Kenya's Lamu port construction of 3 berths completed – Construction Review

Lamu port construction in Coastal Kenya has seen 3 berths now completed and will be operational in June this year. According to Kenya Ports Authority (KPA)‘s head of corporate affairs, Bernard Osero, China Communications Construction Company (CCCC) has already completed construction of the first three berths of the port.
“Lamu port will specialize in handling containers and oil cargo between the east African hinterland and the rest of the world. The new facility will enable Kenya to become a gateway of choice for Ethiopia, South Sudan and Somalia,” he said. He further mentioned that Lamu port construction will also complement the existing Port of Mombasa because it is a natural deep port that can handle larger sea vessels.

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The government of Kenya funded the construction of the 1st three berths under a plan referred to as the “Short-term Plan” that is estimated to cost US $689m, accounting for dredging and reclamation; construction of berths and yards; construction of revetment, causeway and road; construction of buildings and utilities including Port headquarters, Port Police Station and Port Management Housing Scheme; procurement of equipment and tug boats; and Electric Power Connection to the National Grid and establishment of Water Reticulation Network among others.
The government has structured the remaining 29 berths to be handed over to private sector investors for financing, construction and operation. Also Read: Rehabilitation and modernisation of Port of Kalemie in DRC to be undertaken

Benefits of the Lamu port

Lamu port construction once completed is expected to create job opportunities not only in port operations but also in agriculture, fishery, manufacturing, logistics, transport, trade and commerce. In addition, the port is predicted to appeal to large cargo ships and provide benefits in the region by passing on savings as a result of lower marine costs due to faster ship turnaround time, reducing the cost of doing business. Aug 2014
August 2014

Kenya signs US$480m deal for construction of 3 berths in Lamu

Lamu_coast
The Port of Lamu where the three berths will be constructed

The President of Kenya Uhuru Kenyatta has signed a US$480m deal with China Communication Construction Company Group to see the firm construct 3 berths in Lamu port. The berths, which are to be constructed to facilitate the handling of general cargo, bulk cargo and container cargo, are part of the 32 berths expected to be constructed in the port complex.
US$50 million has already been set aside by the Kenyan government for the commencement of the project. This is part of the Lamu-Port-South Sudan-Ethiopia Transport Corridor Project (LAPSSET) Corridor Program.
The signing of the deal is a major advancement for the Lamu Port South Sudan-Ethiopia Transport Corridor (LAPSSET) expected to be ready by the year 2030. The project is meant to supplement the Northern Corridor that handles most of Kenya’s transit cargo. The LAPPSET project will connect the East and West coast of Africa. The total cost of the project stands at US$24bn.
The president indicated that the steps made show the government’s commitment to realizing the LAPSSET project and he hoped that the partnership will implore other private investors to cash in the construction of the remaining 29 berths. The project will not only improve the economy of Kenya but also the lives of the people living along the transport corridor.
The port of Lamu will handle 24 million tons of cargo once the project is complete. US$480m deal with China Communication Construction Company Group, China Communication Construction Company to construct 3 berths at the Lamu port, 32 berths expected at the port complex
May 2016

US$ 30 million required to spur Lamu port project in Kenya

The Lamu Port project in Kenya that is already under a 2-year delay requires US$ 30M to unlock the stalemate, Kenya Ports Authority (KPA) Board Chairman, Marsden Madoka has said. Speaking during the Board’s visit to the Lamu port site, acknowledged that delays in paying the Chinese contractor had slowed progress on the Lamu port project since 2013.
The Kenya government in 2013 awarded the port construction tender to the Chinese Communication Construction Company (CCCC) for a quoted 482,881,975 million dollars in which they were expected to build four berths in a 45-month span. Madoka however, expressed optimism that the national government would provide funding to unlock the delay which he said had contributed to the project running behind schedule.
“The Lamu port project is a 1.6 billion dollar investment that is so far at 2 per cent, which for the most part has been site preparations”, the KPA chairman said. He said their visit to the Lamu port site signals the importance of the venture towards the actualisation of the LAPSSET project.
The chairman however said that despite the delay, the current contractor remains committed to ensuring that the first berth is completed by 2018. General Manager In-charge of infrastructure development, Eng. Abdullahi Samatar said KPA is committed to having the first berth completed by 2018. He also voiced concern that any further delays in funding the project may lead to expensive claims being made on the part of the contractor to the national government.
“As the contractor has already committed substantial resources in terms of personnel and monetary resources in building the site from the ground up, further reschedules may lead to the Lamu project incurring extra cost for keeping the contractor on without actual work being done”, Eng. Samatar said.
The foreign construction company has currently employed 100 local staff and 20 Chinese staff for the project. “About Kshs., 10 billion is the current estimate that needs to be set aside for the Lamu Port project to kick off without a hitch”, revealed the deputy project coordinator, Gallon Zhang.
Feb 2017

