Plan to raise Dar es Salaam port user charges by over 30 pc opposed

Port user charges at the Dar es Salaam Port will go up by over 30 per cent should a new tariff proposal be approved by the authorities.

The International Container Terminal Services (Ticts) has filed an application for higher charge on port users, raising concern that the new tariff could undermine competitiveness of the port.

Ticts is applying for a 31 per cent increase in loading and unloading a 20 and 40-foot container in a ship (stevedoring) and 32 per cent increase in handling the same containers at the terminal.

But some stakeholders say if accepted, shipping lines will pass the cost on to the end users. The decision whether or not to grant the application now lies with the Surface and Marine Transport Regulatory Authority (Sumatra) that has the power to determine the tariff.

Currently, stevedoring charges for a 20 and 40-foot full container load (FCL) intended for domestic use stands at $71 and $107 respectively and Ticts is proposing to increase the rate to $93 and $140.

The rate for handling the 20 and 40-foot domestic container now stands at $79 and $119 respectively but Ticts is proposing an increment to $104 for a 20 feet container and $157 for handling a 40-foot container.

Ticts was reluctant to share more information on the new tariff plan, with the firm’s marketing manager, Mr John Masasi, referring all the queries to Sumatra.

Sumatra officials were not immediately ready to comment on the matter, with its senior public relations officer, David Mziray, asking The Citizen to speak to a junior officer who was not available.

Recently, railway stakeholders accused Sumatra of treating tariff proposals as secret and allegedly siding with applicants. On the Ticts plan, Tanzania Shipping Agents Association (Tasaa) said t it was unwarranted and if accepted would increase the cost of doing business and make traders opt to use other ports.

“It is true that the tariff has remained unchanged for many years, but the shipping lines have been suffering heavy losses due to poor productivity and longer waiting time,” said Tasaa chairman Peter Kirigini. He said Ticts argument to increase fees because they want to purchase new and modern equipment cannot be accepted.

“We were not allowed to charge congestion surcharges by Sumatra, making lines absorb the cost,” he said.

The official said Ticts has benefited too substantially from an increase in trade volume over the years to warrant a new port user fees. Currently, Ticts handles 80 per cent of all containers passing through the Dar es Salaam Port. Figures show the volumes have been growing by 10 per cent each year.

“Ticts should re-invest part of their profit rather than increasing tariff,” he said.

On the other hand, Container Freight Stations, Inland Container Depots and Dry Ports Association of Tanzania (Cidat) chairman Ashraf Khan has rejected the move to increase tariff saying it would make the port more expensive and uncompetitive.

“I am surprised to see the Tanzania Ports Authority and the government entertaining applications like this. It would kill the port.”

He said for example that Ticts is seeking to charge $500 as fee to transfer a 40 feet container from his terminal to its Ubungo ICD.

“I am worried to see the government accepting such a request while other ICDs across the country are transporting containers from the port free of charge.”