THE LOGISTICS TASK TEAM

In a meeting held at Entebbe, Uganda on 8th -10th March 2022 to outline the logistics - related regional trade problems and design /provide solutions: 

  • To address high cost of transport and logistics in the region
  • What can be done differently to improve regional trade
  • How the EA Region can address the issue of backhaul logistics to reduce the cost of transport and logistics
  • To ensure competitiveness and What private sector models would solve the problem

In this, KTA was placed in Group 4 presentation focusing on Elevated costs at Border Points/Crossings.

The representatives in group 4 included; Rwanda Revenue Authority(RRA), Burundi Revenue Authority, Burundi International Transporters Association, Kenya Transporters Association, Uganda Private Sector and Private Consultant on Logistics

The Costs at Border Crossings were, based on their nature, largely categorised as Statutory and Incidental Costs.

Statutory Costs

Transporters are charged CESS fees of USD 60 to enter Mombasa with export cargo, Road tolls and road user fees, Trucks parking fees and the mandatory COVID–19 testing fee for Drivers        

Need to identify the parties involved i.e. County Governments, Highway Authorities, and Cross Border Regulatory etc., lobbying and engaging them for possible review/dropping these charges as well. Harmonization of the charges a cross the EAC Partner States and need to document and gazette charges for predictability

Incidental Costs

Incidental costs are mostly unplanned for or occur on as is basis, they included: Multiple Government Agencies at the Border crossing points, Punitive fines as a result of cargo shift by Weighbridge Operators, Delay in obtaining authority and route map for conveyance of over gauge cargo – heights declare are sometimes misleading and Constant vehicle breakdowns as a result of poor maintenance. Others were Frequent breakdown of Scanners, Poor Road Conditions, Longer system down time, Delay in cargo verification, Lack of RECTS ( seals), High tariff on container demurrages and Truck detention charges

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EFFECTS OF FUEL PRICE INCREASE - 14TH MARCH 2022

TRANSPORT RATES ADVISORY

The Government of Kenya through the Energy & Petroleum Regulatory Authority (EPRA) has today increased the pump prices for petrol and diesel by kshs 5/= per litre.

This is in response to the recent increase in fuel landed costs and the depreciation of the Kenya shilling.

Kenya Transporters Association (KTA) commends the Government of Kenya for its efforts to cushion the full impact of the increase through the Petroleum Development Levy (PDL).

However, the kshs 5/= per litre fuel pump price increase in diesel and petrol will affect transportation costs adversely. Fuel costs contribute upto 35% of total direct transport costs and indirectly affects other costs e.g. tyres and spare parts, since they are all imported.

Transport rates have remained constant from the period when the diesel pump prices (Mombasa) were between kshs 75-80 per litre compared to the current Ksh 108-110 per litre. Transporters margins can no longer sustain any increase in costs and regrettably have to pass on this increase to the cargo owners for the road transport sector to survive.

KTA wishes to advise transporters country wide to increase their transport rates by a minimum of 5% to sustain their businesses under the current circumstances and to circumvent a total collapse of their businesses.

On Behalf of the Board

Newton Wang’oo
Chairman
Kenya Transporters Association

COVID-19 TESTING FEES, BORDER CROSSING IMPASSE

STOPPING TRUCKS CROSSING BORDERS INTO UGANDA BECAUSE OF COVID-19 TESTING FEES BY UGANDA HEALTH AUTHORITIES DOES NOT MAKE ECONOMIC SENSE TO TRUCK OWNERS, THE FEES SHOULD BE BORNE BY UGANDA IMPORTERS

Dear Truck owners, Investors and Captains in Road Transport industry

God's Grace be upon you and your loved one's

As you are aware, the Uganda Health Authorities have instructed that all drivers entering Uganda MUST test for Covid-19 and pay USD 30.Negative results are valid for 7 days only.

Drivers have gone on strike on behalf of transporters, forwaders, and importers opposing this charge of USD 30 for the tests.

Who is the looser and who should pay for this fee?

Clearly the looser is the truck owners and investors in road transport

The fee should be paid by Uganda importers for expenses imposed by Uganda Government. Let Uganda importers pay if they want cargo delivered to them.

The fee should not come from driver mileage or the transporter

It is not clear how drivers will gain if the fee is waived. The drivers can only benefit if the testing itself is abolished since it is intrusive.This is a decision that is entirely dependent on a another country's government.

DRIVERS ARE NOT RESPONSIBLE FOR ANY COVID-19 TESTING FEES AND ANY ASSOCIATED COSTS

Dear Esteemed Members,

We draw your attention to claims by some of our drivers that some truck owners recover the covid-19 testing fees/expenses from the drivers mileage and/or salaries.

The drivers bear no responsibility at all for this costs and it is UNFAIR to make such deductions from their earnings.

Drivers are a very important and integral part of our business and their interests should be safe guarded by truck owners. They work under very difficult circumstances and we should not make it worse by deducting such expenses that have no relation to their performance or discipline.

The Covid-19 testing costs and related expenses are not a drivers expense irrespective of which country they have been incurred.

POLICE USING SAFETY JACKETS TO COVER OR HIDE NAME TAGS AND SERVICE NUMBERS

Having received various complaints from our drivers regarding harassment by Police officers who refuse to identify themselves by covering their name and service tag numbers through their safety jackets, we went ahead and sensitized the general public and more so our members on the Standing orders.

The National Police Service standing orders Chapter 43 on Identification of Police Officers clearly states:

1 (2) A Police Officer in uniform shall affix a nametag and an identifiable Service number in a clearly visible part of the uniform at all times.

(3) A Police Officer in uniform shall wear a nametag, badge or identifiable service number badge on the left breast of his or her outermost garment.

When police officers hide their identities from the public, opportunistic rogue/corrupt police officers will have an opportunity to harrass the same people they are supposed to serve.

It is also impossible for the public to report any misconduct of unidentifiable officers.

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