Kenya’s proposed second port at Lamu

July 27th, 2011 | by addis portal |

NAIROBI, July 27 (Reuters) – Kenya plans to start building a second port this year and it expects the first ship to call there before the end of 2012, its president said.

Here are some key facts about the project:

* The port is part of a wider project to create a second transport corridor in the east African nation, linking Lamu at the north coast with Ethiopia and newly independent South Sudan.

* It also involves the construction of a 1,260 km crude oil pipeline from South Sudan and a 980 km product pipeline to Ethiopia through the Kenyan town of Moyale.

* The project aims to promote social and economic development along the corridor and boost cross-border trade.

* Its ultimate goal is to have a 20-berth port at Lamu, 1,710 km of standard gauge railway and a 120,000 barrels per day refinery at Lamu.

* The port will be built at Manda Bay, which juts out towards the islands of Lamu, Manda and Pate, with their pristine mangrove forests and protected heritage sites.

* An 880 km highway will be built as well as an international airport at Lamu.

* The project also envisages the creation of three resort cities in Lamu, Isiolo and Lake Turkana.

* It will also create a metropolis at Lamu with a population of half a million in 2030.

* Processing zones for agricultural products will be established in Lamu in the area around the proposed port.

* Power, water, communications and associated infrastructure will have to be set up along the corridor.

* The entire project will require a total investment of $22 billion by 2020 to be funded through by the public and private sector partnerships with the government.

* The Chinese and German governments have in the past explained interest in financing the project or elements of it.

* Kenyan officials say private investors are keen to get on board.

* The feasibility study for the project was carried out over a year by Japan port consultants.

* It is estimated that by 2030, 5.5 million tonnes of cargo per year will shift from Port Sudan to Lamu, 9.7 million tonnes from Djibouti and another 8.6 million tonnes will shift from Mombasa.

* Some of that cargo will be grain imports from Australia into Ethiopia as well as livestock exports to Saudi Arabia from Ethiopia and northern Kenya.

* The new corridor is expected to transform Kenya, adding 2-3 percentage points to the projected annual economic growth rates. (Reporting by Duncan Miriri; Editing by Barry Malone)

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