Headache for Kenya as Ethiopia, South Sudan yet to fully embrace Lamu Port

Headache for Kenya as Ethiopia, South Sudan yet to fully embrace Lamu Port



The Star

Continued reliance on the Port of Djibouti and recent deal between Ethiopia and Somaliland has thrown a spanner in the works on Kenya’s push to have the neighbouring country fully embrace Lamu Port.

This is under the Sh1.2 trillion Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor, where

the three countries are partners.

Djibouti has given Ethiopia 100 per cent access to its port, which currently handles up to 95 per cent of the landlocked country’s international trade.

The second most populous country in Africa, after Nigeria, has also entered into a deal to use the main port in Somalia’s breakaway region of Somaliland, as the landlocked country seeks more access to sea channels for shipping.

It has acquired a 19 per cent share in the port of Berbera in Somaliland through a deal negotiated by Dubai Ports World, a deal that gives it access to the Red Sea and further North to the Suez Canal, a key global trading route.

“Overall, recognising the long-overdue need for sustainable sea outlets to improve economic performance and global trade presence is a step in the right direction for Ethiopia,” Senior Researcher Eden Tafesework noted.

These developments are now seen to be a headache for Kenya which has been courting Ethiopia to increase its use of Lamu Port, Kenya’s second major sea port.

Since its commissioning in May 2021, less than 70 vessels have called at Lamu Port whose first three berths constructed at a cost of Sh40 billion became operational.

Last year, the port handled 36 vessels and 37,576 tonnes of cargo, up from 6,539 tonnes in 2022, official data shows, majority being transshipment cargo headed to other destination away from Ethiopia and South Sudan.

The first Ethiopian cargo vessel docked at the port in May this year.

Ethiopian vessel MV Abbay II berthed with a consignment of 60,000 metric tonnes of fertiliser, three years after the port became operational, pointing to the underutilisation of Lamu Port by the country despite being a major stakeholder in LAPSSET.

This is despite heavy investment in equipment and personnel by Kenya Ports Authority (KPA).

Ethiopia’s Ministry of Transport and Logistics, State Minister Dhenge Boru noted that the inaugural arrival of Abbay II was a pivotal moment for the region and a testament to the collective vision.

“Lamu Port is not just a harbour but the heartbeat of the Lapsset corridor, and a lifeline that binds Kenya, South -Sudan and Ethiopia in the capacity of trade connectivity,” Boru said during the maiden call by the Ethiopian vessel.