The company has the sole mandate to handle government cargo and also tap into private cargo. This means it will ship government goods and State tenders offered to private investors such as import of subsidised fertiliser.
The Government will seek to allocate a percentage of cargo to be shipped through the line and encourage partnerships with major international maritime companies.
Kenya imported goods worth Sh1.76 trillion in 2018, up from Sh1.72 billion in 2017. The discounted pricing could force other shipping lines to lower their costs in the race to grow and defend market share.
“In addition, special rates can be negotiated with the SGR for dedicated locomotives that will work towards a faster uptake of cargo which will then result t in cost saving for KNSL,” she said.
Ms Karigithu said reviving the shipping line will save the country over $20 million in demurrage cost that Kenya incurs on oil imports in commercial ships.
Kenya paid out $23 million (Sh2.3 billion) in demurrage or penalties for delayed evacuation of goods from ships due for its oil imports in 2017.
The foreign shareholders in the dormant shipping line include Mediterranean Shipping Company and MS Oceanfreight Ltd.
Multinational shipping lines have been angling for control of the KNSL as the government looks to revive the struggling parastatal.