Chinese Firm Secures Deal for Construction of Oil Terminal in Mombasa

  • The China Communications Construction Company (CCCC) has secured a deal to construct an oil terminal at the port of Mombasa.

    According to the Kenya Ports Authority (KPA), the new terminal will see to an increase in discharge capacity over ten times meaning the new facility will store up to 400,000 metric tonnes up from the current 35,000 tonnes.

    Acting managing director for KPA Daniel Manduku explained that the current terminal at Kipevu can only handle a vessel at a time, with each vessel’s capacity being 35,000 tonnes.

    Currently, Kipevu handles 90 percent of oil imported to Kenya and petroleum products being transported to neighbouring countries.

    “The new terminal will replace the current site situated within the Mombasa port and will have the capacity to berth four ships of 100,000 tonnes each simultaneously.”

    Initially, construction was to be finalised by 2019 but the cancellation of an initial 2016 tender to include a liquified petroleum gas line pushed the completion time to 2022.

    The firm is the same tasked with running the $3.8 billion Standard Gauge Railway (SGR) through its subsidiary China Road and Bridge Corporation.

    Construction of the SGR was funded 90 percent by the Chinese government, which has, however, withheld funds for construction of the Naivasha-Kisumu line until the Kenyan government conducts a feasibility study for the entire project.

    Recently at the Forum on China-Africa Cooperation (FOCAC) in Beijing, Kenya received commitment from Chinese private investors to build the JKIA-Westlands Expressway and the Special Economic Zone at Dongo Kundu at the Mombasa Port.

    In addition, Kenya received Ksh 4.5 billion of the Ksh 60 billion African grant from President Xi JinPing within the same summit.