KENYA – The Kenya Ports Authority (KPA) has introduced a fast-track mechanism at the Port of Mombasa to enable faster handling of perishable fresh produce and cut flowers into the export markets, as Kenya looks for ways to boost the utilisation of sea freight for its top exports earning sector.
In a notice by the Managing Director Captain William K. Ruto, KPA advised the public that it has operationalised the use of priority lanes at all gates at the Port, and that the Authority will continue to give priority to fresh produce exports, to improve the region’s balance of trade.
“In line with our continued endeavour to improve customer experience, Kenya Ports Authority (KPA), wishes to inform exporters of fresh produce (reefer cargo) through the Port of Mombasa that in line with our trade facilitation initiatives, priority lanes are available and operational at the Port of Mombasa to facilitate the delivery of reefer exports, this includes access to port scanners,” said Captain Ruto.
Kenya seeks green, cheaper freight solutions
The operationalization of the fast-track lanes at the Port of Mombasa follows recent initiatives by the government and various stakeholders to enable Kenya shift 50 percent of its horticultural exports from air freight to sea freight, to reduce costs, enhance competitiveness and boost its green credentials.
In May 2023, under the leadership of the Netherlands, supported by Denmark and the European Union (EU), TradeMark Africa (TMA) with the Kenyan Government and private sector players in the sector, kicked off plans aimed at driving the country’s shift to sea freight to fasten the adoption of the greener and more sustainable transportation of Kenya’s horticultural exports.
A study released by TMA in 2021 highlighted a number of benefits should Kenya adopt the sea freight option for its horticulture sector.
It showed that with flower producing countries in South America growing their sea freight exports, they might gain a competitive advantage over Kenya on certain markets (lower costs for transport) or certain products (like heavy carnations, that attract a bigger cost saving when sea freighted).
It further added that future national investments in sea freight would safeguard and potentially increase existing employment in the fresh produce and cut flower sector in Kenya, while the expansion of sea freight could also increase exports to the Middle and Far East, including China and Singapore.
Sea freight, compared to air freight, could cut emissions by 85%, a large environmental benefit that would enable the country to cut its emissions and meet the needs of climate sensitive buyers and consumers in Europe.
The study noted that to achieve the potential of the Kenyan sea freight industry and increase competitiveness, the government should resolve the inefficient and unreliable port operations in Mombasa,which result in delays. Further, it recommended that the country should ensure reliability of sea freight and reduce costs for in-land freight to the port at Mombasa, which is expensive.
Specifically, the study advised the Kenyan government to work across departments to make sea freight of agricultural exports more efficient and bring down costs, including a complete overhaul of the Mombasa port with sufficient berths, good management and practices suitable for perishable goods. Further, the authorities should support the SGR to carry reefer containers.
It also added that Kenya should invest in improved port operations in Mombasa; create dedicated procedures for perishables at the port; facilitate consolidation centers in Naivasha, Nakuru and Mt. Kenya,close to the production regions for flowers and avocados, and to also identify other locations in the country for these facilities.
The government should also ensure that its departments such as KRA, KPA and KEPHIS to work together to facilitate trade, while supporting quality standards for avocados to enhance Kenya’s reputation for avocado quality.
Kenya’s horticulture potential
Horticulture is one of the leading export earners for Kenya, generating KSH. 152.3 billion in earnings in 2022 and historically, air freight has been regarded as a faster and more reliable alternative in the shipment of fresh produce and cut flowers in Kenya.
However, it is more expensive, detrimental to the environment and transports much less in volumes and value compared to sea freight. Studies show that air freight constitutes about 2.5% of global carbon emissions, despite ferrying just 1% of total global cargo. In contrast, sea freight produces about 2.9% of carbon emissions and accounts for over 80% of global trade by volume and 70% by value.
“The sector is ripe for an urgent and radical transition from air to sea freight, more than ever as a step in the right direction in the clamour for climate change action. Our support is directly related to the EU Green Deal which aims, among other things, to make the economy and trade more sustainable and part of the EU Global Gateway. A more sustainable export of Kenya’s horticulture goods is essential to ensure the growth of the sector in the future and all jobs and livelihoods that depend on it,” Henriette Geiger, the European Union Ambassador to Kenya said.
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