The Port of Mombasa shrugged off challenges of new taxation and re-inspection of goods to record a 70 per cent jump in net profits to May this year.
The port may yet receive a boost after Treasury Cabinet Secretary Henry Rotich removed a 20 per cent demurrage fee and recalled a multi-agency team sent to re-inspect cargo in pursuit of tax evaders.
“Government will streamline the process of Pre-Verification of Conformity (PVOC), so that our business community stops suffering demurrage charges and other costs while clearing their goods at the point of entry,” Mr Rotich said during his Budget speech.
According to the Kenya Ports Authority, the East African gateway made Sh15.8 billion from Sh9.3 billion last year with a Sh10 billion jump in revenues.
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The Northern Corridor Transit Transport Coordination Authority had indicated that linking of the Nairobi inland port to the Standard Gauge Railway had helped decongest Mombasa port by moving almost 10 times the number of containers daily.
Mombasa’s ship turnaround time improved from 102 hours in 2015 to 70 hours in September 2018 against a set target of 72 hours.
This has been attributed to the construction of Berth 19, second container terminal and an offshore single buoy mooring. The ship’s waiting time recorded a low of 12.9 hours in July and September and high of 17.1 hours in August 2018.
Rotich said once the PVOC has been done at the point of export and information relayed to the Customs and Standards teams, the same goods should not be subjected to further inspection unless there is prior intelligence on non-compliance.
Treasury’s recent bold moves at the port seem to have put Rotich in the firing line of importers and port officials.
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Last year, the CS said while Mombasa serves over 80 ports globally, revenues from global shippers and other service providers have always floated away.
Charges by shipping lines on delays to load or offload cargo at Mombasa port will now be subject to taxes, which will be deducted by the owner of the cargo.
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