After MGR, Dar port now cheaper than Mombasa port

Ntaghacha

Ntaghacha

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Jul 28, 2020
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Dar port dangles cheaper cargo rates than Mombasa
THURSDAY AUGUST 06 2020

port
It costs $3.10 per kilometre per container to transport goods from the port of Mombasa (pictured) to Bujumbura, Burundi. PHOTO | LABAN WALLOGA | NMG

Summary
In 2019, transit cargo from Dar es Salaam to Uganda, Rwanda, and Burundi was at 37 percent, up from 22 percent in 2018.
On average it costs $1.80 per kilometre per container to transport goods from the port of Dar es Salaam to Bujumbura compared with $3.10 per kilometre per container from the port of Mombasa.

The turnaround of the Central Corridor has been attributed to the revival of the Central line metre gauge railway. This may have prompted Kenya Railways — after two decades of neglect — to rehabilitate the old meter-gauge railway from Nakuru to Kisumu at a cost of Ksh3.8 billion ($35 million).
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By LUKE ANAMI
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The Dar es Salaam port could attract lucrative business away from the Mombasa as the Central Corridor proves to be cheaper compared with the Northern Corridor transport route.

On average it costs $1.80 per kilometre per container to transport goods from the port of Dar es Salaam to Bujumbura compared with $3.10 per kilometre per container from the port of Mombasa.

The recently released the Central Corridor Transport Observatory 2019 report, which measures the performance of the Central Corridor, also shows that the average costs per km per container from Dar es Salaam to Kigali is $1.90 compared with $2.10 from the port of Mombasa.

Importers from Uganda, also pay less at $1.80 per km per container to transport goods from the port of Dar es Salaam compared with $1.90 per km per container charged from Mombasa, while those from Goma pay $2.60 from Dar es Salaam and $3 from Mombasa.

“The difference is huge for cargo destined to Bujumbura, with importers saving about $1.18 per km per container when importing through Dar es salaam port compared to importing through the Mombasa port,” said the CCTO report, prepared by the Central Corridor Transit Transport Facilitation Agency Secretariat in collaboration with stakeholders and support from Trademark East Africa.

Data from the report shows that in 2019, transit cargo from Dar es Salaam to Uganda, Rwanda, and Burundi was at 37 percent, up from 22 percent in 2018.

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“Reduction in road transport rates to both Bujumbura and Kampala through the Central Corridor has been attributed to the operationalisation of the Central railway line to Mwanza and Kigoma,” says the CCTO report.

The turnaround of the Central Corridor has been attributed to the revival of the Central line metre gauge railway. This may have prompted Kenya Railways — after two decades of neglect — to rehabilitate the old meter-gauge railway from Nakuru to Kisumu at a cost of Ksh3.8 billion ($35 million). The project will take between eight to 12 months to complete, according to Kenya Railways managing director Philip Mainga. The contractor is expected on-site on August 1.

The Central Corridor forms part of the backbone of the regional transportation system in East and Eastern Central Africa that serves five countries with a population of more than 120 million people.

The Central Corridor connects the port of Dar es Salaam by road, rail and inland waterways to Burundi, Rwanda, Uganda and Eastern part of the DR Congo. The Dar es Salaam port handles about 95 percent of Tanzania’s international trade.

The CCTO report says overall cargo in Dar increased with 84 percent being imports, 15 percent exports and only one percent being transshipment. Domestic cargo accounts for 63 percent of all imports while transit cargo makes up about 37 percent.

Tanzania is currently constructing a standard gauge railway from Dar es Salaam to Mwanza (1,219kms) and phase one of the project is 70 percent completed

My take,Moro-Dar SGR is 87% complete.
 
Mods,naomba mrekebishe heading iwe, After mgr rehabilitation,Dar port now is cheaper than Mombasa port.
 
Siku zote nyie mumekua cheaper ila tunawapiga double double maana mnafahamika mlivyo wazembe wa kutupwa, mnachelewesha mizigo ya watu. Hebu waza kuna wasafirishaji wanatoka Burundi, Rwanda mataifa ya mbali sana ambayo hatuchangii mipaka nao, wanakuja hadi Mombasa licha ya ada ya Mombasa kuwa juu, maana wanachoshwa na uzembe wenu.
 
MK254 said:
Siku zote nyie mumekua cheaper ila tunawapiga double double maana mnafahamika mlivyo wazembe wa kutupwa, mnachelewesha mizigo ya watu. Hebu waza kuna wasafirishaji wanatoka Burundi, Rwanda mataifa ya mbali sana ambayo hatuchangii mipaka nao, wanakuja hadi Mombasa licha ya ada ya Mombasa kuwa juu, maana wanachoshwa na uzembe wenu.
Click to expand...
Magari kibao ya Kenya yanasomba mizigo Tanga na Dar port kila leo.
 
