Name and Location
Lamu port project, Kenya.

Client
Kenya Ports Authority (KPA) under the Kenya Ministry of Transport.

Project Description
The Lamu port project is one of the flagship projects identified in Kenya’s Vision 2030.

The project entails the development of the first phase of the Lamu port and the Southern Sudan–Ethiopia transport corridor (LAPSSET) to be built in Manda Bay, along the coast of Lamu. The corridor will link the envisaged port with Ethiopia and South Sudan, through the eastern and northern parts of Kenya.

The project includes dredging or reclamation works; the construction of the first three berths and associated infrastructure to accommodate container ships, with capacities of 100 000 deadweight tons (dwt); general cargo ships of 30 000 dwt; bulk cargo ships of 200 000 dwt and a capacity of two-million barrels of oil.

The Lamu port, where 21 berths will be built and whose total throughput will increase from 13.5-million tons in 2020 to 23.8-million tons in 2030, will be a critical entry and gateway point for exports and imports to and from Kenya, Sudan and Ethiopia.

The project will also include the construction of about 2 240 km of oil pipeline. The pipeline is of particular importance for South Sudan, which desperately needs an alternative route to transport crude oil.

Another critical project is a medium-size refinery, with the capacity to process 120 000 bbl/d. The facility will largely refine crude oil from South Sudan and other parts of the world to serve the larger eastern and African markets.

Other projects include 1 710 km of standard gauge railway line, stretching from Lamu to the Kenyan border adjacent to Ethiopia; an 880 km highway; power plants, with the capacity to generate 1 100 MW of electricity; and two airports.

A feasibility study has forecast that the project will directly contribute between 2% and 3% to the yearly gross domestic product of Kenya, South Sudan and Ethiopia.

Value
The project is part of an estimated $25.5-billion development plan.

Duration
Construction was expected to begin in March 2011.

The project will be implemented in phases over 18 years.

Latest Developments
A consortium of companies led by China Communications Construction Company has won a KSh41-billion contract to build the first three berths at Lamu port.

It will take three years to complete the first three berths and during this period, the Kenyan government will formulate a business plan for how the private sector can be involved, with private–public partnerships and joint ventures touted as possible mechanisms.

The Kenyan government is seeking investment from foreign governments and private investors to help fund the transport corridor.

The Development Bank of Southern Africa has expressed interest in contributing as much as $1.5-billion towards the LAPSSET project.

Key Contracts and Suppliers
Japan Port Consultants (feasibility study) and China Communications Construction Company (berths).

On Budget and on Time?
The project is at the tendering stage.

Contact Details for Project Information
Kenya Ministry of Transport, tel +254 20 272 9200, fax +254 20 272 6362
or email info@transport.go.ke.
KPA – the secretary, corporation tender committee, tel +254 41 211 3600, fax +254 41 2226721 or email ctcsecretary@kpa.co.ke.
Japan Port Consultants, tel +81 3 5434 8163 or fax +81 3 5434 5375.
China Communications Construction Company, tel +86 10 6428 7366 or fax +86 10 6427 0512.