Transporters urge faster freight wagon implementation on SGR

Tatoa chairman Elias Lukumay said currently, trucks were being largely underutilised in the transporting of cargo compared to the potential benefits offered by the SGR.

“We would like to see those interested in introducing freight wagons move more quickly so that truck owners can secure more business in transporting cargo to its final destinations,” Mr Lukumay said.

In June 2024, Tanzania Railways Corporation (TRC) disclosed that several Tanzanian and international companies are interested in partnering with the government to operate freight services on the SGR.

The list includes Tanzanian firms such as GSM, Bakhresa Group, Mohammed Enterprises, Lake Oil, Azania and Jambo, along with several companies from China and Europe.

The push for freight wagons comes as the Tanzania Bus Owners Association (Taboa) develops new strategies to remain competitive.

Electric trains on the SGR have already impacted bus operations, prompting some operators to explore new routes or shift their capital investments.

Mr Lukumay noted that, for example, Uganda handles 370,000 tonnes of cargo annually, with only five percent transported by trucks, indicating a substantial opportunity for growth in the trucking sector.

He emphasised that the SGR’s impact will stimulate the trucking business, as trucks will be needed to transport cargo from the railway’s terminus to its final destinations.

Recent reports indicate that bus owners are facing difficulties due to reduced operations on routes served by the Dar-Morogoro-Dodoma corridor since the SGR’s launch.

This has led some operators to seek alternative routes to maintain their business.

Tatoa and other stakeholders are closely monitoring the SGR’s progress to explore integration opportunities through the Open Access Regulations 2024, which aim to increase cargo volumes entering the country.

Mr  Lukumay also called on the government to maintain infrastructure for strategic projects and support transporters in their role as ambassadors for the country.

Tanzania Medium and Small Truck Owners Association (TMSTOA) chairman Chuki Shaaban highlighted that the SGR could provide more opportunities for trucks, as they will handle cargo transport from the Dar es Salaam port to other destinations. Shaaban also advocated for expanding the railway network to regions like Mbeya and Kilimanjaro.

The Tanzania Railways Corporation (TRC) reported that, since the launch of electric train services from Dar es Salaam to Morogoro and Dodoma, 366,000 passengers have been transported, surpassing initial expectations.

 TRC director general Masanja Kadogosa praised the positive progress but acknowledged ongoing challenges, including ticketing and operational issues.

Mr Kadogosa urged Tanzanians to support the progress of the SGR and allow time for resolving challenges. He emphasised the importance of collaboration with the private sector to ensure the railway operates effectively and sustainably.

“We should be proud of our achievements. Tanzania is leading the way in operating its own SGR, a feat no other African country has accomplished,” Mr Kadogosa said, noting the international interest in learning from Tanzania’s experience.

“This is the way forward—to work with the private sector for the development of the railway. Involving the private sector will ensure that the railway operates as a pure business, helping to reduce investment costs and allowing other funds to be used for further development,” he said.