Transporter issue 16 web final

Transporter

The ISSUE 016

APRIL-JUNE 2012

A PUBLICATION OF THE KENYA TRANSPORTERS ASSOCIATION LIMITED

WEIGHBRIDGES REMOVAL:

Too Good

TO BE TRUE? The Transporter

NEWS KTA Limited elects new board of Directors

APR - JUN 2012

APR - JUN 2012

The Transporter

Content

Transporter

The

ISSUE 016

Apr - Jun 2012

IN THIS ISSUE KTA Briefs Mailbox In Bits Global Update

R COVE STORY

22 Too Good to be True?

WEIGHBRIDGES REMOVAL

TRADE

2 2 5 6

UPDATE

Going North: Kenya signs $743 road project State buys land for One-Stop Border posts to spur trade Advocacy training

INFRASTRUCTURE Construction of crucial EAC road begins

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Law amendment

LAUDED

AXLE LOAD HARMONIZATION:

Confusion reigns as EAC states differ on rules

FEATURE

Truck & Trailer

KTA NEWS

KTA gets new directors KTA steps up member visits High hopes for hybrid

Sustainable transport to get

$175 BILLION BOOST 20

LOGISTICS

Illegal fuel dens thrive as police watch Why engines don’t like dirty stories

INTERGRATION

New line to open regional power trade Sensitization of EAC residents key to intergration

MARITIME

CUSTOMS

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Mombasa Port targets trans-shipment business as cargo VOLUMES GROW

38

New rules on merchant ships

TO TAME PIRACY

INNOVATION

Israeli invention to prevent

CAR ACCIDENTS The Transporter

10 11

12

18

TECHNOLOGY

ENVIRONMENT

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26 28

30 32 33

34 35

RCTG to ease cargo movement

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Dongo Kundu: Project takes baby steps

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REGIONAL

Online system to ease movement of goods Corruption hindering regional trade Pictorial

46 50 54

APR - JUN 2012

Transporter

The

A publication of the Kenya Transporters Association Limited

BOARD OF DIRECTORS

Paul Maiyo Kiprop Bundotich Hassan Bayusuf Gulam Yusuf Iqbal A. Bayusuf Salad Awale Imran Pasta Zahir Kara Shakil Khan CEO

Jane Njeru ADVERTISING SALES CO-ORDINATOR

Julius Ngugi LAYOUT, DESIGN & EDITORIAL CONSULTANTS

Efman Communications info@efmancommunications.com

All inquiries: Tel: +254 Fax: +254 41 231 20 15 Mobile: +254 734 656 566

+254 715 679 263 Email: thetransporter@kta.co.ke The Transporter is published quaterly by the Kenya Transporters Association Limited (KTA Ltd).

The views expressed are those of the authors and do not represent the official view of the Kenya Transporters Association Limited (KTA Ltd). Neither KTA Ltd nor Efman Communications, or any other person acting on their behalf, may be held responsible for the use to which information contained in this publication may be put, or any errors, which, despite careful preparation and checking, may appear.

Individual advertisers are solely responsible for the content of advertising material which they submit to us, including ensuring that it complies with relevant legislation. We accept no responsibility for the content of advertising material, including, without limitation, any error, omission or inaccuracy therein.

APR - JUN 2012

Editorial

Word from the CEO

I

t gives me much pleasure to share with you the 16th Edition of The Transporter. This publication has further reinforced our commitment to offer you the most comprehensive, analytical, balanced and quality content.

Much has happened since the first publication of the year as evidenced by the numerous new developments in the Association. Key among them is the transformation of KTA into a Limited company.

This transformation has brought into play the need to fully embrace professionalism, efficiency, and target oriented service delivery. In view of this, we have endeavored to strengthen the Secretariat by enhancing its capacity to effectively partake in initiatives geared towards the benefit of our membership.

In June, we held a successful 9th Annual General Meeting. The meeting saw the election of new officials into the first Board of Directors. I wish to take this early opportunity to congratulate the new Board of Directors and reaffirm our commitment to render our unfaltering support as you proceed to execute this very honorous mandate.

In the past decade, KTA has invariably championed road safety initiatives with a view to reversing the negative trends on our roads and reducing the cost of business. However, such initiatives have encountered numerous challenges among them lack of follow up mechanism to ascertain the absolute impact of training, lack of a comprehensive training curriculum, uncoordinated training initiatives due to lack of regulatory framework etc. To further bolster our efforts, KTA has partnered with USAID-COMPETE to set up a Heavy Commercial Vehicle drivers training institute. This initiative encompasses development of a comprehensive training curriculum and the most technologically advanced training equipment.

While appreciating these developments, we remain fully aware of

the numerous challenges in the transport sector. The multi-faceted nature of these challenges calls for a quick adoption of comprehensive strategies that will lay emphasis on mitigation of barriers to trade.

Such strategies can only be possible if all stakeholders forge a united front.

Going forward, we intend to continue on a steady path to a full realization of our objectives as set out in our strategic plan. We shall progressively engage all stakeholders with a view to building on our gains and transcending the myriad challenges in the sector.

In conclusion, I would like to express our heartfelt gratitude to all our partners for their invaluable support. I own an immense debt of gratitude to the team that has worked tirelessly to come up with such an acclaimed publication. You have put KTA on a special pedestal with this project. Lastly to our readers, as always we have endeavored to produce well researched, high quality, captivating and enriching articles. I welcome you to enjoy the contents!

Jane Njeru, CEO Kenya Transporters Association Ltd. The Transporter

The Transporter

APR - JUN 2012

Update

Transporter

The

KTA BRIEFS KTA now in the OSBP Committee The Kenya Transporters Association (KTA) has now been included in the East African Community’s One Stop Border Post (OSBP) steering committee which is charged with the responsibility of ensuring that the borders are efficiently managed.

This is after the Association attended a OSBP meeting on May 14th and 15th which was held in Machakos, to discuss the initiative. The meeting was tasked with reviewing and agreeing on the OSBP’s terms of reference; take stock of the national and bilateral sub-committees as well as appoint lead agencies to spearhead them.

The concerns of the sectoral council on legal and judicial affairs on the OSBP Bill were also deliberated.

KTA presence in this crucial committee will enable members, who are key stakeholders at the borders as they transport most of the cargo, to be adequately represented.

COVER

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Governme WINDOW implemen nt fast tracks tation

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new FES ARTA bos s 4/5/2012

6:04:18

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The Transporter has continued to elicit a lot of interest from various industry players, as is evident from the email and letter sent to us: I am the editor of Fine Coffees Review Magazine, a regional coffee trade magazine offering industry insights into the market. Currently we are working on our 5th Issue and is published by the African Fine Coffees Association.

Mr. Steve Walls (COMPETE), shared this magazine with Mr. Kamau Samuel, our CEO, who in turn shared it with me. It truly makes a great read and as a key stakeholder in the region it is quite insightful. Please keep it up.

Mr Martin Maraka, African Fine Coffees Association (AFCA)

We congratulate you for the good magazine with resourceful articles.

I particularly found the story ‘Kenya taps new transit business with the LAPSSET Corridor’ interesting. The upcoming Lamu Port and the proposed transport infrastructure has enormous potential. We hope for visionary, corruption free leadership to make it a reality. We wish you the best in publishing TheTransporter.

A truck awaits to be weighed at a weighbridge.

HAVE YOUR SAY If you have any comments about The Transporter Magazine, then please send them to: thetransporter@kta.co.ke or Transporter Magazine, Sea View Plaza, Mama Ngina Drive. P.O Box 8850280100 Mombasa.

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Nicholas Simani, Principal Public Relations and Protocol at the Ethics and Anti- Corruption Commission,

The Transporter

advertise with us

Call: 041 2311958 Email: thetransporter@kta.co.ke The Transporter

The Transporter

APR - JUN 2012

Update

WINDHOEK - Namibia has to eliminate major trade barriers many of which are rules and regulations, if it is to become the ‘regional transport and transit hub’ by 2025.

Singled out are trade barriers in the transport sector and their current serious implications on the efficiency of Namibia’s TransKalahari Corridor and Tanzania’s Dar Corridor.

A vehicle from Namibia delivering cargo to Zambia, cannot pick up a load in Zambia for transportation to Tanzania unless this route passes through Namibia, points

out the Southern Africa Trade Hub, a USAID ‘technical assistance’ to Southern African Development Community (SADC) governments, in its May newsletter.

“Such practices have resulted in a high number of trucks returning to their point of origin empty. Naturally, this represents an additional cost to transport operators which is passed on to the operator’s clients and ultimately the final consumers,” said Southern Africa Trade Hub (SATH).

The Trans-Kalahari Corridor from Namibia and Dar Corridor in Tanzania connect with Zambia through

the Trans-Caprivi Corridor that also connects Namibia with Zimbabwe and the DRC. Trans Kalahari Corridor covers over 1,900 kilometres and connects the port of Walvis Bay to Gauteng in South Africa via Botswana.

The Dar Corridor or Dar Es Salaam Corridor, again of about 1,900 kilometres, connects Tanzania with Malawi, Zambia and the DRC. In addition the Trans-Kalahari Corridor is complemented by the Maputo Corridor on the east coast of Africa, thus forming a transport corridor over the entire breadth of southern Africa.

SATH had a meeting with the Namibian Deputy Minister of Works and Transport Samuel Ankama in April to assess selected aspects of Namibia’s road transport legislation, regulations, policy and environment.

The meeting included one with industry players and regulatory authorities with oversight on road transport issues.

It looked at assisting with “creating a more business friendly environment in implementation of pilot regulatory impact assessments.”

Kenya signs Japan funding accord for roads

Uganda receives road equipment from China

Dar to build two new shipping ports

NAIROBI Kenya recently signed agreements with Japan for 31 billion Kenyan shillings ($360 million) in loans and grants to improve roads.

The loan for 28.9 billion shillings involves building a road from Mombasa port’s container terminal and a bypass linking the seaside city’s South Coast to the mainland.

Kenya also will receive a grant of 1.7 billion shillings to widen 4.7 kilometers (2.9 miles) along Ngong Road in Nairobi to four lanes as well as put down sidewalks and drainage systems, Finance Minister Robinson Githae said during the signing of the agreement.

Growing investment to improve the road network in East Africa’s largest economy will lead to savings for businesses and consumers, Akihiko Tanaka, president of the Japan International Cooperation Agency, said at the same function. Transport expenses account for 40 percent of the price of goods in Kenya, he said.

Mombasa has the busiest port in East Africa, serving landlocked countries including South Sudan, Uganda and Rwanda.

KAMPALA China has delivered the first batch of road equipment to the Ugandan government as part of a 40- year soft loan of about 106 million US dollars to boost the country’s road transport.

Boosting road transport, according to Uganda’s ministry of finance, is critical in unlocking the country’s economic potential as road transport accounts for about 97 percent of the freight cargo in Uganda.

While receiving the road construction equipment that will be distributed to the various local governments in the country, President Yoweri Museveni said the equipment would help in the construction of major roads in the country.

The Chinese equipment included 159 graders, 257 tipper trucks, 12 wheel loaders, six dozers, seven excavators and two low loaders.

“We’re beginning with over 40 roads to be worked on as I promised during the 20122013 Budget reading,” Museveni said at a function on June 18 attended by local government officials.

ARUSHA Tanzania needs 6.1 billion US dollars over the next five years to finance infrastructure development projects including railways, ports, airports and roads.

“We have no other choice for economic development but to improve the infrastructure,” the Minister for Transport, Dr Harrison Mwakyembe, told a workshop of the Association of African Development Financing Institutions (AADFI) recently.

“If we aim to deliver better standards of living for our citizens, then the only valid question is how to do it - and not if we can do it or not.” the minister said when opening the workshop.

