The move to use Tanga Port to offload Petroleum product imports under the Bulk Procurement System (BPS) has been commended by the key stakeholders in the oil sector as well as the general public.

We are told that using Tanga Port to offload imported petroleum products would reduce costs of fuel and boost the region’s economy, making it more vibrant as opposed to the current situation.

Statistics show that Tanga Port is the second largest port after Dar es Salaam, with the capacity of handling 750,000 metric tonnes of cargo per year. Last year alone, Dar es Salaam Port handled 14.6m metric tonnes while Tanga Port handled 579,000 metric tonnes.

Also using the port as a second discharging point for imported petroleum products will help decongest the Dar es Salaam Port and reduce delays for ships to dock before they are offloaded from the current two days to zero to make it more efficient.

Similarly, dependency on one main Port of Dar es Salaam is risky, considering the security of supplies of petroleum products for the country.

In case of a problem it would be easy to control any risk with alternative ports in the country.

Furthermore, the use of alternative ports in the country will increase the efficiency of the Dar es Salaam Port, which is competing with other major ports in Africa such as the Mombasa Port in Kenya, ports of Richards Bay and Durban in South Africa, the Port of Beira in Mozambique and Walvis Bay in Namibia.

Industry analysts have welcomed the government move to use Tanga port as a way of spreading the risks in case problems arise at the Dar es Salaam port’s Single Point Mooring (SPM).

Some of the key stakeholders who have commended the move include Tanzania Sisi Nyumbani (TSN), GBP Company and GAPCO.

The great interest shown by these companies is a clear indication that more oil firms will use Tanga port. It is seen as positive move that will revive the ancient days of Tanga Region that was among the top contributors of revenue to the national coffer.

By making Tanga port more vibrant, it will stimulate other sectors of the economy to create new employments.

Likewise, investors in the oil sector have always been seeking to cut down the cost of doing business at the time for which the use of the main port in Dar es Salaam has, sometimes leading to the increase of demurrage costs due to congestions, thus Tanga port is becoming the best option.

Experts have further underscored the need to continue diversifying and using other ports like Mtwara to handle cargo destined to the southern regions, the initiative that will spur up the economy in this part of the country.

Source: All Africa

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.