Kenya’s Infrastructure Sector – Increased Trade Driving Transport Infrastructure Development

Kenya’s Infrastructure Sector – Increased Trade Driving Transport Infrastructure Development

Derrick Chikanga, Research Analyst

Environmental and Building TechnologyEnvironmental and Building Technology

13 April 2011

Functional Expertise

• 3 years of research expertise, which include 17 research and 10 consulting projects. Particular expertise in:

- Research, Data Collection and Analysis

- Contacts Establishment

- Project Management

- Writing and Presentation

Industry Expertise

� Experience base covering broad range of sectors, leveraging long-standing working relationships with leading

industry participants’ Senior Executives

- Water and Wastewater Treatment Technologies

- Waste Management and Waste-to-energy

- Air Pollution Control

- HVAC and Lighting Equipment

Derrick Chikanga

2

- HVAC and Lighting Equipment

What I bring to the Team

• Solid Research and Analytical Skills

• Client Relationship Management

• Industry Experience

• Broad Network of Industry Contacts

Career Highlights

• Extensive expertise in the South African environmental sector

Education

• BCom (Hons) Financial Analysis & Portfolio Management from University of Cape Town, Cape Town, South Africa

• BCom (Hons) Economics from University of Cape Town, Cape Town, South Africa

• BCom Economics & Finance, Cape Town, South Africa

Derrick ChikangaResearch Analyst

Frost & Sullivan

South Africa

Cape Town

Agenda

3 Future Projects: What are the Opportunities?

1

2

4 Conclusions

Kenya’s Transport Sector: What is The Current State of Affairs?

Current Projects: What are The Current Developments in Kenya?

3

4 Conclusions


A104A104

Kenya’ s Road Network

Kenya’s Railway Network

235 km235 km

217 km217 km

69 km69 km

90 km90 km

70 km70 km

65 km65 km

4

A104A104

A109A109

A109A109

129 km129 km

140 km140 km

•Main road artery comprises of the A109 & A104 road

networks

•Main road artery comprises of the A109 & A104 road

networks

• Kenya’s main railway line runs from Mombasa-Nairobi-Uganda

• This is the main route of transporting freight inland into other

landlocked countries

• Kenya’s main railway line runs from Mombasa-Nairobi-Uganda

• This is the main route of transporting freight inland into other

landlocked countries

Road Infrastructure Sector

• Kenya has a total of 63, 572 kilometres of

road infrastructure

•The majority of Kenya’s road infrastructure

comprises gravel and earth surfaces

•Minor roads make up the bulk of Kenya’s

Road Infrastructure Sector

• Kenya has a total of 63, 572 kilometres of

road infrastructure

•The majority of Kenya’s road infrastructure

comprises gravel and earth surfaces


Road Class PremixSurface

DressingGravel Earth

Total

(km)

International

Trunk Roads (A)1,242.91 1,563.81 715.11 94.48 3,616.31

National Roads

(B)350.21 1,166.26 819.29 346.14 2,681.90

Primary Roads 567.89 2,198.16 3,601.64 1,627.90 7,995.59

Roads and Transport Sector: Length of Kenya’s Road Network System by Surface Type (Kenya), 2010


5


infrastructure network (42%), followed by

Special Purpose (18%), Secondary (17%) and

Primary roads (13%)


infrastructure network (42%), followed by

Special Purpose (18%), Secondary (17%) and

Primary roads (13%)

(C)567.89 2,198.16 3,601.64 1,627.90 7,995.59

Secondary

Roads (D)76.63 1,183.10 5,701.93 4,087.73 11,049.39

Minor Roads (E)99.81 542.04 8,215.89 18,048.57

26,906.31

Special Purpose

Roads (SPR)24.88 114.63 4,929.69 6,253.78 11,322.98

All Classes

Total2,362.33 6,768.00 23,983.55 30,458.60 63,572.48

Note: All figures are rounded; base year is 2010. Source: Frost & Sullivan

Rail Infrastructure Sector

• Currently Kenya has 2,778 km of rail network

that links the port of Mombasa to Nairobi and

onward into Uganda. This is a single-track

railway system owned by the government

parastatal, Kenya Railways Corporation (KRC)

