Reversal of Port Operation to Mombasa

The argle-bargle about the port sparkled when the former president Uhuru Kenyatta ordered all the importers to use the SGR in transportation of Cargo from Mombasa to the Inland Container Deports in Mombasa and Naivasha. The directive was put in place to create a maximum guaranteed business for the SGR to pay it's debt. This not only affected the transport sector but also the clearing and forwarding services involving this containers. This services had to be moved from Mombasa port to Naivaisha and Nairobi ICDs.This behest was unwelcomed by the residents of Mombasa because of the negative implications that came with it.

With the new administration in place, the president in his first speech ordered that all the port operations that had been moved from the port of Mombasa to Nairobi and Naivasha be returned. " This afternoon, I will be issuing instructions for the clearence of all goods and other attendant operational issues to be reverted back to Mombasa." Said president Ruto. What are the implications of this order to our economy?

The order meant that all the jobs that had been lost by the people of Mombasa through the movement of some port operations to Nairobi and Naivasha were to be reinstated. The clearing and forwarding offices that had been closed within Mombasa were to be brought back to live. The reinstatement of this jobs to the people of Mombasa helps to reduce the poverty and unemployment levels within the region. This inturn stimulates a healthy economic growth within the region.

The order also gave the importer a free choice on which clearence and the means of transportation they would want to use doing away with the monopoly of the SGR. This creates competitiveness between the SGR and the use of road transport. The Kenya Railways might be forced facilitate a port to door delivery by dealing with the last mile connectivity  in order for it to be effective and competitive. This will create more job markets and opportunities for the people.Also, the  jobs  that had been initially lost by the transport and logistics companies and the truck drivers will also be reinstated. With many people in jobs, means the production will be high hence impacting our economy more positively.

The revert of port operations to Mombasa also leads to the blooming of business within Mombasa.The Container Freight Stations (CFS) that had closed down will come to live. The small business that had also been affected will also shot back to working creating a vibrant economy within the region bearing in mind that Mombasa contributes to atleast 5.2 percent of our GDP. With the beehive of economic activities within the region the percentage contribution to the GDP will automatically grow. The trading activities does not only take place within Mombasa but also within the corridors of Mombasa Nairobi highway. Hence the impact of the return of cargo transport by roads will be enormous.

Having port operations in Mombasa also have it's negative implications moreso within Nairobi and Naivasha regions. Very many people who were inloved in the operations that were reverted will loose their jobs. The small scale business that were dependant on these people will also be closed. This will increase the poverty level and unemployment within the regions. The SGR amight also loose alot due inefficiencies created by the last mile connectivity that remians undone to date. The transportation of Cargo by SGR coasted an importer a whooping 500$ to the Nairobi ICD and another 300$ to industrial area which is more expensive than road transport. All this will bring a negative economic impact.