East Africa ports set to drive the regions growth

East Africa is emerging as a top logistics and shipping hub. Kenya and Tanzania are considering expanding their ports in Mombasa and Dar es Salaam and building new ones to cash in on the growing cargo business. The East African coast, particularly the ports, is said to be one the greatest drivers of the region’s growth in the next decade. Is this realistic or far-fetched? Does your firm see things this way? More than 90 per cent of global trade moves on the ocean, and ports are an essential cog in this vital wheel, enabling countries to trade with one another in an efficient and reliable manner, as well as open up new markets. The absence of ample port capacity, coupled with outdated infrastructure and/or inefficient operations, can stifle an economy.

In this region, the hinterland countries are highly dependent on coastal countries. Mombasa port is not only the gateway to the Kenyan market, but also to Uganda, South Sudan and others. The Dar es Salaam port is the gateway to key markets such as Rwanda, Burundi, eastern DRC and Zambia. However, highly efficient ports with sufficient capacity will never be enough: You have to look at all the aspects of the supply.

How do East Africa’s ports compare with those of other regions where you have done business? How far do the region’s ports have to go to attain world-class standards? The performance of East African ports is more or less in the middle of the pack in terms of key indicators, including berth productivity and vessel waiting time, compared with the rest of Africa.