{UAH} M7's Mombasa Business Demand To Handle ALL Non-Kenyan Cars At Mombasa !!
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10:23 AM |
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Cargo firm complains about licence terms
Posted Saturday, June 15 2013 at 11:50
Only days after the Ugandan government handed over the management of a cargo freight station and car depot it owns in the Mombasa port to a private logistics firm, the latter has complained that the terms of its licence are hostile to the conduct of profitable business.
Unifreight Cargo Services, a Ugandan firm, says it applied for a licence last year with Kenyan authorities to handle both domestic and transit cars and after a one year delay it was recently only allowed to handle Uganda transit cargo.
The facility was handed over by Uganda Property Holdings Ltd (UPHL), which is owned by the Uganda government, to Unifreight last week, after a successful bid and compliance with the conditions set by the Kenya Revenue Authority (KRA) and Kenya Ports Authority (KPA) for the management of cargo freight stations (CFSs).
But with the licensee's early complaints about the terms of its operations, frictions between Kenya and Ugandan business people regarding the use of the port of Mombasa could worsen.
According to Unifreight managing director Geoffrey Tindimwebwa, the refusal to allow it to handle domestic cars is a ploy to drive it out of business.
Other times Jeniffer Mwegukye is referred to as MD of Unifreight.
Since the current transit volumes constitute about 30 per cent of total volumes passing through the port and is shared with 18 other existing CFSs, he argues that restricting the firm to only Uganda transit cars renders its business unviable. The previous operator paid over Ksh5 million in monthly rent. - But the building is owned by the Uganda govt- Uganda Property Holding Ltd whose MD is Martin Kihembo - another Museveni crony
Recently, Ugandan business people ?? asked EAC Secretary General Richard Sezibera of Rwanda to intervene in the matter.
Before the recent gazette notice allowing the firm to operate in Kenya, Mr Tindimwebwa says, KRA had issued a Uganda transit godown licence, which would only allow the facility to handle goods whose duty had been paid. But since Ugandan importers would not agree to pay Customs in Kenya, the concept was not feasible, forcing KRA to review the licence.
Although CFSs are supposed to operate under the EAC Customs Management Act, which requires uniform application of rules and principles, Kenya does not follow this Act.
It is estimated that over 4,000 Ugandan vehicles pass through Mombasa port, the largest transit destination. According to Mr Tindimwebwa, Unifreight must handle half of this to operate profitably.
Located at Changamwe, five kilometres from the port, the Ksh240 million ($2.8 million) facility has the capacity to handle 3,500 vehicles. The idea of the car depot was mooted in 2003 to handle vehicles destined for Uganda, South Sudan, Rwanda, DR Congo and Burundi, who rely on Mombasa for most of their imports.
Mr Tindimwebwa said they have already set aside $500,000 for the business and the CFS, which is located on a five-acre piece of land in Changamwe has the capacity to handle more than 3,500 vehicles at any time, including containers.
When the facility was completed, the Ugandan government invited bids in 2006 seeking a firm to operate and market the facility on its behalf. CPC Freight Services, a Ugandan firm won the bid, ??? - but it took two and a half years for it to be licensed by KRA.
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