The Government of South Sudan wants Kenya to review cargo handling charges and container deposits for the users of it port facilities, Kenya’s leading business publication, the Business Daily (BD), reported Friday.
The push by Juba, BD explained, would lower the cost of doing business and expand trade volumes in the region.
Kenya’s Mombasa port is the main route for cargo consignments destined to South Sudan, accounting for 9.9 percent of its transit volumes of about 1.1 million tonnes annually. The figure makes South Sudan the Mombasa port’s second client after Uganda.
The Kenyan sea routes also handle huge volumes of cargo destined to eastern Democratic Republic of Congo, Rwanda and Burundi.
According to the BD report, Kenya currently charges US5,000 per container destined for South Sudan, a figure the latter feels is steep and unfavorable to business.
The paper said South Sudan Ambassador to Kenya Anthony Kon had reported that the exorbitant charges were forcing some traders to abandon cargo at the Mombasa port.
BD also quoted South Sudan’s Executive Secretary at the Northern Corridor and Transport Coordination Authority John Deng, saying negotiations were underway to address bottlenecks surrounding his country’s cargo, with hope of reducing deposits by introducing alternative guarantees and assurances for container return to lower cost of shipping.
South Sudan’s main imports through Kenya include various food items, beverages, and manufactured goods.