The Port of Mombasa in Kenya will be the home to one of East Africa’s largest container terminals as construction of the new development is underway.

The new container freight terminal will be connected to a rail transport system to transport cargo across the Horn of Africa region.

The project was undertaken to ease the flow of goods passing through the port as congestion has become a major trade barrier in the region.  Kenya is expected to spend KSh28 billion (US$321.5 million) to double the port’s cargo handling capacity and improve operations.

Kenyan President Mwai Kibaki, who launched the project on Wednesday, has expressed the importance of such a development as it could position the port as a regional maritime hub.

Mombasa is already strategically positioned as a gateway to the East and Central African regions and the optimisation and expansion the port is much needed for future economic growth and enhanced trade.