LAPSSET corridor program for a seamless connected Africa.

Version 2

    Demand for port services in East Africa is on the rise and is expected to outstrip capacity in Kenya by 2022. LAPSSET is one of the flagship projects identified by Kenyan government in Vision 2030 which is the national long-term development policy that aims to transform Kenya into a newly industrializing, middle-income country providing a high quality of life with a sustainable mobility future to all its citizens by 2030 in a clean and secure environment. Cumulatively, Lapsset projects will cost Sh2.5 trillion.

     

    What is the LAPSSET corridor program?

    The LAPSSET Corridor Program is Eastern Africa’s largest and most ambitious infrastructure project that is bringing together Kenya, Ethiopia and South Sudan. But also linking to the rest of the East Africa member states (Uganda and Tanzania). LAPSSET stands for: Lamu Port, South Sudan, and Ethiopia Transport Corridor. Lamu County is the host of Lapsset projects. Projects based in Lamu County include a resort city, a railway network, a modern highway, crude and refined oil pipelines, and an international airport.

    The Vision comprises of three key pillars (Economic; Social; and Political). The Economic Pillar aims to achieve an average economic growth rate of 10% per annum and sustaining the same until 2030.

     

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    This mega project consists of seven key infrastructure projects starting with a new 32 Berth port at Lamu (Kenya); Interregional Highways from Lamu to Isiolo, Isiolo to Juba (South Sudan), Isiolo to Addis Ababa (Ethiopia), and Lamu to Garsen (Kenya), Crude Oil Pipeline from Lamu to Isiolo, Isiolo to Juba; Product Oil Pipeline from Lamu to Isiolo, Isiolo to Addis Ababa; Interregional Standard Gauge Railway lines from Lamu to Isiolo, Isiolo to Juba, Isiolo to Addis Ababa, and Nairobi to Isiolo; 3 International Airports: one each at Lamu, Isiolo, and Lake Turkana; 3 Resort Cities: one each at Lamu, Isiolo and Lake Turkana; and The multipurpose High Grand Falls Dam along the Tana River.

     

    In addition, a special economic zone will be established in Lamu with land already set aside for the venture. To facilitate transportation of the cargo from Lamu port, the government has prioritised construction of the Lamu-Witu-Garsen road. Work on the 505 kilometre Isiolo to Moyale section is complete, reducing travel time between Moyale and Nairobi from about three days to 10 hours.

     

    What is the current progress?

    The venture, which is now 50% complete, includes a 32 berth port; transportation hubs for railways and highways; international airports in Lamu, Isiolo and Lodwar; an oil pipeline from South Sudan connecting Uganda and Ethiopia to Lamu port; an oil refinery, and three resort cities in Isiolo, Lamu and Turkana.

     

    Building of the 530 kilometer Lamu-Isiolo road is set to begin in August, 2018, after the government of Kenya secured over USD 617 million funding, a move that will open up the formally marginalized northern frontier counties and boost trade between Kenya and neighboring Ethiopia and South Sudan. The Development Bank of South Africa is funding the four-year project. Work on the Lamu-Isiolo section was slated to start in June but was delayed by late release of funds.

     

    Lamu Road Construction will operate and maintain the road for an initial 25 years. The firm is expected to ensure high performance standards to enhance transit transport and reduce vehicle operating costs. The project is meant to improve transport of goods and people between Kenya, South Sudan, Ethiopia and Uganda.

     

    Construction of the initial three berths at Lamu port, out of 32, is going on at Kililana with the first expected to be ready by December. The second and third berths are set to be completed by 2019 and 2020 respectively.

     

    Program expectations.

    The government of Kenya has embarked on activities to make Lamu port one of the most efficient in the world. According to Mr Muthaura, the establishment of Lamu Port City will provide Lapsset with strong structural support to enhance efficiency and growth to compete with other ports globally.

     

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    “Planning for the Lamu Port City is almost ready. We expect a city of about one million people. “We will be doing the same in Garissa, Isiolo, Lodwar, Marsabit, Moyale and the borders to South Sudan and Ethiopia. All these projects will be done through the government and private partnerships,” says Mr Muthaura.

    Completion of Lamu port will lead to creation of thousands of both direct and indirect jobs in fields such as logistics, transport, trade, commerce, agriculture, fishing, and manufacturing.

     

     

     

     

    In addition, a special economic zone will be established in Lamu with land already set aside for the venture. To facilitate transportation of the cargo from Lamu port, the government has prioritised construction of the Lamu-Witu-Garsen road. Work on the 505 kilometre Isiolo to Moyale section is complete, reducing travel time between Moyale and Nairobi from about three days to 10 hours.

     

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    The port is also expected to attract larger cargo ships. If run efficiently it will provide benefits by passing on savings derived from lower costs due to faster ship turnaround time and at the same time reduce the cost of doing business. Lapsset chief executive Silvester Kasuku said the infrastructure links to neighboring countries will foster trade and lead to regional economic development.

     

    “We are confident that once the port is operational it will attract cargo that passes through the ports of Sudan, Djibouti and Mombasa,” said Mr Kasuku.

    Three years after building of Lamu port started, the project has attracted both local and international investors who are slowly turning the once humble town into one of East Africa’s largest port cities and transportation hubs.

     

     

    The three facilities are said to cost over USD 478 million. It is expected that the first ship to dock at Lamu by December, 2018 once the berth is ready. Lamu has already seen an increase in population, especially due to migration by people from other parts of Kenya in quest for a share of trade, employment and business opportunities presented by infrastructure development in the county. The venture will pave way for exploitation of natural resources in this region.

     

    What is your take on such a project in relation to Vision 2030?

     

    Sources.

    http://www.lapsset.go.ke/

    http://www.xinhuanet.com/english/2018-07/06/c_137304374.htm

    http://www.lapsset.go.ke/investment/#1441873920660-a173daba-0456462a-966b

    https://www.businessdailyafrica.com/analysis/Sh60bn-Lamu-Isiolo-highway-a-landmark/539548-3840824-14epi4c/index.html

    https://www.businessdailyafrica.com/corporate/shipping/Sh62bn-loan-kick-starts-Lamu-Isiolo-road/4003122-4656478-sqpfcj/index.html

    https://observer.ug/business/57971-is-world-bank-losing-faith-in-125m-transport-project.html

     

    By Joseph Semuju

    Community Manager - AMO

    African Mobilities Observatory - AMO, MICHELIN.

     

    Jerry Rawlings Mbabali laurence Ullmann marie-pascale baye David Aurelie KOUASSI Kouamé Sylvestre KOUASSI Siaka Ouattara Krapa Alwenyi  Catherine Cassidy