Mombasa port handles twice what all your ports handle View attachment 1529449View attachment 1529450View attachment 1529451
Screenshot_20200807-081952.jpg


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MK254 said:
Siku zote nyie mumekua cheaper ila tunawapiga double double maana mnafahamika mlivyo wazembe wa kutupwa, mnachelewesha mizigo ya watu. Hebu waza kuna wasafirishaji wanatoka Burundi, Rwanda mataifa ya mbali sana ambayo hatuchangii mipaka nao, wanakuja hadi Mombasa licha ya ada ya Mombasa kuwa juu, maana wanachoshwa na uzembe wenu.
Click to expand...
Hii ni recent report,achana na ya zamani.
 
The cheaper cost is offset by inefficiency. Dar port is very inefficient, the workers are lazy and the infrastructure is not good. Combining that with fees levied on cargo by the GOT you get an absolute mess.
Dar has always been cheaper but the inefficiencies increase the cost of doing business through dar to spiral out of control. That is why even some Tanzanian businesses prefer mombasa over dar.
Mombasa port through efficiency has reduced the cost of doing business by 50% for those who use the northern corridor. Further reduction is coming with all the infrastructure being put up to support business, to make sure an importer in Uganda can get their products in 24hrs.
Under construction and Proposed:
i) New oil terminals under construction at mombasa port will make sure 6 oil tankers can dock at the same time
ii) New LNG terminals under construction at mombasa port will accommodate upto 4 ships
iii) Mombasa port-Nairobi-Kisumu port pipeline is ready and waiting for Uganda to finish their side
iv) Naivasha-Kisumu and Naivasha-nakuru-eldoret-Malaba MGR rehabilitation will make sure cargo gets to malaba in 24 hrs from offloading in mombasa, while waiting for sgr phase 2B(400 km) financing. which will bring the sgr from Naivasha through Kisumu to Malaba.
v) Busia-Kisumu-Homa Bay dual carriageway highway 400 km(Proposed) will provide an easy route for processed products to get to western Tanzania from Kisumu special economic zone and also provide an easy artery for Uganda to exports it's products to Tanzania.
vi)
Completed:
i) Overhaul and modernization of infrastructure at mombasa port that has reduced turn around time for ships to 24 hrs for larger panamax and post panamax ships and less than 10 hrs for smaller ships.
ii)Mombasa-Nairobi-Naivasha sgr (600 km) that currently delivers cargo in 5 hrs to Nairobi Inland container depot and 8 hrs to Naivasha Inland container depot.
iii) Mombasa bypass roads that make sure trucks are not delayed by traffic when entering and exiting Mombasa port.
iv) Nairobi-Nanyuki MGR rehabilitation has reduced time to 6 hrs for export products eg. Vinegar, Processed fruit juice,Processed vegetables, edible oils, soap etc, from Thika industrial town to get to mombasa port. Vivo now also imports the bulk of their oil for Nanyuki Oil Depot through Nairobi-Nanyuki MGR from Kenya pipeline storage in Nairobi.
v) Bypass roads around Nairobi to make sure trucks carrying cargo do not get stuck in traffic.
vi)expansion and modernization of Nairobi ICD to handle 450,000 teus which has reduced truck turn around time to 20 minutes
vii) Reduction in paper work by embracing technology which enables and importer/ exporter to file all their paper work from one portal and integrate their paper work with over 80 ports across the world.
viii) One stop clearance centres which have all relevant agencies has reduced time to get your import and export forms verified to under 20 minutes at Mombasa port, Nairobi ICD and Naivasha ICD.

efficiency is at the core of the northern corridor. with better developed infrastructure the northern corridor offers the highest efficiency of any port in sub saharan africa apart from durban in south africa.
 
I also forgot to add that Maersk and Cosco( China Ocean Shipping Company ) the largest shipping companies in the world. have formed a joint venture in Kenya dubbed Mashariki that makes Mombasa port the hub for those two shipping companies with direct trips between asia and east africa. The Asian shipping lines ASEA and JEDDX have also introduced direct trips to Mombasa Port and they are also in talks with KPA (Kenya ports Authority) to use the port as their hub in east africa . This is due to the diplomatic skills of GOK to attract investors.
This shows port business is not just about price. efficiency and diplomacy also play an important role.
 
Nchi ya watu wazembe. Port yetu moja inapakua mizigo mara dufu ya port zao zote kwa ujumla. Upuuzi mtupu. Na hata hawana aibu kujilinganisha na sisi. Saa zingine ukishindwa kubali tu kushindwa sio kuzidi kujipiga kifua. This is ridiculous.
 
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