EAST AFRICAN PORTS

EAST AFRICA’S From the Horn of Africa on the strategic Red Sea to the
buoyant ports of Mozambique, East Africa’s ancient
PORTS STEP UP “Swahili Coast” provides a logistical nexus between
COMPETITION Africa’s massive population centres and other continents.
Foreign direct investment is driving expansion and
OVER INDIAN rehabilitation of existing seaports, while entirely new
facilities are also being rolled out. Ports that shun
OCEAN TRADE partnerships with experienced foreign investors are set to
MARKET SHARE lose out as competition for market share intensifies.

“In Africa as with the rest of the world, the importance of seaports to trade, and therefore to the
continent’s economic performance cannot be overstated. Ports are crucial for trade of most
African countries due to the continent’s high dependency on exports of raw materials and
imports of food, manufactured goods and fuel. For example, more than 90 percent of Africa’s
total trade (including imports and exports) pass through seaports” (UNECA, 2016). This
statement demonstrates the importance of having well-managed, transparent, and efficient
operations and management at Africa’s ports.

In East Africa, the traditional dominance of the Port of Mombasa is being challenged by other
regional facilities that are attracting more investment and are less resistant to reform, while
entirely new deep-water seaports are being constructed to diversify regional trade and shipping
routes. Turkish, Emirati, South African, and Chinese investors are leading the pack in the region
to refurbish and expand East Africa’s ports. The UAE and UK-led expansion of the Port of
Berbera in Somaliland is a benchmark for other facilities as it creates a highly lucrative trade
corridor to inland markets and population centres, while attracting fresh investments into
associated sectors.

However, some foreign investments are creating ESG concerns or do not have the potential to
reach their full potential. The Chinese plans for a new trade corridor at Lamu in Kenya are
stalling, while revitalised Chinese plans for a new seaport at Bagamoyo are open to criticism
over environmental and debt sustainability concerns. This report lists some of East Africa’s
major port facilities and explains their drivers of success, or disappointment.

2022 | REPORT 1
 EAST AFRICAN PORTS

SOMALIA / SOMALILAND

UAE AND TURKISH PORT OPERATORS

ASSURE SUCCESS STORIES

The successful elections in 2022 have Due to the Albayrak investments, the port of
thrown the restive country of Somalia Mogadishu is attracting new deals with
back into the spotlight as a growing African shipping lines and logistics services
economy in the Horn of Africa, a nascent that also connect other ports in the country
oil producer, and exciting trade and wider region. By early 2022, the port
interconnector to the massive population contained six wharves, including five general
centres of landlocked Ethiopia. Along its cargo berths and a container berth. Around
3,333 kilometres long coastline, Somalia 245 cargo laden ships visit the port annually,
currently has five international port predominantly shipping containers, as well as
facilities, of which three lie within breakbulk such as cement, sand, and fuel.
Somalia itself, one within the Some of Somalia’s key exports are channelled
autonomous Puntland state, and one – through Mogadishu Port, including livestock,
perhaps with the most exciting prospects frankincense and myrrh, bananas, fish, animal
– in the de facto state of Somaliland. Out hides, scrap metal, and charcoal.
of the five seaports, only those three
operated by foreign specialised Despite insecurity and political instability in
companies are thriving, while only one is the capital city over the past few years,
embarking on a massive development operations at the port have usually continued
and expansion strategy that will benefit without major interruptions, while Albayrak
the entire Horn of Africa region. has ensured effective administration of these
operations.
1) Port of Mogadishu - Turkish
conglomerate ensures effective 2) Port of Bosaso – DP World entity
administration operates livestock export hub that
competes with Australia
Somalia’s largest port facility in the federal
capital Mogadishu has been operated since Bosaso is the commercial capital of the
2014 by Turkish multinational conglomerate autonomous Puntland region in northeastern
company Albayrak Group, which also runs Somalia. Its port, which is also known as
Conakry port in Guinea in West Africa. Bender Qaasim, is now classified as a major
Albayrak has made investments of class port just like Mogadishu’s port facility.
approximately USD 80 million in the port as Following an expansion phase that started in
part of its rehabilitation project, which has 2012, Dubai-based P&O Ports in 2017 won a
doubled revenues from Mogadishu Port to the 30-year concession for the management and
federal government. According to Albayrak, development of a multi-purpose port project.
most of its revenue share will be re-invested in P&O Ports, which is owned by DP World, has
the seaport through additional port-based since committed to a USD 336 million
trade and new docks. investment in Bosaso. The work has included

