The role of Container Freight Stations in Enhancing Port Efficiency James Rarieya

1. The role of Container Freight Stations in Enhancing Port Efficiency James Rarieya

2. CONTAINER FREIGHT STATIONS AND ICDS • CFS are not a new phenomenon in the maritime industry! • In shipping glossary terms a container freight station represents an area designated by a carrier to load or unload goods from containers. • In the EACMA, a CFS is referred to as an Internal Container Depot! • In Mombasa, for the port community, a CFS represents any facility that can act as a secondary customs clearance point for cargo some located within the port (BP sheds) and others located some distance away from the port.

3. CONTAINER FREIGHT STATIONS AND ICDS Ideally all these facilities provide relief to port operations away from the ship/land interface area hence the logic that they should be removed some distance from the quay and temporary stacking areas . The correct terminology should therefore be Inland Container Depots (ICDs).

4. CONTAINER FREIGHT STATIONS AND ICDS

5. CONDITIONS FOR OPERATING A CFS • KENYA REVENUE AUTHORITY • Conditions as per Gazette notice 11215 of 24th September 2010 • Obtain prior approval from CSD prior to embarking on development • Minimum area of 2.5 hectares • Generate no less than kshs100 million in customs revenue • Rail siding • Perimeter wall >3m high, surveillance cameras, parking area etc

6. CONDITIONS FOR OPERATING A CFS • KENYA PORTS AUTHORITY • Licensing conditions as per SLA terms • Must be duly gazetted by KRA • Minimum operational handling equipment 2 reach stackers • Must have in place insurance cover that • Properly paved area for stacking full boxes • Adequate number of shunting trucks

7. EVOLUTION OF KPA LICENCED CFS’s

8. FUNCTIONS • Provide port with additional capacity for cargo stacking • Platform for cargo inspection by various cargo interveners • Tax collection point for the Customs Service Department • Storage area for un-cleared goods • The revised KPA stacking capacity is 18000 teus whilst the combined CFS stacking capacity is 27,340 teus

9. PORT CAPACITY • Port container handling capacity is determined by : • Number of available ground slots( TGS) • Ideal stacking height • Container dwell time • Annual Thro’put = TGSX IDEAL STACK HEIGHTX365 DAYS • DWELL TIME

10. PORT CAPACITY • Annual Thro’put 2012 =5142 X 3.5X365 = 738,079teus • 8.9 • The port as at the end of October has handled 751,064 teus which implies a thro put of 901,277 teus by end of the year!! • To date the volume channeled through the CFS is 157,047 teus. This represents : • 61% of the local import cargo • 43% of the total import traffic in the port of Mombasa

11. PORT PERFORMANCE INDICATORS

12. CFS IMPACT ON PORT EFFICIENCY Key performance indicators have shown a positive trend since 2007 and have helped to stabilize port operations. 2012 is a unique year considering all the development activity that was undertaken by the port that had the effect of reducing the operating capacity. Port still not utilizing the available CFS capacity. There more scope to use fully the existing CFS capacity.

13. MOMBASA CONTAINER TERMINAL

14. MOMBASA CONTAINER TERMINAL • Pioneer CFS operator (formerly SDV Transami CFS) • Fully owned subsidiary of Bollore Africa Logistics the leading integrated logistics network and leading operator in public private port partnerships in Africa • Investment M€ 7

15. Thank You