Transit time on Dar corridor improves but rates still challenging

Transit time on the Dar es Salaam Corridor has been shortened significantly, however rates on the route still need improvement.

This was the sentiment expressed during a meeting of the Southern African Railways Association by customers of the National Railways of Congo, Tanzania-Zambia Railway Authority (Tazara) and Zambia Railways Limited.

According to a statement released by Tazara yesterday (Monday), railway users commended the reduced transit time between Zambia and Tanzania, now between four and seven days, but encouraged the railways to improve further in terms of rates.

MM Integrated Steel Mills Limited (MMI), a key Dar es Salaam-based railway user, said that it had previously been forced to invest in its own fleet of trucks as it was taking more than two months for goods to reach Lusaka from Dar es Salaam.

“We have 80 trucks of our own, but we have parked them because it makes logistical sense to use Tazara now and we are happy that Tazara is delivering 3 000 tonnes on time every month,” said spokesperson for MMI, Ratish Kamania.

Additionally, users and operators welcomed the decision by the Tanzanian government to scrap VAT (value added tax) on transit goods in its national budget as the competitiveness of the Dar es Salaam Port was critical to the improvement of the corridor in general.