South Sudan eyes Lapsset to cut freight costs

South Sudan is looking to reduce its freight costs by redirecting more cargo from the port of Mombasa to Lamu. In an exclusive interview with CNBC Africa, Gilbert Langat, CEO of the Shippers Council for Eastern Africa, shed light on the potential benefits and challenges associated with this strategic shift. Langat highlighted the prevailing reliance on the port of Mombasa for cargo transportation, making it a focal point for discussions on delays and inefficiencies in the supply chain. He emphasized the need for collaborative efforts between the Kenya Ports Authority and various government agencies to address these challenges and enhance market access. With South Sudan being a significant market for Kenyan goods, Langat underscored the importance of stabilizing the country as a trading partner. While South Sudan heavily relies on the port of Mombasa for its imports, the move to Lamu could offer a more efficient and cost-effective transportation route. However, Langat pointed out key concerns such as security issues, infrastructure limitations, and unfavorable business policies in South Sudan that need to be addressed to fully capitalize on the potential market. The discussion also touched upon the role of dry ports in easing cargo movements within the region. Langat clarified that the directive from the Kenyan president was not to exclude Naivasha and other dry ports but to empower cargo owners to choose clearance locations based on their preferences. He highlighted the opportunities presented by Naivasha as a strategic location for cargo transfer, especially with the development of rail connectivity from Mombasa to Malaba. According to Langat, the partnership with Kenya Railways to streamline cargo transportation from Mombasa to Malaba in 48 hours could revolutionize the efficiency of cross-border trade. By leveraging rail infrastructure, countries like South Sudan could benefit from secure and expedited cargo delivery, reducing reliance on traditional routes through Mombasa. In conclusion, Langat expressed optimism about the potential of enhancing regional trade dynamics through collaborative efforts and strategic infrastructure development. By leveraging alternative ports like Lamu and optimizing the capabilities of dry ports like Naivasha, East African countries stand to benefit from reduced freight costs, improved security, and enhanced market access. The concerted focus on enhancing trade corridors and infrastructure could pave the way for a more efficient and resilient trading environment in the region.