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The Kenya Ports Authority has called on all stakeholders in the cold logistics chain to take advantage of the new markets abroad that are being opened by the government.
KPA managing director Captain William Ruto said the numerous trips of President William Ruto have had a significant impact in opening up new markets for fresh and horticultural produce.
“Our Head of State has been making inroads for us in the markets in Europe and other countries that he has visited. For us as KPA, we are here to support farmers,” Ruto said.
Speaking in Naivasha after a tour of Sunripe Vertical Agro’s Acacia farm, Ruto said KPA is focused on enhancing the cold chain logistics in the region.
He said transportation of fresh produce is a critical aspect of Kenya’s economy.
“Thus, reliable cold chain infrastructure is essential to ensure the quality and safety of these goods as they move through the supply chain,” Ruto said.
The volume of export of perishable reefer cargo has been increasing throughout the years.
“In the first quarter of this year we registered 6,818 TEUs compared to 6,416 TEUs in a similar period last year, registering a growth of six per cent,” the director said.
This is because there has been a global shift in movement of fresh produce and horticultural commodities from the conventional modes of transport from air to sea freight.
Sea freight is gaining preference because it offers shippers business flexibility owing to its ability to handle bulk cargo at a cheaper cost compared to air freight.
In addition, sea freight contributes to environmental sustainability due to less gas emissions in comparison.
“That’s why we are saying we need to change from air to sea transportation in terms of decarbonisation,” Ruto said.
KPA has adopted a green channel to grant priority to refrigerated cargo at weigh bridges and all entry points including the port gates and scanners.
Some 1,667 reefer electrical plug-in points have been installed in all the ports in the country.
The Naivasha Inland Container Depot already has 20 such plug-in points with more expected to be installed as demand increases.
“This is aimed at promoting and boosting off-take of fresh sea-bound produce via the SGR to compliment the cargo transport by road to the port,” Ruto said.
He called on stakeholders to embrace the Naivasha ICD as it is strategically positioned.
Sunripe Vertical Agro managing director Hasit Shah said the private sector needs to work together to take advantage of the opportunities President Ruto is creating.
Shah said President Ruto’s trips abroad have opened up new markets for them.
The agriculture sector constitutes 25 per cent of the workforce in Kenya and contributes 25 per cent to the GDP. There is a need to make agriculture more attractive to young people.
“Majority of our farmers are in their 50s, 60s and 70s. None of the young ones want to go and do the hard work in the fields. It’s very important we create employment for the youth,” Shah said.
Sunripe Vertical Agro, which produces avocados from the nursery to the plantation, harvesting, processing, and shipping, will, through Maersk Line, be doing the first containers by railway.
“It brings the cost down, makes us competitive and takes us to all these markets faster,” Sha said.
He lauded KPA for providing the necessary infrastructure for reefer containers to be handled at the Mombasa port and other inland container depots like Naivasha.
The authority also gives priority to reefer containers when they arrive at the port.
Shah said the national strategy on agriculture needs all stakeholders to work together. “Because we are talking about avocados today, tomorrow there will be other products. So we need to work together with KPA, and the airlines and the Kenya Aviation Authority, because those are our exit points."
Stakeholders like the Kenya Revenue Authority, Horticultural Crops Directorate, and Kenya Plant Health Inspectorate Services make one big team with different roles.
“It is very important that we understand each other’s roles and facilitate them rather than frustrate them. We shouldn’t frustrate because the competition is not the next farmer, the competition is the next country,” Shah said.
To sell Kenya’s products more efficiently, all stakeholders in the value chain need to work together to improve Brand Kenya.
“I am waiting for the day when Eliud Kipchoge will stand here holding my avocado saying, ‘I eat Sunripe avocados’. My sales will quadruple in Boston, New York. Those guys will buy all the Kenya avocados,” he said.
Apart from the need to market Kenya, the country also must deliver what it promises.
However, the taxes the government keeps increasing and imposing new ones do not augur well for business. Shah said businesses need a stable environment to operate.
“We can’t have taxes that go up and down that we don’t know how to plan. Avocado trees take five years and the orchard will go for 25 years. We need a stable environment and a stable exchange rate, which is facilitative. We can’t have a 1.5 per cent export levy. We really need to think about who we tax, how we tax, how we stimulate our economy,” Shah said.
This year, Kenya will ship 45,000 containers, with about 10,000 containers to be shipped from the Acacia farm of Sunripe Vertical Agro in the next five years.
In 20 weeks, they will be shipping 20,000 containers, translating to a container of avocados a week.
“It all needs to go by rail because to send a container from Naivasha to Mombasa is more expensive than from Mombasa to Shanghai. Why should that be the case? Once we start putting our containers in the railway we reduce a thousand dollars and become competitive,” Shah said.
Maersk Line representative Karen Rono said an efficient port like Mombasa is key to the export business.
She said apart from the flagship avocado produce in Kenya, more products including cut flowers and chilled vegetables will be shipped to European and other international markets.
“There are also a lot of conversations on decarbonising our logistics. I see KPA as very key in developing that economy,” Rono said.
She however said even with the rail network, containers need to get to the port much quicker and reduce the times that are off power.
Most agro customers pack during weekends and this needs other government bodies to work on weekends so as to be efficient and meet the timelines.
“So that when a reefer container leaves wherever it leaves from it should go very seamlessly into the port. And as a shipping line, we will load it and ensure it gets to its destination fast,” Rono said.