Mtwara Port and Dangote Cement ink transport deal

Mtwara. Tanzania Ports Authority (TPA) yesterday entered into a business agreement with Dangote Cement Tanzania Limited that would see the southern waterway exporting 40,000 tonnes of cement monthly.

The amount is 27,000 tonnes more as compared to 13,000 tonnes passing the part, therefore increasing revenue four times.

Yesterday, TPA acting marketing manager Lydia Malya said that the agreement will enable the cement production industry to transport cement and clinker used as raw materials for cement production within and outside the country.

“Through the agreement, cement will now be transported to other parts of the country via the Mtwara, Tanga, Dar es Salaam and Zanzibar ports. Likewise, the product can be shipped further afield outside the country,” she said.

Ms Malya, who was speaking on behalf of TPA director general Erick Hamissi said the main objective of the agreement was to attract the company’s use of the port that would not only attract other users, but also increase government’s revenues.

Mtwara port manager Kalembwe said since most company’s customers are centered at the business capital of Dar es Salaam to other parts of the country including Kigoma the distribution through the ocean would be reliable for availability of cargo, hinting that the move will reduce the products prices.

Furthermore, he said before the agreement the plant transported cargo to Zanzibar, Comoro and Northern part of Mozambique at an average of 13,000 to 15, 000 tonnes through the port.

“The volume of cement that was passing the port remained relatively low compared to the plant production volume. Therefore, following this beginning, we expect more from the company and other stakeholders,” he said.

Dangote Cement Company Limited, produces 1.5 million tonnes of the product annually, however the factory’s installation capacity is 3 million tonnes per year.

Speaking during the event, the company’s chief executive officer, Mr Abdullah Baba said earlier they thought that it was a disadvantage to operate from a far away from the market area as compared to their competitors.

However, he said they later realized that they have a huge advantage to be located close to the deepest country’s port, noting that the factory was now working to secure more markets to Zanzibar, Comoro and Madagascar.

“This is a result of the recent visit by the Group President, Mr Aliko Dangote to President Samiah Suluhu Hassan. During the visit President Hassan expressed her desire to see all manufacturers are supported and given an opportunity to thrive and progress” he said.

He assured the TPA management that the company was committed to maximize the use of the port in order to benefit the country and attract more other users.

Mtwara Regional Commissioner Marco Gaguti said the agreement will definitely open economic opportunities in the region.