Road Transport Improves Trade With Burundi, Rwanda

Tanzania Daily News (Dar es Salaam)

John Kulekana

28 March 2011

TRANSPORT has throughout human history been a spur to civilisation and economic development. Some commentators have often rightly likened the role of transportation to that of veins and arteries in the human body, which are crucial to life.

Tanzania boasts of its strategic geographical location, with Dar es Salaam on the Indian Ocean coast, where it can easily be developed into a hub of the region’s transport network. At the inauguration of the 10th Parliament in Dodoma in November, President Jakaya Kikwete listed a catalogue of 13 items that would prominently feature in the government’s agenda over the next five years.

Top in the agenda include promotion of public private partnership (PPP) and full utilisation of the country’s strategic geographic advantages. The Tanzania Truck Owners Association (TATOA) recently met members of the Parliamentary Standing Committee on Energy and Minerals in Dar es Salaam and underscored the importance of transport industry to the country’s economy.

The TATOA Chairman, Mr Seif A. Seif, said the transport sector was crucial for economic development in the country and among the leading foreign exchange earners. He said it is now the third leading foreign exchange earner after mining and tourism sectors — well ahead of agriculture, livestock and fishing.

Mr Seif said Tanzania’s geographic position makes it capable to serve Burundi, the Democratic Republic of Congo (DRC), Rwanda, Zambia, Malawi, Mozambique, Uganda and Kenya. He listed several achievements of the association including increased co-operation with the government, regulatory bodies and other stakeholders in the industry.

He listed the bodies and stakeholders as the Tanzania Revenue Authority (TRA), Surface and Marine Transport Regulatory Authority (SUMATRA), Energy and Water Utilities Regulatory Authority (EWURA), TANROADS, Tanzania Bureau of Standards (TBS), Tanzania Ports Authority (TPA) and the Police Force.

“Through close co-operation, it has been possible for the industry, especially the road transport sub-sector to raise efficiency and capacity in delivery of services,” he said, noting that 75 per cent of cargo transport is done by trucks.

He said over the last ten years, TATOA members have contributed in creation of over one million jobs that include drivers, co-drivers, technicians and turn-boys. Mr Seif said Burundi cargo traffic through the Dar es Salaam Port has increased significantly over the last ten years.

He said Burundi imports through the Dar es Salaam Port have grown from about 70,000 tonnes annually in 2001 and reached 360,000 tonnes in 2010. Exports from Burundi averaged 20,000 tonnes during the period. Rwanda’s imports also went up to over 260,000 tonnes in 2010, up from 60,000 tonnes in 2001.

Committee members lauded the efforts by TATOA and were upbeat on the bright prospects of the sub-sector because of unfolding peace in DRC, Burundi and Rwanda. There are also bright prospects for increased traffic for Malawi, Mozambique and Zambia, as well as Kenya and Uganda.

The meeting listed several challenges including fuel adulteration, limited efficiency of the Dar es Salaam Port, slow clearance of cargo by TRAs and poor condition of roads, especially from Dodoma to Burundi, DRC, Rwanda and Uganda as well as Mtwara port to Malawi and Mozambique.

Fuel adulteration is currently regarded as the national scandal causing damage to property, massive tax evasion and the country’s reputation. It is estimated that the government loses at least 33bn/- in revenue annually through fuel adulteration and efforts were now being made to rectify the problem.

Apart from a huge loss in revenue, truck owners also suffer heavily because the adulterated fuel cause serious damage on various parts of the vehicles including the engine. The industry stakeholders urged the government to increase taxes on kerosene or reduce the charges on diesel to curb the problem.

Kerosene is at present charged about 431/- lower than diesel, a factor that makes traders mix the commodity with diesel. Sources say that jet fuel or aviation paraffin is also used by some crooked traders in adulteration.

“We have reports that some pilots sell the fuel to petrol stations,” a source told the ‘Business Standard’. Mr Seif said that another challenge is numerous police and security blocks along the roads.

“A driver from Dar es Salaam to Kigali, Rwanda or Lusaka, Zambia will encounter more than 40 police road blocks along the way and frustrate importers,” Mr Seif said. He said the hurdles along the roads frustrates importers and some opt for alternative routes like Durban (South Africa), Beira (Mozambique), Mombasa (Kenya) and Walvis Bay (Namibia).

Reports say that TPA is struggling to reduce dwelling time at the Dar es Salaam Port up to less than a week and installation of a single point mooring (SPM). Dwell time of three or four days will make the port highly competitive compared to other facilities, while SPM is going to make it possible for big tankers to off-load fast.

The current off-loading point at the Kurasini Oil Jetty (KOJ) handles vessels having a maximum of 38,000 tonnes, while the proposed SPM can handles tankers with up to 150,000 tonnes.

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