He told the workshop that Tanzania was currently in the process of expanding its Dar es Salaam and Mtwara ports while at the same time planning to build two new ones at Mwambani in Tanga and Mbegani in Bagamoyo.

The minister said that new investments were also needed for inland and lake ports. Dr Mwakyembe also underscored the importance of a reliable railway network.

INDUSTRY NEWS

Transport barriers hamper trade

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The Transporter

in bits...

CORRECTION

Midiwo Bill endorsed NAIROBI - MPs have passed the Traffic Amendment Bill 2012 which raises penalties for breaking traffic rules and causing accidents in an effort to restore sanity on the roads. The bill is sponsored

by Gem Jakoyo Midiwo, who had agreed with the minister for Transport Amos Kimunya to introduce further amendments during the third reading. He said they had agreed with the minister to harmonise the bill and the one drafted by the government.

Midiwo said he plans to call a stakeholders meeting to fine tune the bill to ensure that it achieves its purpose of ending carnage on the Kenya roads. “My purpose was to ignite debate on the issue of road safety. Deaths on the road cannot be ignored anymore,” he said. The bill proposes that drivers who violate speed limits be jailed for three months or fined Sh20,000 or both. Those fond of overlapping by driving through the pavements, and petrol stations to avoid traffic jams risk a Sh30,000 fine or three months in jail or both.

Investor eyes bulk oil storage facility MAKUENI - Petrocity Energy Kenya Limited is putting up a storage and loading facility at Malili near Makueni, 70 kilometres south of Nairobi at a cost of Sh1.5 billion.

Petro City Director Mr Harish Asodia says the facility currently under construction

by Comacon Limited is 40 per cent complete. It is expected to be operational by around October thus reducing damage to the road to Mombasa. The facility will comprise six storage tanks for oil with a capacity of 40 million litres of petroleum products. Asodia says the latest technology and safety standards currently missing at the Nairobi terminals will be incorporated at the Malili plant, where virtually all operations will be automated and run from a central control room fitted with CCTV cameras, graphics and other modern communications equipment.

The Transporter

In the 15th edition of The Transporter Magazine, we inadvertently referred to Mr. Mayieka (speaking during the Total Kenya training at the Nyali Beach Hotel) as Mr. Oliver Biyogo. We have since verified that indeed the person appearing in the picture is Mr. Mayieka and not Mr. Biyogo. We sincerely apologize for this mix-up.

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APR - JUN 2012

5

Global Update LOS

ANGELES

TOKYO

PARIS

Hino expands its footprint in Africa

Peugeot Plans Sale of Majority of Gefco Trucking Division

A BIOPHARMACEUTICAL company focused on the development of obesity drugs announced early this month that it is sponsoring a large study in its quest for final FDA approval of its weight-loss drug Contrave. The “Light Study” has begun enrolling patients for the clinical trials and among those sought for participation are truckers.

OrexigenTherapeutics Inc. is the maker of Contrave, which combined with exercise, aims to help obese individuals with weight loss. The goal is to have the drug approved and on the market by 2015.

The study – which seeks 10,000 participants – is designed to assess the cardiovascular health outcomes of the drug. The study drug is made up of two medications, bupropion and naltrexone, that are already FDA approved and used for other medical conditions. This combination study drug is not yet FDA approved.

The Healthy Trucking Association of America – an organization that offers programs to raise awareness and help improve the health of professional drivers – wants truckers to be aware of the the Light Study. HTAA says the study offers truckers the opportunity to participate in the clinical trial, get a free doctor-supervised weight-loss program, plus receive up to $840 for taking part in the program.

Research suggests that losing just 5-10 percent of one’s body weight can significantly reduce risk of health complications. www.landlinemag.com

HINO MOTORS LTD, the Toyota Group’s truck manufacturing company, is set to expand its Sub-Saharan African footprint in the course of 2012. Toyota is Africa’s leading passenger and light commercial vehicle brand and Hino plans to follow suit in the bid to become Africa’s preferred truck. An ambitious drive will see African countries with official Hino representation under the Toyota Tsusho Africa banner being increased from four to 22 this year. Hino recognises the key to trucking efficiency and minimal downtime lies in offering truck users excellent parts and service back-up and this can only be achieved through an appointed Hino truck distributor who matches agreed standards. Hino trucks will encounter harsh operating conditions in Africa which amplifies the need for parts and service to be available across the continent. Trained technicians, information bulletins and special tools are all part of a high-quality standard package that goes with an official Hino truck dealership linked to Toyota’s distribution system.

Hino trucks are no strangers to Africa where they have been operating as truck market leaders for over 39 years in southern Africa.

Since their first appearance in 1973, with 181 models sold that year, more than 50 000 Hino trucks have been sold in the southern African region. Many more new and grey imports have also entered the shores of this territory.

PSA PEUGEOT CITROEN (UG), Europe’s second-biggest carmaker, plans to sell at least 50 percent of its profitable Gefco trucking unit, more than previously discussed, as it seeks to raise cash amid slumping sales.

“The chief executive told us that more than half of the shares would be sold,” Patrice Clos, a FO union representative and head of Gefco’s works council, said in a phone interview.

Gefco Chief Executive Officer Yves Fargues provided the information at a works council meeting yesterday, Clos said.

The sale of a majority of the trucking unit “would mean that Gefco’s earnings would get deconsolidated in Peugeot’s accounts,” Florent Couvreur, an analyst at CM-CIC Securities, said. “This would basically mean a 20 percent cut in their operating income.”

Peugeot announced plans in February to sell assets, including a stake in Gefco, as the Paris-based carmaker grapples with European overcapacity and increasing debt. The French carmaker’s sales in Europe tumbled 15 percent in the first five months of 2012, outpacing an industrywide slump and causing its market share to drop to 12.1 percent from 13.2 percent, according to data from the ACEA industry group.

Gefco, a fully-owned Peugeot subsidiary, has attracted eight bidders so far, and Peugeot plans to narrow the field to three by the end of July. www.bloomberg.com

INDUSTRY NEWS

Truckers sought for study of weight loss drug

www.theindependent.co.zw

Sunday truck ban proposals “out of touch” says Road Haulage Association A proposal to consider banning trucks from motorways on Sundays has been described as “out of touch” and “the last thing” the industry would want to see in the UK. Richard Hayes, president of the Institute of Highway Engineers, said he would write to the roads minister, Mike Penning, to ask the Department for Transport (DfT) to investigate the issue as part of its recently announced review of the strategic road network.

Hayes says restricting use of the road network on Sundays for LGVs is commonplace throughout the rest of Europe and something he “strongly believes we should consider introducing in the UK”.

He explains: “Weekends should be a relaxing time on our roads when the network is used mainly by the general public going about their leisure activities.

“Surely it is not too much to ask that we take some of the tension out of the system for one day a week.”

However Jack Semple, RHA policy director, says: “I am surprised by the suggestion of a ban, which is out of touch with the needs of the UK economy, and by the tone of the comments.”

James Hookham, MD, policy and communications at the FTA, adds that weekend restrictions on the continent are “the bane of international hauliers’ lives”.

He says: “Banning truck movements on Sundays would be hugely damaging to the economy and to consumers and force freight traffic into already congested Friday afternoon and evening periods.” www.commercialmotor.com

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The Transporter

The Transporter

APR - JUN 2012

7

Update

GOING NORTH: Kenya signs $743 road project Since a large part of the area is prone to drought and famine with provision of relief food and humanitarian aid frequently necessary, the road is expected to enable rapid emergency responses.

T

rade between Kenya and Ethiopia is expected to rise in the coming year following the signing of a $743 million deal for the construction of the Addis Ababa-Nairobi-Mombasa road project.

The road is part of the Trans-African Highway Corridor that will interconnect the two East African countries with the rest of East and Southern Africa.

Kenya has been looking north to diversify its trade relations, focusing on Ethiopia and Sudan .

The road project, covering over 880 kilometres and financed through a loan from the African Development Bank, is expected to be completed in three years.

The Ethiopian section of the road from Hawassa to Ageremariam is approximately 197 kilometre long, while the Kenyan section from Turbi to Moyale is approximately 122 kilometres.

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“The need to achieve regional economic integration through strengthening our individual economies in various forms of co-operation is critical to address global economic challenges facing us today,” said Ethiopian Minister of Transport Diriba Kuma said recently after the signing.

Kenya’s Economic Survey 2010 shows Nairobi’s exports to Addis Ababa stood at $43.1 million while Kenya imported goods worth $2.4 million.

According to Ethiopian Roads Authority this will enable the country import goods using Mombasa port at a cheaper rate than through Djibouti.

Kenyan Transport minister, Amos Kimunya said the road link is critical to the fulfilment of the regional integration agenda of the EAC, the Common Market for Eastern and Southern Africa and beyond.

The two countries signed agreements on bilateral trade, agriculture, co-

operative development and electricity supply.

Hawassa and Ageremariam are major coffee producing areas, while the rest of the region is a key livestock-keeping zone and has potential for tourism.

A large part of the project area is prone to drought and famine; therefore the provision of relief food and humanitarian aid is frequently necessary. The improved road is expected to enable rapid emergency responses.

Kenyan government also has plans to develop the Lamu Port-Southern Sudan Ethiopia Transport Corridor as one of the flagship projects identified in its Vision 2030 blueprint.

The port of Lamu is strategic both politically and economically for the East African region, and presents the most appropriate entry to East and Central Africa compared with Port Alexandria in Egypt, Cape Town in South Africa or Lagos in Nigeria.

The Transporter

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The Transporter

APR - JUN 2012

Update INFRASTRUCTURE

State buys land for One-Stop Border Posts to spur trade

K

enya has begun acquiring land for the construction of special one-stop-border posts to speed up trade with neighbouring countries.

Commissioner of Lands Zablon Mabea said claims for compensation by owners of the affected parcels would be made from February 14, starting with those affected by the Namanga post.

The Lands ministry will acquire land for similar facilities at Lunga Lunga, Malaba, Taveta, Isebania and Busia while the Kenya National Highway Authority (Kenha) has already floated tenders for contractors to build the facilities as part of the East Africa Trade and Transport Facilitation project.

“The government is mobilising resources to ensure the facilities are up and running soon,” said Richard Sindiga, the chief economist at the Ministry of East African Community Affairs.

The posts are aimed at harmonising transit clearance procedures by having officers from two bordering countries handle transit documents concurrently,

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saving on the time.

Currently, goods are separately inspected by officers on either side of the border, leading to delays.

Impatient truckers and traders often resort to offering bribes either to jump queues or expedite clearance of their cargo.

The harmonisation of customs clearance would reduce the cost of doing business in the region.

East African Community (EAC) is currently auditing regulations to guide the operation of one-stop-border posts.

A sub-committee of the regional council of ministers is also scrutinising the One-Stop-Border Posts Bill 2010 before handing in its recommendations for enactment by the East African Legislative Assembly.

“It (the Bill) will enable countries to harmonise the laws of entities operating at the border and give way for simplified systems.

It will also address critical issues such as the treatment of workers from each of the partner states at the joint border

posts,” said David Nalo, the permanent secretary in the EAC Affairs ministry in a recent interview.

According to the Bill, border controls of an adjoining partner State shall apply in the host partner country.

Facilitation agents of adjoining partner states will be allowed access to the control zones for official purposes by use of status cards, instead of passports or visas.

An experimental one-stop-border post facility erected on the Kenyan border with Uganda at Malaba has already improved customs clearance with the World Bank calling for its replication.

Prior to the establishment of the facility, truckers required two days to clear with customs officials on the common border.

This has since been slashed to two hours through the sequential processing.

Border delays and the absence of enforceable means of settling disputes have been blamed for hindering the opening up of trade in East Africa, two years after the launch of the common market.

