TAZARA orders independent study on Dar port competitiveness

LYDIA SHEKIGHENDA

TANZANIA-Zambia Railway Authority’s (TAZARA) Board of Directors has ordered an independent study on the competitiveness of Dar es Salaam port following the disputed Value Added Tax on transit goods.

The board has directed the Dar es Salaam Corridor Committee to swiftly undertake the study and advice accordingly. It issued the directive at its 108th meeting in Lusaka over the weekend, with permanent secretaries responsible for Transport in Tanzania and Zambia, as co-chairpersons.

Three other board members from both countries were also present. According to a statement availed to the ‘Daily News’ in Dar es Salaam yesterday, the study should compare the competitiveness of Dar port with other regional ports and the potential impact on the authority.

Since the VAT on transit goods became effective last month, stakeholders using the port have been complaining about additional cost at the port, with others saying that the move was scaring away importers. But, Tanzania Revenue Authority (TRA) has delinked the dwindling cargo at the port with the newly introduced tax.

TRA Commissioner for Domestic Revenue Elijah Mwandumbya noted that comparatively the Dar es Salaam port remains cheaper than its competitor, Mombasa port.

The board however commended the improvement on freight traffic performance of the authority, thanks to improved annual performance from 87,000 metric tons of freight in the 2014/15 fiscal year to 130,000 metric tons in the last financial year, translating into revenues of 13.50 million US dollars (over 27bn/-) for the year ending June 30, 2016.

Following the improvement in both inter-state and commuter passenger train operations, the board warned the management against complacency, directing it to instead work harder to eliminate losses in all units and aim to attain the break-even point in all operations.

In its communiqué the board challenged the management to aggressively create and accommodate progressive proposals for Public-Private Partnerships and expedite the conclusion of the proposed partnership with the Copperbelt University at the TAZARA Training Centre in Mpikaas, an area for enriching capacity for the authority.

It also directed the management to discontinue the renewal of contracts for retired employees and ensure that succession plans were put in place for young employees to take over the positions left by retiring staff.