Kenya's Port of Mombasa boosts global supply chain development

The Port of Mombasa, Kenya's main seaport, is expected to boost economic growth in the region and enhance the global supply chain, according to industry sources.

Located on Kenya's eastern coast, it is one of Africa's busiest and most important ports, serving not only as Kenya's economic artery but also as a critical logistics hub for the region.

The Kipevu Oil Terminal (KOT) is a key component of Mombasa Port's transformation under China-Kenya cooperation. It is capable of processing crude oil, heavy fuel oil, gasoline, diesel, aviation kerosene, and liquefied petroleum gas, ensuring the efficient operation of Mombasa Port's oil and gas supply chain. Additionally, it contributes to Kenya's economic development and strengthens trade and logistics across East Africa.

"We introduced several innovations in the construction of the KOT (Kipevu Oil Terminal). Firstly, a groundbreaking technique involving onshore prefabrication and single-tow installation was applied for laying seabed pipelines -- a first-time application not only in East Africa but also globally. Secondly, the project adopted high-precision ultrasonic flow meters with large flow capacities to enhance measurement accuracy. Lastly, a PLC automated monitoring system was implemented to improve automation and precision," Said Mao Honghui, the Chinese project leader for the Kipevu Oil Terminal (KOT).

The Port of Mombasa also fosters regional integration. By linking the Mombasa-Nairobi Railway with the Nairobi-Malaba Railway, the port bridges the gap between maritime and inland transportation, strengthening Kenya's economic ties with neighboring landlocked countries such as Uganda, Rwanda, Burundi and South Sudan.

Chinese developers have also helped establish a commuter railway linking the Mombasa station of the Mombasa-Nairobi Railway to Mombasa's urban and suburban areas, facilitating the transportation of people and goods and promoting inclusive growth in the region.

"We get so many benefits that we can't even talk more about it. So talk of business, talk of saving time, talk of saving money, energy, all these things that the community of Miritini will benefit out of this commuter train around here," said Ramadan Fokwe, the head of Miritini Village in Mombasa.

The upgrading of Mombasa Port highlights the importance of multilateral cooperation in driving economic growth and improving people's well-being.

"There is no country that works alone; it has also to work with other countries, also to foster trade. And also, the economy is also what China is doing, also in terms of supporting and zero-rating some of the taxes to give more markets to the African countries," said William Kipkemboi Ruto, managing director of the Kenya Ports Authority.

Kenya's Port of Mombasa boosts global supply chain development

As Western consumers start their holiday shopping, Yiwu, a small commodity hub in east China's Zhejiang Province, sees a surge in exports, with local authorities speeding up export tax refunds to support businesses.

For example, 3D-printed toys sold at the Yiwu International Trade Market, also known as the "world's supermarket," have become especially popular in the United States.

"Normally, we order half a container of goods each month. But during this peak shopping period, we've already stocked up a full container. Now, I'm exploring new products," said Chen Junyu, a purchaser.

"These toys are in high demand right now. Our factory typically produces around 30,000 sets a day, with 70 percent exported to Europe and the U.S. The demand is so strong that some of our clients take products directly from the production line for immediate shipment," said Lyv Xulian, a 3D-printed toy supplier.

As the year-end shopping season begins in Western countries, cross-border e-commerce sellers targeting these markets are entering their busiest period.

For instance, a sporting goods company began its design, production, and stockpiling process two months in advance of the shopping season.

They adjusted stock levels in overseas warehouses based on market trends, increasing their inventory by 20 to 30 percent.

To help Yiwu businesses capitalize on the shopping season boom, local authorities have offered "exclusive tax services," providing round-the-clock support and streamlining the export tax refund process.

"During major sales events, we face financial pressures in logistics and warehousing. Fast export tax refunds ease our cash flow and effectively improve our capital turnover," said Wu Meng, head of the company's finance department.

China's small commodity hub sees exports surge as western holiday shopping season nears