The Transporter

Advocacy

TRAINING

T

he Kenya Transport Association (KTA) has pledged to continually empower officials of its secretariat by offering training aimed at improving their skills. In mid June, the officials attended a two day course on advocacy competence which was held at the Whitesands Beach Resort, Mombasa.

The concept of advocacy is identification of an issue and lobbying policy makers to take measures to address arising matters. There may be competing pressures, for example, from consumers or environmentalists. It is the government’s task to balance these pressures whilst ensuring an environment that enables private business to start and prosper.

This means that the private sector, when seeking change in public policy, or change in the way that regulations are implemented or, enforcement of existing legisla-

The Transporter

tion, has to marshal the evidence and make cogent and persuasive arguments. It is in view of this that members of the secretariat were taken through the training which covered a wide range of topics including the following: • Issue identification which may come from business, government or from other stakeholders and which may require effort to influence outcome; • Understanding issues which require excellent research, including a systematic gathering of views, the ability to draw logical conclusions and a process for developing consensus internally; • Developing responses and proposals – formulating evidence based policy which requires the distillation of objective evidence from reliable sources, the consideration of policy options and the preparation of a compelling argument

ADVOCACY COMPETENCE: KTA CEO, Ms Jane Njeru (standing far left second row) and KTA Program Officer-Members Services, Mr. Habil Kalasani (fifth back row from right) next to a former KTA Executive Committee Member, Mr. Lucas Dindi, when they joined other participants for a two-day training on advocacy competence at the Whitesands Beach Resort.

for the chosen option; • Influencing policy makers; reaching appropriate people in government to influence public policy and • Follow-up; monitoring to ensure that when the public sector agrees to changes, they are put into practice.

Other discussions were on types of regulatory environment for business, tactics of handling public relations including communication and the media, negotiation skills, preparing a concept note and application to the business advocacy fund and research for advocacy.

Case studies to demonstrate situations requiring advocacy and the various approaches were examined during the two-day course. KTA was represented by a member of the Executive Committee, Jane Njeru (Chief Executive Officer) and Habil Kalasani, the Program Officer – member services.

APR - JUN 2012

11

Infrastructure

Construction of crucial EAC road begins The Voi-Taveta road is the gate way to the main East African community block and once complete, the highway is expected to facilitate regional trade

T

he long awaited construction of Mwatate-Taveta road is set to begin next year after the African Development Bank (ADB) recently hinted that about US$125 million (Sh10.3billion) had successfully been mobilized for the project.

The tenders for the project will be advertised in August this year and will be awarded before the end of the year, according to African Development Fund Infrastructure Specialist Eng Lawrence Kiggundu.

Speaking in Taveta at a stakeholders meeting last month, the specialist said there was need to engage more than one contractor to work on the project to avoid a situation like that experienced in a section between Voi and Mwatate where the work is raising some technical questions.

The 26km stretch from Voi to Mwatate is funded by the government but was behind schedule and may not be completed within the contract period of two years.

This comes a month after Roads Minister Franklin Bett issued a three months notice for the contractor to comply to the contractual agreement and speed up the project failure to which he will be demoted and also lose the contract to another contractor.

“For this section that will be funded by ADB, we do not want any delays and sub standard work because our core

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values doe not allow funding of that nature,” he said.

The Voi-Taveta road is the gate way to the main East African community block and once complete, the road is expected to improve regional trade. For this reason, he said, the road needed to be done according to international standards.

The funds have already been set aside and the only problem that was holding back the project was the issues raised in the stakeholders meeting last year where Taveta residents opposed a by pass and demanded that the highway pass through the centre of the town.

The residents and business community representatives who attended the meeting agreed that the by pass was important outside the central business district to decongest the town and reduce accidents.

They also agreed that informal structures on the road and railway reserve in Taveta town should be demolished to pave the way for the construction of the road.

According to Salmon Osare, a senior highways Engineer with the South African consultant that surveyed the road, some informal structures including the police station were among those that would be targeted for demolition.

He said that though there will be an issue of compensation for the displaced people, it will be done to those whose

property was already profiled by their officers last month.

“We had our people on the ground to profile all the structures within the road reserves and their names were already taken for consideration for compensation that will be done before the project begins,” he said.

The ADB official emphasized the need for the local authority and provincial administration to educate the community and provide an alternative land to resettle them. Taveta Town clerk Yussuf Rashid however said that the Council had enough land to handle the traders who will lose their business to pave way for the project.

This development comes in the wake of concerns by stakeholders that the standards of roads being constructed is wanting. An assistant minister wants the road construction contract for the Voi-Mwatate road reviewed after the workmanship turned questionable.

Education assistant Minister Calist Mwatela said the manner in which the contractor was handling the project was raising doubts that it will be completed in time and according to the expected standards.

Speaking in Voi town recently, the assistant minister said it was worrying that since the contract was awarded last year March, only a 12 km diversion has been done. “It is evident that the type of work being done on that road could be of low standards,” he said.

The Sh2.3 billion project started last year in March after a protest by Voi residents that led to the closure of Nairobi Mombasa highway for two days.

Kundan Sigh (the contractors) operations Manager Peter Nderitu assured residents that there was no cause to worry about the project, saying they were competent and committed to complete it within the stipulated contract period.

“We only had a problem with hard core which we had to crash from Taru about 100km away but we have started transporting it to the site,” he said, adding: “For last one year, there was a problem with procurement of the required materials and site preparation but now that everything is ready and already there are a lot of activities going on.”

Despite the slow pace of the project, stakeholders in the transport sector say once the projects are complete, the Voi-Mwatate-Taveta road will improve business opportunities for the people of Kenya and Tanzania and the East Africa Community at large.

The Transporter

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Trade

Law amendment

LAUDED

Relief to transporters as KRA allows transit trucks to carry both transit and local cargo but only if fitted with electronic cargo tracking system.

T

ransporters have welcomed an amendment on licensing procedures for transit trucks introduced by the Kenya Revenue Authority (KRA) which they said has resulted to improved cargo delivery within the region.

KRA announced late last year that transit trucks would be allowed to carry both transit and local cargo, but only those fitted with the electronic cargo tracking system. The decision followed a long-drawn tussle between the taxman and transporters.

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APR - JUN 2012

Initially, trucks carrying cargo to neighgbouring countries were not allowed to take return cargo, a licensing regime that transporters said resulted to them maintaining a high number of trucks on the road.

The licensing regime had also resulted to an increase of the number trucks since transporters had to maintain two fleets for both local and transit cargo. It was also blamed on a massive congestion on the northern corridor that is used by over 20,000 trucks which deliver more than 90 per cent of transit cargo generated by Mombasa port.

“We have started to realize the results of the new rule because now transporters can carry return cargo from say Uganda without having to send empty trucks there,� said Kenya Transport Association (KTA) chief executive officer Jane Njeru.

Since the collapse of the railway system, which in the 1980s carried more than 40 per cent of cargo but has today declined to less than five per cent, shippers have relied on the road network to transport cargo from the port to upcountry destinations.

The Transporter

National Road Safety Agency

The Transporter

APR - JUN 2012

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Truck&Trailer INOVATIONS, TRENDS

& DEVELOPMENTS

Law amendment Volvo Mean Green breaks record

LAUDED Ms Njeru added that the harsh licensing regime had contributed to the high cost of transport which has ultimately resulted to high prices of commodities since truckers pass on the costs to consumers.

Maintaining all these trucks on the roads is costly and transporters have to recover their costs through transport rates.

However, it is the transporters who suffer because they are not able to raise rates due to stiff competition and high fuel prices, with some of them resorting to overloading to survive. Although Uganda is agriculturally rich, trucks that delivered over 4.3 million tonnes of goods last year could for instance not carry back food for local use.

Plans by KRA to introduce ECTS on all trucks delivering bonded goods in 2010 were opposed by KTA before a significant number of transporters installed the machines. KRA had approved Navisat Telematics and SGS to install the systems and, only less than five per cent of trucks had installed ECTS at the time the matter went to court where it is still pending. The ECTS was supposed to prevent dumping of transit cargo in the local market and also do away with the costly physical escort currently in use.

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APR - JUN 2012

The Transporter

Innovation significantly in the past three decades — but that cannot be said for drivers. In the 1970s and 1980s there were more serious accidents.

The number of deaths from car accidents has dropped since then, but the human factor has remained equally unpredictable.”

Studies carried out by the Virginia Tech Transportation Institute and the National Highway Traffic Safety Administration showed that 93 per cent of accidents are caused by driver error, 80 per cnet of them by the driver’s inattentiveness within three seconds before the accident.

PERIPHERAL WARNING SYSTEM

Israeli invention to prevent

CAR ACCIDENTS Israeli-designed advanced driver assistance systems (ADAS) help motorists operate their vehicles more smartly and safely.

S

ooner than you may realize, advanced driver assistance systems (ADAS) will be standard accessories in cars, trucks and buses.

“In 10 years every new car in the world will include ADAS,” predicts Isaac Litman, CEO of Mobileye Products, the Jerusalem-based global leader in the ADAS market.

“This new technology helps drivers drive better,” he explains. “We have the statistics to prove this.

Vehicles fitted with Mobileye ADAS have now traveled over a billion miles in the US, with a 40-50 percent drop in accidents.”

Mobileye’s ADAS systems recognize cars, bikes, motorbikes and pedestrians, and can warn drivers of an impending accident in time. They can tell you if another car is about to enter your driving lane, or if you are deviating from your lane. They

The Transporter

can even stop the car if the driver doesn’t react quickly enough.

Litman points out the three primary causes of accidents: poor roads, unsafe vehicles and bad driving. “In most countries, roads and vehicle design have improved

EARLY WARNING: Mobileye’s ADAS systems recognize cars, bikes, motorbikes and pedestrians, and can warn drivers of an impending accident in time.

“Without a camera — the ultimate sensor — no driving assistance system could be complete,” says Litman. “Our unique angle into the market was that we can perform all the required functionalities with a monocular [single camera] approach. The camera is behind the rear-view mirror — the driver can’t actually see it.”

The company developed its firstgeneration system-on-chip, the EyeQ1, at its R&D center in Jerusalem’s Har Hotzvim high-tech industrial park, launching the revolutionary product in 2007. Initially it was marketed to leading vehicle manufacturers BMW, General Motors, Volvo and Nissan.

Mobileye’s standard ADAS functions include lane departure warning (notifies a driver if the vehicle is about to deviate from its lane), vehicle detection for radar vision fusion (based on algorithms that recognize all motorized vehicles from motorcycles to trucks), forward collision warning (alerts the driver of a potential collision risk), headway monitoring (recognizes vehicles in the same and adjacent lanes), pedestrian detection (warns about static and moving pedestrians up to 30 meters away), intelligent headlight control (automatically raises and lowers the high beam so as not to blind oncoming or preceding traffic) and traffic sign recognition to help drivers obey local traffic instructions.

APR - JUN 2012

17

Trade

AXLE LOAD HARMONIZATION: Confusion reigns as EAC states differ on rules Besides the weighbridges, there are other inefficiencies along the transport corridor that result to non-tariff barriers (NTBs).

A

controversy which has been simmering over axle rules for several months now seems to be boiling over as East African Community (EAC) member states dither on implementation of key agreements aimed at eliminating delays along the transport corridors.

Lack of harmony in weighing of trucks within the EAC states has sparked a controversy pit-

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APR - JUN 2012

ting stakeholders in the transport sector and government agencies.

Particularly, transporters say the confusion is likely to derail the region’s integration efforts.

Early this year, the states agreed they would adopt 56 tonnes as a standard measure for a six-axle truck, and weigh trucks based on gross weight. However, the rule seems to have been just on paper, since red tape and confusion has

reigned especially along the Northern Corridor.

Recently, transporters protested when dozens of trucks were impounded after failing to comply with axle load limits at the Busitema weighbridge, located about 40 kilometres into Uganda from Malaba border.

