The initiative includes both an upgrade to existing tracks and new rail lines that will be laid along the country’s central transport corridor and beyond, with work slated to begin before the end of the current fiscal year in June. Once completed, the project will provide Tanzania with an extensive standard-gauge railway network, which will not only reduce costs and delays for internal trade, but also have a similar impact on shipments between the Port of Dar es Salaam and neighbouring countries, such as Zambia, Burundi and Rwanda. Developments will be largely financed by China’s Exim Bank, after the government signed a memorandum of understanding with the lender for the $7.6bn Central Corridor Railway (CCR) project, which will modernise 2190 km of the country’s existing rail network. The route is an essential component of Tanzania’s main freight and passenger transport backbone, forming part of the Central Corridor of East and Central Eastern Africa, which connects the Port of Dar es Salaam by road, rail and inland waterways to Burundi, Rwanda, Uganda and the eastern part of the Democratic Republic of Congo (DRC). Long overdue Tanzania’s rail services have long been neglected, resulting in a steady decline of freight volumes. Currently, as is often the case in African markets, road networks handle the vast majority of internal distribution. However, the government has signalled its intention to make the CCR a priority, setting aside $455m for the project in the 2016/17 budget to top up the funding from China. Makame Mbarawa, Tanzania’s...

DAR ES SALAAM, TANZANIA - In the last one year Tanzania through its program “Big Result Now” (BRN) has recorded an impressive performance of the minimum average of five days in the clearing of containers at the Dar es Salaam Port as Central Corridor Transport Observatory (CCTTFA) Annual Report latest report shows. Its annual report reveals that the indicators of effectiveness and productivity are generated to determine how productive the port can be; for instance how does the container stay at the port (dwell time), not only that but also that the indicator category helps to measure the efficiency of the port as well. According to the report, the average release time from Tanzania Revenue Authority (TRA) calculated from a time difference, from when a declaration custom agent to when a release order is issued by customs, keeps decreasing for the year 2015 from 51.6 average hours in May to 49.6 hours to December which is an improvement of the customs processing unit. On the ship turnaround time it refers to the total time spent by a ship in the port and it is measured by the average of the time in days per ship from time a ship enters the port area to the time it exits the port area. The report further explained that normally, it comprises the ship waiting time (time when the vessel is being offloaded or loaded with cargo), however, the ship waiting time is normally a small proportion of the turnaround time. Therefore to...

Traders in Taita-Taveta have complained over growing cross-border trade barriers with Tanzania. Women traders mainly cereal dealers, say they are not allowed to conduct business in Tanzania freely despite the East Africa Common Market Protocol. At a workshop on East African Community (EAC) Customs and Immigration procedures, it emerged that apart from arbitrary arrests by security personnel, women are also sexually abused. The two-day workshop sponsored by TradeMark Africa (TMA) aimed at training women traders in EAC member States on how to grow their businesses at the border. Christine Nankubuge Ndawula, Programmes Director, Eastern African Sub –Regional Support Initiative for the advancement of women (EASSI) said women who use undesignated routes were prone to abuse. “Women traders should ensure they get valid travel documents while conducting their business in a foreign country because if they do not do so they are likely to be harassed,” she said. Ms Ndawula said the EAC Gender Bill that is currently at the East Africa Legislative Assembly in Arusha if passed and assented into law will help address the problem. “The law will hold the EAC member States accountable on gender issues and also enable women to participate in governance. The proposed law will also enable women fully participate in regional integration process,” she said. Taita Taveta County First Lady Hope Mruttu noted the cross-border trade is still favouring Tanzania traders who conduct their business freely in Taveta border town. She said some of the foreign traders have established business premises in the town...

