(4 Minutes Read)
The project is aimed at creating new infrastructure in the port for handling oil tankers and bringing down port congestion that can lead to importers paying up demurrages
Two Chinese firms have been awarded the contract to construct tanks and associated infrastructure for the receiving, storage, and distribution of petroleum and energy products at the Dar es Salaam Port. The project is aimed at creating new infrastructure in the port for handling oil tankers and bringing down port congestion that can lead to importers paying up demurrages.
The Sh678.6 billion project is to be executed by M/S China Railway Major Bridge Engineering Group Co Ltd and M/S Wuhan Engineering Co Ltd. It will involve the construction of 15 tanks that will store 420,000 cubic meters of petroleum products. Giving details of the project, Tanzanian Minister for Transport Prof. Makame Mbarawa said that the project that started some 10 years ago would be completed in two years.
The Chinese company will build 15 tanks, and each will have the capacity to handle 30,000 cubic meters of petroleum products. Six tanks will be designated for diesel storage, five for petrol, three for jet fuel, and one for the interface process.
The tanks will markedly diminish the duration ships spend offloading petroleum products at the port, thereby reducing demurrage charges.
Ships carrying petroleum products take an average of 11 to 12 days to unload the consignment, which may cost up to USD 25,000 per day as demurrage charges.
These facilities will increase government revenue control by sealing tax evasion loopholes and simplifying the collection of income from oil products entering the country. The oil tanks to be constructed by TPA will ensure the government maintains sufficient oil reserves. Currently, the country’s storage capacity for oil stands at a mere 15 days. And this capacity is owned by private oil companies.
Of late, Tanzania has been implementing various projects to enhance the port facilities to attract more cargo destined and coming from Uganda, Rwanda, and Sudan neighbouring landlocked countries. There is a keen competition between Kenya and Tanzania in this regard.
Cargo volumes at Mombasa and Dar es Salaam ports have grown amid intensified competition. Mombasa is touting its efficiency while Dar is offering what it describes as favourable terms. Tanzania recently announced the completion of the US$420 million Dar es Salaam Maritime Gateway Project (DMGP) and plans to expand its maritime infrastructure as it opened storage for cargo destined for four East African Community (EAC) states.
Read Also:
https://trendsnafrica.com/philip-morris-to-re-start-buying-tobacco-from-tanzania/
Kenya charges up to USD 1,200 more per 40-foot container passing through the port of Mombasa. But the attractive package offered by the Dar port has seen it grapple with efficiency challenges, prompting the management to mull diverting cargo to the Bagamoyo Port. Tanzania Ports Authority (TPA) Director-General Plasduce Mbossa said they planned the construction of six new berths in Dar and Baga.
