Tuesday, October 12, 2010

Ferry revenue in doubt with plans to construct bypass


Kenya Ferry Services (KFS) is exploring ways of coming up with new routes by next year in a bid to cushion its revenue streams and ease traffic jams in Mombasa.The move is expected to enhance ferry services annual revenue base currently at 30 per cent of the required Sh1 billion.

According to KFS managing director, Musa Hassan, their current revenue collections will decline once the planned Dongo Kundu bypass comes into operation, hence the need to diversify its services.

"Yes, it (Dongo Kundu bypass) will reduce (revenue collections) to some extent, although it (Likoni channel) is still faster and shorter distance from South Coast areas to the CBD," he said.

This is true since vehicles could opt to use the 18km road expected to link Changamwe and the South Coast instead of the Likoni channel.

The government has already invited bids for the construction of the much-awaited bypass that had been delayed by differences among government agencies over the route it would take.

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Businesses in the South Coast have suffered huge losses due to the frequent breakdown of the old ferries.

Once completed, the road would also serve traders from Northern Tanzania faced with transport problems due to dilapidated railway link between Mombasa and Taveta, and delays at the ferry.

Mr Hassan, however, said the routs they plan to open between the Island and other mainlands will reduce the cost of transport and the traffic jams along Kibarani and Nyali Bridge.

Some of the routes earmarked in the KFS strategic plan include; between Fort Jesus to Mkomani, Likoni to Magongo/Changamwe and Likoni to Mtwapa.

Businesspeople have been complaining that the traffic jams is increasing the cost of doing business in the coastal city of Mombasa.

This in turn is painting the town as unfriendly to business, hurting its quest to attract new investors.

"Our studies have shown that we incur huge losses in man hours, fuel and delays in the delivery of goods and services to our customers as a result of the traffic jams," said Mr Ketan Shah, the chairman of Mombasa Business Association (MBA).

Source: Breaking News, Kenya

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