News & Information



21
August
2020

The Naivasha ICD positions as an important Transit and Transport node


By: TTCA
Summary/Brief
Two months after being operational, the Inland Container Depot (ICD) at Naivasha has positioned itself as an essential node; connecting road and railway networks, with a marshalling area having the capacity to hold over 700 trucks at any given time. The 45,000-square-meter facility can handle over two million tonnes of cargo annually.


Two months after being operational, the Inland Container Depot (ICD) at Naivasha has positioned itself as an essential node; connecting road and railway networks, with a marshalling area having the capacity to hold over 700 trucks at any given time. The 45,000-square-meter facility can handle over two million tonnes of cargo annually.

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Naivasha Inland Container Depot before the start of operations

By handling cargo destined for Uganda, Rwanda, South Sudan, Ethiopia, Burundi and the Democratic Republic of Congo, the facility reduces the transit distance for the Member States by more than 570km.

The Naivasha ICD operates under a One Stop Centre (OSC) model where all government agencies clear cargo. The OSC at ICD Naivasha is set to house all regional Revenue Authorities; including Kenya Revenue Authority (KRA), Uganda Revenue Authority (URA), Rwanda Revenue Authority (RRA), Tanzania Revenue Authority (TRA) and “Office Burundais des Recettes” (OBR).

The ICD at Naivasha was commissioned in May 2020 to enhance the throughput at the port of Mombasa, decongest the Port of Mombasa and the ICD in Nairobi, as well as fast clearance of cargo and improved container handling.

Data from the Northern Corridor Quarterly Performance Dashboard reveals that both road and railway delivered a total of 3,381 Twenty Feet Equivalent Units (TEUs) to the Naivasha ICD within the first two months of operation; 874 TEUs in May, increasing to 2,507 TEUs in June 2020. 2,325 TEUs were hauled by rail while 1,056 TEUs were delivered by road.

Out of the 2,325 TEUs hauled by train, 2,245 TEUs were import cargo, 70 TEUs were export cargo while 10 TEUs were empty return containers. A total of 24 trains made calls to the ICD with import cargo, while only six trains handled export cargo.

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A rubber-tyred gantry crane offloads a container on a truck in May 2020

In the month of May 2020, Charges for 20-foot container stood at $600 while charges for 40-foot container stood at $850. To promote the usage and competitiveness of Naivasha ICD, Kenya Railways Corporation (KRC) introduced a 90-day stimulus tariff dubbed ‘Madaraka Express Freight Service’ from Mombasa to Naivasha, effective June 2020, where the freight charges were reduced to $480 for 20-foot containers and $680 for 40-foot containers.

Despite the stimulus package, importers have expressed concerns over possible additional costs in addition to the freight charges, including container handling fees at the ICD, storage costs and transport rates to the final destination, especially where the use of ICDs is made a mandatory passage.

For faster operations and reduced human contact in line with the regional guidelines and measures to reduce the spread of COVID-19 pandemic, Kenya Revenue Authority (KRA) through a press release issued on 26th May 2020 reported that all cargo hauled to the Naivasha ICD facility would be visible to importers and clearing agents through a list on the KRA website that would be updated progressively on a daily basis.

 





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