(JUBA) – The Government of South Sudan has called on Kenya to review cargo handling charges and container deposits at the Mombasa port to reduce the cost of trade and improve business competitiveness. The move aims to make imports and exports more affordable and encourage higher trade volumes along the Northern Corridor.
Kenya’s Mombasa port serves as the primary entry point for South Sudanese cargo, handling nearly 1.1 million tonnes annually. South Sudan accounts for 9.9 percent of this traffic, making it the second largest client after Uganda. Currently, each container destined for South Sudan attracts a charge of KSh 720,000 (approximately $5,000) or 35,500,000 SSP, considered high by South Sudanese authorities.
South Sudan Ambassador to Kenya, Anthony Kon, said the steep charges are forcing some traders to abandon shipments at the port. He added that the fees are over three times higher than those for neighbouring countries like Uganda and Rwanda. Kon said lowering these costs would enhance competitiveness and expand trade in the region.
The Executive Secretary of the Northern Corridor Transit and Transport Coordination Authority, John Deng, confirmed that discussions are ongoing to address bottlenecks in cargo movement. South Sudan is advocating for alternative guarantees for container returns, which could reduce deposit requirements and lower shipping costs.
Shipping delays also attract significant demurrage fees. For a 40 foot container, charges start at KSh 5,760 (approximately $40) or 284,000 SSP per day for the first seven days, rising to KSh 10,080 ($70) or 497,000 SSP per day for the next seven days, and KSh 14,400 ($100) or 710,000 SSP per day after two weeks. For a 20-foot container, fees begin at KSh 2,880 ($20) or 142,000 SSP per day, rising to KSh 5,040 ($35) or 249,000 SSP per day for the next seven days, and KSh 7,200 ($50) or 355,000 SSP per day thereafter. Traders may also face replacement charges ranging from KSh 432,000–864,000 ($3,000–6,000) or 21,300,000–42,600,000 SSP depending on container condition.
Emmanuel Kachoul, chairman of the South Sudan Business Community in Mombasa, said plans are underway to establish empty container depots along the route from Mombasa through Uganda to Juba. Locations include Nesitu, Kaya, Nimule, Nadapal, and Kampala. These depots will help repatriate containers and decentralise logistics, while electronic cargo tracking systems are being considered to improve transparency.
High Shipping Costs Challenge South Sudan Traders
| Aspect | Details |
|---|---|
| Location | Mombasa Port (Kenya) – Cargo to South Sudan |
| Current Container Deposit | KSh 720,000 / $5,000 / 35,500,000 SSP |
| Demurrage Fees 40-foot Container | First 7 days: KSh 5,760 / $40 / 284,000 SSPNext 7 days: KSh 10,080 / $70 / 497,000 SSPAfter 14 days: KSh 14,400 / $100 / 710,000 SSP |
| Demurrage Fees 20-foot Container | First 7 days: KSh 2,880 / $20 / 142,000 SSPNext 7 days: KSh 5,040 / $35 / 249,000 SSPAfter 14 days: KSh 7,200 / $50 / 355,000 SSP |
| Container Replacement Fees | KSh 432,000–864,000 / $3,000–6,000 / 21,300,000–42,600,000 SSP |
| Problem Highlighted | High deposit and demurrage fees discourage traders and increase cost of doing business |
| Government Action | South Sudan urges Kenya to review charges, set up empty container depots, and introduce alternative guarantees for container returns |
| Key Officials | Ambassador Anthony Kon (South Sudan), John Deng (Northern Corridor Transit Authority), Emmanuel Kachoul (South Sudan Business Community, Mombasa) |
| Trade Impact | Reducing charges expected to enhance competitiveness, expand trade volumes, and lower import costs |
| Proposed Solutions | Establish empty container depots, decentralise logistics, implement electronic cargo tracking, provide trader awareness and capacity-building programs |
Ambassador Kon and his Ugandan counterpart, Paul Malong, emphasised the need for fair and equitable trade practices to reduce financial burdens on South Sudanese traders while promoting regional trade. Awareness campaigns and trader training are also planned to ensure timely return of containers and compliance with port regulations.
Container Charges
| Container Type | Deposit Fee (KSh/USD/SSP) | Demurrage Fee First 7 Days (KSh/USD/SSP) | Demurrage Fee Next 7 Days (KSh/USD/SSP) | Demurrage Fee After 14 Days (KSh/USD/SSP) |
|---|---|---|---|---|
| 40-foot | 720,000 / 5,000 / 35,500,000 | 5,760 / 40 / 284,000 | 10,080 / 70 / 497,000 | 14,400 / 100 / 710,000 |
| 20-foot | 720,000 / 5,000 / 35,500,000 | 2,880 / 20 / 142,000 | 5,040 / 35 / 249,000 | 7,200 / 50 / 355,000 |
| Container Replacement | 432,000–864,000 / 3,000–6,000 / 21,300,000–42,600,000 |
