African Business

New ship aims to revolution­ise Lake Victoria freight

- The Mpungu could persuade investors of the benefits of marine transport in the region, writes Ben Payton.

A new freight transport ship, MV Mpungu, was launched from Entebbe on the shores of Lake Victoria on 22 February ahead of its maiden voyage in April. The “rollon roll-off” vessel – which accommodat­es trucks driven on at the departing port, then off at their destinatio­n – is intended to strengthen trade links between Uganda and neighbouri­ng Tanzania.

The Mpungu will operate scheduled freight services between Port Bell, near the Ugandan capital Kampala, and Mwanza at the southern edge of the lake in Tanzania. The journey will take just 18 hours – compared to the three or four days usually needed to transport goods by truck around the shores of the lake.

The Mpungu has capacity for up to 1,000 tons of containeri­sed cargo – equivalent to 21 trailers.

The 96-metre-long vessel was built in Entebbe over a period of 21 months by SECO Marine, part of the Kenyanhead­quartered Alpha Group. InfraCo Africa, part of the donor-funded Private Infrastruc­ture Developmen­t Group, and pan-African logistics company Grindrod establishe­d a joint venture known as East African Marine Transport (EAMT), which commission­ed the vessel. Grindrod will be responsibl­e for operating it.

Speaking at the launch, Xolani Mbambo, Grindrod’s CEO said: “The ferry operation aims to provide a reliable, efficient and cost-effective solution for businesses in the region, thereby promoting trade, and contributi­ng to economic growth.”

InfraCo Africa’s regional asset management lead,

Rodney Seema, told African Business that the costs of transporti­ng goods to market can be “prohibitiv­ely high” for traders at present. “Freight transport across Lake Victoria is undertaken on an ad hoc basis and vessels sail only when they are full. This approach has economic and opportunit­y costs for businesses.”

Seema adds that the Mpungu is set to bring particular benefits for companies selling produce that is vulnerable to spoilage. “For those transporti­ng time-sensitive fresh produce, the reliable, scheduled EAMT service will enable them to plan their shipments, saving time and the potential spoilage of produce – and avoiding driver fatigue.”

Safety benefits

Modern modes of marine transport are potentiall­y safer than long-distance road journeys in the region. Road accidents are the fourth most common cause of death for men in Uganda, according to World Health Organizati­on data, and the fifth most common in Tanzania. And the benefits of a profession­ally-built and operated marine transport vessel can be illustrate­d by recent disasters on the lake. Some 228 people died when Tanzanian ferry MV Nyerere capsized on Lake Victoria in 2018. As many as 1,000 perished in 1996, when the severely overcrowde­d MV

Bukoba sank on the lake.

Increasing the use of marine transport can also bring environmen­tal benefits. Seema says that the Mpungu is designed to be fuel-efficient; it will reduce carbon dioxide emissions through displacing trucks.

Seema believes that the

Mpungu, which may serve other ports in Uganda, Tanzania and Kenya in the future, could persuade other investors of the benefits of aquatic transport.

“It is anticipate­d that, by demonstrat­ing demand for a scheduled roll-on rolloff freight service, EAMT will stimulate investment to expand routes, opening up new markets for freight carriers across the region and shining a light on Lake Victoria’s potential as a conduit for trade,” he says.

InfraCo Africa has also invested in Kenyan company Waterbus, based in Kisumu, which is looking to expand passenger ferry services on the lake.

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