Rebirth of KNSL a game-changer
The recent rejuvenation of the state-owned Kenya National Shipping Line (KNSL) has enlivened the competitive situation vis-à-vis foreign shipping lines. KNSL was not operational of late has resumed business and is set to take over a second container terminal of the Kenya Ports Authority. The facility was opened in 2016 and has the capacity to handle approximately 550,000 teu a year.
Nancy Karigithu, the government’s first principal secretary in the ministry of transport’s state department for shipping and maritime affairs, told parliament that the government will be in a position to influence the prices for imports, exports and insurance premiums through tariff reductions. It will offer reduced tariffs and partnerships with other shipping lines, in order to reduce import costs.
KNSL is exclusively mandated to handle public cargo. Karigithu has estimated that rejuvenating the carrier will save the country more than USD 20 million in berthing costs which it pays for oil imports. (kd)