What is a Container Freight Station (CFS)?

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Profile

What is a Container Freight Station (CFS)? In countries where the Port operator does not have sufficient quayside yard space, they opt to have off-dock terminals close to the Port. In Kenya these off dock terminals are called Container Freight Stations (CFS). CFS operations are similar to that of a Port terminal in terms of customs clearance of Import or Export cargo in bulk, loose or containerized cargo. KENCONT is a leading CFS in the Port City of Mombasa on the East African Coast of Kenya. We are located within the Island of Mombasa and specialize in handling cars, bulk commodities such as Aid cargo and containers. How does a CFS work? The CFS industry in Kenya was established in 2007. This industry continues to develop and it is predicted that eventual linkages to inland ICDs will offer its clients more options. Usually positioned adjacent to the key port of entry, a CFS receives cargo under bond for imports or unbonded cargo for exports delivered to the port by various cargo vessels. In the case of transit and local import cargo, the goods are usually delivered from the vessel to the CFS by the CFS operator, from where the consignee clears the cargo with Customs. Transit cargo goes under Customs bond to the border points and it is cancelled once the cargo exits the Kenyan border. The bond can also be reused to import other transit cargo. The transit bond is meant to ensure that transit cargo is not diverted into the Kenyan economy without payment of requisite duties and taxes which impact would negatively impact the business environment not forgetting denying the Kenya government its much needed revenue. Although CFS have to apply for standard Port Authority tariffs, they provide customers with various benefits such as; negotiating favorable terms, extended free time, storage waivers and allowing clients to nominate the CFS of their choice to handle their cargo. Volume clients also stand to gain further from volume discounts. Vehicle importers require safe handling of their vehicle, safe storage, smooth customer service and reasonable rates. They want to register their cars on site and manage their stocks in light of the heavy cash flow outlays for duty payment and delays in selling cleared cars. This requires that the CFS formulates a plan for managing the client s stock flows so that cash is optimized and minimize the risk of financial shocks which burdens most logistics clients in East Africa. KENCONT CFS Profile 1

About Us The KENCONT CFS brand lies within Siginon Group which is the corporate umbrella brand. Siginon is an end-to-end logistics provider with over 27 years experience in logistics and air cargo handling in East Africa and the Great lakes region. The Group operates in 3 key business markets which are; global logistics, ground handling, air cargo handling and container freight station (CFS). KENCONT CFS was incepted in 2003 in the port city of Mombasa. Its inception was driven by our passion to be Africa s leader in cargo handling. We are committed to continuously seek opportunities which will enable us to spread our wings further and undertake movement of cargo in the entire Africa continent. Ultimately, wherever there is a customer shipment, we at KENCONT will provide the right CFS solutions. We pride ourselves in our reputation for efficiency, customer focus and financial strength that supports exceptional customer service delivery. We also ensure high levels of compliance with regulatory and accreditation requirements upheld through regular ISO, health, safety and security audits coupled with maintaining the new Authorized Economic Operator (AEO) status achieved by the Siginon Group. This ensures that we are easily able to engage various parties in finding solutions for our customers based on mutual trust and honesty. Our Vision To be Africa s World Class Logistics Company Our Mission Providing excellent logistics services Our Values Passion for Delivery Forward Looking Winning Integrity 2 KENCONT CFS Profile

Our People Kencont has experienced, knowledgeable staff, a key component to our successful client service. We have the benefit of offering our customers source to doorstep logistics with expertise drawn from the larger Siginon Group in clearance procedures, operational excellence and customer service that is based on humility, constant care and product knowledge that remains unsurpassed based on feedback from our clients. Our Customers Our customers are at the heart of our business at Kencont. We are motivated every day to offer efficient cargo handling and storage options that will enable you to remain focused on your core business. Kencont CFS customers can expect a world class approach in service delivery, with strong ethics and a customer driven solutions approach to our expansion and product offerings. At all times customer satisfaction remains our priority. Our Services Kencont CFS handles the following local and transit cargo: Vehicles and machinery Project and out of gauge cargo Commodities such as sugar, grains, aid cargo, palletised and bagged or in break bulk form. Consolidated cargo including vehicles in containers and personal effects Exports: local and transit Imports: local and transit We also handle containerised cargo that is de-stuffed/unpacked at the CFS for imports or stuffed/packed into the container at the CFS. KENCONT CFS Profile 3

LCL (Less than Container Load) Cargo There is an emerging trend amongst importers to minimise costs and reduce lead times in their supply chain through cargo consolidation as part of their global sourcing strategy. Kencont CFS offers unsurpassed efficiency in consolidation handling and convenience we boast of a wide network of consolidators both locally and internationally. We maintain client confidentiality and operate our own consolidation, to enhance confidence with our client consolidators, a key competitive consideration for commercial consolidation (also known as groupage cargo). Part-Shipped, Multi-Owned, Multi-Destination Containerised Cargo KENCONT handles containers imported on House Bill of Ladings (HBL) that need to be de-stuffed, multiple cargo and released to different owners. This also includes both local and transit pallets or packages, which can be deconsolidated and dispatched to different destinations or released to different clients as if often the case in relief cargo. As part of commitment to offer our customers an all-in service, we are constructing a container CFS in Miritini, on the outskirts of Mombasa that will cater to full container cargo handling. 4 KENCONT CFS Profile

