Cargo transport cost in EAC routes among highest globally

By The guardian reporter

  New Mwambani port to ease strain on major docks

Dr. Enos Bukuku, (EAC) Deputy Secretary General in charge of Planning and Infrastructure

Poor railway connectivity and the costly destruction of adjoining roads by overloaded trucks has raised the cost of transport along the two main East African corridors (Central and Northern) to some of the highest per ton transport costs in the world.

As the major ports of Dar es Salaam and Mombasa strain under exponentially growing trade, the East African Community (EAC) is turning its eyes to the proposed 53trn/- port of Mwambani in Tanga to meet the capacity shortfall.

“The EAC heads of State have decided that all new railways development will be on standard gauge. It is therefore, with high expectation that we look forward to development of the new Mwambani Port,” said Dr. Enos Bukuku, EAC Deputy Secretary General in charge of Planning and Infrastructure.

Dr. Bukuku was speaking in Arusha late last week at a meeting convened to discuss the planned new deep sear port, railway transport and logistics corridor that will cover the Democratic Republic of Congo (DRC), Uganda and Tanzania.

“The Port of Mwambani is thus a welcome addition that will come in handy as capacity needs grow,” he said in a statement issued by the EAC in which he explains that the existing ports in the region suffer haulage incapacitation particularly due to the poor state of the connecting railways.

The Mwambani Port and Railway Corridor will not only provide a land bridge from the Indian Ocean Port of Mwambani to landlocked states but will also open up vast land areas that currently lay idle, it will improve connectivity and usher in new areas for development in agriculture and mining across its path.

With the completion of the Project, the region can envision the establishment of agro-processing industries to lengthen the value-chain, stepped up mining and agricultural activities as well as increased demand for social and economic services along the railway corridor including but not limited to housing, warehouses, office complexes, electricity, gas, water and information and communication technologies (ICTs).

The new deep sea port shall make Tanzania a direct hub port, enabling direct shipping from international ports and thus significantly reducing the cost of logistics to exporters and importers. The port at Tanga will host among others manufacturing, logistics and industries as well as key anchor activities including an integrated iron and steel manufacturing cluster.

Dr. Bukuku stated that the shortfall of infrastructure investment in the region is in the order of US$ 40 – 50 billion and is to be addressed in the next ten years creating huge and exciting business potential for the private sector.

In that respect, at their 2nd Retreat on Infrastructure Development and Financing in November 2012, the EAC Heads of State directed the EAC Council of Ministers to develop the necessary legislation and regulatory framework to enable private sector participation.

Experts hail the proposed port saying Tanzania shall enjoy a major economic boom as the new railway, port and port investments stimulate agro-development, also real estate and manufacturing will grow creating thousands of new jobs and careers. 

SOURCE: THE GUARDIAN