Value Added Tax (VAT) removal on transit cargo has fuelled the increase of a number of containers handled at the port by 35.5 per cent, last year. The government in 2016/17 budget scraped off VAT on transit goods, hence increased transit traffic.
Tanzania International Container Terminal Services (TICTS) said the containers handled by its unit climbed to 501,690 twenty equivalent units (TEUs) in 2017. TICTS attributed the increase to the government initiative to scrap-off VAT on transit goods ancillary services.
Chief Executive Officer, Mr Jared Zerbe, said the transit bound cargo has increased by more than 35.5 per cent, last year, in comparison to previous year. Also to bring service closer to its customers, TICTS opened a regional office in Rwanda to market the port in that area.
The CEO said last year the company also enabled to increase its market share, especially for customers from Rwanda, Zambia and Uganda. The firm also faces some challenges including transit cargo dwelling time that led to decrease terminal storage capacity.
Mr Zerbe appealed to customers to speed up the process of clearing the cargo. “We appeal to all our customers to expedite clearance of their cargo immediately,” Mr Zerbe said. The company is currently working with government authorities to look for alternative storage areas.
TICTS is the largest container terminal in the country and handles more than 75 per cent of Tanzania’s trade and serves as a vital part of the supply chain in and outside. The terminal last August set a new monthly throughput record by handling 48,158 TEUs–a nearly 5.0 per cent increase from the previous record of 46,080 TEUs set in December 2015.
The increase was tied to a rise in export transit traffic originating in East Africa’s landlocked countries.
Daily News
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