Transporters fault new port charges, warn of rising cost of trade in Tanzania

Containers await clearance at the Dar es Salaam Port. PHOTO/FILE

Dar es Salaam. Transporters and traders have raised concerns over new domestic cargo charges introduced at Tanzania’s ports, warning that the revised rates will significantly increase the cost of doing business and eventually push up prices for consumers.

The new tariff book released by the Tanzania Ports Authority (TPA) came into force on March 8, 2025, replacing the previous schedule that had been in use since March 2013. The authority says the changes are necessary to finance major infrastructure upgrades, improve efficiency and strengthen environmental protection at the ports.

However, stakeholders in the transport and logistics sector argue that the charges are too high and were implemented too quickly, leaving businesses with little time to adjust. Some also claim the level of consultation was insufficient, despite TPA insisting that discussions were held with stakeholders before approval by the regulator, the Tanzania Shipping Agencies Corporation.

TPA Director General Plasduce Mbossa said the new rates will enable the authority to construct 18 new berths within 24 months and expand cargo handling capacity, which he said will reduce delays and other costs in the long run.

“After these investments, storage delays will be minimised and port users will benefit from improved efficiency. The tariffs were last reviewed more than a decade ago, so the adjustment was unavoidable,” he said, adding that the new charges were benchmarked against those of neighbouring countries.

But transporters say the immediate impact is severe. The director of Dar Planet Logistics Limited, Philibert Msacky, said the introduction of new levies has sharply increased clearance costs.

“They have introduced an infrastructure improvement levy of 0.09 percent of CIF value and an environmental management charge depending on the type and size of cargo. This has pushed port costs close to, or even higher than, the value of the goods in some cases,” he said.

According to him, under the environmental charge a 20-foot container now pays $50 (Sh128,970) while a 40-foot container pays $100 (Sh255,900). General cargo is charged $0.25 per tonne, while vehicles are charged $1 per cubic metre.

Mr Msacky said one container that previously cost Sh925,848 to clear now requires about Sh3.8 million, while some transporters have reported vehicle charges rising from Sh230,000 to Sh1.2 million and others from Sh500,000 to Sh3.4 million.

Transporters warn that such increases will inevitably be passed on to importers, manufacturers and ultimately consumers, raising the cost of goods in the domestic market.

However, the chairman of the Tanzania Shipping Agents Association, Daniel Malongo, said the objective of the new tariff structure is to speed up port operations and reduce vessel waiting time.

“This tariff book has been under preparation for more than six months. The aim is to improve port infrastructure, build new berths and strengthen the digital management system so that services become faster and more reliable,” he said.

He added that the previous tariff had remained unchanged for more than 10 years, making the revision overdue, and noted that the new charges will bring Tanzania’s port costs closer to those of neighbouring countries.