Drivers refused to weigh their trucks and blocked the highway for several hours and when they The Transporter

were threatened by ant-riot police, they cordoned several petrol tankers which they used as shield due to nature of cargo. This has now become a common phenomenon along the route.

According to the Kenya Transport Association (KTA), determining weight of a truck using the axles creates confusion since trucks were weighed on gross weight in Kenya.

Some axles tend to be heavier than The Transporter

others while the gross weight is within the limit of 48 tonnes and transporters say penalizing them on the basis of heavier axles is unfair since some of the loads they carry keep shifting.

“We are surprised that they have continued to weigh the axles instead of taking gross weight,” the chairman of Kenya Heavy Commercial Vehicle Workers Union Mohamed Bahero told The Transporter on phone from Malaba, Uganda on his way to Southern Sudan.

Besides the weighbridges, there are other inefficiencies along the transport corridor that result to non-tariff barriers (NTBs) that EAC countries have committed themselves to eliminating. Tanzania and Kenya agreed to reduce roadblocks from 30 to 15 in the northern corridor and from 36 to five in the central corridor.

However, this has not been actualized and the NTBs are now a threat top the growth of intra-trade business in the region.

“These issues must be sorted out because when trucks are impounded we are the ones who suffer besides transporters incurring extra expenses and loss of business as a result of wasted time,” Mr Bahero added.

The development comes just weeks after member states agreed to adopt a common rules in the region to promote trade. Recently, EAC member states adopted a One Stop Boarder Post Bill, which was aimed at improving trade relations and eradicating non-tariff barriers in the region.

The system is expected to eliminate the current practice that involves checks on both sides of a border between two partner states, which have led to serious delays at the border crossing points. In the Kenya Uganda Malaba border for instance, trucks wait for up to three

days to be cleared by the custom authorities on both sides.

However, according to transporters, the experience at Busitema weighbridge and that of Namanga border post where drivers protested recently against Kenya Revenue Authority’s order prohibiting them from parking within five kilometres from the border, point at authorities that are not committed to eliminating the barriers.

“It does not make sense for the EAC states to make statements after arriving at decisions during conferences and not implement them. We want to see what they agree upon being implemented on the ground,” said Mr John Muite, secretary of the Kenya Heavy Commercial Vehicle Workers Union.

Harmonized Axle Load Rule Could Save Region Millions of Dollars MEMBER states of the East African Community (EAC) could save up to US $1.5 billion every year by harmonizing the axle load control across the five states, according to EAC officials.

“By harmonizing the approach to axle load control to allow for maximum of 56 tonnes per truck across the region, we shall remove costly logistics burden from the back of operators and investors in the region and save the region over one billion dollars annually,” Enos Bukuku, EAC Deputy Secretary-General said.

Bukuku explained that a harmonized law would significantly reduce transport costs, especially for the landlocked countries of Uganda, Rwanda and Burundi.The Bill, titled the EAC Vehicle Load Control Bill, 2012, is the culmination of a year long process during which partner states discussed technical details on vehicle loading.

APR - JUN 2012

19

Environment

Sustainable transport to get

$175 BILLION BOOST Eight of the world’s largest multilateral development banks have pledged $175 billion (£111 billion) towards improving sustainable transport.

T

he commitment was made at the UN secretary-general Ban Ki-moon’s closing press conference at the recently concluded Rio+20 talks, and is one of the biggest financial deals to have emerged from the summit.

The funds will be used to sustainably progress public transport, bicycle and walking infrastructure, energy-efficient vehicles and fuels, railways, inland waterways and road safety.

“These sustainable transport improvements will benefit billions of people, especially the poor, and support environmental sustainability and reduce greenhouse gas emissions”, said Bindu Lohani, vice president for knowledge management and sustainable development at the Asian Development Bank, one of the institutions involved.

The World Bank and the Latin American and African develop-

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APR - JUN 2012

ment banks are also involved in the pledge, which spans a ten-year period.

Joan Clos, executive director of UNHabitat, said, “These unprecedented commitments have the promise to save hundreds of thousands of lives by cleaning the air and making roads safer; cutting congestion in hundreds of cities and reducing the contribution of transportation to harmful climate change.”

It’s estimated that between 5-10% of global GDP is squandered through these problems every year.

And given the rapid population growth being witnessed in certain parts of Asia and Africa, investing heavily in sustainable modes of transport is seen as essential. India alone is expected to add 500m people to its total in the next 20 years.

The development banks involved form part of a campaign by the Partnership on Sustainable Low Carbon Transport (SLoCaT), a

conglomerate made up of UN organisations, development banks, non-governmental organisations and representatives of the business sector.

“Never before have these institutions collaborated on such a global scale”, said Cornie Huizenga, joint convener of the SLoCaT Partnership.

“The breakthrough that we are witnessing allows us to plan for the one billion people who will move to cities over the next 20 years and the one billion people still living in poverty.”

Whilst the $175 billion pledge is thoroughly welcome, the scale of investment needs to be even greater. The eight development banks estimate that certain countries in Asia will require over $2.5 trillion between now and 2020 to advance transport to a suitable level.

The Transporter

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The Transporter

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APR - JUN 2012

Cover Story

WEIGHBRIDGES REMOVAL

Too good to believe?

Corruption was still rampant at weighbridges and road blocks, with police officers being accused of accepting “protection fee” from some transporters…

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APR - JUN 2012

The Transporter

ON THE SCALE: A truck on the scale at Mariakani. There are seven stationary and six mobile weighbridges along the Northern Corridor on the Kenyan side, where trucks waste several hours, reducing truck turnaround.

The Transporter

APR - JUN 2012

23

Cover Story

T

he news that weighbridges along the Northern Corridor will be scrapped, only leaving weigh scales at the entry and exit points, caught transporters by surprise. They could not believe that the check points that have fleeced them of resources with officials abetting overloading as they demand bribes, could be a thing of the past.

Kenya and the EAC region can ill afford the high costs associated with delays occasioned by weighbridges and roadblocks along the Northern Corridor, which serves our landlocked neighbours Uganda, Rwanda and DRC. Finance Minister Robinson Githae while reading the Kenya’s budget for the 2012/2013 fiscal year.

“That is a pleasant surprise,” said Kenya Transport Association chief executive officer Jane Njeru. “This is what we have been asking for over the years and if implemented

by December as stated, then we will realize turnaround of more than 30 per cent.”

In his 2012/2013 budget speech, Finance minister Njeru Githae said weighbridges between Mombasa and Malaba would be scrapped and only be stationed at border points and Mombasa port.

There are 13 weighbridges from Mombasa to Malaba border, with seven stationery ones at Mariakani, Athi River, Eldoret, Gilgil, Webuye, Mai Mahiu and Amagoro while six others are mobile. If the directive is implemented to the letter, this would mean that only Mariakani and Malaba border scales would remain.

THE WAITING GAME: A queue of trucks along the Northern Corridor at Mlolongo in Nairobi. The amount of man hours and money wasted along these queues is mind-boggling.

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APR - JUN 2012

The excitement about their removal stems from delays associated with the check points, which translated into monetary value runs into millions of shillings in losses incurred by transporters. A truck spends not less than two or even more hours at one station, thus wasting time.

“A truck can spend several hours at a check point and by the time it reaches the destination, days have been lost. This causes delays resulting to poor turn around,” Ms Njeru said.

She added: “Our members incur massive losses in terms of lost trips as a result of time wasted at these facilities along the corridor. This also contributes to driver fatigue which results to accidents and further losses.”

Sector analysts have questioned the effectiveness of weighbridges at all these points since despite the checks, unscrupulous transporters still corrupted their way through as they overloaded, dealing a heavy blow to efforts of saving the road network from destruction.

Recently, truckers launched fresh accusations against the police, blaming them of abetting overloading by some transporters, whom they claim enjoy protection from the law enforcers.

Corruption was till rampant at weighbridges and road blocks, with police officers being accused of accepting “protection fee” from some transporters,” they told The Transporter.

Overloading also robs genuine transporters of business. A truck with six axles is allowed a maximum weight of 48 tonnes but some trucks have been impounded carThe Transporter

THE FIGURES WEIGHT MATTERS: A truck being weighed at the Mariakani weighbridge.

rying more than 80 tonnes, a load that would have been transported by another truck.

“Despite our commitment to eradicate the vice it seems the police are not supporting us. There are numerous bribery claims at weighbridges and other check points attributed to transporters who seem to be “untouchable,” Ms Njeru said in an interview.

But even as the government announced the plans, some stakeholders were skeptical and called on the government to address the issue of corruption and overloading. Heavy Commercial Vehicle Drivers union secretary John Muite said without integrity, those who overload would still go scott-free.

“If we just do away with the facilities before addressing the root cause of overloading, then it will not make sense to scrap them since overweight trucks will still pass the checks after money exchanging hands,” he said.

Regarding bribery claims, officer in charge of traffic in Mombasa Joshua Omkata said they had not received a formal complaint over the matter. “There are many complaints leveled against police officers and before any of them is formerly lodged with us so that we carry out thorough investigations, it is treated as a rumour,” he said.

Transporters are of the view that weighbridge managers should be innovative if they were serious in deal with overloading. “They should also use modern technology including installing CCTV cameras and linking the system to key stakeholders to address this issue once and for all,” a transporter told a recent stakeholders forum, addThe Transporter

ing that those perpetrating the vice should also be heavily penalized.

But even as the plans were announced, the Roads ministry is of the view that removing all the scales between Mombasa and Malaba would be unwise, given the fact that Nairobi is a manufacturing hub with exports to the region originating from the city, in which case it would be logical to retain the Athi River and Gilgil weighbridges.

“Before the scales are removed we would also want an assurance that the action would not mean opening the floodgates to overloading.

For the sake of our roads we want to see an alternative before the directive is implemented,” said a Kenya National Highways Authority (KeNHA) official on condition of anonymity.

The weighbridges, some of them manned by private companies, have been cited as the major cause of non-tariff barriers (NTBs) within the East African Community. Despite the EAC countries committing themselves to eliminating NTBs by signing various agreements, the member states have not taken a step to actualize them.

Kenya, said to be the major culprit in failing to implement EAC non-tariff barrier agreements, is by this action being viewed from the light of redeeming her image, coming just a couple of weeks after Rwanda threatened to go to the East African Legislative Assembly (EALA) to press for implementation of various EAC agreements which have remained on paper.

The number of weighbridges on the Kenyan side of the Northern Corridor between Mombasa and Malaba.

The percentage of turnaround transporters hope could be realized when the weighbridges are removed.

The amount of money in trillion shillings of 2012/2013 Kenya’s budget finance minister Njeru Githae read in June.

APR - JUN 2012

25

KTA News

1

KTA gets

2

NEW DIRECTORS

K

enya Transporters Association Ltd. held its 9th and first AGM as a limited Company by guarantee on June 16, 2012 at Travelers hotel Mombasa. The event, sponsored by CIC Insurance Company and the Kenya Commercial Bank was well attended by both KTA transporters and associate members.

Among the key messages to members were that KTA had been transformed into a limited Company by guarantee as directed by members during the 8th AGM in 2010. Members were also informed that KTA has partnered with USAID-COMPETE to set up a drivers institute to bolster its road safety strategy with a plea to all members to support this initiative by training their employees (drivers) for the sake of road safety and cost effective operation.

News that KTA had been given the honorius task of chairing the Federation of Eastern and Southern Africa Road Transport Associations, FESARTA, was received with a lot of excitement and hope that this will present a crucial opportunity for KTA to champion the interests of transporters across the region. Elections for office bearers were conducted whereby Paul K. Maiyo, Hassan Bayusuf, Gulam Yusuf, Kiprop Bundotich, Iqbal A. Bayusuf, Salad Awale, Imran Pasta, Zahir Kara and Shakil Khan were elected as Directors.

