Mombasa Container Berth Expansion

The volume of container traffic handled at the Port of Mombasa has increased rapidly over the last decade, and now exceeds 1 million TEU per year. KPA has taken several measures to increase the port’s handling capacity, such as the introduction of new IT systems, equipment installation and new container terminal construction. However, operational constraints within the existing yard are leading to cargo congestion and hindering port performance. To optimise the use of the existing facilities and to support a long-term sustainable development plan, the expansion of facilities at the Container Terminal 1 is proposed for implementation.

• Developing container traffic volume forecasts for Mombasa including gateway, transit, and transhipment traffic, based on KPA port statistics, trade data from MDST’s World Cargo database (WCD) and forecasting module to produce forecasts of future cargo traffic volumes.
• Producing central, high, and low case projections using a blend of economic trend and GDP growth-based forecasting techniques.
• Using the MDST End-to-End Container Cost Model (E2ECCM) to estimate the cost impacts of diverting both existing and anticipated shipping services to the new port of Lamu and the development of the northern Kenya trade corridor (LAPPSET)
• Carrying out a financial evaluation of the project based on estimates of phased CAPEX/OPEX and scenarios of port traffic growth. 
  
• Completing an economic evaluation of the project, comparing the transport and economic costs and benefits of the inland distribution of gateway and transit traffic. Outputs included NPV and EIRR to provide a high-level appraisal of the economic net gain of the project.