Why Ugandan Importers Avoid Dar Port

Don YF

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Why Ugandan importers avoid Dar port
thecitizen.co.tz Oct 2, 2018 12:54 PM
In Summary
Ugandan traders say it was stll cheaper to import goods through Mombasa port in Kenya and challenged authorities in Dar es Salaam to address the matter of higher port charges if they were to woo them to do business there.

Kampala. High transportation costs are the overriding reason Ugandan importers prefer Mombasa Port to Dar es Salaam, according to a Ugandan logistics firm.

For instance, the cost of transporting one container from Dar es Salaam Port to Kampala is around $4,800 (Sh10.6 million) compared to $2,700 (Sh6 million) from Mombasa.

“Tanzania Ports Authority still needs to do much more in order to win our market”, Ms Jennifer Mwijukye, CEO and managing director of Kampala-based UniFreight, said here yesterday.

She told journalists currently visiting selected projects in East African Community (EAC) member countries that Tanzanian ports were also disadvantaged by the distance to Uganda. While Dar es Salaam Port is about 1,600 kilometres from Kampala, where most of the Ugandan imports are destined, Mombasa is 1,200 kilometres away .

Ms Mwijukye said imports through Tanzanian ports would pick up once “major improvements” were done in clearing goods at the shortest time possible at Dar es Salaam Port.

“The cost of transporting goods from Dar es Salaam remains high,” she said, noting that it would take time for Ugandan imports through Tanzania to surpass those passing through Kenya.

Ms Mwijukye acknowledged recent efforts made by TPA to win over Ugandan importers, including the opening of an office in Kampala.

She said, however, that more needs to be done to lower transportation costs and reduce the time it takes to clear imports.

The pendulum may nevertheless swing in Dar es Salaam’s favour upon the completion of the standard gauge railway between Dar es Salaam and Mwanza, which is expected to slash the cost of transporting goods between the two destinations.

Also, two inland ports in Uganda are in the process of being upgraded through the support of the European Union and Germany.

Mr Rishi Vadodaria, managing director of Kampala-based Rene Pharmacy Limited, decried the high cost incurred by drugs makers in transporting raw materials. He said it was cheaper to transport chemicals and spare parts for their plants from India through Mombasa or Dar es Salaam than transporting them directly to landlocked countries.

But transport experts have attributed this reliance on costly overland transportation on the high cost of fuel and vehicle maintenance and regulatory costs imposed by governments in the region.
 
SGR iko hewani.

Soon Kampala inakuja Dar.

Ni suala la muda tu.
 
What many kenyans dont understand is that TZ has Zambia, Congo, zimbabwe, Uganda, Rwanda, Burundi as captive market for its ports.
Once the infrastructure is up and running there will be no competition with Tz
 
Hizo gharama siyo sahihi.. wakenya mnapenda sana umama. Mbona hamjaongelea kuhusu central corridor kufufuliwa na mizigo kuanza kupita! As per now its cheaper and efficient kupitisha mzigo Dar kuliko Nai, wa UG kibao wamenza kuitumia bandari ya Dar
 
What many kenyans dont understand is that TZ has Zambia, Congo, zimbabwe, Uganda, Rwanda, Burundi as captive market for its ports.
Once the infrastructure is up and running there will be no competition with Tz
They have had those markets since independence! nothing has changed
 
What many kenyans dont understand is that TZ has Zambia, Congo, zimbabwe, Uganda, Rwanda, Burundi as captive market for its ports.
Once the infrastructure is up and running there will be no competition with Tz
I thought Zambia was China? u contradict ur self on a daily.. butwhat do you expect from a silly Tanzanian 😕
 
What many kenyans dont understand is that TZ has Zambia, Congo, zimbabwe, Uganda, Rwanda, Burundi as captive market for its ports.
Once the infrastructure is up and running there will be no competition with Tz

So the same Zambia you said was China is now what you have as an export market. Go to school to learn Good manners.
 
Dar Corridor Group ni nn pale bandarin? Naomba anayejua aniambie. Smahan lkn
 
So the same Zambia you said was China is now what you have as an export market. Go to school to learn Good manners.
Port business not exports boss..Tanzania has a large landlocked clientele that they can milk if they upgrade their infrastructure.
NB: Zambia is officially a slave of China and will import everything from china going forward..Good business for Dar and Bagamoyo
 
Take that to the chirping birds
 
why is Mombasa 3 times busier/..what you dont know Northern Tanzania uses Mombasa
Tz was never serious with Business or development for a very long time..They were held back by corrupt CCM leaders just like Moi and his Kanu slowed down kenya for 24 years..If these 2 years of JPM are anything to go by and as long as Satanic Jubilee is in power...EAC will have a new Elephant
 
Corruption right now is greater than Mois era so bring on another excuse
 
Corruption right now is greater than Mois era so bring on another excuse
So you are proud of corruption?
Tell me: which part of the economy is growing?
Tourism? No- Everything is shifting to Tz and revenues are maxed out at $1.2bn
Coffee? No- the production is now 40% of the heydays of 1980's
Hoticulture? No- The decision to upgrade kenya to MIC came with steep EU trade tarrifs. Sher karuturi closed, Oserian flower farm declined.
Finance and banking? No- Rate cap has killed the industry
Mining? No- Nothing significant.
Current Growth is fueled by public spending on infrastructure using borrowed money..This is Not Growth its Just Leverage for which paying back is now hurting poor kenyans with hiked taxes
 
Continue building castles in the air
 
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