26 November 2012

Tanzania: Dar es Salaam Port Seeks Grain Terminal Operator

THE ministry of transport is looking into a suitable way of leasing a grain terminal at Dar es Salaam Port that has been idle for the last five years.

The ministry's intervention followed revelation by DSM Corridor Group (DCG) that the said terminal with the capacity to handle 30,000 tonnes is idle and efforts to make it operational have failed.

The Minister for Transport, Dr Harrison Mwakyembe, told the DCG to forward its proposals on how to make the facility operational before taking to task the Tanzania Port Authority (TPA) on the matter.

"Why have you (TPA) been sitting on the proposals for all these years?" Dr Mwakyembe asked the TPA during the European Union (EU) envoys' tour of the port. The Minister said so far three companies have shown interest to operate the terminal. He directed DCG to re-forward the proposal to the ministry for further scrutiny before deciding the right firm to run the facility.

The TPA acting Deputy Director General, Mr Clemence Kiloyavaha, said the port was trying to figure out the best way of running the facility by looking at different options including public private partnership (PPP). "We are looking at the best option to run the grain terminal.

But we have not reached the conclusive solution," said Mr Kiloyavaha, who was representing the TPA acting DG during the diplomats' tour. The DCG Chief Executive Officer, Mr Erik Kok, said they have been writing to TPA every year in the past five years without getting any meaningful response from the institution.

"There is an excellent opportunity to run the facility under PPP, although efforts to get TPA response failed despite the fact that the facility had been idle for the last five years," Mr Kok told the minister. He added: "There is some revenue out of that outfit." Last time the firm wrote the TPA was in this April.

The Finnish-Dutch owned stevedoring company, is currently operating a fertilizer warehouse adjacent to the TPA grain terminal that has the capacity to store 19,000 tonnes. Three firms, Mohammed Enterprises, Bakhresa Group of Companies and DSM Corridor, have forwarded their proposal to TPA for running of the facility.

DSM Corridor operates a special fertiliser handling terminal adjacent to the Dar Port, which is unique in whole Sub-Saharan Africa. The new fertiliser terminal put Dar on the map as a first class fertilizer discharge port. The Group' private investment serves the entire agro-industry by improving fertilizer handling efficiency, thus decreasing costs of fertilizer.

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