Joint NCTTCA/ Government of Kenya Mission to Uganda and Rwanda to Review the impact of the Kenyan Post Election Crisis on the Northern Corridor.

The post election crisis in Kenya, during January, 2008 severely disrupted trade and transport using the Northern Corridor. Economic operators using the corridor incurred huge loses in the form of assets, delays resulting in accumulated demurrage and other charges at the port of Mombasa, inventory costs, as well as lost business opportunities.

The NCTTCA found it necessary to mount a joint mission with the Government of Kenya to the land-locked countries to review the trade and transport situation along the Northern Corridor following the post election crisis in Kenya. The first leg of the mission went to Uganda and Rwanda from 2 nd to 6 th March, 2008, while the second leg of the mission to Burundi and DR Congo will be undertaken after a new government has been fully constituted in Kenya.

The Joint Mission was led by Hon. Ambassador Chirau Ali Mwakwere, Minister for Transport, Kenya, and included the Executive Secretary of the NCTTCA, Mr. Godfrey M Onyango, the Managing Director of Kenya Ports Authority, Mr. Abdallah Mwaruwa, the Deputy Permanent Secretary of the Ministry of Transport, other high ranking officials of the Kenya Government and Senior Executives of private organizations in Kenya.

In each of the two countries visited, the mission met with the Ministers responsible for transport and trade matters, high ranking government officials and representatives of private sector organisations, doing business using the Northern Corridor.

During the mission, the Kenyan Minister for Transport thoroughly explained to his counterparts and members of the business community measures that were put in place by the Kenyan Government to ensure uninterrupted flow of traffic along the corridor. He reassured both the governments of the two countries and members of the business of Kenya's commitment to reducing the cost of doing business using the corridor. He also took the opportunity to highlight the political settlement that had been reached in Kenya and expressed confidence that everything would return to normal very soon.

Discussions of in the two countries dwelt of the following issues:

(i) Waiver of container demurrage charges, port storage charges and customs warehouse rent accumulated by operators as result of delays occasioned by the crisis;

(ii) Implementation of the new port tariffs

(iii) Security of goods, vehicles, drivers and passengers;

(iv) Supply of fuel to landlocked countries;

(v) Delays at road blocks/weighbridges due to multiple weighing of vehicles;

(vi) Elimination of the rear fourth axle for trucks

(vii) Empty run for transit trucks due to the ban on the use of such trucks to carry import and export goods originating from and destined to the Northern Corridor countries;

(viii) Full implementation of one stop Border Post Operations (Malaba, Busia);

(ix) Implementation of the East African Community and Customs Management Act 2004 relating to the licensing of trucks;

(x) Operation of Container Freight Stations;

The above issues were thoroughly discussed during the mission to the two countries and common positions were reached. Generally speaking, the Kenyan government promised to favorably consider the waivers that were requested by members of the business community. These included, waiving accumulated port storage and customs warehousing charges on goods that entered the port between 24 th December, 2007 and 31 st January, 2008. Such waivers would be extended to all land-locked countries.

The government of Kenya also promised to look into the request by the land-locked countries for a delay in the application of new port tariffs by six months.

Concerning supply of fuel to the land-locked countries, assurances were given to the effect that this would continue to be accorded top priority so as not to disrupt the economies of the countries concerned. This assurance referred to aviation fuel as well.

With regard to delays incurred at weigh-bridges as a result of repeated weighing, it was agreed that weighing of trucks would only be done at entry and exit points. There was also agreement on the need to eliminate the rear fourth axle on trucks as they severely damage road infrastructure.

Regarding empty runs of trucks due to the stringent licensing conditions, it was agreed that the countries should align their licensing requirements for trucks with the COMESA Carrier License Regulations, in order to eliminate the capacity wastage currently occurring in the trucking industry. In this regard, the provisions of the East African Customs Management Act, relating to licensing of trucks carrying goods at customs control would also have to be aligned with the COMESA regulations.

The Revenue Authorities of Uganda and Kenya were urged to expedite the move to full one-stop operations at Malaba, where a pilot scheme has been ongoing for quite a while now.

Concerning container freight stations (CFS), there was agreement that landlocked countries could develop such facilities in and around Mombasa to ease the handling of their goods. In the case of private CFS,s to which goods are currently consigned, it was observed that there was need ensure that their operations do not result in more costs to importers.