South Sudan on Saturday, 10 October, began construction of a logistics platform in the Mai Mahiu special economic zone in Kenya, aimed at consolidating and moving its cargo more quickly between the port of Mombasa and Juba.
The project is intended to create an alternative customs clearance and handling centre for South Sudanese imports and exports. It will be connected to the standard-gauge railway corridor from Mombasa, and then to road links to the landlocked countries of East Africa.
According to the Kenya News Agency, Nairobi has allocated free plots of ten acres to several countries in the region to set up their own platforms. South Sudan is the first to have begun work, while Rwanda and Burundi are still preparing their facilities.
Rwanda has separately confirmed its intention to use Mai Mahiu to shorten the route for its goods from Mombasa. Its Minister of Trade and Foreign Affairs, Usta Kayitesi, said Kenyan exports to Rwanda exceeded 300 million dollars, without specifying the cost or the start date of the Rwandan platform.
The Kenya Special Economic Zones Authority presents Naivasha as an interchange between the standard-gauge railway network and the former metre-gauge network. The zone is to combine an inland container depot, a logistics area, rail facilities and industrial parks.
Twenty-four local and international investors have expressed interest, compared with fifteen at the beginning of the year, according to officials quoted by Kenya's public media. Feasibility studies project freight rising from 15 million tonnes currently to 40 million over the next five years, but this estimate is not a guaranteed volume.
The South Sudanese project can reduce delays and congestion only if the rail and road connections, customs procedures and border services operate in a coordinated way. The investment amount, the completion timetable and future handling tariffs have not been disclosed.