2022 | REPORT 2
 EAST AFRICAN PORTS

building a 455 metres long quay and a Foreign investors have expressed interest in develo-
5.5 hectares storage area. The port has ping Merca’s port but only if the government can
been dredged to a depth of 12 metres assure local security and stability.
and P&O Ports has also invested in the
installation of the latest IT terminal The Port of Merca offers a clear example of how
operating system and port equipment. poor governance and insecurity can obstruct
commercial development and result in missed
Bosaso Port is geared towards exports of opportunities for local communities.
livestock such as cattle, sheep, and
camels to the Arabian Peninsula, while 4) Port of Kismayo – Lost opportunity for
also providing transhipment services for agricultural exports and humanitarian
Yemen. Imports include bulk shipments supply chain
comprising cement, sugar, rice, and
construction material. P&O Ports’ Only slightly larger than the port of Merca, the
operations were temporarily disrupted facility in Kismaya, in Somalia’s southern region
in 2019 by the killing of its manager by of Jubbaland, offers exports of bananas but little
local Islamist militants, but otherwise else of major commercial value. Some 80 percent
the port facility has been able to flourish of port facilities are not operational, and the port is
and Bosaso now ensures that Puntland in urgent need of maintenance. However, no
can compete with Australia for livestock foreign investors have expressed interest in
exports to Saudi Arabia. developing Kismayo’s port, which is mostly due to
weak governance by the local government of the
3) Port of Merca – Insecurity Federal Member State of Jubbaland, which is
hampers port development corrupt and inefficient, while also open to foreign
interference.
Despite its proximity to the major city
of Mogadishu and its history as a Revenues and resources generated from the port
banana export facility, the Port of are channelled into Jubbaland’s service delivery
Merca has been unable to develop at the and security sector, rather than reinvested into the
same level as its Somali peers. Merca port. Kismayo port lacks sufficient handling
was destroyed during the civil war and equipment and has only four warehouses, while
port infrastructure was burnt. Since there are also no cold storage facilities. The port of
then, the area is vulnerable to militant Kismayo could be developed as a major
activity and as recent as 2016, Merca humanitarian facility to connect to Somalia’s
was completely abandoned to the famine-struck regions, as well as conflict zones
militant group al-Shabaab (later further inland in Ethiopia and parts of Kenya.
recaptured). As a result, no foreign However, in the absence of good governance and
investment has gone into the facility, foreign investment, Kismayo port attracts no more
and it is classified as no more than a than 50 small ships and barges annually. The
jetty class port that is mostly used by Mediterranean Shipping Company is the largest
small fishing vessels. company that infrequently visits the facility.

2022 | REPORT 3
 EAST AFRICAN PORTS

5) Port of Berbera – Foreign As part of the deal agreement, Ethiopia

investment provides has committed to building infrastructure
game-changing opportunity for to develop the Berbera Corridor as a
Horn of Africa trade gateway, while the governments of
the UAE and Somaliland have put in
The Port of Berbera is by far the place an additional Memorandum of
most exciting seaport facility in Understanding to advance their strategic
the region. The DP World New relationship. The Port of Berbera’s new
Port of Berbera is a container terminal includes a new 400
game-changing project for metre berth and three ship gantry cranes.
Somaliland, providing a second The terminal’s container capacity has
trade gateway to neighbouring increased from 150,000 twenty- foot
Ethiopia, which has been looking equivalent units (TEU) or containers to
to diversify supply lines from 500,000 TEU annually, and work is
Djibouti’s congested ports that already under way for an expansion to
have also suffered from arbitrary handle up to 2 million TEU a year.
government intervention in recent Djibouti’s ports currently handle one
years. The Berbera Trade million TEU annually. The revamped
Corridor is expected to attract port of Berbera now offers an alternative
significant foreign investment, to Djibouti as a gateway to lucrative trade
even while Somaliland remains routes through the Suez Canal.
unrecognised internationally.
The DP World Berbera New Port is the
The strategically located Port of Berbera first major foreign direct investment
has benefited since 2016 from a USD 442 (FDI) and the first international
million agreement signed between the non-mineral concession known in
government of Somaliland and Emirati Somaliland. According to the World
multinational logistics company DP Bank’s 2018 fact sheets, the volumes
World to operate a regional trade and handled in the Port of Berbera are
logistics hub. The DP World port expected to increase from 3 million
expansion has added a new dock and an tonnes in 2016 to 18.1 million tonnes in
economic free trade zone, while the USD 2050. By 2035, the Port of Berbera is
100 million road corridor connecting expected to facilitate trade equivalent to
Berbera with Ethiopia has been tested nearly 27 percent of GDP and 75 percent
and is in use since 2020. Since 2018, DP of total trade, supporting indirectly
World holds a 51 percent stake in the 53,000 jobs in Somaliland. Berbera port
project, Somaliland 30 percent, and also plays a key role in enabling
Ethiopia the remaining 19 percent humanitarian aid to enter the region,
(although Ethiopia has been late in reaching close to 2 million refugees and
acquiring its stake in the port). internally displaced populations.

