Corridor is the construction of the Busia-Busia (Kenya/Uganda) and Kagitumba-Mirama Hills (Rwanda/Uganda) border crossings.
Others in the budget are the Taveta-Holili (Kenya-Tanzania), Mutukula-Mutukula (Tanzania/Uganda), Kobero-Kabanga (Burundi/Tanzania) Tunduma (Tanzania/Zambia) and Elegu/ Nimule (Uganda/South Sudan) border crossings across East Africa.