TITLE:

A PROJECT CONCEPT PAPER ON THE KENYA PORTS AUTHORITY REDUCTION OF HIGH COSTS OF CARGO HANDLING EQUIPMENT MAINTENANCE.

PRESENTED TO:
THE HEAD OF DEPARTMENT, RESOURCES MANAGEMENT, RESEARCH AND CONSULTANCY, KENYA INSTITUTE OF ADMINISTRATION LOWER KABETE IN PARTIAL FULFILLMENT FOR THE AWARD OF CERTIFICATE OF ACHIEVEMENT IN PROJECT PLANNING AND MANAGEMENT

PRESENTED BY:
NOAH OLELA ABONGO - KENYA PORTS AUTHORITY PROJECT PLANNING & MANAGEMENT MAY 2011 CLASS

DATE PRESENTED:
27TH MAY, 2011

1.0

INTRODUCTION Kenya Ports Authority (KPA) is statutory body under the Ministry of Transport. It was established by an Act of Parliament on 20th January, 1978 with a mandate to maintain, operate, improve and regulate all scheduled Seaports along Kenyas coastline. In 1986, the Authoritys mandate was expanded to providing port services after it merged with the former autonomous Kenya Cargo Handling Services Company. According to the Kenya Ports Authority 2009/10 2011/12 Business Plan Projections, the volume of cargo handled at the Port of Mombasa is expected to rise to 19.7 million tons by the year 2012. It is therefore evident that the port will be under considerable pressure, given that some areas of port operations such as Container Terminal are fully saturated. To accommodate the increased volume of traffic, substantial investments have been made over the last three years, towards modernization and upgrading of the existing facilities to cater for the growing shipping requirements and to enhance port capacity. To improve efficiency in operations, the Authority will continue implementing the Equipment Replacement Programme with the aim of reducing costs of maintenance and improving equipment reliability Kenya Ports Authority comprises of the following Divisions: a) Corporate Services b) Finance c) Human Resource and Administration d) Operations e) Habour Master f) Corporation Secretary and Legal Services and g) Technical Services

The Kenya Ports Authority Technical Services Division is responsible for all aspects of engineering comprising civil, mechanical, electrical and marine services

The strategic action plans and activities for the Division are presented in the Table1 below

NO

OBJECTIVE

ACTIVITIES

INDICATORS

1.

Improve power supply efficiency

2.

Reduce costs of maintenance and improve equipment reliability

3.

Improve and sustain high quality port infrastructure

Upgrading of Port supply and improvement of lighting within the Port and ICDs Adherence to maintenance policy and equipment replacement programme Refurbishment of berths, yards, roads, buildings and permanent way. Conversion of berths 11 14 into container berths Development of a CFS at Mariakani. Development of second Kipevu Bridge, lorry parking, Kipevu road and MCT Access road Dredging of the habour channel

No power outage

BUDGET 2001/10 Kshs M 160.0

PROJECTION 2010/11 2011/12 Kshs M Kshs M 120.0 80.0

TOTAL Kshs M 360.0

Increased equipment availability and reliability.

310.0

250.0

155.0

815.0

Increased yard capacity and improved traffic flow

364.0

300.0

200.0

864.0

Increased container handling capacity CFS developed and increased container throughput Improved traffic flow

200.0

350.0

100.0

650.0

50.0

150.0

200.0

100.0

250.0

100.0

450.0

Greater access for vessels calling at the Port

180.0

200.0

700.0

1,180.0

Table1

2.0

Focal Problem to be pursued by the Project Kenya Ports Authority has for the last few years been experiencing pressure on its Cargo handling Equipment due to the increase of the Maritime trade and the opening up of the Southern Sudan to Investors. Marked by the aging infrastructure and the overstretched cargo handling equipment mentioned above, Kenya Ports Authority is under constant international shipping lines and clearing and forwarding firms pressures to meet the optimum equipment availability and reliability to the required safety standards of interstate port users and appropriately balance those demands against the interests of the East and Central Africa economic growth. Future increase in Mombasa Port users (increase in containerized cargo) and economic growth, in the region and beyond, will increase the demand for reliable cargo handling equipment and further aggravate this problem. The main challenges and strategic issues to be looked at are: Increased equipment maintenance costs Reduced equipment life Reduced equipment reliability / efficiency Quality of maritime services offered Reduced Productivity Diminishing profits Preventive and predictive maintenance compliance

3.0

Problem, Objective and Strategy Analysis 3.1 Problem Analysis 3.2 Objective Analysis 3.3 Strategy Analysis Work Breakdown Structure

4.0

5.0

Project Network Diagram: Activity on Node

6.0

Stakeholder Analysis

6.1 6.2 6.3 6.4 6.5

Stakeholder Stakeholder Stakeholder Stakeholder Stakeholder

Identification Interests Power Influence Participation

7.0

Project Log Frame Matrix

8.0

Project Implementation Schedule & Framework for Monitoring and Evaluation 8.1 Implementation Schedule 8.2 Framework for Monitoring and Evaluation

9.0

Project Concept Paper 9.1 Introduction 9.2 Project Goal 9.3 Scope of the Project 9.4 Expected Project Output 9.5 Project Inputs and the Work Plan

Project Goal Statement The Kenya Ports Authority should balance the needs of all Port users and the International Shipping Lines and Clearing & Forwarding Agents by providing safe, affordable and reliable cargo handling equipment at all times. The reliable equipments and their maximum availability will offer mobility choices and complement the faith and trust that Shipping lines and cargo Clearing Agents have in the Port of Mombasa. It will support their economic initiatives, preserve and/or enhance their business ventures, facilitate speedy cargo movements and sustain the Kenyans quality of life, now and into the future.

A.

Reducing the high maintenance costs incurred on cargo handling equipment

B.

The following are the problem, objective and strategy analysis of the said Project: I. Problem Analysis II. Objective Analysis III. Strategy Analysis Work Breakdown Structure (WBS) to at least third level A work breakdown structure (WBS) in project management and systems engineering, is a tool used to define and group a project's discrete work elements in a way that helps organize and define the total work scope of the project. A work breakdown structure element may be a product, data, a service, or any combination. A WBS also provides the necessary framework for detailed cost estimating and control along with providing guidance for schedule development and control. Additionally the WBS is a dynamic tool and can be revised and updated as needed by the project manager.

C.

D.

Activity on Node diagram indicating durations of activities and the critical path

E.

Three stage Stakeholders analysis to determine the level of participation for each of the key stakeholders.

F.

Log-frame matrix

G.

Implementation Schedule and a framework for monitoring and evaluation

H.

Project Concept Paper for the purposes of funding