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The National government will spend Sh27 billion to build phase two of the second container terminal at the port of Mombasa beginning in June next year.
Transport Principal Secretary Irungu Nyakera said the government had received funding from the Japanese government through the Japan International Cooperation Agency (JICA).
President Uhuru Kenyatta is expected to commission phase one of the second container terminal on Friday.
The capacity will increase to 1.55 million Twenty Foot Equivalent Units (TEUs) from 1,080,000.
The project cost Sh30 billion and was handed over to the Kenya Ports Authority (KPA) in February this year.
TIN news:   The KPA in April this year started using the new terminal, which has an estimated capacity of 550,000 TEUs annually.
Mr Nyakera said Parliament approved the guarantee on phase two funding in June this year, with tendering expected to take place in January next year.
“We expect the construction of the second container terminal phase two to commence in June 2017,” he said.
The project, he added, will take between two and three years to complete and it will have a capacity of 450,000 TEUs.
During an interview with the Nation at the port, the PS noted that when all the phases are completed the port will have a capacity of 2.5 million TEUs.
Mr Nyakera said the undertaking will help decongest the port and enable the KPA to offer quality services to its clients.
Neighbouring countries such as Uganda, Rwanda, Burundi, South Sudan, the Democratic Republic of Congo and northern Tanzania use the port.
He said: “The government is implementing infrastructure projects at the port of Mombasa to improve cargo handling services. The modernization of port services will help offer better services to the hinterland including countries from the East African region.”
With 4,135 total ground slots, the new terminal provides an additional maximum capacity of 796,000 TEUs, comprising two berths for Panamax and Post-Panamax container vessels of 20,000 tonnes and 60,000 tonnes respectively.
Container traffic is projected to increase to 2.5 million TEUs by 2025 and 3.3 million TEUs by 2030, assuming a sustained growth rate of 7.9 per cent.
The new facility will play a significant role in meeting the KPA’s targets and projections and supporting the additional cargo evacuation requirements arising from the standard gauge railway operation upon completion next year.
The government is also implementing Sh30 billion road projects at the cost of Sh30 billion, including the key 16km Miritini-Kipevu road, which when completed will ease transportation of cargo from the Mombasa port.
The road building is part of phase one of the Dongo Kundu Bypass project, which will cost Sh11 billion.
The road, which will link the port to the Mombasa-Nairobi highway, will be completed in July next year.

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