PORT service stakeholders have described the decision by Tanzania International Container Terminal Services (TICTS) to apply for tariff reviews as not welcoming.

Speaking during a stakeholders meeting to share views, organised by the Surface and Marine Transport Regulatory Authority (SUMATRA), Tanzania Truck Owners Association, CEO, Mr Elitunu Mallamia said the decision is cause for concern.

Mr Mallamia said news of the application is worrying to truckers as they handle 98 per cent of the cargo that passes through the Port and that raising tariffs by 30 per cent will encourage truckers to divert to other ports.

“We feel that the 30 per cent increase does not match the services offered. When people hear of the intended tariff reviews, the first question that will come to mind will surely be, what added value will one be getting?” He queried.

SUMATRA Consumer Consultative Council, Executive Secretary, Dr Oscar Kikoyo, said that the Council feels that before an application is tendered TICTS should present evidence of improved services.

Dr Kikoyo said that the council does not feel that the review is justifiable. “The investment of modern equipment in our view is not reason enough to warrant a review of tariffs. We feel an increment should be gradual and port services should be competitive against neighbouring ports,” he said.

Tanzania Freight Forwarders Association, President, Mr Stephen Ngatunga, said he is totally against the review as it will automatically increase operational costs. Mr Ngatunga said that instead of increasing tariffs TICTS should reinvest with the profits they have made over the years.

Talking about SUMATRA, he said that the Authority should not sympathise with only one side, adding that since the establishment of Inland Container Depots, freight forwarders have been left as orphans without assistance.

Tanzania Association of Port Services Operators (TAPSO) Chairman, Mr Fadhili Mganga, said his Association supports the review as it believes there will be better working conditions for operators.

TICTS’ CEO, Mr Paul Wallace, exclusively told the ‘Sunday News’ that the intended tariff increase is on the grounds of purchasing modern equipment for civil works and communication.

Mr Wallace said the company plans to invest at least 30bn/- this year for facility expansion, including the purchase of two cranes to cope with the increasing cargo at the Port of Dar es Salaam.

“The biggest hurdle is the increasing number of containers and to cope with the changing business environment, we are continuing to invest in infrastructure,” said Mr Wallace.

He said the facility is currently handling around 500,000 containers annually and the number has been growing at 10 per cent annually.

The company is owned by Hutchison Port Holdings by 55 per cent and handles 75 per cent of Tanzania’s imports and exports. Mr Wallace said they will invest between US $300 million and US $400 million over the next five years.

Source: Daily News

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