STAND-OFF

Clearing firms protest new container charges

KPA is said to have contracted a private company-Mercantile Cargo Terminal Operations Limited to provide container stripping services during verification.

In Summary

•More than 600 clearing firms at the Nairobi ICD downed tools on Monday.

•KPA is accused of introducing charges of between $120 and $200 for verification of containers.

Some of the containers at the Embakasi ICD /PATRICK VIDIJA
Some of the containers at the Embakasi ICD /PATRICK VIDIJA

Clearing and forwarding firms have vowed to ground port operations if Kenya Ports Authority(KPA) fails to revoke the new 'verification fee' introduced on Monday.

They also warned that unless the fee is reviewed, there will be delays in cargo clearance and an imminent rise in the cost of doing business as the cost will be passed to consumers.

Yesterday, the clearing firms accused KPA of ambushing them with a $120 (Sh 12,099) verification fee on a twenty-foot container and between $160 (Sh16,132) and $200 (Sh20,166) for 40-foot containers.

More than 600 clearing and forwarding firms, majority operating at the Inland Container Depot-Nairobi(ICDN) yesterday paralysed operations at the KPA's Embakasi facility, causing a cargo clearance backlog.

KPA is said to have contracted Mercantile Cargo Terminal Operations Limited to provide container stripping services during verification, hence the directive to meet the costs.

The Kenya International Freight and Warehousing Association (KIFWA) termed the move 'illegal', accusing KPA of failing to consult and issue a public notice before implementation.

“You cannot wake up one morning and decide to introduce charges. If they (KPA) are short of resources they should consult and not frustrate the business community,” Kifwa national chairman Roy Mwanthi told the Star.

He said the authority should follow the proper channel before introducing or adjusting any tariffs, which include public participation and at least a month's notice.

“Verification charges are not within the KPA tariff and we are worried why KPA is enforcing such a directive. This is wastage of time and clients cannot accept such a move,” Mwanthi said.

By noon yesterday, all containers subjected to verification had not been verified.

 

Traders are further concerned over the security  and safety of their goods during opening of containers for verification.

“When this private company is allowed to bring its own gang to the ICDN to offload containers for verification ,who will be responsible for the goods in case of theft,” Mwanthi posed.

The Nairobi ICD serves the vast Nairobi industrial area, hundreds of businesses in the capital, industries in Thika and other parts of the country.

Importers most affected by verification include small traders who import consolidated cargo.

The Embakasi facility is served by the Standard Gauge Railway(SGR) which moves an average nine trains per day with 44 wagons each, mainly imports from the Port of Mombasa.

The depot has the capacity of handling up to 450,000 twenty-foot equivalent units at a go.

Reached for comment, KPA manager invcharge of ICD Peter Masinde said mangment was in a meeting with stakeholders, and would respond later.

“We are currently at a public forum, let us talk later," Masinde said.

He could not be reached by the time of going to press.

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