Over 500 Logistics Sector Players from East Africa And around the globe are converging at Sheraton Hotel in Kampala for the 2nd Global Logistics Convention 2018 aimed at finding ways to improve the sector. The convention is organized by Uganda Freight Forwards Association (UFFA) and is sponsored by the Department for International Development (DFID) through TradeMark Africa (TMA) During the first day of the event, the participants including Government officials, the private sector and development partners, emphasized the importance of the Logistics and Transport Sector in facilitation of trade and development in the East Africa Community (EAC) Adrian Green, the head of Growth and Economic Management at UKAid, which has been at the forefront of supporting trade facilitation in EAC through TMA, noted; “Sustainable development is directly linked to how the logistics sector facilitates trade. Perhaps for a long time, Development partners have overlooked this and focused on rural development and ignored that we need to focus as well on logistics and transportation.” He added, “As development partners, we recognize the critical importance of this sector and would like to help address the key challenges facing this sector” According to Allan Ngugi, the in-charge of capacity building for the logistics industry at TMA, the organization with aid from DFID will roll out a capacity building program to improve skills for SMEs, improve capacity of bonded warehouses and training E.A customs and Freight forwarders drivers “This is aimed at improving their efficiency and professionalism in the logistics sector. We are working...

The Ugandan government says the improvement of the Northern Corridor and expansion of the port of Mombasa have enhanced its trade with Kenya. Uganda Consulate in Mombasa Katureebe Tayebwa on Tuesday said the two countries are enjoying the benefit of the infrastructural developmental being undertaken. “When Kenya is doing well, Uganda is doing better and what we have so far achieved is commendable through the development and improvement of the corridor and the port,” said Mr Tayebwa. Speaking during a press briefing at the consulate offices in Nyali, Mombasa, Mr Tayebwa said since Kenya is the gateway to Uganda, it is only through infrastructural improvement that the two countries will economically prosper. “Over 80 per cent of our imports and exports as a country go through the Mombasa port and that should tell you how much important the port is to us and the value we give it,” said Mr Tayebwa. The government has focused on construction of major roads along the corridor and expansion of the port. The projects consist of bypasses and expansion of roads all the way from Mombasa to Nairobi and parts of the corridor. The Port of Mombasa has been outlining its plans to handle two million containers annually by 2022. Currently, the port handles 30 million tonnes of cargo annually and the KPA wants to increase it to 45 million tonnes in the next four years. Some of the huge infrastructural projects KPA is also undertaking include the ongoing construction of the Lamu port,...

The Kenya Ports Authority (KPA) has engaged in an ambitious Sh120 billion expansion in a bid to protect its position as the region's biggest port facility. Speaking in an exclusive interview with Shipping, KPA managing director Daniel Manduku said the organisation is seeking to fight competition from the port of Dar er salaam. Currently KPA is undertaking the construction of the Sh20 billion Shimoni port, the Sh40 billion new Kipevu Oil Terminal, the construction of the Sh30 billion second container terminal at the Port of Mombasa and the construction of the Sh30 billion Dongo Kundu free trade port. Reports indicate that importers from Rwanda, Uganda and Burundi and other Great Lakes region countries are slowly shifting to the Port of Dar es salaam. "Everyone looks for good business opportunities and we know that the Rwandan market is growing," said Dr Manduku. He said Tanzania is an alternative corridor for importers in the Great Lakes region, and Kenya has no choice but to be competitive. "...being in the East African region and being alive to the fact that we have alternative corridor puts us in an awkward position because now we must constantly be ahead of the game,” said Dr Manduku. The MD disclosed that the building of the Sh20 Shimoni Port along the Kenya/Tanzania border is awaiting the public partnership approval. The fishing port of Shimoni is one of the 11 small facilities that KPA wants to develop countrywide in an ambitious multi-billion shillings programme Dr Manduku said the construction...

