PR Resource – Muarateweh.net

Kenya Shippers Council (KSC) says only a comprehensive cargo transport policy can solve the persistent problem of skyrocketing production costs in the country.

The organisation, which is emerging as a forceful lobby on shipping matters, says it is spearheading a broadbased process to develop a new policy for the cargo transport sector.

“Our key focus is to bring down the cost of doing business by mitigating on the cost of transport, which accounts for between 30 and 40 per cent of the cost of production,” says Mr Gilbert Langat, the Kenya Shippers Council chief executive officer.

The rate, he says, is far above the international benchmark of 15 to 20 per cent and makes Kenya one of the most expensive markets in the world.

The CEO was quick to state that the policy initiative is not going to contradict the existing policies saying: “The KSC is taking into consideration the policies already in existence and in use by Government agencies.”

Having been duly recognised by the Government as the cargo owners’ representative, the KSC, according to Langat, will provide the private-sector expertise in supply chain, which is going to be crucial in the overall government policy.

The body will through consultations with the relevant government ministries and the private sector push for reforms in the way of doing business and rid the industry of various bottlenecks responsible for the high cost of transport.Already the organisation has embarked on a study on the costs of transport in the region with a view of addressing the myriad costs that are considered double charges.

“The study is meant to benchmark the costs against similar economies in the world. We have in the past relied on information supplied by external parties, who may not necessarily have an appreciation of the state and circumstances of our operations,” the KSC boss admits.

The shippers in the country, he says, are particularly not amused with the manner in which all sorts of committees and task forces were being formed to address biting problems of the shippers only for the recommendations to be shelved by the relevant governmental agencies.

To illustrate the seriousness of the shippers on this matter, he says that KSC has resolved not to take part in any task force and committees whose findings are not being effected by the relevant governmental agencies.

“We will take part in only those committees whose mandate and timelines are clear, and we will seriously follow up on any recommendations to logical conclusion,” the CEO quipped.

He nevertheless acknowledged the support that the Government had continued to accord the organisation including the official recognition of KSC as the representative of the cargo owners besides involving the body in various forums.

To ensure that the dream of a sound cargo transport policies become a reality, the council would continue working together with the influential Kenya Association of Manufacturers (KAM) and the Kenya Private Public Sector Alliance (KPPS).

quipment constraints; slow off take on inland transport (Rail and Road); and increase in port turnover by 40 per cent in the last 5 years.

Langat referred to the existing cordial relationships between the organisation and Ministry of Transport, Roads, EAC, Trade and Finance as key to the success of pursuing the shippers’ agenda.

“We currently hold monthly meetings with the Ministry of transport and sit in several committees to provide private sector linkage with government. We are also in the Board of Kenya National Highway Authority to address issues of infrastructure and roads development and management.

“We have also been involved in regional meetings such as the Joint Government Mission to land locked countries in March 2008, 1st Retreat of EAC ministers in Kampala in April, among other local and international forums,” the CEO said.

The organisation also played a visible role in the recent cargo transport crisis precipitated by the December – February post election conflict in the country.

He assured the shippers that KSC would take a lead in the issues of transport and logistics in the region, adding that it was currently developing in-house capacity to be the source of both qualitative and quantitative information on logistics.

Officially launched in October 2006, the body draws its membership from the Kenya Association of Manufacturers (KAM), Fresh Produce Exporters Association of Kenya (FPEAK), East African Tea Trade Association (EATTA), East African Cement Producers Association (EACPA), Kenya Coffee Traders Association (KCTA), Petroleum Institute of East Africa (PIEA).

It would appear that after years of alleged exploitation by shipping lines and inland transporters through amorphous charges, the shippers are now raring to make the former and the government to account for every coin and regulation that touches cargo transport.

Source: bdafrica.com