THE Parliamentary Committee on Legal and Constitutional Affairs has directed the Tanzania Railways Corporation (TRC) to fast-track the process of formulating regulations governing private firms wishing to provide services for the standard gauge railway (SGR).
Jason Rweikiza (Bukoba Rural), the committee chairman, aired this demand in Dar es Salaam over the weekend after inspecting the Magufuli station and inquiring about the ongoing process of making regulations to govern private sector engagement with investing in SGR services
He said that last year the Railways Act was amended to enable open access to the new railway line as part of efforts to enable the government to recoup funds invested in building the new railway line.
The MPs were thus seeking to see progress in formulating regulations that will govern private firms in such engagement, objecting to claims by the corporation that the time given was not enough.
The committee has insisted the management fast-track the process to save time, he said, underlining the need for investors to know the terms and conditions applicable before investing in such services.
With explicit terms and conditions, investors will be aware of specifications to observe when purchasing wagons or locomotives, he said, affirming that open access was the best approach to reduce the burden on the government and improve efficiency.
He praised the government for massive investment in building railway tracks and procurement of rolling stocks, while Transport Deputy Minister David Kihenzile said that arrangements on the Tanzania-Zambia railway (Tazara) show significant advantages in using open access.
Out of 447,000 tonnes of cargo transported during fiscal 2022/23, upwards of 300,000 tonnes was carried on private rolling stock, equivalent to 70 percent of total tonnage, he stated.
Last year a total of 164,000 tonnes out of 324,000 tonnes, equivalent to 54 percent was private sector rolling stock tonnage, he elaborated, underlining that the government appreciates the importance of the private sector in building the nation's economy.
Priority must be given to open access arrangements, he said, while TRC acting director general Albert Magandi promised to ensure the process of making the regulation was completed on time.
Last year, the government amended the Railways Act to allow open access facilities on railway lines for private operators to put rolling stock on SGR and carry passengers or cargo.
Amending the legislation was meant to increase efficiency, higher utilization of facilities, and fostering competition between service providers.
© 2024 IPPMEDIA.COM. ALL RIGHTS RESERVED