Lamu Port

Lamu Port Overview

The government undertook ground breaking for the LAPSSET Corridor Program at Lamu Port site on 2nd March 2012, after which it commenced construction activities of various infrastructural facilities and services aimed at progressing implementation of LAPSSET Corridor Project. The Port of Lamu as a second port in Kenya is bound to have considerable impact on the Kenyan economy and on the regional economy of the Eastern and Horn of Africa and beyond. At the national level, transformation of Lamu from a small port on the Indian Ocean seafront of the East Coast of Kenya into an international Port handling over 24 million tonnes of cargo and serving a new major transport corridor in the Eastern Africa has many implications for Kenya.

The Manda Bay is well sheltered and has deep waters of around 18m along main channel and 5m to 60m in the Bay and therefore can accommodate any post panamax vessel. The development of twenty (20) berths by 2030 and up to a total of thirty two (32) berth Lamu Port at Manda Bay beyond 2030 on 6,000 to 9,000 quay length is feasible. The development of Lamu Port will also include the construction of port associated infrastructure such as Causeway, port access road, railway yard, water and electricity supply, port building and other port related services.

The implementation and the development of Lamu Port component will trigger the development of the other Components is the Port at Manda Bay. The Port Master Plan will be implemented in three phases namely short term (2020), medium term (2030) within which twenty (20) berths can be developed while the other twelve (12) berths can be considered during the long term plan (beyond 2030).

Objective of Developing the Lamu Port

The objective of developing Lamu Port is to provide a second sea port and transport corridor gateway link to serve the expanding import and export cargo base including the new hinterlands of northern Kenya, South Sudan and Ethiopia and as well reduce over-reliance on one Port (Mombasa Port) and one Transport Corridor (The Northern Transport Corridor). Development of the Port of Lamu will enable the country to establish the only Transshipment port in the Eastern and Southern Africa after Port Durban. The establishment of a transshipment port at lamu Port at the Indian Ocean Coastline at a time when the Suez Canal is being widened will enable the new port to play the role of a transshipment port to serve the eastern and Southern Africa region, thus creating a new hub character in the Kenyan economy.

Justification for the Lamu Port

It has been recognized for a long time that Kenya is the principal gateway to the region, not only serving northern countries such as Uganda, Rwanda, Burundi, Democratic Republic of Congo but also Ethiopia and Southern Sudan. Ethiopia alone with a population of close to 90 million people, not to mention the population of the New State of South Sudan, is huge hinterland market that require access to sea. The Southern part of Ethiopia is a very productive agricultural area while the South Sudan is rich in crude oil production with enormous potential in the agricultural and manufacturing sectors.

In addition, the combined population of the North-Eastern, Eastern, Rift Valley and a part of Coastal regions of Kenya is around 15.0 million and it accounts for around 40% of the total population of Kenya covering over half of the country’s land space. These regions have remained as economically under-developed for many years and will be served by the new Corridor. The major economic activities in these areas include pastoralism and some agriculture where pastoralism involves keeping of cattle, goats, sheep and camels and donkeys. The development of LAPSSET Corridor will open up the region for investment, job creation and productive sectors of the regional economy Given that the Port of Mombasa is already developed to nearly its full capacity, it was realized that it cannot therefore sustain the growing need for access brought about by the heavy demands of South Sudan and Ethiopia, needless to mention the fast growing economies of Kenya, Uganda, Rwanda, Burundi, eastern DRC and Northern Tanzania which are current users of the Port of Mombasa.

The Conceptualization of the Project was, therefore, out of the realisation that Kenya needed to retain her position as a transport regional hub and development of the LAPSSET Corridor from Lamu was therefore crucial in order to provide an alternative Port and another Transport Corridor. The Lamu Port, which is one of the Components under the Lamu Port-Southern Sudan-Ethiopia Transport (LAPSSET) Corridor is therefore one of the infrastructure flagship projects identified by the Government of Kenya in the Kenya Vision 2030 for fast-tracking. With the development of this second transport corridor, the link to sea will be improved tremendously and will enhance our efforts towards regional integration across Africa. The new Port at Lamu will complement the Port of Mombasa and is therefore expected to reduce congestion at the Port of Mombasa, improve operations, enhance service delivery and improve inter-regional trade for the importers and exporters from Ethiopia, South Sudan, Kenya and Uganda.

