INFRASTRUCTURE PARTNERSHIPS FOR AFRICAN DEVELOPMENT (ipad) EAST AFRICA AUGUST 2009 KILIMANJARO KEMPINSKI HOTEL DAR ES SALAAM, TANZANIA
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1 INFRASTRUCTURE PARTNERSHIPS FOR AFRICAN DEVELOPMENT (ipad) EAST AFRICA AUGUST 2009 KILIMANJARO KEMPINSKI HOTEL DAR ES SALAAM, TANZANIA 1
2 PORTS AND TRANSPORT LOGISTICS The Case of Dar es Salaam Port By IDDI R. MKWATA Ag. Port Manager, Dar es Salaam 2
3 CONTENTS 1. INTRODUCTION 2. CHALLENGES 3. RECOMMENDED ACTIONS 4. CONCLUDING REMARKS 3
4 1. INTRODUCTION 1.1 Importance of Ports: Trade facilitation. Services to local, transit and transshipment traffic. Services to Shipping lines, Shippers and Consignees. Value adding activities. Employment opportunities. 4
5 1.2 Role of ports Gateway to hinterland s sea-born trade Meet special needs of land locked countries Transhipment/logistic points on sea routes and global trade Fishing industry support systems Platform for Cruise Tourism Environmental Enhancement 5
6 1.3 Tanzania Ports Authority (TPA) perspective Ports Sector Reforms started in 1990 s Objectives were to: Increase the capacity to deliver goods/services through private sector participation. Strengthen the public sector s ability to regulate the economy. Reduce public sector role in production/business activities. 6
7 Results of the Reforms were: Concessioning of DSM port Container Terminal in 2000 Establishment of Regulatory Authority (SUMATRA Act, 2001). Establishment of Landlord Port Authority (TPA Act, 2004). 7
8 The Ports Act, 2004 The Act: Repealed the THA Act, Established TPA. Transferred THA assets and liabilities to TPA. Transferred Marine Services infrastructure to TPA. Became effective 1 st July
9 1.4 TPA owns and operates: Major coastal ports Dar es Salaam Tanga Mtwara Minor coastal ports Kilwa Lindi Mafia Pangani Bagamoyo Lake ports Lake Victoria - Mwanza - Bukoba - Kemondo - Musoma Lake Tanganyika - Kigoma - Kasanga Lake Nyasa - Mbamba bay - Itungi 9
10 TPA Coastal and Lake ports Kemomdo bay Musoma Mwanza Kigoma Kasanga Itungi Tanga Dar es Salaam Mtwara port Mbamba Bay 10
11 1.5 DSM port serves the landlocked countries: Zambia, DRC, Malawi, Burundi, Rwanda, and Uganda. 1.6 Four transit corridors: DSM TAZARA Corridor: Serving Malawi, Zambia and DRC. TAZARA and TANZAM are the major networks Central Corridor: Serving DRC, Burundi, Rwanda and Uganda. TRL is the main network. Tanga Corridor Future potential for Uganda, Rwanda and Burundi. Mtwara Corridor serves Malawi, Mozambique and Zambia. 11
12 Transit corridors DRC D R CONGO NB: 1- Mtwara corridor, 2- DSM TAZARA corridor, 3- DSM Central corridor, 4- Tanga corridor 12
13 1.7 DSM port overview (i) Port facilities General Cargo Terminal: Capacity 3.1m tons per annum. Container Terminal: Capacity 310,000 TEUs per annum. Oil Terminals (SPM, KOJ): Capacity 6.0m tons per annum Grain Terminal: Capacity 30,000 tons. 13
14 (ii) Port Equipment: Container Terminal: 3 SSGs, 12 RTGs, 1 RMG, 2 Mobile Harbour Cranes (MHC), 5 R/S, 32 Tractors, 6 F/Loader,etc. General Cargo Terminal: 6 MHCs, 3 RTGs, 4 R/Stackers, 2 F/Loaders, 19 Tractors, 22 Forklifts, etc. Marine crafts: 5 Tugs, 4 Mooring boats, 1 patrol boats, 2 pilot boats, etc Grain terminal: 3 Silo bagging line, 6 hoppers, 13 grabs, etc. 14
15
16 DSM port facilities Oil terminal Grain terminal Container terminal General cargo terminal