More cruise ships continue to call at the Port of Mombasa as the Kenya Ports Authority insisted yesterday the construction of cruise ship terminal will be completed by July next year. A cruise ship MV Nautica yesterday docked at the port with 654 passengers and 396 crew members on board. The tourists, enroute to Seychelles, were on a one-day excursion to Shimba Hills, Malindi, Amboseli and Mombasa town. The ship was making its second call this season, having made the first one on December 10. Another vessel MV Silva Cloud docked on December 6. KPA spokesperson Haji Masemo said two other vessels will dock in the next two months. Speaking when he welcomed more than 1,000 cruise tourists, Masemo said interior partitioning for the proposed terminal in line with set standards has started. He said the terminal will enable the port to bag more accolades.  Last December, during the launch of the terminal, Tourism Cabinet Secretary Najib Balala said the cruise ship terminal cost Sh350 million. He said this was a major boost to Kenya’s tourism sector. Masemo said Trademark East Africa, a development partner, has contributed Sh100 million of the total budget. Hopes on cruise ship tourism were revived after the government restored calm following a series of incursion by pirates. Ships were diverted North, some tourists were abducted and ransoms amounting to millions of shillings was demanded. Masemo said the terminal will increase the number of cruise vessels docking at the port. The KPA said it hopes visitor...

On January 11, Transport Cabinet Secretary James Macharia was in Mombasa to receive the first batch of locomotives for the standard gauge railway. The railway is one of Jubilee’s flagship projects. The CS spoke to Nation writer MATHIAS RINGA in Mombasa on some of the government’s projects at the Coast. What is the progress of the Sh372 billion standard gauge railway (SGR)? I am glad to announce that the civil works on the 472km railway line from Mombasa to Nairobi was completed in November last year. We have already received the first six locomotives from China. In total, the government will receive 56 of them. The President will commission the railway on June 1. What will be the impact of this project on Mombasa port and in particular evacuation of cargo? Also, comment on how the railway will be operated. The railway will boost transportation of cargo from the port of Mombasa to Nairobi and decongest the port. Following the commissioning of the first phase of the second container terminal last year, container handling capacity at the port increased from 1.1 million TEUs (twenty-foot equivalent units) to 1.65 million TEUs. Transportation of cargo from Mombasa to Nairobi will take between six and eight hours compared to 20 hours by road while passengers will take four hours to get to Nairobi. The railway will also reduce transport costs. Regarding operations, the government has already identified John Holland Ltd based in Australia to operate the railway services. To sustain the services, 2,000...

The East African Legislative Assembly (EALA) has urged the Council of Ministers to act decisively in checking what it called “fraudulent procurement processes” that are allegedly dogging the EAC Secretariat based in Arusha, Tanzania. Besides calling for the central decision-making and governing organ of the East African Community (EAC) to consider enacting a law on financial and procurement management as a necessity, the regional lawmakers also recommended strict compliance with the EAC financial rules and regulations and want punitive action taken against officials who violate rules and procedures. This came up as lawmakers debated a 27-page report of the Committee on Legal, Rules and Privileges on the matter of investigation of procurement of group life insurance Company for the Community. During debate, in Kampala, yesterday, there were mixed reactions although a majority lawmakers spoke strongly against alleged scams at the Secretariat, the executive organ of the Community, which is mandated to ensure that regulations and directives adopted by the Council are properly implemented. MP Abubakar Zein (Kenya) said what he read in the report was “akin to fraud, theft and defrauding the Community.” “Delay [in procurement as reported] was part of an orchestrated design. This is choreographed theft,” Zein said. “The management also ignored the legal advice of the Counsel to the Community and in so doing put the Community and those who serve it at risk.” The EAC Secretary-General, Amb. Libérat Mfumukeko, insisted that during his new term, since last year, he focused efforts on putting things right. Mfumukeko...

Since January 02, signs of bird flu were detected in Uganda where fishermen reported “mass death of wild birds” on the shores of Lake Victoria, near Entebbe, which lies near the capital Kampala. Burundi is on alert. The director in charge of animal health in the Burundian ministry of agriculture and livestock, Mr. Nsanganiyumwami Déogratias says they are aware of the presence of the disease in East African Community since Monday 16th January 2017. “We held a meeting with the minister and competent experts to impose measures to protect people against any contamination”, he says. “Uganda is not very far from Burundi and there are comings and goings of people and merchandises between the two countries. Our experts are working hard to adopt preventive measures against bird flu, which will be communicated soon”. According to Nsanganiyumwami, it is not easy to recognize the disease when it has attacked birds. He, however, advises people especially farmers, to inform immediately veterinarians in case there is a dead chicken. Bird flu also called avian flu/influenza is an infectious disease that spreads very fast among birds and can kill them. It can be transmitted to human beings, causing severe respiratory diseases that may result in death. Its symptoms in humans can vary and range from “typical” flu symptoms (fever, sore throat, muscle pain) to eye infections and pneumonia. The disease caused by the H5N1 virus is a particularly severe form of pneumonia that leads to viral pneumonia and multiorgan failure in many people who...

