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It is my great pleasure, as the Chairman of the new Board,
to present to you the first Tanzania Ports Authority (TPA)
Annual Report and Audited Financial Statements for the period of fourteen and a
half months i.e. from 15th April 2005 to 30th June 2006.
The current Board replaced the previous Board which served during the period.
Customarily, an annual report covers a period of twelve
months, beginning July up to June of the next year. The fourteen and a half
months period was necessitated by the need to accommodate the effective
operationalisation date for TPA.
TPA made a remarkable performance by handling a record
throughput of 8.3 million tons and recorded operating surplus of Tshs. 37, 963.3
million. TPA predecessor, the Tanzania Harbours Authority (THA), has never
registered this record level of performance. We are all proud of such milestone
that will lay a concrete foundation for a vigorous take–off.
THA was specified in 1997 and resulted into the privatization
of the Dar es Salaam Container Terminal in year 2000. TPA therefore, inherited
the "specified" status from THA at its institutionalization. As a specified
organization, TPA could not undertake new development projects with payback
period of more than two years. By the end of the reporting period, preparations
for privatizing the remaining business units were at an advanced stage. However,
in July 2006 the Government decided to "de-specify" TPA and putting on hold the
privatisation process through the Parastatal Sector Reform Commission (PSRC).
The Government’s decision
was prompted by the twin needs to empower the Authority to: improve the state of
infrastructure, equipment and capacity utilization so as to attract private
investors, and to improve the competitiveness of the ports. The scope of TPA
responsibilities were also broadened.
On 1st July, 2006 the Government transferred the
Management and ownership of all lake ports from Marine Services Company Limited
(MSC) to TPA. These ports are on lakes Victoria, Tanganyika and Nyasa. The ports
are in poor state in terms of facilities and equipment. Therefore, TPA faces the
challenge of raising sufficient investment funds for face lifting and their
modernization.
In view of the aforesaid changes, we had to streamline the
inherited structure and redefine the scope of services to incorporate the
additional role of managing, operating and developing.
The fast changes in technology in port and shipping industry
towards full containerization are obvious challenges to TPA. The Dar es Salaam
Container Terminal for example is experiencing unprecedented rapid growth in
container traffic beyond its installed capacity. This prompted the Government to
take short-term measures including expansion of the designated area for
container handling by re-allocating Berth No. 8 and its backup area, and Ubungo
Inland Container Depot (ICD) to Tanzania International Container Terminal
Services Ltd (TICTS). Development of a new container terminal is an
indispensable long-term goal for TPA.
Environmentally sustainable, safe and secure ports are among
our top priorities. TPA is taking measures to protect the environment and
strengthen ports preparedness in response for natural disasters such as
earthquakes, tsunami and hurricanes taking into account of what happened
recently on the coasts of Indonesia and America. Since 1st July 2004
TPA ports were among the world ports which became ISPS Code compliant, a
requirement to ensure strict adherence to the new maritime security regimes.
Construction of a new world-class port control tower to enhance maritime safety
for the port of Dar es Salaam and Tanzania coastal, in line with IMO
requirements is being implemented.
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Poor state and inadequate infrastructures of roads and
railways connecting the ports and the hinterlands, especially the landlocked
countries, continue to pose a big challenge to Tanzania ports. This has resulted
into diversion of not only transit traffic but also the captive local traffic to
competing ports. The Government ongoing efforts to rehabilitate and construct
some of the key roads, while restructuring the railways, are yet to turn round
the situation.
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I take this opportunity to thank my fellow Board members and
the entire management team, whose support I have greatly appreciated. It is my
conviction that we will continue working together to pursue a dynamic but
strategic framework for prosperity of the port industry in Tanzania.
Raphael O. S. Mollel
CHAIRMAN BOARD OF DIRECTORS
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