July 19, 2019

Mombasa Port terminal II to be delayed by court

The commencement of the construction of the second container terminal at Mombasa port could be started at a later stage; this is after a port management firm filed a petition challenging its disqualification from the multi million tender.

According to  Kenya Ports Authority (KPA) the  construction of the second container terminal will start on schedule despite uncertainty surrounding the dredging of Likoni channel.

The two projects are planned to start simultaneously because material to be dug from the channel will be used to reclaim part of the terminal’s site from the Indian Ocean.


The firm, International Container Terminal Services Incorporated (ICTSI) went to court to challenge the Public Private Partnerships Petition Committee and the Kenya Airports Authority for the disqualification that they have received twice in the re-evaluation of the tender that has attracted bids from top global conglomerates.

Apart from ICTSI, Cosco Pacific limited with Paramount Bank Consortium also moved to court over the same claims.

The Second Container Terminal Port of Mombasa tender was advertised on December 12, 2014 and there were 19 bids but only 12 were shortlisted.

It was unlawful for the law to determine a mandatory requirement in an ongoing tendering process.

According to reports, the tender was advertised on December 12, 2014 and there were 19 bids but only 12 were shortlisted. ICTSI supposed that the US$ 293m tender document was amended on April 9, 2015 and that they submitted their technical and financial proposal on July 26, 2015.

International Container Terminal Services, Inc. (ICTSI) is in the business of acquiring, developing, managing and operating container ports and terminals worldwide. Aside from developing new port concessions, ICTSI is also tasked with overseeing operations of all acquired foreign terminals.

COSCO Pacific is the world’s fourth largest container terminal operator and one of the five largest container leasing companies. Benefiting from the synergies among COSCO companies and the long-term support from large-scale shipping companies in China and overseas, they enjoy competitive advantages that have allowed them to expand steadily their two core businesses of terminals and container leasing, management and sale.


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