October 3, 2024

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kenyan lamu port

Ethiopia Uses Kenyan Lamu Port for the First Time

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Ethiopia received its first shipment of fertilizer through Kenyan Lamu Port yesterday. The ship called MV Abbey II, owned by the Ethiopian Shipping Line, arrived with 60,000 tons of fertilizer. According to the Managing Director of Kenya Ports Authority (KPA), this is the largest amount of fertilizer that has ever been brought to Kenya on a single ship.

Ethiopia has been in talks with Kenya for years about using Lamu port. But the decision by the Ethiopian government to use Lamu for fertilizer imports came amid rising tensions between Yemeni Houthi fighters and Western/American forces in the Red Sea.

Lamu port has been gradually expanding. In 2022, Lamu port handled 6,539 metric tons of cargo whereas, last year, it handled 37,576 metric tons. Container traffic on Lamu port also increased. In 2022, it was 382 twenty-foot equivalent units (TEUs) and in 2023 it was 1,779 TEUs which is an increase of 1400 TEUs.

In 2016, Ethiopia, Kenya, and South Sudan agreed to build the LAPSSET (Lamu Port-South Sudan-Ethiopia-Transport) corridor. The LAPSSET Corridor Program is a regional flagship project intended to provide transport and logistics infrastructure aimed at creating seamless connectivity between the Eastern African Countries of Kenya, Ethiopia, and South Sudan. The project connects a population of 160 Million people in the three countries. The project would enable Ethiopia and South Sudan to use Kenyan Lamu port.

Kenya has been encouraging Ethiopia to use the Lamu port by offering reduced port fees. Kenya offered to waive fees, and give more time for free storage at Lamu in order to make overall shipping costs cheaper for Ethiopian traders.

Last year Ethiopian PM, in a speech, said that landlocked Ethiopia had natural rights to gain access to sea. The speech was rejected by Eritrea, Somalia and Djibouti. Ethiopia has been dependent on Djibouti’s ports for decades. It has built rail and road links for that. This week, China handed over the management of the Ethiopia Djibouti railway to Ethiopia and Djibouti. Read more..

This year in January, Ethiopia signed a controversial MoU with Somaliland to establish a naval base in Somaliland and to use Berbera port in Somaliland. The MoU was opposed by Somalia as recognition of Somaliland is also part of the deal reportedly.

The Ethiopia-Somaliland MoU could not see any rapid progress towards implementation. But in some recent statements, Ethiopian leaders made it clear that Ethiopia wants to diversify the use of ports. It does not want to be dependent on Djibouti ports solely.