Logistics: KRA contracts 15 firms to monitor movement of transit cargo

Containers at the port of Mombasa. [Photo: Courtesy]

The Kenya Revenue Authority (KRA) has contracted fifteen companies to provide electronic monitoring and tracking services and seals for tracking transit goods under customs and border control from Mombasa port.

Kenya Ports Authority Managing Director William Ruto says this was the right thing to do to monitor cargo from Mombasa to the borders and beyond. He said the move will deal with transit cargo diversion and theft.

"This is the right thing to do to improve transit traffic movement from Mombasa port, which has been growing very fast for the last few years," said Ruto.

KPA transit traffic has been posting significant growth for the last few years following the impressive growth of transit markets such as Rwanda, Democratic Republic of Congo, and South Sudan, as Uganda maintains the lead with a market share of over 72 per cent.

In a public notice to stakeholders in the shipping corridor, KRA says the firms in question will now take over the issuing of electronic seal services, which were being offered by the customs department free of charge.

“To enhance service delivery, business dynamics and increasing demand, the KRA has transitioned to a multi-vendor, user-owned seals model for both dry ( e-seals)  and wet cargo(e-fuel) electronic seals,” said the notice.

The notice on the KRA posted online platform says that electronics KRA will gradually be phased out up to October 26 this year.

The notice released by the Commissioner for Customs and Border control says the electronic monitoring, which was being supplied exclusively by KRA, will now be supplied by the vendors that have been approved by the organization.

This framework shall be based on a private commercial agreement between the approved vendors and users, setting the stage for payment for the seals, which were always supplied by KRA without paying any amount.

"Users are at liberty to select any of the approved vendors,” said the notice.  

Shipping Council of Eastern Africa Chief Executive Agayo Ogambi welcomed the move, saying it will reduce delays of trucks and improve truck turnaround at the port.

He said  Mombasa port was experiencing an increase of transit cargo; now, over 30 per cent of throughput in the port is also attracting over 2000 trucks on the road daily.

He explains that since there will be competition among the seal suppliers, the turnaround of cargo movement from the port will improve as competition enhances efficiency among the port users who always use a shortage of seals as an excuse not to remove the cargo immediately after their docking.

Ogambi said that the issue of the shortage of seals, which used to cause delay of cargo leaving the port causing congestion, will be a thing of the past.

He regretted that whenever there was a delay of the cargo from the port, which was the main cause of congestion, everything was blamed on Kenya Ports Authority, even where KRA was to blame.

"It is a good decision. It will reduce delay and increase truck turnaround at the port, and with continued increase for transit cargo now accounting for over 30 per cent of the port throughput, the 2000 trucks on the road every day will ease the congestion at the port,” said Ogambi.

The approved companies to supply electronic seals for monitoring the cargo movement on transit are Autotroninix Telematics, Bandika IOT, I Spy Africa, Keshi Holdings, K-Trac Telematrics, Leitztalk Technologies, Oak and Gold Company, Quatrix Telematics, Radar Tematrics, Rivercross Tracking Safetrac, Savannah Springs Technology, Smart Watch Solutions and Track and Trace.

Kenya Ships Agents Association Chief Executive John Mbaru also welcomes the decision, as it will improve the movement of trucks out of the port.

The long queue of trucks at the port waiting to be issued with the seals  not be there and allow KPA to have more space for the containers instead of the trucks.

Mbaru said the overall performance of Mombasa will improve because the turnaround of the ships and containers will improve.