Uganda Gets Privileged Rates for using Dar port

Impressed by the Tanzania Ports Authority (TPA) efforts to restore efficiency at the Dar es Salaam port, Uganda became the first East African landlocked country to start using the port for its importation.

The two countries on Friday signed a Memorandum of Understanding (MoU) in which Uganda will enjoy privileged rates based on trade volume increment.

Briefing journalists after reading the memorandum at the Tanzania Ports Authority (TPA), the Tanzanian minister of Transport Dr Harrison Mwakyembe said in the past years, Uganda had withdrawn from using the Dar es Salaam port, a move that had a great effect to the government revenue.

He said for example in 2011 alone, Tanzania transported only one per cent of Uganda’s cargo, while 99 per cent went through Kenya’s Mombasa port which is a competitor to Tanzania. And in 2012 it was even less than the 1%.

Dr Mwakyembe said Tanzania plans to overtake Kenya by taking enough shares of cargo transported to Uganda and imported through its harbour. This can be successful if preferential rates are offered and the existing challenges in handling cargo are overcome to add up to efficiency.

“Uganda had almost withdrawn the use of our port for its importation and that at least 99% of its cargo went through Mombasa port.”

“But, now it wants to effectively utilise the port and that we have to work hard to address the challenges so that we remain attractive and competitive,” said Dr Mwakyembe.

He said to add efficiency on transit, the government has advised Uganda to bring at least two railway wagons to speed up transportation of cargo from Tabora to Uganda.

Adding that, “currently the state of our rail is pleasing but we need to undertake more maintenance at the harbour and to increase offloading speed from the current seven days to five or even four days,” said Dr Mwakyembe.

For his part, the Ugandan minister of State for Works and Transport Mr John Byabagambi, said things would have been moving if there would have been clear coordination and flow of information between the two governments.

However, to see things work, an official who will be placed in Tanzania to manage goods for Ugandan traders will have to observe the performance indicators set as a major tool to monitor Uganda’s civil servants.

On the other hand, the Ugandan minister for Finance, Planning and Economic Development Ms Maria Kiwanuka advised that ministers of both sides responsible for transportation to cooperate closely and ensure that the implementation of what has been agreed is done fast.

NMG

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