Today, President Uhuru Kenyatta and his political allies will be officially launching the Lamu Port.
Dubed as the Mombasa Killer, Lamu Port is set to recieve its first ship which will be docking at the time of the launch.
Lamu Port is in a conflict area with the current uncertainties about the Maritime border dispute between Kenya and Somalia.
So, how will Lamu Port strategically outmanoeuvre Mombasa port?
Kenya has cut tariff for ships docking at the new Lamu Port by up to 50 percent of the rates charged at the Mombasa facility to lure more vessels at the second commercial harbour to be launched today.
Kenya Ports Authority (KPA) halved the cost of pilotage, tug services and mooring for the vessels calling on port of Lamu.
Currently, the ships docking at the port of Mombasa are pay Sh16,200 for using the KPA pilots to bring the ships to the berth and Sh32,400 for use of the agency’s tug boats and a minimum of Sh21,600 for mooring services.
“International trading vessels shall be charged 50 percent of the Gross Tonnage based dues for pilotage, tug service and mooring for the second port call either at Lamu or Mombasa,” said KPA acting managing director Rashid Salim.
The first ship (Mv CAP Carmel) will dock at the facility today ahead of the commissioning by President Uhuru Kenyatta.
KPA has also lowered the charges for storage of transshipment vehicles with the first 30 days attracting no charge at all. However, after the 30-day grace period, shippers will pay Sh2,160 and Sh4,320 for a 20 and 40 foot container.
The new charges for loading and discharging of vehicles will be Sh4,536 from Sh7,560 for a car not exceeding 1.5 tonnes while those weighing over 10 tonnes will attract Sh51,840, down from Sh86,400.
At the same time, Kenya Revenue Authority has extended the duration of the entry of cargo from 21 days to 30 days and the transit period has been increased from 30 days to 60 days.
This promotional tariff shall remain valid for a period of one year starting May 2021 to May 20 next year.
The new tariffs have been released jointly by KRA and KPA.