Shorter transit to Uganda will be costly

Using the new road being touted by the Tanzanian port of Dar es Salaam to cut the time to and from Kampala in Uganda to a four-day transit is going to cost you, according to Keith Blond, director of Impson Logistics. This follows a report in our electronic sister publication, Cargo Info News, that the East African ports of Dar es Salaam and Mombasa were vying for greater cargo volumes originating from and destined for Africa’s interior, particularly Uganda. The Tanzania Ports Authority (TPA) marketing director, Flavian Kinunda, had been quoted as saying that the authority – which owns Dar es Salaam – was launching a container terminal concession programme targeting the Ugandan market. “The 1 800-kilometre route from Dar es Salaam to Kampala via Mutukula has been upgraded to tarmac – and transit days have fallen from 29 days to four days,” he said. Kinunda added that the corridor was now an effective alternative to the Mombasa transit – while also accusing Kenya’s main port of serious congestion. However, this boast from TPA was challenged by Blond, who sent an e-mail to “readers’ comment” in Cargo Info, questioning the comparative cost of the new road. FTW did not have this information, and could only advise Blond to contact his East African sources. This he did, and reported back to FTW. “As I suspected,” he said, “the tar road from Dar comes at a price. “If one looks at the comparison for hauling a 40-foot (12-metre) container it will cost you US$3 800 (R27 056) for a 27-tonne, 40-footer from Mombasa to Kampala. “From Dar, however, it will knock you for US$5 000 (R35 600) for the same box to Kampala.” That US$1 200 (R8 544) cost differential is more than enough to negate any time saving, in Blond’s reckoning. “There is also a rail alternative from Mombasa,” he told FTW, “although I’ve always felt that road was safer and more reliable – and have always used this port for shipments into that part of East Africa. “However, if Mombasa gets completely glutted, this new route from Dar could always be a viable alternative if transit time was critical.” Another factor weighing in Mombasa’s favour , Blond added, was that the Kenya Ports Authority (KPA) officials aim to expand the port’s container facilities. This capacity boost was confirmed by a Shipping Gazette report that said that October marked the opening of a new facility developed by SDV Transami, an operating unit of the Bollore Africa Logistics Group (BAL). An estimated US$8-million (equivalent of just under R57-m) has been invested in the facility, according to BAL’s regional director for the East African zone, Tony Stenning. “Kenya is strategically placed in the East African region and with the economy growing fast, the volume of trade is expected to increase, which could lead to congestion if facilities like these are not constructed,” he said.