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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
Kenya’s Transport Sector: What is The Current State of Affairs?
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
•Minor roads make up the bulk of Kenya’s
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
Kenya’s Transport Sector: What is The Current State of Affairs?
5
•Minor roads make up the bulk of Kenya’s
infrastructure network (42%), followed by
Special Purpose (18%), Secondary (17%) and
Primary roads (13%)
•Minor roads make up the bulk of Kenya’s
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)
• Kenya’s main railway networks include the
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
Kenya’s Transport Sector: What is The Current State of Affairs?
6
• Kenya’s main railway networks include the
Mombasa – Nairobi – Malaba and Gilgil –
Nhahururu networks. These constitute 69.2
percent of Kenya’s entire rail network system
• Kenya’s main railway networks include the
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
Note: All figures are rounded; base year is 2010. Source: Frost & Sullivan
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
Kenya’s Transport Sector: What is The Current State of Affairs?
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
Kenya’s Transport Sector: What is The Current State of Affairs?
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
Current Projects: What are the Current Developments in Kenya?
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
Note: All figures are rounded; base year is 2010. Source: Frost & Sullivan
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.
Current Projects in The Roads Sector
• Currently Kenya has 16 ongoing projects
valued at approximately $807.9m million.
• The majority of these projects are focused on
upgrading Class C and D roads
• Only two international trunk roads (A2 and
A104) are currently undergoing repairs and
maintenance.
Rail Sector: Networks Upgrading Projects, 2011
Project Name Expected Start DateProject Cost
($ 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
Current Projects: What are the Current Developments in Kenya?
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: What are the Current Developments in Kenya?
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
Note: All figures are rounded; base year is 2010. Source: Frost & Sullivan
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
Future Projects: What are the Opportunities?
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.
Future Projects in The Roads Sector
• Between 2011 and 2014 Kenya plans to
undertake 18 road construction and
maintenance projects valued at $313.1 million.
14
Various roads in Nairobi 51.8 23.0
Total 348.8 313.1
Note: All figures are rounded; base year is 2010. Source: Frost & Sullivan
Eldoret - Webuye
(A104), 13.4%
Webuye-Malaba
(A104) , 15.2%
Voi-Mwatate
(A23) , 8.9%Marsabit - Turbi
(A2), 51.3%
Lanet-Ndundori (C66)
, 3.9%
Various Projects, 7.3%
Project Value : Future Projects (Kenya)
Future Projects in The Roads Sector
• Major contracts will be for the maintenance and
rehabilitation of international trunk roads.
•The largest contract will be for the rehabilitation and
maintenance of the A2 highway between Marsabit and
Turbi
Future Projects in The Roads Sector
• Major contracts will be for the maintenance and
rehabilitation of international trunk roads.
•The largest contract will be for the rehabilitation and
maintenance of the A2 highway between Marsabit and
Turbi
Current Projects in The Roads Sector
• The Northern Corridor has been identified as a priority
area for private sector investment
• Kenya’s main road arteries that have been identified for
concession include:
� Mombasa (B) – Nairobi (B) – Mau Summit –
Kisimu – Uganda border
Current Projects in The Roads Sector
• The Northern Corridor has been identified as a priority
area for private sector investment
• Kenya’s main road arteries that have been identified for
concession include:
� Mombasa (B) – Nairobi (B) – Mau Summit –
Kisimu – Uganda border
RouteRehabilitation
($ 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)
Future Projects: What are the Opportunities?
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 $729.9
million
Mau Summit –
Eldoret (B) –
Uganda Border
104.2 145.8
Total 520.9 729.9
Note: All figures are rounded; base year is 2010. Source: Frost & Sullivan
Current Projects in The Roads Sector
• Kenya’s Ministry of Publics Works is currently undertaking
initiatives to promote private sector participation in the
construction of static weighbridges and axle load controls
� Currently there are a total of 13 weighbridges in
Kenya, five of which are static and the rest are mobile
Current Projects in The Roads Sector
• Kenya’s Ministry of Publics Works is currently undertaking
initiatives to promote private sector participation in the
construction of static weighbridges and axle load controls
� Currently there are a total of 13 weighbridges in
Kenya, five of which are static and the rest are mobile
Location of weighbridges in Kenya
Future Projects: What are the Opportunities?
16
� The static weighbridges are located at Mariakani, Gilgil, Athi
River, Webuye and Isebaniya. Mobile weighbridges are
situated in Eldoret, Kisimu, Malaba, Juja, Busia and Mtwapa,
Isinya and Mai-Mahiu
� Currently, there are plans in place to replace the mobile
weighbridges with static ones at Malaba, Namanga (currently
located at Isinya), Juja (on the Nairobi - Thika road) and on
the Mombasa – Malindi road
� The static weighbridges are located at Mariakani, Gilgil, Athi
River, Webuye and Isebaniya. Mobile weighbridges are
situated in Eldoret, Kisimu, Malaba, Juja, Busia and Mtwapa,
Isinya and Mai-Mahiu
� Currently, there are plans in place to replace the mobile
weighbridges with static ones at Malaba, Namanga (currently
located at Isinya), Juja (on the Nairobi - Thika road) and on
the Mombasa – Malindi road
Section RequirementsCost
($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
� Nakuru – Kisimu
Future Projects: What are the Opportunities?
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
� Nakuru – Kisimu
• 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
� Nakuru – Kisimu
• 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
between 2011 and 2014
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
between 2011 and 2014
2008 2009
Imports 13.31 16.51
Exports 2.69 2.45
Total 16.00 18.69
Note: All figures are rounded; base year is 2010. Source: Frost & Sullivan
Ports Sector: Mombasa Throughput (million tonnes), 2008 -2009
14.00
2008 2009
Th
rou
gh
pu
t (m
illi
on
to
nn
es)
Note: All figures are rounded; base year is 2010. Source: Frost & Sullivan
• 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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