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 EAST AFRICAN PORTS

In October 2021, the UK’s development Alternative gateways to Ethiopia, such as

finance agency CDC Group (now British the Lamu Corridor from Kenya, have
International Investment, BII) joined DP been delayed or are only partially
World’s investment project, which has complete. Ethiopia’s government is
almost doubled funding. The latest therefore developing the Berbera
investment in the Port of Berbera comes Corridor, while it has also expressed
as part of the CDC Group’s USD 1.7 interest in expanding the port of Zeyla
billion joint initiative announced last (Saylac) in northern Somaliland. While
year. The long-term partnership is aimed Ethiopia’s Chinese allies would support
at multiplying the capacity of the Port of the expansion of Zeyla, such a move is
Berbera and improving surrounding likely to be opposed by Somaliland and
logistics facilities to create a regional its partners in the Port of Berbera such as
trading hub. the UAE and UK. The UAE is heavily
invested in the Berbera Corridor,
The Port of Berbera expansion also has including a UAE-funded new airport.
regional strategic significance. Ethiopia,
in particular, is benefitting from DP DP World previously owned the Port of
World and the CDC Group’s joint Doraleh, which is an extension of the
initiative. According to CDC Group, “in Port of Djibouti and the main container
Ethiopia, Berbera port is expected to terminal. In 2018, the Djibouti
enable trade equivalent to 8 per cent of government expropriated the facility and
GDP and 32 per cent of national trade placed it under the control of the
by 2035. This will support 1.2 million government owned Doraleh Container
jobs in the economy – where 60,000 of Terminal Management Company,
these employment opportunities will be arguing inaccurately that the DP World
created through the port expansion – and contract violated Djibouti's sovereignty.
increase access to vital goods and staples In fact, the Doraleh port was then
for 10 million people in Ethiopia.” frequently ranked as the most efficient in
Africa and DP World has won several
Ethiopia’s government is seeking new international arbitration cases since then.
access to ports after Tigrayan rebels Djibouti has since offered China
disrupted supply lines to Djibouti in Merchants Ports Holdings (via its
2021, while promised access to Eritrea’s subsidiary China Merchants Group) a
ports has not materialised. Today quarter of the port's stake, in a perceived
Djibouti handles up to 95 percent of all repayment on some of its debt owed to
of Ethiopia’s inbound trade. China.

2022 | REPORT 5
 EAST AFRICAN PORTS

KENYA

URGENTLY NEEDED INVESTMENT AND

PARTNERSHIPS FOR EAST AFRICA’S TOP PORT

Kenya’s ports sphere is completely Kilindini Harbour is managed by the Kenya

dominated by the Port of Mombasa, Ports Authority (KPA), which is a state
which despite its massive size and corporation with the responsibility to
handling capacity is suffering from “maintain, operate, improve and regulate all
congestion, delays, mismanagement scheduled seaports” on the Indian Ocean
allegations, and frequent industrial coastline of Kenya, including principally
action. However, long-time plans to Kilindini Harbour. Mombasa receives an
attract foreign investment and take average of 3,000 containers daily. Following
onboard operational partners have been an expansion and refurbishment from 2013,
obstructed by localised concerns over the annual handling capacity of the port is
sovereignty in Kenya’s Coast region and 2.65 million TEUs. In comparison, Morocco’s
misunderstandings by port labour Tanger Med Port Complex handled over 7
unions over such a collaboration. If million TEU in 2021, up 24 percent compared
Mombasa does not soon attract fresh to the previous year.
investment, it will lose its ranking to
Chinese operated Lamu port and other The wider Mombasa Port complex comprises
regional facilities. 19 berths, a grain terminal, 2 oil terminals, 6
container berths, and 12 berths that handle
Port of Mombasa – East Africa’s only general cargo. The Port of Mombasa
logistics hub faces challenges from exists of Kilindini Harbour, the Mbaraki
newer and improved ports wharf that is operated by the Bamburi
Cement Company, Mbaraki Bulk Terminal
Kilindini Harbour is the main facility of the that deals with petroleum products. There is a
Port of Mombasa, the only international separate gran handling terminal that is the
seaport in Kenya, the biggest port in East biggest grain handling facility in Africa. There
Africa and the second largest on the continent are two major oil terminals at the Mombasa
after Durban in South Africa. However, Port including the Shimanzi Oil Terminal and
Mombasa is steadily losing its edge over more the Kipevu Oil Terminal. Further expansion
recently developed or expanded facilities – it at the Kipevu Terminal has been ongoing for
now only ranks as the fifth best port in Africa several years, including construction of a
according to recent industry rankings. hydraulic dock and an onshore pipeline, which
Mombasa port trails Tanger Med in Morocco, would greatly increase Kenya’s oil
which is ranked as Africa’s top port with a transportation capacity.
capacity to handle nine million containers.
The new developments in Lamu, Kenya, and Some of the persistent challenges at Mombasa
Bagamoyo, Tanzania, will challenge port have been congestion and high ship
Mombasa’s dominance, unless a new investor turnaround time, low cargo handling
and operation partner can be found. productivity, especially at berths designated for

