Great Lakes wins Tororo inland port bid
KENYA’S Great Lakes Company has won the bid for the Tororo Inland Port for the second time.
By Mikaili Sseppuya
KENYA’S Great Lakes Company has won the bid for the Tororo Inland Port for the second time.
The firm, which was chosen by the trade ministry, will build, own and operate the port.
When Great Lakes won the bid for the first time, it was cancelled by the Court of Appeal in a case brought up by the Uganda Inland Port Company, which had earlier been granted a licence to put up a port in Namanve. The Court said the trade ministry had not followed the Public Procurement and Disposal of Public Assets Authority (PPDA) rules.
Although the Kenyan firm beat Maersk, Kenfreight, Spedag and Mukwano this time, industry sources said some of those companies had asked the ministry’s permanent secretary to review the process, claiming it was not fair.
“The bidding instructions specified that bidders must have over 200 hectares within a short distance from the border. That was tailored for Great Lakes, which had already bought over 200 hectares in the area,†they said.
By Tuesday last week, they had not heard from the permanent secretary and said if the 10 mandatory days from February 14 passed without a reaction, they would appeal to the PPDA.
Also, freight forwarding companies had complained about the port, saying it was going to become a monopoly, would stifle business and increase the cost of doing business in the region.
Meriam Sebunya, the chairperson of Uganda Freight Forwarders, said bringing back monopolies in a liberated era was a throwback that would be sending the wrong signals to the dozen or so firms that had invested in inland container depots (ICDs).
“Are we going to tell them to close up and go after they have each invested over $5m (about sh9.85b) in the ICDs? Why not follow the telecommunications model where there is competition on equal footing for all mobile firms, which has led to cheaper and more efficient firms than the original monopoly? What do they fear?†she asked.
Sebunya said monopolies resulted into messes like expensive power as well as Rift Valley Railways type of problems, which are difficult to solve.
They also said a ministerial sub-committee on the port had been against it although the former trade and industry minister, Janat Mukwaya, brought out a minority report supporting the port.
KENYA’S Great Lakes Company has won the bid for the Tororo Inland Port for the second time.
The firm, which was chosen by the trade ministry, will build, own and operate the port.
When Great Lakes won the bid for the first time, it was cancelled by the Court of Appeal in a case brought up by the Uganda Inland Port Company, which had earlier been granted a licence to put up a port in Namanve. The Court said the trade ministry had not followed the Public Procurement and Disposal of Public Assets Authority (PPDA) rules.
Although the Kenyan firm beat Maersk, Kenfreight, Spedag and Mukwano this time, industry sources said some of those companies had asked the ministry’s permanent secretary to review the process, claiming it was not fair.
“The bidding instructions specified that bidders must have over 200 hectares within a short distance from the border. That was tailored for Great Lakes, which had already bought over 200 hectares in the area,†they said.
By Tuesday last week, they had not heard from the permanent secretary and said if the 10 mandatory days from February 14 passed without a reaction, they would appeal to the PPDA.
Also, freight forwarding companies had complained about the port, saying it was going to become a monopoly, would stifle business and increase the cost of doing business in the region.
Meriam Sebunya, the chairperson of Uganda Freight Forwarders, said bringing back monopolies in a liberated era was a throwback that would be sending the wrong signals to the dozen or so firms that had invested in inland container depots (ICDs).
“Are we going to tell them to close up and go after they have each invested over $5m (about sh9.85b) in the ICDs? Why not follow the telecommunications model where there is competition on equal footing for all mobile firms, which has led to cheaper and more efficient firms than the original monopoly? What do they fear?†she asked.
Sebunya said monopolies resulted into messes like expensive power as well as Rift Valley Railways type of problems, which are difficult to solve.
They also said a ministerial sub-committee on the port had been against it although the former trade and industry minister, Janat Mukwaya, brought out a minority report supporting the port.