Mombasa Port Records 14% Cargo Growth: A Boon for Regional Trade and Logistics
The Port of Mombasa has recorded 14% more cargo from January to October 2024 with Uganda being the biggest contributor. These numbers were released by KPA CEC.
Key Pointers:
- From January to October this year, Mombasa port recorded a 14% increase in the volumes of cargo handled with total cargo processed achieving 33.78 million tons 29.66 million tons over same period last year.
- Uganda has risen to become the key driver of the growth.
- Sectors like agriculture, manufacturing and construction drove a 21.1% increase in containerized cargo.
The trend looks good for the passenger logistics and supply chain businesses. In this instance third-party logistics (3PL) players companies are expected to benefit from increasing throughput. Considering the increase of 20.2% in the transit traffic this year, this provides a chance to enhance their services and engage with more importers and exporters using Mombasa. The Kenya Ports Authority (KPA) is making investments in infrastructure improvements comprising new berths owing to rising container traffic which will increase to nearly 2 million TEUs by year-end. A rise in capacity and efficiency will make the port an increasingly attractive destination for logistics operations for regional trade.
Countdown to Compliance: KEBS Deadline Looms for Pre-2018 Car Imports in Kenya
The Kenya Bureau of Standards (KEBS) has provided a deadline of December 31, 2024, for the arrival of all imported second-hand cars manufactured in 2017 or earlier in Kenya. This directive imposes the 8-year age limit on car imports in the country, and cars beyond this limit cannot be cleared. The action reflects a push to improve adherence to quality and environmental norms, highlighting the need to plan shipment on time.
The regulations are applicable to all importers of used motor vehicles, including returning residents, diplomatic personnel, and the general public. Additionally, the age limit rule specifies that the gap between a vehicle’s year of manufacture and its year of registration must be one year or less.
This indicates that importers feel increased urgency to prevent late shipments, and will likely impact supply chain flows over the coming months.
Solar Boom in Kenya: 355 New Firms Join the Renewable Energy Revolution
Kenya’s growth in solar was evident when the Energy and Petroleum Regulatory Authority (EPRA) issued production permits to 355 solar contractors, manufacturers, and importers in the year to June 2024. The hike in electricity prices has worsened the plight of consumers, most of whom are turning to electric solar PV (photovoltaic) panels as a response. Since 2018, the number of registered solar companies has jumped from 700 to 1,603. The number of licensed PV technicians has also increased significantly. Companies importing components, locally assembling them, or providing Engineering, Procurement, and Construction (EPC) services can seize a huge opportunity in this market.
FFS has been engaged in discussions with a few solar companies about partnering as their 3PL service provider of choice over the last year. More and more manufacturing plants are relying on captive power generation—mainly solar and bioenergy. This is causing a greater need for good logistics to move any solar component. As of June 2024, the total captive power capacity has accrued to a lifetime high of 532.6 MW. The smooth streamlining of logistics is going to be very crucial for the timely delivery and installation of all the technologies. With this, FFS will be well-positioned to offer significant collaborations in this niche area in the near future.
