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:
 

Major Projects:

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:

• The 500,000 MT of Ligaga Iron Ore Project with proven reserves of 102 billion metric tonnes;
• The Mchuchuma Coal Project with estimated reserves of 268 million tonnes;
• Songosongo and Mnazi Bay Gas Projects’;
• Agriculture, Livestock, Fisheries and Forestry Projects;
• Mtwara-Mbamba Bay Road;
• Railway lines linking Mtwara port to iron and coal deposits of Liganga and Mchuma;
• Telecommunication Project.
  
  
  Export Processing Zone:
  
  
  (a) 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.
  
  (b) 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:

• Storage of large quantities of finished goods or merchandise for distribution (distribution centres)
• Re-packaging
• Sampling
• Labeling
• Sorting
• Minor processing
• Reporting
• Mixing
• 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:
• an airport with a runway capable to land Boeng 737 planes;
• an efficient telecommunications network;
• good banking services;
• 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.

Other Facilities:

Mtwara town has  the basic environment for broader commercial activities. The town has:

• an airport with a runway capable to land Boeng 737 planes.
• good banking services
• potential power  from the huge gas reserves of nearby Songosongo island.

Contact:

Port Manager Mtwara

Tel 255-59-333125

Telefax 255-59-333153

Telex 56076

e-mail: pmmtwara@tanzaniaports.com

        Head office:  P.O.Box 9184, Bandari road, Kurasini, Dar es Salaam, Tel: +255 (0) 22 2110401 Fax: +255 (0) 22 2113938 Email: prm@tanzaniaports.com

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