Following the ongoing upgrade of the Dar es Salaam Port by DP World, the Tanzania Revenue Authority (TRA) has been collecting an average of 1tri/- per month since September this year, compared to 850bn/- during the corresponding period before the private investor took over operations.
Government Chief Spokesperson and the Permanent Secretary for the Ministry of Information, Culture, Arts and Sports Mr Gerson Msigwa unveiled the remarkable progress on Thursday in a press conference, underlining the DP World commitment to advancing efficiency through, among others, installation of modern cargo handling equipment and Information Communication Technology (ICT) systems for monitoring daily operations.
He hinted that the current government’s goal is to collect 1.5tri/- per month in the near future with the long-term target being bigger than the envisioned goal.
The private investor has integrated the Tanzania Customs Integrated System (TANCIS) with the Tanzania Electronic Single Window System (TeSWS), cutting time spent by customers to unload their cargo under several fragmented electronic systems.
He said the improved efficiency, which substantially reduced the Dar es Salaam Port’s turnaround time to seven days from an average 48 days, has resulted in the unprecedented increase in revenue collection.
He said such cut in the port’s turnaround time has significantly reduced the number of ships waiting to be handled from an average of 35 vessels per month in September 2023 to 15 ships in September 2024.
“The ongoing upgrade of the Dar es Salaam Port under the investment of the DP World and alongside other companies depicts significant economic benefits including a big boost in trade while improving the investment atmosphere in the country,” Mr Msigwa said.
He added: “The increase in revenue is due to the fact that TRA has been handling immense cargo volumes within a short time frame.”
Mr Msigwa noted that in five months covering April to September, this year, the government has collected over 325bn/- in fees paid for various activities such as land rent, royalty and wharfage as per the signed concession agreement by TPA and DP World.
He also noted that within five months, the port’s operational costs have decreased by 2.7 per cent of the total revenue, compared to a 15.1 per cent increase in operational costs before the handover to DP World Dar es Salaam.
As a result, from May to November this year, the port recorded an increase in cargo volume handled to 14.4 million tonnes, a 5.6 per cent rise compared to the 13.7 million tonnes registered during the same period in 2023.
Notably, he said the number of containers increased drastically, as the port, from May to November this year, served 598,672 Twenty-Foot Equivalent Units (TEUs), a rise by 2 per cent compared to 597,613 TEUs handled in the corresponding period last year.
Standing as the Eastern and the Southern African’s gateway, he said the port, from May to November this year, has seen the transit cargo reaching 6.3 million tonnes, up by 19.3 per cent from 5.3 million tonnes handled in the corresponding period in 2023.
On October 22, 2023, the Tanzania Revenue Authority (TPA) signed a 30-year concession agreement with the DP World (now DP World Dar es Salaam) to upgrade the Dar es Salaam Port with the objective of easing cargo handling.
The concession to modernise was awarded to DP World with the primary objective of optimising the port’s operations by improving transport and logistics services.
The DP World Dar es Salaam officially started operation on April 25, 2024 running berths four to seven of the port and have user rights for berths zero to three.
Mr Msigwa said the private investor continues to operate the port in line with the signed contract and it is committed to bringing the desired outcomes.
He cited that financially the company already has injected over 214bn/- which is 31 per cent of the total 675bn/- required to be invested, including installation of new latest equipment and renovation of those used by TPA in next five years.
Overall, he said the government has, apart from continuing to upgrade the Dar es Salaam Port, continued to do the same with other ports including the Mtwara and Tanga ports, a measure that enables the country to keep on attracting more ships.
He said for all ports combined, the cargo handled, from May to November this year, reached 16.5 million tonnes, an increase of about 6 per cent from 15.6 million tonnes served in the corresponding period last year.
According to the government, all ports, from May to November this year, served 621,584 Twenty-foot Equivalent Units (TEUs), a rise by 3.29 per cent compared to 601,805 TEUs handled in the corresponding period last year.
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