Mtwara. With the new cashew nuts marketing season around the corner, players in logistics are worried that the global scarcity of freight containers could have a
negative impact on Mtwara Port.The scarcity stems from the impact of the blocking of the Suez Canal by a giant container ship, the Ever Given, for several days early this year. The 1,300-foot vessel ran aground across the Canal on March 23, causing a global shipping traffic jam in Egypt, with vessels anchored on both sides of the waterway as they waited for it to be cleared. The development halted traffic through the canal and disrupted global trade.
Logistics industry players and other stakeholders who met here at the weekend said that – what with challenges in other regional sea gateways – Dar es Salaam Port was overwhelmed with cargos which should have been handled by other seaports, thus exacerbating the challenge of freight containers handling.
Speaking to The Citizen, Operations Manager of shipping agent PIL, Ireneus Selengia, suggested that the matter should not be left in hands of the government alone. In any case, the government has no choice but to work with other stakeholders who communicate with ship owners.
“Information is power. We are all involved here. It’s not about Mtwara Port or the government. The two cannot do much. Let’s look at it as one - see what to do” said Mr Selengia.
He added that ship owners do not prefer the East Africa route because freight rates are lower compared to Europe, America, Asia and other global routes.
For instance, the port rates in East Africa range from $6,000 to $7,000 while in Europe and America, they average $25,000.
Speaking to The Citizen, the president of the Tanzania Freight Forwarders Association (Taffa), Mr Edward Urio, commended Mtwara Port for its target to ship 250,000 tonnes of cashew nuts out of the 280,000 tonnes that are projected to be produced for export during the looming harvest season.
He, however, said that the target should go along with plans to influence dry bulk and container ship owners to focus on the port in southern Tanzania.
“I congratulate the government on the considerable improvements which it has done to Mtwara Port. This is a huge development and we are happy for it. But, I also take this rare opportunity to advise the port stakeholders – including the Tanzania Shipping Agents Association (Tasaa) and the Tanzania Shipping Agencies Corporation (Tasac) – to look to how best they can handle the global empty containers crisis most effectively and soonest. This is so that it will not hinder the export of cashew nuts from the country during this year’s harvest season, and well into the future,” said Urio.
However, he also urged stakeholders and the government to review the five percent export freight tax for Mtwara Port to be functionally competitive compared with other seaports in the region.
The Tasaa executive secretary, Mr Abel Uronu, took the opportunity to advise all and sundry, including especially shipping agents, that they should look for ship owners with whom they can agree on suitable terms and conditions. This is partly so as to ensure ready availability of freight containers.
Mr Uronu - who also happens to be the spokesperson for shipping agencies in Tanzania - said the government should also ensure smooth trade facilitation at its ports.
“Shipping agents should get into agreement with ship owners on the matter; we all know that there are secrets in trading,” said Uronu.
The Mtwara Port manager, Mr Juma Kijavara, said the Tanzania Ports Authority (TPA) aims at doing business and all stakeholders have the responsibility of searching for customers from all over the world. “Mtwara Port is hungry for cargos, and if you ask me, I will tell you that I prefer container ships since they are easier to off-load and load. They are also cheaper to handle... But, we are not particularly choosy, and we handle any and all ships,” the port manager said. During the meeting, the Mtwara Regional Commissioner, Brigadier General Marco Gaguti, asked the port stakeholders to be creative - and ensure that they handle at least 1000,000 tonnes per annum.
He said that busy ports create employment for the youth in the region, increase cash flows and contribute to economic growth not only in Tanzania, but also in neighbouring countries like Malawi, Mozambique the Comoros and Zambia.
“The government has invested a lot here, and we want to see the results physically and in statistics. We wish to create trade opportunities with our neighbours,” said Brig Gen Gaguti.
Speaking at the meeting, the Mtwara regional administrative secretary, Mr Abdallah Mallela, said all stakeholders have the responsibility to promote Mtwara Port in the best interests of the country.
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