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TPA offers traders advice on coal exporting opportunities

What you need to know:

  • Acting Mtwara port manager, Mr Nobert Kalembwe shared the tip after some four companies successfully sold 57,300 tonnes of coal to a company that exported to Poland in one vessel

Mtwara. Tanzania Ports Authority (TPA) has advised traders to join hands in an attempt to grab opportunities for exporting coal.

Acting Mtwara port manager, Mr Nobert Kalembwe shared the tip after some four companies successfully sold 57,300 tonnes of coal to a company that exported to Poland in one vessel. “If one has a small cargo and another the same, you collect and get enough cargo for shipment,” Mr Kalembwe said. The four companies include Milco, Sebdo, Beco and Tancoal, which sold to Amex, and Market Insight, which exported the coal to Poland.

Amex Group chief executive officer Filip Celadnic said it was a significant achievement for them to export coal to the European market after months of preparation. He said Tanzania will probably become the only country in the world that can supply coal for the European household market.

“This has been a significant investment achieved through the efforts of many people, including the government and its authorities,” he said.

He said the partners intend to export 500,000 to one million tonnes of coal annually. However, there are a few things to improve, such as the speed of loading a vessel, he said, adding that more work is expected to happen at the port.

A representative of Market Insight, Mr Ashraf Hang, said that they got great cooperation from the TPA and other government authorities that made the exportation of the cargo possible. Head of operations at Milcoil Company, Mr Binod Kumar, explained that the quality of coal produced in the country is better compared to other parts of the continent.

“I worked in two other countries in the coal industry and can confirm that this coal we are producing here is very good. We are going to enhance the production of coal later so that one can recognise Tanzania coal,” said Mr Kumar.

Previously, only two companies namely Ruvuma Coals Limited and Jitegemee Holdings were transporting coal through the Mtwara port since October 2021.

From July last year to the end of January this year, Mtwara port has shipped more than one million (1,000,300) tonnes of coal, which is equivalent to 150 percent of the target of shipping 402,200 tonnes annually.

Recently deputy permanent secretary for the Ministry of Works and Transport, Dr Ally Posi urged TPA to market the Mtwara port following government investment at the port worth Sh157.8 billion.