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Inefficiency at Dar port threatens key economic...
2006-02-17 07:09:58
By Brian Chipoyera and Pastory Nguvu
Tanzania’s transport and manufacturing sectors could grind to a halt unless the problem of offloading fuel at the Dar es Salaam Harbour is addressed, the Tanzania Association of Oil Marketing Companies warned yesterday.
Speaking at a news conference in Dar es Salaam, the association’s chairman, Vaughan Gibson, described the situation at the Kurasini Oil Jet (KOJ) as ’’extremely bad’’ and warned that a fire accident at the port is a potential disaster to the economy.
He said the problem has been exacerbated by delays in offloading fuel, which translated into extra costs to end- users.
’’The situation at KOJ is just too bad to say the least. If there were to be a fire there, then the country would come to a stand still because there would be no way of bringing fuel into the country as it would take sometime to repair the damage. The government should address the issue as a matter of urgency.
’’The problems of flow metres, which need to be repaired by installing air eliminators must also be addressed.
Despite the association’s appeal to the Tanzania Port Authority to solve this problem, nothing has been done to date,’’ he said, adding that more than 80 per cent of the country’s fuel is imported through KOJ.
He also urged the Tanzania Port Authority to install flow meters at other ports.
He said Tanzania’s positive growth rate over the past few years had resulted in congestion at KOJ and the slowing down of the pumping rate had worsened the situation.
As a result, ships were now queuing for several days, demanding 35,000/- per day in demurrage costs.
The country was losing out unnecessarily as the demurrage is paid in foreign currency, forcing the oil companies to pass the extra cost to consumers.
He urged the Tanzania Port Authority to copy the booking system used by other ports such as Mombasa in Kenya, which he said had made it more efficient.
Gibson also urged the government to address the issue of tax evasion by some oil dealers. He said Customs duty revenue last year dropped to 57.9bn/- from 58.2bn/- in the previous year, despite the economy growing by between 6 and 7 per cent.
In normal circumstances, he said, this should have translated into more revenue for the government.
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