Mombasa CFS owners to move some of their operations to Nairobi

A container freight station in Mombasa. PHOTO | LABAN WALLOGA | NMG 

By JAMES KARIUKI

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Summary

• The ICD is currently under expansion to hold 450,000 twenty-foot equivalent units (TEUs) annually, up from the current 180,000 TEUs.
• James Rarieya, the CFSA chairman, said the ability of the standard gauge railway (SGR) to move 22 million tonnes of cargo annually has created vast opportunities for CFS operators to expand operations beyond Mombasa.
• SGR locomotives are set to haul 4,000 tonnes of cargo in 216 containers daily at a cheaper cost and time than trucks.

Mombasa-based container freight stations (CFS) operators plan to move part of their operations to Nairobi as fast trains prepare to start hauling cargo in December.

Through their national trade lobby, the Container Freight Stations Association (CFSA), the customs-bonded storage facilities are looking for land within six-kilometres of the Nairobi Inland Container Depot (ICD).

The ICD is currently under expansion to hold 450,000 twenty-foot equivalent units (TEUs) annually, up from the current 180,000 TEUs.

James Rarieya, the CFSA chairman, said the ability of the standard gauge railway (SGR) to move 22 million tonnes of cargo annually has created vast opportunities for CFS operators to expand operations beyond Mombasa.

READ: Launch of SGR cargo train service put off to December

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“Forty per cent of cargo has been reserved for SGR while the rest will be handled by CFS operators in Mombasa. We could leverage on SGR’s efficiency to transport our goods to Nairobi stations, thereby creating a new revenue source,” said Mr Rarieya.

The Nairobi CFS will mainly handle imported raw materials and industrial inputs, the lobby said. “Factories that rely on imported materials will continue running smoothly as the stock will be available at the CFS stations, which are well versed on clearance rules,” he said.

The stations started operating in 2007 to ease congestion at Mombasa port, which saw ships charged for delayed cargo deliveries.

The costs incurred were later passed on to consumers. With efficient trains, there has been concern that the facilities may become irrelevant. Mr Rarieya said they want fair play to enable importers decide on who to handle their goods.

“With most CFS operators charging less on storage, business is made on volumes moved from port to customer premises. We have appreciated that the customer is king and this has helped us remain in business,” he said.

SGR locomotives are set to haul 4,000 tonnes of cargo in 216 containers daily at a cheaper cost and time than trucks. While trucks take five days to cover the 472 kilometres from Mombasa to Nairobi, the trains will take eight hours.

The fast trains will help decongest Mombasa port thereby hastening offloading of cargo from ships for onward transportation to Nairobi and other inland destinations.