Lamu Port’s first berth that is under construction. Work is at 72 per
cent complete. But where will the cargo hauled head to? What roads will
it use, given that this kind of infrastructure is yet to start? FILE
PHOTO | NMG
Construction of Lamu Port under the ambitious Sh2.5 trillion
Lamu Port-South Sudan-Ethiopia Transport (Lapsset) corridor project is
on course, with the first ship expected to dock in November.
But
recent changes in the regional political landscape, especially within
the Horn of Africa, are
casting doubts on the viability of the mega initiative, given that Ethiopia — the project’s biggest client — has made peace with Eritrea and has also invested heavily in several ports in Djibouti and Somaliland.
casting doubts on the viability of the mega initiative, given that Ethiopia — the project’s biggest client — has made peace with Eritrea and has also invested heavily in several ports in Djibouti and Somaliland.
So where will the cargo
hauled from this maiden landing in November head to? What roads will it
use, given that this kind of infrastructure is yet to start? What about
the persistent security nightmare in the areas the roads traverse en
route to South Sudan and Moyale?
Last week, the contractor finished construction of a bollard mounting for the first of the 32 expected berths.
A
mooring bollard is a vital component in a berth, as it is the anchor
point for mooring lines to be fixed in order to secure vessels.
“We
have kicked off the first stage of crane rail welding works at the
first berth this week and we are optimistic that the first berth will be
complete and functional by June,” Lapsset Corridor Development
Authority (LCDA) chief executive Silvester Kasuku said.
Poor alternative
It is Addis’
non-committal posture to the project that raises queries over its
viability, as it was seen as the key client. The other targeted client —
South Sudan — has been embroiled in political upheaval that has left
its economy in tatters, making it a poor alternative.
So
whom will this project serve? To entice Ethiopia that the Lamu port was
a bankable project, Kenya was expected to set aside land to enable the
country to set up a logistics facility at the port, in the clearest
indication that the nation was eyeing the Kenyan facility for its import
and export activities.
Early this month, President
Uhuru Kenyatta was in Ethiopia to seek reassurance about the country’s
commitment to the project, a key indicator that Kenya might not be
sitting pretty with the economic reality of this project setting in.
“In
my mind, the Lapsset project has great promise of transforming our
countries and improving the living conditions of our people. Kenya and
Ethiopia resolved to partner in developing first-class infrastructure
projects connecting our great nations and the continent. By this I have
in mind the Lapsset project which Kenya is, for sure, still fully
committed to,” President Kenyatta said.
First berth
Currently,
the construction phase for the first berth is 72 per cent complete,
with the other two berths also under construction. The whole project is
62 per cent complete, Mr Kasuku said.
“The other two
berths will be ready by December 2020. I can assure the country that the
first ship will make its maiden docking at the Lamu Port by November
this year. We believe by then, we will have fully equipped the first
berth with the required infrastructure for shipping and docking
activities,” said Mr Kasuku.
At
completion, the three berths will cost the government Sh48 billion,
which will be inclusive of construction of the three terminals;
preparation of the turning bay, dredging and reclamation works as well
as navigation of sea waves.
This is, however, yet to be
done, with sources noting that discussions between the two parties are
still ongoing, with no commitment or possible timelines.
For
starters, Ethiopia has been pushing for an economic union for the Horn
of Africa. If successful, that would see it, together with Kenya and
Djibouti, work towards joint investments and ownerships in each other’s
infrastructural projects.
Competing interests
However,
its operationalisation has been a challenge, given that Djibouti and
Nairobi have competing interests on the Indian Ocean port business.
For
instance, in 2017, Djibouti handled 55 per cent (4 million tonnes) of
the transshipments headed to Mombasa, Dar and other Indian Ocean ports
as compared with 200,000 tonnes that Mombasa port handled to other
ports. This leaves little business for the new Lamu port, given that it
is being fashioned as a transshipment port to the Horn of Africa.
Ethiopia
has also been on a roll, acquiring stakes in Djibouti’s Port of
Doraleh, Port of Djibouti, Khartoum’s largest seaport — Port Sudan — its
$80 million investment for a 19 per cent stake in Somaliland’s Port of
Berbera, and its recent announcement that it is also seeking a stake in
Eritrea Port. This leaves the Lamu port at an exposed position,
explaining Nairobi’s unease.
Mr Kasuku, however, said
that the Ethiopia and Eritrea peace deal will have no impact on the
project, adding that Eritrea and Djibout ports handle North of Addis
Ababa; while the Lamu Port will be handling the entire southern
Ethiopia, which has about 50 million people.
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