Presented by Antony Murithi Corporate Development, KPA

1. SHIPPING,TRADE TRENDS AND THEIR IMPACTS ON PORT INFRASTRUCTURE Partnering with the Media to Promote understanding of the Port Dynamics and Transport logistics along the Northern corridor Presented by Antony Murithi Corporate Development, KPA 20thNovember 2012Mombasa Continental Resort and SPA

2. Content • Introduction • Drivers of Global Trade • Trade Pattern • Evolution of Shipping • KPA Port Performance • Impact on Port Developments • Conclusion

3. Introduction • Structural changes in international trade and the evolution of maritime transport have a direct impact on port growth and expansion

4. World Seaborne Trade • Maritime accounts for 80% of the global • World Seaborne Trade by Cargo Type and Country Group (2010) trade

5. Key Drivers of Global Trade • Globalization • Containerization • Regional integration • Transport and communication • De-regulation and liberalization of trade and FDIs • Rapid growth of emerging and developing countries (commodity boom) • Peace and Security

6. Cargo Profile ('000' Dwt): 2007-2011

7. Trade Pattern: Origin of Imports (‘000’ tons): 2011

8. Trade Pattern: Destination of Exports (‘000’ tons): 2011

9. East-West Shipping Routes • Off the Main East West Liner Trade Routes

10. Since the 1960s and 1970s vessel capacity grew, individually and collectively Only ten years ago, the largest Panamaxvessels carried 4,400 TEU Evolution of Container Trade

11. Evolution of Container Trade • Today, the threshold of post Panamaxmega carriers of 15,000 TEU and soon to be surpassed when Triple E – expected to raise the threshold to 18,000 TEU (expected in the market by 2013)

12. Evolution of Shipping

13. Evolution of shipping

14. Evolution of shipping • In 2008, a global container fleet of 4,661 vessels held a capacity of 12.1 million TEU • Designs for vessels as 18,000 TEU are expected in the market by 2013 • In 2020, vessels of up to 20,000+ TEU are expected • This will in turn drive the radical reduction of port calls on major route and push for development of global mega ports served by fully integrated global networks

15. Evolution of shipping • As a result of dredging the Port of Mombasa received the highest number of “first-calls”, with MSC TIA being the largest with 261m length overall (LOA) and carrying capacity of about 4000 TEU

16. Impact on Port Infrastructures • Modern handling equipment- size of STS gantry cranes depends on ships size • Higher Drafts- puts pressure to carry out expensive dredging works (channel, berth) • Improved cargo handling capacity: yard, new berths • Intermodal facilities: rail and road • IT infrastructures: cargo operation systems, traffic management in the port, billing, gate operations etc. and their integration • Improve port planning and operations

17. Measures taken by KPA • 24/7 Operations • Development of CFS • Dredging of Mombasa Port • Procuring Additional Equipment • Construction of Berth 19 • Integrated Security System • Second Container Terminal • Development of Crude Oil Handling Facility • Development of DongoKundu Free Port • LAPSSET

18. Conclusion • The port has increasingly been receiving larger vessels, which includes Panamaxvessels • The port has experienced one of the highest growth rates in traffic • Various investments and other measures have been undertaken to serve the growing traffic • There is need for concerted effort by all stakeholders to facilitate cargo clearance and cargo fluidity

19. THANK YOU