For those in the road freight transport industry, constraints at the Port of Mombasa and along the Northern Corridor transport route have driven transport costs to an estimated 30% of the value of traded goods. Available data also shows that operational costs and administrative costs for trucking companies constitute over 80% of the trucking charge.
An impact assessment study done on the Northern corridor indicates that poor truck turnaround time has been attributed to poor cargo off-take and delivery infrastructure, delays by transporters to pick cargo after Port release, delays within transporters facilities, and high frequency of stoppages along the Northern Corridor by drivers. Kenyan trucks are doing about 60,000 – 96,000 KMs/truck/year which has driven costs to an estimated 30% of the value of traded goods. Whereas in the most efficient trade corridors, the average KMs/truck/year is between 120,000 to 150,000 translating into significantly affordable transport and logistic cost which average t about 4% of the value of traded goods. Apparently, the freight costs per kilometer are more than 50% higher than costs in the United States and Europe, and for the landlocked countries, transport costs can be as high as 45% of the value of exports.
It is on this backdrop that the Kenya Transporters Association (KTA) and TradeMark East Africa (TMEA) signed a partnership agreement to enhance quality and efficiency of road transport freight in the country. KTA a signatory to the Mombasa Port Community Charter has committed to work towards attainment of an average of 120,000 KMs/truck/year. To meet this target, they plan to enhance operational capacities of transport operators and offer policy and regulatory alternatives that support a conducive business environment.
In the partnership TMEA has committed $532,549.50 to support KTA interventions. These interventions are expected to contribute to the enhancement of safety and service delivery through improved compliance with transport laws and industry standards leading to reduction in related costs. The project is expected to be undertaken over the next three years.