Motor Vehicle Transfer At Kencont CFS, we understand that handling motor vehicles is sensitive due to the risk of loss of components and gadgets within the vehicle. We have therefore put in place a security system to ensure that all vehicles processing from receiving on the ramp, to their temporary staging at the Port while processing exit to the escort system to our CFS is foolproof and highly secure. Security is remains a key priority at Kencont CFS. We provide security to each vehicle while in the Port and in addition, should there be a vehicle with documentation issues that could delay processing; we provide 24 hour security for the affected vehicles, to ensure total control of security for the vehicles, at no extra cost to our clients. Our security service is also provided to our car carrier as it transports vehicles to their respective destinations. Ro-Ro Machinery Over the years Kencont CFS has gained expert knowledge in handling normal and sophisticated machinery such as construction and road building equipment, which are either self-driven or transported on low-loader trailers. Our expertise and handling experience ensures that your cargo reaches you safe, intact and secure and protects from mishaps or theft of components. KENCONT CFS Profile 5

Project Cargo At Kencont CFS we have heavily invested in specialised equipment to handle out of gauge and project cargo. The out of gauge cargo is cleared and insured and the suitable mode of transport chosen to deliver it to the consignee safely and securely. This is especially important since the movement of the cargo may need staging and warehousing while at our CFS. Our CFS provides our customers with the unique advantage of incorporating logistics services through our Siginon Global Logistics division. This ensures you of a service that delivers fast, cost effective and convenient in our handling of your cargo. Transit Exports Kencont CFS is able to handle transit cargo imported through the port of Mombasa to various destinations across East Africa. Through our affiliate company, Siginon Global Logistics, we can facilitate the cargo handling and movement logistics to almost anywhere in the world, including tea auction cargo, coffee and commodities such as sisal and iron ore amongst a host of others. Equipment Leasing Kencont CFS owns several cargo machines such as reach stackers and forklifts that can be leased for cargo handling work within Mombasa. 6 KENCONT CFS Profile

Why Choose Us? Certification Kencont CFS is a credible company boasting of local and global certifications such as ISO 9001: 2000, Authorized Economic Operator (AEO). Our strict adherence to the laid down regulations ensures attainment of standards is very much sought after by international businesses, and the AEO designation under Siginon Group gives Kencont CFS a competitive edge internationally. Safety Since its inception, Kencont prides itself in having zero pilferage of cargo at our CFS. Our premises are secured 24 hours every day of the week by CCTV, high perimeter walls coupled with electric fencing, experienced guards with guard dog patrol for extra deterrent capability. Our location in Mombasa town further enhances our ability to react to any threats to cargo security swiftly. We have almost 50% of our total acreage under warehouse, ensuring protection for vehicles against weather elements such as the coastal humidity and heat which are common in the coastal city of Mombasa as well as provide excellent security for commodities and loose cargo. We regularly audit and manage high safety standards are consistently upheld and maintained. Convenience Kencont boasts of the closest CFS location to all the institutions and facilities required for efficient clearance of cargo. We are located in Mbaraki, Mombasa, with close proximity to most clearing agent offices in town, barely 500 metres away from the Kenya Revenue Authority offices ( Customs Long Room), close to banks on Mombasa Island, with several approach roads, ensuring no delays due to traffic or distance and close proximity to Gate 10 of the Port, from where most import cars exit the Port. KENCONT CFS Profile 7

Corporate Social Responsibility The whole purpose of education is to turn mirrors into windows. ~Sydney J. Harris KENCONT CFS s inception was founded on the principle of improving livelihoods within communities where it exists. Our CSR policy has been focused on 3 pillars namely; education, environment and health care. We are driven to improve livelihoods in our communities through embarking on positive sustainable initiatives. Through our education pillar we lean towards positively influencing the youth in Kenya and tapping their talents to unleash their individual potential for the good of their community, Kenya and ultimately developing Africa. The environment pillar appreciates the role that Mother Nature plays in providing us with this treasure called the environment. We appreciate the impact our business makes in the course of our day to day operations and we have made a commitment to participate in the conservation of the environment for today s and future generations. The health pillar appreciates the need of our people and stakeholders to enjoy health and a quality life. Our initiatives are geared towards preventive care as well as managing of the HIV/AIDs pandemic which continues to plague our community. 8 KENCONT CFS Profile

KENCONT CFS Profile 9

Contact us KENCONT CFS, Off Mbaraki Road, Mombasa, opposite the KPA Mbaraki Sports Club. T: +254 (0)41 231 4171 M: +254 (0)729 403652/ (0)729 403 653 E: info@kencont.com