Shipping & Logistics

A.B. Patel & Patel has for some time advised the principal port operator in Kenya on a host of commercial issues and transactions. The firm has been engaged on advising on port terminal regulations, terminal throughput agreements, terminal operating procedures, infrastructure projects, leasing and concession agreements.

In the shipping practice, the firm represents international shipping lines that call on the Kenyan ports and has also provided advice and assistance on cross border shipping matters. A number of Kenyan and international logistics companies are represented with the firm. The logistics companies engage the firm on a variety of legal issues relating to commercial, operational and regulatory aspects.

Notable Transactions

  • Advising and acting on behalf of several international P&I clubs as well as ship owners on ship arrests and claims for ownership, mortgagee’s claims, crew claims, protection of cargo interests under charter parties and bills of lading contracts, demurrage claims, general average claims and wages claims. Often this has culminated in acting and advising on the appraisal and sale of vessels, undertaking and defending litigation involving marine insurance claims on behalf of ship owners, charterers and interests through P&I clubs, enforcing or defending salvage, towage and pollution claims.
  • Successfully represented an international ship owner, on the first ever case general average claim to obtain contribution arising out of a piracy incident – the last recorded claim in the world arising out of such incident having been reported in the late 1700’s – and successfully recovered in excess of US$ 10million as security towards the claim for general average.
  • Advising and successfully representing the Kenya Ports Authority in the litigation on a claim arising out of damage to the ‘TEAMS’ undersea cable at Mombasa during dredging works being undertaken by the ‘MV Athena’ – Van Oord Dredging and Marine Contractors BV – for over US$ 66million.
  • Ongoing representation of Petra Development Services Limited on a claim for US$ 2.5million against an international shipping line and their local agents arising of a breach of contract claim.
  • Representing Alpha Logistics Services (EPZ) Limited on a salvage remuneration claim arising out of the grounding of a luxury yacht.
  • Advising Kenya Ports Authority, as principal transaction advisors on a complex transaction relating to operations within the port of Mombasa. The transaction value in excess of US$650million.
  • Advising Kenya Ports Authority on the restructuring of Kenya National Shipping Line Limited, a State Corporation.
  • Advising Spanfreight Shipping Services Limited as its principal advisors on the sale of its feeder line and logistics business in the blue Indian Ocean Islands and Kenya. The transaction value in excess of US$25million.
  • On a disposal of shares transaction, acted for the shareholders of General Cargo Services Limited on sale of shares and business to a non-Kenyan logistics company. Provided the shareholders with transaction advisory services, compliance and regulatory guidance. The transaction value in excess of KShs. 700 million.