Kenya allocates US $ 97.1 million for Lamu port project

Kenyan allocates US $ 97.1 million for Lamu port project Construction of the first three berths in the Lamu port project has begun. Kenyan Transport Principal Secretary Irungu Nyakera said 20 per cent of the work has been completed and the government will allot US $ 97.1 million to the port project in the coming fiscal year. He said the government has by now paid US $44.6 million to the contractor of the Lamu port project while another US 28.1million would be paid before the end of this year. The PS said the Lamu port project would cost the exchequer a sum of US$ 466 million.
“We look ahead to the construction of the first berth of the Lamu port to be finished by June 2018,” he said. In an interview with the Nation in Mombasa, Mr Nyakera said construction of the second and third births are projected to be finished in 2019 and 2020 correspondingly. “The government is committed to finishing the construction of a second port in Lamu to complement the port of Mombasa,” he said.
Other than the construction of the three berths, other works going on in tandem include dredging of the channel, land reclamation, and the building of a cofferdam and a causeway. He stated that the Lamu Port South Sudan Ethiopia Transport (Lapsset) is one of the chief projects the government was executing to enhance trade between Kenya and neighbouring nations of Ethiopia and South Sudan. 
“Lamu port, will not only present services to the nation but also to landlocked nations of Ethiopia and South Sudan,” he said. Mr Nyakera said the government has also set aside US $ 97.1 million for the construction of the Lamu-Witu-Garsen road. The PS said the 132-kilometre road would play a role in the hauling of goods and people between Lamu and Mombasa counties
He said the government is also building a nine-kilometre road to link the US $1.9 billion coal-powered plants at Kwasasi to the Lamu port. The coal power project, he added, would create 1,050 megawatts and increase the power supply to the port through the national grid.
March 2017
The African Development Bank (AfDB) has offered a US$ 2m grant to the Kenyan government that will help in the construction of the proposed Lamu port project. The grant is set to cater for advisory services and technical support in developing a feasible plan for the port.
The funds that were offered through AfDB’s New Partnership for Africa’s Development Infrastructure Project Preparation Facility, will position the proposed Lamu port as an attractive venture for big investors. Lamu port has 32 berths whose construction cost is approximated at US$ 5bn and to break it down; the cost for the first phase is estimated to be US$ 670m whereby the amount is expected to cover dredging and reclamation, construction of berths and yards, construction of revetment, causeway and road, construction of buildings and utilities and procurement of equipment and tug boats among other things.
Construction of the first three berths is being funded by the Kenyan government while the remaining 29 berths will be financed through a public-private partnership under the build-operate-transfer model. Lapsset authority CEO Silvester Kasuku confirmed the reports and said that the government is calling on the private sector to fund the project which will see the country have a second major seaport at Lamu.
“Lamu Port has an economic internal rate of return for the long-term development plan of 23.4 per cent, the projected demand forecast for freight and passengers for the years 2020 and 2030 illustrates that the total dry cargo throughput at Lamu port would be 13.5 million tonnes by 2020, and 23.9 million tonnes by 2030,” he said.
Lapsset is anticipating leasing the first berth of the project to the private sector by end of 2018. The construction of the mega port headquarters and the port police station is already complete with the electric power connection to the national grid and water reticulation networks in place.
June 2017
Dredging work on Lamu first berth to be completed in 2018 Dredging work on Lamu’s first berth is on course and the project is scheduled for completion in March 2018. According to Sylvester Kasuku, the Director-General of the Lamu Port-South Sudan-Ethiopia- Transport (Lapsset) Corridor Development Authority, the dredging works that kicked off in October 2016 are in good progress whereby more than 20% of the project have already been completed.
The project is being executed by the China Communication Construction Company. During a press briefing, Sylvester Kasuku noted that China Communication Construction Company is expected to complete the construction of the first three berths by the year 2020 at a cost of US$463.2m.
Also read: African Development Bank boosts proposed Lamu port in Kenya
The project is expected to unlock latent economic potential covering about 70% of Kenya’s land space located in the larger northern parts of Kenya. Kenya is co-financing the construction of the first three berths with the rest of the project cost expected to be financed by the private sector under the Public-Private sector framework. So far Kenya has spent US$ 115.9mfor the construction of Lamu Port with the addition of US$96.6m allocated for the 2017/2018 financial year.
Additionally, South Africa has already signed a Memorandum of Understanding to develop the first three berths in the Lamu Port. Currently, South Africa is in the phase of submission of proposals and is undertaking discussions with relevant government agencies before commencing construction works. 
The plan is to construct a total of 21 berths at the proposed port of Lamu by 2030, compared to 18 berths in Mombasa, where ageing infrastructure hinders the port’s ability to handle huge ships and raise the amount of cargo. On completion, Lamu port will be nearly ten times larger than the existing port of Mombasa which currently accommodates 1.2 million Twenty-Foot Equivalent Units (TEUs) annually and has a maximum capacity of 2.5 million TEUs. The first three berths of Lamu Port are expected to be operational in 2020.
The berths will begin by handling 1.2 million TEUs and when fully operational the berths will handle 20 million TEUs. Additionally, the berths will also handle crude oil carriers with a deadweight tonnage of up to 20,000 tonnes and a capacity of two million barrels of crude. The port construction is being executed at Manda Bay, which juts out towards the islands of Pate, Manda and Lamu. The location is suitable for its size and deep waters capable of accommodating large vessels.
July 2018

