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Why capacity, efficiency have increased at Dar port

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Dar es Salaam Port handled 14.4 million tonnes of cargo from May to November 2024, a 5.6 percent increase compared to the corresponding period in 2023. PHOTO | FILE

Dar es Salaam.  Stakeholders have attributed increased cargo handling capacity and efficiency at Dar es Salaam Port to several key factors, including investment in strategic infrastructure, better operational efficiency and enhanced customs and cargo processing systems.

Chief government spokesperson Gerson Msigwa said recently that Dar es Salaam Port handled 14.4 million tonnes of cargo from May to November 2024, a 5.6 percent increase compared to the corresponding period in 2023.

Tanzanian ports collectively handled 16.5 million tonnes of cargo from May to November 2024, marking a 5.92 percent on the amount handled during the preceding year’s corresponding period.

According to Mr Msigwa, 6.3 million tonnes of transit goods passed through Dar es Salaam Port from May and November 2024, a 19.3 percent increase from 5.3 million tonnes that were handled in 2023.

He said these improvements are a result of the government’s continued investment in port infrastructure.

Tanzania Ports Authority (TPA) director general Plasduce Mbossa told The Citizen that much of Dar es Salaam Port’s success could be attributed large-scale investments and partnerships, which have revolutionised operations.

“The introduction of modern equipment such as ship-to-shore (SSG) and rubber tyre gantry (RTG) cranes has drastically reduced the turnaround time for vessels, making Dar es Salaam Port more efficient than ever before,” he said.

These upgrades have reduced vessel waiting times, with average waiting periods falling from 46 days in May 2024 to just 7 days by November 2024 and a record 0 days for container ships.

Mr Mbossa said a pivotal element in the progress is the collaboration with the Dubai-based global port operator DP World.

The partnership, which came into effect in April 2024, has driven substantial operational and technological advancements at Tanzania’s largest and busiest port, he said, adding that DP World’s investment commitments, including $250 million for modernising port infrastructure, have already made a visible impact.

According to Mr Msigwa, in just five months, DP World invested Sh214.4 billion (31 percent of the total investment commitment) in acquiring new equipment, refurbishing machinery and putting in place a state-of-the-art IT system to enhance port operations.

Improvements are also evident in the reduction of port operating costs.

Under DP World’s management, operating costs fell by 2.7 percent in just five months, compared to a previous annual increase of 15.1 percent.

Mr Mbossa also said the introduction of the Tanzania Electronic Single Window System (TeSWS) and integration with the Tanzania Customs Integrated System (TANCIS) have further improved clearance times.

“These systems allow for faster and more transparent processing of goods, leading to a significant increase in transit cargo from neighbouring countries.

This underscores the port’s growing importance as a logistics hub, not only for Tanzania but the entire East African region.

”Mr Mbossa added that strategic investments in port infrastructure, coupled with modern technologies and operational enhancements, are expected to further bolster Tanzania’s position in international trade within the region.

“The government, through TPA, is already using increased revenues from improved port operations to fund major infrastructure projects to the tune of Sh1.922 trillion ($686.6 million).

These include the construction of a new fuel terminal, a new port in Mtwara and additional berths at Dar es Salaam Port,” he said.

For his part, Tanzania Truck Owners Association (Tatoa) vice chairman Rahim Dossa said the improvements have reduced costs and directly benefited exporters and importers.

“Efficient operations lead to reduced shipping costs, which, in turn, lower the cost of doing business in the country.

This helps to make Tanzanian goods more competitive in international markets,” he added.

Tanzania Freight Forwarders Association (TFFA) executive secretary Elitunu Mallania said improvements in port efficiency have had a positive effect on the logistics sector in Tanzania.

“With faster turnaround times for containers and streamlined customs processes, goods move faster and more predictably.

This is a huge win for the entire supply chain and, ultimately, the economy.

”Economists have also highlighted the broader economic implications of Dar es Salaam Port’s enhanced performance.

An economist with the University of Dar es Salaam, Dr Wilhelm Ngasamiaku, said efficient port operations are critical for the nation’s trade balance.

“When ports like Dar es Salaam function optimally, it reduces the overall cost of importation and exportation.

It also makes the country more attractive to foreign investors looking for a reliable logistics hub,” he said.