The Tanzania Ports Authority (TPA) has called upon the Ugandan government to collaborate in streamlining cargo movement through the central corridor, aiming to create a more efficient and seamless bilateral trade environment. This call comes amidst concerns about bottlenecks and logistical challenges hampering trade volumes between the two East African nations.
During a recent sectoral meeting in Kampala, representatives from both countries acknowledged the steady growth in trade between Uganda and Tanzania, with agricultural and manufactured goods forming the bulk of the traffic traversing the multimodal central corridor.
However, Deputy Director General of the TPA, Juma Kijavara, highlighted a worrying decline in trade volumes due to logistical and transportation hurdles.
“In the 2022/2023 financial year, Uganda’s cargo contributed only 2% of the 1 trillion Tanzanian shillings earned through Dar es Salaam ports,” Kijavara stated, emphasizing the need for Ugandan businesses to utilize Tanzanian ports more actively.
“We have increased the days for keeping Ugandan goods and services at our ports so we encourage Uganda to use Tanzania ports to trade,” he added.
To address the issues raised and facilitate smoother cargo movement, the Managing Director of Uganda Railway Corporation, David Bulega Musoke, emphasized the importance of completing the meter gauge railway upgrade. This modernization project, according to Musoke, will significantly benefit Ugandan importers and exporters.
Furthermore, efforts are underway to revive Port Bell, a former gateway to regional trade and the backbone of commerce within the eastern region.
“We are upgrading the port bell facilities and buying more modern equipment to facilitate loading of marine vessels to facilitate offloading of goods from Mwanza,” Bulega said.
The port, once bustling with ferries like MV Kabalega, Kaaawa, and Pamba, generating 1.3 billion shillings in monthly revenue, has seen its activity and earnings plummet since the vessels ceased operation.
However, there are signs of hope. Waiswa Bageya, the Permanent Secretary at the Ministry of Works and Transport, announced plans to refurbish MV Kaaawa and introduce two additional vessels to revitalize cargo transport through Port Bell. Additionally, initiatives like the Mutukula-Masaka road construction are being undertaken to further reduce the cost of doing business.
The TPA, in turn, expects Uganda to harmonize and integrate its logistics processes and systems across all stakeholders so as to streamline trade flows and maximize utilization of Tanzanian ports like Dar es Salaam, Tanga, Kigoma, and Mwanza for Ugandan cargo.
