The Citizen (Dar es Salaam)
Ray Naluyaga
2 July 2009
As Parliament prepares to determine the fate of the contract awarded to Tanzania International Container Terminal Services (Ticts), the company yesterday announced a $14 million (Sh18.2 billion) amnesty to the owners of uncollected containers, in response to President Jakaya Kikwete's call to decongest Dar es Salaam Port.
Ticts Chief Executive Officer Neville Bisset told a press conference that the reprieve for the shippers would involve only charges supposed to be paid to the firm.
It targets for removal 500 containers currently occupying 20 per cent of the cargo area at the port. This development comes as MPs are set to debate in the National Assembly in Dodoma two companies, including Ticts, which are accused of poor performance that has cost the nation dearly, and recommend to the Government the next course of action.
The minister for Infrastructure Development, Dr Shukuru Kawambwa, is expected to present a detailed report on the performance of Ticts and Tanzania Railways Limited (TRL), which is managed by RITES of India.
At his press conference in Dar yesterday, Ticts CEO Bisset said: "All local and transit import containers lying at the port for over 120 days, as of June 15, are considered eligible for this amnesty, which will last for 30 days, from August 1 to 30."
However, he said, the normal documentation requirements would still apply and importers must clear with Customs and obtain the necessary delivery orders from their shipping agents.
"Customers are required to complete all the necessary documentation and obtain releases to enable them to pay port charges within deadline," he said.
The firm was offering one-off storage rates per container. But the owners of those that have been at the port for more than 365 days will pay $1,500 (Sh1.95 million) per container. Those that have stayed for between 181 and 365 days old would attract $2,000 (Sh2.6 million).
Owners of containers uncollected for 120 to 180 days would pay $2,500 (Sh3.2 million) for each. All the discounted storage rates would be subject to payment of VAT (Value Added Tax) and other port charges.
On September 1, all the uncollected containers would be handed over to Tanzania Revenue Authority for auction. Mr Bisset said that as a result of the amnesty, Ticts would receive only $500,000 (Sh650 million) instead of the $14 million it would have earned.
He said there was a general reduction in cargo at the port as the number of incoming ships has declined. By Tuesday evening, there was only one ship offloading motor vehicles. Mr Bisset said congestion at the port had eased, thanks to the efforts of the port stakeholders.
"Ninety per cent of the decongestion is due to the efforts of stakeholders such as TRA, shipping companies, Ticts and ICDs, while 10 per cent can be attributed to a fall in imports due to the current global financial crisis," he said.
Scheduled for discussion in Parliament besides Ticts and TRL, is the progress on the sale of government houses. The three issues had been set for presentation yesterday just before Dr Kawambwa presented his ministry's budget.
However, this had to be postponed after the Parliamentary Committee on Infrastructure found the prepared reports wanting, said Ms Jenista Mhagama, the Peramiho MP, who chaired yesterday's session.
"Honourable MPs, let me remind you that the reports on Ticts, RITES and the sale of government houses will not be presented today. This is because the committee found that the reports contain lots of loopholes. They will, therefore, be presented tomorrow."
Parliament has previously ordered a review of Ticts's contract on the grounds that it was extended under dubious circumstances.
The MPs want the Government to terminate the extension contract with the company. The initial 10-year contract was extended for 15 years before it expired.
However, though the reports are yet to be tabled, the chairman of the Parliamentary Committee on Infrastructure, Mr Mohammed Missanga (Singida South-CCM), yesterday urged the Government to take stern action against the public servants involved in the execution of the two contracts.
"Madam chairperson, the committee urges the Government to take stern disciplinary and legal measures against all those responsible for all the bad contracts such that of Ticts," said Mr Missanga.
He was presenting the committee's views on the Infrastructure Development ministry's budget for the financial year 2009/2010.
Additional reporting by Samuel Kamndaya in Dodoma
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