Govt downplays job losses in Mombasa over SGR cargo trains

Transport PS Paul Maringa. FILE PHOTO | NMG 

By MOHAMED AHMED

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Summary

• CFSs and transport firms in Mombasa have started laying off workers following lack of cargo.
• More than 500 truck drivers and 100 workers in CFSs have been declared redundant.
• Some seven trains ferrying 752 containers leave the port daily for Nairobi. About 1,300 containers arrive at the port every day.
• In the last two months, he said, the port has handle at least 17,000 containers.

The government has asked container freight stations to set base in Nairobi while downplaying reports that a rise in railway cargo transport had caused job losses in Mombasa

Transport Principal Secretary Paul Maringa said ferrying of cargo through the standard gauge railway offered more gains to the economy, ensured efficiency at the port and saved roads from overloaded trucks.

“We cannot continue having conversation about Mombasa and Nairobi. We must look at the bigger picture. We are encouraging the CFS owners to come and open their stations in Nairobi and other parts of the country as well as the SGR will keep on moving as part of the larger milestone,” Prof Maringa told this writer on phone.

Some seven trains ferrying 752 containers leave the port daily for Nairobi. About 1,300 containers arrive at the port every day

Asked whether players in the sector should concentrate in investing in Nairobi, the PS added that: “We should not lose the direction. Let’s look at things holistically. We have been able to attract more business at the port which is benefiting Mombasa and the country at large.”

He said following the efficiency in movement of cargo, the Kenya Ports Authority has increased capacity to hold more cargo, boosting the economy.

A ship that used to take up to 12 days to clear cargo at the port, he said, is now taking a day and a half.

“And this is because of the speed that the SGR has been able to transport cargo to the Inland Container Depot in Nairobi compared to the trucks.

"We have added handling capacity at the port and that is beneficial to all of us,” he said.

17,000 containers

In the last two months, he said, the port has handle at least 17,000 containers.

Prof Maringa said the trains could not ferry all the goods at the port, leaving some for road haulage.

He said by using the train line, the government has saved money for other development projects.

“The accident cases have also gone down. Those are the silent benefits of the project as Kenyans lives are more important than the businesses we are doing,” he said adding that only one accident involving cargo trucks has been reported along the Mombasa-Nairobi highway since SGR started transporting cargo.

The PS said the extension of SGR line to berths at the port for ferrying of conventional cargo to Nairobi will be complete by August.

Hundreds of CFSs workers and drivers in Mombasa have been rendered jobless as the goods transported by train through the SGR increase.
The Kenya Ports Authority (KPA) issued a directive in June that containers destined to Mombasa for local clearance would not be allowed to be nominated by clients or endorsement of bill of lading to any CFS.

“The nomination shall be done by KPA based on vessel rotation, volumes, and individual CFS capacity; you are required to inform your clients in your various ports of loading accordingly,” said KPA in the June statement.

CFSs and transport firms in Mombasa have started laying off workers following lack of cargo.

More than 500 truck drivers and 100 workers in CFSs have been declared redundant.

CFS Association has already moved to court to challenge the directive and the case is pending.

“That directive has totally affected our business. It is tremendously affected. As we speak, I have sacked 30 people from the company.

"Some have even received their sacking letters today,” said a senior manager at one of the CFSs in Mombasa who asked not to be named.

He said the CFS receives very little cargo that can no longer sustain its business.

“The work that we used to do has now been transferred to Nairobi and we can no longer pay our staff. All the CFSs in Mombasa are facing a bleak future. There is no future in this business anymore,” he said.

Unnecessary costs

Apex Steel company assistant manager Daniel Ndege said the company is also feeling the heat of the directive as it is incurring unnecessary costs.

“The issue is that they are trying to force us to transport the containers to Nairobi and for us we do nominations on our side. If we do nominations, we have the full mandate to nominate the CFS we need as importers in Kenya.
"So if you force us to track the containers to Nairobi and we are based in Mombasa, then definitely you are trying to force us to do things and incurring double costs. A container reaching Nairobi and returning it to Mombasa is a loss,” he said.

Mr Ndege said SGR should engage in competitive business and not stifle competitors.