17 (iii) Overall cargo traffic (in 000 tons) Imports E xports TR M Total Growth rates: Imports 6.9%, Exports 8.8%, TRM 2.3%, and Total 7.0% 17
18 (iv) Cargo clerance by modes DSM port ( 000 tons) Jan- Jun 09 ROAD 1,060 1,159 1,307, 1,605 1,645 2,069 2,477 1, RAIL: TRL TAZAR A Subtot al TOTAL 1,264 1,319 1,447 1,757 1,878 2,276 2,681 2,224 1,115 % Share Road TRL TAZARA
19 2. CHALLENGES 2.1 Port Congestion The Container Terminal capacity of 250,000 TEUs per annum was surpassed by the year By the year 2006, the port started to experience congestion. In year 2008, the Container Terminal handled 356,559 TEUs. 19
20 Causes of congestion Insufficient storage space Long dwell times, more than 20 days Sharp increase in container volumes; 15% per annum. Poor off-take of cargo. 20
21 2.2Provide efficient and cost effective services Reduce cargo dwell time and ships time in port. Reduce cost of services. Improve port productivity. 2.3 Improve on security and safety in accordance with ISPS code. 21
22 3. RECOMMENDED ACTIONS 3.1 Decongesting the Port Creating more storage areas inside the port. Reduction of border delays and regulatory checks along the highways in order to reduce truck turn-round time. Improve performance of the railways (TRL and TAZARA). 22
23 Improve documentation and speed up cargo clearance processes. Supportive tariff to reduce dwell time. Use of ICDs: MCCL, MOFED, DICD, AMI, TRH and East Coast. 23
24 3.2 Embark on Ports Investment (i) DSM Port
25 DSM port
26 (ii) Tanga port Actions/Terms Short Medium Long Maintenance of port Additional equipment, barges and pontoons Redevelop Tanga port for recreational and urban use 26
27 (iii) Mtwara port Actions/Terms Short Medium Long Dangote cement terminal CNG export jetty Woodchips terminal Other bulks Establish permanent working group 27
28 (iv) Lake Victoria ports Actions/Terms Short Medium Long Mwanza South port: Purchase container handling equipment Relocate rail yard Expansion Shipbuilding & repair facilities Develop new oil jetty Mwanza North port: Initiate dredging programme New ro-ro berth and passenger terminal Bukoba: Additional quay Nansio: Modify existing berth 28
29 Lake Victoria Port Bell (Uganda) Kisimu (Kenya) Bukoba Kemondo Bay Lake Victoria Musoma Nansio Mwanza
30 (v) Lake Tanganyika ports Actions/Terms Short Medium Long Kigoma: Upgrading of roads: Nyankanazi to Kigoma Mpanda, Uvinza to Kigoma Tunduma to Kasanga Development of berths and terminal area Kasanga: Hinterland connection Develop Additional handling facilities 30
31 Lake Tanganyika Bujumbura (Burundi) Kigoma Lake Tanganyika Kasanga Mpulungu (Zambia)
32 (vi) Lake Nyasa ports Actions/Terms Short Medium Long Itungi: Develop hinterland access route Develop basic facility in Kiwira Promote corridor develo0pments Mbamba bay: Expand quays and terminals Promote corridor developments Create proper road access to the port 32
33 Lake Nyasa Itungi Lake Nyasa Manda Chilumba (Malawi) Liuli Chipoka 250 km Mbamba Bay
34 5. CONCLUDING REMARKS There is need to: Create capacity ahead of demand. Invest in port infrastructure/superstructure. Invite Public Private Partnership (PPP) arrangement. Computerize and synchronize all cargo clearance processes. Improve off-take of cargo and increase share of Rail vs Road. Use Isaka and Mbeya dry ports. Improve Lake Ferries. Standardise rail gauges. Harmonise weighbridge tolerance levels and reduce check points. 34
35 THANK YOU 35
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