Friday, 3 May 2013

EAC boss launches regional shippers council


By Charles Kazooba

The East African Community (EAC) secretary general, Dr. Richard Sezibera, launched Shippers Council of Eastern Africa seeking to cover the challenges faced by the transport and logistics sector in East Africa, EAC has said in a statement.

According to the release, the Council was launched on Tuesday April 30 in Nairobi, Kenya.

Addressing members of the Eastern Africa Shippers Community formerly known as Kenya Shippers Council, Sezibera commended the Council for rising up to the occasion and respond to the calls of East Africans to finally form a localized organization to generalized regional umbrella body.

He noted that it was critical for the EAC region to invest heavily in rehabilitating and expanding railway systems for goods it is cheaper, cost-effective, competitive and efficient than road transport.

The official continued that such will shift a significant amount of cargo to railways and guarantee longer life spans for newly constructed and rehabilitated roads as well as also improve the environment by reducing carbon emission.

“Currently, less than 5% of cargo in East Africa is moved by rail. No economy has grown without rail transport,” Sezibera said, adding cargo in the region is going to triple in the next 15 years.

The change to Shippers Council for Eastern Africa (SCEA) is necessitated by the need to expand the scope and mandate of the Kenya Shippers Council (KSC) to cover the challenges facing the transport and logistics in the Eastern Africa region due to the conclusion by various studies conducted in the region which have showed that 60 per cent of the challenges experienced by shippers in the region emanate from the borders of Kenya.

The rebranding is also precipitated by the fact that 70 per cent of its members have operations within the region.

Moreover, there arose a need to strategically align the Council to engage the policy formulators and industry regulators at the regional level as there is a need for harmonization of smoother flow of goods and trade within the region, an important step as we transit to a unitary customs union.

SCEA will be targeting membership from the region in the form of individual corporate and that of national shippers council in the Eastern African countries

Some of the achievements of the KSC that the new brand will ride on include successful lobbying for the formation of KENTRADE, the entity tasked with implementing the National Single Window System and the subsequent implementation of the system, engaging government agencies and service providers in the past on removal of vessel delay surcharges and decongestion of the sea port, removal of VAT on marine services and numerous police road blocks on the Northern Corridor amongst others, thereby helping to reduce delays and resultant costs in movement of goods.

The council was also instrumental in the establishment of regulations for maritime service providers through the Merchant Shipping Act of 2009

The Shippers Council of Eastern Africa’s mandate will be to advocate for an improved policy and trade environment, educate shippers on their rights and obligations in import and export trade, interpret various transport and logistics related laws, regulations and procedures, and provide a platform for sharing experiences through networking forums, and training and awareness workshops.

kazcharlie@yahoo.com

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