The role of Container Freight Stations in Enhancing Port Efficiency James Rarieya

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CONTAINER FREIGHT STATIONS AND ICDS CFS are not a new phenomenon in the maritime industry!

 In shipping glossary terms a container freight station represents an area designated by a carrier to load or unload goods from containers.

 In the EACMA, a CFS is referred to as an Internal Container Depot!

 In Mombasa, for the port community, a CFS represents any facility that can act as a secondary customs clearance point for cargo some located within the port (BP sheds) and others located some distance away from the port.

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CONTAINER FREIGHT STATIONS AND ICDS Ideally all these facilities provide relief to port operations away from the ship/land interface area hence the logic that they should be removed some distance from the quay and temporary stacking areas . The correct terminology should therefore be Inland Container Depots (ICDs).

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CONTAINER FREIGHT STATIONS AND ICDS

Container Terminal Mixed Cargo Terminals Awanad Logistics Interpel Investments Ltd Compact Freight Systems Ltd Focus CFS Consolbase 1 MCT Kipevu ICD Mitchel Cotts Ltd Motor Vehicle Terminals African Liner Terminal Boss Freight Terminal Consolbase 2 Makupa Transit Shed Portside Freight Terminal MICT

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CONDITIONS FOR OPERATING A CFS KENYA REVENUE AUTHORITY Conditions as per Gazette notice 11215 of 24 th September 2010  Obtain prior approval from CSD prior to embarking on development  Minimum area of 2.5 hectares  Generate no less than kshs100 million in customs revenue  Rail siding  Perimeter wall >3m high, surveillance cameras, parking area etc 5

CONDITIONS FOR OPERATING A CFS KENYA PORTS AUTHORITY Licensing conditions as per SLA terms  Must be duly gazetted by KRA  Minimum operational handling equipment 2 reach stackers  Must have in place insurance cover that  Properly paved area for stacking full boxes  Adequate number of shunting trucks 6

EVOLUTION OF KPA LICENCED CFS’s

7 8 9 10 11 1 2 3 4 5 6 2002

BP1-WFP BP2-MCOT BP3-RGL

2007

CBL MCT

2008

CBL MCT

2009

CBL MCT COMPACT INTERPEL

2010

CBL MCT COMPACT INTERPEL PORT SIDE MITCHEL COTTS MITCHEL COTTS MITCHEL COTTS AWANAD

2011

CBL MCT COMPACT INTERPEL PORT SIDE AWANAD FOCUS KIPEVU MAKUPA

2012

CBL MCT COMPACT INTERPEL PORT SIDE AWANAD FOCUS KIPEVU MAKUPA MICT 7

FUNCTIONS  Provide port with additional capacity for cargo stacking  Platform for cargo inspection by various cargo interveners  Tax collection point for the Customs Service Department  Storage area for un-cleared goods The revised KPA stacking capacity is 18000 teus whilst the combined CFS stacking capacity is 27,340 teus 8

PORT CAPACITY Port container handling capacity is determined by :  Number of available ground slots( TGS)  Ideal stacking height  Container dwell time Annual Thro’put = TGSX IDEAL STACK HEIGHTX365 DAYS DWELL TIME 9

PORT CAPACITY Annual Thro’put 2012 =5142 X 3.5X365 = 738,079 teus 8.9

The port as at the end of October has handled 751,064 teus which implies a thro put of 901,277 teus by end of the year!!

To date the volume channeled through the CFS is 157,047 teus. This represents :  61% of the local import cargo  43% of the total import traffic in the port of Mombasa 10

PORT PERFORMANCE INDICATORS

Indicator Throuput (‘000 TEU) Gross Shipping Waiting days Container Dwell Time ( days) Ship Turnaround Time Gross moves/day 2007 585 0.43

6.1

3.7

289 2008 615 0.55

12.1

4.9

293 2009 618 0.23

6.0

3.6

320 2010 695 0.50

5.6

4.0

330 2011 770 1.11

6.5

4.4

309 2012 895 0.33

6.7

4.2

456

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CFS IMPACT ON PORT EFFICIENCY Key performance indicators have shown a positive trend since 2007 and have helped to stabilize port operations.

2012 is a unique year considering all the development activity that was undertaken by the port that had the effect of reducing the operating capacity.

Port still not utilizing the available CFS capacity. There more scope to use fully the existing CFS capacity.

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MOMBASA CONTAINER TERMINAL 13

MOMBASA CONTAINER TERMINAL  Pioneer CFS operator (formerly SDV Transami CFS)  Fully owned subsidiary of Bollore Africa Logistics the leading integrated logistics network and leading operator in public private port partnerships in Africa  Investment M€ 7 14

Thank You

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