Uganda said the first phase of a railway designed to improve connections between the landlocked East African country and three of its neighbours will cost $2.3 billion (Sh236.9 billion). Chinese contractors are expected to begin construction later this year. China Harbour Engineering Company is preparing to start building the 273-kilometre (170-mile) standard-gauge section that will link Uganda’s capital, Kampala, and the Kenyan border, a phase that will take 40 months to complete, project coordinator Kasingye Kyamugambi said in an e-mailed response to questions on January 13. Uganda is borrowing money from the Export-Import Bank of China for the project with details still being finalised, he said, declining to comment on the size of the loan. The new development is a major boost to Kenya’s Standard Gauge Railway (SGR) project, whose viability had been threatened by Uganda’s earlier decision to bolt out of a joint venture on the project. It appears Exim Bank, the financier of both the Kenyan and Ugandan lines, are keen on seeing through the whole line between the two countries. “Recently, Uganda went to engage the China Exim Bank and one of the conditions they were given is that Uganda and Kenya must appoint one operator to carry out maintenance of SGR between Mombasa and Kampala for the bank to consider any financing,” Kenya Railways Managing Director Atanas Maina was quoted saying by one of the local dailies recently. The Ugandan line is being constructed by China Harbour Engineering Company, a subsidiary of China Communications Construction Company...

Kenya’s import bill for the 10 months to October last year went down significantly, offering much-needed reprieve to the country’s balance of payments. The decline saw the country’s trade deficit decline by 13.2 per cent to Sh705 billion - the lowest since 2012, according the latest figures from the Kenya National Bureau of Statistics (KNBS). “In 2016, improvement in trade deficit reading was mainly driven by an 8.8 year-on-year drop in imports,” commented the Standard Investment Bank in a statement to newsrooms. The drop in imports was driven by reduced purchases of transport equipment which averaged 10.4 per cent of total imports in 2016 compared with 16.3 per cent in 2015. During the period under review, the imposition of higher excise taxes on cars hit the car importation business hard. Volume of vehicles sold last year plunged 30 per cent, with the industry selling about 13,535 units compared to 19,523 units a year earlier. In October last year, the National Treasury removed excise tax on locally assembled vehicles, opting to charge 20 per cent of a used imported vehicle’s value instead of the flat fee of Sh200,000. The decline in imports of transport equipment proved a double-edged sword, with the taxman collecting less revenue from importation of motor vehicles. Besides oil, which constitutes about 22.4 per cent of Kenya’s total imports, the country also imports cars, delivery trucks, tractors and bi-wheel vehicles such as motorbikes. Transport equipment comprises about 6.3 per cent of the country’s total imports. Most of the...

In Summary Plans are at an advanced stage for the construction of a Sh6.1 billion six-lane super highway from Jomvu to Mombasa The Government also plans to construct a dual carriageway of four lanes from Jomvu to Mariakani at a cost of Sh11 billion. The projects are expected to improve accessibility to businesses in Mombasa mainland west and the town as well as port activities in the county. A faster pathway for trucks and an efficient rail network look set to change the image of Mombasa port as Kenya steps up efforts to improve the regional facility. Plans are at an advanced stage for the construction of a Sh6.1 billion six-lane super highway from Jomvu to Mombasa to speed up movement of goods and passengers. The Government also plans to construct a dual carriageway of four lanes from Jomvu to Mariakani at a cost of Sh11 billion. The 11.7km Jomvu-Mombasa superhighway will be constructed along the Northern Corridor between Mombasa and Mariakani weighbridge to address traffic congestion on the Mombasa-Nairobi highway. The government wants to turn the single-two roadway into a dual carriageway with six lanes to ease transportation of cargo from the port of Mombasa to Nairobi and neighbouring countries of Uganda, Rwanda and the Democratic Republic of Congo. The superhighway is also expected to improve accessibility to businesses in Mombasa mainland west and the town as well as port activities in the county. Transport Cabinet Secretary James Macharia said the government was in negotiations with African Development Bank...