• Kenya’s main railway networks include the

Rail Infrastructure Sector

• Currently Kenya has 2,778 km of rail network

that links the port of Mombasa to Nairobi and

onward into Uganda. This is a single-track

railway system owned by the government

parastatal, Kenya Railways Corporation (KRC)


Route Length (km)

Mombasa – Nairobi - Malaba 1,152

Gilgil - Nhahururu 771

Nairobi - Nanyuki 235

Nakuru - Kisimu 217

Konzi - Magadi 140

Rail Sector: Length of Kenya’s Rail Networks (km), 2009


6


Mombasa – Nairobi – Malaba and Gilgil –

Nhahururu networks. These constitute 69.2

percent of Kenya’s entire rail network system


Mombasa – Nairobi – Malaba and Gilgil –

Nhahururu networks. These constitute 69.2

percent of Kenya’s entire rail network system

Voi - Taveta 129

Rongai – Solai 70

Kisimu – Butere 69

Leseru - Kitale 65

Total 2,778


Port of Mombasa

• Kenya’s port of Mombasa (Mombasa) is the

second largest in sub-Saharan Africa after

Durban in terms of tonnage and containers

handled

•Between 2005 and 2009 the volume of

containers handled by Mombasa increased by

41.7 percent

• Compound annual growth rate (CAGR) of

Port of Mombasa

• Kenya’s port of Mombasa (Mombasa) is the

second largest in sub-Saharan Africa after

Durban in terms of tonnage and containers

handled

•Between 2005 and 2009 the volume of

containers handled by Mombasa increased by

41.7 percent

• Compound annual growth rate (CAGR) of

Container Type 2005 2006 2007 2008 2009

Imports 207,796 229,465 282,036 297,388 307,847

Exports 201,587 218,554 266,860 283,890 301,453

Transhipment 27,288 31,336 36,471 34,455 9,516

Total 436,671 479,355 585,367 615,733 618,816

Ports Sector: Volume of Containers (TEUs), 2005 - 2009


7

11.8% between 2005 and 2009 11.8% between 2005 and 2009

Container Type 2005 2006 2007 2008 2009

Imports 10.7 11.8 13.1 13.3 16.5

Exports 2.3 2.3 2.5 2.7 2.5

Transhipment 0.3 0.3 0.4 0.4 0.1

Total 13.3 14.4 16.0 16.4 19.1

Ports Sector: Weight of Containers (Million Tonnes), 2005 - 2009

Port of Mombasa

• With regards to weight, imports are

significantly heavy compared to exports

• Mombasa receives various imports for different

destinations. However it’s exports include light-

weight products such as tea and coffee

• Achieved a CAGR of 9.5% between 2005 and

2009

Port of Mombasa

• With regards to weight, imports are

significantly heavy compared to exports

• Mombasa receives various imports for different

destinations. However it’s exports include light-

weight products such as tea and coffee

• Achieved a CAGR of 9.5% between 2005 and

2009

AirportNumber of

Aircraft

Number of

Passengers

Freight

Statistics

(tonnes)

Length of

runway(m)

Jomo Kenyatta Int.

Airport 82,903 5,253,685 246,984.60 4,117

Moi Int. Airport 22,526 1,193,556 6,176.70 3,350

Eldoret Int. Airport 3,853 81,868 7,377.40 3,500

Total 109,282 6,529,109 260,538.70 10,967

Airports Sector: Statistics of Kenya’s Airports, 2010

Airports Sector

• Currently Kenya has a total of three

international airports and 6 domestic airports

• In 2010 Kenya’s international handled

approximately 6.5 million international and

domestic passengers

•Further approximately 260,538 tonnes of

freight was handled by these airports in 2010

Airports Sector

• Currently Kenya has a total of three

international airports and 6 domestic airports

• In 2010 Kenya’s international handled

approximately 6.5 million international and

domestic passengers

•Further approximately 260,538 tonnes of

freight was handled by these airports in 2010


8

Total 109,282 6,529,109 260,538.70 10,967

Agenda

3 Future Projects: What are the Opportunities?

1

2

Kenya’s Transport Sector: Current State of Affairs

4 Conclusions

Current Projects: What are the Current Developments in Kenya?