After confirmation of accounts report, PKF Consulting was appointed KTA auditors. The sponsors, CIC Insurance and KCB reiterated their commitment to continue partnering with KTA for mutual benefit.

On the side of USAID-COMPETE, the organization lauded KTA for good progress made since partnering with the former two years ago. While the sponsors noted measures KTA had so far taken to enhance road safety and lower the cost of doing business, they said there was need to adopt new and improved strategies and techniques in tackling challenges that transporters were faced with in the dynamic and changing business environment.

The deputy Registrar of Companies congratulated KTA Ltd. for holding democratic elections and observed the need to embed democratic principles into the organizational framework for posterity.

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APR - JUN 2012

The Transporter

3

4

5

6

1. KTA chairman and director Paul Maiyo addresses the members during the Annual General meeting at Travellers Beach Hotel.

2. KTA Directors from (left to right front row), Imran Pasta, Hassan Bayusuf, Paul Maiyo, Iqbal Bayusuf.

(Back row from left to right) Gulam Yusuf, Zahir Kara, Kiprop Bundotich and Shakil Khan. Mr Salad Awale, the ninth director was not captured in this photo.

3. KTA members vote during the AGM 4. Former KTA Treasurer Minesh Pandya presenting annual accounts report during the AGM 5. KTA Director Imran Pasta (left) confers with chairman Paul Maiyo 6. USAID COMPETE Programmes coordinator Grace Maina reads an official statement on behalf of USAID COMPETE during the AGM. 7. KTA members follow proceedings at the AGM

The Transporter

7 APR - JUN 2012

27

KTA News

KTA steps up

WORKING VISIT: KTA chief executive officer Ms Jane Njeru (right) with programmes officer, member services Mr Habil Kalasani (left) during one of the member visits. They are with Naresh Ranpura, director Shreeji Enterprises.

MEMBER VISITS S ince beginning of the year, the KTA Secretariat has vigorously embarked on member visits and familiarization program. These visits target Management staff of transport companies at senior levels, including Company Directors and managers.

The purpose for the KTA member visits is to obtain information on issues and any available data that could help the KTA Secretariat effectively advocate matters on behalf of members.

This comes with the realization that effective advocacy is only possible with fact based evidence and empirical confirmations of situa-

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APR - JUN 2012

tions on the ground. The visits are intended to inform the secretariat on the pertinent issues that affect the transporter, so that we are bale to our members better.

So far, officials of the KTA secretariat have visited several members and useful discussions held with Company Directors. These visits occasionally include government agencies such as the Kenya Police.

This is because as we talk to our members, the government needs to know what is happening in the industry and make timely interventions where necessary.

On June 27, 2012 for example, KTA Secretariat paid a courtesy call to police officers at the Changamwe

police station, to discuss among other issues, emerging reports of insecurity within the dry container freight stations. The police pledged to cooperate with transporters to address insecurity in the area.

KTA member visits by the Secretariat will be a continuous exercise aimed at helping both secretariat staff and KTA members understand, correctly interpret and effectively handle emerging issues in the dynamic trucking/transportation industry, key among them; Laws and regulatory policy matters; Non-Tarrif Barriers and other issues that contribute to the high cost of doing business.

The Transporter

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APR - JUN 2012

Technology

High hopes for

HYBRID

Alternative strategies to power trucks are being taken increasingly seriously. A new initiative from Fuso is part of a global push to develop practical hybrids for the transport industry.

T

he development of hybrid technology continues apace around the world as truck manufacturers try and stay ahead of the game and prepare for an increase in demand for trucks with lower fuel consumption profiles. Oil prices will continue to rise, putting pressure on fuel consumption and, when the global economy does finally get going again, demand for fuel will accelerate the price rises. At the same time, governments around the developed world are heading towards introducing some form of carbon tax or pricing to reduce their nation’s carbon dioxide footprint.

Other alternative technologies and alternative fuels are being developed around the world but, judging by the level of development dollars being poured into their

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APR - JUN 2012

development, hybrid electric trucks are likely to make the quickest impact. Hybrids have been available for several years in the Australian market, being supplied by both Hino and Fuso. They have been sold into a number of fleets and have met with a certain amount of success but are hampered by the very high price of the technology.

The problem for the truck manufacturers is to try and overcome the impediment of such a high price premium for environmentally responsible product. The high cost of the technology development and the cost of vital components in a hybrid system, i.e. high-tech batteries, electric motors and sophisticated electronic control technologies creates a substantial premium.

In a catch 22 type situation, higher volumes of sales will allow the manufacturers to spread the ex-

pensive development costs across more vehicles and the higher numbers would also tend to drive the cost of individual components down. The introduction of a carbon tax and higher fuel prices should change the equation and bring technologies like hybrids more to the fore. At the same time, societal pressure in the more environmentally responsible countries, like Northern Europe, will see highly visible companies using more hybrids, and advertising their use, to improve their environmental credentials.

The big truck manufacturers clearly believe hybrid is one of the routes down which the truck market is likely to go. All of the major players have put considerable effort into hybrid development and getting trucks out on the roads in real-world trials. Hybrid vehicles The Transporter

are delivering freight, collecting garbage etc. in North America, Europe and Japan.

In 2008 Daimler Trucks decided to integrate all of the different hybrid operations it is developing around the world into a single Global Hybrid Centre, based in Japan as part of the Fuso operation. There are still teams working in both North America and Europe, with Freightliner and Mercedes-Benz, but their work is coordinated from the Japanese headquarters.

The company already has hybrid product on the roads in the developed world. Japan, and Australia have the Fuso Canter Eco-Hybrid and we will see a much improved model coming onto the Japanese domestic market later this year – and, potentially, arriving in Australia sometime later. In Europe, Mercedes-Benz sells the Atego Blue Tec Hybrid in the medium duty market. Meanwhile, Freightliner sells the M2e Hybrid on the North American market.

These trucks are in the lighter end of the truck market but Daimler is

looking to develop solutions for heavy duty trucks as well. In the lead up to the Tokyo Motor Show, Fuso announced the introduction of a new heavy duty hybrid truck which uses hybrid technologies to reduce consumption for the Japanese long-haul truck market. The new technology is going on trial in

Japanese fleets to demonstrate its effectiveness.

“Our evaluation, so far, shows that hybridisation can indeed benefit heavy duty trucks in typical long haul operations,” says Gustav Tuschen, Fuso’s Vice President of Product Engineering. “The conven-

tional thinking is that hybrids best fit light duty truck operations in urban areas, since such operations involve many stops and starts.

While small truck operations in big cities do benefit from hybrid power trains, due to their ability to frequently recapture braking energy, heavy duty highway trucks clearly can benefit as well.”

The system being used by Daimler follows the design principles which have become the norm for most of the truck manufacturers around the world. The parallel hybrid system is the simplest, consisting of a diesel engine and a battery both capable of putting energy into the drive train via the transmission. The company is also fitting the electric motor between the clutch and transmission, and not in its alternative position between the clutch and the diesel engine.

This reduces the loss of energy during deceleration to the innate inertia in the engine, the clutch is disengaged as energy from the drive train turns the electric motor, which in turn charges the battery.

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APR - JUN 2012

31

Logistics

Illegal fuel dens thrive AS POLICE WATCH

C

oncerns have been raised over mushrooming of fuel dens along the Northern Corridor and motorists warned of massive losses for using adulterated engine oil.

Fuel theft cartels have over the years been siphoning diesel and petrol from tankers, but the trend has now shifted with illegal dealers now siphoning engine oil and adding used oil in its place, according to investigations by transporters.

This is done at various dens that have been set up between Mazeras at the coast and Malaba border which have been operating with the blessings of security agents,

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APR - JUN 2012

according to investigations.

“Our members have complained that some drivers stopped at the specific points to siphon oil and to disguise the theft they add used oil. Motorists then buy the product least knowing that it is harmful to their vehicles,” said Kenya Transport Association (KTA) chief executive officer Jane Njeru.

Investigations carried out by transporters reveal that there is a well-connected cartel operating along the route which is enjoying the protection of the security agencies especially the police.

“The situation is getting out of hand and it is the high time the

security agencies took a bold step and eliminate the cartel otherwise consumers will continue being exploited,” she said.

The Petroleum Institute of East Africa (PIEA) which is also concerned about operations of the illegal dens, wants the Energy Regulatory Commission (ERC) to crack down on the cartel. The institute recently wrote a terse letter to the commission, reminding the agency of its role in ensuring that these dens are not allowed to flourish.

“ERC should take immediate action on these dens whose locations we have submitted and are well known to you,” reads a letter from PIEA to the commission which was seen by The Transporter.

“These dens are unlicensed and they not only carry out storage of fuel but also dispense the same, most of which is adulterated,” adds the letter, signed by the institute’s general manger Ms Wanjiku Manyara.

Transporters and PIEA are not the only ones concerned about the illegal fuel stations which are not only located along the Northern Corridor but are also found in residential areas in Momabsa.

The National Environment Management Authority (Nema) recently warned that the one-pump stations were a risk to the environment and should be shut down. During a raid on the stations recently, Nema said there were 30 such stations in Mombasa alone, where stolen fuel ended.

According to the agency’s compliant and enforcement officer in Mombasa Benson Wemali, prices of fuel (especially diesel) at these stations was more than 20 per cent less than at legal stations, which meant that the product they sold had been obtained through dubious means.

“In Kisauni and Magongo where most of them are located in residential areas, they pose great risk to those living there. They are actually a time bomb because you might find a station located on the lower floor yet there are people living above it,” he said.

The Transporter

Why diesel engines don’t like

DIRTY STORIES

S

and, dust and sludge “all silent killers of even the most hardy of industrial diesel engines!

Not surprisingly, technology being what it is today, there is a rather unrealistic belief that a minimalist approach to maintenance is all that is needed.

Unfortunately, the dirty, greasy, gritty truth is quite different.

Without regular maintenance and servicing, diesel engines will ultimately surrender to the relentless daily barrage of external and internal pollutants “and a gargantuan repair bill will be almost certain to follow.

Inadequate Filtration The effect of poor filtration on the life of a diesel engine is a serious issue, with both the external environment,eg dust – “together with the sludge made from the by-products of combustion – “brewing up to run machinery into the ground, well before their time!

Inadequate air-flow

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Dust and sand, continually sucked into an air intake can be a death sentence for diesel engines.

After all , the intake is crucial for providing air for combustion and helping cool the engine, so airflow must be consistent. Scrimping on replacing the air intake filters won’t just affect engine performance on the day, but will also seriously affect its working life.

A limited or partially blocked air-flow results in erratic engine revolutions, providing inconsistent power output with the consequence of poor performance on the job. Strong winds in dry dusty areas, as well as dust and sand stirred up by working vehicles may cause a big restriction on airflow in a filter “in a comparatively short space of time.

Internal Contamination Internal pollutants have an even more serious effect if filters aren’t checked and replaced frequently at the required service intervals.

Internal oil filters are built to hold pollutants and stop them

from circulating throughout the engine, causing damage through abrasion, heat, and clogging.

This internal contamination, referred to as sludge, is said to cause about seventy five % of damage to engines “reducing the ability of the oil to move through the filter and be cleaned.

Known as ‘cold flow ‘, the reduced movement of oil thru the engine increases abrasion, with ensuing damage to the metal parts as well as increased friction raising the internal engine temperature.

Prevention is Better and Cheaper than Cure Down time in any business has the effect of negatively impacting on the bottom-line… “and dirty diesel engines are notorious for playing havoc with ‘bottomlines’.

Take the sensible, cost-effective approach – and keep up a regular maintenance schedule with filter changes “your diesel engine will ‘love you ‘ for it…and live longer!

