Kenya stands to benefit from plans by Tanzania’s parliament to terminate a bilateral Single Customs Territor deal with DR Congo.
The Tanzania Parliamentary Standing Committee on infrastructure development advised the government to revisit the introduction of SCT on goods transported to DR Congo.
According to the committee, the SCT which started last year has reduced cargo through the Dar es Salaam port.
Under the arrangement the two countries adopted a destination model of clearance of goods where assessment and revenue collection is done at the first point of entry.
The system has caused importers to abandon the Dar es Salaam port and opt for ports of neighbouring countries, Tanzania-Zambia Railway Authority (Tazara) committee deputy chairman Selemani Kakoso told the parliamentary committee last Monday.
Tazara targeted to transport 200,000 tonnes of cargo in 2015/16 but managed only 128,105 tonnes, it said.
KPA principal communication officer Hajj Masemo said Kenya is way ahead of the port of Dar es Salaam on effectiveness which has attracted regional players.
“We are doing a lot of efficiency compared to Tanzania,” Hajj told the Star.
In April, the Tanzania business community reported rising use of the Port of Mombasa, citing bureaucracies at Dar-es-Salaam port.
The Kenya International Freight and Warehousing Association confirmed increased clearing of cargo destined for Tanzania.
“The new systems in place have made importing through Mombasa faster and better,” Kifwa Mombasa region chairman Eric Gitonga said.
The port of Mombasa is also riding on low transport costs along the Northern Corridor.
The East Africa Logistics Survey 2015 shows the average cost of transporting a 40-foot container from Mombasa to Nairobi dropped to$1,000 (Sh101,361) last year from an average $ 1,300 (Sh131,769) in 2014, making it the most efficient route in the East and Central Africa.
Transport cost from Mombasa to Kampala came down to $2,500(Sh253,403) from $3,400(Sh344,629) over the same period.
Data by the Shippers Council of East Africa shows the cost of transport from Dar es Salaam to Kampala have increased from $2,507(Sh254,113) in 2011 to $4,500(Sh456,126) in 2015.
In 2015, DR Congo was third biggest destination for transit cargo through the Port of Mombasa with a six per cent share.
This translates to 462,000 tonnes of the total 7.7 million tonnes imported to the hinterland through the Port of Mombasa.
Source: The Star

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