Wilfred Edwin
6 July 2009
Nairobi — The Tanzania International Container Terminal Services has offered a $14 million waiver on storage charges to various owners of cargo at the Dar es Salaam port.
This is aimed at speeding up clearance of long overdue cargo, whose owners might have either been in financial distress or in payment disputes with the authorities. Lately, performance of the port has been affected by piled up cargo.
Last week, TICTS said that all import containers at the port and at the inland container depots (ICDs) for over 120 days -- as of June 15, 2009 -- will be eligible for the 30-day amnesty from August 1-30, 2009.
Containers whose owners will not utilise the amnesty will be handled over to the Tanzania Revenue Authority (TRA) on September 1, 2009 for public auctioning.
TICTS has been facing criticism from both the public and Members of Parliament over its inability to clear out containers piled at the port.
It has also been criticised for a premature extension of its contract with the Tanzanian government.
Last week, however, it said that had the contract not been extended, the port would have been a barrier to the country's economic growth. It said that the port was in urgent need of expansion and investment as it exceeded its capacity in 2004.
Congestion is caused by lack of physical space and high dwell times -- the time taken to clear customs requirements and remove a container from the port.
Authorities last year licensed several yards to handle and store containers.
Data indicates that Tanzania's inland container depots (ICDs) can accommodate 8,300 containers.
But TICTS says ICDS have the dual role of catering for overflow volumes at the port and adding value to services, hence assisting importers.
By negotiating and offering rates below those at the terminal -- which are designed to stop turning the terminal into a storage area -- ICDs can be used by importers to bring in large consignments that require smaller distribution to local warehouses.
Also, ICDs are of great value to importers who face custom complexities and need to store containers in an alternative location, or transit containers.
TICTS spent $4 million to transfer 40,000 TEUs to ICDs last year, and is working with the Tanzania Road Haulage to assist in moving out excess containers.
Tanzania Railways Limited and Tanzania Railway Authority are also in the loop, and are committed to moving out of the terminal 1000 TEUs a month.
Recently, the director general of Tanzania Port Authority, Ephraim Mgawe, said congestion at the container terminal is greatly caused by importer's who lodge incomplete documents.
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