Regulator to enforce standards on service delivery

By EUGENE OMILO

CFS operators have raised concerns over poor tariff structures dictated to them by the Kenya Ports Authority amongst other pertinent issues which they say affect their profitability.

The tariff structure in particular, touches on the original revenue structure for CFSs’ income which was based on demurrage penalties on late clearance of cargo.

This arrangement, however, has proved unsustainable with improved response from importers over the years.

KMA notes that such structures had the potential of encouraging inefficiency whereby CFSs could deliberately delay container transfer to generate revenue from importers.

As such, the Authority  commissioned a survey to establish the real time costs of the CFS operations and the report has largely informed the ongoing review of the cost structure between KPA and CFSs.

Mrs. Karigithu says it is expected that payment to CFSs will be based on container turnover handled at CFSs as a measure of efficiency and effective performance.

On the issue of over stay containers, the director general says KMA is raising the necessary awareness and working with concerned agencies for timely statutory interventions on over stays.

She says with the Authority’s broad mandate to regulate, coordinate and oversee the country’s maritime affairs, the key objectives are to strengthen maritime administration to create an enabling environment for the development of national capacity in the sector.

By undertaking its roles, she says the Authority expects to address the current issues of concern such as the lack of accountability for costly delays in the flow of cargo, the absence of structures to sustain efficiency and quality of maritime transport services as well as the ineffective coordination of consultation among maritime service providers and general lack of standards on service delivery.

Towards this end, she adds, the Authority is in consultation with key stakeholders to develop Key Performance Indicators for maritime transport services in the country. 

The process will be enriched with the support of development partners with the aim of having all service providers develop among themselves service level agreements against which they will be held accountable for the services they deliver. 

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