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 EAST AFRICAN PORTS

bulk cargo, and inadequate water depth to fishing, and small-scale cargo. The KPA is
berth high tonnage vessels. In 2021, reports planning developments at most of these
emerged that the Port of Mombasa was facilities, although the impact of these
experiencing a three-week congestion investments will be small-scale and highly
following a commercial dispute. The KPA localised. Lake Victoria has Kisumu Port,
subsequently denied such claims. Substantial which is a regional hub for petroleum exports
investments at the port between 2017 and to landlocked countries, such as Uganda and
2021 have seen significant improvements, DRC. KPA plans to increase Kisumu’s local
although these expansions have not been imports to 130,000 tons by 2025, and 180,000
sufficient to keep up with more sophisticated tons by 2035, from 22,000 in 2014.
and larger ports such as Tanger med, or
regional upstarts such as Lamu and eventually Port of Lamu – Fresh investment and
the new Bagamoyo port. Moreover, Mombasa expertise required to drive impetus to
also faces greater competition from Tanzania the stalled LAPSSET
and other ports in the region.
In 2014, the KPA agreed a deal with China
Since 2015, the Kenyan government has Communications Construction Company
considered a partnership between KPA and (CCCC) for the construction of three Port
DP World. However, this process has been Lamu berths that form part of the long
stalled by objections from labour unions in envisioned USD 24 billion Lamu Port and
Mombasa that fear job and wage cuts – Lamu-Southern Sudan-Ethiopia Transport
concerns with no real basis – and the local Corridor (LAPSSET), also known as the Lamu
Coast region community, which has Corridor. If completed, Lamu Port will have
traditionally been highly sensitive to any 32 berths and replace Mombasa’s Kilindini
perceived loss of sovereignty over Mombasa Harbour as Kenya’s largest port facility. The
port. The matter has become highly new port at Manda Bay would have the latest
politicised, particularly ahead of the 2022 infrastructure and would comprise a railway
general elections. However, without an terminal, storage tanks, container freight
actionable investment and expansion strategy, stations, an oil pipeline, oil refineries, and
Mombasa Port risks losing out to other several airports.
regional ports, and could fall into neglect like
many of the other KPA facilities across the However, the LAPSSET project has been
country. stalled due to regional insecurity concerns on
the border with Somalia, political instability in
Kenya’s other ports – Various ports are Kenya, and a lack of other investments. For
neglected or too small to make a major several years, KPA has been in talks with DP
economic impact World and other companies to operate the
new Manda Bay port facility, once complete.
Kenya has about 15 ports, but at a far smaller The aim of the project is to cut
scale than Mombasa’s complex. Mombasa’s over-dependence on Kenya's main Port of
Port Reitz has been neglected for years, while Mombasa, yet there are more commercially
Kenya’s coast is dotted with other small ports viable alternative pipeline and trade routes
such as Kilifi, Malindi, Kiunga, Mtwapa, and options through Tanzania or Ethiopia (and
Shimoni, which depend on modest tourism, indeed Somaliland).

