CHAIRMAN’S STATEMENT

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.

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.

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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