By Dennis Mayeku
The government of Kenya has began an ambitious multi- trillion shilling project to build Eastern Africa’s first ultramodern port that will boost the transport infrastructure in the region.
President Kibaki played host to some of the region’s heads of business and governments including South Sudan President Salva Kiir and Prime Minister Meles Zenawi of Ethiopia during the ground breaking ceremony held on second March at Lamu.
The project dubbed LAPSSET (Lamu Port-Southern Sudan-Ethiopia Transport Corridor) was launched at a staggering budget of Ksh.2 Trillion. (The Kenyan fiscal year 2011/2012 budget totaled 1.155 trillion shillings for the first time ever prompting various local commentators to claim it was outlandishly over budgeted.)
The port construction is the largest infrastructure project being undertaken in the country currently in terms of budgetary estimate and will bring the number of ports in the country to two.
Konza City and Thika Superhighway are the two other super ambitious projects the Kenya government is engaging in. Even before the completion of Konza City (Ksh. 850 Billion) and Thika Superhighway (Ksh. 27 Billion), the government is yet again involved in a third project.
Sources claim the cost of the project will be financed through a loan from the African Development Bank.
Objectives of the Lamu Port project.
- Transforming the lives of the people in Ethiopia, Southern Sudan and Kenya economically and to serve as a unifying factor in the region.
- The cost of goods is higher in Southern Sudan than in neighboring countries. According to Ethiopian Roads Authority, the project will open up highways and transport corridors to enable the country import its goods through Lamu Port, which will be cheaper than importing via Djibouti.
- To tap South Sudan’s oil energy by constructing a pipeline from Juba to Lamu and another agreement with Ethiopia to help Kenya tap into its sources of energy.
- The project and, more critically an oil pipeline, would help South Sudan break free from the yoke of dependence on Sudan to the north.
- Increase trade between Kenya and Ethiopia in the coming years following the signing of a $743 million deal last June for the construction of an 880 kilometre road connecting Addis Ababa to Nairobi and Mombasa. The road is expected to be completed in three years.
- With more than 80 million people, Ethiopia is the most populous landlocked nation in the world and has the biggest economy by GDP in East and Central Africa; it seriously needs this infrastructure to optimize on production and consumption of its goods and services.
- Further facilitate trade between Kenya and Ethiopia. Kenya’s Economic Survey 2010 showed Nairobi’s exports to Addis Ababa stood at $43.1 million while Kenya imported goods worth $2.4 million.
The Ports’ Location
Magongoni, a serene sea side location in Lamu was chosen because of its naturally deep, wide channel capable of accommodating large ships.
The project will start with construction of three of the planned 32 berths at the Lamu port, whose estimated capacity will be three times that of Mombasa port.
With this project underway, thousands of youth in Lamu will find employment and be part of one of the most ambitious projects in Africa this year.
Lately, LAPSSET has faced resistance from residents of Lamu for fear of losing their land, with some of them moving to court to stop its commencement.
During the ground breaking ceremony, Kenya’s Prime Minister, Raila Odinga said: “When the Mombasa-Uganda railway was launched in 1895, it was described as the Lunatic Express but the doubters were eventually proved wrong.”
President Kibaki, President Kiir, PM Zenawi and PM Odinga expressed mutual confidence that the project will be completed in 2015 and bring forth joint benefits among Kenya, South Sudan and Ethiopia.
Lamu Port is expected to contribute between 2 and 3 per cent of Gross Domestic Product (GDP) to the economy of Kenya.
“Residential houses are sprouting all over Lamu while traffic between the town and Mombasa has shot up in recent months as speculative investors acquired more and more land before it reaches exorbitant prices,” said Mr. Mwenda Thuranira, Chairman of the Kenya Property Development Association Mombasa division.
In addition, a fibre optic feed will connect the entire corridor to international airports located in Lamu, Isiolo and Lokichoggio, three important towns along the new transport corridor.
Other projects associated with the port
LAPSSET will also include the construction of a 1,710 kilometer railway line and a 880 kilometer highway linking Lamu to Ethiopia and South Sudan and a 2,240 kilometer oil pipeline connecting oil fields in South Sudan to refineries at the Lamu Port.
Other components of the Lamu Port project include construction of three resort cities at Lamu, Isiolo and near Lake Turkana; construction of airports in the resort cities and setting up of associated infrastructure such as a 1,100MW power line and a 185 kilometer water supply line.
Most of these projects are anticipated to be complete by the year 2015.
Northern Kenya not alienated
One of the LAPSSET associated projects is the Isiolo International Airport, which is scheduled for completion by the end of this month.
Officials at the site say plans are ongoing for the Kenya Airports Authority to take over the 1.4 km runway.
The airport is being constructed at a cost of Ksh. 610 million and is the second such facility to be put up in northern Kenya after the Wajir Airport.
Isiolo International Airport will be expected to handle both passenger and cargo planes and is expected to ease access to northern Kenya especially for potential investors.
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As far as many citizens are concerned the Port of Lamu will be strategic, both politically and economically, to the Eastern Africa region and presents the most suitable gateway to East and Central Africa comparable to Port Alexandria, Cape Town or Lagos.
Do you think the project will attain the much desired cohesion in the Eastern Africa region?