9

4 Conclusions


Class Route Value ($ million)

A2 Nairobi – Thika (Lot 1, 2 and 3) 323.1

A2 Isiolo- Merille 62.3

A104 Athi River Mananga 76.7

C39 Stand Khisa Khumusalaba 9.2

C19 Kendu Bay- Homa Bay 41.5

C19 Homa Bay – Mbita 41.8

Project Value : Percentage Value (Kenya)

Note: All figures are rounded; base year is 2010.

Road Infrastructure : Ongoing Projects (Kenya)

A2 and A104, 58.5%

Class C and D, 41.5%

10

C19 Homa Bay – Mbita 41.8

C22 Ndori-Ng’iya 16.8

C35 Londiani - Fort Tanan 53.8

C2/D246 Rang’ala-Siaya-Bondo 18.9

C71 Murang’a – Sagana 19.2

C107 Mariakani – Kilifi 31.7

C92/E789 Ena – Ishiara – Meru 39.7

C24 Bomet – Litein 20.9

C102 Emali – Oloitokitok 52.3

Total 807.9


Current Projects in The Roads Sector

• Currently Kenya has 16 ongoing projects

valued at approximately $807.9m million.

• The majority of these projects are focused on

upgrading Class C and D roads

• Only two international trunk roads (A2 and

A104) are currently undergoing repairs and

maintenance.


• Currently Kenya has 16 ongoing projects

valued at approximately $807.9m million.

• The majority of these projects are focused on

upgrading Class C and D roads

• Only two international trunk roads (A2 and

A104) are currently undergoing repairs and

maintenance.

Rail Sector: Networks Upgrading Projects, 2011

Project Name Expected Start DateProject Cost

($ million)Contractor

Construction of a new station in Nairobi that forms part of the new proposed commuter rail system

2011 3.1 El Noor Construction Ltd

Rehabilitation of 160 km of existing

railway system within Nairobi and the

construction of a new 7 km line between

Nairobi and Unit 3 at Jomo Kenyatta

2011 23.5 KRC


11

Current Projects in The Rail Sector

• In 2011, Kenya’s rail sector anticipates to undertake various construction and rehabilitation projects valued at $332.9 million

• The largest project will be the multi-phase project linking Nairobi with Thika, Limuru, Athi River and Lukenya

Current Projects in The Rail Sector

• In 2011, Kenya’s rail sector anticipates to undertake various construction and rehabilitation projects valued at $332.9 million

• The largest project will be the multi-phase project linking Nairobi with Thika, Limuru, Athi River and Lukenya

Nairobi and Unit 3 at Jomo Kenyatta

International Airport

A multi-phased project involving theconstruction of a railway network linkingNairobi with Thika, Limuru, Athi River andLukenya

2011 296.4 KRC

Construction of the Jomo KenyattaInternational Airport (JKIA) – Embakasi –Nairobi city centre railway link

2011 9.9 KRC

Project NameExpected

Start Date

Expected

End Date

Project Cost

($ million)