Lamu Port is the key pull factor for all the LAPSSET Corridor project components hence its development is critical to spur and give meaning to development of the rest of the components. It is therefore proposed that the government of Kenya take a leading role by funding the construction of the port of Lamu so as to give confidence to private investors to take part in the development of the other components of the LAPSSET Corridor Project. It is anticipated that development of the first three berths and the Garsen-Lamu Road will trigger the subsequent development of all the other critical systems such as the main highway, oil pipeline and the railway which feeds into and out of the Port.

The Plan for the Port

The Port of Lamu is deep and well sheltered. The Channel and basin plan is prepared with depths of 18.0m (bottom width of 500m) at Main Channel, 12.5m (310m) at Sub-channel, 17.5m (500m) at Manda Pass, and 17.5m (400m) at the basin of Bulk Berth, 16.0m (400m) at Container Berth, and 12.0m (400m) at General Cargo Berths. It is estimated that the total cargo throughput of New Lamu Port will be about 13.5 million tonnes per year in 2020 and 23.9 million tonnes in 2030, respectively. The latter volume is almost twice as large of present total cargo throughput of Mombasa Port.

The design ships are defined in consideration of shipping and ship building trends in the world e.g bulk carrier of 100,000 DWT-class, container ship of 100,000 DWT and general cargo ship of 30,000 DWT-class. By the Target Year 2030, the port will be composed of a total of twenty (20) berths in total on the west coast of Manda Bay, comprising four (4) bulk berths, five (5) container berths, ten (10) general cargo berths and one (1) edible oil berth. While, on Pate Island one (1) product oil berth, one (1) coal berth and one (1) LNG berth will be developed. There will be two (2) Single Point Mooring Buoys (SPMBs) in the outer sea for crude oil export. In the Medium-term Development Plan by 2020, a total of thirteen (13) berths comprising three (3) bulk, three (3) container, six (6) general cargo and one (1) liquid bulk berth. One (1) oil, one (1) coal and two (2) SPMBs will be located on Pate Island and its off-shore. By that time, the Manda Navy Base is expected to have been relocated out of Manda Bay, as proposed. In the short term, the First three berths should be developed first between 2012- 2015 to trigger the subsequent development of all the other LAPSSET components. The Channel and basin plan is designed with depth of 18.0m (bottom width of 500m) at Main Channel, 12.5m (310m) at Sub-channel, 17.5m (500m) at Manda Pass, and 17.5m (400m) at the basin of Bulk Berth, 16.0m (400m) at Container Berth, and 12.0m (400m) at General Cargo Berths, respectively. Other developments in addition to the Port is a new port city associated with the port referred to as Lamu Metropolis, comprising of port related industrial area and urban area, a resort city linked with five satellite tourism sites, an international airport, and two electric power stations. Parallel to the development of LAPPSET Corridor and Lamu Port, the Lamu Metropolis and resort city are expected to grow tremendously in the future. The population of this city is projected to increase to about 1.25 million.

(i) The Long-term Development Plan of New Lamu Port in terms of port facility arrangement is formulated based on the above cargo demand forecast, meteorological and oceanographic analyses and results of hearings from the local government as well as other related organizations. The location of New Lamu Port is selected at the western coast of Manda Bay. By the Target Year 2030, the port will be composed of a total of twenty (20) berths on the west coast of Manda Bay, comprising four(4) bulk berths, five (5) container berths, ten (10) general cargo berths and one (1) edible oil berth. On Pate Island one (1) product oil berth, one (1) coal berth and one (1) LNG berth will be located. There will be two (2) SPMBs in the outer sea for crude oil export.

(ii) The Medium-term Development Plan by 2020 includes a total of thirteen (13) berths comprising three (3) bulk, three (3) container, six (6) general cargo and one (1) liquid bulk berth. One (1) oil, one (1) coal and two (2) Single Point Mooring Buoys (SPMBs) will be located on Pate Island and off-shore. By that time, the Manda Navy Base is expected to have been relocated out of Manda Bay, as proposed.

