Maersk has been operating at the newly built container terminal 2 (CD2) at the port of Mombasa for the last 3 years for free, Ordinarily this shouldn’t happen.
If a shipping line is contracted to handle a terminal, they are meant to pay the port operator (KPA) a fee. Usually revenue share is 50:50-shared between shipping line and port operator
CD2 is the terminal that solely handles all of G.o.K imports.
From military hardware to medicine to fertilizers everything govt imports comes through CD2.
The total value of business at CD2 every year is about Shs.20 Billion or $200 million. For the last 3 years Maersk has been the shipping line that brings in govt cargo and handles it at CD2
This means that Maersk has 100% monopoly over what the Government of Kenya imports. Whatever govt imports from China or Japan or U.S or Spain-Maersk ships it to Kenya.
The Question then is; why does a foreign shipping line have monopoly over what govt imports?
President Uhuru is trying to change this by having a Kenyan state owned shipping line take over the govt of Kenya imports. In doing so he has revived Kenya National Shipping Line (KNSL) KNSL was started in 1980s to be Kenya’s official shipping line. KNSL is majority owned by KPA.
Now-because KNSL has no ships it has partnered with Mediterranean Shipping Company-MSC. MSC is the second largest shipping line globally. The arrangement between KNSL and MSC is structured to have KNSL become the parent company while using MSC assets.
MSC has access to 550 ports globally. This means KSL now can access 550 ports globally.
It also means that when KSL takes over CD2, a Kenyan company will be responsible for shipping and handling G.o.K cargo. G.o.K will no longer rely on a foreign firm to import its cargo.
KNSL has committed to pay the port operator 50% of total revenue. Maersk on the other hand pay nothing. Mind you CD2 was built through a loan from JICA. The loan settlement period is 40 years. If KSL takes over and pays the 50% revenue share-KOA will payoff the loan 15 years earlier than the scheduled date.
Maersk is behind port privatization story. Newsdeck Investigative desk has learnt Maersk has sponsored Muhuri and Mohammed Ali to stop a Kenya owned shipping line from bringing in its own cargo.
Hussein Khalid Muhuri CEO has received over 4 million euros to sponsor from Danish NGO-FCI to sponsor attacks against the State takeover of CD2
Jicho pevu Nyali MP’s 2017 election was funded fully by Maersk. It is a question why a person born and raised in Thika and Isiolo suddenly decided to run for a seat in Mombasa. It’s because Maersk needed a mouthy Nazi to do their bidding and hold brief for them.
Neo-colonialism in our Port?
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