Mombasa box congestion

Port and tax officials' quarrel worsens Mombasa box congestion

The quarrel between the Kenya Ports Authority (KPA) and the Kenya Revenue Authority (KRA) is worsening the congestion plaguing Mombasa.

The KPA operates the Mombasa Container Terminal and the Consolbase Container Freight Station. The dispute was sparked KPA's decision to contract two off-dock container freight stations to handle the excess cargo awaiting clearance before it was released to the owners. But the KRA insists that all customs conditions must be met before containers can leave the port for the off-dock freight stations.

A report by the East African newspaper in Nairobi said that one of the main stumbling blocks is a requirement by KRA for the execution of cash bonds for all the containers leaving the port.

The KPA's says the containers are bonded cargo in its possession and are only being moved from one of its terminals to another.

Twalib Khamis, the port's chief operations manager, said the imposition is a great burden for shippers and importers who are already suffering because of delays in clearing their cargo from the port.

Conference lines plan to impose a surcharge of US$200 per TEU on all southbound shipments, and a surcharge of $100/TEU for northbound shipments.

The report added that a decision by both the KPA and KRA to allow the transfer of cargo by road rather than rail is a severe blow to the Rift Valley Railways Ltd (RVR), which operates the Kenya-Uganda railway.