Fast-tracking the development of Naivasha ICD and regional Inland Waterways: a boost to a resilient trade and Transport Logistics system
The Northern Corridor Policy Organ Meetings composed of the Executive Committee and Council of Ministers were held between 28th and 31st July 2020; where Member States reiterated their commitments to use the Inland Container Depot (ICD) facility at Naivasha as well as the Oil Jetties on Lake Victoria to ensure a faster rebound of the economies of the region. The Policy Organs agreed to fast-track the full development and completion of the required amenities at the dry port in Naivasha and continue with the development of key Inland Waterways to boost trade and Transport system in the region.
The renewed commitments among other resolutions were arrived at during the 32nd sitting of the Northern Corridor Council of Ministers and the 49th meeting of Executive Committee held online and discussed response plans to ensure a faster recovery and a more sustainable Transport Logistics system that can respond to disruptive situations, such as COVID-19 pandemic in the future without creating adverse impacts on Trade and Transport along the Corridor.
The virtual meetings with the theme “towards a resilient, smart and responsive corridor for trade and transport logistics” brought together Principal Secretaries and their equivalents; Ministers in charge of Transport matters from all the Northern Corridor Member States of Burundi, DRC, Rwanda, South Sudan and Uganda as well as the Minister for EAC and Regional Development of the Republic of Kenya.
The Policy Organs urged all Northern Corridor Member States to embrace technology and commit to the implementation of Single Customs Territory initiatives; as well as a full-fledged roll out of the Regional Electronic Cargo and Drivers Tracking Systems to ease the costs of doing business.
Honorable Adan MOHAMED, EGH, Cabinet Secretary, Ministry of East African Community and Regional Development, Republic of Kenya and Chaiperson of the Northern Corridor Council of Ministers; Hon. Immaculée NDABANEZE, Minister for Commerce, Transport, Industry and Tourism, Republic of Burundi; H.E. Didier MAZENGA MUKANZU, Minister for Transport and Ways of Communication, Democratic Republic of Congo; Hon. Claver GATETE, Minister for Infrastructure, Republic of Rwanda; Hon. Madut Biar YEL, Minister for Transport, Republic of South Sudan; Mr. Bageya WAISWA, Perment Secretary, Minister for Works & Transport, Republic of Uganda; Dr. Margaret W. Mwakima, Ph.D, CBS, Principal Secretary, State Department for Regional and Northern Corridor Development, Ministry of East African Community, Republic of Kenya and Chairperson of the Executive Committee; OMAE NYARANDI, Executive Secretary, Northern Corridor Secretariat; all participated in the Virtual Meeting of the Council of Ministers.
While analysing the performance of the Northern Corridor, the Transport Observatory data indicated that the aggregate throughput at the Port of Mombasa showed a decline of 5 percent in the Months of January-May 2020, from 14.3 million metric tonnes in Jan-May 2019 to 13.6 metric tonnes in Jan-May 2020. Imports accounted for 82 percent of the total throughput over the period Jan-May 2020; suggesting unfavourable trade balance. There was also a decline in imports as a share of throughput from 84 percent in January 2020, compared to 80 percent in May 2020; suggesting a contracting in import trade in the countries that uses the port of Mombasa. Exports accounted for only 13 percent of total throughput over the five months, increasing from 11 percent in January 2020 to 13 percent in May 2020; an indication that import trade has been hard hit by the COVID-19 pandemic as opposed to export trade.
Kisumu Oil Jetty.
While commending the ongoing developments at the Inland Container Depot in Naivasha/Kenya, the Oil Jetty at Kisumu/Kenya and Kawuku/Uganda to transport oil using the Lake Victoria and the efforts being made to revamp the meter gauge railways within the Northern Corridor region, the Policy Organs directed the Northern Corridor Secretariat to carry out a survey and conduct studies to determine the necessary requirements for maximum utilization of the ICD facility at Naivasha and the Inland Waterways on Lake Victoria.
Notabily, a larger share of imported cargo through the port of Mombasa is containerized cargo accounting for 66 percent of the total containerized imports for the five months (Jan-May 2020). Kenya accounted for the bulk of the total throughput at 64 percent; whereas about 36 percent of the total throughput was for transit market. Uganda remains the highest destination of transit market through the port of Mombasa, accounting for 3.28 million metric tonnes during the period January-May 2020.
Reports also indicated a drop in the demand for crude oil, which has been attributed to the Coronavirus outbreak and the subsequent cut in oil production by oil-producing countries. Since May 2020, OPEC+ countries have been reducing output by over nine million barrels per day after the COVID-19 pandemic impacted on the global demand for crude oil.
Operations at the Naivasha ICD
The ICD at Naivasha is located about 572 Km west of the port of Mombasa and 120 km from Nairobi on the Mombasa - Nairobi - Naivasha Standard Gauge Railway (SGR) route. The ICD is linked to the Nairobi-Narok highway that connects to Kisumu and also to the Isebania Board point. The 45,000-square-meter Naivasha Inland Container Depot can handle about two million tonnes of cargo annually. The ICD is expected to mainly handle cargo destined to Uganda, Rwanda, South Sudan, Ethiopia, Burundi and the Democratic Republic of Congo. The Transit Time for trains from Mombasa to Naivasha is about 10 hours. The use of ICD facility at Naivasha is expected to reduce the number of trucks on the some of the road sections along the Corridor and decongest the ICD in Nairobi.
Senior government officials at the Naivasha Inland Container Depot. FILE PHOTO | NMG
Generally, the ICD at Naivasha handles both containerized and loose cargo. Currently, cargo is mainly delivered to the ICD by the Standard Gauge Railway and by road. A total of 2,245 TEUs that were hauled by train between May and June 2020 were imports, compared to the 70 TEUS that were cargo for exports. A total of 24 trains made calls to the ICD with import cargo during the period, while export cargo registered only six trains. The export trains operated below full capacity due to low volumes of export cargo.
The start of operation of the Naivasha ICD coincided with the emergence of the COVID-19 pandemic partly accounting for the slow growth in performance.