Kenya to receive US $88.4m boost to speed up Lamu Port project

Three consortium to establish a dry port in Egypt
The Lamu Port South Sudan Ethiopia Transport (Lapsset) Corridor Project has received a major boost after the national government announced the allocation of US $88.4m to speed up the port construction.
According to, East Africa Community and Northern Corridor Development Cabinet Secretary Peter Munya, 50% of the work at the port have been done. However, the government is committed to ensuring the project is successful.
Mr Munya during his visit to the port site in Kililana, Lamu West said more money will be directed to the project from the September supplementary budget. Construction of the first three berths is ongoing, with the first berth expected to be ready by December this year. Munya added that the other two berths will be ready in two years, at a cost of US $476.9m.
“We are here to assess the progress of Lapsset and to iron out various issues, given that the project would be a game-changer for Lamu County and Kenya. It is expected to grow the country’s Gross Domestic Product (GDP) by at least 3%, and will boost tourism, trade and local livelihood,” he said,

Employment

Lapsset Corridor Development Authority chairperson Francis Muthaura also said that the project will help tackle unemployment in Lamu. Already, 400 local youth have been trained on port operations in readiness for employment, in line with a scholarship programme launched by former President Mwai Kibaki targeting 1,000 youths.
Lapsset CEO Silvestre Kasuku added that the first ship could dock at the port by December this year when the first berth will be ready. The US $24.8bn project includes a 32-berth port; transportation hubs for rail, and highway; international airports in Lamu, Isiolo and Lodwar; an oil pipeline from South Sudan connecting Uganda and Ethiopia; an oil refinery and three resort cities.
CDAP gets underway ahead of the launching of Isimba dam Kenya has pushed the completion date of the first port berth at the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) Corridor project to December from the initial June following the magnitude of the project. Lapsset Corporate Affairs Officer Benson Thuita said construction works at the port are at 46% complete and the government is confident that the first berth at the Lamu Port will be completed by the end of this year. “We had announced that the first berth at the Lamu Port would be complete by June this year. However, a project of such magnitude cannot be hurriedly completed like that. Maybe we expect the first berth to be ready by the end of this year and not in June which has already passed,” said Mr Thuita. Also read: African Development Bank boosts proposed Lamu port in Kenya

Speedy construction

Mr Thuita also said the national government is committed to ensuring a speedy construction of the US $24.9 bn project which he termed the largest port in East and Central Africa.
He noted that the government has been using US $139.3m every year in ensuring progress at the port. The Corporate Affairs officer also expressed confidence that all the three Lapsset terminals (berths) at Kililana will be completed by the end of 2020.
He also stated that the government is pursuing the development of the appropriate road infrastructure to connect the port to the rest of the Lapsset Corridor as well as other parts of the country and the region.
Moreover, Cabinet Secretary for the East African Community and Northern Corridor Development Peter Munya is expected to tour the Lapsset project in Kililana this week. Confirming the tour, Lapsset’s corporate affairs officer said the CS will visit the region on Friday to assess the progress of the project.
“We expect CS Peter Munya to tour Lamu and specifically at the project area in Kililana on Friday. So you should expect more updates concerning the progress of the project once he jets in,” said Mr Thuita.
April 2019

South Africa set to operate Kenya’s Lamu Port

Construction works on Tanzania’s US $10bn Bagamoyo Port project stalls
South Africa’s state-owned logistics company, Transnet SOC has announced plans to operate the Lamu Port in Kenya which is being developed to be partly used for planned exports of oil. Kenya Ports Authority Managing Director Daniel Manduku revealed the reports and said the authority is in talks with the firm to negotiate the value of the deal. “The firm is leading a group of companies that are pitching to provide the equipment for the initial three of 32 berths planned at Lamu Port and to operate the facility. We are still negotiating and hope to have made a decision by end of March,” said MD Daniel. Also Read: Uganda to construct a dry port in Naivasha Kenya

