Kenya launches China-upgraded inland container depot

Agricultural inputs will also enjoy a lower rate at a minimum cost of Ksh16,500 ($159) for a minimum distance of 200 kilometers and a maximum cost of Ksh 41,250 ($398) for the full distance between the port of Mombasa and the inland container depot.

This investment is in line with other Vision 2030 projects and the wider regional plan under the Northern Corridor integrated projects. The new inland container depot's capacity has been expanded from 180,000 tons to 450,000 tons.

Uhuru said the commissioning of the new depot is expected to pass the benefits to both importers and exporters of cargo.

The transport and infrastructure Cabinet Secretary Dr. James Macharia said the government is committed to increasing efficiency within the local and regional transport ecosystem.

Macharia said the Mombasa port is expected to see a 7.6 percent annual increase in cargo, so far it has recorded a 25 percent increase in cargo between 2012 and 2016, with tonnage increasing from 21.9 million tons to 27.4 million tons.

“This means that we have to clear cargo faster and more efficiently. The SGR will enable us to evacuate Nairobi-bound cargo directly from the port for clearance at the inland container deport, enabling the port to handle more cargo,” he said.

According to Kenya Railways Managing Director Atanas Maina, exporters of various commodities are the biggest gainers under the cargo tariff.

“Motor-vehicle importers will incur a cost of ksh3,300 ($32) to transport their vehicles from the port of Mombasa to Nairobi, while transit vehicles will be ferried at a cost of Ksh 2,640 ($25).

The maximum weight allowed on a 20-foot container is 30 tons, while the maximum allowed weight on a 40-foot container is 35 tons. The costs are, however, exclusive of handling costs and VAT. All goods destined for the local market will be subjected to 16 percent VAT, while transit goods and those being exported from Kenya will be zero rated.

Handlers of large cargo volumes between 4,000 and 40,000 tons will enjoy discounts between 5 percent and 20 percent. The minimum chargeable weight for non-containerized cargo is 70 tons, while that of light traffic such as foodstuffs, steel, animal feed and paper is set at 43 tons per wagon.

Earlier in the day, Uhuru made a scheduled visit to the construction site of the second phase of the SGR, where he inspected one of the three tunnels under construction. He was accompanied by some of his cabinet secretaries.

The tunnels are 7.147 kilometer long, altogether accounting for 6 percent of the total length of the project. It is estimated to cost $179 million. The construction work is being undertaken by the China Roads and Bridges Co (CRBC), which worked on the Mombasa-Nairobi section. Known as phase 2A, the 120-km Nairobi-Naivasha route was officially launched by the president in October.

Lucie Morangi contributed to this story. lucymorangi@chinadaily.com.cn

edithmutethya@chinadaily.com.cn