SHIPPING,TRADE TRENDS AND THEIR IMPACTS ON PORT INFRASTRUCTURE Partnering with the Media to Promote understanding of the Port Dynamics and Transport logistics along the Northern corridor Presented by Antony Murithi Corporate Development, KPA 20th November 2012 Mombasa Continental Resort and SPA

Content Introduction Drivers of Global Trade Trade Pattern Evolution of Shipping KPA Port Performance Impact on Port Developments Conclusion

Introduction Structural changes in international trade and the evolution of maritime transport have a direct impact on port growth and expansion

Goods Loaded (Exports) Goods Unloaded (Imports) World Seaborne Trade Maritime accounts for 80% of the global World Seaborne Trade by Cargo Type and Country Group (2010) trade Port Group Goods Loaded (Exports) Goods Unloaded (Imports) Grand-Total Liquid Cargo Dry Cargo Sub-Total Millions of Tons World 2,752.4 5,655.9 8,408.3 2,908.2 5,469.6 8,377.8 16,786.10 Africa 425.1 308.2 733.3 81.3 318.0 399.3 1,132.60 Kenya 0.2 2.4 2.6 6.6 9.6 16.2 18.78 Percentage Share 100% 15.44% 5.45% 8.72% 2.80% 5.81% 4.77% 6.75% 0.01% 0.04% 0.03% 0.23% 0.18% 0.19% 0.11%

Key Drivers of Global Trade Globalization Containerization Regional integration Transport and communication De-regulation and liberalization of trade and FDIs Rapid growth of emerging and developing countries (commodity boom) Peace and Security

Cargo Profile ('000' Dwt): 2007-2011

Trade Pattern: Origin of Imports (‘000’ tons): 2011

Trade Pattern: Destination of Exports (‘000’ tons): 2011

East-West Shipping Routes Off the Main East West Liner Trade Routes

Evolution of Container Trade Since the 1960s and 1970s vessel capacity grew, individually and collectively Only ten years ago, the largest Panamax vessels carried 4,400 TEU

Evolution of Container Trade Today, the threshold of post Panamax mega carriers of 15,000 TEU and soon to be surpassed when Triple E – expected to raise the threshold to 18,000 TEU (expected in the market by 2013)

The Growing Scale of Ships Evolution of Shipping The Growing Scale of Ships Year Ship Class Capacity (TEU) Length(m) Width(m) Water Dept.(m) 1968 Feeder 750 180 25 9.0 1972 Handy 1500 225 29 11.5 1980 Sup-Panamax 3000 275 32 12.5 1987 Panamax 4500 39 13.5 1997 Panamax/Post-Panamax 5500 325 41 14.1 1999 Post Panamax 8000 345 43 14.5 2007 11000 360 16.0 2010+ 15000 430 58 2010++ Malacca-Max 18000 470 60 21.0

Evolution of shipping In service Today Ordered ( 2009-2013) Orders   In service Today Ordered ( 2009-2013) Orders Size range No. of ships TEU,1000s % of Fleet (TEU) 000 - 499 384 124,184 12 1,920 1.50 500 - 999 823 609,878 93 78,855 12.90 1000 - 1999 1,261 1,779,576 209 311,763 17.50 2000 - 2999 725 1,838,647 118 304,266 16.50 3000 - 3999 332 1,141,898 74 253,997 22.20 4000 - 4999 451 19,768,498 242 1,059,249 53.50 5000 - 5999 286 1,574,918 39 206,734 13.10 6000 - 6999 172 1,118,694 72 469,654 42.0 7000 - 7999 29 213,091 27 196,740 92.30 0ver 8000 198 1,756,513 295 3,217,598 183.20% Total 4,661 12,135,897 1,181 6,100,776 50.30%

Evolution of shipping In 2008, a global container fleet of 4,661 vessels held a capacity of 12.1 million TEU Designs for vessels as 18,000 TEU are expected in the market by 2013 In 2020, vessels of up to 20,000+ TEU are expected This will in turn drive the radical reduction of port calls on major route and push for development of global mega ports served by fully integrated global networks

Evolution of shipping As a result of dredging the Port of Mombasa received the highest number of “first-calls”, with MSC TIA being the largest with 261m length overall (LOA) and carrying capacity of about 4000 TEU

Impact on Port Infrastructures Modern handling equipment- size of STS gantry cranes depends on ships size Higher Drafts- puts pressure to carry out expensive dredging works (channel, berth) Improved cargo handling capacity: yard, new berths Intermodal facilities: rail and road IT infrastructures: cargo operation systems, traffic management in the port, billing, gate operations etc. and their integration Improve port planning and operations

Measures taken by KPA 24/7 Operations Development of CFS Dredging of Mombasa Port Procuring Additional Equipment Construction of Berth 19 Integrated Security System Second Container Terminal Development of Crude Oil Handling Facility Development of Dongo Kundu Free Port LAPSSET

Conclusion The port has increasingly been receiving larger vessels, which includes Panamax vessels The port has experienced one of the highest growth rates in traffic Various investments and other measures have been undertaken to serve the growing traffic There is need for concerted effort by all stakeholders to facilitate cargo clearance and cargo fluidity

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