APR - JUN 2012

33

Integration g New line to open regional POWER TRADE A new electricity high voltage power line will be constructed from Voi to Taveta town at the border with Tanzania in a bid to open up Kenya as a conduit to inter- country power trade in east and Central Africa.

Eng Andolo Ambasi who is also the team leader in the construction of the Mombasa Nairobi 400kilovolt (kv) said the project was lined up to kick off after the Mombasa Nairobi line is completed in March next year.

“Plans are underway to connect Tanzania to our national grid to facilitate the power trading between the two countries for the promotion of industrialisation in the region,” he said.

Speaking in Voi town recently, Mr Ambasi said the high voltage power towers the government is constructing were aimed at connecting the whole country with electricity in line with the Vision 2030.

His remarks comes at a time when Kenya Electricity Transmission company(KETRACO) is on the race to complete 40 more on-going projects country wide with the biggest one being that in the Northern Kenya targeting transmission from the River Omo dam at the border with Ethiopia.

Once the projects are completed, this will boost the national grid to about 5,000megawatts up from the current supply of 1,200megawatt.

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Sensitization of EAC residents

KEY TO INTEGRATION “The sensitization forums are expected to rally residents towards a common objective and entrench the right attitudes amongst the stakeholders towards the integration process…” – Peter Njoroge, Deputy Director in charge of economic affairs.

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he ministry of East African Community faces an uphill task in sensitising communities living along the border with the member states as trade barriers emerge to be a major challenge to overcome.

This is after residents of Taveta border

town complained that they were getting a raw deal in trading with Tanzanians who had easy access to the larger Kenyan market. A resident, Amosi Kibwana, says it was disheartening that Kenyans were unable to trade in Tanzania despite the existence of the two year old common market

The Transporter

protocol.

“We were happy at the time of the commissioning of the common market protocol because the expectations according to the arrangements were promising only to realize that things would become more complicated,” he said.

He said during the signing of the EAC common market protocol, it was expected that there would be free movement of persons, services and labour, but whjat came of it is that the doors were opened for the neighbors to trade in Kenya alone.

This comes as the Ministry of East African Community (MEAC) embarked on a series of sensitization programs to engage various

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stakeholders and educate them on the benefits of the integration process.

Deputy Director in charge of economic affairs Peter Njoroge said that the integration process will only be meaningful if residents of member states were informed about steps and period of fully implementation of the EAC vision and Mission.

Since its inception, the director said, the regional body has made tremendous strides that include opening up of the borders and removal of trade barriers to EAC members.

Mr. Njoroge said even as the various protocols are concluded at policy levels, deliberate efforts must be directed at mobilizing various stakeholders such as clearing and forwarding agents, traders, implementers and other facilitators of the process towards a common goal.

He spoke recently when he paid a courtesy call on Taveta District Commissioner Hiribae Nkaduda before the official opening of a two-day sensitisation workshop by the Kenyan high commissioner to Tanzania.

“The sensitization forums are expected to not only rally the people of the five member states towards a common objective, but also entrench the right attitudes amongst the stakeholders towards the integration process,” said Mr Njoroge.

The awareness forums in Taveta and LungaLunga were among other border meetings that were facilitated by the government to try and address issues that range from the EAC integration process, rules and regulations governing customs union among others.

Other emerging issues that were addressed during the forums include the roles of various government institutions such as Kenya Revenue Authority (KRA), Kenya Bureau of Standards (KEBS) and Kenya Plant Health Inspectorate Services (KEPHIS).

Mr. Nkaduda commended the progress of the integration process, but said more sensitization programs should be undertaken amongst stakeholders in order to reassure residents of the benefits that come along with the partnership.

He said concerns of border harassment and other frustrations being expressed from the business community and communities living along the country’s border may be occasioned by ignorance about the integration treaties.

“It is imperative for the MEAC in collaboration with other partners to cascade sensitization programs so as to reach those at the grass roots and ensure they appreciate the integration process and together map a way forward” he added.

A full implementation, he noted, would be realised once member states cultivated confidence and effectively address the prevailing negative attitudes and suspicions amongst its citizens through strategic engagements.

This comes at a time when there was growing tension caused by mistrust between Kenya and Tanzanian citizens over the implementation of the treaties.

Recently Kenyan traders barricadded the road leading to Tanzania protesting against harassment by the Tanzanian authorities at the Holili border point.

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35

Customs

RCTG to ease

CARGO MOVEMENT This is the first system in Africa where various public and private stakeholders are establishing a regional trade facilitation instrument.hybrids for the transport industry.

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he regional customs transit guarantee scheme (RCTG), an instrument of trade touted as the solution to the perennial challenges of border crossing in the region has attracted the interest of Ethiopia and Djibouti which are expected to join the system soon.

The first to roll-out this scheme was the northern corridor that involved Kenya, Uganda, Rwanda

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and Burundi in an effort to facilitate seamless movement of goods in the region and promote international trade.

Kenya Revenue Authority (KRA) senior deputy commissioner of southern region Julius Musyoki said the scheme has reduced freight costs and accelerated regional economic development due to its role in simplifying and harmonising customs procedures.

“I would like to urge Djibouti, Ethiopia and other countries in that transport corridor to join this scheme without further delay because it will be a tremendous achievement in promoting and facilitating trade,” he said recently in Mombasa of the two countries in the Djibouti –Ethiopia-Sudan corridor.

The official, who spoke during the sixth meeting of the RCTG Council The Transporter

CARGO SHIP: A RORO Ship (vehicle carrier) offloads at the Mombasa port. The regional customs transit guarantee scheme (RCTG) will ease movement of goods across borders. noted that customs security is one of the major difficulties in freight transport and facilitation since guarantee payments account for a high cost for transport operators.

The introduction of RCTG for transit goods between Mombasa and Uganda in December 2011 followed an extensive review of the system by customs administrations, sureties, clearing and forwarding companies and other stakeholders.

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During the roll-out, KRA issued bonds to three selected logistics companies – Kuehne & Nagel, Spedag Interfreight and SDVTransami – and circulated copies of the executed bonds to the Revenue Authority of Uganda, Rwanda and Burundi which were duly processed and acquitted.

A progress report presented during the forum however noted that some of the bottlenecks experienced during the initial stages of its implementation included lack of training for customs officers at the Malaba border and delay by revenue authorities in giving directives on how the bonds would be executed.

The RCTG scheme falls within the Common Market for Eastern and Southern African states’ (COMESA) objective to blend public and private sectors in development activities. The roll-out was a culmination of a series of meetings by the RCTG Council which were held in various countries within the COMESA trade block.

According to Mr Musyoki, this is the first RCTG system in Africa where various public and private stakeholders of competing interests are establishing a regional trade facilitation instrument.

He said trade facilitation is an important tool of economic development for developing countries and particularly landlocked developing ones.

“A landlocked country’s trade flow to a large proportion depends on transportation,” he said, adding that custom security is one of the major difficulties in freight transport and trade facilitation.

Studies by Experts from Customs Administrations (ECA) indicate that transport and transit costs are

high in Africa and especially in landlocked countries.

The average for less developed countries in Africa is 14 per cent and 17 per cent of the value of export compared to 8.6 per cent for all developing countries and higher still for many Comesa countries.

In Malawi for instance, transport costs account for 56 per cent of value of exports while in Rwanda and Uganda, the costs are estimated at 48 and 36 per cent respectively.

Mr Musyoki explained that reducing transit costs, simplifying customs procedures and improving national and regional environments are critical in expanding trade.

In his address to participants, Comesa chief programme officer Berhane Giday said it was encouraging that Tanzania Revenue Authority (TRA) had agreed to participate in the scheme.

“I am pleased to inform you that TRA has agreed to rollout the scheme in the central corridor particularly in collaboration with Rwanda,” he said hoping that the country would ‘soon’ join as full member of the Council of RCTG. He reported that the pool managers had arranged a reinsurance programme and received about Sh84 million (US$1 million) capital loan advanced by then Yellow Card Scheme.

The Northern and Central corridors are still grappling with extra costs resulting from delays along the trade routes caused mainly by non-tariff barriers, which in February this year led the East African Community (EAC) countries to sign an agreement that would see them reduce the number of road blocks along the two major corridors.

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37

Maritime

Mombasa Port targets trans-shipment business as cargo

VOLUMES GROW The call by two large ships at Mombasa port is a clear indicator of the benefits set to be realized at the port after the second container terminal is completed.

T

he volume of cargo handled

by Mombasa port in the period between January and May this year grew by 17 percent compared to similar period last year. The port received 9 million tonnes compared to 7.4 million tonnes last year. This was due to growth in the regional economies which the facility serves and dredging of the channel that has seen larger vessels call at the East Africa’s biggest port.

With regard to use of the automated systems, it was noted that the average down time for Kenya Revenue Authority (KRA) Simba

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system is 55.6 minutes while that of KPA’s Kwatos is 13.7 adding up to a approximately 2.7 days of lost time for importers during the eight weeks under review, translating to a loss of US $ 230,121 (Sh19.5 mil-lion).

Managing director Kenya Ports Authority Gichiri Ndua said the port’s containerised cargo alone grew by unprecedented 26 percent in the period to reach 389,000 Twenty Foot Equivalent Units (Teus) compared to 307,000 Teus last year.

This year, five new vessels have made maiden calls at the port due to dredging of the channel that has created capacity to accommodate

bigger vessels, Mr Ndua added.

“Shipping lines are re-routing bigger vessels to Mombasa due to economies of scale and growing demand of cargo in the East Africa region, which will now open other opportunities in transhipment business” said the MD. He spoke mid last month after receiving MSC Tia, the longest vessel to ever call at the port with a length of 261 Metres, and 5420 Teus of cargo on board.

“Before the channel was dredged, such a huge consignment would have come with 3 vessels,” Ndua said. While previously the Port has The Transporter

been accommodating ships with an average length of 200 metres and 2000 TEU capacity, it will now handle bigger ships with over 4500 TEUs. MSC Jade, a fully cellular ship with a Gross Registered Tonnage of 36,517 tons and length overall of 241meters and a draft of 11.9 meters called at the port shortly after the completion of dredging earlier in the year. The vessel with a capacity of 3000 TEU registered a performance of 33 moves per hour.

Another large vessel that made maiden call at Mombasa port was MSC Roberta with a length overall of 244 meters.

The channel was dredged to a depth of 15.0 meters in the inner channel, with a width of 300 meters in the narrowest point.

The turning basin has also been dredged to a depth of 15.0 metres.

The project, which was carried out by Dutch company Van Oord Dredging and Marine Contractors was completed four Months ahead of schedule.

The call by these ships is a clear

indicator of the benefits set to be realized at the port of Mombasa on completion of the construction of the second container terminal whose work has commenced.

Though the dredging was initially meant to provide capacity for the second container terminal, great benefits are bound to be witnessed even at the current Mombasa container terminal.

The development came even as the port managers and users were yet to establish sustainable measures to address the issue of congestion.

The stakeholders are yet to put in place sustainable measures to address the problem, a meeting held recently to review the Rapid Results Initiative (RRI) instituted in January 2012 by the Ministry of Transport heard.

While congestion has eased, reducing the volume of the containers at the port yard from over 20,000 Twenty Foot Equivalent Units (Teus) in December last year to the current average of 15,000, changes to improve port productivity are yet to be put in place.

The RRI’s achievements were attributed to enhanced monitoring and supervision during the three months from January to March.

However, the anticipated Service Level Agreement (SLAs) between Kenya Ports Authority and Container Freight Stations (CFSs) is not yet operational.

Cargo handling agencies and service providers are yet to embrace round the clock operations.

Financial institutions, clearing agents and CFS operators are yet to fully adhere to the 48-hour period within which they are supposed to transfer cargo to their facilities.

However, some CFS operators have made significant strides in achieving round the clock operations.

