THE Mediterranean Shipping Co (MSC) is set to increase its shareholding in the Kenya National Shipping Line (KNSL), which will put it on an equal footing in shareholding with the Kenya Ports Authority (KPA), which currently owns 74.8 per cent, reports the East African Standard.
MSC's stake will be held by Shipping Agencies Services Sarl (SAS), a wholly owned subsidiary of the Swiss-Italian Geneva-based shipping company.
'KNSL will, as part of the joint venture, become the new operator of the Mombasa Container Terminal 2 (CT2) at the port of Mombasa in Kenya and commence offering freight forwarding services and container liner shipping services,' said the Comesa competition watchdog.
'KPA will continue to operate Mombasa Container Terminal 1, Conventional Cargo Terminal, Shimanzi Oil Terminal and the Kipevu Oil Terminal, which are all based in Mombasa as well as the terminals in Lamu, Malindi, Mtwapa, Kiunga, Shimoni, Funzi and Vanga.'
Kenyan Auditor General Nancy Gathungu has in the past cautioned about increasing MSC's stake in KNSL saying KPA's shareholding would be substantially diluted. She also queried how the government settled on the Swiss company as a strategic partner.
'It is not clear how the strategic partner was identified and allotted 108,693 new shares if the above is effected, the allotment of the shares would result in dilution of investment of the Kenya Ports Authority by 21.8 per cent from 74.8 per cent to 53 per cent of the ordinary shareholding in the company (KNSL),' she said.
KPA is building the KES32 billion (US$27 million) second container terminal, which is being financed by the Japan International Cooperation Agency (JICA), with construction being undertaken by the Japanese Toyo Construction Company.
The first phase of the second terminal, which was built at a cost of KES26 billion, was completed in 2016 and is being operated by KPA.
There have been concerns about private-owned firms operating the terminal, with players citing the fact that it may take away business from Terminal 1 and, in turn, dent KPA's revenues.
There have also been concerns about a shipping line - such as msc and even KNSL - operating the terminal or other port facility, with experts noting that this could be to the detriment of its competitors.
The Merchant Shipping Act barred shipping lines from operating port facilities, but this was amended in 2019, giving the Transport Cabinet Secretary the powers to exempt government-owned companies from the requirement.
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MSC's stake will be held by Shipping Agencies Services Sarl (SAS), a wholly owned subsidiary of the Swiss-Italian Geneva-based shipping company.
'KNSL will, as part of the joint venture, become the new operator of the Mombasa Container Terminal 2 (CT2) at the port of Mombasa in Kenya and commence offering freight forwarding services and container liner shipping services,' said the Comesa competition watchdog.
'KPA will continue to operate Mombasa Container Terminal 1, Conventional Cargo Terminal, Shimanzi Oil Terminal and the Kipevu Oil Terminal, which are all based in Mombasa as well as the terminals in Lamu, Malindi, Mtwapa, Kiunga, Shimoni, Funzi and Vanga.'
Kenyan Auditor General Nancy Gathungu has in the past cautioned about increasing MSC's stake in KNSL saying KPA's shareholding would be substantially diluted. She also queried how the government settled on the Swiss company as a strategic partner.
'It is not clear how the strategic partner was identified and allotted 108,693 new shares if the above is effected, the allotment of the shares would result in dilution of investment of the Kenya Ports Authority by 21.8 per cent from 74.8 per cent to 53 per cent of the ordinary shareholding in the company (KNSL),' she said.
KPA is building the KES32 billion (US$27 million) second container terminal, which is being financed by the Japan International Cooperation Agency (JICA), with construction being undertaken by the Japanese Toyo Construction Company.
The first phase of the second terminal, which was built at a cost of KES26 billion, was completed in 2016 and is being operated by KPA.
There have been concerns about private-owned firms operating the terminal, with players citing the fact that it may take away business from Terminal 1 and, in turn, dent KPA's revenues.
There have also been concerns about a shipping line - such as msc and even KNSL - operating the terminal or other port facility, with experts noting that this could be to the detriment of its competitors.
The Merchant Shipping Act barred shipping lines from operating port facilities, but this was amended in 2019, giving the Transport Cabinet Secretary the powers to exempt government-owned companies from the requirement.
SeaNews Turkey