2022 | REPORT 7
 EAST AFRICAN PORTS

TANZANIA

RACING TO CHALLENGE KENYA’S PORTS

MARKET SHARE

Tanzania has an active strategy to Dar es Salaam port is designed to handle

compete with Kenya for market share more than 10 million tonnes of cargo
in the Indian Ocean ports sector. The annually including approximately 4 million
Port of Dar es Salaam is offering faster tonnes of dry general cargo, 6 million tonnes
and more cost-effective trade and of liquid bulk, and 1 million tonnes of
transport solutions than Kilindini containers. An expansion programme is
Harbour in Mombasa since Dar es ongoing and will cost at least USD 421
Salaam is benefitting from ongoing million. The port’s operator, the Tanzania
expansion and investments. Plans for Ports Authority (TPA), has a similar mandate
a new deep-water facility to be built by as its Kenyan equivalent, the KPA.
Chinese contractors at Bagamoyo are
being revitalised, although there Tanzania’s other ports – Facilities running
remain serious environmental, social, below designed capacity due to lack of
and governance (ESG) concerns. opportunities Beyond Dar es Salaam, there
are two more major seaports in the country,
namely Tanga and Mtwara. Tanga is the
Dar es Salaam – Offering alternatives second biggest port in the country with
for regional trade to the Port of present annual cargo capacity of 1.2 million
Mombasa tonnes and is linked to Dar es Salaam port
through a 350-kilometre highway. Tanga
The Port of Dar es Salaam is one of three serves the north of Tanzania, as well as
ocean ports in the country and handles over 90 neighbouring nations of Burundi, Rwanda,
percent of the country's cargo traffic. Although and northern Uganda, with exports
it is smaller than Durban and Maputo, Dar es including coffee, cement, tea, beans, timber,
Salaam is fast catching up on the market share animal hides, sisal, and fertilisers. import
of the Port of Mombasa for Indian Ocean commodities are phosphates, chemicals,
commerce and trade. Landlocked countries like construction equipment, automobiles,
the Democratic Republic of Congo, Malawi, ammonia, oil, sulphur, grains, and cereals.
Uganda, Zambia, Rwanda, and Zimbabwe are
increasingly choosing Dar es Salaam over Mtwara is the third major deep-water port
Mombasa, due to the latter’s congestion of Tanzania located in the southern part of
problems. As such, Dar es Salaam is becoming the country, from where it also serves
a regional transhipment hub for soft Malawi, Mozambique, and eastern Zambia.
commodity exports, such as tea, coffee, tobacco, Mtwara deals with general cargo and is
oilseeds, cotton, sisal, and cashew nuts, as well known for exporting cashew nuts, cassava
as metals like copper. roots, and sisal.

2022 | REPORT 8
 EAST AFRICAN PORTS

It receives shipments of foodstuff, raw material, and Additionally, there is a port in Zanzibar,
cement. An industrial zone is planned to be which provides ferry services but does not
constructed near Mtwara, which should increase provide access for large cargo vessels.
capacity uptake at the port. Overall, the TPA offers Mwanza is the main port facility on Lake
sound management of these port facilities, although Victoria but is smaller than Kisumu in
many ports run below their designed capacity. Kenya.

Bagamoyo – ESG concerns over revitalisation of Chinese port

construction

Since 2021, Tanzania’s President Samia Suluhu Hassan has reopened negotiations
with China Merchant Holdings (CMH) to build a USD 10 billion new port, 75
kilometres north of Dar es Salaam at Bagamoyo. The president’s predecessor
cancelled the project over three years ago, in June 2019, claiming then that the
financing terms presented by Hong Kong-based CMH were ‘exploitative and
awkward.’ Bagamoyo Port, financed by China and Oman’s sovereign wealth fund,
would have become the largest port in East Africa as a 20 million TEU
(20ft-equivalent unit) container port. The Bagamoyo project was also a major
connectivity initiative being pursued by China in East Africa under its Belt and
Road Initiative (BRI) programme. The project included construction of several rail
lines and roads to oil fields.

Tanzania has been trying to change conditions such as a guarantee of

compensation for any losses incurred during project implementation, as well as to
revoke tax waivers granted to the Chinese companies, including waivers of a land
tax, workers’ compensation tax, a skills development levy, a customs duty, and
value added tax. The World Bank and several experts have criticised the Bagamoyo
construction plans, saying that the port project would not be commercially
sustainable under its current structure, but could attract business if developed as a
regional maritime initiative by the East African Community.

Expert reports say that the port would be too large for its envisaged role and that it
is located too close to other major regional ports, like Dar es Salaam and Mtwara
in Tanzania, and Lamu and Mombasa in Kenya, which all compete for the same
regional cargo business. The renegotiation of the Bagamoyo port project by
Tanzania is therefore aimed at extracting improved terms for the country, while
also seeking a more sustainable commercial agreement that will allow competition
with other ports.