Construction of a second container terminal

2011 2013 197.6

Conversion of Berths


Current Projects in The Ports Sector

• Kenya’s Ports Authority (KPA) plans to construct a

second container terminal that increase handling

capacity by 450 000 TEUs

• KPA also plans to convert berths 11 -14 from

handling general cargo to handling container

Current Projects in The Ports Sector

• Kenya’s Ports Authority (KPA) plans to construct a

second container terminal that increase handling

capacity by 450 000 TEUs

• KPA also plans to convert berths 11 -14 from

handling general cargo to handling container

Ports Infrastructure Sector: On-going Upgrading Projects, 2011

12

11-14 from handling

general cargo to

container vessels

2011 2012 72.0

Expansion of berth18 terminal

2011 2012 N/A


vessels. This is expected to increase capacity by

1,200,000 TEUs

• Berth 18 will be expanded by 160 metres in order

to accommodate three standard size container ships

• KPA expects to increase capacity to 2.3 million

TEUs after the completion of all current projects

vessels. This is expected to increase capacity by

1,200,000 TEUs

• Berth 18 will be expanded by 160 metres in order

to accommodate three standard size container ships

• KPA expects to increase capacity to 2.3 million

TEUs after the completion of all current projects

Agenda

3

Current Project Analysis: What are the current developments in Kenya?

1

2

Kenya’s Transport Sector: Current State of Affairs?

4 Conclusions

Future Projects: What are the Opportunities?

13

4 Conclusions


Route Length (km) Value ($ million)

Eldoret - Webuye (A104) 60 41.8

Webuye-Malaba (A104) 61 47.5

Voi-Mwatate (A23) 26 28.0

Marsabit - Turbi (A2) 121 160.5

Lanet-Ndundori (C66) 29 12.3

Road Infrastructure : Future Projects (Kenya)

Future Projects in The Roads Sector

• Between 2011 and 2014 Kenya plans to

undertake 18 road construction and

maintenance projects valued at $313.1 million.


• Between 2011 and 2014 Kenya plans to

undertake 18 road construction and

maintenance projects valued at $313.1 million.

14

Various roads in Nairobi 51.8 23.0

Total 348.8 313.1


Eldoret - Webuye

(A104), 13.4%

Webuye-Malaba

(A104) , 15.2%

Voi-Mwatate

(A23) , 8.9%Marsabit - Turbi

(A2), 51.3%

Lanet-Ndundori (C66)

, 3.9%

Various Projects, 7.3%

Project Value : Future Projects (Kenya)


• Major contracts will be for the maintenance and

rehabilitation of international trunk roads.

•The largest contract will be for the rehabilitation and

maintenance of the A2 highway between Marsabit and

Turbi


• Major contracts will be for the maintenance and

rehabilitation of international trunk roads.

•The largest contract will be for the rehabilitation and

maintenance of the A2 highway between Marsabit and

Turbi


• The Northern Corridor has been identified as a priority

area for private sector investment

• Kenya’s main road arteries that have been identified for

concession include:

� Mombasa (B) – Nairobi (B) – Mau Summit –

Kisimu – Uganda border


• The Northern Corridor has been identified as a priority

area for private sector investment

• Kenya’s main road arteries that have been identified for

concession include:

� Mombasa (B) – Nairobi (B) – Mau Summit –

Kisimu – Uganda border

RouteRehabilitation

($ Million)

Reconstruction

($ Million)

Mombasa (B) –

Nairobi (B) – Mau

Summit – Kisimu –

Uganda Border

416.7 583.3

Mau Summit –

Roads and Transport Sector: Rehabilitation and Reconstruction Costs of Major Highways (Kenya)