The Lamu Port

Lamu port project was conceived as part of a regional infrastructure plan known as Lapsset that includes an oil pipeline from northwestern Kenya, where Tullow Oil plans to start commercial production in 2022. Lapsset Corridor Development Authority Chief Executive Officer, Silvester Kasuku said that the Lapsset corridor envisages linking the pipeline, roads, rail and airports in Kenya to neighbouring Ethiopia and South Sudan. “Construction of the first berth at Lamu will probably be completed in June and the next two areas where vessels can dock in 2020. We expect traffic to reach 23.9 million tonnes by 2030,” said Silvester Kasuku. US $480m is expected to be invested in the project which upon completion, will become Kenya’s second international seaport after Mombasa. According to Director Daniel, the port is expected to attract larger cargo ships and also provide direct benefits within the region by passing on savings derived from lower marine costs due to faster ship turnaround time, reducing the cost of doing business. “It is expected that the port will attract some of the cargo that passes through the ports of Sudan, Djibouti and Mombasa,” said Mr Manduku. Meanwhile, the president is also seeking to increase private investment to expand and boost the country’s economic growth in accordance with advice from the International Monetary Fund which recommended the Government restrain spending to further reduce its fiscal deficit from 7.5% of gross domestic product at the end of June 2018.
Jan 2020
Lamu port The first of the proposed 32 berths at the Lamu port in Kenya is set to be operational in February this year. Transport Cabinet Secretary James Macharia made the announcement and said President Uhuru Kenyatta will grace the launch ceremony together with five other heads of state. This berth is one of the three berths whose construction began with dredging works in December 2016 with a delivery time of 24 months; and 45 months for the other two, all at a cost of US $480m. The government of the Republic of Kenya is fully funding the construction of the first three berths under a plan referred to as the “Short-term Plan” that is estimated to cost US $689m. The money accounts for: dredging and reclamation; construction of berths and yards; construction of revetment, causeway and road; construction of buildings and utilities including Port headquarters, Port Police Station and Port Management Housing Scheme; procurement of equipment and tug boats; and Electric Power Connection to the National Grid and establishment of Water Reticulation Network among others. Also Read:Kenya, Ethiopia, South Sudan sign MoU to reinvigorate Lapsset

Benefit of Lamu port

The government has structured the remaining 29 berths to be handed over to private sector investors for financing, construction and operation. Once complete, Lamu port is expected to create job opportunities not only in port operations but also in agriculture, fishery, manufacturing, logistics, transport, trade and commerce. In addition, the port is predicted to appeal to large cargo ships and provide benefits in the region by passing on savings as a result of lower marine costs due to faster ship turnaround time, reducing the cost of doing business. Construction of second and third berths would be completed by December. 
May 2021
Kenya’s President Uhuru Kenyatta has presided over the commissioning of the first berth of the Lamu Seaport in Lamu County. The port also received its maiden ship, the Singaporean MV CAP Carmel. The president also revealed that he will come back to the county in a few months accompanied by several African presidents to launch all the three berths of the Port. Berths two and three are scheduled for completion in July and October respectively. According to Kenya Ports Authority (KPA) acting Managing Director Eng. Rashid Salim, larger container ships will be utilizing the seaport and also mentioned that KPA has already sent crucial marine equipment to Lamu for handling cargo transfers to ships, barges, and trucks as the new port prepares to handle international shipments. They include Rubber Tyred Gantries, ship-to-shore cranes, low load trailers, extension cargo handlers, tug boats, trailers, terminal tractors, forklifts, rail chains and channel buoys. “The new port has a huge potential for business since it sits right in the middle of major shipping routes for global trade. The port has the ability to handle post-panamax ships from the international shipping lines that ply the Indian Ocean, the Mediterranean Sea and the Red Sea,” he said. He also confirmed that KPA is working closely with the Kenya Revenue Authority (KRA) and other relevant state agencies to work out modalities of offering incentives to shipping lines docking at the new facility. “As KPA we assure investors targeting the new facility that we will be offering free storage period of over 30 days and tax rebates to woo shipping lines,” he said. Also Read: FG nodes to phase 1 Escravos Seaport Industrial Complex implementation

Lamu Seaport

Lamu Seaport is expected to attract transhipment business from Ethiopia and South Sudan and beyond. When fully complete, the Lamu port will have 32 deep. The port has the capacity to handle jumbo-sized ships with a carrying capacity of between 12,000 to 18,000 twenty-foot equivalent unit (TEUs) ships. The three inaugural berths at Manda Bay are designed to handle 30,000 Deadweight Tonnage (DWT) and 100,000 DWT for general and bulk and container cargo respectively. As part of the Lapsset project, the new transport corridor seeks to link the modern port of Lamu with Garissa, Isiolo, Maralal, Lodwar and Lokichogio and branching at Isiolo to Moyale at the border with Ethiopia and proceeding to the border with South Sudan.
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