New agreement to raise Uganda’s cargo volume inked in Dar

Dar es Salaam. Port and rail service providers in Tanzania and Uganda have signed a freight forwarding agreement with Roofings Group of Uganda in a deliberate effort to raise the volume of cargo to and from the neighbouring land-locked country that passes through the Dar es Salaam port.

The agreement signed yesterday involved the Tanzania Ports Authority (TPA), the Tanzania Railways Corporation (TRC), the Uganda Railways Corporation (URC) and was facilitated under the Central Corridor Transit Transport Facilitation Agency (CCTTFA).

Currently, it is only about two percent of Uganda’s cargo that passes through the Dar es Salaam port, according to TRC Director General Masanja Kadogosa.

“This will mark an increase in shipping by 30 percent. It is a huge burden and as we speak here Uganda is adding to the Railways’ train heads to facilitate this trade” said Mr Kadogosa.

The chief operating officer of the URL, Mr Okachi Abubakar, said they were signing the agreement when 70 carriages were en route from Uganda and had set up two large ships on Lake Victoria to facilitate the transportation of the cargo.

Mr Abubakar told the company: “We are cooperating with TRC in oil shipping which has not existed for more than 15 years and we know that oil is more delicate compared to the product you want to export (dry).”

A representative from Roofings Group Martin Kyeyune said currently the company has a capacity of 250,000 tons per annum of steel and is expected to grow.

“In as far as the Central Corridor is concerned, our objective is to move all cargo by rail/water for as long as the partners in the logistics chain can handle the cargo” he noted

The TPA director general, Mr Erick Hamis said the authorities continue to promote Tanzania in the provision of port services to foreign countries by finding more traders and stakeholders in those countries, especially those located in East African Community, SADC, Comesa among others.

“Since this business was held by other people we have decided to pursue individual traders due to the fact that out of an average of 16 million tonnes passing through the port 70 percent remain in and only 30 percent go to neighboring countries,” he said.

Executive Secretary of CCTTFA, Dieudonne Dukundane said they are doing everything possible to further strengthen trade between East African countries including preparing professionals by building their capacity to study in various colleges around the world by giving them full funded scholarship.

“We have provided scholarships to 10 young people, two of them from each country since last year and this yea more will be provuded with scholarship to study at the Dar es Salaam Marine Institute”