today's Pick
Commodity prices likely to rise as Kenya hikes port fees
Publish Date: Oct 07, 2012
.
  • mail
  • img

By Samuel Sanya

Ugandans are likely to experience higher commodity prices for most imports starting December, if proposals to increase charges at the Kenyan port of Mombasa are enacted.

Officials have pointed to high inflation, and tough economic conditions for the proposed increments, adding that a regular review of rates is healthy.

According to the proposal, port and harbour dues are set to rise to $13 per 100 gross tonnes (GT) from $12, minimum port and harbour dues have been shifted to $150 from $100 per operation.

The dues of securing a ship at the Mombasa port (mooring) will rise by $0.3 to $3.3per 100GT per operation subject to a revised minimum of $200 from $150.

Similar increases have been proposed for security and marine services, pilotage and tug services, dockage, stevedoring containers, shore handling, and wharfage services.

An analysis by the NewVision indicates that a single 100-tonne, 20-metre container handled at the Mombasa port could incur an additional $22.34 before it leaves for Uganda.

The cost will be passed on to consumers through higher commodity prices and higher contract estimates.

Charles Kareba, a board member of the Uganda Shipper’s Council, queried the decision by the KPA to revise rates without consulting the Ugandan freight and logistics industry.

“Why should the KPA continue to collect dues for wharfage, and handle cargo, yet KPA are the landlord at the Mombasa port. This tender should be given to private players to enhance competition and bring down rates,” he observed.

Kareba made the observations at a stakeholders’ dialogue with KPA bosses at the Imperial Royale Hotel in Kampala.

Stephen Magera, the assistant commissioner for trade at the Uganda Revenue Authority noted that quantity discounts should be awarded to logistics firms and individuals at the Mombasa port.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
A judge issued an arrest warrant Wednesday for Guatemala''s President Otto Perez, who faces prosecution for allegedly masterminding a huge fraud scheme, a prosecutor said, a day after he was stripped of his immunity....
Besigye returns as FDC flagbearer
Kiiza Besigye was late Wednesday declared the party’s flagbearer for the 2016 presidential elections....
Politicians in a young democracy
A lot is being said about elections lately in the run up to the 2016 polls. From the talk it is clear both the opposition and the ruling party want free and fair elections to advance democracy....
Congolese rebel Ntaganda pleads not guilty at ICC trial
Harrowing pictures of bodies littering a banana plantation Wednesday marked the start of the trial of warlord Bosco Ntaganda, accused of running a campaign of terror in eastern Democratic Republic of Congo....
Muntu v Besigye: Who will take the day?
The Forum for Democratic Change (FDC) delegates'' conference is underway at Mandela National Stadium, Namboole....
FDC delegates
The Forum for Democratic Change (FDC) delegates'' conference is underway at Mandela National Stadium, Namboole. Top on agenda is the election of a presidential flag bearer for 2016 polls....
Are poor parliamentary debates a result of removal of school debates?
Yes
No
Can't Say
follow us
subscribe to our news letter