Mitchell Cotts is rated to have the best compliance levels at 94.36 per cent while MCT was the worst at 61.4 per cent.

Others are Awanad at 84.06, Compact at 80.34, Portside at 79.28, Consolbase 76.32, Focus 72.75, and Interpel at 72.28 per cent.

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APR - JUN 2012

39

Maritime

New rules on merchant ships to

TAME PIRACY Waking up to the reality of growing piracy attacks, several countries in the world have authorized their merchant ships to carry weapons for self-defense.

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he government has announced rules that will guide vessels calling at the port of Mombasa with Privately Contracted Armed Security Personnel (PCASP), weapons and security related equipment on board. Since 2010, shipping lines have increasingly been using private guards to escort their vessels in the Indian Ocean waters to prevent pirate attacks.

The rules, which were announced by the Kenya Maritime Authority

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APR - JUN 2012

(KMA), the industry regulator, requires notification on the presence of armed personnel to be made within 14 days prior to disembarkation and pre–requisite authorization from their flag state by the shipping line or appointed agents.

The shipping company shall apply for temporary permits for all weapons at the time of notification for approval by the Chief Licensing Officer/Central Firearms Bureau.

Details of the maritime security company will include a valid

registration certificate, written internal policies and procedures for determining suitability of the PCASPs, proof of risk assessment and assurance that all other practical means of self protection have been employed.

Documentary evidence from PCASP will include criminal background, employment history, military and law enforcement background, medical, physical and mental fitness including drug and substance use, relevant experience The Transporter

and certification in the use and carriage of firearms, travel documents and visas, the rules say.

License from the flag State to carry a firearm or its equivalent per personnel will be provided and security clearance or certificate of good conduct by the Interpol will be required.

All vessels should have a mandatory standard armoury on board.

They will be required to have reinforced bulkheads, doors, hatches and secure locks. They will also be required to have adequate lighting and key equipment such as fire fighting sprinklers and smoke detectors.

“Non compliance of the above requirements may result in confiscation of arms and ammunition for storage at the port police armoury, detention of the ship until compliance, denial of entry in future callings unless standard is met,” the rules note.

This comes in the wake of world governments authorising their merchant ships to carry weapons for self-defense. In recent months, a number of countries have reversed longstanding legal bans or serious restrictions on the direct arming of merchant ships.

The policy change comes in response to the rising number of attacks – a record 199 the first quarter this year. Even though the “success rates” of pirate attacks is falling, ransom rates are rising – doubling in the last year to an average payment of US$4 million a ship, according to a law firm that follows the issue.

The collective cost of naval antipiracy operations is rising. The anti-piracy mission – of the EU, NATO, the U.S. and scores of small nations – is an annual budget bill approaching $2 billion. As a result, many governments seem ready to embrace sea-going guards as a way to shift some of the expense of defense to the shipping industry.

Last November, British Prime Minister David announced that Britishflagged ships will be licensed to The Transporter

carry armed guards. “The fact that a bunch of pirates in Somalia are managing to hold to ransom the rest of the world and our trading system...is a complete insult,” Cameron was quoted in the press as saying. “The rest of the world needs to come together with much more vigor.”

Italy has also announced national measures of its own by stationing military forces directly on its mer-

chant vessels. This onboard naval protection will be reimbursed to Rome by the shippers.

Rome announced its new policy after the Italian cargo ship, Montecristo, was seized by pirates off the coast of Somalia. The vessel was quickly freed by helicopterborne British commandos, with no casualties among the pirates or the 23-member crew (some of whom were unarmed security guards).

But another 17 ships are currently held by pirates based in Somalia.

The U.S. has not only permitted but required U.S.-flagged ships operating in “hazardous waters” to maintain an armed defensive capability. However, the definition of “hazardous waters,” coupled with restrictions of coastal states and foreign-port states create complex issues and so American shipping companies have limited their implementation of this requirement.

Other countries undergoing policy changes on this issue include Germany, Malta, Cyprus and India.

In addition, the Netherlands and Thailand have announced they will make armed military teams available to sail on board merchant ships in dangerous waters.

Large shippers have announced that they will start hiring armed guards (including China Ocean Shipping Company, Danish-owned Torm A/S and Maersk Lines, the Danish-owned group that is the world’s largest merchant-marine shipping company.)

The policy reversal in favor of arming merchant ships was spurred by an action earlier this year by the International Chamber of Shipping (ICS), the world’s main trade organization for shipping, whose members account for 75 per cent of global merchant tonnage.

The ICS recognized officially that arms were effective when used off Somalia and that, properly regulated, the arming of merchant vessels was permissible and desirable.

The argument for arming is supported by the fact that other forms of defense and protection are proving ineffective. Shippers have tried to repel boarders by adding barbed wire and sharp metal shards to protect their ships’ sides and they have “hardened” their defenses by creating so-called “citadels” that are locked-down rooms with thick doors and radio access to captain and crew to wait safely for naval rescue.

But the pirates constantly upgrade their tactics, too. Pirates have reacted to the “citadel” tactic by burning the ship or at least wrecking the sections of the ship they can reach. Armed convoys fail when individual ships stray enough to be picked off. This has sparked an entrepreneurial move in setting up a private navy called Convoy Escort Programme Ltd, flying the Cypriot flag, to escort ships across through the Gulf of Aden – for a fee of US$30,000 per ship.

APR - JUN 2012

41

Infrastructure

DONGO KUNDU: Project takes baby steps The bypass will open up south coast and traffic jams along the Mombasa-Nairobi road at the Miritini stretch will be a thing of the past‌it will improve evacuation of cargo from Mombasa port.

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The Transporter

T

reasury’s announcement last month that a Sh28 billion loan for the construction of the Dongo Kundu bypass had been signed with the Japanese government has excited the business community and transporters across the coast.

The proposed 17.5 kilometer bypass, also referred to as the Mombasa City Southern bypass will start near Miritini, West of Moi International Airport on the central mainland and connect to the South mainland along Likoni-Diani road at Pungu village.

The bypass will also connect the port of Mombasa’s new container terminal whose construction is expected to begin soon. Kenya Ports Authority (KPA) will rely on the planned bypass to improve efficiency of delivering cargo out of the port.

Motorists from West of Mombasa heading towards the South Coast will not require passing through Mombasa Island, once the bypass is ready. This will also ease congestion at the Likoni ferry crossing and connect Kenya to Tanzania along the Mombasa- Lungalunga road.

Transporters said once complete, traffic jams along the MombasaNairobi road at the Mirtini stretch where trucks spend hours and are delayed on their way to the port and as they leave Mombasa, would be a thing of the past.

“There will be improved turnaround of trucks and transporters will save on massive losses they have been incurring as a result of tear and wear due to dilapidated roads,” said Kenya Transport Association (KTA) chief executive officer Jane Njeru.

The tourism stakeholders also welcomed the news, but said that there was need to fast-track the construction. “That was the most fantastic news the region has ever heard from the government,” said Mombasa and Coast Tourist Association (MCTA) chairman Mohamed Hersi, adding that since the project was “long overdue, it should not be allowed to drag. It

The Transporter

should be expedited so that the south coast can open up.”

For decades now, Mombasa residents have had to make do with narrow roads as the population and the number of vehicles grew, braving traffic jams especially on Nyali Bridge and Makupa courseway, the two island links on the north and west of Mombasa respectively.

Residents living in Mombasa

west have to endure traffic gridlocks at Kibarani which is a black spot, with matatus taking more than three hours to cover a distance of less than five kolometres.

The hassle and bustle associated

with the Likoni channel crossing has also cut off the south coast over the years, robbing the area of investment opportunities and a drawback to developments in tourism, despite the pristine beaches there touted to be of world class.

During a meeting to address relocation issues with those who will be affected by the project in Likoni recently, the Kenya National Highways Authority (KeNHA) asked the project consultants – Japan International Cooperation Agency (JICA) – to fast track the process so that construction starts a year earlier.

JICA officials said preliminary designs for the bypass had been completed while work on detailed designs would start early next year. “We are considering the proposal and will advise the concerned parties accordingly,” JICA team leader Seumu Oshta said.

Ms Clara Ouko, a public relations officer at KeNHA said the government was expected to sign final loan agreements soon after which a consultant to carry out the detailed designs would be sourced.

She said in order to speed up the construction, the project will be divided into three packages and tendering will be done separately.

ROAD WORKS: An official of Japan Ports Consultants (facing page) shows the route of the bypass during a stakeholders’ consultative meeting at Likoni Catholic Church recently. The consultants (above) discuss a point with a Kenya National Highways Authority (KeNHA) official.

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43

Regional

The first will be from MiritiniMwache-Kipevu and connect to the second container terminal at the port. The second package will be Mwache-Tzunza-Mteza while the third is Mteza to Kibundani and to the Likoni Lunga Lunga road.

“We have also prepared the request for proposal of the consultant who will carry out the detailed designs and forwarded them to JICA for clearance,” she said.

She added: “By January next year we will have secured the consultant. Relocation issues are expected to be dealt with as the consultant works on the designs and construction is expected to commence around October 2014, with the project expected to take slightly over three years if it goes by schedule.”

The development comes in the wake of efforts to decongest Mombasa town which for several years now have been dogged by controversy over unfinished projects.

Recently, the Kenya Urban Roads

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ROAD WORKS: Construction work going on at Jomvu, on the Mombasa-Miritini road where motorists experience massive traffic jams due to the poor state of the road. The Kenya National Highways Authority (KeNHA) is rehabilitating the road at a cost of Sh300 million.

Authority (KURA) announced intention to construct a new bridge at the English Channel where the old Nyali Bridge existed, but faced stiff opposition from owners of Tamarind Village. The matter is pending in court.

Another project that has been on the cards is the expansion of Makupa courseway and the 10-kilometre road stretching from Makupa to Jomvu. The project has also faced bottlenecks, with road reserves alleged to have illegally been allocated to private investors.

Tourism stakeholders have also complained that tourists miss their flights after spending hours in traffic jams, which was having a negative impact on the sector. “If we are to reclaim the glory of this town as a tourist destination we have to do something about this road which is the gateway to Mombasa,” said Mr

Hersi.

In April, a high powered government delegation visited the Makupa courseway where members of the cabinet committee on infrastructure vowed to bring down structures said to have been constructed on grabbed land.

Roads minister Franklin Bett said the road reserve had been encroached and the courseway which is supposed to be 60 metres wide measures only 36 metres.

“We have no choice and the government will not hesitate to repossess the road reserve. It has been difficult to attain the width of the road because of these structures but we are determined to go to whatever length to ensure that the expansion is done soonest possible,” said the minister.

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TYPES OF CARD • Post paid Card • Pre paid Card CARD FOOTPRINT Countrywide Card acceptance: The Card is accepted in many Shell Service Stations countrywide.

QUALITY PRODUCTS Kenya Shell Ltd was awarded an ISO 9002 certification confirming that our products meet the highest specification standards. You will be guaranteed of these standards along with our portfolio of quality products that includes V-Power, Unleaded Extra with Fuel Economy, Diesel Extra with Fuel Econ-omy, Quality Lubricants (Rimula & Helix) among others.

QUALITY SERVICE At Shell we offer quality and superior service.

We have well trained experts as-signed to provide a full range of services at our stations as well as at the Card Centre.

For further information on Shell Card, kindly contact: Kenya Shell Card centre Laiboni Centre, Lenana Road, Kilimani P.O.Box 43561 – 00100 GPO Nairobi, Kenya Tel +254 -20- 3205555 Fax: 254 20 2714575 Email: Cardcentre@ksl.shell.com

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Regional

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The Transporter

ONLINE SYSTEM to ease movement of goods A three years plan to automate Kenya Bureau of Standards (Kebs) operations has been announced. Currently, Kebs relies on manual processes to clear goods at the port of Mombasa, which has in the past been exploited by unscrupulous traders to import counterfeit goods into the country.

