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Move to extend storage waiver at Tanzania's port for Ugandan shippers takes shape
Some of the trucks loaded with rice and maize parked on the Tanzania side at Mutukula border town on June 22. Photos/ Issa Aliga.
What you need to know:
- Uganda is served through a multimodal system, that is; the rail–to–lake–network from the Port of Dar es Salaam to Portbell and Jinja through Mwanza on Lake Victoria
As a result of the global supply chain disruptions, thanks to the Covid-19 pandemic, global conflicts and climate change (the 3Cs), the Tanzania Ports Authority (TPA) in a gesture aiming at consolidating its Ugandan market, has offered several incentives including a 30-day free storage period for all Uganda’s bound imports.
Local shippers describe this gesture as a right step, saying the last two to three years have been unusually difficult to negotiate, considering the pressures emanating from the aforementioned disruptions, raising the cost of doing business.
TPA, who were the main sponsors of the recent FIATA-RAME 2023 logistics conference, held in Kampala, Uganda from 01-03 August 2023, pledged to support the shippers and logistics service providers in building resilience in their operations and to help them in adapting to the new trends and disruptions in international trade.
“Ports play a key role in facilitating trade and creating competitive markets and economies. TPA has a dedicated Ugandan shed, which is available for shippers to use at any given time as both a consolidation and deconsolidation centre, especially for imports. Exports of up to 3,500 metric tonnes are also allowed in this shade for consolidation purposes,” said, Yesaya Masangya, TPA’s Marketing Manager, who was speaking at the RAME conference in Munyonyo, Kampala.
Adding, “The 30 free days will give shippers a more realistic import planning and allow them to comply with the requirements of various stakeholders. We hope that this will, to some degree, help users of Tanzania ports recover from the slump brought about by the 3Cs.”
Masangya also noted that Non-Tariff Barriers (NTBs) remained the biggest trade concern across nations.
TPA is mandated to provide a seamless gateway to global economies as well as offer efficient cargo-handling services. The core functions of the Authority are combined with facilitation and partnerships in order to provide an efficient and reliable service.
The Authority operates a system of ports that not only serve the Tanzania hinterland but also Uganda, DRC, Zambia, Rwanda, Burundi, Malawi and Zimbabwe.
The Port of Dar es Salaam alone handles over 30 million tonnes of cargo per annum [general cargo – 9 million tonnes; container yard – 11 million tonnes or 1,500,000 twenty-foot equivalent units (TEUs); liquid bulk – 10 million tons].
A liaison office in Kampala – opened less than five years ago – to bring services closer, emphasising Uganda’s position as a strategic transit market for TPA.
Uganda is served through a multimodal system, that is; the rail–to–lake–network from the Port of Dar es Salaam to Portbell and Jinja through Mwanza on Lake Victoria.
MV Umoja – which has been grounded for rehabilitation – is set to resume operations in August 2023, enhancing the capacity on Lake Victoria. It will supplement MV Kaawa, which is currently making over eight voyages of over 15,000 metric tonnes (MT) a month (both imports and exports).
The multi-modal transport route has cut transit time and costs between Dar es Salaam and Uganda by over 20% and 40% respectively, compared to using only the road.
A number of developments are underway in order to transform Mwanza into a modern port, says Ferdinand Nyathi, the Port Manager. In addition, TPA is in the process of centralizing operations by establishing a One-Stop Center at Mwanza to streamline communication among the different stakeholders, while easing the process of allocating wagons since the Port will be running a transparent schedule.
“TPA is working closely with the Government of Tanzania and other stakeholders to streamline various port activities with the aim of attaining a seamless flow of information and cargo from the Port to the final destinations,” says Arnold Tarimo, Marketing Officer, TPA.
He notes that port operations involve multiple regulators and partners, each with a different standard and in most cases independent systems, which if not well coordinated leads to delays; and therefore cost and time inefficiencies.
“One of the remedies to this is the establishment of TPA’s Bandari Tower – One Stop Centre that offers a 360 degrees service to customers as it is home to over 35 port stakeholders – all under one roof – saving customers time and money,” Tarimo adds.
