The new terminal, which is being built at Kilindini Harbour at a cost of Sh28 billion, is expected to ease congestion at the port of Mombasa, making it more attractive and competitive.
The project will create additional space for 550,000 twenty-foot equivalent units (Teus)- raising the port’s capacity to 1.7 million Teus, according to Transport PS Irungu Nyakera.
“When the entire second container terminal with a capacity of 550,000 twenty-foot equivalent units is completed, the port’s capacity will rise to 1.7 million units,” said Mr Nyakera.
The larger berths will handle Panamax container ships of 20,000 DWT and Post Panamax vessels of 60,000 DWT.
The project is financed by a loan from the Japanese government through Japan International Co-operation Agency (Jica) within the Special Terms for Economic Partnership (STEP) at an interest rate of 0.2 per cent and a repayment period of 40 years including a 10-year grace period.
The Japanese government provided Sh26 billion while its Kenyan counterpart invested a compulsory funding of Sh5 billion plus Sh612 million for compensating those displaced by the project.