15

� Mau Summit – Eldoret (B) – Uganda border

�The road networks undergo frequent rehabilitation and

reconstruction and a total cost of $520.9 and $729.9

million

� Mau Summit – Eldoret (B) – Uganda border

�The road networks undergo frequent rehabilitation and

reconstruction and a total cost of $520.9 and $729.9

million

Mau Summit –

Eldoret (B) –

Uganda Border

104.2 145.8

Total 520.9 729.9



• Kenya’s Ministry of Publics Works is currently undertaking

initiatives to promote private sector participation in the

construction of static weighbridges and axle load controls

� Currently there are a total of 13 weighbridges in

Kenya, five of which are static and the rest are mobile


• Kenya’s Ministry of Publics Works is currently undertaking

initiatives to promote private sector participation in the

construction of static weighbridges and axle load controls

� Currently there are a total of 13 weighbridges in

Kenya, five of which are static and the rest are mobile

Location of weighbridges in Kenya


16

� The static weighbridges are located at Mariakani, Gilgil, Athi

River, Webuye and Isebaniya. Mobile weighbridges are

situated in Eldoret, Kisimu, Malaba, Juja, Busia and Mtwapa,

Isinya and Mai-Mahiu

� Currently, there are plans in place to replace the mobile

weighbridges with static ones at Malaba, Namanga (currently

located at Isinya), Juja (on the Nairobi - Thika road) and on

the Mombasa – Malindi road

� The static weighbridges are located at Mariakani, Gilgil, Athi

River, Webuye and Isebaniya. Mobile weighbridges are

situated in Eldoret, Kisimu, Malaba, Juja, Busia and Mtwapa,

Isinya and Mai-Mahiu

� Currently, there are plans in place to replace the mobile

weighbridges with static ones at Malaba, Namanga (currently

located at Isinya), Juja (on the Nairobi - Thika road) and on

the Mombasa – Malindi road

Section RequirementsCost

($million)

Mombasa –Nairobi (530 km)

This section is laid with 95

pound (lb) and requires spot

improvements and

replacement of rails and

sleepers

5.0

Nairobi –

This section requires upgrading

from 95 to 110 lb, replacement

Rail Sector: Networks Upgrading Requirements, 2010

Future Projects in The Rail Sector

•Various sections of Kenya’s railway network are in

urgent need of refurbishment

• These sections include the following railway lines:

� Mombasa – Nairobi

� Nairobi – Malaba

� Nakuru – Kisimu

Future Projects in The Rail Sector

•Various sections of Kenya’s railway network are in

urgent need of refurbishment

• These sections include the following railway lines:

� Mombasa – Nairobi

� Nairobi – Malaba



17

Nairobi –Malaba(550 km)

from 95 to 110 lb, replacement

of sleepers and reconstruction

of culverts

62.0

Nakuru –Kisimu(217 km)

Upgrading of the 60 km

Nakuru to Mau Summit rail

was undertaken in 2002. This

involved upgrading the line

from 60lb to 80lb. However the

remaining 160 km between

Mau Summit and Kisimu is in

urgent need of upgrading

47.0


• The Nakuru – Kisimu railway network is considered

to be in the worst state, when compared to other

networks, and is in urgent need of upgrading

• The rehabilitation of Kenya’s railway networks is

estimated to cost a total of $114.0 million and should

cover approximately 1,297 km


• The Nakuru – Kisimu railway network is considered

to be in the worst state, when compared to other

networks, and is in urgent need of upgrading

• The rehabilitation of Kenya’s railway networks is

estimated to cost a total of $114.0 million and should

cover approximately 1,297 km

Agenda

3

Current Project Analysis: What are the Current Developments in Kenya?

1

2

Kenya’s Transport Sector: Current State of Affairs?

4 Conclusion

Future Projects: What are the Opportunities

18

4 Conclusion

Conclusion

• Kenya’s Port of Mombasa is anticipated to

experience an increase in the volume of goods

due to increased trade

� This Port experienced an 16.8 percent

increase in the volumes of goods handled

between 2008 and 2009

� This volume is anticipated increase further


Ports Sector: Mombasa Throughput (million tonnes), 2008 -2009

14.00

15.00

16.00

17.00

18.00

19.00

Th

rou

gh

pu

t (m

illi

on

to

nn

es)

2008 2009

19


2008 2009

Imports 13.31 16.51

Exports 2.69 2.45

Total 16.00 18.69


Ports Sector: Mombasa Throughput (million tonnes), 2008 -2009

14.00

2008 2009

Th

rou

gh

pu

t (m

illi

on

to

nn

es)


• This increase in volumes has necessitated the

need to expand the transport networks particular

those linking Mombasa – Nairobi and Uganda

• This expansion is expected to relieve the

pressure on road infrastructure networks

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