Recently, the permanent secretary in the Foreign Affairs and East African Cooperation ministry, Prof Adolf Mkenda, lamented that Kenya had slapped a ban on rice imports from Tanzania, noting that the ban is allegedly on account of the commodity’s low quality and packaging, Prof Mkenda said Tanzania has demanded an explanation over the ban, which suggests that a new trade tiff is brewing. The ban comes a few months after President John Magufuli and his Kenyan counterpart, Mr Uhuru Kenyatta, intervened to get their ministers in charge of East African Community (EAC) affairs to resolve an earlier trade dispute. Indeed, there are unresolved trade concerns between Tanzania and Kenya, and this latest only adds to the woes. But as good, old members of the EAC, we need each other in the regional integration stakes – along with the other four EAC member states, namely Uganda, Rwanda, Burundi and South Sudan. So, tit-for-tat decisions should be avoided in the best interests of our peoples and economies. Indeed, such developments do not augur well for EAC cooperation and economic integration. And, in that regard, the relevant authorities must always seek to address contentious issues promptly, amicably and conclusively. Source The Citizen

The project stalled several years ago after the government and the Chinese company failed to agree on certain contractual terms. But it has now emerged that after a recent discussion with Prime Minister Kassim Majaliwa, both parties agreed to renew talks for a new commitment towards implementing the project. According to CMHI managing director Hu Jianhua, the project represents a high risk for Chinese investors, but the company is “willing to work together with the government and people of Tanzania to build the Bagamoyo Special Economic Zone.” He made the remarks during a meeting with a Tanzanian government delegation led by premier Majaliwa in Beijing recently. Officials from the Chinese government were also present at the meeting. On his part, Majaliwa said the government is still open to further discussions with potential BSZ project partners, describing the project as being important for Tanzania’s continuing economic growth and a possible example for the entire continent to follow once completed. He directed relevant government authorities to get down to serious talks with CMHI as well as another partner from Oman. “This may help us all reach a conclusion that would allow the project start as soon as possible,” he added. Initial reports had it that financial constraints had forced Tanzania to miss out on full ownership of the $10 billion project. Under a three-way partnership deal signed with Oman and China in 2013, Tanzania was to get an undisclosed shareholding in the project by dint of raising $28 million for compensating landowners...

Dar es Salaam. Tanzania International Container Terminal Services (Ticts) has achieved a monthly record of 54,447 containers – measured in twenty-foot equivalent units (TEUs) – in August 2018 as the volume of both local and transit traffic was reported to have grown. The company said in a statement that the volume grew by more than 20 per cent compared to that of August 2017 while transit cargo for some countries increased by more than 45 per cent year on year in August 2018. The last record monthly throughput of 50,400 TEUs was achieved in March 2018, according to the statement. The company operates the largest container terminal at the port of Dar es Salaam. “Landlocked countries have been driving growth for Ticts as a result of significant increases in global commodity prices and the Tanzanian government’s removal of value added tax on ancillary services for transit cargo,” said Ticts chief executive Jared Zerbe. “Our modern equipment and standards of excellence are helping us handle the volume increase, although space constraints represent an acute challenge,” he added. Mr Zerbe said space is a challenge due to the fact that transit containers cannot be transferred outside the port for storage prior to clearance. This leads to maximum yard density at peak times. “To increase efficiency, Ticts has been working with the government to locate alternative storage areas for transit containers. Ticts has also been appealing to the government to allow some transit cargo to be sent outside the port to inland container...

Kampala, Uganda. 17th Sept 2018.   The 2018 Global Logistics Convention, under the theme ‘Freight Logistics: The Edge to Competitiveness’ is currently underway at Kampala Sheraton Hotel, hosted by Uganda Freight Forwarders Association (UFFA) in partnership with the National Logistics Platform and the Ministry of Works and Transport. While opening the Global Logistics Convention, Hon Monica Azuba Ntege, the Minister of Works and Transport highlighted government’s commitment to developing the logistics industry noting that this is showcased by the transport infrastructure diversification approach taken by government  that covers  road, railway, air and water. “In order to overcome the supply chain bottlenecks associated with over-reliance on the Northern Corridor, Government is developing the Southern – route  ( Central Corridor) via Water Transport from Port Bell to Mwanza Port in Tanzania. A new port at Bukasa is being developed which will also provide faster and cheaper means of transport directly by ship to Musoma or Mwanza in Tanzania and then by land to Dar es Salam or Tanga at the Indian Ocean. This project is set to be completed in 2020,” Hon Azuba said, adding; “The National Airline is being revived. A new airport is also being developed at Kabaale in Hoima District. The objective is to increase Uganda’s competitiveness by reducing the cost of air transport and ease connectivity to and from Uganda, with the intention of leveraging opportunities in the tourism, agriculture, minerals, and oil and gas sectors.” In his remarks, Adrian Green, Head of Growth and Economic Management at UKAid underscored...

