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Mtwara port is one of the three major ports managed
by Tanzania Harbours Authority. Others are Dar es Salaam and Tanga.
The deep water port at Mtwara was built between 1948 and 1954. Development of the deep
water port was accompanied by railway construction from Mtwara and Nachingwea. With the
failure of the groundnut scheme, the railway line fell into disuse and is now defunct. The
port however, continues to function but is underutilized.
Port Chacteristics
The deep water quay is dredged to -9.8 metres chart datum. There are no tidal restrictions
for vessels entering and leaving the harbour, but there is an enforcement length
restriction of 175 metres due to the shape of the channel, particularly the MSEMO SPIT
area.
A sheltered anchorage exists in the inner bay (basin) with good holding ground of –20
metres. The basin can accommodate six vessels of 175 metres. The number of vessels can be
increased if numerous shoal patches are removed.
Port Facilities:
Quay Wall:
The port has a quay wall of 385 metres which can accommodate two ships and one coastal
vessel at a time. The draught is 9.85 metres and with the introduction of new and more
reliable solar powered navigational aids, the port will be accessible to ships during 24
hours.
Equipment:
Cargo handling equipment include 3 mobile cranes of 25 tonnes, 15 tonnes and 4 tonnes; 4
tractors, 18 trailers, 8 forklifts and 1 front loader of 7.5 tonnes which can be upgraded
to 15 tonnes. Marine crafts available at the port are 1 pilot boat and 1 mooring boat. The
port does not have specialized equipment for handling container traffic because the volume
at present does not justify such investmen
Storage
There are four (4) transit sheds with a total storage capacity of about 15,000 tons.
Present Capacity:
Mtwara port can handle 400,000 metric tonnes of imports and exports per annum. The port is
mainly designed to handle conventional cargo.
Upgraded Capacity:
The port of Mtwara can handle up to 750,000 MT with the same number of berths if
additional equipment are put in place for handling containerised traffic.
Current Traffic Performance:
The average annual cargo throughput at Mtwara port for the past 5 years is 100,000 MT
which is only 25% of its capacity of 400,000 MT. The annual figures are shown in the table
below:
| |
DWT |
| Year |
Imports |
Exports |
Total |
| 1992/3 |
39,325 |
56,634 |
95,959 |
| 1993/4 |
47,345 |
47,790 |
95,135 |
| 1994/5 |
37,000 |
57,926 |
94,926 |
| 1995/6 |
40,279 |
67,133 |
107,412 |
| 1996/7 |
53,381 |
63,609 |
116,990 |
The major import commodities are foodstuffs, i.e. maize flour, rice, beans, sugar,
wheat/wheat flour, beer, cement and other general cargo. Principal export commodities are
raw cashewnuts, cassava roots, simsim and sisal.
The present underutilisation of the port is essentially due to low economic performance of
the hinterland of Mtwara coupled with poor access to that hinterland.
Future Expansion Programme:
The Mtwara Port Master Plan envisages expansion of the quay wall Westwards by 400 metres
and Eastwards by another 400 metres. This expansion in effect doubles the number of berths
from this current number to five berths. The total area reserved for or expansion is 200
acres. (See the attached Master Plan for Mtwara).
Besides the area of 200 acres reserved for port expansion, there is also an area of 60
acres which is reserved for port related development activities. This is an ideal location
for EPZ and distribution activities. However, depending on the demand for land for
development and commercial activities, the bulk of the 260 acres can be dedicated for this
purpose with little effect on port operations.
The Hinterland:
The immediate hinterland of the port are the Tanzania regions of Mtwara, Lindi and Ruvuma.
These are agriculturally rich areas famous for cashewnuts, coffee, tobacco and simsim
farming.
Beyond these regions and provided good inland transport network is put in place, the port
should also be able to cater for neighbouring countries of Malawi, Mozambique and Zambia.
The port could also be used as a transhipment port for cargoes originating and destined to
the Indian Ocean Islands of Mauritius, Seychelles, Comoro, Madagascar.
