@ eboomerang,

I will start responding to your first point, the blue.What do you mean simplicity? Expound.
Lack of proper analysis to show to show the benefits? I don't understand. What analysis? All i know, most of the gov'ts world over,they don't "explain" themselves about projects they are undertaking. They look at the "need" of essential structures. Profit is not a factor.
The port will bring immense benefits. Have you ever brought a shipment thru' mombasa? I do every month and its a nightmare.With S.Sudan up n running,with its huge oil reserves and its wars with Khartoum,a Kenya Port is the only feasible port for them. With petrol dollars, they will have huge imports/exports. Lamu port/kenya stands to benefit enormously.
The rail,well, have you tried getting stuff to Juba? I have, once every two months. The transport cost from here[Kenya] to Juba sometimes is same as the buying cost. No regular freighters. With the rail and the port, i won't have to bring stuff from Mombasa,on to Uganda before it lands in Juba. Just do the Maths, the savings.
Currently,Kenya-Ethiopia biz volume is negligible,the rail will help open up that region,more economic opportunities.
The pipeline,well they got the oil and they will shoulder the burden of building it. Last i checked,Kenyan cars run on fossil fuels.

On to the second color,green. Did i read documentation? Forum? You mean gov't give documentation or call a forum for guys like you and me? Come on,get serious. What do you mean business model? Give examples,2 will be enough. The people/corporations that matter to such a project are the ones the gov't will bother contacting. Not you and me. That's how it is with gov'ts world over. When the Mombasa-Uganda railway line was being built, was there such fora? Documentation?
And yeah, the figures for
Lamu are "BIG" coz they are.

Finally to the reds, break even? Cba? Swot analysis? When the gov't is building a bridge, where a bridge HAS to be build,profit is not the objective. Providing infrastructure to its citizens is the objective. Again, that Mombasa-Uganda railway line, when was it to break even? Of course the cost and benefits of whatever undertaking MUST be considered,the benefits have to be more than the costs. But for a gov't, that's so different as compared to a private sector project. Think of gov't schools,roads, bridges etc,when do they break-even? Does that mean the costs out-weigh the benefits? I also don't think the gov't will bother trying to make people "understand" its projects. Those who can and want to see the picture,will. They won't wait to be spoon-fed.

But then again: Definition of a boomerang "something, as a scheme or argument, that does injury to the originator.".

wonders happen during election season ....

Some citizenships must be revoked here *SMH* cheers @mkeiy

Either i'm not good at explaining things or someone is unable to reason out of the box and see the larger scheme of things.


An example is meant to jog your mind and cause you to think of an issue in a certain way. Look at the bigger picture and not only the simple fact that you as a person will benefit by shipping using the new port.

It is only common sense that a solution is indeed required to solve the congestion in the current port. However, I believe an investor would like to know much much more before making plans to kick start operations based on the planned new port.


Consider the following scenarios:

-Tanzania is also building a new port in Mbegani and expanding capacity in some of their existing ports.

-It's possible that Somalia (strategic location) could be peacful in the next 10 year period (dependent upon global forces). It is a possibility anyhow.

-Air cargo becomes cheapers and routes are increased. Signs are already showing.

-Here you have an investment(Lamu port) which would turn to be self sustaining in say 20 yrs.

-There is a potential investor -a company like (B & Sons) who own a large logitstics business. They are considering ordering more trailers in expected business growth due to the newly planned port in Kenya.

Based on those few scenarios, what has really happened?
The region(Kenya, Tanzania, "hopefully Somalia") has collectively created shipping port over capacity and not to mention that air freight spins the equation even further.

What will happen when there is over capacity?
the shippers are spoilt of choices and therefore weild more power and are able to push down the handling costs. Alternatively, this may play as a price war between the ports and air freight.

Consequently, in a mild situation, the 20 years needed to pay back the huge capital investments of the port are prolonged with a few more years. Meaning we have to figure out how to maintain the operations there.

B&Sons on the other hand due to missing expected sales (some to air freight and goods being received in other countries) end up loosing margins and could be easily driven to bankraptucy.

That was just a simplified example of how things could play for various stakeholders.

Let's not bury our heads in the sand we really need to think the big picture through, read this article. http://blogs.worldbank.o...come?cid=EXT_TWBN_D_EXT