Further backlogs of boxes at Mombasa

The backlog is a result of the new port automation system that came into effect on July 1, leading to a number of operational delays and a lowering of productivity. Part of the problem is believed to lie in labour unhappiness over the new system, resulting in a temporary reinstatement of the old manual system. In addition, a strike by railway workers has further exacerbated the problem, with no containers leaving the port by rail for more than a week.

According to local reports, Maersk Kenya Limited has closed its Mombasa Logistic Container Centre and has laid off 123 employees, leaving its empty container handling to be taken on by three local companies. The lease for the property on which Maersk Kenya Limited operated is owned by the Kenya Ports Authority and expires on July 31, 2008.