Tanga Cement, TRL sign deal to transport cement

DAILY NEWS Reporter

TANGA Cement Company Limited (TCCL) has entered into agreement with Tanzania Railway Limited to transport 35,000 tonnes of cement a month to Kigoma and Mwanza regions.

Under the agreement inked, Tanga Cement, which trades at Dar Stock Exchange as Simba Cement, will pay the service upfront for ferrying cement to Mwanza and Kigoma.

The agreement was signed by Tanga Cement Managing Director, Reinhardt Swart and TRL acting Managing Director, Masanja Kadogosa in Tanga. Tanga Cement MD said the agreement would offer Simba Cement a logistics solution that will improve efficiency, enhance its competitive advantage and reduce transport costs.

“As a local cement manufacturer, an efficient distribution scheme is crucial for our competitive growth. Rail is globally preferred as a more cost-effective and environmentally friendly mode of transport than trucks for cement,” Mr Swart said.

The flagging off of the first block train was officiated by the Minister for Works, Transport and Communication, Prof Makame Mbarawa. The TRL Acting Managing Director, Mr Kadogosa said that the railway authority had permanently allocated five locomotives and a shunting locomotive to Simba Cement.

The trains will shuttle a minimal of 20,000 tonnes of cement monthly from Pongwe in Tanga to Kigoma and 15,000 tonnes from Pongwe to Mwanza. “We are delighted to provide the local factory with a sustainable transport solution that will positively impact their customers and the community in general,” he said.

He revealed that Simba cement will pay for the freight services in advance thus ensuring funds are received in good time by TRL. Earlier this month, the TRL official was quoted saying in the 2014/15 period, Tanga Cement dispatched 44,000 tonnes of cement, whereas from July to December 2015 a total of 24,960 tonnes were delivered via the railway line.

The development comes less than a month after Prof Mbarawa revealed that the government was in final talks with Tanga Cement to use railway line for product distribution, in a move intended to minimise damage to the country’s road network.

Simba Cement share price gained 0.53 per cent on Tuesday to close at 1,880/- . The factory has a capacity of producing 105tonnes a month.