Illegal Port Charges Driving Business From Mombasa To Dar Es Salaam Port

Mombasa port users are concerned that rampant violation of maritime regulations by some shipping lines in collusion with port officials jeopardizes the port’s position as the primary gateway to East and Central Africa.

They claim that some shipping lines have implemented arbitrary charges without the approval of the Kenyan Maritime Authority (KMA), with some charging as much as $1,200 for a 40-foot container, which is more than Tanzania’s Dar es Salaam port charges.

This has been blamed for the continued flight of customers, which has resulted in a drop in cargo throughput in Kenya. Despite a marginal increase in container traffic to 1.45 million 20-foot equivalent units, cargo handled through Mombasa in 2022 fell by 1.9% to 33.9 million metric tonnes, down from 34.6 million tonnes in 2021.

Mombasa feeds the Northern Corridor, which runs 1,700 kilometers from the port through Kenya, Uganda, Rwanda, Burundi, and the eastern Democratic Republic of the Congo (DRC).

However, due to the punitive charges, the port risks losing out to the 1,300km Central Corridor, which runs from Dar es Salaam through Tanzania’s mainland to Rwanda, Burundi, Uganda, and eastern DR Congo.

According to documents obtained by The EastAfrican, major shipping lines charged equipment management fees, ex-border charges, late documentation per bill of lading fees, container cleaning fees, and import documentation fees totaling approximately $1,200 per 40-foot container, charges that the Tanzania Shipping Agencies Corporation revoked in its bid to make the Dar es Salaam port competitive.

A technical team has been formed to address a number of issues raised during a meeting in July this year between President William Ruto and logistics stakeholders.

Overcharging of importers and illegal levies between government agencies are among the 21 issues identified by President William Ruto as urgently needing to be addressed, which have contributed to the port’s unattractiveness to more users.

President Ruto directed that the issues be resolved by the end of the month, and stakeholders met in Mombasa this week to do so.