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Karamagi replaced as TICTS board chairman
2008-05-17 09:26:33
By Guardian Reporter
Hutchison Port Holdings (HPH), a major shareholder in Tanzania International Container Terminal Services (TICTS), has replaced Nazir Karamagi as TICTS board chairman.
An HPH representative from Hong Kong, Neville Bisset, announced at a news conference on Thursday in Dar es Salaam that the holding company`s group managing director, John Meredeth, had taken over with immediate effect.
``Following a board meeting held on Thursday, 8 May, John Meredith, group managing director of Hutchison Port Holdings (HPH), would replace Nazir Karamagi as chairman of the board,`` he said.
However, Bissett clarified that the change had not affected the status of shares that Karamagi owns in the company.
He noted that, while HPH held a 70 per cent stake, the former cabinet minister and others retained the remaining 30 per cent.
On TICTS’ performance, new board chairman Meredith said he was encouraged by the strong growth achieved under the management of TICTS at Dar es Salaam, as container volumes (under twenty-foot equivalent unit) grew from 123,000 in 2000 to 344,000 last year.
``TICTS has achieved annual growth in excess of 16 per cent year-on-year basis compared with 4 per cent growth before the concession. This achievement is particularly impressive given the space constraint,`` he said.
Meredith said the company remained committed to the development of the container terminal facility, with an effort to make Dar es Salaam the most efficient port in East Africa.
``We are prepared to work with all parties to overcome any outstanding issues that TICTS faces,`` said the new board chairman.
TICTS chief executive officer David Cotty said since the start of the concession his company had improved substantially technology at the port in terms of bringing in new equipment, including cranes.
``Space remains a critical issue, and with the peak season about to start, there is a need for TICTS to have access to more container stacking space and for measures to be taken to avoid containers being kept in the port for extended periods of time,`` he said.
Karamagi, who resigned as Energy and Minerals minister in February after being linked to an emergency power generation scandal, is replaced from the board at a time when the company is grappling with growing criticism over its performance and dubious extension of its contract.
The company`s concession contract, which started in 2000 and was initially set to end in 2010, was extended to 2025, something which some authorities, including legislators have queried.
At a news conference on Thursday, Cotty said discussions over the contract extension between the company and the government were due to start in the near future.
``We welcome the discussions we are committed and open to those discussions,`` he said.
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