For Online E-newspaper
The East African : Apr 27th 2015
The EastAfrican BUSINESS APRIL 25 - MAY 1, 2015 TRANSPORT ON CENTRAL CORRIDOR $600m Dar port facelift plan gets underway The aim is to double the ca≥go volumes handled by the po≥t 2020 and e≠ectively se≥ve Tanzania’s landlocked neighbou≥s By CHRSTOPHER KIDANKA The EastAfrican T he Dar es Salaam port is set for a major facelift that is expected to help double the cargo volume it handles by 2020. The $596 million project, jointly funded by the World Bank, the UK’s Department for International Development (DfID) and TradeMark East Africa (TMEA), involves demolition of parts of the port in order to increase the working space. The reconstruction will involve deepening of berths 1-7, the dredging of the entrance channel and turning basin to allow bigger vessels to dock. The World Bank is contributing $400 million as a loan under the Dar es Salaam Maritime Gateway Project (DMGP) while DfID is giving $136 million in a grant. The remaining $60 million will come from TMEA. Once completed, the project will see the Dar Port handle 28 million tonnes by 2020, from the 14.6 million tonnes it handled in 2013/14. Sheds 2 and 3 will be demolished to create an additional 22 square metres of working space. Permanent Secretary in the Ministry of Transport Dr Shaaban Mwinjaka recently launched the project. Speaking at the launch, World Bank senior operations officer Monthe Bienvenu Biyoudi said the Bank will approve the $400 loan in December. He said it will also finance additional work on three access roads — Kilwa, Nyerere and Mandela — and the new southern bypass from the port round to the Julius Nyerere International Airport and then to Kibaha suburb on the way to the Tanzania hinterland. According to David Stanton, TMEA director-general, the first phase, to be funded by his organisation, will involve demolition and relocation of sheds 2-7, and upgrading of the roads that lead to gates 4, 5 and 8 as well as installing new scanners for gates 4 and 8 in a bid to ensure better traffic flow and an integrated security system. Modernising berths The second phase, to be financed by the World Bank and DfID, will include dredging the channel and basin as well as modernising berths 1-7. Rwanda, Burundi and the Dem- ocratic Republic of Congo have agreed to use the Dar es Salaam port as their preferred port once the central railway is upgraded from the current metre gauge to standard gauge to ease transportation of goods through the Central Corridor. “This project is timely and shall be completed in time. The Tanzanian government is committed to making it a reality,” Dr Mwinjaka said at the launch. In March, the TPA management pledged to modernise the port to effectively serve East, Central and THE OTHER PORT PROJECT A section of the Dar es Salaam port. Picture: File Tanzania is also planning an $11 billion project to construct a port at Bagamoyo. Funding by China Merchant Holding International has been joined by the Omani sovereign wealth fund, the State General Reserve Fund. The Bagamoyo port is located just 75km from Dar es Salaam port Southern Africa. In 2014, 630,000 tonnes of car- go destined for Rwanda passed through the Dar es Salaam port. Another 1.5 million tonnes of cargo destined for the DRC also — which currently handles 90 per cent of the country’s cargo to the hinterland — which has been growing at 12 per cent in the past three years, according to data from the Tanzania Ports Authority (TPA). Plans to construct a gas pipeline to Dar es Salaam are underway. passed through the port. The Dar es Salaam port serves seven neighbouring countries — DRC, Zambia, Uganda, Rwanda, Burundi, Malawi and Zimbabwe. P≥oposed co≥≥ido≥ gets $27b pledge f≥om PE fi≥m By ROSEMARY MIRONDO Special Correspondent PRIVATE EQUITY firm Brookwoods Capital has expressed interest in investing Tsh53 trillion ($27 billion) in the construction the Mwambani Port and Railway Corridor (Mwaporc) in Tanga, Tanzania, one of the largest development corridors in the region. The project includes a deep sea port, a free port and a heavy-haul standard gauge railway that will link Tanzania with Uganda and the Democratic Republic of Congo. A free port is an export processing zone (EPZ) in a port, where imported goods can be held or processed duty-free before being re-exported. The East African Community Secretariat has supported the project , which will now be integrated into the region’s infrastructure master plan. Mwaporc co-director Cuthbert Tenga said that they are in negotiations with the Ministry of Transport to sign the project agreement for works to start. “We have received support from East and Central African countries and once the government of Tanzania signs the agreement, it will be used as a module by the other countries,” he said. He said that the negotiations with the minis- try started last year and they are hopeful that they will seal the deal soon. The construction of the deep-sea port is ex- pected to allow direct shipping from international ports, which is ultimately expected to cut the cost of logistics for exporters and importers. “We have received support from the East and Central African countries.” Cuthbert Tenga, Mwaporc co-director According to Mr Tenga, the free port will be constructed adjacent to the new deep-sea port, and is expected to host manufacturing, logistics and other service industries. Steel manufacturing Key anchor activities will include an integrat- ed iron and steel manufacturing cluster. He said that so far, only the government of Burundi has signed the memorandum of understanding with Mwaporc. “The DRC and Uganda governments have, however, committed their support for the project,” he added. The country’s National Social Security Fund and the National Housing Corporation have also shown interest in the project. Mr Tenga said that they were also in talks with the Dar es Salaam Stock Exchange to sell their shares to the public. 45 Coming soon to Bugala: Wate≥, powe≥, hassle-f≥ee t≥anspo≥t By ISAAC KHISA The EastAfrican A MULTIMILLION-DOLLAR infrastructure project on Bugala Island in the Ugandan portion of Lake Victoria, comprising roads, marine transport, power and clean water supply will be completed in May, officials have said. Kalangala Infrastructure Serv- ices (KIS), the firm developing the $50 million project in a joint venture with the Ugandan government, has completed the construction of a solar hybrid power station and marine transport facility and residents of the region are already accessing the services. The clean water supply project and the 66km road on the island will be completed in May, said John Opiro, KIS managing director. Mr Opiro said two ferries, MV Pearl and MV Ssese, with a capacity of 20 vehicles and 206 passengers each, are now fully operational between Bukakata and Luuku, whereas at least 2,000 users have received power connections. Largest island Initially, travellers to Bugala Island — the largest of the 84 islands that form Ssese Islands in the northwestern part of Lake Victoria with a population of 32,000 — used MV Kalangala from Nakiwogo landing site in Entebbe. The Kalangala Town Council supplied 485KW of thermal power to the nearby residents. The KIS project is financed through equity and debt from InfraCo, Nedbank from South Africa, the Uganda Development Corporation and Emerging Africa Infrastructure Fund. The United States Agency for International Development (USAid), the UK’s Department for International Development (DfID), and Guarant Company are the other financiers of the project. According to KIS and govern- ment agreements on the project, the road and ferry services will be offered to the users for free for 15 years but residents will pay monthly charges for water and electricity. Water and power tariffs will be regulated by the Directorate of Water Resources and the Electricity Regulatory Authority respectively. Works Minister John Byabag- ambi said the new services will lower the costs of doing business, increase productivity, and attract private investment on the island. “We believe that these infra- structure developments will encourage private investors, tourism, and general improvement of the people’s standards of living on this Island,” Mr Byabagambi said.
Apr 19th 2015
May 3rd 2015