19 companies submit bids to manage second terminal at Kenya’s Mombasa Port

portkenya-ChooYutShing-flickrNineteen logistics companies have emerged bidders to manage the second container terminal at Kenya’s Mombasa Port, which has a capacity of 450,000 TEUs

The bids were opened in Nairobi last week for the port’s second container terminal, which is likely to be completed in March 2016 and have a capacity of 450,000 twenty-foot equivalents (TEUs).

Muthoni Gatere, general manager of legal services at Kenya Ports Authority (KPA), said, “After two weeks, we will issue the bidding documents to be filled within 45 days and returned to KPA. After going through the bidding documents, we will require about 60 days to scrutinise and pick the winner.”

The winner of the bidding process will operate the terminal for 25 years, following which the firm/firms can apply for renewal of the contract, added port authorities.

The applicants include:
– APM Terminals
– Gulftainer
– Hutchisons Ports Investments
– DP World Ltd
– Bjerke Terminals
– Adani Ports and Special Economic Zones Ltd
– Transnet SOC Ltd
– Eurogate Ltd
– Makupa Transit Shades Ltd
– Cosco Pacific Ltd
– International Container Terminal Ltd
– China Merchants Holding International Co Ltd
– CMA/CGM SA and Terminal Investment Ltd SA

Some firms have applied as joint ventures (JV):
– RL and Mitsui Co Ltd
– Darian Ports Co Ltd and China Roads and Bridges Corporation
– PSA Terminal Marubeni Corporation and Multiple Hauliers EA Ltd
– SSA Port Terminals and Interpel Investment Ltd
– Bollore Logistics, Toyota Tsusho Corporation and Grup TCB
– Mitsubishi Corporation and Freight Forwarders Kenya Ltd

The KPA invited logistics companies to apply to operate the new terminal in December 2014. The first phase of the US$300mn terminal will comprise two berths, due to be handed over by the contractor.

The first container of the Kenyan port is currently being managed by KPA, but port management stated this was the first time a container terminal would be operated by a private entity. Gatere along with Justus Nyarandi, general manager of corporate services at KPA said the decision to allow a private company to manage the new container terminal was aimed at improving services.

Kenya’s Mombasa Port has been named sub-Saharan Africa’s second biggest port after South Africa’s Durban port, after registering one million TEUs.

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