Source: Coastweek
Coastweek -- Transport Minister Chirau Ali Mwakwere has called on stakeholders in the maritime industry to support the recently enacted Merchant Shipping Act 2009, to boost trade in the region.
The minister said the operationalisation of the Act will spur economic growth given that 95 per cent of international trade is maritime based.
Speaking during the official opening of a regional stake holders meeting on the establishment of consultation machinery on maritime transport services in Mombasa , the minister moved to allay fears among a section of shipping lines that the new Act would lock out foreigners.
"It is regrettable that some of the stakeholders misinterpreted this new Act as one that has been enacted to restrict foreign direct investment in the maritime transport sector.
"This is not so.
"On the contrary, the Government through my Ministry encourages collaboration between local and foreign firms.
"The Act does not prohibit direct foreign investment in any segment of the logistics chain.
"It addresses the issue of vertical integration of the logistics chain where a few dominate the sector by applying pricing practices that limit the entry of new participants," he added.
The minister said the government had mandated the Kenya Maritime Authority (KMA) to monitor efficiencies and competitiveness of a whole transport logistics supply chain are required in Kenya 's maritime industry.
The regional stakeholders will among other things deliberate on ways of improving the transport infrastructure situation to boost trade.
In her address to the stakeholders, KMA Director General Nancy Karigithu said the country's maritime industry is headed for major streamlining with the implementation of the Merchant Shipping Act, 2009.
The new law will, among other things reduce the cost of maritime transport and ease business in Kenya's shipping industry and the region in general, making the country's exports more competitive in foreign markets and imports more affordable to the common people.
She said the new law is poised to create massive job opportunities by opening a whole new field of opportunities through the separation of various auxiliary duties at the port.
"The main purpose of the Act is to create a comprehensive and modern legal regime for merchant shipping in Kenya .
"It will open the potential in the industry, drastically bringing down the cost of doing business and creating a lot of jobs for Kenyans," said Karigithu.
With over 95 per cent of Kenya 's international trade conducted through the maritime and shipping industry, the government is keen on streamlining the sector to ensure not only that it meets international industry standards, but also that it helps deliver Vision 2030 to Kenyans.
By opening up maritime education Kenyans at both skilled and semi-skilled levels will now have a chance to get jobs in the international shipping, and thus the ability to plough back foreign exchange reserves into the economy in form of salaries.
The new legislation is also expected to address maritime safety, security and marine pollution prevention as well as the preservation of the marine environment.
"It is of cognizable significance that provisions have been made in the Act to address competitiveness and efficiency of service delivery in the maritime sector, an area that has been a major problem to both local traders and consumers as well as the economies of the region that rely on the port of Mombasa," she said.
The law will see the separation of auxiliary shipping services such as ship ownership and clearing and forwarding, ship registration among others in order to encourage competition and create more employment opportunities among Kenyans.
Karigithu said with the enactment of the Shipping Merchant Act ( MSA ) KMA is currently working on modalities to modernise operations within the industry to create a level playing field among stakeholders and empower more local players in the industry.
She assured industry stake holders that the Act will create more business opportunities for local and foreign players with an estimated creation of 50,000 new local jobs in the lucrative auxiliary maritime services sector.
"There is fear among a section of stakeholders that the Act is discriminatory to foreign investors in the shipping industry.
"This is due to misinformation.
"The truth is that the Act will create a level playing ground for all players, whether foreign or local," she said.
Karigithu said the new law will bring down the cost of maritime transport and subsequently reduce the cost of goods by addressing market distortion through discouraging monopolies and opening up the logistics chain to different players, thus making services more competitive.
Coastweek -- Transport Minister Chirau Ali Mwakwere has called on stakeholders in the maritime industry to support the recently enacted Merchant Shipping Act 2009, to boost trade in the region.
The minister said the operationalisation of the Act will spur economic growth given that 95 per cent of international trade is maritime based.
Speaking during the official opening of a regional stake holders meeting on the establishment of consultation machinery on maritime transport services in Mombasa , the minister moved to allay fears among a section of shipping lines that the new Act would lock out foreigners.
"It is regrettable that some of the stakeholders misinterpreted this new Act as one that has been enacted to restrict foreign direct investment in the maritime transport sector.
"This is not so.
"On the contrary, the Government through my Ministry encourages collaboration between local and foreign firms.
"The Act does not prohibit direct foreign investment in any segment of the logistics chain.
"It addresses the issue of vertical integration of the logistics chain where a few dominate the sector by applying pricing practices that limit the entry of new participants," he added.
The minister said the government had mandated the Kenya Maritime Authority (KMA) to monitor efficiencies and competitiveness of a whole transport logistics supply chain are required in Kenya 's maritime industry.
The regional stakeholders will among other things deliberate on ways of improving the transport infrastructure situation to boost trade.
In her address to the stakeholders, KMA Director General Nancy Karigithu said the country's maritime industry is headed for major streamlining with the implementation of the Merchant Shipping Act, 2009.
The new law will, among other things reduce the cost of maritime transport and ease business in Kenya's shipping industry and the region in general, making the country's exports more competitive in foreign markets and imports more affordable to the common people.
She said the new law is poised to create massive job opportunities by opening a whole new field of opportunities through the separation of various auxiliary duties at the port.
"The main purpose of the Act is to create a comprehensive and modern legal regime for merchant shipping in Kenya .
"It will open the potential in the industry, drastically bringing down the cost of doing business and creating a lot of jobs for Kenyans," said Karigithu.
With over 95 per cent of Kenya 's international trade conducted through the maritime and shipping industry, the government is keen on streamlining the sector to ensure not only that it meets international industry standards, but also that it helps deliver Vision 2030 to Kenyans.
By opening up maritime education Kenyans at both skilled and semi-skilled levels will now have a chance to get jobs in the international shipping, and thus the ability to plough back foreign exchange reserves into the economy in form of salaries.
The new legislation is also expected to address maritime safety, security and marine pollution prevention as well as the preservation of the marine environment.
"It is of cognizable significance that provisions have been made in the Act to address competitiveness and efficiency of service delivery in the maritime sector, an area that has been a major problem to both local traders and consumers as well as the economies of the region that rely on the port of Mombasa," she said.
The law will see the separation of auxiliary shipping services such as ship ownership and clearing and forwarding, ship registration among others in order to encourage competition and create more employment opportunities among Kenyans.
Karigithu said with the enactment of the Shipping Merchant Act ( MSA ) KMA is currently working on modalities to modernise operations within the industry to create a level playing field among stakeholders and empower more local players in the industry.
She assured industry stake holders that the Act will create more business opportunities for local and foreign players with an estimated creation of 50,000 new local jobs in the lucrative auxiliary maritime services sector.
"There is fear among a section of stakeholders that the Act is discriminatory to foreign investors in the shipping industry.
"This is due to misinformation.
"The truth is that the Act will create a level playing ground for all players, whether foreign or local," she said.
Karigithu said the new law will bring down the cost of maritime transport and subsequently reduce the cost of goods by addressing market distortion through discouraging monopolies and opening up the logistics chain to different players, thus making services more competitive.
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