Players in the shipping industry have welcomed the envisaged National Shipping Agencies Corporation (NASAC), which they believe, will play a crucial role to improve efficiency, reduce costs and curb cheating by some unscrupulous ship liners.
Speaking in separate interviews with ‘Daily News’, some stakeholders accused ship owners of operating own in-house agencies, contrary to the law, expressing hopes that NASAC, as industry regulator, will address the malpractices.
The Shipping Agency Act restricts ownership of shipping agents to 51 per cent by Tanzanians but many multinational shipping lines have established their own agencies, elbowing out local players from the lucrative industry.
The Minister for Works, Transport and Communication, Prof Makame Mbarawa, on September 15, this year tabled for first reading in the National Assembly, the National Shipping Agencies Bill 2017, which seeks to establish the industry regulator.
The bill proposes transfer of all maritime regulatory functions from the Surface and Marine Transport Regulatory Authority (SUMATRA) to the new watchdog.
Speaking to this newspaper yesterday, Prof Mbarawa explained that NASAC, formerly known as National Shipping Agency Corporation (NASACO), will act as regulator for the shipping industry and conduct business as an agent but only for mining consignments.
“NASAC will act as an agent for all mining shipments and this aims at curbing cheating in the industry.
The regulator is on the other hand designed to create fair competition in the industry,” the minister explained in a telephone interview. Former Secretary General of Tanzania Shipping Agents Association (TASAA), Mr Peter Kirigini, raised concerns over the industry failure to benefit indigenous Tanzanians over ten years since it was liberalised.
“Most liners have their own agencies with offices in Tanzania but their operations are overseen from abroad,” Mr Kirigini, who is an expert in the industry revealed.
The Secretary General of Tanzania Freight Forwarders Association (TAFFA), Mr Tony Swai, said the establishment of the regulator was long overdue.
“NASAC should have been formed long time ago, many ship liners are operating in a cartel, leading to higher charges for handling shipments at the port,” he observed.
Adding; “The government is investing heavily to improve the Dar es Salaam port and as such there should be efficiency to make return of the investment.”
For many years, many stakeholders, including the Tanzania Seafarers Community (TSC) have reiterated the need for re-establishing the national shipping agency corporation to oversee what is being shipped in and outside the country.
Daily News
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