(iii) The Short-term Development Plan running up to 2015 has been proposed. It includes three urgently required berths, referred to as the Urgent Development Plan. This plan contains one each, of bulk, container and general cargo berths, and associated infrastructure. They are called the first three berths.

The demand forecast for freight and passengers has been prepared based on year 2020 and in 2030, as per the information and data collected for planning the Lamu Port and the corridor facilities (see attached copy of Economic Analysis and Data). It is estimated that the total dry cargo throughput at Lamu port will be 13.5 million tonnes in 2020 and 23.9 million tonnes in 2030, respectively, which is larger than the present cargo throughput at Mombasa Port. As regards the modal split by transport mode, types of commodities, transport distance and other factors, the share of freight volume by railway, highway and pipeline was estimated. The freight share of railway, excluding crude oil, in 2020, is estimated to be 96.1% of total freight at the Southern Sudan-Isiolo section, 93.2% at Ethiopia-Isiolo section, 94.3% at Isiolo-Garissa section, and 60.2% at Garissa-Lamu Section. Figure S-6 illustrates the changes of freight transport volume by route, transport mode and target year.

Major import cargo handled by New Lamu Port would be bulk and break-bulk cargo such as grain, steel and transport equipment, while the export cargo would be processed agriculture products and primary industrial products such as processed wood as well as livestock products. Around 75% of the total cargo volume handled by New Lamu Port will be the cargo imported by and exported from Ethiopia and Southern Sudan. A part of cargo transported by the Northern Corridor will be diversified to New Lamu Port as well due to limited capacity at the Port of Mombasa. On the other hand, air passenger demand is also projected for Lamu, Isiolo and Lokichokio. In 2030, Lamu airport is expected to receive 600,000 arrivals per annum. A certain number of railway passengers on the Corridor trains are also expected, especially after the tourism corridor will have been fully developed. Passengers traveling between Nairobi and Isiolo by cars and buses are projected to be more than 7 million persons per year in 2030. It is estimated that by the year 2030, there will be a road passenger traffic volume of 700,000 between Nairobi and Lamu through Garissa. According to the demand forecast and other data available (see Appendix attached), the economic analysis carried showed that the Lamu Port is a viable venture with an EIRR of 23.4%

a) It will enable the country to have a second international port besides Mombasa, providing an alternative and additional trade route to the Northern Corridor. Increased trade will promote the development of productive economic activities within the country.

b) The anticipated substantial increases in the population of Lamu in the short to medium terms (2012-2020) and in the long term (2020-2030), respectively, will create considerable demand for goods and services in the area with a strong impact on economic activities in the hinterland and beyond.

c) By stimulating economic activities in various sectors, the port will strengthen economic linkages among various economic sub-sectors of the domestic economy.

Other employment opportunities will be created in agricultural and manufacturing sectors, service sectors, including wholesale and retail trade, tourism, maintenance and repair services for motor vehicles, ships, etc. All this will lead to increased demand for housing, schools and other educational facilities, and to increased demand for health services leading to improvement in the livelihoods of the local communities.

The development of Lamu Port under LAPSSET Corridor will also create considerable employment opportunities for people from many regions of Kenya and from the neighbouring countries, namely, Sudan and Ethiopia. Interaction between the port and its hinterland will be particularly important in enabling shippers to “rely on seamless transport chains of which the port will be a prominent node.1” Lamu will also provide an ideal location for the export-oriented industries planned to be established in its adjacent hinterland. By sharing the basic infrastructure such as water, electricity, solid disposal systems, communication, on-land transport, these component factories will minimize their costs and achieve competitiveness of their products both on the domestic and export markets. These industries will include fish processing, oil refinery, manufacture of petroleum products, textiles, ship repair and building and construction.

i)Port Building: 100% complete.
ii)Police Station: 100% complete.
iii)Design review ongoing for the first three berths, with construction to begin in July, 2014
iv)The physical development plan and survey for the Port area has been completed.

source:http://www.lapsset.go.ke/lamu