Kenya International Freight and Warehouse Association Chairman Roy Mwanthi on Sunday, June 16, alleged that two Container Freight Stations (CFS) had hijacked the handling of goods destined for South Sudan.
Mwanthi regretted that many Kenyan logistics companies were denied the opportunity to handle the cargo passing through the Port of Mombasa.
He added that the favouritism of the two CFS was against the wish of many importers from South Sudan.
“We have a problem at the Port when it comes to competing for the cargo as some companies are using South Sudan’s government backing to get more cargo than others,” the KIFWA boss stated.
“There are two CFS that are handling the spaces and they canvass to block others from getting the tenders against the wish of importers because importers would want to nominate their cargo in any CFS giving them better rates.”
Mwanthi explained that the two CFSs creating a near monopoly had far-reaching powers to determine charge rates.
According to KIFWA, this had disadvantaged Kenyan logistic companies who used to negotiate on behalf of clients.
Mwanthi explained that in the past before the South Sudan government interference, the logistics companies were able to offer importers discounted prices and better deals.
KIFWA’s estimation is that the two CFS due to the monopoly are jacking up prices per container by Ksh26,000 (USD200).
“The two companies determine the prices to charge and end disadvantaging the importer as well as blocking competition,” he stated.
Mwanthi reckons handling and clearing of the cargo should be subjected to fair competition for efficiency and cost-effectiveness.
On average, the Port of Mombasa handles an average of 800 containers destined for South Sudan every month.
