Mombasa port privatisation deadline set

The privatisation of berths and cargo handling at the port of Mombasa will be completed by 2016, said TradeMark East Africa (TMEA) on Monday, adding that the resulting efficiency would also boost margins of goods exported via the port.



The over 25 private and public agencies from across the EAC bloc involved in the Northern Corridor Integration Projects have set 2016 as the deadline for privatisation of services – berths and stevedoring – at the port.



Delayed cargo clearance, red-tape when moving goods to the hinterland and poor infrastructure are blamed for spiking costs of goods by over 40 per cent – way above the global standard of up to five per cent.



“If goods are shipped to regional countries, the freight costs actually go up by 45 percent. If we achieve the targets, then this cost could be reduced to below 10 per cent,” said Frank Matsaert, TMEA chief executive.