The Nairobi Inland Container Depot. FILE photo | nmg
Shipping lines have joined the government campaign to transfer more cargo from the roads to the standard gauge railway (SGR).
They
are increasingly wooing importers to use a model where cargo terminates
at the Nairobi Inland Container Depot as opposed to the port of
Mombasa.
Technically known as through bill of lading
(TBL), the model has been in use but it is expected to go up after the
upgrade of the ICD since it benefits both the shippers and importers,
especially on return of empty containers.
After a series of talks with the shippers, the Kenya Ports Authority (KPA) eventually got their nod.
“We have been holding talks with shipping lines and they have
agreed to aggressively market the through bill of lading model to
importers for cargo destined to Nairobi. This will help us in ensuring
that more containers are loaded onto the trains,” the KPA operations
general manager William Ruto said on Tuesday.
“This is a
positive step towards increasing cargo transported using the trains.
The challenge was on return of empty containers but if the destination
of the goods is listed as the ICD, this will solve the problem,” Mr Ruto
said in a telephone interview.
The agreement between
the shipping line and the importer using the bill of lading model is
that the container deposits will be refunded once the equipment is
returned to the ICD, he added.
While under the bill of
lading importers designate cargo directly to the Nairobi ICD, the model
that is widely used today is the merchant haulage where goods are off
loaded at the Mombasa port.
A bill of lading is a legal document that details type, quantity and destination of goods carried.
Moving
empty containers on SGR to designated yards has no extra costs to the
importers and has no logistical nightmares for the shippers who have to
ensure that these empties are not damaged.
Importers
and agents cited demands by shipping lines that empty containers be
returned to designated yards in Mombasa as a hindrance to transport
their goods to the 450,000 twenty-foot equivalent unit (teus) capacity
ICD, upgraded at a cost of Sh23 billion. The Nairobi ICD was expanded
from a capacity of 180,000 teus.
Shipping lines charge
$200 (Sh20,000) and $400 (Sh40,000) as deposit for the 20-foot and
40-foot containers respectively and refunded when the containers are
returned within 11 days after arrival of the vessel. A fine is imposed
beyond the deadline and damages attract fees.
The lines
had insisted the containers must be returned to the yards, presenting
logistical nightmare for Kenya Railways which could only drop them at
the port with importers incurring a cost of Sh10,000 to transfer each
container to the designated yards.
Kenya Ship Agents
Association (KSSA) executive officer Juma Tellah said the rates charged
on the TBL mode include freight, rail haulage and cargo clearances.
“Shipping lines encourage importers with cargo destined to Nairobi to
use this model,” he said.
On Monday, the KPA said volumes of cargo at the ICD had gone up, with the facility receiving 9,735 containers since January.
They
comprised of 7,248 imports, 1,151 exports and 1,336 empty containers.
The ICD is now receiving 324 containers daily up from 108 in January,
according to the authority.
Mr Ruto said even before
importers embrace the bill of lading model, the KPA had set aside a yard
where empty containers would be stored.
“Some shipping
lines have also agreed to liaise with their customers on how the
containers will be returned and damage assessed,” he added.
Government
departments and agencies have been directed to transport imports to
Nairobi via the SGR trains as the government moved to ensure that the
Sh327 billion was put to good use.
In an attempt to woo
freighters to use the trains, Kenya Railways lowered haulage rates to a
flat fee of Sh35,000 for a 20-foot container and Sh40,000 for a 40-foot
container from Mombasa to the ICD.
Local warehouses have said they will ensure that there was smooth flow of cargo via the SGR.
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