2022 | REPORT 9
 EAST AFRICAN PORTS

MOZAMBIQUE

GAS-FUELLED ECONOMIC BOOM DRIVES

SHIPPING DEMAND

Mozambique’s five main new record as it registered a 21 per cent

seaports are all undergoing growth compared to 2020. The total volume
expansion and rehabilitation as of cargo handled in 2021 stood at 22.2
demand for shipping increases in million tonnes versus the 18.3 million tonnes
the southern African region. of the previous year. With a capacity to
Maputo port’s operations are handle 100,000 TEU annually, the container
managed by a highly successful facility is one of the busiest in southern
joint venture between the local Africa.
government, and South African
and UAE companies. Thanks to the port, Maputo’s economy is
based on numerous industries like
Maputo – Joint venture operation shipbuilding, breweries, ironworks, cement,
provides southern African success story and textiles whose finished products are also
exported from this port. Matola Terminal is
Since 2003, the Port of Maputo has been a separate deep-water facility that serves oil
operated by a public-private joint venture, the tankers and ore carriers. The aluminium
Maputo Port Development Company (MPDC), wharf can handle one million tonnes of bulk
which is a partnership between state-owned the alumina, petroleum coke and pitch annually.
Mozambican Railway Company (Caminhos de Moreover, the coal terminally handles 2.5
Ferro de Moçambique) and Portus Indico, million tons of bulk mineral coal annually.
comprised by Grindrod, DP World and local
company Mozambique Gestores. DP World has Mozambique’s other ports – Facility
since further invested in the company and its expansion and refurbishments
concession. MPDC holds the rights to finance, underway
rehabilitate, construct, operate, manage,
maintain, develop, and optimise the entire Mozambique has four more notable
concession area. The company also holds the seaports, including Beira, Nacala,
powers of a Port Authority, being responsible Quelimane, and Pemba. The Port of Beira is
for maritime operations, piloting towing the second largest port in Mozambique and
(tugboats), stevedoring, terminal, and is a major facility for shipping central African
warehouse operations, as well as port’s planning goods and serves as a transhipment port for
development. the inland countries of Zimbabwe, Malawi,
and Zambia. Beira’s container handling
Due to MPDC’s sound management, the port facility is one of the most technologically
of Maputo has favourable loading rates and advanced in the South African region.
efficient services, which have made it an Meanwhile, the Port of Nacala handles most
attractive facility for charterers and shipping of the international trade of landlocked
companies. In 2021, Maputo Port achieved a Malawi and is visited by over 200 ships

2022 | REPORT 10
 EAST AFRICAN PORTS

annually. Nacala’s port is operated by Sociedade

do Corredor Logístico Integrado do Norte
(CLIN), which is a joint venture between Brazil’s
Vale and CFM.

The two other ports, Quelimane and Pemba, are

smaller facilities, serving the northern provinces
of Mozambique, although Pemba is increasingly
becoming a hub for the nascent natural gas sector.
The government and CFM have extensive plans
to expand these facilities, as well as other ports
across Mozambique, as the country’s economy is
set to grow at record pace in coming years due to
the natural gas boom.

2022 | REPORT 1
 EAST AFRICAN PORTS

THE PORT OF LAMU

This port has had its benefits of The port of Salalah is the biggest port in the Arabian
being the only port in the Eastern Peninsula and most ships in Eastern Africa use this port
part of Africa that serves as a for most transhipment both in and out bound.
transhipment port.
This potentially put Salalah in direct competition to
Owing to its depth the port can Lamu. However, Kenya must take a bolder step to
accommodate the big container market the port so that scheduled cargo are directed to
ship. Small ships have now started Lamu.
calling into the Lamu port for
onwards transhipment to other ports The second and bigger plan is utilization of the port is
of the world. for cargos headed to the Southern part of Ethiopia and
This has many benefits mainly South Sudan again the route will be fully utilized once
proximity to transhipment port. So the roads and rail connecting the two countries are
the containers move much faster. developed.
Secondly, they avoid the time to get
to Salalah Port in Oman. Anthony Kariuki . GBS Africa

CONCLUSION

“For the continent to be fully integrated and for the vision of the Africa Free
Continental trade agreement to be fully achieved, we must invest in Africa’s
logistics sector, this will facilitate ease of movement of goods and services. It is
therefore important to have predictable policies to attract investments in this
sector’’.

Agnes Gitau, Managing Partner of GBS Africa

2022 | REPORT 1