$129 million shipbuilding investment in Kigoma set to boost trade

Kigoma. A Turkish firm is investing $129 million (about Sh322.7 billion) in shipyard projects that will significantly simplify trade between Tanzania and neighbouring countries.

M/S Dearsan Gemi Insaat Sanayi As yesterday signed three contracts with the government for the implementation of the projects within two years.

Speaking yesterday, shortly after witnessing the signing of the agreements, Transport Minister Makame Mbarawa said an increase in the number of ships would help reduce the time spent shipping goods at affordable costs.

He said the projects, whose implementation is expected to start soon, will create about 300 direct jobs and open up business opportunities within and outside Tanzania, including boosting individual economies.

Prof Mbarawa noted that the construction of the shipyard is unique in the East and Central African region and that Tanzania did not have a shipyard before, a situation that prompted the government to take its ships to Mombasa, Kenya, for maintenance.

“For the first time in the history of our country, we are going to build a modern shipbuilding facility here in Kigoma Region with state-of-the-art equipment,” the minister said.

He directed Marine Services Company Limited (MSCL) to prepare and come up with a solid plan on how to operate the envisaged shipyard by having a sufficient number of experts to ensure it operates itself.

“We need to prepare ourselves because we cannot have industries and lack experts. The government invests in huge sums of shillings so that it can see positive results, as we won’t have those positive results if we don’t decide to have experts and find foreign markets for the facility to operate itself,” Prof Mbarawa said.

According to MSCL chief executive Eric Hammis, the shipyard project is expected to be worth over $129 million, equivalent to Sh322.7 billion, and will be completed within 24 months.

He noted that a 3,500-tonne cargo ship to be constructed on Lake Tanganyika will be capable of carrying 25 lorries, or 25 railway waggons, and 65 saloon cars. It will take six hours to sail from the port of Kigoma to the port of Kalemie in DR Congo.

According to Mr Hammis, the ship’s construction project is valued at over $63.467 million, equivalent to Sh159.30 billion, and will be completed within 36 months, according to the contract.

He said The third project involves the construction of a cargo ship on Lake Victoria, which will have the capacity of carrying 3,000 tonnes of cargo, including lorries and railway waggons. It is worth over $58 million (Sh45 billion) and will be implemented within 24 months.

A Tanzanian food trader, Mr Said Mwalimu, said that the construction of the ship in Kigoma Region would simplify their business activities, including saving time.

A resident of Kigoma Region, Ms Halima Ramadhani, said the projects would uplift the region and boost the economy; their sons and daughters would get jobs; and they themselves, as mothers, would be able to believe themselves in conducting small-scale businesses.