P

eter Otieno, the managing director of Petrosa Agency, a clearing firm, says capacity constraints have hindered enforcement of standards in the country.

Kebs operates a Pre-export Verification of Conformity (PvOC) programme that provides for inspection of certain goods due to their environment, health and safety dangers before they are shipped into the country. The goods are issued with a Certificate of Conformity (CoC) at the country of origin by agencies that Kebs has appointed.

In some cases, Kebs allows entry of goods without CoC for inspection locally, but importers are supposed to pay a 15 per cent penalty on the value of the goods.

However, unscrupulous traders have been reported having colluded with Kebs officials to forge documents and pass the goods either without paying the penalty or without being subjected to verification of conformity to certify their compliance with local standards. “Most goods from China and the rest of Asia that do not meet the local

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Regional also reduced the incidences of corruption by making each point of the transaction chain accountable.

This, it is touted, will help facilitate free and faster movement of goods and services within and between partner States and is seen as a major stride in eliminating trade barriers that have affected trade within the East Africa region.

Kebs corporate communication manager, Patricia Kimanthi, in an earlier interview said that the manual documentation process at border points is prone to manipulation by unscrupulous importers.

The new system, according to Eva Oduor, Managing Director of Kebs

INSPECTION: Customs and port officers examine a cargo container to verify its content. Some unscrupulous traders collude with Kebs officials to forge documents and pass goods without them being subjected to verification to certify their compliance with local standards.

standards still find their way into the local market since the system of establishing conformity has loopholes that were exploited by traders to bring in fake goods,” Mr Otieno said.

The Sh60 million single window project to integrate online quality information system will ease the clearance of goods from the port.

The system will serve as a trunk to provide real-time interactive online capturing, updating, and processing of relevant information on imported and certified goods across the East African countries.

The new software will integrate the agency to the existing Kenya Revenue Authority Simba system and Kenya Ports Authority Kilindini Waterfront Operating System (Kwatos).

The two electronic systems have improved efficiency in cargo clearing at the port of Mombasa and

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will help deal with barriers such as counterfeit and help importers track in real time progress of goods at the port.

“National standard bodies, businesses, consumers and other regulatory authorities within EAC member States will use it to extract and input information on product certification, import inspection and consumer concern,” she said.

A trader would be able to track progress of his or her imports in real time. The system will be implemented in three phases over a five-year period at a total cost of Sh300 million.

The East Africa Common Market Protocol is a key part of the integration of East African Community Partner States. Since its establishment, the protocol continues to encounter challenges, which constitute to non-tariff barriers to trade.

PVoC explained PVoC is a conformity assessment programme based on Article 5 of WTO-TBT agreement, administered by Kenya Bureau of Standards on behalf of the Government, carried out by the appointed KEBS Verification partners on regulated goods in the country of supply.

The overall objective is to minimize the risk of unsafe and substandard goods entering Kenyan market, thus ensuring health, safety and environmental protection for Kenyans.

To ensure equal national treatment, in line with WTO, all Conformity assessments are based on Kenyan technical regulations (i.e.

Kenya Standard) where they exist. However, in the absence of Kenyan technical regulations, International Standard or technical regulations applicable in the country of supply apply Three (3) inspection companies (PVoC Agents) namely; Messrs Bureau Veritas, Intertek International and Société Générale de Surveillance (SGS) have been contracted by KEBS to undertake PVoC activities in a new contract effected early this year. The new contract provides for more than one PVoC Agent per region thus providing a choice to the exporters/ importers.

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Advertisers’ Feature

Trainer with a PASSION

E

very year over 200 truck drivers take courses run

by DT Dobie, MercedesBenz general distributor in Kenya. The aim is to familiarize themselves with the operations of Mercedes trucks and the basics of safe driving. DT Dobie is a partner in “Safe Way Right Way”, an African Road Safety Initiative.

For Joe Mungai, a trainer for DT Dobie, safe driving is a priority, the reason he supports this program.

Particularly for this purpose he has been trained in Germany and is also a member of the world-wide Mercedes-Benz Driver training network. Joe has been working in the automobile industry for over 30 years and still does his job with passion.

“Trucks cost the owners a great deal of money and the driver needs to understand the vehicle to be able to minimize fuel consumption and wear and tear. The three day driver training course entails a two day theory session which focuses on vehicle features, fuel efficient driving, issues of professionalism, respecting and taking pride in being a good driver and safety for the driver and other road users,” he explains.

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The road safety should be increased and the accidents should be reduced. Therefore driver training in Africa is offered for truck drivers and for Bodaboda drivers (bicycle taxi) and Matatus (collecting taxi). “On the third day of the course we take a truck on the road where all the aspects that have been learnt in the theory classes are practiced,” says Joe, adding that the drivers take the wheel of the truck one by one and while he analyzes their driving skills and corrects wrong habits that are not in keeping with modern vehicles.

Asked about the origin of the programme, Joe responded: “The programme developed from the needs observed in the government

and the various private companies I worked for during the years. I realized that most fleet operators have difficulties with vehicle breakdowns and fuel consumption that lead to companies folding as they cannot make a profit.” Thus the idea to offer driver trainings was born. Since then, Joe has gone to great lengths to educate truck owners on the importance of training the drivers. “Once employers realize that driver training results to lower costs in terms of breakdowns, accidents and fuel consumption, they request for the training by themselves”, says Mungai.

The drivers can therefore contribute substantially to the reduction of costs for the company. When not training in DT Dobie, Joe goes to the customers with large fleets and trains their drivers at their premises and on the road. The training has been extended to the East African region and he has so far trained drivers in Uganda, Tanzania, Zambia, Malawi and the Democratic Republic of Congo.

In conclusion, Joe said: “With over 24,000 trucks on the road in Africa, I am happy that Kenya Transporters Association Limited has taken the initiative to train drivers as this will make a difference on the roads. The program is named Road Safety and prepares the drivers for critical traffic conditions. My vision is to raise a crop of senior drivers in each fleet to teach the younger drivers. This will have a quick return for fleet owners and benefits for drivers.”

TRAINING: Joe Mungai (in tie) takes truck drivers through a training session (top). Joe (in cap) takes a driver through the practical (left)

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Regional

Corruption at checks hindering

REGIONAL TRADE At some roadblocks, police officers solicit for small value bribes of between $1-5 per truck, which ends up as a large cost to businesses.

T

he integration process of the East African Community (EAC) countries has continued to suffer major setbacks, with businesses experiencing a myriad of challenges resulting from government bureaucracy to lack of commitment by the states to key statutes of the EAC treaty.

For instance, inefficiencies along transport corridors continue to be a major hindrance to trade, with Uganda leading other East African Community (EAC) countries in corruption at police checks at 94 percent followed by Kenya at 70 percent, according to the 2011 Business Climate Index released last month. Rwanda is the third at 63 percent while Tanzania recorded

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57 percent with Burundi recording a low of 33 percent.

The Arusha-based East African Business Council BCI 2011 survey was carried out between September and December 2011, with the main aim of collecting and disseminating information on business environment in the EAC countries in order to track improvements or deteriorations on Non Tariff Barriers (NTBs) and other business climate factors.

Efficient implementation of police checks procedures and administrative requirements at roadblocks as provided for in respective national laws have been compromised by lack of equipment to scan content of transport goods, notes the report.

At some of these roadblocks, there is continuous practice of soliciting for small value bribes of between $1-5 per truck, which ends up as a large cost to businesses when all the trucks plying the Northern and Central Corridors are added up, said the report, adding that this is made worse by the time lost at each roadblock averaging at least 10 minutes. “The region therefore needs to install scanners on the major transport routes as part of efforts to minimize the number of roadblocks,� it says.

The report further adds that police departments experience institutional weaknesses in passing information on EAC commitments due to low budgetary allocations, poor

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APR OCT- -JUN DEC2012 2011 |

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Regional

At some of these roadblocks, there is continuous practice of soliciting for small value bribes of between $1-5 per truck, which ends up as a large cost to businesses when all the trucks plying the Northern and Central Corridors are added up. communication with the ministries in charge of trade and EAC matters and long chains of communication before correct information is passed to executing officers.

The region does not seem to have any set cost and time benchmarks for completion of police checks, which needs to be addressed as part of the harmonisation process, adds the report.

Weighbridges regulations and procedures sometimes lead to unintentional overloading, occasional charging of extra weights in some stations due to faulty scales and constant system breakdowns due to power interruptions leading to delayed completion of weighing process.

There is a limited budget for efficient weighbridge operations and poor online connections at weighbridge stations. Bureaucracy in correspondences between management and operators at weighbridge stations and resistance to reform by some transporters has led to non-conformance by trucks, notes the report.

The survey found that Kenya and Tanzania each have 12 and 13 weighbridges along the Northern

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and Central Corridors respectively, which are used to check for compliance to weight of the goods being transported.

“The weighing process on average takes between 1-3 hours, while the stations are also an avenue for bribes ranging between $1-50 as reported by most of the drivers,” the report says.

Considering the large number of trucks that ply the Northern and Central corridors, the time spent and associated bribery incidences are enormous costs for the business community.

These bottlenecks need to be addressed through harmonisation of EAC weighbridge regulations and modernising the weighbridge equipment to ensure speedy and efficient weighing process and substantial reduction of bribery incidences, recommends the report.

The survey, adds the report, received numerous concerns from the business community to the effect that efficiency at weighbridges is affected by lack of harmonized procedures at EAC and even at national level where some stations weigh per axle while others weigh on the Gross Vehicle Weight.

“It is therefore important to harmonize weighbridge procedures at national and regional level, and to ensure regular calibration of the scales so that the same readings are recorded at all stations,” it says.

In addition, it is necessary to modernise the scales to ensure accuracy and speedy weighing process, which would go a long way to reducing bribery incidences when transport vehicles are accused of overloading while the faulty scales may have given incorrect readings.

The report pointed out reason for the bribery as overloaded vehicles, incorrect cargo documents, speeding, defective vehicles and driver’s papers not being in order.

It also mentioned problems created by weighbridge procedures on compliance, noting that the complexity of the processes leads to unintentional overloading and delayed delivery of products to markets.

According to the report, customs procedures have improved in Burundi by 50 percent compared to 20 percent rated Tanzania Mainland and Zanzibar, while other states have shown improvements by having much percentages than what was scored by Tanzania.

Uganda recorded 45 percent, while Kenya has 41 percent and Rwanda improved by 36 percent.

The survey found out that although congestion at the two EA Ports has continuously been cited as a key bottleneck to fast and efficient clearance of imports and exports, this is due to insufficient and inefficient cargo handling facilities, poor speed in transferring cargo from incoming vessels to Inland Container Depots and insufficiency of warehousing facilities for incoming cargo.

The survey also found out that Container Freight Stations, which were originally introduced to address ports’ congestion by facilitating the direct movement of cargo from the port area, have been unable to cope with increased demand for containerized cargo.

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Pictorial The Executive Secretary of Northern Corridor, Mr. Donat Bagula and the CEO of KTA Limited, Ms. Jane Njeru, during her visit to the server room at Northern Corridor which is currently hosting the Transport Observatory and GPS system.

Mrs. Hanifa Mohamed-Regional Operations Manager - Coast (left) presents a cheque to KTA CEO Ms. Jane Njeru during the AGM. At the centre is Mr. Hamza Rengwa - Senior Corporate Relationship Manager.

Mrs. Milcah Kinyua - Assistant General Manager, General Business, CIC Insurance Group Limited (centre) and Mr. Peter Gitonga - CIC Area Manager - Coast (left) present a cheque to KTA CEO Ms. Jane Njeru.

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APR - JUN 2012

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