In 2006, Uganda confirmed that it had discovered oil. It was a moment that would continue to define Uganda’s future. During the period of discovery and later developing the oil fields, logistics companies have played a crucial role. Right from the start as the country was in the process of discovering oil, logistics companies were moving equipment to the Albertine Graben. Indeed the Oil and Gas did contribute to the growth of logistics companies. Entities likeThreeWays Shipping, Multilines and Bemuga expanded their fleet as a result of the demand by the oil companies. In fact, at the time when oil companies were awaiting the government to approve production licenses, the most affected operations were those of logisticscompanies. They were forced to restructure. However, those were short-term blips. The long-term presents greater opportunities. The estimates indicate that even before oil is recovered, about $10billion will be spent. For Uganda’s economy, that money will be transformational. The estimate for jobs to be created is about 150, 000. Some of these jobs will be with logistics companies. It is important to note that the specialized jobs in the sector are the least whereas the non-specialized jobs – like drivers – are the most. Once oil companies approve their Final Investment Decisions (FIDs) in the oil sector, then it will open up for further investment by logistics companies.According to the Uganda government, there will be vast equipment to bring into the country in order to deliver first oil. The equipment and materials – mostly...

The Minister of Works and Transport Monica Azuba Ntege has said government will sign a memorandum of Understanding (MoU) with the Transport and Logistics sector to facilitate public and private partnerships (PPP). Azuba said government was already reviewing the National Transport Development Strategy to include the logistics sector so that it can be helped to develop and improve as it is crucial for economic Development This was during the official opening of the 2-day Global Logistics Convention 2018 taking place at Sheraton Hotel in Kampala. Minister Azuba said Uganda has been involved in infrastructure works to improve transportation of goods and services and facilitate trade and would continue to invest heavily in roads, railway, water and air transport to enable trade. “We have increased the number of Kilometers of the constructed roads from 1000 to 4500 in the last 10 years. We are in plans to construct the Standard Gauge Railway (SGR). Currently, major works to improve Entebbe airport are underway and government is in its last stages to revive the National Airlines. These will all facilitate the transport and Logistics sector and help in improving the country’s competitiveness,” she said. The National Logistics Platform supports Trademark East Africa’s strategy to reduce transport (road, rail, and air) cost and time along transport corridors by 10 percent and increase efficiency in private sector logistics services provision. It also expected to enhance customs and other trade-related agencies efficiency (25% reduction in time to process trade documentation) through integrated trade management systems and...

JUBA, Sept. 17 (Xinhua) -- The recently signed peace deal provides opportunities for war-torn South Sudan to attract more trading partners and boost its presence in the global trade arena, a senior official government official said on Monday. Stephen Doctor Matatia, director general of External Trade in the Ministry of Trade, Industry and East African Community (EAC) Affairs, said Juba hopes to negotiate trade agreements with several countries in a bid to diversify its oil-dependent economy. "This time if peace is attained; there must be organized trade, authorized trade and legal trade. We will start with the neighboring countries and the countries of our interests and our choice. We will trade with any country in the world," Matatia told Xinhua in a recent interview. He said trade negotiations with several countries were halted after the east African nation plunged into civil war in 2013, but now the government is prepared to resume dynamic and prosperous trade with any country. With South Sudan's accession to the Continental Free Trade Area pact and its full membership in the regional trading bloc, the East African Community (EAC), Matatia said South Sudan is better placed to succeed in negotiating long-term trade agreements. According to the World Bank, South Sudan is the most oil-dependent nation in the world, with oil accounting for almost the totality of exports, and around 60 percent of its gross domestic product (GDP). But after the young nation descended into civil war in late 2013, oil production declined from 350,000 barrels...