[EN-SEA] TICT's Dar CT Monopoly Ends, But Port Decongestion Need Rail Fix

A DEAL between the Tanzanian government and the Tanzania International Container Terminal (Ticts) to end its monopoly over Dar es Salaam terminal operations has been signed, but it is not expected to end crippling port congestion, says the Dar es Salaam Citizen.

Ticts has long been blamed for chronic port congestion, with parliament voting to terminate the contract, which gave the company exclusivity rights for 25 years.

Amending, rather than ending the contract, thus opening the door to rivals, has been estimated to cost the government TSH1 trillion (US$762 million) in damages and other penalties.

Ticts was first awarded a 10-year in 2000, but this was extended in 2004 to cover another 15 years, giving the company 25 years of exclusive container handling rights at the port, the gateway to the sea for about eight landlocked east and central African countries, including Uganda and Zambia.

But congestion has less to do with the management of container terminal than the state of rail infrastructure, the absence of which, delays landside deliveries from the port, said the newspaper.

European Union (EU) head of delegation Tim Clarke said improving infrastructure is crucial for efficiency at the harbour. Speaking at an infrastructure workshop, Mr Clarke said revamping the railways, was a prerequisite for decongesting Dar es Salaam Port.

Mr Clarke said the rehabilitation of the railways would not only help Tanzania, but also the landlocked neighbours who depend on port as their gateway to the world. And since containers could more efficiently move by rail, it was necessary to ensure the railway system works.

An anonymous expert told The Citizen: "The government must improve infrastructure, particularly the Tanzania-Zambia Railway Authority (Tazara) and Tanzania Railway Limited (TRL), if cargo is to move faster out of the port."

But Tazara, built with Chinese aid, is without funds and TRL, built by the Germans and the British, is also broke. The Indian company that bought a 25-year TRL management contract, is said to have no money to invest in upgrading rolling stock.

Source : HKSG, 13.10.09