Why Tanzania Ports Authority decided to suspend controversial new charges

In response, TPA director general, Plasduce Mbosa, said the extension would give all domestic and international clients, as well as the public, time to prepare. “The extension allows service providers to fulfil the terms of existing contracts with their clients within the remaining period up to June 30, 2026,” part of the statement read.

TPA’s director of Marketing and Communications, Dr George Fasha, insisted that the fees were not a surprise, noting that stakeholders had been consulted over the past six months and their feedback incorporated into the announcement.

“Our regulator, TASAC [the Tanzania Shipping Agencies Corporation], also engaged stakeholders and obtained their opinions before approving these fees. The aim is to improve our port infrastructure, enhancing efficiency now and in the future. Environmental fees are standard practice internationally,” Dr Fasha said.

He said that TPA is responsible for infrastructure development because it oversees strategic areas, while operators like DP World focus on commercial port operations. “Strategic projects cannot wait for operators. For instance, the construction of fuel storage tanks currently underway costs over Sh670 billion. TPA must fund these because they are nationally critical, even if they are not highly profitable commercially,” he said.

Dr Fasha said that some projects address national security and economic interests, which cannot be left solely to investors. However, rapid commercial decisions, such as equipment procurement, can be handled by operators.

Regarding congestion and cargo delays, Dr Fasha said these resulted from increased volumes. “The port attracted significant business in 2025/2026, which is why we prioritise infrastructure improvements to ensure efficient cargo handling,” he said.

Mr Mbosa previously told The Citizen’s sister paper, Mwananchi, that the fees would fund 18 new berths over 24 months. Once completed, additional storage space would reduce cargo handling costs and ease congestion, providing long-term relief for port users.

However, some traders and associations have raised concerns. National Traders Association Chairperson, Hamis Livembe, said the fees would affect everyone, including those importing vehicles or household items. He argued that fees should not be excessive, given that the government already earns significant revenue from customs duties and VAT.

“The complaints will be many. Increasing fees creates challenges. Postponing implementation is only a temporary fix; authorities need a practical solution,” he said.

Clearance Inland Depots Association of Tanzania (CIDAT) Chairperson, Meleck Shange, noted that consultations often involve junior representatives who cannot fully assess the implications, resulting in complaints despite engagement opportunities.

Tanzania Freight Forwarders Association (TAFFA) President Edward Urio said members had been consulted before the fee was introduced, including through a survey sent to more than 1,500 members. Only two responses were received. He added that many members do not take consultations seriously unless directly affected.

After the fee began to be implemented, TAFFA requested relief for cargo held at the port between January and February. The extension to July 1 was granted to ease the burden. An emergency members’ meeting is scheduled for March 11, 2026 to adopt a unified position and plan the next steps.

Economist Oscar Mkude said the fees would not significantly affect exports but could increase costs for domestic consumers. “Local traders may scale back operations due to higher costs, while private operators continue handling cargo efficiently but do not influence TPA’s infrastructure operations,” he said.

The postponement gives stakeholders time to adapt while TPA proceeds with its plans to expand and modernise port infrastructure, aiming to boost efficiency and reduce long-term costs for users.