We are aware that currently four major outlets for Malawi’s sea-borne trade are
Nacala, Beira, Durban and Dar es Salaam. Distance-wise and in terms from lilongwe and
Blantyre they compare as follows:
| |
Port |
Mode |
Distance (Kms) |
Transit Time(Days) |
Total Cost per 2x20' (US$) |
| Lilongwe |
Nacala |
Rail |
1,007 |
3 |
1500 |
| Beira |
Rail/Road |
1,554 |
4 |
1800 |
| Durban |
Rail/Road |
3,020 |
8 |
2350 |
| DSM |
Rail/Road |
1,640 |
3 |
2905 |
| Blantyre |
Nacala |
Rail |
807 |
2 |
750 |
| Beira |
Rail/Road |
1,232 |
3 |
850 |
| Durban |
Rail/Road |
2,698 |
7 |
2550 |
| DSM |
Rail/Road |
2,000 |
4 |
3405 |
Major Projects:
5.1 The Government of Tanzania has already identified a number of projects which would
directly or indirectly increase the throughput of Mtwara port. Among them are the
following:
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The 500,000 MT of Ligaga Iron Ore Project with proven reserves of 102 billion metric
tonnes;
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The Mchuchuma Coal Project with estimated reserves of 268 million tonnes;
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Songosongo and Mnazi Bay Gas Projects’;
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Agriculture, Livestock, Fisheries and Forestry Projects;
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Mtwara-Mbamba Bay Road;
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Railway lines linking Mtwara port to iron and coal deposits of Liganga and Mchuma;
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Telecommunication Project.
Export Processing Zone:
(i) Definition:
The concept of an export Processing Zone (EPZ) or a Free Zone as it is something called is
a designated area at or near an airport or port where goods can be processed and
re-exported, or imported, stored and distributed free of all customs duties and taxes.
Such areas are usually clearly demarcated by some Baxter such as a fence.
EPZ and Fee Zones can also be found in inland locations but is not common. The whole idea
of locating them near seaport is to take advantage of low transport costs inland. At the
port or airport such costs are assumed to be nil.
(ii) Types of Free Zones:
There are various types of free Zones. The most common ones are:
(i) Industrial or Export Processing Zones. These are essentially geared towards
manufacturing or assembling of products for export.
(ii) Commercial Free Zone:
These mainly involve seconded of value adding activities such as:
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Storage of large quantities of finished goods or merchandise for distribution
(distribution centres)
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Re-packaging
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Sampling
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Labeling
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Sorting
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Minor processing
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Reporting
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Mixing
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Security printing
These have emerged many companies specialized in the latter category of functions. They
provide what are generally called logistics services.
(iii)Objectives of Free Zones:
The main objective of a free zone is to maximise operational efficiency, value added and
satisfy market demand in international trade at the minimum possible cost. this is made
possible because there is little or no customs and other bureaucratic administrative
interferences.
(iv) Benefits of Free Zone:
Free Zones benefits both the investors and the host country. Investors benefit from value
added and profit maximisation because they operate in an environment with few or no
bottlenecks. In the majority of cases, these ventures qualify for tax holidays from
government and guarantees of repatriation of profits and dividends, reduced or
preferential port charges.
The host country benefits in increased employment creation, foreign exchange earrings,
importation of modern technologies, modernisation of local transport and communication
infrastructure and skills development.
(v) Specific Advantages to Malawi Investors:
Malawi as a landlocked country and as such has no direct access to the sea transportation
is therefore one of the major costs for goods imported into and exported from Malawi. The
final consumer or exporter in Malawi would gain if some of the value added activities were
to take place in Mtwara. Tobacco processing could be done at Mtwara and exported overseas.
Malawi businessmen could stock consumer durable such as refrigerators, electronics
equipment etc. at Mtwara and distribute them from there to various consumers in Malawi.
Consumers would gain from cheaper rates arising from economies of scale.
Other Facilities:
Mtwara town has the basic environment for broader commercial activities. The town has:
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an airport with a runway capable to land Boeng 737 planes;
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an efficient telecommunications network;
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good banking services;
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potential power from the huge gas reserves of nearby Songosongo island.
Invitation
The Business Community will appreciate the vast economic and business potential of the
Mtwara Development Corridor which needs to be exploited for the benefit of the people of
Malawi and Tanzania.
The Government of the two countries have shown great commitment towards the realisation of
these benefits and has subsequently invited you to come to see for yourself.
In view of this, Government of Tanzania invites the Malawi business community to consider
investing in the port of Mtwara particularly in commercial activities in the Export
Processing Zone.
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Other Facilities:
Mtwara town has the basic environment for broader commercial activities. The town
has:
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an airport with a runway capable to land Boeng 737 planes.
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good banking services
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potential power from the huge gas reserves of nearby Songosongo island.
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Contact:
Port Manager Mtwara
Tel 255-59-333125
Telefax 255-59-333153
Telex 56076
e-mail: pmmtwara@tanzaniaports.com
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