Govt observes cargo increase, revenue collection at Dar port

By Joseph Mwendapole , The Guardian
Published at 02:04 PM Nov 02 2024
From April to September 2024, the government collected 325.3bn/- from contracts between TPA and DP World, encompassing land rent, royalties, and wharfage fees.
Photo: File
From April to September 2024, the government collected 325.3bn/- from contracts between TPA and DP World, encompassing land rent, royalties, and wharfage fees.

THE government has reported an increase in cargo handled at the port of Dar es Salaam, rising from 141,889 tonnes in May 2024 to 168,336 tonnes by September, this year, a notable 18.6 percent increase over five months.

Minister of State in the President’s Office (Planning and Investment), Prof. Kitila Mkumbo told the National Assembly yesterday when presenting the National Development Plan for the year 2025/26.

Additionally, the number of containers processed (measured in Twenty-Foot Equivalent Units, or TEUs) surged from an average of 12,000 per month to 27,000 in September 2024, setting a new record for the port; the previous high was 15,000 containers.

He highlighted significant achievements since the Dubai-based multinational logistics company-DP World commenced operations at the Port.

Prof. Mkumbo said that DP World has invested TZS 214.425 billion, amounting to 31 percent of the total planned investment of 675bn/- over the next five years.

“This investment focuses on acquiring modern machinery, refurbishing existing equipment previously used by the Tanzania Ports Authority (TPA), and implementing an advanced IT system to enhance port operations,” he said.

He noted that the installation of new equipment, including ship-to-shore (SSG) and rubber-tyred gantry (RTG) cranes, has significantly improved efficiency.

The average turnaround time for cargo ships has reduced from seven days to three days. Consequently, the number of ships waiting to unload has decreased from an average of 35 in September 2023 to just 15 in September 2024.

Prof. Mkumbo highlighted that operational costs at the port have decreased to 2.7 percent of collections, with usage increasing by 15.1 percent per month prior to DP World’s involvement.

From April to September 2024, the government collected 325.3bn/- from contracts between TPA and DP World, encompassing land rent, royalties, and wharfage fees.

The minister further explained that increased revenue and reduced operating costs have allowed the government, through TPA, to invest in projects worth 1.922trn/-.

The projects include the construction of a fuel station (SRT), a new port at Mgao Island (Mtwara), and a Dhow wharf in Dar es Salaam.

Prof. Mkumbo also mentioned the successful integration of customs systems—the Tanzania Customs Integrated System (TANCIS) and the Tanzania Electronic Single Window System (TeSWS)—which has streamlined operations, reduced redundancies, and enhanced cargo clearance times, thereby increasing transparency and improving communication.

As a result of these improvements, tax revenue collected by the Tanzania Revenue Authority (TRA) has reached 1trn/- in September 2024, compared to an average of 850bn/- per month, underscoring the efficiency gains from expedited cargo processing.