KSC – KWATOS Project - Business Advocacy

1 KSC KWATOS Project The Kenya Ports Authority in line with its strategic objective of transforming the port of Mombasa into a paperless E-Port by year 2010, introduced the Kilindini Waterfront Automated Terminal Operating System ( KWATOS ). The system went live on 1st July 2008 with the aim of automating key port operation areas. The are: Container Operations Conventional Cargo Operations Marine operations ICD operations, Nairobi and Kisumu The cargo owners supported the efforts by the Port authority to automate its systems with the hope that this would streamline the cargo release process and reduce dwell time. The benefits of these reductions are enormous as the cost of doing Business through the port of Mombasa would be drastically reduced and benefits directly improving competitiveness. The KWATOS Project implementation team did wide consultations with key stakeholders with KSC playing a major role as an anchor stakeholder during the system process re-engineering and design.

2 Training of stakeholders, end users and authority staff was done and pre Go live parallel run was done for two weeks mainly focusing on export consignments. On going live on 1st July 2008, as expected of any new system it was faced with a number of problems both technical and human. The effect of this is that the port has been congested to worrying levels. The cargo owners have raised concerns that have pushed the cost of doing Business higher, not to mention the delays that have led to industrial shut downs, exports missing their orders, perishable exports as fruits and horticulture getting spoilt leading to huge losses. Some of the teething problems that have been identified by the users of the system include: 1. Migration from SAP to KWATOS : The Port was initially using SAP which was more of a financial billing system without ability to track movements of cargo in and out of the port. Data had to be uploaded to the new system leading to duplication and conflicts in data requiring a clean up.

3 This made it impossible for the users to lodge documents. 2. End user adaptation: As expected of any new system, internal staff of KPA was slow to adapt to the use of the new system. This resulted to delays and errors that led to rejection of documents by the system. 3. External User Adaptation: External users have had a lot of challenges with adapting to electronic lodgments of documents through the system. On the onset out of about 1000 trained clearing agents only about 50 users were lodging the documents online. Most agents were using the help desks which were set to assist on technical issues with the system. The result is that the help desk staff was overwhelmed by documents backlog. Clearing the backlog has been a challenge leading to containers staying at the port for up to three weeks. 4. Information from shipping Agents: Shipping lines are expected to lodge electronic documents including Manifests, delivery orders, and stowage plans through the system.

4 The timelines set at the implementation phase are however not being met by shipping lines in submitting these critical documents. This has forced the staff to capture critical information manually loosing the intended benefits of a paperless system. There is need to set standards and penalties for shipping lines who do not work within the expected timelines. 5. Integration with the Customs systems: The system success is dependant on the full integration with the KRA system. Customs are responsible for cargo clearance till release at the gates. Thais means that there is need to integrate the two systems as the physical and equipment facilitation is done by KPA thus requiring the two systems to talk to each other to enjoy the full benefits. This is however not the case at the moment as there are too many manual interventions leading to delays. Customs officers required further training on the use of KWATOS .

5 6. Truck Company registration: It is a system requirement that all truck companies operating at the port be registered in the system database. However most of those who have registered are KTA members leaving a large number of small operators yet to register. The benefits of this system seem not to have been well articulated 7. Network instability: The system relies on stability of internet and wireless networks. This is because the system is wholly reliant on the accurate information on yard inventory. There is need to improve the service provision on the network to achieve full benefits. 8. Staff resistance: As expected of any new automation, there a lot of uncertainty regarding job security. This leads to resistance. Clearing agent clerks are apprehensive on the role of port clerks post KWATOS while KPA staff are using the new system to fight the 7 day working week schedule. This has led to what cargo owners view as system sabotage.

6 9. Railways (RVR) Performance: The performance of RVR has been wanting and the backlog already existing pre KWATOS has led to congestion of the terminal. The month long strike by the railway workers also affected the off take of cargo. 10. Suspension of Passwords of Key C&F Agents: The Customs department of customs suspended passwords of key C&F agents whose businesses account for about 70% of the Port Throughput on Saturday 12th July. The reason given was delayed transit cargo beyond the statutory free period. The move was uncalled for since the agents in question were reputable agents and the suspension The problems of implementation has led to serous delays and congestion at the port with ship waiting period reaching an all time high. KSC has been playing a very central role in sorting out the teething problems including a meeting with KPA management and the Minister of Transport last week. The result of the meetings is the parallel runs of the two systems and the suspension of the 7 day working week at the port by the minister due to the go slow by the staff.

7 The system is now stabilizing. Gilbert