Mombasa port in a privatisation storm

Kenya’s plan to privatise the port of Mombasa is off to a rocky start with a group of members of parliament from the Coast province calling for its stoppage.

They claim that Transport Minister Chirau Ali Mwakwere is pushing it on behalf of a few individuals intent on “robbing the Coast of its only resource.”

Sources told The EastAfrican that the privatisation of some berths at the port of Mombasa is interpreted in some quarters as a ploy to scuttle plans for the construction of the second container terminal that is funded by the government of Japan to a tune of Ksh23 billion ($302 million).

The Cabinet approved privatisation of the port in December last year and a Kenya Gazette notice published on August 14 endorsed the plans.

According to the notice, the government intends to fully privatise stevedoring services and development of berths 11 to 14 at the port and the Eldoret Container Terminal.

The Privatisation Commission of Kenya is expected to select a firm that will develop and implement the privatisation proposal.

Four firms have so far tendered for the consultancy job, including local audit firm PriceWaterhouseCoopers, CPCS Transcorm Ltd, HPC Hamburg Port Consulting GmbH and Maritime and Transport Business Solutions.

Details have now emerged that the planned privatisation of berths 11 to 14 could just be a ploy to secure control of containerised cargo by a section of industry players before the construction of the second container terminal that is expected to be ready by 2012.

A source privy to the activities who did not want to be named due to the sensitivity of the matter said that there are plans to hand over the four berths to a single player.

According to former Voi MP Basil Mwakiringo, those pushing for the privatisation are not following the Energy Communication and Public Works parliamentary committee (1997 to 2002) recommendations.

“The committee recommended that the existing infrastructure should not be sold to any private investor and whoever wants to invest at the port should be asked to dredge and construct their own berths on a build operate and transfer basis,” he said.

He said they also suggested that the locals form co-operatives and partner with foreign investors who will be contracted for the privatisation so that Coast people can benefit.

Mr Mwakiringo claimed that those pushing for the privatisation of the port are being used by a few powerful individuals who want to benefit themselves but do not have the interests of the locals at heart.

Now MPs are blaming Mr Mwakwere for this omission.

The Coast Parliamentary Group has summoned the Minister to explain how the process will be carried out, according to Malindi MP Gideon Mung’aro.