KSC has successfully engaged government agencies and service providers on removal of vessel delay surcharges (VDS) and decngestion of the sea port, VAT on marine services, numerous police road blocks on the Northern Corridor amongst others, thereby helping to reduce delaysand resultant costs in movement of goods.
We have built strong relationships with the relevant authorities and service providers meaning we are better placed to lobby on behalf of our members.
Currently in consultation with the Kenya Ships Agents Association to address over 21 issues that are a constraint to clearing and forwarding, importation and exportation.
Follow ups with KPA on demurrage charges levied even when the delay is caused by lack of parking which causes a delay for the ships to berth.
KSC is currently involved in:
• Developing the 2010 Logistics Performance Index.
• Developing a directory of all logistics service providers and indicative rates handbook.
• Developing a Transport Policy for Kenya in line with current transport scenario.
• A member of the steering committee looking at development of second port in Lamu.
• Key participant in major regional logistics performance evaluations including Corridor Diagnostics Costs study, World Bank Doing Business Report, among others.
• Developing a database of existing rules, regulations, policies and procedures on import and export with reference to the various value chains including development of an online information portal for hosting this information.
Challenges:
Some of the issues that the Council is constantly engaging government agencies and service providerson include high shipping charges, arbitrary levies, and lack of professionalism of some service providers. To overcome these, KSC has entered into strategic partnerships with concerned authorities such as the Kenya Revenue Authority, Kenya Ports Authority, Kenya Maritime Authority and the Kenya Ships Agents Associations to dialogue, with evident positive results. The hijacking of cargo ships by pirates in the Gulf of Aden has resulted in higher transport costs due to increased insurance premiums and shipping fees. Compliance with axle load regulations is also a problem that we are keenly addressing.
